The country's tourism industry, which in early 1995 looked set for take-off after a long lull, has suffered as a result of the Tiger attacks at Kolonnawa and Orugodawatte and other suicide bombings.
The bombing of the Central Bank building and its massive human and physical toll will be a deadly blow for the industry. The pictures of destruction, just minutes away from several of Colombo's five-star hotels, have been aired on BBC and CNN in the homes of millions of people. The message that will undoubtedly remain is that Sri Lanka is a dangerous holiday destination.
This spells disaster for the tourism industry which is already feeling the pinch of a very bad winter season. Hotel capacity, especially on the southern coast, has expanded at a steady rate over the past decade but tourist arrivals have not increased apace. However, the increase in domestic tourism has kept the industry going for the past several years.
The liberal economic policies of the past two decades and the countless business opportunities that resulted have created much wealth in Sri Lanka. Most industries have taken advantage of this increase in wealth and provided better and more diverse services to the local market. Supermarkets have sprung up all around Colombo and other cities to make shopping more convenient for people. Clothing stores, nightclubs, restaurants, even automated car washes try to make money by offering the local market better service and more options.
It is baffling, therefore, that the tourism industry remains stuck in its old-fashioned, colonial mindframe and still focuses mainly on the foreign market. It is no secret that Sri Lanka's hospitality industry is more hospitable to foreign tourists (light skinned tourists, to be more specific) than locals. It is still common at hotels and in restaurants that foreigners are served more quickly and more courteously than Sri Lankans. Even at large hotels, Sri Lankans who are joined by foreign clients or friends experience a remarkable improvement in the standard of service after the arrival of the foreigners. Still more disturbing is that fact that there are establishments in Sri Lanka, some owned by the country's blue chip companies, that discriminate openly against Sri Lankans. At a hotel in Beruwela, some local tourists were turned away by the management which explained that the hotel was "for foreigners only". At another distinguished 'Club' in the hills, locals who are not members or guests of members are turned away; foreign passport holders who are not members or guests of members are welcome.
As much as such practices are shocking to those who respect human rights, they also should make bad economic sense to those who respect profits. Money is money, no matter who pays - black, brown, or white. The Sri Lankan who orders a beer at the pub is paying the same price as the foreign tourist sitting at the next table and therefore should receive the same service. The only difference is that the Sri Lankan, if he/she is happy with the place, might return many times and buy many more beers. And the foreign tourist will soon be on a flight back home.
Domestic tourists are a large and untapped market that has long been ignored by a tourism industry that continues to worship the white dollar. The industry currently turns its attention to the local market only when foreign tourist arrivals are low. If the industry is to survive, it has to recognise that domestic tourists are the more regular and long-term market and that they should be the backbone of the tourism sector. Foreign tourists, although they are a large source of foreign exchange earnings, are the volatile segment of the market: their decision to travel is based on the prevailing political climate. Domestic tourists are the most stable part of the market: they won't stay away because of bomb blasts, fires, or elections.
This year is undoubtedly going to be a tough period for the tourism sector, but it's high time the industry stopped whining about the drop in foreign tourism and started taking the domestic market more seriously.
Smuggled cigarettes from West-Asia are flooding the Sri Lankan market in a big way and losses could run into billions, Ceylon Tobacco Company Chairman Mick Fenn told at a news conference.
Mr. Fenn said that following the Budget last November, when the price of Gold Leaf went up by 7.5 percent, the second subsequent increase in a year, a drop in sales had been recorded and that sales failed to recover in December. "At this juncture, the market was flooded with smuggled products, mainly John Player Gold Leaf from the Middle East, as some traders speculated on the possibility of large profit gains if a price increase was announced.
"The arrival of this product, which is different from CTC's own to a considerable degree, coupled with the price hike, fuelled consumer confusion. It was at this point that some concern came to be expressed by consumers about CTC Gold Leaf", he said.
Mr. Fenn said if this situation continued, not only CTC, but also the government would be affected as it would be deprived of valuable revenue through excise duties.
"Not only does trade in these cigarettes deprive the government of about Rs. 720mn a year in lost tax revenue, but consumers also cannot be assured of the quality of these cigarettes, which will only tend to earn us a bad reputation", he said.
Mr. Fenn said that CTC's contribution through excise duties represents 10-12 percent of government's revenue."In 1994, CTC paid the government Rs. 10.9 billion. Last year alone we contributed 12.5 billion to government coffers", he said.
Mr. Fenn proposed that severe penalties be introduced through legislation to combact smuggling. He said at present, the penalty for smuggling was very lenient. "They simply fine the culprit Rs. 2000 and that's it. The cigarettes are also released". "What we advocate is that such contraband be seized and destroyed, without letting it enter the market", he said."If this situation continues, government will lose a billion Rupees in terms of revenue annually", he warned.
"We provide employment to 300,000 persons, directly or indirectrly. If there is going to be a shift in our sales, employment could also be affected", he added.
The CTC Eagle Insurance, the first company to re lease financial results for the year 1995, has achieved commendable results and announced the declaration of a 14.5% dividend to its shareholders. The dividend is being paid on the increased capital of Rs. 187.5 million and reflects a real growth in dividend income to the shareholders, being 21% above the distribution in the previous year.
Shareholders who subscribed to the initial public offering benefit from a dividend yield of 27.3% on their initial subscription.
Expressing satisfaction at the results in a difficult year, CTC Eagle Chairman Michael Fenn said that the Company was able to maintain its strong market position within the financial services sector, notwithstanding increased competition and an unsettled economic and business environment.
Figures just released show that the operating profit for 1995 of Rs. 67.8 million represents a 34.5% growth over the previous year. The General Insurance underwriting profit of Rs. 24.7 million is 10.4% above the previous year, which the Company describes as "a creditable performance". The long term business, in line with Company expectations, generated a transfer to profit and loss of Rs. 43.1 million, reflecting a significant growth over 1994 of 53.8%.
Shareholders' investment income of Rs. 37.6 million was slightly below that of the previous year with the low interest rates and equity investments being written down by Rs. 9 million on account of the fall in market value of investments. Profit before tax rose by Rs. 9.9 million to record a 13.4% growth. Profits after tax increased to Rs. 75 million benefiting from increased capital allowances.
"The 21.3% growth in profits after tax is a significant management achievement especially when viewed in the context of the comparative performance within the financial services sector," Mr. Fenn said. "It is a reflection of well thought out business strategies adopted by the management".
Long term insurance business also showed a strong performance with individual annualised new business recording a 44% growth to reach Rs. 355 million in 1995. Following an actuarial valuation the life fund has been assessed at Rs. 891.9 million, a growth of 51.2% including a contingency reserve of Rs. 22.6 million.
Referring to investment performance, a Company spokesman said that in the backdrop of a sharply falling share market coupled with low interest rates, CTC Eagle Fund Management acted with sufficient foresight to optimise returns by switching between asset classes and maturity periods. The funds under management at the year end was around Rs. 2.5 billion.
The spokesman said that CTC Eagle's General insurance business solvency was well in excess of both statutory requirements and the prudent levels recommended by the technical advisors. "The solvency of the life business has also exceeded the European Union minimum solvency requirement. Prudent reserves combined with easily realisable, secure investments exceeding reserves are a reflection of the financial stability and solvency of the Company," he added. This is a reassurance to both policyholders and shareholders.
Another achievement of CTC Eagle last year was reaching the goal of Rupees One Billion in premium turnover for the year which the management and staff committed themselves to, in the latter part of the third quarter of 1995. The spokesman further said that people productivity has been identified as a key to future profitability. Further training, enhancing knowledge and effectiveness, will be the key strategy for productivity improvement. The Company has also decided to further expand the level and scope of risk management services this year to support needs of corporate clients in risk minimisation, safety improvement and disaster recovery planning. These services will provide a value addition to clients and a competitive advantage to the Company.
The CTC Eagle also received recognition from several reputed organisations last year. The Company's Annual Report & Accounts was adjudged the winner of the Insurance Sector in the Best Corporate Report & Accounts competition run by the Institute of Chartered Accountants of Sri Lanka, and CTC Eagle was classified as one of Asia's best managed companies by 'Asiamoney', the prestigious publication of a subsidiary of Euromoney Plc, rating it high on business strategy and investor relations.
The Chartered Institute of Marketing UK recognised Eagle's in-house training for its continuous Professional Development Courses for sales personnel - the first time that such courses have been recognised by the Institute outside UK. A significant event during the year was the selection of a team of 24 members of the sales staff and the field force who had won in sales competitions in the previous year, to attend the internationally recognised Life Assurance Conference in Thailand titled 'Champion of Champions'. They benefited through enhancement of professionalism and motivation.
The CTC Egale lays great emphasis in human resource development and continues to commit resources to build an unmatched team of professionals and staff to face the challenges of the future. "With over 70% of the staff in the age group 20 - 30 years, this assumes great importance", the spokesman said .
By Asantha Sirimanne
A new company has claimed it is taking Sri Lanka on a path to digital economy which will help the country do business with the rest of the world despite war and other adverse publicity.
"We provide infrastructure for the digital economy", says Tony Weeresinghe, Head of Millenium Information Technologies (Pvt) Ltd. which was spun off as an independent company only last month.
Millenium IT offers Sun Micro Systems hardware and software from Teknekron Information Systems and Oracle Corp of USA. It also holds the agencies to HUIN Computer Systems (Singapore) and Neopost (Holland). "We are a business ally and partner of Oracle Corporation. We developed the application for the Central Depository System of the CSE using Oracle which was the first in the region using their newest technology called 'replication'. So we were made a Beta-site. That means any new Oracle product that is developed is sent to us for comments", he says.
"We are helping people to change over to the digital economy based on the Internet". Taking banks as an example, Mr. Weeresinghe says they now own and operate their own separate networks, adding to transaction costs. "If people used a public domain such as the Internet to do transactions, costs come down sharply".
The Internet Commerce Group (ICG) of Sun Micro for example has developed a sophisticated technology to protect confidential information from being accessed by third parties called SunScreen, though its use outside the US is restricted for some applications by US export laws. Such methods are expected to promote the use of public networks for commercial purposes. The origins of Millenium IT lay in the Opens Systems Division of Computerland, formed in 1992 which dealt in Sun Microsystems products, a US $6bn Fortune 500 company that is only 13 years old.
"Sun wanted a focused approach. So Computerland floated a division called Open Systems which marketed Sun", Mr. Weeresinghe explains. Last year the Open Systems Division was given the task of setting up the automated screen based trading system at the Colombo Stock Exchange. The company has also been awarded a contract to set up a CDS at the Mauritius Stock Exchange. "We were winning many local and overseas projects, and wanted more capital injected to service these projects. So Computerland told us that we could either find new people to invest, if not Computerland was also willing to sell out completely", Mr. Weeresinghe explained.
The management of the company together with some venture capitalists had bought out the Division and set up Millenium IT. "Everybody has a stake in the company even my driver has shares", he says. The company hopes to gain a listing in the CSE in a few years. The company expects a turnover of Rs. 200mn this year.
"Our goal is to be a one-billion rupee company before the turn of the next century. Already we have tied up with Teknekron. Depending on the success of the CSE project they intend to subcontract a part of their worldwide software projects to us. They are a US 200mn company. They are guaranteeing 10 percent of their turnover, that is US$ 20mn. That's almost too much for us. I don't mind admitting it". Mr. Weeresinghe says Millenium IT intends to be active outside Sri Lanka.
Sun Microsystems, Millenium IT's flagship brand offers 64 bit servers compared to the 32 bit servers available from other systems vendors. Mr. Weeresinghe says only Digital Technologies currently offers 64 bit servers. Sun is heavily involved in the Internet. Even Lanka Internet has Sun hardware, Mr. Weeresinghe says. More than 40,000 out of 100,000 Websites around the world already use Sun hardware. In addition, some of the most widely used software such as the browser Netscape Navigator is developed with Sun Micro's Java language.
"Even IBM and Microsoft has licensed Java products because they are frightened of being kept out", he claims."We are now coming out with an "applet" basically a plug to the Internet. It might cost around Rs. 75,000 in Sri Lanka. The way the world is moving you don't need to own anything except your own computer"."I firmly believe that Sri Lanka going to the next millenium has to embrace this technology. If you look at it, how can Sri Lanka be different today to attract foreign investors? We have a war. How do we market our products? We can offer our services on the Internet. We can trade tea via the Internet, a cyber tea auction.
"In the US, surveys have shown that even retail stores who came in and advertised on the Internet have doubled turnover in a few months". Take Sri Lanka for example. We have beautiful beaches, beautiful hotels. People have heard that Sri Lanka is a paradise. But to get information they have to go to a travel agent, tourist bureau or embassy. But if there was a package offered by, say Aitken Spence, for so many hundred dollars a week which you can buy simply by clicking on the screen imagine how easy it would be.
Mr. Weeresinghe says the CSE for example would have facilities to enable foreign brokers to feed orders via local brokers directly to the CSE without any manual intervention. If the CSE decides it can also make available instant feedback based of the write and publish concept to any international investor. The CSE was upgraded to the second level of exchanges around the world after the installation of CDS. I am sure they will be upgraded to the first level after outscreen based system comes on line. It will be the first exchange to move into opens systems.
"If we embrace the technology now, we can have an edge over the others. India and Singapore, for example, have already invested in huge mainframes or 'legacy' systems. They have to get rid of these proprietory systems and bring in the new opens systems. "Its difficult because a majority of Western multinationals give a cheaper price and dump technology that can't be sold in the West here. What's wrong with being a leader? If we say we have to wait and see how it's going, we cannot go forward. We have to be different", he concluded.
By Asantha Sirimanne
Though a combination of subsidies, favourable weather and relatively stable exchange rates helped keep down inflation last year, 1996 would see double digit inflation, economists have predicted.
"You could see inflation picking up from 4.8 per cent in August 1995 with the removal of the wheat subsidy," says Sumedha de Silva an economist at Crosby Research. The wheat subsidy also depressed the prices of rice. In addition favourable weather resulted in a bumper harvest. However the Maha crop has already been affected by dry weather. Lower agricultural production generally may also drive prices of agricultural goods up.
The expected rise in bus fares, increased telecom and electricity charges would also push up inflation. "While electricity has only a small weighting on the consumer prices index, it would have a bigger impact by increasing cost of production," points out Econsult Chief Dr. Howard Nicholas. The possibility of a drought leading to more thermal power generation costs being passed on to the consumer may push prices up further. "On the basis of announced administered price hikes, and depressed output growth especially in agriculture, inflation looks set to grow well above 10 per cent," he says.
In December annual average inflation measured by the Colombo Consumers' Price Index (CCPI) was 7.7 per cent. In January 1996 the figure had moved up to 8.4 per cent. Even in 1994 the point to point change of the CCPI was 11.5 per cent. "The point to point change is the change in the CCPI between a particular month of an year and the corresponding month in the preceding year. The problem here is that it may fluctuate widely from month to month due to seasonal factors," explains DFCC economist, Dr. Harsha de Silva. The seasonality is smoothed out by looking at the annual average change." The annual average is calculated by comparing the average increase of the CCPI in a 12 month period with the average increase during the preceding 12 months.
While official forecasts of 1996 inflation hover around 9 per cent private sector analysts put the figure at 11 or 12 per cent. Government deficit spending including expenditure on the war could also increase demand pressures. However economists point out that arms purchases for example would not add to domestic demand pressures. In addition higher import prices due to the weakening of the rupee would push prices up. Though the rupee started to weaken against the dollar only after mid 1995 its full effects would be felt this year. Analysts do not expect a significant drop in the value of the rupee until the end of the year. However any weakening is expected to benefit the export industries.
On the plus side however there are signs of declining world inflation. "Primary commodities, mainly metal seems to be coming down," observes Dr. Nicholas. In addition oil prices which touched US $20 per barrel is also down to less than US $18 with hopes of Iraq coming to the market. Declining world prices would help reduce the effect of a weakening rupee.
Analysts say there is a greater need to follow growth policies as there is a possibility of the economy moving into a period of stagflation, characterized by a low growth amidst a high inflation scenario. In this context however analysts welcome the recent stance of the Central Bank where it had refrained from excessively draining liquidity from the system and causing interest rates to go up.
CTC Eagle Insurance Company has increased the sharecapital of it's fully owned subsidiary, CTC Eagle Fund Management Company Limited, from a nominal Rs. 1,000/- to Rs. 10 million. The new shares will be taken in their entirety by the parent company.
This is a prelude to CTC Eagle Fund Management launching active marketing of fund management services on a commercial scale. Hitherto, the company has been on managing insurance funds of its parent company and other related funds which at present exceed Rs. 2.5 billion. From April this year, it will begin to target new funds belonging to the corporate sector as well as high nett worth individuals.
The primary strengths of CTC Eagle Fund Management lie with its human resources and systems. It has a staff of 18 of whom 7 are fully qualified professionals, the company says. CTC Eagle Fund Management will soon shift to its new premises at Union Place, Colombo 2.
A new, technology in software development called 'Guidelines' has been introduced to EDS Development. EDS Development (Pvt) Ltd., is switched on to a new technology in software development, an EDS news release says.
According to an EDS spokesman professional, graphical, true client-server mixed platform business applications, could be created using Guidelines.
Guidelines provides users with easy access to the many powerful features and functions contained within the product, as the development of Graphical User Interfaces with Guidelines, is quick and straight forward.
For instance, a trader selling car spare parts would be able to provide his customers with a graphic presentation of an available car part along with all other relevant details at the mere press of a button.
Thirty three exporters sponsored by the Export Development Board will participate in four international fairs in Japan during the first four months of 1996, an EDB statement said.
International Jewellery Tokyo, the most important event in the gem and jewellery industry in Japan will be held in February and the EDB sponsors the participation of 10 exporters for the fourth time this year. The participation at IJT had helped exporters not only to get direct orders but to establish personal contacts with buyers. A buyer who was interested in the product range of one exporter in 1994 has organised a special Sri Lankan show to take place in-between IJT shows to display his product range, an EDB statement said.
Six exporters including three from the small and medium sector are expected to participate for the second time in the Tokyo International Gift Fair in February. Small and medium exporters participating for the first time in EDB sponsored trade fairs are provided with special financial assistance in respect of air fare and living expenses. The products displayed will be Christmas decorations, silks, linen, jute, ski bags, furniture, wooden items and other gift items, the EDB statement said.
The third event will be the Tokyo Flower and Garden Show in March where 10 exporters will participate. Exports of Sri Lankan floricultural products to Japan have increased by 49.9% during 1990-1994. This mission would include one or two suppliers of coconut products such as coir poles and briquettes, baskets etc., which are required in the floricultural industry, and a supplier of pottery products. Three exporters from the small and medium sector will be included. The trade fair participation is an outcome of a planned programme of market identification, product promotion and other activities carried out together with an expert provided by the Japan External Trade Organisation (JETRO), EDB said.
Seven exporters will participate in the Osaka International Trade Fair in April which include two exporters from the SME sector. Wooden furniture, household utensils, soft toys, fibre products, embroidery, linen, fruits and furit juices and tea in gift packs are some of the items that will be displayed. EDB says the growing Japanese market has been identified as a potential market and an alternative for the competitive USA and European markets. As a direct result of the programme carried out with JETRO the exports of textiles and garments to Japan have increased from Rs. 7 million in 1985 to Rs. 535 million in 1994. Handloom exports too have increased from Rs. 2.4 million in 1992 to Rs. 10.5 million in 1994.
As a result of a three member Japanese inward buying mission in 1995, a sample order of one container load of dessicated coconut will be sent to Japan shortly. The visiting team showed much interest in coir fibre products specially in tawashi brushes which have a good market in Japan and the exports are expected to increase in this area.
Despite high statutory reserve requirements and requests by the Central Bank to slow lending to arrest money supply, expansion loan growth in the four listed banks had ranged between 15 to 40 per cent in 1995, a leading equities research house has said.
However loan growth among listed commercial banks would be subtantially lower in 1996, a research report of Crosby Lanka Ltd., predicted. "Banks say most corporates are already at their overdraft limits. This curtails growth and may lead to more bad debts due to falling corporate profits", the report said. Rising competition from new banks and the possibility of the Central Bank approving more new foreign banks may also stifle loan growth. Loan growth was further affected by corporate self raising funds via commercial paper, especially when T-Bill rates fell substantially below prime lending rates.
In 1995, growth was led by loans to the trading sector, Crosby Lanka said. "Also anticipating rupee devluations throughout 1995, exporters parked their US dollar earnings overseas and borrowed more locally. Third the economic downturn hurt most corporate sales and thus liquidity, leading to more borrowing," the report added.
Interest spreads are also likely to be queezed in 1996 by rising deposit rates. Though several banks had been able to lower deposit costs by using novel marketing themes, the strategy may not prove as successful in 1996 because depositors become increasingly wary of such themes, the report said.
Colombo Gas Company Limited, has changed its name to Shell Gas Lanka Limited. Royal Dutch/Shell Group of Companies acquired 51% of the shares of Colombo Gas Company, the first privatisation of a public utility.
A company official said, "The change in name will gradually be reflected on all the company's activities and we request the public and the trade to use the new name in all transactions and correspondence with the company".
Banker Bernard Sinniah head of treasury marketing at the Sydney Citibank is to conduct a seminar for corporate and bank treasury managers next Saturday. The seminar is organized by Financial Skills (Pvt) Ltd. Mr. Sinniah who directs Citibank treasury operations in Australia and New Zealand specializes in financial derivatives.
AirLanka has been commissioned to carry out it's first ever 'C' check for an outside operator. The 'C' check will be carried out on a Boeing 732-200 aircraft belonging to Sahara India Airlines.
An aircraft is subject to a 'C' check after every 3000 flight hours and involves a detailed inspection of the structure of the aircraft, engines and flight control, as well as inspection of various systems such as hydraulic, electrical and airconditioning systems.
The work also involves a complete overhaul of the aircraft, including servicing, repainting and upholstery. The operation, which is expected to be accomplished within 10 days will earn AirLanka nearly Rs. 10 million. The issue of a certificate after check enables the aircraft to fly until next year.
Sahara India Airlines, Engineering Co-ordination Manager, J. S. Rana said, "AirLanka's rates for the check is very competitive as compared with other countries", he said.
AirLanka Executive Director, H. Rajapaksa said this was the first occasion AirLanka has been commissioned to carry out a 'C' check for an outside operator, although in the past AirLanka had often undertaken light maintenance work for such operators.
Captain Rajapaksa added that with the successful completion of the check, AirLanka hopes to attract more aircraft, especially as it is known that the Asia-Pacific region has the greatest potential for the growth of the Aviation industry.
Clipsal, pioneers in electrical accessories has introduced a new concept in electrical switches and sockets.
The Gainsborough range is available in a number of metal plate finishes with stainless steel, brass, silver, gold plated, antique copper, antique silver and black. These metallic finishes are a new concept in Sri Lanka creating a distinctively different style - and added dimension to the fittings and decor of any interior. The designer collection is a departure from the traditional white switches and sockets.
The coloured range of pleasing pastel shades will be a welcome change for homeowners and builders who prefer colours which will blend right in with the walls and decor of their homes. Clipsal products which enjoy a worldwide reputation for durability, variety and safety are available with an extensive, committed and reliable network of dealers and stockists throughout Sri Lanka.
Lanka Fabrics Ltd., a Government owned company under the Ministry of Industrial Development dealing exclusively with handloom products has become a profit making company. The company as said in a media release has shown an operating profit of Rs. 530,369 and a total profit after taxation of Rs. 1,291,731 during the financial year 94/95. Although the organisation has been making profits in previous years from other income sources, this is the first time the company has made a profit on trading recovering from a loss of around Rs. 500,000 in the previous years.
Lanka Fabrics Ltd., had been established under the then Ministry of Textile Industries to cater exclusively to the handloom sector. The company obtains their yarn requirements from Kabool Lanka Ltd. However, finer counts are imported mainly from India.
A Sharp increase in the export of value added teas from Sri Lanka was seen last year.
Sri Lanka had exported a total of 240.79mn kilograms of tea last year of which 5.05mn kilograms were imported tea re-exported. Value added teas had comprised 443 per cent of all pure Ceylon Tea shipped last year compared to only 32 per cent in 1994. In 1994 total tea exports (including re-exports) were 229.5mn kilograms of which 152.1mn was in bulk form. However, in 1995 despite total exports climbing to 240.7mn kilograms the bulk tea component had fallen to 132.1mn kilograms. Exports of tea in packets had risen to 93.8mn kilograms from 64.3mn kilograms, while tea in bags had risen to 7.5mn kilograms from 6.8mn kilograms a year before.
"We feel that the customs figures do not reflect the true picture of the quantity of tea shipped in value added form," a leading tea broker, Forbes & Walker commented, "It has emerged that certain categories of value added exports, primarily in the packet tea and small package tea categories have been broadly described as bulk shipments due to generalization of specifications." Forbes & Walker said the Colombo Tea Traders Association is working with relevant authorities to rectify the anomaly.
The largest importer of tea in packets had been the CIS accounting for 37.5mn kilograms, followed by Jordan at 12.6mn kilograms. Australia was the prime destination for tea bags at 1.2mn kilograms followed by CIS with 0.95 kilograms. The CIS had imported the largest amount of Sri Lanka tea in 1995 at 40.37mn kilograms.
Akbar Brothers Group was the largest exporter of Ceylon Tea in volume terms (25.8mn kilograms) while the Unilever Group was the largest exporter in rupee terms (Rs. 2,854mn).
By Business Bug
Tourism is suffering many blows these days in the aftermath of the Fort blast. Hotels are reporting poor occupancy and tour operators are announcing cancellations. Now comes the news that several overseas fund managers in the Colombo market have advised buying stocks in the local hospitality trade. Five primary share issues, due in the Colombo market later this year will be on offer as scheduled, market sources say. This is despite reservations expressed privately by some of these companies that this may not be the best of times to launch a primary issue. Others however say that an attractive primary issue may be the best antidote to a sagging market....
A Colombo blue chip planning to build a new headquarters in the city is having second thoughts about the location. The proposed site is at a prime location but its proximity to vital institutions makes it vulnerable, some corporate executives feel. A final decision will be taken by the boss, we hear. After all, to be once bitten, twice shy is only natural.
While some listed corporates are struggling to make ends meet, Singer Sri Lanka has boosted after tax profits to Rs. 166.7mn compared to only Rs. 126. 3mn the year before. Turnover has increased to Rs. 2.509mn for the 12 months ended 31st December from Rs. 2.112mn in 1994. The company itself made a profit of Rs. 237mn before tax while associate companies contributed a further Rs. 17.8mn. Taxation increased only marginally to Rs. 88.3mn from Rs. 86mn the year before. Singer Sri Lanka has an issued capital of Rs. 156.5mn and shareholders' funds of Rs. 587.2mn.
Asian Hotels Corporation, the parent company of Crescat Developments Hotel Services and Trans Asia Hotels has posted consolidated after tax profit of Rs. 25.91mn for the nine months ended 31st December 1995. Though there was a loss of Rs. 16.84mn on hotel operations other income of Rs. 30.61mn prevented the group going into the red. The company has an issued capital of Rs. 1.401mn and shareholders' funds totalling Rs. 2.835mn.
Acme Printing and Packaging Ltd., has posted an after tax loss of Rs. 19.286mn compared with an after tax profit of Rs. 6.5mn for the same period last year. Turnover fell to Rs. 144mn from Rs. 188mn the year before. Trading losses stood at Rs. 21.4mn but other income of Rs. 2.1mn helped reduce the net loss. The company has an issued capital of Rs. 44.72mn and shareholders' funds of Rs. 104mn.
Vanik Inc., has boosted consolidated turnover to Rs. 785mn in 1995 from only Rs. 475mn the year before but consolidated profit after tax dropped to Rs. 111.7mn compared to Rs. 149.5mn the year before. However this was arrived at after providing for reductions in share values amounting to Rs. 18.2mn. The company has shareholders' funds of Rs. 1,026mn and issued capital of Rs. 425mn.
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