Shipping & Aviation

New Internet Service launched

Launched by two Sri Lankan friends two years ago, Systec International has come a long way since its inception by creating a niche market in the small and medium information technology (IT) industry."We started small but the company has expanded fast," said Manoj Jayamaha, one of the two directors to set up the company, which is centrally located at Kirulapone and able to attract a wide range of clients.

Systec's principal business is providing Internet services. It employs 10 full time technicians and support staff. Two years ago, the Internet Service Provider (ISP) business was in its infancy but "we saw an opportunity here and got involved," said Jayamaha.

Together with his partner, Susil Rajapakse, the other director in the company, Systec tapped the segment of business, professionals and students offering them a range of Internet and e-mail services. "We have a range of clients including about 400 students," said Rajapakse. While the giant companies in the business rely on degree and diploma holders, Systec's technical staff includes a school leaver and other non-degree but talented technicians. "There are many talented people who haven't got formal qualifications," he said. The company is also branching out into the outstations where it believes there is a growing market amongst teachers, doctors and other professionals. It has run several Internet awareness programmes in Badulla and Kandy. "More and more people are having access to computers and PCs are springing up in homes overnight not only amongst the affluent classes but also amongst the middle-income groups," said Rajapakse. The company now has 200 outstation clients and hopes to expand this market.

With telephone networks widening in reach and depth, Systec International is looking at an era where consumers will settle their water, electricity, telephone and other utility bills through the Internet.

"That is a market we would like to tap. Other plans for the future is to consolidate our current business," said Jayamaha.

A lift off for infrastructure development by Canada's EDC

Canadian companies competing for projects in the infrastructure sector in Sri Lanka will benefit from a new US$25 million financing facility arranged by Canada's Export Development Corporation (EDC) with the Private Sector Infrastructure Development Company Limited (PSIDC). The agreement was signed on behalf of EDC last week by June Domokos, EDC Vice President, International Markets who was part of a visiting Canadian delegation, a news release says.

The delegation visited Sri Lanka from October 25th-29th and were impressed with the efficiency and pro-active approach of the Sri Lanka government, public sector officials and the private sector businessmen. In a series of meetings with key officials, the visiting delegation learnt how easy it is for Canadians to channel their investments, professional services and technology towards infrastructure projects in Sri Lanka.

Toronto based Canada-Sri Lanka Business Council (CSLBC) is the official sponsor of the Canadian delegation to Sri Lanka and worked very closely with the Sri Lanka High Commission in Canada and the Sri Lanka government in arranging a dynamic programme.

Led by Scotiabank's Senior Vice President and President of the CSLBC, Tim Plumptre, the Canadian delegation made numerous business contacts during their visit to Sri Lanka. Mr. Plumptre said that he was pleased with the progress made on this visit and will focus on certain projects that were identified as potentially viable.

He was impressed with the networking opportunities provided to the group by the Sri Lanka-Canada Business Council and thanked its president, Mr. Yusuf Nanji for assisting with the planning of their itinerary. Mr. Plumptre added that, "we are pleased to visit Sri Lanka and see immense opportunity to increase revenue from trade. Canada's No.4 bank, the Scotiabank has opened a branch in Sri Lanka thus making it the first Canadian bank to enter Sri Lanka.

I see the bank playing a major role in the country's financial future.

We go back with pleasant memories of the hospitality extended to us and look forward to doing more business with Sri Lanka in the new millennium".

During their 5-day visit, the visiting delegation met with Foreign Affairs Minister Lakshman Kadirgamar, Industrial Development Minister C.V. Gooneratne and Internal and International Commerce and Food Minister Kingsley T. Wickremaratne. The delegation also met Board of Investment of Sri Lanka Chairman/Director General, Thilan Wijesinghe and President, National Chamber of Commerce Hari Selvanathan.

The President of the CSLBC invited their counterpart organization, the Sri Lanka-Canada Business Council (SLCBC) to Canada next year.

A joint meeting of the two Councils held at the Colombo Hilton on October 26 attracted several key private sector Sri Lankan businessmen who showed interest in joint venture project opportunities with their Canadian counterparts. President of the Canada-Sri Lanka Business Council,

Tim Plumptre summed up the 5-day visit to Sri Lanka as "a very successful visit that started off as a fact finding mission".

Commercial Bank launches "Pahan" personal loan scheme

The Commercial Bank of Ceylon Limited has launched its first Personal Loan scheme offering competitive interest rates and convenient repayment facilities to borrowers.

The new loan scheme branded "Pahan" could be used to buy a vehicle, home appliances, meet the cost of travel overseas, education or an important social function. Commercial Bank is also the only Bank to offer such a loan for setting up a professional practice, a bank release said.

The size of loans under Pahan scheme could go upto Rs. 750,000/-, with repayment spread over two to four years.

The amounts that can be obtained are determined by the actual requirement and the applicant's monthly income, the spokesman said. To be eligible for a loan an applicant should be a Commercial Bank Account Holder with a regular income adequate to service the loan.

While rates of interest would be very competitive, special low interest rates are offered to customers who have already obtained secured facilities such as the Nivahana Housing Loans from the Bank, he added.

The spokesman added that the ComNet facility where an account can be accessed through any one of the 66 Commercial Bank branches, would make it easy for a borrower to pay back from any branch across the island.

LBR presents CEO's forum

Lanka Business Report, the television business programme aired on ETV and ITN is launching the first of its non-TV resource events.

The first LBR CEO forum will be held at 6.30 p.m. on November 10 at World Trade Centre.

The CEO forum has been created to provide a platform for senior business executives to discuss contemporary issues and provide a forward-looking insight that will contribute towards the development of our management culture and practice.

It will leverage on the knowledge and experience of key business leaders and managers. The forum will take the form of a quarterly evening meeting consisting of senior business executives, policymakers and academics.

The Chief Executive of a leading corporate will be invited to deliver the keynote address, which will be followed by a question and answer session. The CEO of Hatton National Bank, Mr. Rienzie Wijetilleke, will be the speaker of the inaugural forum. He will speak on "Change: Its role in Corporate Strategy".

Mr. Wijetilleke has helped steer the Hatton National Bank through its key growth period during the post liberalization period, which saw private banks steadily eating into the market share previously held by state banks. Hatton National is now the largest private commercial bank in the country in terms of assets.

Corporate strategy formulation is the process of managing change, anticipating future changes in the operating environment and devising mechanisms for coping with them.

Organizations that anticipate and manage change; enjoy definite competitive advantages and eventually emerge stronger. The forum will address the issues of societal changes and changes in the marketplace, responding to changes in the external environment, managing internal changes to cope with external changes and anticipating changes and incorporating it in organizational corporate strategy.

Seminar

Strategic Information Systems for Competitive Positioning

The IT Centre of The Chartered Institute of Management Accountants has organised a seminar on "Strategic Information Systems For Competitive Positioning", by Prof. Roland Kaye. Dean of the School of Management, and the Royal Insurance Professor of Information Management at the Open University Business School, Milton Keynes, UK, Chairman of CIMA Development Group, a member of the Education and Training Committee, and member of Council for the CIMA.

The seminar is targeted for CEOs, Directors, IT/Finance Directors, and Managers. The registrations limited on a first come, first served basis.

The objective of the seminar is to equip delegates with the necessary tools to review the effectiveness of their Information Systems in supporting and driving the strategic objectives of the firm.

This seminar will be held on Friday the 12 November 1999, at Hilton Jaic Tower-Union Ball Room at 9.00 a.m. to 5.00 p.m.

This seminar is sponsored by ZILLONe Systems Solutions, formerly known as Eskaycee Computers Ltd.

Reuter news at Majestic City and Liberty Plaza

Reuters recently launched their latest product - Reuters Panorama at the Liberty Plaza and Majestic City Shopping Malls.

Reuters Panorama provides updated coverage on world news, financial information and sports on large 43" screens in the lobbies of the two malls. Visitors to these malls will now be able to catch up on the very latest news, whilst doing their shopping, a news release said.

Reuters Panorama is already installed in the Deli Market Restaurant at the World Trade Centre and has proved very popular with the patrons.

An added feature of the Reuters Panorama is the ability to carry advertisements which has given the market a new medium of advertising. Advertising rates are extremely attractive - a 30 second video clip costing just Rs. 25/-.

Pet and Pussy in the market

The Industrial Technology Institute (ITI) successor to the Ceylon Institute of Scientific and Industrial Research (CISIR) recently provided the process technology for 'Pet Bites' and 'Pussy Bites' to Heliconia (Pvt) Ltd of Bentota. Heliconia now manufactures and markets the brands 'Pet' and 'Pussy' as favourable alternatives with respect to price and quality to the wide range of imported Pet food available in the market. 'Pet' and 'Pussy' have been marketed since June this year through about 25 retailers and the products are now available at Supermarkets in Colombo as well as at outlets in Kalutara, Panadura, Aluthgama, Bentota and Hikkaduwa, a company release said.

The imported Pet food however still has advantages over the local brands as the imported products are marketed in a range of flavours such as chicken, fish, meat and liver. Heliconia have now been able to develop 'Pet' and 'Pussy' in chicken and fish flavours and are also in the process of developing formulae to suit different age groups of animals.

The 'Pet bites' which are specifically for dogs have been developed in accordance with the recommended dietary levels of nutrients for dogs as specified by the National Research Council (NRC) of the National Academy of Science of the USA.

Anti-Cholesterol drug launched

Ranbaxy Laboratories Limited of India recently launched an anti- cholesterol drug called SIMVOR (Simvastatin) in Colombo. The launch was attended by eminent Cardiologists and Physicians which was chaired by Dr.P.N. Thendbadu, Consultant Cardiologist and Head of Cardiology at National Cardiology Institute, Colombo, a news release soid.

A press conference was held subsequent to the launch meeting with the Ranbaxy Laboratories Regional Director, Mr.Sanjiv Kaul and Country Manager for Sri Lanka Mr. Kapila Dayaratne. Mr. Kaul stated that Ranbaxy has become the first Indian Company to launch generic products under its own name and label in the USA. Mr. Kaul further stated that RANBAXY is India's largest pharmaceutical company, which is driven by a mission to "become a research based international pharmaceutical company". RANBAXY now exports pharmaceutical substances and dosage forms to over 50 countries and accounts for 15% of the industry's exports in India.

Safety and Environmental awards 1999

Unilever Ceylon Limited held its Safety and Environmental awards for the first and second quarters of 1999 for its Grandpass Factory site recently. The chief guest at this programme was Mr. W. P. Gunapala, Deputy Commissioner of Labour ( Workers Education), who enlightened the audience with some valuable information.

The Department which maintains the best good housekeeping practices is selected at a quarterly assessment and the winner for the Ist quarter 1999 was the General Stores. The winner of the 2nd quarter 1999 was the Glycerine Department.

Ten winners of the ' Spot the Hazard Competition' and the winners of the Poster competition conducted by the Company also received their awards at this event.

The Technical Director Dr. Sarath Abayawardana addressed the audience.

Waycoir launches superior cricket matting

Waycoir (Pvt) Ltd, the Company which produces value added products out of coir fibre for export to International markets, has now launched a very high quality cricket matting which is much superior and lasts eight times longer than traditional hand-woven cricket matting that is currently available in the market, a company release said.

Waycoir cricket mattings are manufactured on fully automated German power looms where a product of consistently high quality is guaranteed. These cricket mattings are produced in three standard sizes : 3M x 20M (Match matting), 3M x 10M (Practice matting) and 2M x 6M (Private pitch matting).

The Waycoir "private pitch" matting (2M x 6M) is very popular amongst schoolboy cricketers as it is ideal for budding young cricketers to practice professionally in their own home garden. The private pitch matting is very reasonably priced and well within the reach of parents who always want to see their children achieve greater heights in cricket.

Keells MD retires

Chula de Silva - Managing Director of Keells Food Products Limited and Jaykay Marketing Services (Pvt) Limited, retires from the Keells Group after 15 years service.

Having joined the group in the capacity of Production Manager of Keells Food Products in 1984, progressed to become the Managing Director of Keells Food Products and Jaykay Marketing Services which operates the popular Supermarket Chain "Keells Super". He has also served as Director in a number of other companies in the group.

Gateway in Bangladesh

Gateway Kids School of Computing will open its first overseas branch in Dhaka, Bangladesh, next month. This was disclosed at Gateway's annual Awards Ceremony held at the BMICH last week.

Seven hundred of the 2600 kids learning Information and Communication Technology at Gateway who achieved the learning targets, received their Level certificates and the certificates of Competence from Britain. The Chief Guest of the function Mr. Thilan Wijesinghe, the Chairman of the Board of Investment, Sri Lanka, mentioned that Gateway has made a substantial contribution in the educational sector in our country. He said that the rapid growth recorded by Gateway signifies the trust the school has achieved from the parents. The Guest of Honour, Dr. Ruvan Weerasinghe, Acting Chairman of CINTEC, was of the view that Gateway has made an excellent choice in aligning their programme with the British National Curriculum and its key stages concept based on competency rather than competition. Mr. Alles, Director, in his prize day report mentioned that Gateway, has one teacher for 2 students. At Gateway International School where class numbers are limited to 20 there is a computer teacher for every 5 kids. He believes that they are one of the very few training schools in the world that offer such individual attention. He believes that though this is not the best arrangement from a financial point of view, that in the long run, it pays rich dividends in every sense of the word. He mentioned that the fact that Poornima Weerasekara received a B for her London A/L Computer Science at the age of 13+ was the best example of their achievements. Once you have mastered the basic keyboard skills, the main sense involved in computer work for children is vision. 72% of long term memory retention consists of data acquired through vision and 14% is acquired through hearing. This makes computers ideal tools for use in the learning process. Mr. Alles believes that children should not be compelled to share this useful tool. He said he is happy to inform that every child at Gateway is provided with a single computer and that they are not made to share this tool. He congratulated his teachers for the production of 10 books in Information Technology for various levels in the curriculum. He said that they are probably the only ones available for kids in Sri Lanka and that he is confident that the quality of the teaching material they have produced is second to none. He is of the view that books are also the best way of providing the theoretical knowledge in computing and to teach programming to kids. Gateway considers teacher training a high priority. Recently, a 3 day teacher training workshop was carried out by an expert in Britain on Computer control. Some of their teachers have had foreign training and more will be sent in the future. Mr. Alles was disturbed to note that the Sri Lankan public view the computer training institutions with suspicion. He said that mushrooming institutions with insufficient facilities, false promises of scholarships, courses with low quality etc. are today ruining the entire training industry. He appealed to the authorities to look into this alarming situation and take action before it is too late. He said that most people believe that computer training is a money spinner. On the contrary, it is an industry where investments never cease because the technology upgrading has to be carried out continuously. As an educationist, he is conscious of the fact that the children need to be taught today's technology and not yesterdays. Gateway currently has 6 branches: 4 in Colombo, and a centre each in Kandy and Negombo.

Specialist marketing from Synergy

The Chartered Institute of Marketing (CIM) (UK) Certificate, Advanced Certificate and Post Graduate Diploma was launched recently.

According to a spokesperson from Synergy the school offers several special and unique benefits which clearly differentiate it from others, a news relwase said. For instance, it is a specialist marketing education school. The focus is on ' learning' rather than on 'teaching'. The use of modern participant and interactive processes, supported by innovative multi media presentation techniques, would generate synergy at class sessions, thereby resulting in a lively and interesting learning experience. A comfortable and air-conditioned environment is provided to aid the learning process.

The school was set up by four experienced marketing professionals cum lecturers, namely Mr.David Selvaratnam, Mr. Mohamed Adamaly, Mr. Ravichandran Banuthevan and Mr. Michael Ranasinghe, who are all diploma holders of CIM (UK) in addition to being qualified in other disciplines as well.

The Synergy School of Marketing offers CIM UK Certificate, Advanced Certificate and Post Graduate Diploma courses. In addition, they will provide customized programmes in a variety of marketing aspects ranging from training in professional selling skills, sales management, Finance and IT for marketers, legal aspects of marketing, business basics, service marketing and customer care, to name a few.

Attache software system launched

More than 120 people at the Ceylon Intercontinental Hotel witnessed the launch of Attache Business Partner accounting software in Sri Lanka today.

Informatics International (Pvt) Ltd., part of the Informatics group and currently the sole distributor of Attache Software in Sri Lanka and Maldives, hosted the launch. Sarath Jayasuriya, a director of Informatics said, they were excited about having the opportunity to distribute the Windows based accounting software. "This is the solution our clients have been waiting for," he stated.

Business Partner was developed by Australian based company Attache Software Australia, a recognized market leader and Australia's top seller of mid-range accounting software. Ms. Danida Rinaldi, Area Manager who attended the launch said, it was an exciting move for Attache and would hopefully be a stepping stone into India and Pakistan.

Following the company's inception in 1981, more than 70,000 Attache systems have been installed, with over 12,000 companies purchasing Attache Business Partner since its introduction to the market in 1996.

Currently, Attache Software is exported to New Zealand, South Africa, Malaysia, PNG and the South Pacific. Informatics were chosen to distribute Attache Business Partner in Sri Lanka because of their unrivalled level of expertise and reputation within the industry.

Paul Beal, a Business Analyst also of the Sydney head office, commended the Informatics team on their commitment and product knowledge.

We have no hesitation in recommending Informatics 'their understanding and skill set is impressive'.

Asoka Warnasuriya, Manager of Informatics International said, Attache Business Partner filled a gap currently existing in the market.

Priced extraordinarily well for its level of the market and able to operate with minimum hardware requirements, the total cost of ownership was incredibly low.

New President for professionals

At the General Meeting of the Organization of Professional Associations of Sri Lanka which was held on 29 October 1999, Mr. Gerry A Hidelaratchi Founder Member and past President of the Institute of Supply & Materials Management and currently Managing Director/Chief Executive of United Motors Lanka Ltd. won a decisive victory for the post of President Elect-year 1999/2000 over Mr. Y.R. Karunaratne of the Computer Society. Mr. Hidelaratchi polled 90 votes out of 133 votes cast while Mr. Karunaratne was able to secure 43 which gave a handsome majority to Mr. Hidelaratchi.

Breaking Asian barriers with BIMST-EC

By Mel Gunasekera

An Asian highway may seem bizarre but it is the brainchild of an association known as BIMST-EC.

BIMST-EC? Sounds like a 'hip hop band from LA' isn't it? Bangladesh, India, Myanmar, Sri Lanka and Thailand Economic Co-operation (BIMST-EC) as its known, is a fusion between SAARC and ASEAN.

This trans-regional organisation was formed in June 1997 to create a dynamic and conducive environment for rapid economic development. The unique feature of this grouping is that it constitutes a bridge between South and South East Asia to enable member states to derive the benefits of a common advantage and create a network of complementarities facilitating greater economic integration. BIMST-EC has identified sectors of trade and investment, technology, transport and communication, energy, tourism and fisheries to be mutually developed in the region.

Each country has been assigned a lead role in one of the above outlined sectors for a three-year period after which each sector would be subject to rotation among member countries.

Why preferential trade?

BIMST-EC members are also members of other overlapping regional groupings. This has resulted in members extending measures of economic co-operation under the auspices of those groupings only to some members of the BIMST-EC, says Dr. H S Thenuwara, Senior Economist Central Bank.

For instance Table 1 shows the preferential tariff concessions granted by member countries to other members.

As seen in the table below, Bangladesh and Sri Lanka extend concessions under SAPTA. India and Sri Lanka have progressed to engage a free trade agreement. Myanmar and Thailand extended concessions under ASEAN.

Potential for intra regional trade volumes

Dr. Thenuwara says, that most member countries have developed a trading pattern with the rest of the world. While India and Thailand trade a lot with their respective neighbours, the others seem to prefer a global context, he said.

The above figures shows there is a case for promoting trade with some concessions. It also leaves room for Asian countries like Pakistan to trade with Thailand through concessional terms via India and Singapore, he said.

Despite impressive figures, which justifies intra regional trade, BIMST-EC's progress has been hampered with the onset of the East Asian crisis.

Since its inception, Thailand experienced its worst economic crisis and some of the other member countries got embroiled in their own internal political problems that have perhaps prevented them from supporting and going ahead with their allocated tasks.

However, since realism demands that issues which are attainable be brought into focus with the least hindrance, BIMST-EC has set the ball rolling to get the tourism sector off the ground.

Tourism

Taking advantage of the solid base of shared historical and cultural heritage and the natural scenic beauty of the member countries, the association wants to promote the region as a single tourist destination.

As the initial step, 2001 has been declared 'Visit BIMST-EC Year'. Sri Lanka hosted the expert group meeting on tourism this year and a strategy has been mapped out. Officials from the local Tourism Ministry say they want to encourage a network of Buddhist circuit tourism among the member countries. Historical Buddhist sites like Buddhagaya (India), Dalada Maligawa (Sri Lanka), Statute of the Emerald Buddha (Thailand) will be jointly promoted in brochures.

Tourism and the global economy

Global tourist arrivals and earnings have shown a steady increase over the last 10 years. Developments in transportation, communication and economic liberalisation in countries have caused this healthy development. Tourism receipts represented almost one third of the value of world trade in the services sector and over eight per cent of world merchandise trade. During 1993-1996 the average growth in the international tourism receipts was higher than the average growth level of global exports.

Tourism in the BIMST-EC region

Arrival earnings of the BIMST-EC region experienced higher growth rates of 7.5% and 13.8% respectively. In 1998, Thailand ranked 21 among the world's top 40 destinations and 17 among the world top 40 tourism earners. India ranked 34 among the world top 40 tourism earners. Arrivals in Sri Lanka, Bangladesh and Myanmar are very low compared to Thailand and India. As seen from Table 2, tourism plays a greater role in Thailand and India than the rest of the BIMST-EC region.

In order to promote 'Visit BIMST-EC Year', the association hopes to organise conventions, cultural shows, fashion shows, food festivals, craft shows etc. in preparation for the event and during the designated year.

There would also be a promotion of new BIMST-EC tourism products and its joint marketing in major tourist generating countries.

Various promotional tools like conducting strategic studies for joint marketing, developing and packaging various festivals in the region based on religious commonality, cuisine, culture, shopping, etc.

Other activities like easing of visa procedures for tourists to the region; enforcing binding laws to safeguard the standards of tourism products and services and improve tourist security to protect the visitors and operators in the field.

Future

Merely two years old, BIMST-EC has admitted Nepal into its fray as an observer. Though progress has been slow, during the last months due to the Asian crisis, member countries particularly Thailand have shown a lot of enthusiasm for the regional group to become a reality.

The initial work on the Asian highway by way of a map has already been worked out as seen above. Since Sri Lanka is an island nation, we will be connected to India via a ferry. Who knows, may be in a few years time we would be lucky enough to take a tour around Asia starting all the way from Sri Lanka.

UNDP report slams Asian govt's for corruption

By Feizal Samath

A United Nations-supported study on human development in South Asia has slammed governments for corruption, an inefficient bureaucracy and discrimination of women, and says the region is one of the worst governed in the world.

"South Asia has a history of democratic institutions but studies show that the democracy that is practiced here is not at all condusive for the welfare of the people," Khadija Haq, president of the Islamabad-based Mahbub Ul Haq Centre for Human Development (HDC) said in Colombo last week.

She was speaking at the launch of the 1999 Human Development report for South Asia prepared by the HDC and supported by the United Nations Development Programme (UNDP).

The HDC is the brainchild of Khadija's husband, Mahbub Ul Haq, an eminent economist and former Finance and Planning Minister of Pakistan. Haq, who died last year, was the founder and architect of the UNDP's world-renowned Human Development Reports that were launched in 1990.

This year's report titled "The crisis of governance" deals with a range of issues like poverty, corruption, governance, economies, military spending, gender discrimination and social injustice.

It says that South Asian remained a region divided between the hopes of the rich and the despair of the poor in which the richest one-fifth earned almost 40 percent of the region's income and the poorest four-fifths "makes do with less than 10 percent."

"...where today begins the struggle of survival for 115 million poverty-ridden destitutes, and tomorrow threatens the future of 395 million illiterate adults; where women are often denied basic human rights; and minorities continue to struggle against prejudice and discrimination. At the threshold of the 21st century this is the South Asia that we live in," the report noted.

Peter Witham, UNDP Resident Representative in Sri Lanka, said the Haq-guided Human Development Reports has had a tremendous impact in the world and revolutionized the way the UN system approached development.

"There has been an enormous impact on development arising out of these reports," he said.

South Asia, the report says, was facing a crisis of governance which, if left unchecked, could halt the region's democratic progress and the economic social wellbeing of its teeming millions.

It spoke of the nuclear crisis in Pakistan and India; weak coalition governments in India and Sri Lanka that are unable to guarantee a full term in office; political demonstrations and strikes that force Bangladesh to regularly shut down and urban chaos from the streets of Karachi to the war-ravaged Jaffna peninsula in northern Sri Lanka.

"All the nations face the pernicious evils of endemic corruption, social exclusion and inefficient civil services which plague them uniformly."

Income disparities in South Asia were one of the largest in the world with women suffering the most.

The report said South Asia had emerged as one of the most poorly governed regions in the world with the exclusion of the voiceless majority, unstable political regimes and poor economic management.

"The systems of governance have become unresponsive and irrelevant to the needs and concerns of the people," it said.

In many South Asian states, democracy was fast turning into an empty ritual with elections being the only bridge between the state and society, the report said but noted however that voter interest was also fast fading.

The report said that while trade taxes, overall budget deficits, military spending as a percentage of combined health and education expenditures have declined and foreign investment has risen, only one percent paid taxes, capital expenditure had fallen, the number of non-performing loans was rising and the black economy was around 25-35 percent of GDP (gross domestic product).

Though South Asia has undertaken structural adjustments in recent years, the burden of adjustment fell on the poor with social and development expenditures being slashed.

Deprivation made South Asia an ideal breeding ground for crime and violence, it said. Besides being ravaged by a 17-year long civil war, Sri Lanka had the region's highest rate of murders and armed robberies with nine murders and 20 armed robberies per 100,000 people. Bangladesh recorded the region's highest rate of car thefts and rapes per 100,000 people while India witnessed 23,000 dowry deaths since 1994.

"With life so insecure and liberty so vulnerable, South Asia is in need of a new compact between people and the state," the report said reflecting on the large number of battles between competing interests pitting caste against caste, race against race.

The UN-backed report also dealt at length on corruption saying the evidence from South Asia was stark.

"If corruption levels in India were reduced to those in the Scandinavian countries, investment rates could increase annually by 12 percent and the GDP growth rate by almost 1.5 percent.

If Bangladesh were to improve the integrity of its bureaucracy to Uruguay's level, its yearly GDP growth could rise.

And if Pakistan were to reduce corruption to the Singapore level, its annual per capital GDP over the period 1960-1985 could have been much higher."

The report said that corruption in South Asia was unique because it led to promotion not prison and a flight of capital while resulting in massive human deprivation and even more extreme income inequalities.

The report said that South Asia had one of the world's most buoyant NGO sectors with, for instance, a mushrooming of over 100,000 non governmental organisations in the region.

Of these 25,000 are in India, 19,000 in Bangladesh, 10,000 in Pakistan, about 18,000 in Nepal and some 30,000 in Sri Lanka.

"Some of these NGOs are quite small and exist only on paper. But many NGOs have a national impact and some - including Sri Lanka's Sarvodaya's movement and the Grameen Bank of Bangladesh - are international role models," it noted.

The private sector in South Asia should have been revitalised through liberalised policies but the state's often pervasive influence in economic activities hindered growth in this sector.

The report said that over-valued exchange rates and trade controls not only retarded export growth but also ended up transferring resources from agriculture to the non-agricultural sectors.

"The private sector became a "mirror" image of the public sector - inefficient, reliant on subsidies and forever infant," it said.

HDC president Haq said that next year's report would focus on gender and disparities.

"South Asia is the most gender-insensitive region in the world and has failed women and children in all social aspects - education, health or politics. Previous reports have raised these issues but the situation seems to get worse," she warned.

Haq said the HDC planned to present a comprehensive analysis on the gender issue with inputs from gender experts in the region. "We are looking at the whole gender question in South Asia - where we were back then and where we are now," she noted.

Emirates' big value offers for Dubai vacations

Emirates full fare passengers will be entitled to 50 per cent off a second ticket in the same class of travel and enjoy complimentary hotel accommodation in Dubai.

In another of the airline's major efforts to promote Dubai, this series of big value offers is available to First and Business class full fare passengers.

The offers apply for travel to or via Dubai from points in Europe, Pacific Rim and Africa. Travel from points in West Asia, India and the sub continent including Sri Lanka or the Gulf and Middle East must be to points beyond Dubai, to qualify for the offers.

Passengers can use the offers on the inbound or outbound leg of the journeys and both the full fare ticket holder and the discounted fare ticket holder must travel on the same journey into and out of Dubai, the company release said.

Passengers may opt to use only the airfare offer, independent of the hotel accommodation in Dubai. Extension stays at the respective properties can be arranged subject to additional nights' charges and the availability of valid entry visas for the required duration.

First Class

First Class passengers enjoy two nights' complimentary stay at the exclusive all-sure Al Maha Desert Resort, which is owned and managed by Emirates. The Al Maha, located on 3,500 acres of desert about an hour's drive from Dubai city, is the world's first desert conservation project and the UAE's first ecotourism resort. Available until March 31, 2000, the offer includes arrival meet-and-assist and chauffeur car transfers by Arabian Adventures, and complimentary two-day entry visa fees.

Business Class

Business Class passengers will be offered two nights' complimentary accommodation at the Le Meridien Dubai, Le Meridien Jumeira Beach and the Le Merdien Mina Seyahi hotels. The offer is available until December 15 this year and bookings must be made between October 25 and November 30.

Arabian Adventures will offer free transit visas, arrival meet-and-assist and chauffeur car transfers between airport and hotels.

Emirates will commence new services to Munich and Stockholm in November. Munich receives six flights a week going up to daily operations from January 1, 2000. Stockholm flights are code - shared with SriLankan Airlines and will operate twice a week, going up to thrice weekly from December.

Shipping fund put to improper use

By Gunapala Ranasinghe

The appropriation of funds from the Shipping Fund, which is constituted with the collection of 1% of the Shipping Agents' Commission, but has caused concern among shipping circles due to the unconventional manner in which the Fund is being used, is expected to be streamlined soon.

A corporate body named THE SRI LANKA MARITIME AUTHORITY is to be established shortly by an Act of Parliament.

It is often alleged by shipping agents that the Shipping Fund is not put to proper use. Although shipping agents contribute 1% of their Agents' Commission towards this Fund, hardly any service is being offered to the shipping agents by the Fund.

The Ceylon Association of Ships' Agents (CASA) has expressed that its members have not been beneficiaries of the Shipping Fund. They further allege that the Fund has failed to assist in the spheres of education and development of the shipping circle, and members had had to find funds through their own sources.

Some are of the opinion that it is highly unusual for the Government to demand contributions from the shipping agents for providing services. These shipping agents earn very valuable foreign exchange for the country, and it is the duty of the Government to provide the necessary infrastructure and services. Such a fee is not levied in any other sector.

Meanwhile, it is expected to establish a Shipping Development Fund under proposed Sri Lanka Maritime Authority Bill. Some of the objects of the Shipping Development Fund shall be the encouragement of research in shipping and related activities, developing shipping as a full-fledged service, to strengthen the capacity of institutions representing interests of exporters and importers, developing infrastructure facilities, assisting professional institutions, training and certification of seafarers, marine pollution prevention and the development of information technology in maritime activities.

AMR reports third quarter earnings of USD 279 million

AMR Corporation parent company of American Airlines today reported the third quarter earnings of $ 279 million.

"During the third quarter, we were pleased to welcome 1,700 new employees to the American Airlines team as Reno Air was integrated into American on August 31", said Donald J. Carty, American's chairman and CEO.

"This added 180-plus flights to the western part of our route structure. Also in the Northeast, the network added 300 daily flights as American Eagle's Business Express Airlines unit transitioned into our reservation system.

Among AMR's other third quarter highlights:

* The ADVANTAGE programme made major changes, making it much easier for members to keep miles from expiring.

* American Airlines changed its on-board cell phone policy to allow calls while still at the gate.

* American Airlines was the only airline in the Fortune 100 to receive the top rating for its Y2K preparedness by Weiss Ratings.

* American Airlines said it would install fully flat sleeper seats in First Class on its Boeing 767-300 aircraft.

* American Eagle opened a spacious new terminal at Los Angeles International Airport offering covered boarding.

* American Airlines began Dallas Fort Worth - Osaka service with Boeing 777 aircraft.

* American Airlines welcomed Finnair and Iberia to the oneworld alliance.

* American Airlines and EVA Airways of Taiwan announced a new marketing agreement.

* American Airlines moved its Paris operation from Orly Airport to Roissy-Charles de Gaulle Airport.

* AMR was named by FORTUNE Magazine as one of the 50 best companies for Black, Hispanic and Asian employment - the only passenger airline to make the list.

* Total worldwide travel booking processed through the Sabre computer reservations system were 113 million for the quarter, an increase of 6.2 percent over the same period last year.

American's Don Carty selected as outstanding Director

Mr. Don Carty CEO of American Airlines has been selected by the editors of Directors Alert, as one of Corporate America's top 10 Directors for the year 1999.

The Editor says outstanding Directors are Objective, Inquisitve and at times Skeptical. They have the time and, at times space to do the job both inside and outside the boardroom.

Michel Dell of Dell Computers says he appreciates Carty's contributions to Dell's Board of Directors. Don Carty helped us avoid mistakes that other companies have made".

Kuwait Airways flying steady

In March 1954 the Kuwait National Airways Company was formed with a capital of 150,000 Kuwaiti Dinars. Three DC-3's were initially used to operate services between Beirut, Jerusalem, Damascus and Abadan.

Within one year the new airline was facing economic hardships which prompted the Kuwait government to provide financial support by acquiring a 50 percent interest for sterling pounds 200,000. As a result the company capital was double and its name was changed to Kuwait Airways Corporation (KAC).

In May 1962 the Kuwait government acquired the equity held by the shareholders in entirety and thereby became the sole owner of Kuwait Airways Corporation. With adequate financial resources at its command and the full government backing, the Kuwait national carrier came of age to carve out a world of its own within a very short period. The phenomenal development that followed is recorded as follows:

1962-KAC enters the jet age with a comet 4-C aircraft and the route map changes quickly with 3 flights weekly to London. 1962-KAC enters the jet age with a comet. 4 - C aircraft and the route map changes quickly with 3 flights weekly to London.

1978-KAC uses an all BOEING 707 fleet with 8 aircraft. Same year it enters the Wide Bodied era by taking delivery of its first B 747 - 200 adding a third in the following year.

1990-KAC operates a fleet of 21 modern aircraft flying to 42 destinations in 35 countries in Asia, Africa, Europe and North America carrying more than 1.5 million passengers and in excess of 50,000 tons of cargo.

The Corporation's worldwide services were supported by a fully integrated, infra-structural base which included a comprehensive engineering, training, reservation and catering facilities.

Following the liberation in February '91 the airline was re-launched with Kuwait Airways adopting a master plan for its re-organization as well as expansion of its operations worldwide. Consequent to this policy 15 brand new Airbus aircraft and 2 Boeing 777's have been inducted to the fleet bringing the total of the state-of-the-art aircraft all equipped with the latest entertainent systems to 18. With the establishment of the fleet of latest aircraft and its organizational framework KAC was able to re-establish its network in over more than 46 countries worldwide and it has consolidated its commitment to providing the best service by offering even more comfort to its customers whilst continuing to rank SAFETY as one of its highest priorities.

At Kuwait Airways one of the foremost priorities is to constantly update and improve the facilities and services offered to passengers which has made the airline much sought after by the high volume of passengers it has ferried in the recent past. Menus offered on board are constantly changed and new ones introduced every month in all classes and on all routes. These menus have been selected with the utmost care to cater to a wide variety of tastes. Kuwait Airways as a member of the world gastronomy committee has put together 72 new meals not previously offered on its flights in addition to various new kinds of fresh sweets and drinks, cheese, fruits and ice-cream served in all classes.

Kuwait Airways being the national carrier is putting in all the public relations efforts to improve the image of its country which is conservative in outlook and also keen to develop and nurture relations with all friendly countries. The airline in association with the Kuwait Tourism Board and the Hotels Association of Kuwait with much research and campaigning introduced a Tourist Festival for the first time this year named "HALA FEBRUARY 99" which was an outstanding success judging by the massive response of the many thousands of visitors who arrived in Kuwait which has earned a fine international reputation in the areas of Art, Trade and its strategic location creating a natural link between the desert and the ocean. This festival will in future be an annual event to provide more opportunities for vistors to see the beauty of the country as well as to the relations of the large expatriate working community to have a family re-union in a festival atmosphere. The Airline's support for the "HALA FEBRUARY 2000" festivities have already begun and Kuwait Airways is confident that the next year's festival will be as successful as the first one held this year with all those involved rising to the challenges and putting a spectacular range of activities to be enjoyed by all those participating.

Touching on the activities of the airline in Sri Lanka, Kuwait Airways has maintained a continuous service for over 3 decades playing a very active role, initially in the ferrying of Sri Lankan workers to destinations in the Gulf States. The airline at present is concentrating on the diversified mix of traffic by bringing in leisure tourists from the continent and USA with the operation of services to major international destinations in those continents. The airline offers potential to develop the Tourist Industry and assist Sri Lanka to earn valuable foreign exchange. The operation of 5 flights weekly to and from Colombo reflects the development of its activities locally and the airline's popularity amongst many thousands of passengers who opt to fly with Kuwait Airways for numerous reasons.

The 100 percent safety record it has thus far maintained and the operation of a fleet of new generation state-of-the-art aircraft have boosted the confidence of the travellers. The convenient departure and arrival times has also lured many passengers. Above all punctuality of the flights and the superb in-flight service have also contributed immensely to the growing popularity of Kuwait Airways. Kuwait Airways ensures an optimum of 2 hours transit for connections to European and American destinations. In addition to the wide variety of menus served on board, the airline's cabin crew looks after the children on board so well thus providing an opportunity for the parents to enjoy the flights. The latest innovative facility Kuwait Airways offers its passengers en-route to destinations in Eurpoe / USA is to provide them free transport to and from Bandaranaike International Airport. Aggressive marketing strategies adopted combined with the unique facilities offered to all passengers on all flights have made Kuwait Airways very popular choice in Sri Lanka.

Finally the Management of the Sri Lanka office of Kuwait Airways thank the travel and cargo agents and also the exporters for their wholehearted support without which the airline could not have achieved these significant goals.

(Extracts from an interview with Director GSA Mr. Eustace Silva)

An emergency underwater repair at sea

Recently the large container carrier "Cho Yang Alpha" arrived in the port of Colombo with a load of containers.

On arrival the ship reported an intake of water into its double bottom tanks.

A team of divers of Colombo Engineering was rushed to the vessel with sophisticated equipment. Using the most modern state-of-the-art equipment the J.W. Fishers of USA with the most modern underwater search cameras with high intensity lighting, the damage was located within about 30 minutes which was a crack in the ship's bottom plating.

On completion of container operations the "Cho Yang Alpha" sailed out.

A team of divers with the most modern underwater welding equipment proceeded to the open sea and carried out underwater repairs by way of underwater welding and enabled the ship to proceed on its voyage.

The entire operation was carried out in just a few hours under the personal supervision of Kiran Atapattu.

Pacific International awarded the best shipping line

Pacific International Lines, Singapore (PIL) is proud to announce that it was awarded the "best shipping line: China to Southeast Asia" honour at the first China freight industry awards organised by the China Shipping Gazette of the State Development Planning Commission of prc. In addition pil won the merit awards for the following shipping services:

1. China to Middle East

2. China to Australasia

3. China to Hong Kong

The presentation ceremony was held at Kunming, China in September and officiated by Mr. Qian Yongchang, Executive Vice President of China Communications & Transportation Association; Mr. Su Xin Gang, Deputy Director General of Department of Water Transport of the Ministry of Communication; and Mr. Ma Liqiang, Deputy Director of Economic Operation Bureau, State Economic & Trade Commission, prc. Mr. L.L. Chua, Executive Director of Pil's liner division received the plaque and certificate.

In commenting on the awards, Pil's Managing Director, Mr. S.S. Teo said, "we are pleased with the recognition accorded to us for we had over the past 30 years endeavoured to provide shippers in China, Southeast Asia, Middle East and in recent years, Australia and New Zealand, with efficient and dedicated services that are ahead of our competitors. We have the advantage of depth coverage of the Hinterland of China and a wide spread of ports in Asia, Australasia and East Coast Africa.

The steady growth in the volume of cargoes handled bears testimony to the confidence our shippers have in the quality of our total transport services.

We will continue to deliver and meet the expectation of shippers and consignees".

Mackinnons travels offers efficient service

Travelling to town is no longer necessary to attend to your travel needs. If you live around Royal Park Condominiums, Rajagiriya, you can leisurely drop in there at our branch office and still receive all the services and support that thousands of travellers have come to rely on from Mackinnons Travels.

Ticketing, visas, travellers' cheques are more.. you'll find everything you need now within easy reach of your home.

And what's more,... there is ample parking space available too! As a representative of American Express Travel Related Services, we at Mackinnons are able to link you instantly to more than 1700 offices worldwide, every time you buy your airline ticket. Transportation both local and international is no longer a problem with Avis-Rent-A-Car Service also represented solely by Mackinnons. With two of the best internationally recognized companies you get nothing but the best with special deals that will surprise even the most seasoned traveller. Our computer links with the airline and professional staff help you to get your destination with the best connections on any carrier to anywhere in the world. Thus you arrive in better shape with your traveller's cheques issued, hotel room reserved and transportation booked.

Mackinnons Travels is the largest outbound travel agent in Sri Lanka enjoying a market share of approximately 12%.

Our strength with the Airlines has also enabled us to obtain preferential status in areas such as seat confirmation and excess baggage - just to name a few.

We are also equipped with Amudens, Guilew & Amudens reservation systems. We are open 365 days of the year including public holidays and weekends. Our services are also unrestricted in the event of an emergency, and after-hours telephone contact number (0722 33398) will get you in touch with senior personnel of our staff, wherever you may be.

Several companies within the John Keells Group have been appointed as General Sales Agents for many prestigious international airlines such as American Airlines, Gulf Air, Jet Airways, LTU Asian Airlines and Canadian Airlines. This representation together with our close rapport built with airline officers at all levels gives us priority access to a large fraction of airline seats to most destinations. We issue air tickets on all airlines to any destination and stock and issue air tickets of all major airlines (e.g British Airways, KLM., Emirates, Singapore Airlines, Thai Airways, Cathay Pacific, Indian Airlines and Sri Lankan Airlines, to name a few).

* Provision of pre-flight information such as detailed itineraries, airport transfers, details on taxes, check-in times, hotel reservations with contact numbers and faxes, reconfirmation procedures and contact numbers, complimentary vouchers (where applicable), indication of weather patterns/climatic conditions, types of meals provided on sectors and other relevant information.

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