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Sri Lanka Newspapers - 03/01/2012

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1Sri Lanka Newspapers - 03/01/2012 Empty Sri Lanka Newspapers - 03/01/2012 Mon Jan 02, 2012 10:50 pm

CSE.SAS

CSE.SAS
Global Moderator

Foreign currency glut coming soon, says Cabraal

The Governor of the Central Bank tried to bring some sanity to the market yesterday as speculators hammered the exchange rate which saw the rupee fall slightly and interbank interest rates rise on liquidity tightening.

Central Bank Governor Ajith Nivard Cabraal said there would soon be a glut in foreign currency inflows which would completely remove the pressure that continued to build up for the rupee to depreciate against the dollar on severe import demand.

"We do not want to unnecessarily allow the rupee to depreciate at this stage because we know foreign currency inflows will be strong and there would soon be a glut," Cabraal told The Island Financial Review.

"There is ample space for us to defend the exchange rate at its current level and the Central Bank will not panic. We are very focused and we know what we are doing. The market may panic, but we will not fall into this trap and unnecessarily depreciate the rupee," Cabraal said.

The Central Bank is releasing the Monetary Policy Road Map for 2012 today (Jan. 03) and Cabraal said he would elaborate more on the expected foreign currency inflows. "We will show you where it will all come from," he said.

Speculators caused pressure on the rupee to intensify yesterday which resulted in a slight depreciation with the dollar closing at Rs. 113.90/92 from last year’s close Rs. 113.89/90.

Dealers said there was speculation that the rupee would be further depreciated which added more pressure on the exchange rate already under siege by severe import demand.

As usual, Central Bank intervention brought stability to the exchange rate through dollar sales. This resulted in the further tightening of rupee liquidity and interbank interest rates jumped yesterday.

The average weighted call money interest rate for interbank borrowings without security leaped to 9.40 percent on Monday from 8.97 percent last Friday. The money market interest rate for interbank borrowings backed by Treasury securities increased to 8.35 percent from 8.17 percent last Friday.

The Sri Lanka Inter Bank Offered Rate rose to 9.42 percent from 9.01 percent.

The Central Bank and Treasury don’t see eye-to-eye on the exchange rate issue. Treasury Secretary Dr. P. B. Jayasundera last week called for a more flexible exchange rate and tighter monetary policy as pressures on the balance of payments mount. But analysts point out that only one option would suffice, devalue the rupee or tighten monetary policy.

Last November (22) the government devalued the rupee by 3 percent against the wishes of the Central Bank and there is growing speculation that another devaluation would soon follow as it failed to stem the severe import demand.

Ministry of Finance and Planning Department of Public Enterprises Director General S. R. Attygalle told journalists last November, as reported in these pages, that an exchange rate of Rs. 114 or Rs. 115 to a dollar would not be a bad thing "if it uplifts our export sector and import substitution industries".

The Central Bank had sold US$ 1.1 billion in three months to prop the exchange rate between July and September and nearly US$ 710 million since the 3 percent devaluation in November 22.

Total export earnings for the first ten months of 2011 slowed down to 23.4 percent to US$ 8,702.1 million while the import bill grew at a much faster pace, up 50.7 percent to US$ 16,436 million. The trade deficit had expanded by 100.6 percent year-on-year to US$ 7,733.9 million.

New bank loans to the private sector for the first ten months of this year amounted to Rs. 376.2 billion. The new loans generated for 2010 was Rs. 290 billion. The year-on-year growth rate of credit to the private sector from the domestic banking system was 35.6 percent last October.

http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=42372[b]

2Sri Lanka Newspapers - 03/01/2012 Empty Bourse closes flat on opening day 2012 Mon Jan 02, 2012 10:53 pm

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

The Colombo Stock Exchange closed flat on the first trading day of the year.

The All Share Price Index closed in the green, up a marginal 0.01 percent gaining 0.45 points to 6,074.87. The Milanka Price Index of more liquid stocks closed 0.21 percent higher at 5,239.92 gaining 10.76 points.

Turnover reached Rs. 419.55 million with COMB, HAYL and CLND contributing 34 percent to turnover, brokers said. COMB in fact dominated trade towards the end of last month.

Net foreign selling amounted to Rs. 73.21 million.

Around 91 counters closed in positive territory against 79 in the red.

United Motors Lanka announced an interim dividend of Rs. 3 per share.

HNB announced the resignation of non-executive director R. K. Obeyesekere with immediate effect in keeping with the Central Bank regulation of corporate governance.

Asian Alliance Insurance too announced the resignation of Prof. Lakshman Watawala from the Director Board with effect from December 31, 2011.

Blue Diamonds Jewellery Worldwide saw two of its directors resign as well, K. S. C. P. K. Gunasinghe and U. D. Liyanagamage.

Sierra Cables said the amalgamation with its fully owned subsidy Alucop Marketing Ltd would be finalised soon, after which Alucop would cease to exist.

Nawaloka Construction Company Private Ltd controlled by the Dharmadasas acquired 45,000 shares of Nation Lanka PLC. H. K. Dharmadasa and U. H. Dharmadasa function as Chairman and Director respectively of both companies.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=42373

3Sri Lanka Newspapers - 03/01/2012 Empty Com Bank expands ATM network to 500 Mon Jan 02, 2012 10:55 pm

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

The ATM network of the Commercial Bank of Ceylon has connected its milestone 500th terminal, further consolidating its status as the largest electronic cash dispensing system owned by a single bank in Sri Lanka, the bank announced yesterday.

This landmark was reached with the opening of an ATM at Maradana Railway Station. Commercial Bank’s ATM network has grown rapidly, adding 100 terminals in the past five months.

The 500th ATM machine was ceremonially commissioned by Chief Information Officer of Commercial Bank, Rohan Muttiah in the presence of General Manager Railways B. A. P. Ariyaratne.

On average, the Bank’s ATM network dispenses approximately Rs 600 million daily, the highest volume by a cash dispensing facility in Sri Lanka, and processes on average 140,000 transactions a day. The Bank’s ATMs also hold the top spot in terms of reliability, with the highest ‘up-time’ according to statistics.

"Our transaction figures speak for themselves," said Rohan Muttiah, Chief Information Officer of Commercial Bank. "They prove that the Commercial Bank’s ATM network plays an important part in the lives of the citizens of the country, and are also testimony to the reliability of the equipment and the high quality of our maintenance."

Located in every district of the country, especially in the vicinity of major cities, Commercial Bank teller machines are installed at 213 branches of the Bank as well as at 100 conveniently accessible off-site locations.

In addition to facilitating withdrawals, the Bank’s ATM machines enable convenient settlement of water and electricity bills, bills of Dialog, Mobitel, Etisalat, Hutch and Lanka Bell networks, and Commercial Bank Credit Card payments 24-hours a day, 365-days of the year. The Bank’s network of teller machines is also linked with millions of ATMs across the world.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=42374

4Sri Lanka Newspapers - 03/01/2012 Empty Oil-rich Nigeria stops fuel subsidies Mon Jan 02, 2012 10:58 pm

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

ABUJA, Nigeria (AP) — Nigeria is ending fuel subsidies, an official said, a move that is sure to be unpopular in the oil-rich nation where citizens have come to expect cheap fuel as one of their few government benefits.

The Petroleum Products Pricing Regulatory Agency will stop paying the subsidy to petroleum importers effective immediately, said executive secretary Reginald Stanley in a statement Sunday.

The government has said the move will save the country some $8 billion, some of which will be dedicated to much-needed infrastructure projects. Previous attempts to lift the subsidies have been met with nationwide strike actions.

"Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding," the statement read.

However, less than an hour after Sunday’s announcement, some gas stations in the commercial capital of Lagos had stopped selling gas, presumably in the hope of selling it post-subsidy for more than the current price of about $1.70 per gallon (45 cents per liter).
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=42376

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

1.3: 1 bonus issue next month

By Ravi Ladduwahetty

Amana Takaful Maldives PLC, the Maldivian listed arm of the Sri Lankan based Amana Takaful PLC which had a 16 Million Ruppiah ( LKR 114 million) Initial Public Offering in the Maldives in September and fully subscribed last month , will see the shares making its debut in the Maldivian Stock Exchange this week.

The issue was for 800,000 shares at Ruppiah 20 each. Amana Takaful is also the first corporate to be Shariah complaint in the Maldives and also the first Shariah compliant corporate with the Maldivian Stock Exchange.

There will also be a bonus issue of 1.3: 1 which means that the shareholders will get 130 shares for every hundred shares which was also in consonance with the agreement at the time that the IPO opened, Amana Takaful PLC General Manager (Marketing) Adel Hashim told The Island Financial Review yesterday.

The company expects the share to debut at slightly over 20 Maldivian Ruppiah given that there is a bonus issue on the cards and also given the bullish growth prospects especially in the Maldivian resort sector which is currently growing at a very rapid pace.

The Board of Directors of Amana Takaful Maldives comprises: Akbar Brothers Director and Amana Takaful Sri Lanka Chairman Tyeab Akberally as the Chairman, Osman Kassim, Eshan Zaheed and MHM Rafiq who are all Directors of the local Amana Takaful operation along with the Malaysian Dato Fazli Mohamed Yusuf. It is envisaged that there will be another member of the Board who is a Maldivian national who will be joining in the first quarter of 2012, Hashim said.

He also said that the company will be very upbeat in procuring a major slice of the now – competitive Maldivian insurance market in which there are already four players- the Sri Lanka Insurance Corporation Ltd, Ceylinco along with Maldivian player Allied Insurance. Specially crafted products are there for the micro- insurance categories, fire and burglary policies for the resort and condominium sectors which the locally- led company was bullish with.

There had been overwhelming support for the company and its entry into the Maldivian financial services and insurance markets from the Maldivian Stock Exchange and the Maldivian Capital Markets Development Authority.

http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=42378

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Revolutionizing internet usage across the country whilst expanding Sri Lanka’s broadband capacity, SLT Broadband proudly announces up to 4 times faster internet speeds, taking the speeds up to as much as 16 Mbps. The telco said it had unveiled a significant enhancement to the SLT Broadband user experience for existing and new customers from 1st January 2012 to usher in the New Year.

"SLT Broadband has simultaneously launched 4 new exciting high-speed broadband value packages and has enhanced the speeds and volumes of existing packages as a unique way in which to celebrate the New Year and improve Internet experience for SLT Broadband customers. This has given customers a better selection of broadband packages in order for them to choose the ideal package that suit their specific need and budget," the company said in a statement.

"Since Sri Lanka is poised to achieve greater economic growth and social prosperity in the New Year, and as the national telecommunications service provider, SLT can boost the country’s potential by enhancing the Internet speeds up to 4 times and launching four new broadband packages to celebrate the dawn of 2012. SLT has a close relationship with its customers and sensitivity to the broadband needs of the nation have inspired them to enhance the broadband capacity significantly, thereby providing unmatched high speeds upto 16 Mbps. The fast speeds and uninterrupted broadband connections cater to the constantly evolving diverse Internet needs of citizens.

SLT perseveres in its ‘One Country, One Voice’ motto, developing products and services to weave a tight national fabric that binds them all together in unity. SLT is also confident that the enhanced broadband facilities will enhance opportunities for knowledge gathering, communication and connectivity for SLT broadband users through the year. This is SLT’s way of wishing all their customers a peaceful and prosperous New Year!

SLT offers superior broadband speeds coupled with its affordably priced broadband packages to take Internet island-wide. Significantly, SLT Broadband delivers consistent, uninterrupted, high-speed Internet even through the worst weather conditions of rain to provide uninterrupted broadband connectivity."
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=42379

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

By John Quiggin, author of Zombie Economics and Professor of Economics at the University of Queensland.

SELLING public enterprises to private businesses was a central theme of economic policy in many countries during the final decades of the 20th century and in the years leading up to the global financial crisis of 2008.

Although the push for privatization took different forms in different parts of the world, it was part of a broader movement aimed at reducing the role of government in the economy and at increasing reliance on markets and prices. In particular, the movement toward privatization reflected the presumed superiority of financial markets over governments in allocating capital.

In the wake of the financial market breakdowns that characterized the global crisis, though, much of the theoretical and policy rationale for privatization has come into question. On the other hand, the adoption of austerity programs aimed at reducing public debt has led to increased focus on the sale of publicly owned assets as a way to reduce that debt, for example, in Europe.

The balance between the public and private sector is always changing, so privatization is not of itself good or bad. The only general answer to the question of whether to sell public assets is: "It depends." Before looking at the central arguments that determine the desirability of privatization in any given case, it is useful to consider the policy in its historical context.

A global phenomenon

For most of the 20th century, the range of economic activities undertaken by government generally expanded—a result both of nationalization and of the establishment of new government enterprises where private sector provision was seen as inadequate. This trend reversed toward the end of the century.

In the English-speaking world, the United Kingdom led the way in this reversal. The privatization programs of the government of Prime Minister Margaret Thatcher represented a rejection of the previous consensus on the role of government in a mixed economy, a consensus widely seen as having failed in the economic chaos of the 1970s.

In addition to selling existing assets, the Thatcher government pioneered new approaches to private provision of new public infrastructure, often referred to as public-private partnerships (PPPs). In a typical PPP arrangement, public infrastructure, such as schools and hospitals, is built and operated by private firms under long-term contracts; the associated health and education services are provided by the government.

Privatization took place on a larger scale in the last decade of the century, following the collapse of communism in Russia and eastern Europe—where all large enterprises and many small ones were publicly owned and subject, at least nominally, to central planning. The development of a market economy required the transfer of most of these enterprises to private ownership.

In the developing world, the general movement toward privatization was hastened by an emphasis on asset sales as an essential element of structural adjustment programs financed by the IMF and other international agencies.

The pace of privatization slowed in the 2000s, as governments ran out of easily salable assets and problems with earlier privatization emerged.

Perhaps the most striking examples of those problems were in the United Kingdom. Following a series of serious train accidents and ongoing questions about safety and performance, the government renationalized Railtrack, the privatized owner of the nation’s rail network. A few years later, the partial privatization of the London Underground network, through a PPP arrangement, was plagued by mismanagement in one of the private companies responsible for operating the subway. Like the rail network, the London subway was renationalized. More recently, the U.K. Private Finance Initiative, responsible for PPPs at the national level, has come under severe criticism from members of Parliament, including government ministers.

The appeal of infrastructure built with no apparent cost to the public has been replaced by the reality of the need to service a large debt at the rates of return demanded by private investors in such projects—usually substantially higher than government bond interest rates.

A temporary reversal

A big reversal in the trend toward privatization occurred immediately after the global financial crisis began in 2008. Banks in the United States and Europe were rescued by their national governments on terms that amounted to nationalization, either implicitly or explicitly. Interestingly, some of these same banks had been leading advocates of privatization, which a number continued to support even when they were in public ownership. The process went beyond banks in the United States, where General Motors, long emblematic of private enterprise, was temporarily nationalized to prevent its failure. With the emergence of sovereign debt problems as a central policy concern, however, privatization is back on the agenda. Selling assets seems to be an easy way for governments to raise cash. Meanwhile, economic arguments about the costs and benefits of private and public ownership remain unresolved, and have been further complicated by the challenges to economic theory posed by the financial crisis.

While there are many arguments for and against privatization in particular cases, in general the most common argument for privatization is that it provides hard-pressed governments with a source of ready cash. But this argument is not as clearcut as it might seem. Selling an asset yields an immediate financial benefit, but it requires governments to forgo the earnings or services the asset would otherwise have generated.

The obvious question is whether the proceeds from selling an asset are more or less than the value of the earnings forgone. In principle, this is a straightforward question. We can look at the amount of interest saved if the proceeds from the sale were used to repay public debt and compare those savings to the earnings that would be generated under continued public ownership. Alternatively, but equivalently, we can convert a projected stream of future earnings into a present value, discounted at the rate of interest on public debt. If the proceeds from the sale exceed the present value of forgone earnings, privatization has improved the government’s fiscal position.

There are two factors that will determine the outcome of an exercise of this kind:

First is the operational efficiency of the firm under private and public ownership. In general, a firm operating in a competitive market will do better under private ownership. However, if the market requires extensive regulation—to deal with monopoly or externality problems—the advantages of private ownership are diminished and may disappear.

Second is the relative cost of capital, taking appropriate account of risk. In general, even after allowing for default risk, governments can borrow more cheaply than private firms. This cost saving may or may not outweigh the operational efficiency gains usually associated with private ownership.

Still, it remains relatively rare to see privatization subjected to this simple empirical test. I have analyzed a number of Australian and British privatizations of the 1980s and 1990s and found that very few of them increased public sector net worth (Quiggin, 1995; 2010). The privatizations undertaken by the Thatcher government, widely applauded at the time, were among the worst in terms of their effects on the net worth of the public sector. Most notable was the sale of 50 percent of British Telecom for a mere ?3.7 billion, at a time when its pretax earnings were about ?2.5 billion a year.

Public sector suffers

There are a number of reasons why privatizations have left public sector net worth less well off. In some cases, including that of British Telecom, governments have deliberately underpriced assets for political reasons. Particularly in the case of a public sale of stock in an enterprise, governments often want to ensure that the share issue is fully subscribed and that buyers do not lose money through a decline in the share price. Both these incentives lead to underpricing.

Worse still, as in parts of the former Soviet Union, are cases in which the privatization process was corrupted. In many cases, small numbers of people have gained control of vast assets, while the public got little in return. Cases of this kind pose a sharp dilemma. On the one hand, it is undesirable to have public assets operated by a corrupt and unaccountable government. On the other hand, when such governments are put in charge of the sale of public assets, even larger losses accrue all at once.

But even where governments are motivated to seek the full market price for public assets, the benefits of lower debt often fail to match the cost of forgone earnings. The problem is that investors generally demand a substantially higher return on equity capital than on the high-grade debt issued by governments. This differential—called the equity premium—cannot be explained simply by the fact that returns on equity are riskier. Twenty-five years of analysis of the so-called equity premium puzzle has failed to produce a fully satisfactory explanation for its existence.

In most sectors of the economy, the higher cost of equity capital is more than offset by the fact that private firms are run more efficiently, and therefore more profitably, than government enterprises. But enterprises owned by governments are usually capital intensive and often have monopoly power that entails close external regulation, regardless of ownership. In these situations, the scope to increase profitability is limited, and the lower value of the asset to a private owner is reflected in the higher rate of return demanded by equity investors.

When it makes sense

Sometimes the sale of public assets as a way to raise revenue makes sense.

First, like all large organizations, governments have changing goals and objectives. Assets that were useful in one context may be superfluous in another. For example, as the U.S. military has become smaller and more professional, the need for army bases has declined, and some have been closed and sold. Rational asset management makes sense regardless of views about privatization and public ownership.

Second, some enterprises are unprofitable under public ownership, perhaps because of political constraints on such matters as hiring and firing, but can be sold to private investors who are not subject to these constraints. In cases of this kind, there is a clear fiscal benefit. However, it is important to consider whether the constraints in question are inherent in public ownership and whether the question of structural reform can be separated from that of private or public ownership.

Finally, if a government is in such dire straits that it can no longer borrow at the prevailing low rates for high-quality public debt, often it makes sense to sell income-earning assets. The interest saved is more than the earnings forgone. In cases of this kind, privatization may take place at fire-sale prices—not an optimal outcome. A preferable alternative is for international lenders such as the IMF to provide liquidity while efficient adjustments (including asset sales where these pass the benefit-cost test) are undertaken. In general, however, the idea that governments can improve their financial position to any significant degree by selling assets is an illusion arising from a focus on accounting numbers rather than economic realities. The economic argument for privatization is that it will lead to more socially efficient provision of goods and services, more competitive markets, and greater responsiveness to consumer needs and preferences. The strength of this argument, and of counterarguments based on market failure, varies from case to case. The strongest case for privatization arises in the wake of rescues like that of General Motors in the United States and, several decades earlier, of Rolls-Royce in the United Kingdom. Firms like these, operating in competitive markets and with no particular need for regulation, never belonged in the public sector. In the ordinary course of events, faced with severe financial difficulties, they would have gone out of business. However, given their iconic status, governments were willing to risk public money to keep them going. In both these cases, the rescue was successful and the firms were returned to private ownership.

No competition

At least in the developed world, however, such cases are rare. Most cases of public ownership across developed countries reflect the lack of many goods and services in competitive markets or special characteristics that require regulation. Infrastructure services of various kinds are commonly subject to public ownership. There are several reasons for this:

* These enterprises are usually capital intensive, so the low cost of public sector borrowing is more important.

* Infrastructure services are typically natural monopolies—a given area needs only one electricity network, water supply system, and so forth. This means that, even under private ownership, extensive regulation is needed, so the choice is between one form of government intervention and another.

* In many cases, such as that of road networks, it is difficult or impossible to impose prices that reflect the true social cost of provision.

Still, the temptation to move costly infrastructure investments off the books has proved irresistible for many governments, most notably in the case of toll roads. While toll road projects look good in an accounting sense, they are often failures in economic terms. The risk associated with owning just one part of a large road network means that private investors demand high returns. The cost of a toll road project, as measured by the discounted present value of toll revenue, is typically as much as twice the cost of a similar road financed by public debt and serviced by gasoline taxes or other indirect road user charges.

Moreover, the pattern of prices associated with toll roads is usually the opposite of what would be indicated by economic analysis. The primary cost of using a specific road is the resulting increase in congestion, which is why economists support congestion charges such as those imposed in central London. But, as in the case of London, it is typically the oldest roads that are most congested. Imposing a toll on a new, and uncrowded, road often increases the flow of traffic on older, more congested roads, reducing and sometimes wiping out the net benefits of the road project.

Health and education

Separate concerns arise with services such as health and education. For various reasons, these services are funded primarily by governments and provided either by public institutions or by private (often religiously based) nonprofit organizations. For-profit provision of health and education services has generally been problematic and, in the case of education, almost uniformly unsuccessful.

The problem in these cases is that there is no real market. The patients and students to whom health and education services are provided rarely pay directly for the services they consume. Instead, providers operate in pseudo markets created by governments and insurers. In this context, the sharp focus on profitability associated with private ownership works not to meet consumer need, but to seek out opportunities to game the system. For-profit health providers often engage in cost shifting, focusing on high-return services while pushing costly cases over to the public sector. For-profit higher education providers can exploit the weakness of student grant and loan systems. Given the weakness of market incentives, only organizations with a strong ethic of professional service can provide high-quality services such as health and education. But such an ethic cannot be wished into existence, and it rarely works perfectly; it is almost impossible to maintain a service ethic while at the same time using managerial controls to increase efficiency. Nevertheless, experience suggests that there is no alternative. Technologies and social priorities change over time, with the result that activities suitable for public ownership at one time may be candidates for privatization in another. However, the reverse is equally true. Problems in financial markets or the emergence of new technologies may call for government intervention in activities previously undertaken by private enterprise.

In summary, privatization is valid and important as a policy tool for managing public sector assets effectively, but must be matched by a willingness to undertake new public investment where it is necessary. As a policy program, the idea of large-scale privatization has had some important successes, but has reached its limits in many cases. Selling income-generating assets is rarely helpful as a way of reducing net debt. The central focus should always be on achieving the right balance between the public and private sectors. ?

References

Quiggin, John, 1995, "Does Privatization Pay?" Australian Economic Review, No. 110 (2nd quarter), pp. 23–42.

———, 2010, Zombie Economics: How Dead Ideas Still Walk Among Us (Princeton, New Jersey: Princeton University Press).

(Courtesy Finance and Development, a periodical published by the IMF)
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=42382

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

By Indunil Hewage
Sri Lankan IT industry has witnessed a remarkable double digit growth in 2011 and industry experts have confidence that the sector could achieve a similar growth rate for 2012 as well.

hSenid Software International CEO Dinesh B. Saparamadu said Sri Lanka is blessed with high caliber IT professionals who can adopt new technology easily and the government policies pertaining to the IT industry have also immensely benefited to achieve this growth.

The industry performance has been impressive during last year, even though there was a recession in the USA and European countries. The recession has not had a big impact on the local software and IT industry since these industries are engaged in exporting products to respective markets in a small quantities. During the last couple of years, the industry has undergone a major change in the information technology sector since local entrepreneurs managed to initiate IT organisations to serve the local and international markets and the industry has experienced a shift from multinational companies dominance to an increasing number of newly established fast-growing local IT companies.

“Local software entrepreneurs started developing products in financial markets, capital markets, leasing and financial services, insurance, stock broking and human resource systems for the telecom, banking and airline industries.

These local entrepreneurs competed with international companies for local and foreign tenders, managed to secure projects and, delivered them successfully. These companies have positioned Sri Lanka in the application product sector of the global market in a small way,” Saparamadu said.
http://www.dailynews.lk/2012/01/03/bus03.asp

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Starting any sort of business, in any part of the world, is a risky proposition. When starting a business venture in Asia or any other continent, there are 12 very pertinent questions you should ask yourself before making an investment commitment. : Christopher W. Runckel, a former senior US diplomat who served in many counties in Asia, is a graduate of the University of Oregon and Lewis and Clark Law School, has fashioned this self questionnaire for the greater elucidation of the potential Asian investor. He served as Deputy General Counsel of President Gerald Ford’s Presidential Clemency Board. Mr. Runckel is the principal and founder of Runckel & Associates, a Portland, Oregon based consulting company that assists businesses expand business opportunities in Asia.

1. Do I need to export my Product?

This is a decision that only you can make. If you have developed a comfortable niche market for your particular product, you are satisfied with current sales and you do not really have the additional production capacity to expand your output, you may decide that this just isn’t needed. Also export requires time, attention and money; you need to decide whether these are available for this effort. The United States is the largest market in the world and many companies need not look elsewhere. However, more and more the world is becoming interconnected.

Telling whether a company is a U.S. company or another nationality is often difficult since companies compete internationally and often invest and buy in others all over the world. Therefore in the long run, even with the great size of the American market it is very hard to not take notice of the large and growing markets for goods in Asia. As trade barriers to export are removed in countries as diverse economically as China and Vietnam and Cambodia, opportunities currently exist for many U.S. and other companies that have never exported before.

2. Is my product or service needed in Asia?

The first question to ask is whether there is a demand for your product. Before you make the decision to try to enter the huge Asian market you need to make certain that there is a market for your product or service. State and federal trade development agencies publish trade statistics and country market reports that can help you learn more and make informed decisions. If you live in a major city or near a major University, the city or University library may have many directories and other volumes describing market trends. If there is a SCORE Office, this office may also have resources to assist you.

The Internet and the U.S. Department of Commerce also offer many information sources in this area. Many companies have entered exporting following participation in SCORE, U.S. Department of Commerce and State export education and training courses. These courses are usually designed for new exporters and can help you determine whether your product or service has export potential.

3. Where should I start my efforts to export in Asia?

Oftentimes this is determined for you. As you produce your product and as knowledge of it spreads in this interconnected world, oftentimes you will get inquiries from potential buyers around the world who will become aware of your product. Your interest in pursuing these requests will be determined by your company’s need for expanded sales and ability to focus on these requests which are often fairly time consuming because of the time and distance that may separate you from your potential customer. Keep in mind that not all business environments are created equal.

Doing business in some countries is much, much harder than in others because of government regulations, immature markets, low buying power and many other factors. Countries such as Singapore and Hong Kong offer very open and transparent markets, China and Japan although much larger are more complicated and may take more time to create results. Research your opportunities both on a country and a company basis before selecting a target market.

4. Will my product or service need to be adapted for Asian or other markets?

Some adjustments in your product may be necessary to improve your chances of success in Asia. Measurements will need to be converted from the U.S. system of measurement to the metric system, which is used by virtually every other country in the world! The factors that will determine whether you need to modify your product or service for your target markets are:

Government regulations in the country you intend to sell your product

Non-government standards

Country specific or region specific requirements - voltage, climate, others

Cultural sensitivity

Support and servicing requirements

Information about these factors is critical to the success of your sales efforts and should be studied and collected as part of your market research efforts.

5. If I am already marketing my product in Europe, can I expand this effort to Asia?

Strategies that work in Europe or Latin America probably won’t work in Japan or China or often in other places in Asia without some adapting. Learn more about the country you intend to sell in and about specific marketing strategies that have succeeded in the past by talking to consultants or other experts in the countries in which you are interested.

Marketing strategies may include participation at State and Federal trade missions, international trade shows, advertising, direct mail, and on-line promotions via the Internet. Keep in mind with respect to the Internet, that although growth figures for the Internet in Asia are among the highest in the world, total usage is still limited when compared to U.S. and European levels. A well thought out export-marketing programme will utilize many or all of these techniques in a balanced manner that takes into account the particularities of the Asian country in which you want to sell your product.

6. Do I need to translate my sales literature into the local language? Will I need to learn foreign languages?

If you are serious about succeeding in the Asian market, it is highly recommended that you translate your marketing materials into the Asian language of the prospective country in which you intend to market and sell your product. English is the universal language of business but people always feel more at ease reading and speaking their first language.

Even Asian business executives who are good English speakers and whom have been educated in the U.S. or western Universities often will prefer their first language and will feel more comfortable in it. A comfortable buyer who is able to better understand how your product stands apart from the competitors is what you want. Having someone within your company who is capable of speaking in the language of the culture in which you are doing business demonstrates commitment to the market. It also simplifies communications, which can occur in either English or the host country language to ensure that there are not misunderstandings.

It’s true that much international business is conducted in English, but to be truly successful you must respect you partner’s country and culture - language is a key component of this. For contract or major business negotiations, always hire a translator/interpreter. Do not rely on the company to translate for you. Their interests and the interests of your company probably will not be identical.

7. How do I learn about differing customs in Asia, which could affect my company’s chances of succeeding in doing business?

The Chinese have a saying “Seeing is believing”. The best way to learn about a country is to visit, to meet the people and to have face-to-face meetings. But first, do you homework. There is a growing body of resources available online on each country’s history, social and political customs, protocol, and business etiquette. Additionally, Federal, State and Regional export counselors and education programmes also provide excellent sources. The library and the bookstores are also great resources.

Because of the explosion of international travel, there are now travel guides - some of them focusing on the business traveler - that cover any country you might want to choose. These are good sources of basic and sometimes even fairly advanced information on a country, its culture and its people. Many consulting and specialist firms specialize in intercultural communications for business people, whether traveling or hosting foreign visitors. Watch the local business calendars for training opportunities offered by these firms in concert with federal, regional and state trade promotion offices.

8. How can I finance my international sales?

There is a saying that “money makes the world go round.” This saying is particularly true in international sales. Getting the money to fabricate your product, ship and wait for payment are issues that any entrepreneur must face. Most new exporters need to ask themselves where to get help at both the pre- and post-export financing stages of the export process.

Pre-export financing is the financing required of the exporter while the product is being built and prior to shipment. Post-export financing is the financing required between the time of shipment and receipt of payment from the overseas buyer. This is a fairly complex issue and first time exporters often need help in this area. It is an area where Export Counselors, consultants and other specialists can often help the exporter to optimize his deal. Government sources of export financing are:

SBA Export Working Capital Programmes

EX-IM bank Working Capital Guarantee

State Export Programmes

Additionally many international banks offer financing that may prove necessary.

9. How can I ensure I’ll get paid for my export sales?

Before making the sale, evaluate the risks -country, currency, and commercial - of doing business in a particular market. Once you and your buyer have come to terms, there are many different methods of payment, including cash in advance, letter of credit, collection, and open account, that you will need to agree upon. You should also become knowledgeable about credit insurance.

Forfeiting, available to very large firms through special divisions of international banks, is a way for exporters to receive cash up front and mitigate payment risks. Contact your State Export Promotion Office, the nearest U.S. Department of Commerce Export Promotion Center or the international department of your bank for help with your finance question.

10. How long will it take to see a profit from my export sales?

Naturally, the time frame from when you initiate you international activity to when you make your first sale and start enjoying profits will vary greatly from firm to firm. Factors such as your company’s prior export experience, the qualifications of the company that is buying your product, and the challenges of the market all will act to vary the time required. In general, expect the turnaround to be at least one to two years. In more difficult markets, this maybe overly optimistic and should be adjusted. Keep in mind that if it was that easy; every company would already be major exporters.

11. How should I ship my product overseas?

First, do your homework on this issue - it can be a key to success. View your transportation company as a key partner that will make or break your efforts to export. Further, don’t assume your buyer is as knowledgeable on this issue. A successful export programme uses reliable, cost-effective methods of shipment.

Transportation of your product is an important consideration because it is a significant cost factor. Buyers generally compare competitive products on the basis of delivered cost. Your company needs to make sure your product is delivered in good condition, on time, and keep the cost in line with competitive products. As your sales expand, distribution, which also includes cost for storage and inventory, will have a key effect on your competitiveness. The transportation choice, therefore, should blend the most cost-effective and reliable company that will produce all these factors.

12. What agencies, groups, or others can provide assistance to my company on the various facets of the selling to Asia? Is their advice essential? How much will this expertise cost? How do I know which firm has the right qualifications?

Generally services provided through your State export promotion office are free. This is often a good starting point. Most states also offer education and training programmes in connection with state community and other colleges and Universities at a nominal fee. Industry trade associations also sponsor a variety of programmes specific to their industries. You can often research these via the Internet. Watch the business calendars in the local media to keep up with export training opportunities.

The U.S. Department of Commerce has Export Assistance Centers in most major U.S. cities. These centers also provides counseling services to exporters although some services such as matchmaker (assistance in finding a foreign agent), etc. do require payment of a moderate fee. Export management companies (EMCs), Consulting companies of which there are many in throughout the United States and other specialist firms provide services for new and experienced exporters.

When selecting an individual or firm to assist you, evaluate the company’s experience, especially in the particular country or area of expertise where you seek assistance. Evaluate the company’s professionalism, credibility, the education of key firm members, and general compatibility of the firm with your firm’s goals. Seek a written proposal of what the company can accomplish for you and at what price and according to what time period the services will be performed. Seek and check references, which the firm should be happy to supply to you.
http://www.dailynews.lk/2012/01/03/bus15.asp

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

By Indunil HEWAGE
The value of vegetables and fruit exports will go up from the present Rs 3,000 million to Rs 4,000 million per annum by end 2012 . There is an increased demand for quality Sri Lankan fruits and vegetable products from Jordan, Oman, Lebanon, Bahrain, Maldives and Saudi Arabia.

Sri Lankan fruits that are in demand are pineapples, passion fruit, red lady papaya, fresh dragon fruit, rambuttan, avocado among others. The major competitors in the global fruit and vegetable industry are Brazil, South Africa and Thailand.

However quarantine barriers and unfavourable weather are the pressing challenges faced by the respective exporters.

“Priority must be given to increase the contribution of agricultural sector to the GDP at least up to 30-35% from the present 16% growth rate . To achieve the anticipated US $ 20 billion total export revenue mark by 2020, Sri Lanka would have to set up orchard cultivation which would definitely increase the productivity of the lands by producing high yield per acre. Solutions must be found to various issues such as non availability of sufficient high yielding planting materials and it is imperative to collaborating with technology research institutions in the world, particularly with the east,” Chamber of Exporters Immediate Past President Sarath de Silva said. The added value percentage of agricultural sector in Sri Lanka stands at 90 and garment and high end garments records eight and fifteen respectively.

This clearly shows the industry ability to contribute to the overall economy.

“It is another positive point that Sri Lanka is proposed to be a rice exporting economy. This is a positive step in a changing global environment with global weather calamities. But, the Quarantine Dept and the Agriculture Ministry should facilitate the private sector, without imposing undue pressure, to import of suitable glutinous, long grained paddy seeds until we multiply it ourselves so that we could replace the Basmati and the Thai fragrant rice and introduce, to the world, a new brand called Lankamathi.

Affiliated to this should be the approval of soil enhancing and organic or balanced material, to achieve higher yields, so that the Northwest and Ampara districts which are considered rice bowls of Sri Lanka, will produce rice suitable and palatable to the whole world,” Silva said.

Priority is given for self-sufficiency in food production and import substitution in green gram, ulundu, black gram, peanuts, sesame and maize, http://www.dailynews.lk/2012/01/03/bus01.aspby increasing the cess on imports. The increase of cess on red chillie and curry powder, will encourage Sri Lanka to get into local production.

indunil.hewage@gmail.com

11Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 10:40 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Savills to open in Lanka
Shirajiv Sirimane

Savills of United Kingdom one of the leading real estate enterprises in the world will open an associate office in Colombo in February. This is the first time that the company is making its presence in the SAARC region, a source from the company said.

Savills while looking at investment opportunities in Sri Lanka in real estate and the leisure sector would also extent their services to both India and Pakistan from Sri Lanka. Savills plc is a global real estate services provider listed on the London Stock Exchange.

They have an international network of more than 200 offices and associates throughout the America, the UK, Continental Europe, Asia Pacific, Africa and the Middle-East, offering a broad range of specialist advisory, management and transactional services to clients all over the world. Two overseas representatives from UK will also be working in Sri Lanka on a full time basis for this operation.

http://www.dailynews.lk/2012/01/03/bus04.asp

12Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 10:41 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Munchee wins global brand leadership award

The Award

Munchee Sri Lanka's Best Brand of Biscuits has set a new industry standard by winning top Global honour at the World Brand Congress held in Mumbai, India.

It is just a reward for the brands forecast on innovation uncompromising quality and its understanding of consumers. This is the eighteenth Award that the Munchee received in 2011.

This latest achievement by Munchee will also be an aspiration for other local brands to strive for greater heights both local and international arenas.

Munchee has been exporting to over 45 countries around the world and is in the process of opening a dedicated manufacturing facility at the Seethawaka Industrial Processing Zone to cater to its ever increasing demand in the Export Market.

http://www.dailynews.lk/2012/01/03/bus05.asp

13Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 10:42 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

RDA nets Rs 87 m from tollway
Hemanthi Guruge

The Road Development Authority has earned over Rs 87 million from the Southern Expressway since inception.

Southern Expressway Acting Director B.D.K Bandara told Daily News Business that CTB buses will be deployed on the Southern Expressway from today and private buses will be deployed later. The average daily revenue from the Southern expressway is around Rs 2.5 million and that is set to increase with the deployment of passenger transport.

Over 240,000 vehicles have entered through eight interchanges.

More than 800 breakdowns have been reported within the first month of operation. The RDA advises public to use vehicles in good condition.

http://www.dailynews.lk/2012/01/03/bus07.asp

14Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 10:43 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Continental to be upgraded
The Ceylon Continental Hotel will be upgraded to a comprehensive five star hotel and will be ready for the next winter season. The management will be investing around Rs. one billion on a complete overhaul of the hotel.

Hayleys Leisure Holdings Director Johann Wijesinghe said some of the neglected rooms too would be upgraded and the total room strength will increase from the present 189 to 229. Hayleys Leisure is expected to close the property next February and will re-open in eight months.

He said they are likely to re brand the hotel but are yet to finalize a name.

http://www.dailynews.lk/2012/01/03/bus08.asp

15Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 10:44 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Dull day in market
On a fresh ground, the Colombo bourse started the New Year operations on a lacklustre note. In the morning sessions the market displayed a fresh hope with a greenish move however the bourse depicted low level of activity in the latter part to end dormant.

ASI increased by 0.45 points (+0.007%) to end at 6,074.87 and sensitive MPI advanced by 10.76 points (+0.21%) to close at 5,239.92.

Market turnover was registered at Rs.419.5mn.

Commercial Bank Plc (Rs.56.3mn) was the top contributor to the daily turnover along with Colombo Land & Development Plc (Rs.28.6mn) and Hayleys Plc (Rs.26.2mn). Moreover Commercial Bank Plc posted a crossing of 0.5mn shares at a price of Rs.100.00.

During the day York Arcade Holdings Plc, Lankem Development Plc and Trans Asia Hotels Plc posted active levels of trading. Foreign participation stood at 10.5% of the total market activity and at the end of the day foreign investors were the net sellers with a net foreign outflow of Rs 58.0mn.

Lanka Securities Research

http://www.dailynews.lk/2012/01/03/bus09.asp

16Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 10:49 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Partnering SLTDA:

Paradise Travels to tap South Korean tourist market


Adventure tourism is very popular among tourists visiting Sri Lanka. Here, two adventure tourists enjoying a kayak ride

As the Sri Lanka government and its travel arm, the Sri Lanka Tourist Development Authority (SLTDA) has launched an aggressive marketing campaign overseas to ensure 2.6 million tourist arrivals to Sri Lanka by 2016, a new partner in the travel trade, Paradise Travels (Pvt) Ltd with its close connections with the South Korean resource market, has launched a media campaign in South Korea to bring in affluent tourists to Sri Lanka. To achieve the targets of Paradise Travels, two leading tour operators in South Korea, namely Tour Express and Qui Tours have given an undertaking to the management of Paradise Travels to lend a helping hand to this exercise.

During the last two months, three medium size Korean Groups have arrived in Sri Lanka and the management of Paradise Travels in hopeful that this number will increase significantly during the next few months, as Sri Lanka is gaining a unique position as a prime destination in South Asia with the annihilation of terrorism and the establishment of peace in every corner of the island.

The management of Paradise Travels has retained the services of U.E. Perera, a travel professional as its consultant from its very inception and Perera is hopeful that the vast outbound travel market of South Korea can be successfully tapped if the right strategies are adopted. With the economic recovery in 2010, more South Koreans have traveled abroad he said.

At the same time increased presence of low cost carriers, various ferries and related package tours have led to cheaper price products too. All these factors have enhanced outbound tourist traffic from South Korea. Stabilized exchange rate against the dollar is also one of the prime reasons for the increase, Perera noted.

Taking into consideration the profile and the promising activities of the company, the Immigration and Emigration Department has granted a residence visa for the travel coordinator of Paradise Travels (Pvt) Ltd. Kim Byoungsu. He is Director of Paradise Travels too. The Chairman and Managing Director of the company is Upul Thabrew, a prominent figure in the travel trade, who has mastered the Korean Language during his long stay in South Korea.

http://www.dailynews.lk/2012/01/03/bus10.asp

17Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 10:52 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

SCCI branches out to Embilipitiya
Sabaragamuwa Chamber of Commerce and Industry (SCCI) recently opened its first branch office and business school in Embilipitiya recording a landmark achievement of its services over 14 years to the business community in the Ratnapura District.

With the expansion of the services, the Sabaragamuwa Chamber is now able to serve the business community particularly, the small and Medium Scale Entrepreneurs operating in Embilipitiya, Godakawela, Pallebedda and Kollonna periphery areas, covering the marginal and hinterland of the district. The micro, small and medium entrepreneurs now have an opportunity to access Chamber services such as business counseling, business advocacy, entrepreneur development, trade information, technical assistance on preparation of project report and training and skill development on entrepreneurship closed to their doorstep through newly established branch office of the chamber.

The new branch office is supported and strengthens by the network of powerful entrepreneurs numbering 220 attached to the Sabaragamuwa Chamber. The members of the newly established Embilipitiya branch office have an opportunity to network with the powerful business community in the Ratnapura District for mutual benefit. The members of the Embilipitiya branch will also be benefited from participation of domestic and international trade exhibitions, domestic and foreign business familiarization tours and networking with the national level business community through the Sabaragamuwa Chamber as well. Furthermore, the business school affiliated to the branch office in Embilipitiya provides technical assistance for entrepreneurship development, skill and vocational development of the SMEs sector.

The professional knowledge on management, marketing, business English and Tamil language, basic and diploma level computer programmes, training course on beauty culture and associated self employment skill development training programmes will be conducted at the business school by experienced and trained professionals for the benefit of business community in the area. The business school is a fulfillment of long felt need of the rural area of Embilipitiya. Further information of the services offered by the Embilipitiya branch office could be obtained by contacting Sabaragamuwa Chamber Secretariat.

http://www.dailynews.lk/2012/01/03/bus11.asp

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kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Mercury opens special ACCA second batch
The growing demand from A/Level students seeking enrolment at Mercury, has compelled the Institute to create a first-time-ever second batch to accommodate students after A/Level results.

Mercury which is the country’s forerunner in ACCA education for decades has been the No 1 choice of students looking to receive the best quality education. Mercury’s newly crowned Platinum status has now made the institute even more sought-after and the automatic choice of students aspiring for the prized ACCA professional qualification. Platinum status is only conferred on tuition providers who achieve pass rates of all subjects above world pass rates in consecutive sessions. Mercury is the only Sri Lankan institute to achieve this world highest standard.

ACCA Sri Lanka Country Manager Aruni Rajakarier said, “Platinum level accreditation is the highest and most prestigious level of ACCA’s accreditation programme. To be considered for Platinum approval, tuition providers must meet the challenging performance targets that have been demonstrated to attain Gold approval and meet ACCA’s Platinum performance targets and Platinum pass-rate targets over two consecutive sets of results. This is not an easy task and is a result of the commitment Mercury has made to put in place systems and processes to monitor and continuously improve the performance of their students and consequently the performance of the institute itself. We congratulate Mercury on their achievement and look forward to working together with them to grow ACCA in Sri Lanka.”

Mercury’s second batch is loaded with high-value incentives to encourage students all the way to the top. Special incentives will be offered to high performers at A/Levels and O/Levels with scholarships up to 100% of course fee up for grabs. Additionally, Mercury provides free original UK study material worth over Rs. 20,000/- for each and every student. The creation of Mercury’s second batch keeps in line with the institute’s unique and highly successful policy of size-controlled classes which ensures maximum student/lecturer interaction leading to higher pass rates and a guarantee of student success. The values enshrined by Mercury are the criteria which paved the way for the institute to receive the coveted Platinum Tuition Provider Status which is the highest ACCA credential for tuition providers in the world and the first and only one of its’ kind in Sri Lanka.

The Institute’s high standard of success is driven by its proven panel of professional lecturers led by T P L Raj who was also a former president of the ACCA Council in Sri Lanka for several years, Shaan Jayasekera, Wazeer Ahamed, Shehan Fernando, George Anthony Fernando, Janith Kalana Gunasiri, Balachandran Prassanna, Dilshad Jiffry, M F Nazar, Anuk Jayasuriya, Thilina Ukwatta and Rikzy Easa, all renowned lecturers in their respective fields.

The teaching methods adopted by the institute is based on “doing the basics right”, which includes a structured approach in teaching and study methods geared for exam success such as, full coverage of syllabus, focusing in detail on all subject areas and teaching students to interpret questions and tackle them successfully, revision at the end of each session in the form of mini mock and full mock examinations, legible writing, time management and interactive sessions to allow students to voice their suggestions, ideas or doubts.

http://www.dailynews.lk/2012/01/03/bus12.asp

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kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

PACSS holds CSR programme
The Practicing Accountants Chartered Students' Society (PACSS) in collaboration with the Young Chartered Accountants Forum (YCAF) organized "Reach Out" - a CSR programme recently at the Sujatha Elders Home, Wakada, Panadura.

The students together with the young Chartered Accountants dedicated their time to be with the elders and spent the whole day with them. The programme began with religious rites. After enjoying the midday meal, regardless of age limitations and physical shortcomings, everyone took part in singing and dancing. The elders sang songs. Further, essential goods were donated with the purpose of uplifting the living standards of these elders to the best possible manner.

http://www.dailynews.lk/2012/01/03/bus13.asp

20Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 10:57 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

CIMA board induction tomorrow
Dirk Pereira will be elected as the Chairman of the board at the board induction to be held tomorrow at the Cinnamon Grand.

Pereira is a fellow member of the Chartered Institute of Management Accountants. He has over 15 years experience in the profession. He is a member of the Institute of Chartered Accountants of Sri Lanka and holds an MBA from the Sri Jayewardenepura University.

Pereira is currently the Chief Executive Officer of Union Assurance PLC (UA). He previously served as its General Manager, Finance and Planning and Deputy Chief Executive Officer. Prior to UA he was at Eagle Insurance and Ernst and Young.

He joined the CIMA Sri Lanka Board in 2010 and was appointed Deputy Chairman in 2011. He also served as Chairman of the Branding and Leadership Committees.

21Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 10:57 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

SLFFA seminar on ASYCUDA World
The Sri Lanka Customs will be fully implementing electronic submission of Cusdec and Manifest by February 1, 2012 by doing away with the manual system.

All importers and exporters are expected to be prepared for this requirement. Therefore, to familiarize all industry stakeholders in this new e-manifesting system, the Sri Lanka Freight Forwarders’ Association has organized a training seminar to be conducted by Sri Lanka Customs on January 12, from 8.30 a.m. to 1.30 p.m. at the Ground Floor Auditorium of the Ceylon Chamber of Commerce, Nawam Mawatha, Colombo 2.

The training seminar will address aspects such as training to submit electronic Cusdec and training to submit electronic manifest.

This training seminar is highly recommended for operations and IT staff and it is suggested that all import and export organizations make use of this opportunity to obtain training. Further details could be obtained from the SLFFA Secretariat.

http://www.dailynews.lk/2012/01/03/bus18.asp

22Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 10:58 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Tourism promotion in high spending markets needed
Ramani Kangaraarachchi

Manmohan Singh is the General Manager of Malaysian Airlines in Sri Lanka since 2009.

He believes that he brought luck to the country and proud about being able to meet his challenges in a peaceful environment. He is married and blessed with three sons. Singh was interviewed by Daily News Business for Expat Chit Chat. Excerpts of the interview.

Q: What is your educational and professional background?

I graduated from the Edith Cowan University of Western Australia with a major in public relations. My training is in communications.


Manmohan Singh.
Picture by Saliya Rupasinghe

I have been with Malaysian Airlines for three decades now in the various portfolios mainly in corporate communications and decided to try my hand in sales in 2007. I was attached to Malaysia Sales looking after sales in Ipoh and Malacca.

Q: What made you to focus on the travel industry?

I have a penchant for travelling and like to visit new places. And so I thought it would be a good idea to join an airline and what better airline than Malaysia Airlines.

Being the national carrier, it was also like doing national service as well. Actually my focus was in communications as that was my scope of study.

So I joined the Corporate Communications department and was always in the thick of things in the travel industry as we had to keep abreast with all the developments in the industry.

After working in Communications for more than 20 years, I decided that perhaps I should look at a new scope so that I could broaden my horizons.

That opportunity came in 2007 I was entrusted with looking after Sales in Ipoh and Malacca, two domestic stations that had just gone off line and our offices closed because of consolidation.

It involved interacting with the agents in these two areas and to ensure that sales targets were met.

In 2009, I was identified to fill in the Sales position in Sri Lanka and I immediately said yes, even knowing that the country was in a state of civil unrest for the last 30 years.

I could not resist the challenge!! So on May 1, 2009, I came to Sri Lanka and immediately knew that it was going to be exciting.

I got down to doing my job and before you know it, the war ended.

Q: What is your view about Sri Lanka and its people?

Sri Lanka is a beautiful country. I feel sorry that because of the unrest, the country did not have much opportunity to grow and expand like it could have. But there are so many similarities between Malaysia and Sri Lanka. We have the same equatorial climate.

So when I tell my friends in Malaysia that there are Rambutans and Durians here in Sri Lanka, they are indeed shocked!!

The people are the best part of Sri Lanka. They are very hospitable and friendly people and are always accommodating. For me, I have an added advantage because of my name.

It is the same name as the Prime Minister of India so whenever I give my business card to acquaintances, the first remark is that ..Oh you have a very special name after a special person!! So that helps to break the ice and conversations take off from there we are both at ease with each other.

Of course a lot of people think I am from India, so when I say I am from Malaysia, it’s another topic of conversation. Another plus point for Sri Lanka and it’s people is the cleanliness of the place. Generally most places are very clean and tidy.

This is a comment I get from almost all guests that I receive from overseas, especially those who have never been to Sri Lanka.

Traffic is also not as chaotic as some of the other South Asian countries. Most drivers are courteous, but the bus drivers need some help.

Also I have to mention that the Armed Forces personnel that are on duty at various points in the city and outside are exemplary and honourable. I know for a fact that the citizens feel more comfortable when they are around than when they are not.

Maybe it has something to do with the war but these men in uniform are admirable.

Q: How do you see the Sri Lankan market?

I see the Sri Lankan travel market as robust and dynamic.

It is growing in tandem with the growth rate of the country, which is a good sign. If it grows faster than what the country can take, it will give a negative effect in the long run.

The travel market is thriving as is evident by the number of full service carriers that are servicing the market.

Those here on long-term have increased frequency, because of the viability of the market. Since travel is market driven, it will do well because of its vibrancy.

Now that there is a war-free environment in Sri Lanka, a lot of Sri Lankan migrants are coming to Sri Lanka to visit friends and relatives (VFR market).

As Malaysia Airlines is strong in the Australian market, this suits as most of this VFR traffic is from Australia and New Zealand.

With the high spending capacity of the people, this will increase domestic demand for goods and services and when companies make profits, it will in turn create a robust MICE market especially for Incentive travel.

Malaysia is one of the top five destinations for MICE Travel as it has developed a number of tourism products for this market.

The capacity to the Far-East is forecast to increase with airlines planning double daily frequencies. Increasing trends in arrivals will continue into 2012 with target of one million arrivals and the VOA Fee has been reduced after industry pressure.

Robust domestic demand will also fuel various industry profits.

This trend is set to boost not only MICE travel (Incentive groups) but also an increase in Government to Government (G2G) collaboration will create more overseas employment opportunities allowing more labour traffic movements (e.g. Korea).

The VFR Market will continue to grow as a result of Positive Cross-elasticity from high percentage of students and migrants. Corporate sector and GOM travel is also due to increase in business collaboration.

High levels of private consumption will boost leisure traffic further.

Some of the key highlights for this year in terms of events and developments include the opening of the Colombo-Katunayake Highway connecting the airport and Colombo, Playing host to the ICC World T20 in September 2012 and the second Airport in Hambanthota. Malaysian Airlines will continue to be aggressive and focused in the market and aim to capitalize on all opportunities available for business growth which will be the stepping stone for it to be recognized as the preferred premium carrier from Colombo.

Q: What are your achievements and challenges you faced in Sri Lanka?

When I came to Sri Lanka, the Malaysian Airlines flight was a Airbus A330 wide-bodied aircraft plying a triangular routing of KUL-Maldives (MLE) Colombo (CMB) - KUL. This was a four times a week flight.

I am also responsible for MH operations in Maldives. The passenger load was looking healthy and after carefully analyzing the situation, we decided it was time to take our frequency to five times a week.

Then in September 2010, we decided that both stations had enough capacity to stand on its own and so I decided that the time was right to delink both the stations. So we mounted two separate flights, KUL-CMB-KUL and KUL-MLE-KUL. Since both stations were in the four hours flight range, it was decided that we would use the narrow-body B737-800 to service both stations.

Due to the successful business strategies on the team’s part, demand steadily grew and we decided in March 2011, to make our operations into Colombo and Maldives, to daily operations.

I am happy to say that the seat factor on our flights is in the healthy 80s. We are looking to expand and increase our flight frequency further this year.

Another important point to note is that, Malaysia Airlines is the only foreign carrier to have an office outside the capital. We have a branch office in Kandy and are looking to expand to other territories especially in the North and South.

The support that Malaysia Airlines has received from Hemas, our General Sales Agent (GSA) in Sri Lanka, is tremendous and they have been with us every step of the way, assisting us to achieve our goal.

Q: What are the shortcomings you have observed in the Sri Lankan tourism market?

I feel that there is not enough awareness on Sri Lanka by the Tourism Board to high spending countries like China and India.

The tourists from these countries have the capacity to spend and will definitely invigorate the economy with their spending.

The Tourism Board and other tourist related agencies should get together and develop more tourism products in the capital. I have to say that the hotel rates in Sri Lanka are expensive.

Just to give an example, recently I heard of a family of four has decided to go to Singapore and Malaysia because they can get good hotels for US$ 80-100 whereas you cannot get anything less than US$ 130-150 for a comparable hotel in Sri Lanka.

The Tourist Board must bring travel agents from various other countries to showcase Sri Lanka so that travel agents can go back to their respective countries and sell Sri Lanka to their customers.

But of course they must have enough Tourism products to sell. These Travel Agents familiarization tours can be done in collaboration with foreign carriers.

Q: What are your future plans?

I have another year of my tenure left in Sri Lanka. After that it depends where the company will send me. The travel industry is actually very vulnerable.

Travel can be disrupted on political instability, volcanic eruption, floods, terrorism, and workers strike.

These challenges are there all the time. One ceases another starts! So airlines have to be ahead of the game and planning for eventualities is the key. How fast you respond to a crisis is how big or small your losses will be.

For me right now, my priority is to make Malaysia Airlines the carrier of choice for travel out of Sri Lanka.

Malaysia Airlines is an Award Winning Airline and we have won numerous awards for service quality mainly inflight service.

Our cabin crew has won the SKYTRAX World’s Best Cabin Staff award for 2001, 2004, 2007 and 2009.

That is a total of six times over eight years. We are also a Five Star Airline for the last five consecutive years.

There are only six airlines in the world who have this award bestowed on them.

http://www.dailynews.lk/2012/01/03/bus20.asp

23Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 10:59 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Red Bull combats infringers in Commercial Court
The Commercial High Court of Colombo has issued Enjoining Orders and Interim Injunction Notices against Mathurata Agro Impex.

In an infringement action initiated through its lawyers, Sudath Perera Associates, Red Bull pleaded to the Court that as the registered owner of the trademarks “Red Bull”, “Kratingdaeng” and the “Double Bull Device”, Red Bull is entitled to stop Mathurata from importing, distributing, marketing and selling the infringing “Kratingdaeng Red Bull” product that it has been illegally importing from sources in Thailand and Vietnam.

Such acts amount to trademark infringement and acts of unfair competition under the Intellectual Property Act No. 36 of 2003. Sales of the world famous Red Bull Energy Drink have grown considerably since the drink was first launched in 1987 climbing from just over 1 million unit sales in 1987 to over 4 billion cans worldwide in 2011.

Based on these figures, the Red Bull Energy Drink has become the unchallenged market leader for energy drinks globally and in Sri Lanka.

The authorized importer and distributor of the Red Bull Energy Drink product in Sri Lanka is Stassen Exports Pvt Ltd.

Red Bull expends an enormous amount on marketing, advertising and promotional activities and on sponsoring athletes and events particularly with regards to extreme sports such as Formula One, Motorcycle Racing, and the Red Bull X-Fighters World Tour.

Such global events attract very large audiences around the world via various media including television and online coverage and create tremendous brand value and reputation.

The acts of Mathurata are likely to cause damage to the Red Bull brand and dilute the goodwill and reputation associated with the Red Bull trademarks.

It was argued on behalf of Red Bull that due to the tremendous goodwill and reputation and unmatched brand value associated with the Red Bull trademarks, the “Kratingdaeng Red Bull” product imported by Mathurata would be likely to mislead the public and lead the average consumer to mistakenly believe that both the “Kratingdaeng Red Bull” product and the Red Bull Energy Drink product emanate from the same source.

The aforesaid acts carried out by Mathurata were found by the Court to be contrary to honest practices and constitute acts of unfair competition within the meaning of Section 160 of the Intellectual Property Act.

Red Bull’s case was supported by the President’s Counsel, Romesh De Silva, together with Sugath Caldera and Manoj Bandara, as instructed by Sudath Perera Associates.

Commercial High Court Judge Gamini Amarasekera issued Enjoining Orders against Mathurata for the infringement of Red Bull’s trademarks and unfair competition.

http://www.dailynews.lk/2012/01/03/bus21.asp

24Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 11:00 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Frank words on tea from Merrill J. Fernando :

Dilmah invests Rs 10b to promote Ceylon tea
MJF Group Chairman Merrill J Fernando owners of the world renowned, single origin pure Ceylon tea brand Dilmah, spoke about prospects for Ceylon tea.

Fernando commented that although there had been a slowdown due to recession and turmoil globally, he expects demand and prices to grow in 2012.

He was optimistic that the proposed private sector led $10 million Ceylon tea global promotion campaign, if effectively implemented, will boost demand for Ceylon tea by recreating awareness of the quality image Ceylon tea once enjoyed. The campaign will also target unscrupulous packers overseas who pass other teas off as “Ceylon tea” and damage its image and impact demand.

Fernando said that the Tea Board has not advertised Ceylon tea for the last decade or more. Dilmah, he said has spent Rs. 10 billion during this period to promote Ceylon tea and this investment benefits all exporters who should ideally have followed a similar premium strategy. Most chose to ride on the awareness Dilmah re-created but sell at low cost. It is this “sell cheaper” strategy that has led to the current predicament where the country has few genuinely value-added tea brands and a focus on trading as opposed to marketing and brand building.

If the national average export price matches Dilmah’s, Sri Lanka’s earnings from tea would grow from $1.5 billion annually to $3 billion. There in, Fernando said lies the best and logical opportunity to grow the industry.


Fernando with his sons

Fernando stressed the need for investment in replanting tea fields to bring costs down and improve quality. Past high interest rates and high labour costs have deterred replanting amongst companies and smallholders alike. For this, he said, it is critical that the government offers a long- term funding package such as in India, bearing in mind the socio-economic importance of the sector and the inability to fund such a long-term programme with internal funds or borrowing at commercial rates. He also stressed the need to remove present obstacles to commercial forestry.

To support increased demand for Dilmah tea, the group has planned significant investment in tea packaging machinery and facilitates at its Peliyagoda facility. Merrill J. Fernando’s Dilmah Tea is unique in its unwavering commitment to quality Ceylon Tea. In its efforts at educating a new generation of tea drinkers on quality and tradition in tea, Dilmah pioneered the Dilmah School of Tea, a Colombo based initiative that has affiliations in Lyon (France), Prague and shortly also Warsaw.

Fernando believes that the logical way to market a high cost, high quality product like Ceylon tea is to position it as a luxury item and not price-led trading and supplying under foreign traders; brand names which, sooner or later, become major competitors of Pure Ceylon tea, as history would reveal quite clearly.

It is this inappropriate strategy for Ceylon tea, according to Fernando, which has led to some exporters lobbying for imports of cheaper tea to Sri Lanka, to service foreign owned brands and local brands that trade on price. This is in essence a value reduction strategy and not value added.


Merrill J. Fernando

Foreign brands packed here create very unfair competition for Ceylon tea in the longer-term. They exploit the positive perception of Ceylon tea among consumers long after they cease using Ceylon tea. These brands build their quality image by initially relying on Ceylon tea but move to multi origin blends eventually to save cost. It is usually at this point that local packers lobby to allow cheap tea imports, citing the risk of losing of yet another “important foreign brand” who wants to leave due to regulatory hurdles. These regulations have been put in place to protect the local tea industry. Most traders disregard the impact on Ceylon tea producers and the 12.5% of the population that survive on it.

If Sri Lankan exporters do not champion and market Ceylon tea as a premium product, who would? Emulating the multi-origin, cheap tea strategies of highly efficient, volume driven global brands is disastrous and out of alignment with the unique, artisanal, high cost tea that we grow. They must now realign their strategy with the overall interests of the tea industry and work together to regain past glories of Ceylon tea.

When the French wine industry was faced with the growing popularity of cheaper new world wines, did they lobby to allow cheap foreign grapes to blend? Asks Fernando No, instead they refocused on premium strategy and promoted in a less tradition-bound, modern style to new affluent consumers,whilst protecting the mystique and consumer perception of their wines.

Ceylon tea lost a series of markets from the UK and traditional “empire” markets, then Egypt, Pakistan, now Russia and the CIS, largely as Sri Lanka supplied bulk tea or foreign brands and are unable to control the contents of a pack of tea. The country now left with a handful of markets, which will also be lost in time. Clearly, local exporters have been unable to do justice to the growers of Ceylon tea.

Dubai can choose to be a tea hub, as they grow no tea, just as Sri Lanka chose to be an apparel hub, allowing duty free imports of buttons to fabric to hangers since the country did not have existing producers. Even then, apparel manufacturers who took a lowest cost approach have failed and those who adopted a specialized, premium positioning have thrived. But even they have had to open plants in other lower cost countries. Indeed those tea exporters wanting to pursue a multi-origin, low cost strategy without hanging on the coat-tails of Ceylon tea, the only point of difference available to them, should be encouraged to set up plants in Dubai.

Investment on machinery, often second hand, is moderate and employment low in automated plants. The “loss” to Sri Lanka from a setting up a plant overseas is negligible in comparison to the protection of the image of Ceylon tea and the improved focus on the correct, premium strategy for what the country grows. Exporters should first prove with overseas plants that selling cheap could be successful before jeopardizing Ceylon tea producers. In Fernando’s view there is someone always cheaper – multinationals do that best. Once there is consumer awareness that Sri Lanka exports not only Ceylon tea but also that of many origins, that suspicion of genuineness and “what’s in my pack of tea” cannot be reversed if and when the experiment fails.

In tea Sri Lanka has a world-class product. Exporters, whose investment in assets and people is dwarfed by that of the tea-growing sector, need to align their strategies with the national interest. This is more practical than to ask the growers to align with the exporters interest, said Fernando. Concluding, Fernando said that Dilmah was established on a unique philosophy that envisages business as a matter of human service. Recalling the lessons he learned from his parents, Merrill J. Fernando established his business on family values, underlined by integrity, caring and sharing. The MJF Charitable Foundation was established to utilize earnings from the sale of Dilmah Tea around the world to benefit the marginalized and underprivileged. Dilmah Conservation subsequently extended that principle to include the environment. Both organizations fulfill the pledge that Fernando made as a young man in his twenties, to make business a matter of human service.

http://www.dailynews.lk/2012/01/03/bus22.asp

25Sri Lanka Newspapers - 03/01/2012 Empty Re: Sri Lanka Newspapers - 03/01/2012 Tue Jan 03, 2012 11:02 am

kaka


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Consumer protection and trade facilitation
Didul Kodagoda Chairman, Sri Lanka Accreditation Board



Didul Kodagoda

“Conformity assessment” assured through third party accreditation is one of the most powerful tools of ensuring “consumer protection”,though the importance of the link between the two is unknown to the public.

“Accredited Conformity Assessment” is the globally used term to describe accreditation and certification processes.

It is a process which guarantees that products, processes, systems or people meet specified requirements. These requirements may be specified in a standard or in a regulation or in a contract.

Accreditation at large provides assurance to the consumers that assessing the conformity of the products they buy to the requirements specified in the standards or stipulated by the relevant regulatory authorities in the country, is carried out by technically competent personnel in an impartial manner with the guarantee of integrity of their actions. Accreditation is implemented on a voluntary basis all over the world.

However, many governments have now realized the importance of accreditation and its impact on consumer protection and trade facilitation resulting in the incorporation of accreditation into existing regulations, thereby making it mandatory in an indirect manner.

The Sri Lanka Accreditation Board for Conformity Assessment (SLAB), with the blessings of the Technology and Research Ministry has initiated discussions with controlling authorities of two regulatory bodies whose regulations have a critical impact on the health and safety of the general public and the environment. They are the Ministry of Health and Motor Traffic Department.

Accreditation of Medical Testing Laboratories
Diagnosis of deceases and subsequent treatment of patients depend on the information provided by Medical Testing Laboratories in their test reports.

Hence the accuracy and reliability of the test results are extremely important. Just as a manufacturing organization has to take necessary action to control the quality of their products a testing laboratory too need to implement certain quality assurance programmes in order to ensure the accuracy and reliability of test results.

“Quality” is never an accident. To achieve quality you need to plan, implement the plans, monitor the outcome and take action if there is any deviation from the plans.

This is applicable for laboratories too. Through accreditation, laboratories will be able to develop their quality management systems to achieve accurate and reliable test results.

More than 400 Private Medical Laboratories have been registered at the Health Ministry todate. The Private Medical Institution (Registration)act under which this registration scheme operates, is being revised and SLAB has made its proposals for incorporating accreditation into this revision.

Also medical professional bodies have submitted proposals to the Health Ministry for accrediting Laboratories operating in the Government Hospitals.

The laboratories operating under Colombo, Ragama, Ratnapura, Kandy and Galle Government hospitals along with the Medical Research Institute and the Blood Bank have been identified by the Ministry to work towards accreditation.

SLAB has already conducted awareness programmes for the employees of the five Government hospital laboratories.

This accreditation programme for medical laboratories both in the Government and the Private sectors would certainly improve the health care system in the country.

Accreditation of Vehicle Emission Testing (VET) Centres
Under the Motor Traffic Amendment Act, no revenue licence is issued to motor vehicles by the licencing authority unless an emission certificate is produced. Regulations made under the Environment Act require the owner of the motor vehicle to obtain this certificate from an accredited garage authorized by Commissioner of Motor Traffic. SLAB has established a Technical Advisory Committee to develop specific criteria for vehicle emission inspection and the draft document is being discussed now.

It is expected to be finalized soon. We are confident that this scheme could be initiated during the first half of 2012. It would ultimately provide control measures to prevent or mitigate environmental pollution due to vehicle emissions.

Trade Facilitation
When goods and services are exchanged across economies it becomes necessary to prove their quality to the intended customers. This is achieved through ?conformity assessment?. When the relevant conformity assessment process is accredited it will facilitate the exchange as no further assessment would be necessary when the goods arrive in the country that imported the items. The Sri Lankan exporter will eliminate enormous costs if he had to submit a report from a foreign accredited laboratory.

The Sri Lanka Accreditation Board is one of the apex bodies in the National Quality Infrastructure which is the institutional framework necessary to regularize and harmonize all the relevant activities required to implement conformity assessment with confidence.

The other institutions are:

* National Standards body for preparing and adapting national standards and adapting international standard wherever necessary

* National Metrology Institute for establishing and maintaining measurement standards traceable to international standards

* Controlling authorities of regulations through accredited conformity assessment process to ensure consumer health and safety.

The above three types of institutions have been in operation in Sri Lanka for a considerable period of time. With the establishment of the Sri Lanka Accreditation Board by an act of Parliament (Act no. 32 of 2005) the national quality infrastructure has been strengthened and through accreditation an important step will be taken in facilitating acceptance and recognition of Sri Lankan goods and services both domestically and internationally.

Furthermore accredited test data would benefit the research and development activity as it ensures the accuracy and the reliability of the data used for R & D.

http://www.dailynews.lk/2012/01/03/bus23.asp

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