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Sinhala, Tamil domains from December 7
http://www.sundaytimes.lk/091129/FinancialTimes/ft10.html
From December 7 onwards, people will be able to register domain names with the “.lanka” (in Sinhala) and the “.illange” (in Tamil) suffixes as opposed to the current scenario where they can only register domain names under the almost 20 years old “.lk” domain, the only country designation currently on offer, according to Prof. Gihan Dias, the head of LK Domain Registry, the organisation charged with offering these Sri Lanka specific domains.
This was revealed at a recent, inaugural edition of “Most Favourite Sri Lanka Website” awards, a competition organised by LK Domain Registry with the objective of promoting locally based websites and ultimately raising the number of LK Domain Registry subscribers.
Winners in the eight categories making up these inaugural awards included www.elakiri.lk and www.music.lk (joint winners in the English category), www.worldpeople.lk (Sinhala category), www.parliament.lk (Tamil and Government categories), www.odel.lk (e-Commerce and Best Design & Content categories), www.films.lk (Entertainment category), and Affno (Best Developer). Other websites showcased over the course of the evening included www.airforce.lk, www.news.lk, www.keellssuper.lk, www.singersl.lk, www.derana.lk, www.hitzbox.lk, www.lankapuvath.lk/sinhala, www.myblog.lk, www.nimnaya.lk, www.adaderana.lk, www.enews.lk and www.railwaymuseum.lk. A full list of websites recognised at the awards is available online at www.bestweb.lk.
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Toilet paper takes centre stage at laxative launch
http://www.sundaytimes.lk/091129/FinancialTimes/ft20.html
A new laxative launched in the local market has taken a very different route to garner customer attention – sculptures made from toilet paper, exhibited at Nugegoda’s Art way Gallery.
“GoEzy” laxatives, a product of Mega LifeSciences, tasked “young, up-and-coming artists” to interpret the theme “struggle” in sculpture… The catch: Sculptures could only be made using toilet paper. The resulting works of art, some of which took as much as three months to finish, have now been put on display at the Art Way Gallery.
According to a statement by Phoenix Ogilvy, the local advertising agency credited with the idea for the toilet paper sculptures; one such piece by young artist Douglas Paul, titled “Grimace”, shows a “suffering man’s head, elegantly crafted with tight little knots of loo paper”. Mr. Paul was also quoted as saying “I was thrilled to be asked to be a part of this unique exhibition. It’s the first time I had done anything like this. I am also grateful for the opportunity, it was an interesting challenge”.
Further, again according to the statement, the exhibition, titled “The Art of Uncorking”, was greeted with “much acclaim” by the select few invited to its opening night. Meanwhile, it will continue at Art Way Gallery after which the sculptures will be “displayed at selected outlets of leading supermarkets in Colombo”.
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‘Intense’ e-Asia promotion for Kandy, Kurunegala and Galle
http://www.sundaytimes.lk/091129/FinancialTimes/ft30.html
The “e-Asia 2009 mobile bus” was launched on Wednesday to mark the seven-day countdown for this international ICT conference which is set to begin on December 2 at Colombo’s BMICH. Announced to be setting off for Kandy, Kurunegala and Galle, the bus comprised onboard computer facilities as well as other materials relevant to forming a “part of an intense promotional campaign” intended to get the word out about e-Asia to these three urban city centres and “all areas along the way” which encompass the bus’s week-long travels.
Also, according to the Chief Operating Officer of Sri Lanka’s Information and Communication Technology Agency, Reshan Dewapura, e-Asia will feature 60 corporations exhibiting as well as 200 speakers, 120 of which represent 25 countries and 80 locals. Additionally, initial estimates indicate that, out of the 1,000 delegates expected at the e-Asia conference, as many as 400 may be foreign.
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FTA with Singapore ‘good’ for both
http://www.sundaytimes.lk/091122/FinancialTimes/ft04.html
FTA with Singapore ‘good’ for both
By Jagdish Hathiramani
A Free Trade Agreement (FTA) with Singapore would be beneficial because it would result in more opportunities with Sri Lanka, currently attempting to develop itself as a hub to India and a financial hub; particularly due to the country’s existing respective FTAs with India and with Pakistan, a top Singapore businessman has said.
Furthermore this would be useful because of Singapore’s status as a regional hub through which Sri Lankan companies could better access ASEAN, especially with many of the region’s companies now being headquartered in Singapore, according to Singapore Indian Chamber of Commerce & Industry (SICCI) Chairman, Vijay Iyengar, who spoke to the Sunday Times on Wednesday on the sidelines of the inaugural official “Singapore Business Mission to Sri Lanka”, which he headed. Comprising 18 top Singaporean executives representing a diverse range of business interests, from tourism to timber to agriculture, retail, veterinary products, financial, legal, marine, shipping, trading and apparels; and beginning on November 16, this week long mission encompassed briefings by the country’s Central Bank, the Board of Investment, the National Chambers of Commerce of Sri Lanka and the Ceylon Chamber of Commerce based in Colombo as well as visits to Kandy and Dambulla for discussions with local chambers of commerce.
Mr. Iyengar added that SICCI’s mission, which was initially prompted by good reports from an earlier visit by Singapore’s Foreign Minister, was also in response to Sri Lanka’s increasing stability as well as due to the process of national reconciliation being underway. These developments singled out Sri Lanka from a number of emerging markets which Singaporean companies had earmarked for their investment potential. He further indicated that this was helped along by the country’s labour position, especially skilled labour; government priorities on investments in tourism, agriculture, fisheries, manufacturing, etc; and, “particularly”, the India and Pakistan FTA’s.
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Nokia recalls phone chargers due to electric shock fears
http://www.sundaytimes.lk/091115/FinancialTimes/ft38.html
Finland-based mobile handset manufacturer, Nokia, on Monday instituted a global product recall for three of its Nokia branded phone chargers models which are made by BYD Electronics of China, reportedly a key supplier for Nokia. Although said to be a “proactive, precautionary measure”, Nokia’s “exchange programme” has significantly damaged the global reputation of a company reputed to be “the world’s largest mobile phone maker with an estimated 38 % global market share of all mobile devices”, according to UK’s Telegraph newspaper.
According to a statement by Nokia issued locally; “During a routine quality control process, Nokia identified a potential product quality issue with certain chargers manufactured by one of its third-party suppliers. The plastic covers of the affected chargers could come loose and separate, exposing the charger’s internal components and potentially posing an electrical shock hazard if certain internal components are touched while the charger is plugged into a live socket. This is a precautionary announcement. Nokia is not aware of any incidents or injuries related to these chargers.
Only a limited number of chargers of certain model types manufactured by a single third-party supplier during a specific time period are within the scope of the exchange program. They are the AC-3E and AC-3U models, manufactured between June 15, 2009 and August 9, 2009; and the AC-4U model, manufactured between April 13, 2009 and October 25, 2009. However, Nokia chargers purchased through authorised distributors in Sri Lanka are not impacted”.
The terms of the product recall further indicate a free replacement for the charger models outlined above, a cost reportedly borne by BYD. Further noteworthy is that India’s Business Standard and Economic Times newspapers have reported that the recall will affect phone chargers for the Nokia N7210 model sold in that country.
Additionally, the Sunday Times FT’s queries to Nokia about the number of Nokia chargers available in the local market and the number of these chargers manufactured by BYD were not satisfactorily answered. Responding, Moutushi Kabir, Communications Manager of Nokia EA Limited (the Bangladesh-based unit that overseas multiple South Asian countries, including Sri Lanka), indicated that the number of Nokia chargers in total in Sri Lanka could not be disclosed as this was “commercially sensitive information”.
Also, regarding the number of chargers manufactured by BYD which are available locally, the response was that “Nokia follows a multi supplier sourcing policy and we cannot disclose the number of chargers manufactured by a particular supplier”. Mr. Kabir did however state that “[globally] approximately 14 Million chargers are within the scope of this exchange programme”.
When asked what steps were taken to notify potentially affected consumers, Mr. Kabir indicated that a website (http://chargerexchange.nokia.com) had been set up with information pertaining to the “exchange programme” and how affected chargers could be identified. He also stated that “Nokia has issued a global press release and each market has also issued a press release with locally relevant information in both English and vernacular languages.
Depending on the size of the impact in each market, appropriate communications channels are being utilised”. In addition, Care Centres and Distribution and Retail Partners had been briefed, according to Mr. Kabir, thus allowing them to be “equipped to handle all consumer queries and assist consumers if they fall under the exchange programme”. Concerned customers have also been instructed to contact “any of the four Nokia Care Centres, located in No. 230/1, Galle Road, Colombo 04; No. 36, Pavilion Bldg, Gamini Mawatha, Galle; No. 91, D.S. Senanayaka Veediya, Kandy and No. 21, 1st Floor, New Shopping Complex, Kurunegala;
Meanwhile, according to a Monday report in UK’s Times newspaper, this was “the second recall in as many years for Nokia. In 2007, the company replaced 46 million batteries after components, supplied by Matsushita, the Japanese company, were found to overheat… Today’s recall is one of the biggest in history”.
In addition, Reuters reported that “defective chargers were not sold in Argentina, Australia, Brazil, Britain, Chile, China and New Zealand” while the Telegraph had also reported that affected chargers were sold in North and South America and Europe.
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For IT industry growth, education barriers must be overcome
http://www.sundaytimes.lk/091115/FinancialTimes/ft45.html
For IT industry growth, education barriers must be overcome
By Jagdish Hathiramani
While an Information and Communication Technology Agency study indicates that 7,500 IT graduates are required annually to achieve the IT-BPO industry’s objective of becoming Sri Lanka’s second largest export earner, the current output of IT graduates from both institutions, private and public, may prove inadequate to meet these targets.
However, the targets could be achieved if barriers pertaining to availability, accessibility and affordability of IT education are surmounted, according to Sri Lanka Institute of Information Technology (SLIIT) Founder, President and Chief Executive, Prof. Lalith Gamage.
In an interview with the Sunday Times FT, Prof. Gamage suggested that the biggest hurdle to achieving the desired output levels of IT graduates was affordability. Indicating that even SLIIT’s charging of a basic, ‘cost recovery’ fee of Rs. 500,000 for a four year degree programme was still not cost effective enough for many prospective students, he called upon the industry to sponsor more students to facilitate increased enrollment in IT fields so that the 7,500 IT graduates per year requirement could be achieved. In 2009, SLIIT graduated 700 IT students and expects this number to go up to 1,400 by 2012, while, in 2008, the school accepted close to 2,000 students.
Further, the institute currently maintains a student enrollment of 4,500 as well as 100 academic staff. In addition, of the over 10,000 IT professionals locally, SLIIT currently produces one-third and has plans to eventually increase this proportion to one-half of all local IT professionals. For SLIIT’s part, Prof. Gamage indicated that, with the institute’s 10-year vision to become a top university (not just IT) in the region and by attracting foreign students who could pay fees beyond the ‘cost recovery’ levels of local students, there would eventually be the possibility that extra amounts earned by SLIIT be used to create a scholarship programme and enroll more students.
Further, commenting on SLIIT’s tradition of research and its importance, Prof. Gamage suggested that, as standards of living increased, sectors such as IT-BPO could not be maintained indefinitely as their focus was on finding cheaper resources and, as such, the future for these and other fields were in creating Intellectual Property, which was developed through research. He further predicted a greater shift towards this area in the next 10 years.
Referring to SLIIT’s Concept Nursery programme, where the school partners with a venture capital firm and two IT companies to mentor budding business opportunities amongst students, Prof. Gamage indicated that this was an area entered into to facilitate job creation and commercialise research. He further noted that Concept Nursery had so far resulted in 30 companies; out of which 12 proved successful, ultimately employing 600 people.
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Exports, more distribution next for locally made Revlon
http://www.sundaytimes.lk/091108/FinancialTimes/ft02.html
Exports, more distribution next for locally made Revlon
By Jagdish Hathiramani
An international cosmetics range which started domestic manufacturing just one year ago has already begun exporting locally made products to Bangladesh and Pakistan.
In addition, this premium colour cosmetics brand, Revlon, along with its half-priced mass-market version, Streetwear, also currently claims a presence in about 800 outlets island-wide, 60 of which are dedicated, merchandised counters, and because of the company’s new local manufacturing facility.
With an estimated turnover capacity of US$ 10 million, it plans to further raise this number to 100 counters by year’s end and 300 counters in two years. Modi Revlon Chairman, President and Chief Executive, Umesh Modi, who is tasked with the success of Revlon’s business across South Asia, made these comments in an interview this week with the Sunday Times FT during a visit to Colombo.
While his company’s hopes for Sri Lanka apparently rely on Euromonitor 2009 data indicating Sri Lanka’s colour cosmetics market’s worth at US$ 12.1 million in 2008 (or 8% of a larger 2008 Cosmetics & Toiletries market valued at US$ 154 million with a growth expectation of 10%), Mr. Modi’s own experience seems to suggest that Sri Lanka’s potential is better than that of India’s in the 1990’s, a boom period for the country, specially since Sri Lanka is further aided by higher levels of per capita income, education, etc.
Further, according to Mr. Modi, while most colour cosmetics brands available locally are still imported, Revlon took a decision, more than a year ago, to set up a manufacturing facility in Sri Lanka even with the local chemical industry being inadequate to support all production needs. Indicating that, while most chemical raw materials for production had to be imported, packaging sourced locally was preferred, Mr. Modi also promises that Revlon in Sri Lanka is still at a very early stage, having just started a year ago; with all efforts currently expended on typical startup activities, such as new hiring (the company currently has a 300 staff strength), putting together the right sales team and building an even stronger distribution network, all geared towards future growth.
Meanwhile, according Marketing Director Deepak Bhandari, Sri Lanka was a good opportunity for Revlon, which is the market leader in premium colour cosmetics in India with a 74% market share of a sector that accounts for 6% of an estimated US$200 million overall cosmetics and toiletries industry as well as a leader in the mass/premium cosmetics space with a combined 32% share for both Revlon and its budget Streetwear brand.
This stems from the fact that no brands appear to be as yet “entrenched” in the local market, thus allowing Revlon to try for a “first mover advantage”.
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Unilever: The past 125 years and the next 15
http://www.sundaytimes.lk/091108/FinancialTimes/ft21.html
Unilever: The past 125 years and the next 15
By Jagdish Hathiramani
While most Sri Lankans know of Sunlight washing powder, not all may be familiar with Unilever Sri Lanka, the local arm of a vast international company vested with the care of this and many other of the nation’s most popular products.
From Sunlight to Signal toothpaste, to Lux and Sunsilk toiletries and more than 20 other brands, “research suggests that 99% of Sri Lankan families use at least one of our brands at least once a year”, according to the company’s Chairman, Amal Cabraal. Considering their products to be “everyday brands”, Mr. Cabraal goes on to reveal that Unilever is a Rs. 30 billion annual turnover company, with 95% of turnover being the result of products manufactured locally, which has direct employment of 1,155 and indirect employment of more than 10,000 comprising suppliers, partners and others.
Today, on the verge of relocating from its historic, 70-year old manufacturing facility at Grandpass in Colombo to a Board of Investment zone in Horana, Unilever Sri Lanka has begun a two-year programme to centralise much of its production while at the same time expand and update its existing capacity to the tune of Rs. 4 billion. However, this transition into the future does not come without dredging up the company’s distinguished past. With some parts of the Grandpass factory sure to be taken along, the legacy of Unilever and even its predecessor, Lever Brothers, will continue to live true at the company’s new Horana facility. As even Mr. Cabraal contends, with a nod to the past, “we are only dominant because of our forefathers believed [in] building the relationship between brands and consumers”.
Roots: Sunlight 125 years old
From roots set deep in colonial times, previous incarnation Lever Brothers’ flagship product Sunlight recently celebrated 125 years in the local market, Unilever’s business model shifted in the 1930’s when quantities sold made it more cost efficient to manufacture “on shore” rather than import. Since that time Unilever’s turnover and number of offerings has grown steadily, Lux and Lifebuoy were added in the 1940’s and Signal toothpaste in the 1950’s. However, it was during the closed economy of the 1970’s that the company faced its “most difficult time,” says Mr. Cabraal. Having joined Unilever only in the 1980’s, Mr. Cabraal’s understanding of that period stems from conversations he had with one of his predecessors, former Unilever Chairman Stanley Jayawardena, who had repeatedly asserted that the company had shown its resiliency despite tough import restrictions which forced many other multinationals to exit local shores.
While being forced to withdraw some brands such as Lux, because of quality issues; many of Unilever’s stalwarts such as Sunlight, Lifebuoy and Rinzo still remained in the local market; while brands which were withdrawn were often replaced by newly created alternatives such as Reward soap (to cater to Lux consumers).
In addition, again according to Mr. Cabraal, this was a time of unique innovation, made necessary at the time due to lack of raw materials; for example, selling toothpaste in paper wrapping and washing powder by the bag. Accordingly, it was a time when growth was severely restricted and profitability was near zero, but it was also when a lot of “local innovation happened”, a time which prompted local management to utilise their “creative juices” to get by virtually everyday, says to Mr. Cabraal.
Struggle in the 1970s
Adding to Mr. Cabraal’s recollections are those of Unilever’s current Industrial Relations Manager, B.G. Somatilaka, who joined the company as an Engineering Supervisor in 1975. He noted that the order of the day for staff during the closed economy (in 1970-77) was risk-taking. For example, because spare parts could not be imported, parts had to be manufactured locally, which was no easy task. And, if unfixable, the manually operated machines of the time which were imported many years prior to this had to even be replaced by local machines of inferior quality, no matter the resulting cost or inconvenience.
The same situation also applied to perfumes which were frequently unavailable, so much so that a perfume manufacturing facility had to be set up and even included plants being grown from which scents could be harvested.
He also went on to add that during this period the factory was visited by Unilever staff from Bangladesh and elsewhere, all eager to learn the measures which helped the local operation survive such a tough economy; a clear indication of the high esteem in which the Sri Lankan operation was held even back then.
In due course, the setbacks of the 1970’s were eclipsed by the company’s “vibrant” resurgence in the 1980’s, a period which ultimately resulted in the company reintroducing many brands such as Lux in 1982. Growth has more or less continued unabated since then and today has culminated in what Mr. Cabraal refers to as “gradually growing demand” which has led to Unilever’s current record of eight consecutive years of double digit growth, and a doubling of its business between 2001 and 2005 and again between 2006 to 2010.
With its overarching plan to grow into a Rs. 50 billion turnover company by 2015, Unilever’s main objective continues to be to gradual growth in existing categories according to Mr. Cabraal. Because consumption patterns in this segment are fairly steady, no big spikes in demand can be expected: For example, five years ago, the cosmetics business was “nascent” but today that market is growing fast.
The same situation applies to Unilever’s supermarket trade and products such as deodorants, hand wash, liquid soap, etc, all new promising avenues pegged as future growth areas for the company. In the meantime, Unilever’s new site in Horana allows the company a setting where it can plan its next 15 years of growth and, at the same time, be more environmentally friendly in its production.
Future
And what of his company’s plans for the North and East? According to Mr. Cabraal, in the North, “trade infrastructure has only existed in pockets”. He adds that Unilever is currently working with the government to develop a retail network and thus facilitate the trade channels essential for his and other consumer-oriented businesses. Meanwhile, because the East already has some degree of retail infrastructure, the company continues to experience “good growth” here. He adds that, in the past, during the best of times, the North and East have accounted for 10% of the company’s sales and, at its most difficult, just 5%.
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Subsidised fees on offer for public sector, students at e-Asia
http://www.sundaytimes.lk/091108/FinancialTimes/ft11.html
The forthcoming e-Asia 2009, to be held in Sri Lanka for the first time, is currently offering subsidized rates for public sector and student delegates who register prior to the conference’s starting date of December 2, according to Sri Lanka’s Information and Communication Technology Agency (ICTA).
Public sector personnel and students can now register for a discounted rate of Rs. 15,000 while private sector and international delegates are being charged Rs. 17,500 and US$ 250, respectively.
More information about the e-Asia 2009 conference and exhibition is available at www.e-asia.org. With ultimate expectations of about 30,000 visitors over its entire three-day period, e-Asia 2009, held at the BMICH, is also expected to host representatives from 24 countries presenting “more than 200 papers from all over the world relating to new models in the information and communication technology sector”, according to ICTA Chairman and Senior Advisor to the President, Prof. P.W. Epasinghe.
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Exports from local ICTs may reach billion dollars as early as 2015
http://www.sundaytimes.lk/090531/FinancialTimes/ft318.html
Exports from local ICTs may reach billion dollars as early as 2015
By Jagish Hathiramani
A study recently released by the Export Development Board (EDB) – ICT Advisory Committee indicates that ICT in Sri Lanka has the potential to export over a billion dollars worth of products and services in five to seven years. It further says that, as of 2007, the industry’s exports were valued at 213 million dollars, with an annual growth of 28% for IT (Software) while the industry’s other major component, ITES (BPO’s), grew at a more sluggish 13%. Considering all factors, the study indicates the industry can potentially grow by 23%, a forecast confirmed by Mano Sekaram, Chairman of the EDB’s ICT Advisory Committee, who noted that since the report was commissioned the industry has in fact seen approximately 20% growth before being affected by the economic downturn.
Carried out between April 2008 and October 2008 across a pool of 178 companies making up the IT/ITES industry, this study also indicates that the industry is the fifth largest exporter in Sri Lanka, and it has achieved this status in just 15 years. Also, it employs 13,000 IT/ITES personnel, a number which could go as high as 70,000 in seven years. Meanwhile, the industry also features at least 100% value addition between gross and net amounts, while, in terms of Return on Capital Employed, the industry proves to be the leader out of all industries.
Additionally, key findings of the survey revealed that there are 90 small companies, 36 medium sized companies and 11 large companies in the IT industry. The largest contributors to revenue were the large companies with 48 % of the total industry revenue followed by 36 % by the medium sized companies. ITES industry consists of 22 small companies, five medium sized companies and seven companies. Similar to the IT industry, the largest contributor to revenue with 75 % were the largest within companies.
Referring to what the IT/ITES industry can expect during an economic downturn, Mr. Sekaram suggests that initially, out of fear, all IT expenses by client organisations will be cut by 20% for at least three months as companies adopt a watchful stance and stay away from big capital outlays.
Following this there will be three categories of clients, those that will fail, those who survive (breakeven) and those that thrive. He said that even after the survivors and those that thrive weather the immediate storm, they will still be unwilling to spend on nonessentials. As such, many IT/ITES companies offering unproven and/or nonessential technologies will have to wait out the current climate or fall by the wayside. A glimmer of hope for ITES companies is Mr. Sekaram’s prediction that this sector will start growing again by the end of this year as job cuts around the world by companies will result in a trend towards outsourcing to maintain business operations.
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Consolidation in Sri Lankan banking sector overdue
http://www.sundaytimes.lk/090607/FinancialTimes/ft307.html
“Sri Lanka is over banked… A round of consolidation is overdue,” says Chief Executive Officer of Singapore-based Financial Insights, Cyrus Daruwala. He was keynote speaker at the inaugural Hitachi Data Systems Financial Services Industry Summit held in Colombo recently for senior executives of financial services industries from around the ASEAN region.
Referring to the global economic downturn, he noted that the “worst is behind us”, further indicating that countries like Vietnam, China, India, Thailand and Indonesia, which encompassed half the world’s population, were already showing signs of a turn around. He added that even though sectors like banking, food and healthcare had not shrunk, people were still being cautious.
Meanwhile, the message from Hitachi Data Systems ASEAN Vice President & General Manager, Ravi Rajendran, was that potential customers who gave his team a mandate to come in and fully understand their business would see returns that more than exceed expectations. Claims apparently backed up by his company’s track record across the ASEAN region during a ‘tough’ six months, during which they had apparently earned record revenues, again according to Mr. Rajendran.
In fact, Mr. Rajendran also indicates that his company experienced a doubling of growth over the last three years, particularly due to triple digit growth from emerging markets such as Vietnam; resulting from a strong and loyal base, acquisition of new customers and fast growth for enterprise solutions and storage requirements in the banking, telecommunications and healthcare segments. Commenting on his company’s entry into the Sri Lankan market, Mr. Rajendran indicated that while his company will be starting from zero, he sees high, untapped potential in the telecommunications, financial and healthcare sectors and that the timing was right for his entry.
Mr. Rajendran’s Sri Lankan operations are ‘enabled’ by Just In Time Holdings, a Sri Lankan company responsible for large-scale projects such as the operation of 250 People’s Bank ATM’s, the introduction of scrip-less trading at the Colombo Stock Exchange and the Internet Protocol TV technology used by PEO TV. Another area promoted by Just In Time Holdings is electronic banking through a partnership with Gemalto which endeavours to reduce risk by enhancing security through EMV, the ‘global standard for credit and debit payment cards based on chip card technology’.
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ICTA awards Rs 21 million in grants for rural projects
http://www.sundaytimes.lk/090524/FinancialTimes/ft338.html
Projects benefiting rural communities by offering them text to Braille translations, citizen journalism in Tamil and local language job banks, among others services, proved to be the focus of the Information Communication Technology Agency (ICTA) of Sri Lanka as they were awarded Rs. 21.2 million in grants recently.
ICTA, in a statement, indicated that “funds will be provided to 16 organisations on this occasion under the replication assistance grant award programme for replicating community-friendly projects which have been well tried out as pilot projects and found to be full of promise for the benefit of society”.
One project, initially launched by Jinasena Properties at the School for the Deaf and the Blind in Ratmalana, will now utilise ICTA’s grant to further add to and improve so that its software could be deployed to six schools – the Braille Press, Maharagama, St. Joseph’s Girls’ School, Kegalle, Nissanka Maha Vidyalaya, Kurunegala, Special Education Resource Centre, Anuradhapura, Matara College, Matara and Mahanama College, Colombo. Encompassing a video sign language dictionary, learning software for the hearing impaired, computer-aided speech therapy and text to Braille software for the visually impaired, this programme will eventually lead to disabled children graduating from special needs schools like the Deaf and Blind school in Ratmalana to being integrated into the mainstream of the educational system.
One way this will be accomplished is through the extension of the range of reading materials available, as there is only a very limited collection of Braille books currently in circulation, which will achieved by way of the Digital Talking Books project. Another is through a project which makes it possible for the visually impaired to read the Sinhala content online via software that converts online digital content to Braille which can then be read using a Braille display. An added bonus is that the software also makes it feasible for users to communicate through e-mail with others.
The technology can also be used in the printing of examination papers so that visually impaired children can have examinations given to them instead of the regular practice of papers being read out by examiners. Another project which will be utilising its grant to extend its scope is an existing Centre for Policy Alternatives (CPA) initiative that was created as part of 2004’s ‘Voices of Reconciliation’ project; a project responsible for setting up Sri Lanka’s first citizen journalism sites, www.vikalpa.org and www.groundviews.org.
Awarded a grant to improve the effectiveness of citizen journalists in Kandy, Hatton and Nuwara Eliya, the project intends to single out the four best community based organisations for training to enable them to be better reporters, including providing them with skills pertaining to citizen journalism, publishing newsletters, etc. Further, these communities will also be provided Internet accessibility as the ultimate goal of the project is to use new technology to get society’s views expressed through facilities such as newsletters and community radio programmes webcast over the Internet.
Also awarded a grant was a local language job bank (www.srilankajobs.net), which was developed and maintained by Best Job Opportunities. Offering people in Anuradhapura, Badulla, Matale, Nuwara Eliya and Polonnaruwa access to work in the private and public sectors, the organisations utilises the Nenasala and Samurdi networks, by way of training their staff, to allow potential employees to register and upload their CV’s. The grant is also being used to print 250,000 classified papers and deliver them to key persons across multiple communities, etc, all the while offering job seekers the service free-of-charge.
In addition, initiatives include the utilisation of an ICT based English language teaching tool in two remote villages in the Monaragala – training in graphic design through three-dimensional film animation software for youth in Kuchchweli, Trincomalee; providing to 100 registered farmers via mobile phone data on “cultivation practices – e.g, input of fertilizers, timing of the application of fertilizers in addition to communication of day-to-day market prices of agricultural produce and crop prices, for example, from the Dambulla market”; maintaining a mobile platform which enables the linking of the Dankotuwa District Hospital to the Marawila Base Hospital, and helping fishing communities by tapping satellite data and identifying, by SMS for fishermen registered with the Nenasala in Weligama ,the longitudinal and latitudinal indicators where fish are concentrated.
Finally, it is important to note that, while some of these projects are still in the planning stages, such as text to Braille software which has so far only been deployed to a few institutions, there are others, such as CPA’s citizen journalism project, active since 2004, which will be using these grants to take their offerings online while also improving accessibility for the communities they service. So, in a sense, ICT has allowed these projects and communities to take on greater challenges, often even going beyond original, and local, concerns.
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Sri Lanka’s newest offering to the world – Genealogy
http://www.sundaytimes.lk/090308/FinancialTimes/ft323.html
Sri Lanka’s newest offering to the world – Genealogy
By Jagish Hathiramani
Sri Lankans are fast becoming known for their abilities in specialisation. Where others have taken more conventional routes such as entering the increasingly filling call centre space, local companies decided to specialise in finance, accounting, hospitality, etc., as well as any one or more of dozens of areas where this nation’s higher proficiency in literacy and education has led the way. Now a Norwegian company setting up shop locally may herald the next step in Sri Lanka’s niche strategy; even greater specialisation into areas such as Genealogy (the study of family histories).
The Norwegian company in question, Embla Software Innovation (Private) Limited, is an offshoot of Embla Norsk Familiehistorie AS (www.embla.no), an organisation which considers itself to be the leading Genealogy company in Norway. The company is also quick to point out that it has recently expanded services into neighbouring Denmark. Meanwhile, what it offers is a social networking solution that links families in much the same way that Face Book links individuals, through an online resource.
According to Embla: “Genealogy software is used to record, organise, and publish genealogical data. The solution collects data such as the date and place of an individual’s birth, marriage, and death, and stores the relationships of individuals to their parents, spouses, and children. Additionally, (Embla handles) additional events in an individual’s life, free-form notes, photographs and other multimedia”.
Established in 1996 by buying-over the rights to the Embla Genealogy model previously owned by a company based in USA, the newest Embla incarnation credits its success to the fact that everybody, in one way or another, is fascinated with where they came from. According to Embla’s Chief Executive Officer, Stein Inge Haaland, “Everybody is interested in Genealogy”. He notes that the product has proven successful only because it is an easy-to-use tool, which once the software is bought or licensed online, allows users to play the part of a detective into their own family history, enabling them to gather pictures, video and music from family highlights as well as maps showing where people are born, stay, etc. “The software will also soon be available in English so there will no longer be boundaries to its use, such as with stand-alone applications”, he adds.
Acknowledging the introduction of Microsoft Vista, the new global standard operating system for home personal computers, as the catalyst for product offerings such as Embla, Mr. Haaland elaborates that this is because people now have a lot more multimedia and functionality available in their homes allowing access to a new generation of home entertainment of greater interactivity, adding: “It must be fun, otherwise people will go to some place else”.
Initially coming to Sri Lanka to explore the possibility of a partnership with a local software company, Mr. Haaland says he was ’so impressed with local facilities’ that he decided to set up his own operations here As such Embla is currently on the verge of relocating operations from USA, India, Ukraine and even Norway to a facility in Rajagiriya that is expected to commence operations soon in an investment the Board of Investment (BOI) of Sri Lanka has valued to be potentially US$150,000.
According to Mr. Haaland, his immediate concern continues to be “(will) I be able to hire the right people, (namely) qualified programmers, because the software is some of the most complicated?” Further suggesting that those interested will find their jobs to be “fun, but very challenging”, he explains that programmers will be using Microsoft’s “.net” platform, which he admits he himself has hardly ever seen before. He also indicates that he would like to utilise new software to create better Graphical User Interfacing (GUI): “Very complex stuff because of the use of multiple vectors and 3D and 4D mapping”, says to Mr. Haaland.
Meanwhile, “(we) are looking at a lot of IT companies for good candidates to hire”, says Mr. Haaland. He suggests that for the right person, there will be really good care given, the offer of excellent remuneration and extras such as the best computers and break facilities, including Xbox gaming, etc.
“We intend to make it a fun place to work”, says Mr. Haaland. However, he finishes up his recruitment pitch with this bittersweet thought: “If we cannot find the right people, I’ll have to pack up and move some place else”.
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Colombo, Gampaha and Kalutara most competitive Sri Lankan cities
http://www.sundaytimes.lk/081026/FinancialTimes/ft3024.html
Colombo, Gampaha and Kalutara most competitive Sri Lankan cities
By Jagdish Hathiramani
The Colombo Metropolitan Region (CMR), comprising the Colombo, Gampaha and Kalutara districts, encompasses the top three performing cities respectively in terms of national competitiveness, according to a recent survey of 14 Sri Lankan cities.
At the other end, the city with the lowest overall score is Trincomalee. This determination was made after a study of six performance indicators in each of the country’s 14 major cities. The indicators were: 1). Cost of Doing Business; 2). Dynamism of Local Economy; 3). Human Resources and Training; 4). Infrastructure; 5). Responsiveness of Local Government Units to Business Needs; and 6). Quality of Life.
This data was part of a Cities Competitiveness Analysis which is the cornerstone of the Clustered Cities Development (CCD) project, an Asian Development Bank initiative currently being researched in Dhaka (Bangladesh), Delhi (India) and Colombo. Colombo-specific research for this project was presented by its local facilitators, Sevanatha Urban Resource Centre, at the project’s Second Round Table held at Water’s Edge recently. The event featured the participation of a diverse group of senior personnel from several public and private enterprises including the Ministries of Environment and Urban Planning, the Central Bank, the University of Moratuwa, the Colombo Municipal Council, the Joint Apparel Association Forum (JAAF), the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) and the Board of Investment (BOI) amongst others.
The objective of the research into the project is to look at how to foster Clustered City Developments, with the expectation that clustered cities allow for improved competitiveness and sustainable development through the achievement of better economic and physical planning for cities. This new approach to city planning is an effort to curb chronic problems such as overcrowding, the need for new land to grow, traffic and environmental concerns by proactively planning for the future, creating a new image for Sri Lanka, adopting new aspirations for inhabitants and competing globally. This is especially important as the population of CMR is expected to swell to 8 million people in 2030 from current estimates of 5 million.
The ultimate goal of the project is to incorporate Clustered City Developments into the city planning process allowing for collaborative advantage to be achieved. Presently, following several focus group discussions, there have been several industry sectors recommended as areas for future growth based on high consistent growth patterns visible in the last 10 years. These will ideally be the focus for government resources in the future. These industries include IT and education, financial services and insurance, shipping and aviation and tourism.
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Over 900 ISO 9001 certified companies in Sri Lanka
http://www.sundaytimes.lk/080907/FinancialTimes/ft328.html
Over 900 ISO 9001 (Quality Management), 80 HACCP (Food Safety Assurance) certified and 30 ISO 14001 (Environmental Management) certified companies operate in Sri Lanka today. This was indicated at the opening of the “National Conference on International Management Systems” organised by the Sri Lanka Standards Institution (SLSI), which was held last week in Colombo.
The conference was declared open by Minister of Science and Technology Prof. Tissa Vitharana MP, under whose ministry’s purview the SLSI operates. In his remarks to conference delegates, Prof. Vitharana noted if Sri Lanka wanted to emerge from the poverty gap, the country had to place greater importance on products meeting international standards. He also noted that this was especially relevant in terms of Sri Lanka’s competitors, who were continually upgrading their products so it was important that we too do the same.
The featured speaker of the conference was Satish Rao, a consultant and former Member of the Clean Development Mechanism (CDM) Advisory Panel of the United Nations Framework Convention on Climate Change (UNFCCC). A veteran of management systems accreditation, Mr. Rao has also worked in Marine, Oil as well as other industries. Comprising technical sessions which included several real-world examples, this full-day conference programme mainly featured in-depth presentations on the Kyoto Mechanism (an initiative through the Kyoto Protocol), the Samanalawewa Power Station and HJ Condiments Ltd.
In addition, the conference included a number of presentations on processes such as “Improvement through implementation of ISO 9001”; “Employee Involvement – The key to success in ISO 14001 & OHSAS 18001”; “Integration of Management Systems”; and “Certification of Management Systems by SLSI”
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Western culture may have caused sub prime crisis
http://www.sundaytimes.lk/081019/FinancialTimes/ft320.html
Cultural leanings towards credit in the west compared to preferences towards savings in the east may have been the root cause of mortgage defaults that led to the global credit crisis, according to Philip Rao, an 18-year financial services veteran and Partner of Ernst & Young’s Risk and Business Solutions practice.
Mr. Rao also pointed out that the ‘sub prime’ crisis was a result of not enough regulation and that ratings agencies were partly to blame for overly high bond ratings which should have instead been based on ‘substance rather than form’. This led to many organizations investing in what they believed to be safe mortgage based derivates endorsed by organizations such as Lehman Brothers, Freddie Mac and Fannie May, which have ultimately led to a number of financial institution bankruptcies as far away as Japan. In addition, it is possible that this crisis may only deepen as he notes that out of the 44 million mortgages in US, 35% were ‘sub prime’ mortgages which were instrumental in the collapse of the mortgage market.
Mr. Rao’s comments proved particularly impactful as the topic of his presentation, “Enterprise Risk Management: The Art of War”, outlined the importance of strategic Risk Management, which is an area where several global companies have proven lacking in recent days. Held recently at the Cinnamon Grand, Mr. Rao used lessons from “The Art of War”, a 2,500 year-old masterwork by legendary Chinese General and Master Strategist Sun Tzu, to explain to an audience comprising Sri Lanka’s top business leaders of the necessity of risk management.
Indicating that enterprises are at war all the time, whether for market leadership, talent or capital, Mr. Rao suggests that it is imperative that enterprises always be prepared. His presentation identified two broad objectives for risk management to achieve: keeping out of trouble by preventing most problems as well as reducing the impact of problems that will occur no matter what, and making business better by identifying which risks need to be taken to improve business.
He also indicated some practical steps to make risk management work in any enterprise: understand the current state of managing risks in an enterprise and evolve from there; train a risk-aware workforce who consider risk management part of their day-to-day activity; embed risk assessments into strategic planning process, with key strategies reviewed, challenged and considered from the risk angle with actions to manage them; make the board responsible for risk management with implementations of the Chief Executive Officer.
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Advertising perceived negatively in society
http://www.sundaytimes.lk/090419/FinancialTimes/ft326.html
There is a “bad picture” of advertising in society, according to recent Sri Lanka Advertising and Creativity School (www.spaacs.lk) graduate Ravindra Silva. Speaking at the first graduation ceremony of the school held at BMICH recently, Mr. Silva also went on to note that the school, although not facilitating a complete change in his life, did in fact inculcate within him “very small things” which make up contemporary advertising.
Using a well recognised local chant, ‘Sri Lanka can’, to sum up his remarks and imply a brighter, more international, future for the local advertising industry, he also alluded to personally benefiting from subject matter which allowed him to ’see things differently’, think of products as stories and identify how to gain employment in advertising agencies.
Chief Guest at this graduation, President of the Accredited Association of Advertising Agencies (4A’s) of Sri Lanka, Laila Gunesekere Martenstyn, noted that this was the first such programme that has “succeeded for this long”, further indicating that the course’s success was due to “the brains behind [the school] Dilith [Jayaweera]“. She also implied that the programme had already shown some success since several graduates had already taken up places at agencies.
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Sri Lanka – renewable energy island?
http://www.sundaytimes.lk/090301/FinancialTimes/ft333.html
Sri Lanka – renewable energy island?
By Jagdish Hathiramani
If the thought of this nation one day becoming universally known as the “Renewable Energy Island” is far fetched, then stand in line. However, one Sri Lankan living abroad thinks differently. In fact, he has made it his life’s mission to convince non-believers that the nation’s dependency on fossil fuels, particularly foreign oil, must end now — to be instead substituted with renewable options which are much greener and therefore much safer. This Sri Lankan is Prof. I.M. Dharmadasa, an academic and researcher who has worked on solar energy conversion for over 30 years.
A University of Peradeniya graduate and a former BP Solar researcher, Prof Dharmadasa currently teaches at UK’s Sheffield Hallam University, and has to date experienced some significant success with a concept he is promoting locally called the ‘Solar Village’ programme. This project is powered by the idea that Sri Lanka has a virtually endless resource in terms of sunshine, or as he notes: “Sri Lanka has done well with solar energy over the past two decades. This is due to contributions from many solar energy believers. There are now 15 solar energy companies operating in Sri Lanka creating employment for young people. In recent European solar energy conferences, Sri Lanka has been identified as the ‘Hot Spot of Solar Energy Applications’”. This abundant available solar power allows, once the right infrastructure is put into place, an almost perpetual power source to meet the needs of, as he refers to it “a cluster of remote villages where no modern facilities are available and solar power is provided to supply water and power to uplift their standard of living.”
The project, which evolved from Prof. Dharmadasa’s work with five local universities, was initially aimed at building knowledge and experience in solar energy research in Sri Lankan universities and promoting renewable energy applications in the country. According to Prof. Dharmadasa, this eventually led to the “first solar power project under the Solar Village programme completed at Kaduruwewa village in the Kurunegala District. Here the water supply scheme to the village was provided by using solar pumps replacing a diesel pump. The villagers have formed a society to operate the scheme and they are now saving at least Rs 100,000 per annum on diesel costs. This enables them to use their money in providing better education for their children and also to uplift their living standards”.
In fact, the project works mainly because the “whole community is directed to work together, to grow more trees around the area, to keep bees for honey production, use organic agriculture methods, etc. to improve the quality of environment,”, says Prof. Dharmadasa, adding that it allows for the accelerated development of the community further complemented by the newly lowered cost of living attributable to solar energy.
“Another key feature of this Solar Village is that one of the local universities adopts this cluster of village to guide the development of that society,” explains Prof. Dharmadasa. Elaborating, he recalls that “the first pilot project (was) adopted by team led by Dr. Krishan Deheragoda at the Dept. of Geography, University of Sri Jayawardenepura (USJ). The Geography special students (carried) out their final year survey in this village cluster feeding new ideas for development”. He adds: “Imagine the impact of fresh ideas from enthusiastic university dons and students for rural communities and the use of a younger generation to spread out these new ideas round the country for replicating these new projects.”
This communal development onus has led to a number of almost immediate improvements for villagers “Tree plantation, Honey production, Brick making, Vegetable farming in dry areas, Development of cottage businesses, scholarships and micro-finance schemes using saved funds within the community due to use of renewable energy sources. The development of the village temple, village school and the environment through Sramadana activities are organised and encouraged,” he comments, noting that all projects, are completed due to villagers realising their self worth and working together towards common goals.
Meanwhile, Prof. Dharmadasa also believes that the “concept can be applied anywhere in the country”. However, the “individual projects within the community will vary according to the local requirements and available natural resources”, he cautions, adding that “this is also an excellent opportunity for educating community working in schools and universities to contribute to develop their own community. This culture needs to be developed in order to help needy people, establish peace and therefore reduce poverty from the society.”
He has also advocated repeatedly the ‘Solar Village’ idea both here and abroad with generally positive results: “During my last visit to Sri Lanka, both myself and Dr. Deheragoda had a very productive discussion with our Environment Minister, Champika Ranawake… (In the meantime) Nigeria has already recognised the ‘Solar Village’ as a very suitable social development project for their country. Africa-Aid charity and universities in Nigeria are working with me at present to introduce this concept. They have already arranged four university lecturers to join my research group in Sheffield for training at PhD level for both R&D and solar energy application projects. This project satisfies three millennium goals, namely; clean water, clean environment and reduction of poverty”.
Considering the success of the ‘Solar Village’ concept, what lessons can one draw from this model of communal reliance? Prof. Dharmadasa suggests “people use energy efficiently without wasting and to move rapidly towards renewables enabling (reduced) carbon dioxide emissions and also grow more trees everywhere possible to reabsorb carbon dioxide from the atmosphere”.
His final thoughts are most sobering of all: “Observe the Jaffna peninsula very carefully; it is slowly becoming a desert. When people fight with each other, human-kind forgets the environment and it is bad news for vegetation. The desertification will accelerate creating misery to people who live in these areas. All Sri Lankans should work to establish long lasting peace in the country, and replicate ‘Solar Villages’ in every corner to liberate those innocent people who are trapped in poverty.”
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Security experts stress importance of private security agencies
http://www.sundaytimes.lk/081026/FinancialTimes/ft3044.html
The cumulative result of private security activities contribute to the overall security of the state but some of the top private security agencies are run with political backing and thus may not be legally licensed, according to a presentation made at a seminar on security issues earlier this week.
Such agencies, it was revealed, may also ignore labour laws and sometimes even hire personnel who are deserters from the armed forces or have criminal backgrounds. Some even recruit immature and uneducated persons with minimal training, according to the keynote address by the Founder President of the Industrial Security Foundation (ISF), Edward Gunawardane, at the opening day of the organization’s 2-day seminar and exhibition themed “Security in the era of Terrorism”.
Starting from Monday, October 20, at the Galle Face Hotel, the event featured a number of notable presentations, including: Deputy Solicitor General, Yasantha Kodagoda, on the ‘Legal Aspects of Electronic Frauds’; retired DIG. Mithra Ariyasinghe on ‘Modern Techniques in Personal Protection’; Director of the Information Communications Technology Agency (ICTA), Jayantha Fernando, on ‘Cyber Security’; DIG Asoka Wijetilleke, on ‘Investigation of Credit Card Frauds’, Frank Dharmaraja on the ‘Security Function in the Hospitality Trade’, Wg. Commander Tony Dirckze on ‘Modern Trends in Fire Fighting’, Capt. Nihal Gunawardena on ‘Threats to Aviation from Terrorism’; Rear Admiral Terrance Sundaram on ‘Maritime Security’; as well as contributions by Strategic Affairs Advisor to the Ministry of Defence, Dr. Sanjaya Kolonne, Director of the Peace Secretariat, Mr. Rohantha Athukorala, and Dr. Sivaji Felix.
According to the ISF newsletter, “… the personnel of security departments in state and private organizations together with the personnel of private security agencies comprise a formidable percentage of the national work force. Over 70,000 are employed by 250 registered security providing agencies and it is presumed that the large number of unregistered agencies employ as many persons as possible.”
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Workshop planned to develop industrial model for Biogas
http://www.sundaytimes.lk/080907/FinancialTimes/ft337.html
The Goethe-Institut, Sri Lanka – German Cultural Centre, in collaboration with the German Alumni Association of Sri Lanka recently organized a public lecture by Biogas proponent Dr. Andreas Gronauer, Vice Chairman of the Institute of Agriculture technique of the Bavarian State Research Unit in the Federal Republic of Germany, a project of 150 researchers. The lecture was touted as a preliminary step to a more intensive 4-day workshop to be held soon which is hoped would result in the development of an industrial scale model for a Biogas plant for Sri Lanka, a plant which would increase the capacity of Biogas to a whole new generation, in excess of 2,500 cubic metres, compared to the existing highest capacity plant, which now allows 35 cubic metres.
Entitled “Sustainable Development – Challenges & Potential for Industrial Biogas Production in Sri Lanka”, this presentation by Dr. Gronauer at the German Cultural Centre Auditorium proved to be an in-depth look at the best practices that have resulted in Biogas becoming a significant renewable energy resource in Germany, a country which yields 8.6% of its energy capacity from renewable sources. The presentation further drew stark contrasts between Germany’s efficiencies with renewable energy and Sri Lanka’s by implying that Germany’s stricter regulatory framework had resulted over the last decade in a significant trend reversal in energy resources which, when coupled with its ongoing war on global warming, resulted in enhanced focus on energy efficiencies and renewable resources.
Ultimately, the lecture was used to create awareness amongst laypeople about the basics of the Biogas production process, including what is Biogas, how is it produced, what can it be used for, what resources are required for its production, and what are the advantages and disadvantages of Biogas production.
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Lankan firms must revisit business models to survive credit crunch
http://www.sundaytimes.lk/081130/FinancialTimes/ft318.html
Lankan firms must revisit business models to survive credit crunch
By Jagdish Hathiramani
Sri Lankan firms, to survive in today’s post credit crunch environment triggered by the global financial crisis, must revisit their business models.
They must become more creative, proactive and innovative while remaining ‘lean and mean’, especially since their markets may never be the same again, says Deputy Chairman of the Ceylon Chamber of Commerce, Dr. Anura Ekanayake. He added that businesses which start to sink may not have time to plug the hole, so it would be prudent to start planning for every possible outcome now. Further, Dr. Ekanayake indicated that to weather the potential impact of this economic crisis the state would have to cut expenditure, control imports, devalue currency, stimulate domestic production and go for multilateral aid. In fact, any one of these measures may not be enough and a combination of all of the above could be needed.
Dr. Ekanayake’s comments were made at a panel discussion on the global economic crisis and its impact on Sri Lanka, where he was joined by Assistant Governor of the Central Bank, Dr. Uthum Herat, and economist Dr. Sirimal Abeyratne from the University of Colombo. The discussion was organised by The Sunday Times Business Club and held at the Cinnamon Grand, the club’s host hotel. Hameedia’s is also a club sponsor.
According to Dr. Herat, for now there may be little impact for Sri Lankans since the government had already put in place a series of measures to limit risk. These include close supervision of banking institutions, understanding location risks and instruments, monitoring sector exposure (such as in the construction and housing industries), increasing bank provisions, limiting foreign exposure of banks, increasing capital, monitoring liquidity positions, etc.
Indicating that outflows from government paper proved the most significant immediate impact to the economy as potentially US$600 million could be withdrawn, Dr. Herat noted that this outflow and even additional pressures such as foreign exchange liquidity outflows, stock market decline and falling world prices could not negate expectations of net foreign inflows overall. Going forward, Sri Lankans could also expect downward pressure on exports such as garments and tea, a decline in tourism, possible negative effects on remittances, and even a positive impact from lower commodity prices for oil and food. Meanwhile, Dr. Abeyratne noted the significance of indirect impacts due to falling aggregate demand and falling world prices, which would lead to a decline in the export sector, tourism and foreign direct investment as well as increases in the costs associated with borrowing.
However, it was the long term effects on growth and stability which he stressed on most: Growth, income and employment could not be sustained; trade deficit would widen; and the government’s budgetary management would lead to higher inflation, an increase in the interest rate and depreciating exchange rates.
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Flexibility, international experience — key to attract BPO workers
http://www.sundaytimes.lk/090208/FinancialTimes/ft317.html
Flexibility, international experience — key to attract BPO workers
By Jagdish Hathiramani
Some have been headhunted for their unique skills/experiences in much in-demand areas such as hospitality. Others are here because they can only thrive if they have the flexibility to pursue outside interests such as education or launching their music caeer, etc. Still many more just want to finish their entire work week in four continuous 12-hour shifts so that they can spend the rest of their time in leisure.
These are just some of a plethora of stories from the new breed of knowledge workers typical to one of Sri Lanka’s fastest growing job markets – the Back Process Outsourcing (BPO) or Information Technology Enabled Services (ITES) sector.
Virtually the only thing those interviewed have in common is that they all work at Colombo-based HelloCorp, an organisation that claims to be Sri Lanka’s most diversified BPO operation.
Started in 2002, HelloCorp initially operated using a voice and data (or call centre) model with 120 employees servicing clients such as America Online (AOL) and Microsoft. However, this model proved to be unprofitable and HelloCorp significantly scaled down operations and re-focused resources into a hybrid call centre / back office operation with finance, accounting and hospitality clients. The result: HelloCorp now earns significantly greater revenues with only four 12 to 15 member teams (60 personnel in total) offering more specialised and valuable functions, such as finance and accounting, legal services, etc.
According to HelloCorp’s Chief Executive Officer, Omar Fatharally, to truly understand what motivates this new breed of knowledge worker, one must first gain a deeper sense of what attracts them to a career in the BPO sector. He notes that the main draw for employees is not the salary, as one might usually expect, as it is often only slightly higher than salaries offered in a more conventional career. In fact, the most attractive feature actually proves to be the greater flexibility offered by BPO companies. For example, HelloCorp finds that offering workers a choice between two very flexible working arrangements to be their best recourse. They can either work shifts of six days of eight hours each or four days of 12 hours each.
This coupled with workers being allowed to choose their own time to start which gives them even greater flexibility, the only proviso being that once they start they must work their entire full shift. In addition, increased benefits such as paid study leave with a further option to take no paid leave have been proven more attractive to HelloCorp workers.
Meanwhile, according to Mr. Fatharally, staffers also relish the fact that HelloCorp is a very easy going workplace which also takes great efforts to offer extra perks such as free meals, staff trips to India, etc. Also, an open door policy, a flat organisational culture and the belief that experience is valued has helped maintain staff morale throughout. Employees also benefit from experience gained from working with international accounting policies, etc. Further, they appreciate being able to use their qualifications in international settings. They have also expressed positive comments about the great deal of training they receive in areas such as soft skills (customer service, phone etiquette, etc.), client specific protocols (to adhere with client policies/systems) and continuous improvement / quality assurance training.
Flexibility, international experience and training are particularly important, say Mr. Fatharally, because most HelloCorp employees are on average only 23 years old. With this younger, more dynamic group, there is a preference towards career growth and learning/studying opportunities instead of the more traditional job security considerations with older professionals. In his view, realising this is a fundamental difference and catering to it has garnered greater success for HelloCorp compared to other Sri Lankan BPO companies.
However, does Mr. Fatharally’s staff really feel this way? Kasun Pasqual, who has worked with HelloCorp for 10 months, indicated that he had worked with several BPO companies in Sri Lanka already. Whereas he had earlier worked in telemarketing, he now works providing ‘inbound’ technical support and back office processing for a Fortune-500 company specialised in Semiconductor Manufacturing based in U.S.A. His preference for BPO jobs stems from their convenience and flexibility. He hopes that this added flexibility allows him to embark on a music career later on, but, for now, it gives him “plenty of time to do my own thing”. He also recommends working at a BPO to anyone, saying he feels it is particularly good if one is studying or engaged in other projects. He anticipates staying with this field for a while; earning promotions to team leader status or even setting up his own small-scale BPO.
A specialist in the hospitality industry who has worked with HelloCorp for one year, Dhinal Perera, remembers being actively headhunted for his current position because of his many years of experience with luxury hotels.
He remembers that he first had doubts about leaving his more traditional job at a five-star hotel in Colombo, but ultimately decided it was a good opportunity after researching HelloCorp’s credentials and being offered better pay. Now he thinks that there was very little difference between his previous career and his current one, basically just a lack of face-to-face contact with the outside world.
However, he admits that he has learned more, taken on greater responsibility and had to be more flexible while at HelloCorp so the experience has been positive. His long-term goal is to go abroad and work at a hotel and he feels his current job helps with that because it allows him to gain international experience and learn other country’s processes, products, policies and protocols. He added that he also knows of a few people who were recruited from HelloCorp to join the client he works for; a leading luxury resort chain headquartered in Singapore.
So why delve so much into understanding just one sector? It is important to note that HelloCorp is just one of an estimated 30 BPO operations in Sri Lanka, only a third of which function as call centres. One reason why this purportedly fast-growing industry should be watched is the ambitious plan it has outlined for growth; a plan which might ultimately result in this sector overtaking many traditional avenues in terms of growth. Proposing a level of consistent industry growth which will eventually encompass over 100,000 people and generate revenues in excess of US$2.5 billion by 2012, there can
be no doubt that BPO companies are slowly becoming the employer of choice for many students straight out of university.
It is also worthwhile considering that “currently, over 50,000 are employed in the IT and BPO industry in Colombo and the workforce is growing at over 20% year-on-year. The workforce is stable with very low attrition rates ranging from 10-15%” notes the Board of Investment (BOI) of Sri Lanka website. In addition, a recent World Bank study has noted that the local labour costs were the lowest when compared to other major global outsourcing centres, sometimes as much as 30% less.
All of which points to the industry’s potential for tremendous growth in the future. Something that seems already to have been noticed since the country has already been identified as a ‘global IT/BPO destination of choice’ with rankings among the ‘Top 50 Global Outsourcing destinations’ by A.T. Kearney and ‘Top 20 Emerging Cities’ by Global Services Magazine.
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Solar energy only clear option for Sri Lanka independent of fossil fuels
http://www.sundaytimes.lk/090111/FinancialTimes/ft309.html
Solar energy only clear option for Sri Lanka independent of fossil fuels
By Jagdish Hathiramani
The first impression of anyone discussing the future of Sri Lanka’s energy landscape with retired Additional General Manager of the Ceylon Electricity Board (CEB), Kanagalingam Gnanalingam, must undoubtedly be… he is steadfast in his convictions that the large-scale adoption of solar energy is the only way to achieve a Sri Lanka free from its dependence on fossil fuels.
Currently, an independent consultant volunteering for organisations focused on renewable energy issues, particularly in the area of solar energy utilisation programmes, Mr. Gnanalingam first started researching solar energy in 1970 while at the University of Ceylon, Peradeniya. He continues his passion for all things solar to this day, sometimes spending as much as 15 hours a day on his research since retiring from CEB (aged 55 years) and migrating to Canada in 2001.
Considering his fascination with solar energy, it should come as no surprise that Mr. Gnanalingam’s greatest influence was Sri Lankan solar energy pioneer, and his former teacher, Prof. J.C.V. Chinnappa, then Professor of Mechanical Engineering at the University of Ceylon, Peradeniya, who now serves as an Advisor on Solar Energy to the Australian Government. While a part of Prof. Chinnappa’s team, Mr. Gnanalingam and others were credited with designing the first solar refrigerator working solely on solar energy as well as designing, constructing and testing a pressurised solar water heater in 1971.
Rural Homes
Continuing his calling in the solar field, Mr. Gnanalingam later worked at CEB as an engineer in the Energy Unit in 1984 where, together with other engineers, he was responsible for the introduction of solar in rural homes and schools, at that time sold at subsidised prices by CEB. Since these programmes proved to be successful, CEB left it to the private sector to take over and, at its highest point, there were more than 14 companies involved in this industry, supported by micro credit facilities lent by banks as initial costs were very high. He goes on to note that although his team’s work was ultimately the cause of the first energy centre to be constructed by CEB with World Bank aid, a centre which used Solar, Wind and Biogas Energy to feed a village in Tangalle, the project was abandoned when the electricity grid was extended to encompass this village. However, many solar home systems were later taken over as commercial ventures by private companies assisted by micro credit lending by DFCC.
Responding to views that solar energy may prove feasible for large scale power generation in Sri Lanka, Mr. Gnanalingam suggests that not only is solar energy useful for the rural poor with no access to the electricity grid, but it also has the potential for a much wider impact for the nation: “With the introduction of Net Metering and Tax relief by [the government] this year for renewable energy, we believe that now, with lower cost of Thin Film Solar Cells, it is viable to install solar panels in grid connected homes.
The energy generated during the sunshine hours of the day can be used or pumped back into the grid and the house metre will run in the opposite direction and reduce your monthly bill. Without a costly storage battery system this will produce reduction in the monthly bill with payback period of 2 to 3 years depending on where your house is and the present monthly consumption.”
Not only is it feasible but, according to Mr. Gnanalingam, solar energy may prove to be the best choice for Sri Lanka’s future, especially should the country wish to meet the high target set for itself to increase non-conventional, renewable energy to 10% in 2017 from a current level of 4%: “Very soon many developing countries like India and China are going for 20% of total energy used to be derived from Solar energy. Germany, even though it has only about half of the sunshine we have in Sri Lanka, has the maximum percentage of use in the world of solar energy in its system for generation of electricity.” He adds that although natural gas ‘has its place’, it is currently very costly since it has to be totally imported like oil.
Wind Options
The wind environment in Sri Lanka, says Mr. Gnanalingam, is not ideal so, unless wind power plants are set up off-shore, making it very costly, there are no good wind options. However, he does endorse private sector moves to currently erect larger wind power plants in the Puttalam area, while further suggesting that there are good wind areas, such as in Mannar and in Jaffna, which may prove useful once peace is achieved. He also indicates that while Hambantota was previously determined to be an unsuitable location – “due to the presence of airfields and bird sanctuaries, the best sites in Hambantota were not available for the CEB’s [proposed] 3 Mega Watt Wind Power plant” as well as breakdowns caused by pollution from the sea air, etc. – the expected Hambantota harbour may improve this situation.
Therefore, suggests Mr. Gnanalingam, the only feasible choices left to Sri Lanka are wave energy, an area to be further explored since the country is on an island with large seashore; and solar energy. He further indicates that solar energy is bound to achieve greater efficiencies while becoming more cost effective. Recent innovations include Nano technology based printable cells featuring a 12% conversion solar energy rate and less expensive, while concentration solar cells, currently used in space vehicles, will be available next year and have a higher conversion efficiency (approximately 40%) when compared to today’s crystalline silicone Solar cells which have maximum of 20% conversion efficiency.
Meanwhile, when asked whether there were any lessons learned from his adopted home, Canada, which could positively impact Sri Lanka, Mr. Gnanalingam has this to say: “Canada is introducing feed-in tariffs for Solar energy home systems similar to Germany, U.K. and Japan. They buy power from solar home systems owners at a higher price to promote this green Solar energy. This distributed electricity generation helps to reduce the transmission and distribution losses in the electrical system. These losses are high in the Sri Lankan grid which was as high as 16% last year. The extra cost incurred is recovered by a very small extra charge from all electrical consumers. We could achieve large reduction on this large loss by going for feed-in tariffs in Sri Lanka. Costly private power generation can be reduced and the fuel import bill for the country can be reduced with savings of valuable foreign exchange for the country”.
Finally, Mr. Gnanalingam identifies some important facts which should be included in the debate regarding whether renewable energy should play a larger role in the country’s future energy strategy: Currently, over 15,000 homes have obtained solar home systems, while small village micro hydropower schemes managed through electricity consumer societies have provided electricity to a further about 20,000 homes.
Costly Rates
Further, Sri Lanka has one of the costliest electricity rates in Asia as it was forced to go for costly oil generation from still more costly private power generation sources. Meanwhile, coal generation is not going to be cheaper as promised by the government as they will definitely tax the now costly coal like petrol.
Also, it is estimated that a single kerosene lamp emits 1 tonne of carbon dioxide over a lifetime of 5 years as well as producing soot and other health hazards and being very unsafe as it has resulted in many accidents and deaths.
So every year kerosene lamps are responsible for over 100 million tonnes of carbon dioxide emissions into the atmosphere.
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Foreign exchange controls restrict Lankan growth
http://www.sundaytimes.lk/090125/FinancialTimes/ft319.html
Foreign exchange controls restrict Lankan growth
By Jagdish Hathiramani
The idea that foreign exchange controls have shielded this country from foreign currency volatility or that a lack thereof would lead to the Sri Lankan rupee more rapidly reaching the Rs. 150 per US$1 mark is ‘merely’ perceptions, says Amba Research’s Managing Director/Chief Executive Officer, Ravi Abeysuriya. In reality, although controls protect the rupee from international volatility, they also restrict growth.
This is because controlling the capital account (or financial assets) of the country restricts Sri Lankans ability to invest abroad which allows them to reap higher dividends associated with taking operations international. He further noted that liberalisation occurring in other countries has demonstrated that the lifting of controls has resulted in more money coming into countries than going out.
Thus, the most pressing need for this country, according to Mr. Abeysuriya, is to create a properly developed market which manages long term risks in the capital markets. Currently, Sri Lanka subscribes to a positive list system whereby every currency transactions needs prior approval before it can go though which can prove limiting. Mr. Abeysuriya recommends a better alternative: A negative list system where certain items would be identified as requiring prior approvals while everything else would not need any approvals to proceed.
Accordingly, this would allow “a lot of flexibility for people to transact if they do the right thing as opposed to now where every transaction has to be vetted”, says Mr. Abeysuriya. Mr. Abeysuriya’s comments were made at the “Public Lecture on Foreign Exchange Liberalisation: Perception, Realities and Way Forward” presented last week by the Centre for Banking Studies of the Central Bank of Sri Lanka.
The lecture, which was headlined by the Central Bank’s Assistant Governor, P. Samarasiri, featured an in-depth lecture about all areas of foreign exchange, including the origins and relationship with globalisation, transactions which fall under foreign exchange, international and local exchange controls and liberalisation measures carried out domestically until today; all of which led to Mr. Samarasiri’s conclusions proposing the ‘Way Forward’ for Sri Lanka. Noting that in 2007 there was an overall surplus of US$ 531 million [based on US$ 1,369 million current account (trade) deficit set against US$ 1,900 million in the capital account], Mr. Samarasiri pointed out that, if looked at on the basis of macro economic principles, a surplus such as in 2007 favours export promotion measures instead of the development spending (favoured by a deficit) which a country such as Sri Lanka needs for growth.
Therefore Mr. Samarasiri recommended liberalising the capital account to match the existing current account, while at the same time introducing compulsory risk management guidelines for both regulators and participants. In addition, he advised that policy makers should adopt prudential regulations to promote market discipline and surveillance while regulators should market policies to promote healthy capital mobility and market discipline as well as helping to guide market participants in creating prudent business models. His suggestions were also in keeping with Mr. Abeysuriya’s idea of using a negative list system, since he identified the need to “get rid of arbitrary, case-by-case basis approvals processes”.
If this can not be accomplished, according to Mr. Samarasiri, then several drastic measures would prove unavoidable. These include the government increasing foreign borrowing or the Central Bank looking for financing of the current account deficit or even resuming controls on the current account, which now stands at approximately US$ 1,400 million. In addition, the country would continue its low growth and lose opportunities from globalization and it may even have to increase its direct participation in the economy and shrink the private sector.
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Don Carolis & Sons looks to the future, remembers its past
http://www.sundaytimes.lk/081214/FinancialTimes/ft322.html
Don Carolis & Sons looks to the future, remembers its past
Expanding business in India soon
By Jagdish Hathiramani
For any native of Colombo, the name Don Carolis & Sons has always been synonymous with furniture. One might say that the company is almost always the first choice for meeting one’s household furniture needs. In fact, so nostalgic is the feeling when visiting the company’s warehouse at Vauxhall Street that visitors are almost transformed to a more innocent time when life was slower and social networking was done face-to-face rather than on the Internet.
Although the warehouse location is only a few years old with most products being brand new, there are some pieces, peppered amongst the new furniture for sale, which exude a distinct feeling of history… one such cabinet, identified by staff as 75 years old, made from Jak tree timber in a colonial style, was almost brand new in appearance, a testament to the quality of its construction.
Perhaps the most poignant reminder of Don Carolis & Sons’ 148 year pedigree is a table sitting unobtrusively in the office of the company’s Chairman / Managing Director, Rajiv Hewavitarne. This antique, a ‘variated’ top table featuring all conceivable types of timber from a Ceylon long past, including a few timber varieties that cannot even be named today, is his all-time favourite. Why? Because it is over 120 years old.
The table seems to symbolise the lifetime of lessons Mr. Hewavitarne learnt from his distinguished family: “One thing I always say – quality and functionality are the most important things, even though style is what attracts customers.” In fact, he remembers learning from some of the company’s longest serving employees about the need for furniture to be built to last because that is the lesson they had learned from his ancestors. Being ‘built to last’ appears to be more than even a credo; it may even be a way of life: Many of its over 300 employees have stayed with the company for a number of years; over 100 have been there for 10 years, more than 75 have been there for 25 years, and a number have even spent 35 years in the company’s employ.
Although the company’s heritage appears to be in-built into Mr. Hewavitarne’s way of thinking, no one can doubt that his eyes are firmly on future horizons. Says Mr. Hewavitarne: “We are moving into India in a big way”. This is particularly true with regards to the Don Carolis & Sons’ efforts to supply hotels – a growing market. The company plans to cash in on an ongoing boom in hotel rooms in India, where 5,000 rooms are expected to come up in Hyderabad and Bangalore as part of an overall 10,000 rooms surge expected all across South India. He further notes that the company is in an ideal position to capitalise on this development as they have already worked with a number of boutique and 5 star hotels, building a strong reputation. He is especially proud of the company’s work for the Taj and Hilton chains in Sri Lanka, saying “we are confident of the job we did for them”. He adds that Don Carolis & Sons is currently in discussions with big hotel chains in India as well as a number of 4 and 5 star hotels for further projects of this type.
Meanwhile, furniture and office retail sales in India are other segments performing well for the company which is expanding rapidly into India with several stand-alone stores and a number of already well established Indian partners: “We currently have showrooms in Chennai, Coimbatore and Bangalore and we expect to have new showrooms open in Hyderabad, Cochin and Mumbai soon,” says Mr. Hewavitarne.
In fact, contrary to what’s been happening in the world, Don Carolis & Sons has yet to experience significant signs of the dreaded economic downturn, with the company just having realised 20% year-on-year real growth while also continuing to enjoy over 50% market share in Sri Lanka’s household furniture market. Meanwhile, exports to India by the end of the company’s financial year are estimated to be 75 containers. Although there has been a slight drop in sales in India, the opposite has been surprisingly true for Sri Lanka, according to Mr. Hewavitarne. Locally there has been 20% growth compared to the same sales period last year.
The company’s only major issue to date is too much demand. “We are currently restricted by production facilities available in our 148 year-old Slave Island factory. We have built a new factory, a new facility of 100,000 square feet which is twice the size of the existing production space and we will move in by January”, says Mr. Hewavitarne. Although the new factory has been ready for two months already, they took the decision to build up inventories before the move so there would be no loss of production and customers would not be disappointed while they scale up to new peak production capacities.
Don Carolis & Sons was started in 1860 by founder Mudaliyar Don Carolis Hewavitarne. At that time, the business was originally all about tea and rubber plantations. When Don Carolis realised that there was a need for colonial style furniture for expatriates, as all furniture was at the time imported from abroad with shipping times of six months by steamboat, he moved quickly to capture this market. In 1860, the first showroom was opened in Keyser Street. By 1907 the first small showroom had expanded to a 3-acre department store selling everything needed by the household, from crockery, cutlery, carpets, Rattan-ware to even bicycles. It had become the first department store in then Ceylon, and also was the first to introduce Peugeot cars and Ridgeworth motorcycles in the 1930s.
In fact, according to Mr. Hewavitarne, an influential publication of the time, “20th Century Impressions of Ceylon”, dedicates a significant portion to Don Carolis & Sons, also indicating that visitors to Ceylon must make it a point to visit Don Carolis & Sons. The business continued its growth until the Great Depression of the 1930s when it entered a state of decline. It was only when Mr. Hewavitarne took over four years ago that the company was again able to achieve any semblance of its former glory. Mr. Hewavitarne notes that there have been many changes to the business since its inception: “After 100 years we will have a new factory”. This new facility will prove to be the most striking contrast between the past and the present when compared to the current 148 year-old factory in Slave Island. Environmentally friendly and energy efficient, using all natural lighting and ventilation with virtually no electricity, the facility is almost fully mechanised, with no electric hand tools. It also features individual work stations comprising fully automatic pneumatic tools that are lightweight, non-electric and part of a full assembly line method, the new assembly line will use the same time period previously used to make 5 tables, at the old factory, to now fully complete 50 tables. All this with unskilled labour to keep costs down, spelling an end of the company’s dependence on “baas unnas”.
With such a single-minded focus on the future, what is the company’s position on challenges such as the continuing discourse on sustainability? Sustainability is inherent in timber so a tree having grown over 20 or 25 years must be cut down otherwise the trees growing in its vicinity (from its own seeds) will be negatively impacted, according to Mr. Hewavitarne. In addition, he advises that Mahogany and Teak are very much in demand and these are the best investments that can be made because prices are always appreciating. He further indicates that as Mahogany is easier to grow than coconuts and needs very little attention, it is a perfect crop and that once a tree is planted there will be an inexhaustible supply of new trees as it also seeds the area around it.
He also adds that, in part due to the company’s efforts, there is now less wastage and environmentally unfriendly dumping as wood waste such as wood shavings and saw dust was now being used to create an alternative energy source. This waste is turned into briquettes which are used as an alternative fuel for kilns used to season timber, dry tea, etc. and thus re-used and made environmentally friendly. Also, because of a 2006 project which expects to plant over 100,000 trees by 2011, Sri Lanka will have more Mahogany and Teak in 20 years than it has today.
Concluding, Mr. Hewavitarne attributes the rejuvenation of this old Sri Lankan institution to one group of people – his customers: “I would like to thank the people of Sri Lanka who have kept us going for 148 years. As an appreciation for all their support, we are offering an unprecedented discount of 20% for all products until the end of December.”
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Public sector enterprises must improve performance – Amunugama
http://www.sundaytimes.lk/081123/FinancialTimes/ft322.html
Over the last few years Sri Lanka has enjoyed a 6% – 7% growth, mainly attributable to steady, sustained growth by the country’s private sector. It is often forgotten that the private sector has been the growth impetus for the nation. This was observed by the Minister of Enterprise Development and Investment Promotion, Dr. Sarath Amunugama speaking at the launch of Sri Lanka’s newest consultancy, a joint venture between Somaratna Consultants and Omnex Inc of the US.
Dr. Amunugama’s remarks additionally indicated that since the next two years could prove to be challenging for manufacturers, it was now the turn of the public sector and state companies to contribute to the country’s growth by improving / maximising performance. As such they badly needed services like Lean Six Sigma to improve their output. He also added that listening to comments made by Dave Watkins (International Vice President or Omnex Inc) and K.C. Somaratna (Managing Director of Somaratna Consultants) concerning the importance of having procedures in place to facilitate planning had led to his realisation that there was a whole new area of knowledge needed to achieve this success.
The launch of this joint venture by Somaratna Consultants and Omnex Inc, held this week it is hoped will prove to benefit medium and large scale Sri Lankan companies as the newly formed Lean Six Sigma consultancy guarantees several valuable and quantifiable benefits to clients. These include a 50% improvement in throughput, a 50% inventory reduction and a 20% decrease in operating expenses, all in 6 months.
In addition, the consultancy pledges to achieve a Return on Investment (ROI) of greater than 300%, a 33% increase in profitability and 16% bottom line improvement, within in 6 months. They also promise to assess and quantify business opportunities ahead of time while integrating Lean into existing corporate strategy using Lean vision, roadmap and Lean ROI. This is all estimated to occur in six months while bottom line results may be expected in as little as three months.
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Kuwait airline’s privatisation on track for April
http://www.sundaytimes.lk/081116/FinancialTimes/ft313.html
The proposed privatisation of Kuwait’s state-run airline is progressing on schedule with the process to be concluded as early as April or June, provided everything continues to run smoothly, according to Chairman of Kuwait Airways Corporation (KAC), Hamad A. Latif Al-Falah.
Speaking in Colombo, the top official noted that privatisation would allow the currently loss-making Kuwait Airways to overcome government bureaucracy, adding that “aviation needs quick decisions.” Elaborating, Mr. Al-Falah indicated that the airline currently experiences problems across all quarters including updating its image and even with changing its seats.
Mr. Al-Falah’s comments were made at a press conference marking the 40th anniversary of Sri Lanka’s South Asian Travels being appointed as the General Sales Agency (GSA) of Kuwait Airways, which he and a delegation of senior officials of the airline attended last week.
Mr. Al-Falah further remarked that although there was a lot of demand for their flights to Kuwait from Sri Lanka, currently four times a week, and a wish to increase the number of weekly flights to Sri Lanka to six, this could occur only at a later date, when the airline acquired more aircraft. He also noted that, as it was the position of the Emir of Kuwait to forge stronger relationships with Asian countries such as Sri Lanka, it was also likely that tourism would be further promoted between the two countries. Indicating that links between Sri Lanka and the airline were already strong since many of the cabin crew were Sri Lankans.
Mr. Al-Falah had this advice for the Sri Lankan government — invest in more promotional activities in international media. Representatives of South Asian Travels, a member of Ceylinco Consolidated, took the opportunity to note that this company held the oldest continuously operating GSA of Kuwait Airways.
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Gender perspective in the Budget urged in new study
http://www.sundaytimes.lk/080928/FinancialTimes/ft308.html
Gender perspective in the Budget urged in new study
By Jagdish Hathiramani
Data from the Census of Public and Semi-Public Departments indicates glaring gender-based inconsistencies in employment patterns as well as expenditures between males and females by three key ministries – Education, Health and Agriculture.
For instance, according to the study, “female representation at the decision making levels of employment in the Ministry of Education as well as in the Departments of Examinations and Publications was quite low. At the very senior level there was no female representation in all three departments”. Also, the study states, referring to all agricultural and related institutions investigated, that “the female share of allocations and the beneficiary impact was less than parity or very much less than that proportion”.
These revelations formed part of a study examining budgetary allocations for 2007 (already expended) and 2008 (estimated) with the overall objective being to discover gender inconsistencies within the national budgetary process of Sri Lanka.
Commissioned by independent research organisation, the Pathfinder Foundation, the study was titled “Integrating a Gender Perspective to the National Budget of Sri Lanka: Ministries of Education, Health and Nutrition, Agriculture and Agrarian Service”, with highlights presented at a Sanvada (Public Seminar) organised in collaboration with the Women’s Chamber of Industry and Commerce. It was held on September 21 in Colombo.
The seminar included a presentation of the highlights of the study by its author, Dr. (Mrs.) M. Masinghe, a former advisor to the Ministry of Education and a Consultant to the Ministry of Finance and Planning. There were also comments made by Dr. S.P. Premaratne, Senior Lecturer of Economics of the University of Colombo, and Ms. Sriyani Perera, ActionAid Asia – Women’s Rights Coordinator.
Some recommendations of the study included: Allocations to be made to collect gender specific data and maintain data bases at the Ministry-level, Provincial- level and at the Central-level with every project and programme made responsible for collecting, collating, analyzing and using gender based data for project/programme planning at ministries.
In addition it was suggested to increase female representation at the decision-making levels of management and administration in the ministries which were investigated; overcome prevailing social conventions which promote male ownership of land available to public servants through transfers by promoting female public servants’ use of this facility.
It was also recommended to increase allocations for handicapped children; make the necessary financial provisions to address a shortfall in male teaching staff; make school nutritional programmes a higher priority compared to the provision of school uniforms; address reasons for high morbidity/mortality levels of males of all ages in disease categories where the male death rate is much higher than female death rate; and target the promotion of nutrition and health care of infants, children and mothers through increasing efficiency of preventive services.
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LED light panel improves effectiveness of solar energy
http://www.sundaytimes.lk/081012/FinancialTimes/ft326.html
LED light panel improves effectiveness of solar energy
By Jagish Hathiramani
Embracing renewable and sustainable energy sources (solar, wind, biogas, etc) in a bid to cut carbon emissions is an area that has become relevant to every individual in recent times. However, an issue which is still to be resolved is how alternative energy sources could keep up with the level of energy consumption currently maintained by burning fossil fuels. The answer may come from a very unusual source – UK resident, Sri Lankan Tony Newton.
By creating a way to increase the intensity of LED lights to make them comparable to 40W incandescent bulbs currently used the world over, Mr. Newton has approached the ‘consumption’ issue from a very different angle: Decrease the household energy burden by lowering the amount of energy consumed by lighting devices.
In fact, Mr. Newton claims that test cases utilizing LED lights, batteries and solar panels incorporated into homes to maintain ’sensible lighting’ have seen as much as a 20%immediate savings on the average monthly electric bill. According to the literature, this is just one in a list of multiple benefits, which include: increased efficiency through LED lights which are 90 – 98% energy efficient compared to incandescent bulbs which are only 10% energy efficient; LED lights produce none to very little heat from the load resistor depending on the supply current, whereas incandescent light bulbs dispel 200 degrees Celsius; and LED lights last 50,000 to 75,000 hours compared to incandescent lights, which last 900 to 1,000 hours.
The idea, which apparently occurred to Mr. Newton after visiting a friend outside Colombo following the 2004 tsunami, was in response to the main electricity grid being down. His realization was that many people who did not have access to the electricity grid could be helped by new technologies available in the UK. Following his idea, Mr. Newton consulted with Professor K. Balachandran of Brunel University, UK, and designed LED light panels to maximize illumination, minimize power consumption and increase their lifespan. He also carried out pilot projects and tests in UK and Sri Lanka to determine the feasibility of the LED lights. Currently, the LED lighting systems are available for purchase in the UK as a way to neutralize a person’s carbon footprints. Offered in conjunction with co2balance, UK, Mr. Newton’s LED lighting systems are primarily available to people in countries with strict carbon emissions standards.
This system allows them to earn carbon credits by investing in LED lights, a battery and solar panels for a rural home in Sri Lanka, which would ordinarily be burning kerosene oil for lighting, and thus offset their ‘heavy’ carbon emissions by contributing to the ‘lightening’ of someone else’s carbon emissions.
To date, Mr. Newton has shipped 330 LED light panels, which he has branded ‘Tia’, after his granddaughter. He has also outfitted a school in Mombassa, with plans for a further school in Kenya and South Africa. In addition, he is in the process of completing several projects in Sri Lanka, including Nithyakalyani Jewellery and the lighting of the stairway of the ancient Yapahuwa rock fortress, a charitable project which is currently pending further sources of funding.
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Sri Lankan MIT award recipient proof of power of volunteerism
http://www.sundaytimes.lk/081005/FinancialTimes/ft316.html
Sri Lankan MIT award recipient proof of power of volunteerism
By Jagdish Hathiramani
Ask Chamindra de Silva what drives him and he will probably attribute his commitment to his strong Christian values and his aim to make a difference in his lifetime, especially in bettering the lot of all Sri Lankans. What further differentiates him from others who may have similar goals is that he has already made significant strides toward achieving this ambition. Mr. de Silva is one of those rare individuals proving that not only can one directly improve one’s own community but they can also inspire others to do the same.
What makes him so special? Mr. de Silva recently became one of only two Sri Lankans recognised in the 5-year history of the Globus Indus Technovator Award (GITA), an honour awarded annually by the prestigious Massachusetts Institute of Technology (MIT), where he joins fellow Sri Lankan Prasanga Lokuge as GITA’s 2007 recipients in the Grass Roots / Developmental category. Both are part of a select group of only seven awarded this year, resulting from a pool of over 110 distinguished achievers across 10 countries who were nominated for exemplary personal achievements.
What does this award mean to him? More than anything else he felt ‘surprise’ when notified of this award. He also notes that, like many of his peers in the developmental field, he does not work for awards, stating that “the best reward is being able to make a difference for those in need.”
To understand why Mr. de Silva is deserving of this honour it is important to make note of the accomplishments for which he was singled out: A former Global Research & Development Manager at Virtusa, Mr. de Silva took a ‘sabbatical’ in 2005 to take on the challenging role of project leader for Sahana, a global disaster management tool that grew out of the 2004 Asian tsunami disaster. This suite of web-based applications which address different problems by disseminating information required for post-disaster management, such as locating missing people, coordinating different aid groups, managing aid resources, etc.
Because of Sahana’s wide potential for use in the disaster recovery process, this application has been used to manage several large scale disasters in recent years, including the earthquake in Northern Pakistan in 2005, the Guinsaugon landslide in the Philippines and the earthquake in Yogjakarta, Indonesia, both in 2006.
Although dubbed a ‘technovator’ by MIT, Mr. de Silva does not lend a lot of
credence to this term … “I believe technology can be used as a conduit for either good [or] bad”, he explains. However, he does advocate a careful assessment of technology and its fit to the environment it will be introduced into, especially if the model is to prove sustainable. For example, he suggests Sahana may not always make sense, especially if users are not computer literate. It may then prove to be more of a ‘bottleneck’ than an effective tool for disaster recovery coordination.
Meanwhile, his pride in Sahana is plain for all to see. Crediting the success of this project to its Free and Open Source Software (FOSS) platform, he notes that it has helped to improve disaster management systems in the aftermath of a large scale disaster, offering functions like tracking missing people, ‘who is doing what where’, aid management, volunteer management, shelter tracking, etc. As the software is Open Source, it has the added benefit of being a global public utility that anyone can download and use without the need for express permission.
A wholly Sri Lankan initiative, Sahana proved ultimately to be a massive project initiated by the Sri Lankan IT industry and the country’s FOSS community, as well as coordinated by the R&D Open Source organization, Lanka Software Foundation (LSF). In what has since become an example for exemplary community activism, hundreds of volunteers from the Sri Lankan IT industry and open source community came together to help their fellow countrymen and help the organisations like the Centre of National Operations (CNO) by addressing the coordination issues they were facing.
In commenting on what attributes he felt had led to his success, Mr. de Silva notes the need for “personal perseverance and passion to handle the Sahana deployed in Bangladesh ups and downs of a project and to make anything worthwhile”. He also suggests that with the right degree of passion and motivation, any goal can be achieved. Finally, he observes that success is not just about technology innovation, but it also had to do with a good understanding of the domain and learning how to collaborate and present ideas effectively to diverse groups of people.
His final recommendation: Volunteer… He advises volunteering in some socially conscious way, and adds that being a volunteer has the double advantage of not only being good for those helped, but it is also good for one’s own personal development as it often leads people to see a whole new perspective of the world. His last piece of advice: “You do not have to do big things, as the little things you can do add up and there is plenty of opportunity around you for that.”
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Ceylon Biscuits banks on strong growth in international sales
http://www.sundaytimes.lk/090215/FinancialTimes/ft336.html
Ceylon Biscuits banks on strong growth in international sales
By Jagdish Hathiramani
Munchee biscuits is already a household name in Sri Lanka with brand owner Ceylon Biscuits Limited (CBL) further saying it possesses a 60% domestic market share, a feat due in no small part to CBL’s self-professed ‘best distribution network in Sri Lanka’.
However, this may be just the beginning of Munchee’s (and CBL’s) meteoric rise, since local markets for biscuits, confectionaries and similar categories, in which CBL competes, get more and more saturated, thus the company’s brands have already made significant progress in the ongoing process of shifting their long-term focus beyond Sri Lanka’s borders in an attempt to effectively penetrate international markets.
In fact, the results have already proven exemplary, says CBL’s General Manager -Exports, Jude F. Rubera. Currently, CBL’s turnover from exports, as of the financial year ending December 31, 2008, is US$ 10 million, with the company also reporting 30-40% year-on-year growth. This performance has earned them bragging rights as Sri Lanka’s leading foreign exchange earner in exports from the processed food category, according to Mr. Rubera. These results are based on a sales territory stretching across 44 countries, including leading established supermarket chains in Europe, the Middle East and Australia currently distributing several CBL product ranges. In fact, the company’s products have proven so successful that they are the current market leaders in the Maldives. International best-sellers ‘Munchee Super Cream Cracker’ and ‘Munchee Lemon Puff’, each now available in 40 countries, have also, according to Mr. Rubera, replaced some of the top players in the world as the preferred choice for many airlines.
CBL says it has also received several local awards over the last six months for their impressive performance in the export arena, including a Gold Presidential Export Award in the Food and Beverage category as well as several Gold awards from the National Chamber of Exporters, most significant being in the ‘Best Sri Lankan Brand Exporter’ category, and Gold for ‘Export Brand of the Year’ at the Sri Lanka Institute of Marketing’s Brand Excellence Awards.
What is CBL’s secret to export success? “We are successful because we do our own brand as well as private branding for supermarket chains, etc,” says Mr. Rubera. Estimating that 90% to 95% of CBL’s export sales have been from their own brands, chiefly Munchee, Ritzbury, Tiara, Go Jelly, Lanka Soy, Cecil and Samaposha, he also indicates that balance sales come from private branding sources. Private branding is when CBL products are sold under their client’s own brand, such as in the airline and international food services industries. Mr. Rubera explains that this happens for several reasons: Sri Lanka is not known for its biscuits; Packaging may also appear too ethnic so international outlets may choose more internationally compliant packaging under their own brand to successfully sell required quantities of products.
Meanwhile, CBL’s own brands, particularly best-sellers like Munchee, Ritzbury and Tiara, are sold primarily through big supermarket chains in developed markets: Fair Price in Singapore; Spinney’s, Lal’s and Jothiram’s, all in the Middle East; Park’n'Shop in Hong Kong; and the Australian Retail Discounts chain. In other not-so-developed markets, for example in the Maldives and even some West African countries, Mr. Rubera reveals that his company “sells primarily through small outlets because of lack of big players”. He adds that “they always want to get into new markets which is how they got into the hamper trade in USA and Australia”.
So what is CBL planning for the future (especially with a deepening economic concerns looming on the horizon)? “Our long term objective is to make this range [into] strong regional brands in SAARC region,” says Mr. Rubera. Especially India, where, according to him, the company currently exports three 40-foot containers a month, which is just the vanguard for a gradual push starting from the country’s south and moving towards other parts of the subcontinent. He has also indicated a strong continuing interest in Africa. Meanwhile, regarding the current global recession, the company has encountered “a slight effect from the economic crisis in areas such as exchange fluctuations,”, says Mr. Rubera. However, he is not overly concerned by the phenomenon since he considers most of CBL’s products to virtually fall under the category of essential products for every home. Finally, Mr. Rubera indicates his wish to thank all the staff at his company because “everyone at Munchee has contributed to its success story”.
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Inventor of EZ Charcoal Stove says energy crisis blessing in disguise
http://www.sundaytimes.lk/080803/FinancialTimes/ft326.html
Inventor of EZ Charcoal Stove says energy crisis blessing in disguise
By Jagdish Hathiramani
Like a lot of his fellow Sri Lankans, Riyad Ismail believes that the future of the country depends on independence from the oppressive and nonsensical pricing of oil. Unlike them however, he has actually done something to back up his beliefs.
Meet the inventor of the EZ Turbo Stove… an energy conserving stove that allows for significant savings over LPG gas, clean burning and a host of other benefits. It was also this innovative product together with an exemplary business plan that resulted in him winning the country’s first ever Business Plan Competition, where he beat over 50 entrants to earn the coveted top prize. It is no wonder then that a man such as this – an inventor, entrepreneur and modern-day renaissance man, an advocate of creative thought, ‘undaunted’ perseverance and belief in oneself – considers today’s global energy crisis to be nothing short of a blessing in disguise.
Mr. Ismail points to man’s own shortsightedness as a cause for today’s global energy crisis: “When the price of oil was not significant, we lost sight of the need to work towards cost effective and environmental friendly solutions to our energy needs. The escalating energy costs have prompted many scientists and leaders across the world to put their thinking caps on and divest their energies to come up with less expensive and more importantly, sustainable alternatives.”
He further suggests that a focus on technologies like the fuel cell, wind, solar, bio gas and other such energy sources should be explored. His view is that these sources are appropriate for further development because they have the potential to be made less expensive and more commercially feasible.
His advice to Sri Lanka: “While striving to conserve energy both at the macro and micro level, Sri Lanka must now look within to find cost effective, environmentally friendly solutions to fulfill her energy needs. A few examples are the mini hydro projects, Dendro power projects, the pilot wind energy project which is situated in Hambantota. The EZ Stove is also a development in the right direction!”
“We as individuals must set an example to others by making an effort to reduce energy/waste. As Mahatma Gandhi said ‘Be the change you want to see in this world,” he adds. For Mr Ismail, creating a workable solution to the pressing issues affecting a majority of Sri Lankan households was the catalyst from which the EZ Turbo Stove resulted. In fact, he directly identifies several issues such as increases in the price of kerosene and LPG gas which makes it less and less affordable to consumers, increases in households reverting to wood for cooking purposes, an adverse impact on health caused by inhalation of excessive smoke from wood burning, and the negative impact on the environment due to the felling of trees for fuel.
After identifying the issues that needed to be surmounted, it was time to get to work: “The initial R&D phase was a fun time for me,” says Mr. Ismail, “as it reminded me of my university days.” He continues, “I built a small laboratory at home and experimented with many designs of stoves and with various fuels during my spare time. After many months of proto-typing and testing I came up with the EZ Turbo Charcoal Stove that I believe is the closest cost-effective alternative to LPG and Kerosene based cooking stoves.”
As to why he decided upon charcoal as an alternative to wood, LPG gas and kerosene, Mr. Ismail explains that, “Wood Charcoal is widely used in many African and Latin American countries as an alternative to wood as it emits very little or no smoke when lit and has a higher calorific value compared to wood. It is also a good substitute to fossil fuels like LPG and kerosene. However in order to make wood charcoal felling of trees is required at the expense of the environment. That is why I have chosen coconut shell based charcoal derived from coconut shells, a bi-product from the coconut processing industries and also domestic kitchens.”
One burning question remains… Can a product that is both energy conserving and socially responsible make a profit? The answer appears to be yes. Currently in its test marketing phase where it is priced at Rs. 2,350, Mr. Ismail reports that more than 300 stoves have been sold within the first three months through a single sales outlet in Battaramulla. He further states that according to a recent survey conducted to elicit feedback about the product, he discovered that more than 50% of the sales were a direct result of positive word of mouth where customers had recommended the product to interested parties.
He also noted that the same survey had revealed that there was 95% customer satisfaction with the EZ Turbo Stove. There has also been interest from overseas but, being a pragmatist as well as a dreamer; Ms. Ismail says that he believes in ‘evolutionary growth’ and wants to first achieve ‘critical mass domestically before venturing into export markets’.
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Displaced children desperately need education
http://www.sundaytimes.lk/090705/FinancialTimes/ft315.html
The biggest impact for internally displaced children in the North is the break in education they experience because of their displacement, a situation which may often prove far-reaching in terms of their development; suggests ChildFund’s National Director, Guru Naik.
As such, he indicated that ChildFund Sri Lanka will be spending between US$ 4.5 million and US$ 5.25 million on education as well as other children’s issues across the country in the coming year, with an increased focus on secondary education. This policy, according to Mr. Naik, is based on papers suggesting that although Sri Lanka has a 97-98% primary education completion rates, its rates for secondary education are “very low”.
These comments were made at the re-branding of ChildFund Sri Lanka, formerly the Christian Children Fund (CCF), which has been in Sri Lanka since 1985 and currently operates in 14 districts across the country. An important feature of the re-structuring and re-branding efforts now culminating in the new ChildFund Sri Lanka organization, again according to Mr. Naik, is the added facility intrinsic in the new structure which allows enhanced fund raising capability across several new sources, such as a bump from the previous 33 member countries network to 54 countries now. This also includes new access to 12 developed countries where the earlier network only allowed access to one.
Mr. Naik also went on to indicate that ChildFund, which currently services about 18,800 children across 44 locations, will maintain its strongest efforts in areas such as the dry zone, believed to be Sri Lanka’s most impoverished areas, and the estate sectors, both of which usually experience chronic shortages in resources for children. This is in addition to servicing children in post conflict zones, which are new hotspots due to public attention.
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Centenary at Colonial Motors
http://www.sundaytimes.lk/090726/FinancialTimes/ft315.html
Centenary at Colonial Motors
By Jagdish Hathiramani
For those in the know about Sri Lanka’s automotive history, Colonial Motors figures prominently. The first Sri Lankan company to hold agencies for Nash (long since defunct), Citroen, FIAT and Land Rover automobiles from the 1940s onwards, this institution recently celebrated its 100th anniversary.
Walking through the company’s offices, located at Union Place, Colombo 2, one cannot help but notice a mish mash of old and new; that is, at least outwardly.
The present showroom, service and repair facilities of Colonial Motors and its subsidiaries, KIA Motors and Car Plan, appear to have grown organically from elements which previously made up the original building, circa 1909, as newer structures have been added on ad hoc. Over here, a decades-old tool used as recently as one or two years ago; over there, remnants of a no-longer functioning manual lift used to raise requisition documents and lower spare parts from stores located on the top floor.
In fact, it is interesting that the original building appears to defy today’s norms, at least to the untrained eye, in that the first vehicles imported by Colonial Motors were hauled to the top floor for final assembly, this by means of a sloping driveway and a large winch.
Overall, despite outward appearances, it appears that surprisingly little has changed over the years for Colonial Motors. This 100-year old enterprise, which started out offering engineering services and selling Champion and Michelin parts (1910s to 1940s), later transitioned into car sales and now finds itself back in the spare parts market, an area which is responsible for a significant portion of its current sales.
Spare parts
Today, with group sales in excess of 250 million rupees, Colonial Motors makes more selling spare parts, such as TVS brake liners, for Tata and Ashok Leyland buses (the company is a preferred supplier to the National Transport Board), as well as from repairs than from total car sales, a situation which proves beneficial as it allows the company to place less emphasis on imports. The company’s key attribute, according to its Chief Executive Officer, Mohan Ratnayake, continues to be its vast experience, especially in Land Rover repairs (a brand Colonial Motors once held for 45 years). Taking a moment, he highlights the example of Gopalan, an employee specializing in servicing with over 15 years under his belt, suggesting an innate ability to sometimes instinctively tell what’s wrong, an attribute of years of experience.
Meanwhile, a public listing 30 years ago, in fact one of the first for a then fledgling stock exchange has seemingly evolved a company culture focusing on transparency and accountability which was far ahead of its time. Although practices of old allowed for frequent instances where children of employees were given preference for jobs, for example a current employee with over 20 years at Colonial Motors indicated that her father too had worked for the company for over 35 years, such practices have long since faded away naturally and now professional qualifications and experience hold the heaviest weight in hiring decisions. Mr. Ratnayake however is quick to point out that although nepotism does not play an active part in hiring, it is neither frowned upon nor preferred as such instances no longer arise.
However, there is no doubt that a strong family dynamic has positively influenced employee loyalty towards the company, with most of its more than 80 employees having been with Colonial Motors for over 10 years; of those, nine employees have worked over 25 years and three even having between 30 and 40 years on the job.
Many consider it a home rather than a workplace and remain throughout their work life, according to Customer Service Manager, Shivaji Supramaniam, himself a 32-year veteran of the company. A situation that sometimes proves to be disadvantageous, according to Mr. Ratnayake, as employees who have not been in any other setting may not always be current. A failing he intends to address with more new recruits to raise levels and take the required next steps.
FIAT 500
Reminiscing about a far gentler time, Mr. Supramaniam recalls that when he started working at Colonial Motors there were much fewer cars on the road while smaller car models, such as the FIAT 500 and 1100, were the ‘fad’ of the time; another indication of the cyclical nature of markets as today economical models have once again emerged as the current ‘fad’.
He also spoke of instances that have become company lore, such as the time that a FIAT was suddenly unearthed in old storage space being cleared for other uses, a startling surprise, especially since nobody knew whose car it was, how it got there and how long it had been sitting there. He also remembers how frugal times were, recalling that when new Land Rover shipments arrived, usually three cars strapped together at a time in a 40-foot container, people used to come in specifically to acquire metal wire used to secure the vehicles together because the material was of such high quality and rare over here.
Riding the tide
So what’s next for a company that prides itself on always being able to anticipate its customers? Or as Mr. Ratnayake says: “Ride the tide”. A company considered to have no competition in the local market because of the level expertise it offers; a company that first made its name in the 1940s and 1950s by selling Land Rovers primarily to plantations and FIAT 500 and 1100 models to families; a company that persevered through a two-decade lull in sales (1960s and 1970s) then rebounded with Land Rover Defender sales to the Armed Forces in the 1980s; a company that currently benefits from multiple, diversified revenue streams, including: spare parts; repairing Land Rovers (the company claims to be the leading provider of Land Rover spare parts and services in the country); KIA vehicle sales; and interest income from a 300 million rupee share portfolio acquired since the late 1970s. It’s hard to determine.
Mr. Ratnayake’s not saying anything, indicating that, since his primary responsibility is to the Colonial Motors board, it is inadvisable for him to speculate. However, he does let slip that there are plans afoot to diversify into new areas and franchises, and also, possibly, even some franchises that were held by Colonial Motors previously.
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Sri Lanka’s banking technology leads region
http://www.sundaytimes.lk/090830/FinancialTimes/ft22.html
Sri Lanka’s banking technology leads region
By Jagdish Harthiramani
Sri Lankan banking is at the forefront of banking technology in the region, according to Rajkumar Natarajan, Vice President of Cisco Systems India. Mr. Natarajan, who oversees Cisco’s operations in Chennai and Sri Lanka, was speaking exclusively to the Sunday Times FT on the sidelines of a recent Cisco event showcasing the next generation of Financial Services Industry products for the local market.
Highlighting Cisco’s track record to date in Sri Lanka, he further stated that “deployments done here are world class”, especially those in the banking, financial services and small and medium enterprise sectors, and gave examples of his company’s work with Dialog on their Wireless Fidelity (WiFi) network as well as on Sri Lanka Telecom’s Multi Protocol Label Switching (MPLS) network.
Meanwhile, Mr. Natarajan, who says he visits Sri Lanka monthly, also indicated that his most recent visit was all about talking up the benefits of next generation banking to local chief executives as well as others responsible for asset and liability management in the Retail Banking sphere.
This is because of trends by the industry which now emphasize customer experience more, according to Mr. Natarajan; a factor that has changed the face of today’s banking industry. As such, Cisco products currently highlighted include the company’s ‘innovative branch’ solutions, which offers features like ‘self-service terminals’ at branches using the Cisco Internet Protocol (IP) phone’s video facilities, ‘personalized multimedia marketing’ and premium services based on Radio Frequency Identification (RFID) technology as well as remote consultations with the investment advisers, etc. using Cisco’s telepresence facilities, etc.
Also, there were a host of other products showcased, including Meetingplace Express, Video Telephony, Softphone client, IPCC Express, DMS, 7921 wireless phone and IP Surveillance. All intended to improving customer experience by providing greater bandwidth, a more personalized service and faster transaction processing for greater user convenience.
Discussing Cisco’s plans for the future, Mr. Natarajan highlighted the companies increasing focus on providing advisory services, especially since product differentiations were getting ‘thinner’ all the time. He further championed Cisco’s new products geared towards the connected real estate field, such as building management systems and green building products, an area of great potential in the future. Explaining that proposals put forward to the government of India’s Karnataka state and others for connected real estate projects had yet to be approved, Mr. Natarajan indicated that Cisco had to date completed a successful connected building project for Malaysia’s YTL group.
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Developing nation consumers prefer mobiles for Internet access
| http://www.sundaytimes.lk/090830/FinancialTimes/ft14.html
Research suggests that, in most developing countries, like Sri Lanka, consumers feel more comfortable using mobile phones than computers. As such, more consumers access the Internet through wireless means, such as by mobile phones. This is according to Nokia’s General Manager for Emerging Asia, Prem Chand, who also added that current estimates indicate that 4 billion people have mobile phones; more than those who own computers. He attributed this to the medium’s affordability, and accessibility, as cables, physical connections, etc. are not required for access to service. Mr. Chand, who was visiting Sri Lanka after a lag of two years, indicated that a lot had changed since he had last visited. A feeling of greater confidence by the people he met for one, also greater growth in broadband offerings as well as mobile companies having done well in making technology available to consumers. Additionally, while he was encouraged by his talks with government representatives and he felt that they had a good, balanced view of the local mobile telephony sector, Mr. Chand pointed out that there were several ‘downsides’, such as: many ‘behind the scenes’ taxes on the industry, which proved to be an additional burden on consumers as well as leading to increases in illicit trade. This supposedly also caused products to be illegally imported so governments would be deprived of revenue and consumers would be cheated by inauthentic products and, in extreme cases, may even be affected by products with questionable safety standards. Mr. Chand also suggested that major concerns for the mobile telephony sector would continue to be areas like duty structure and intellectual property rights protection because companies like Nokia invest heavily in research and development and these areas impact profitability. Commenting on the way forward for the industry, Mr. Chand noted that Nokia was planning for a future where it would ‘transition’ to being more of a provider of services and applications to customers rather than a hardware manufacturer, because mobile devices were now commodities. He also promoted Nokia’s increased focus on areas like its Ovi store for music, etc. and OviMail as well as its efforts in future trends such as ’social location’, which allows mobile phone users to always be kept updated about the physical proximity and status of friends in their network by way of global positioning technology. He further indicated that in countries like Bangladesh, Thailand and the Philippines there was already an increasing emphasis on services and applications by consumers compared to hardware. |
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Developing nation consumers prefer mobiles for Internet access |
| Research suggests that, in most developing countries, like Sri Lanka, consumers feel more comfortable using mobile phones than computers. As such, more consumers access the Internet through wireless means, such as by mobile phones. This is according to Nokia’s General Manager for Emerging Asia, Prem Chand, who also added that current estimates indicate that 4 billion people have mobile phones; more than those who own computers. He attributed this to the medium’s affordability, and accessibility, as cables, physical connections, etc. are not required for access to service.
Mr. Chand, who was visiting Sri Lanka after a lag of two years, indicated that a lot had changed since he had last visited. A feeling of greater confidence by the people he met for one, also greater growth in broadband offerings as well as mobile companies having done well in making technology available to consumers. Additionally, while he was encouraged by his talks with government representatives and he felt that they had a good, balanced view of the local mobile telephony sector, Mr. Chand pointed out that there were several ‘downsides’, such as: many ‘behind the scenes’ taxes on the industry, which proved to be an additional burden on consumers as well as leading to increases in illicit trade. This supposedly also caused products to be illegally imported so governments would be deprived of revenue and consumers would be cheated by inauthentic products and, in extreme cases, may even be affected by products with questionable safety standards. Mr. Chand also suggested that major concerns for the mobile telephony sector would continue to be areas like duty structure and intellectual property rights protection because companies like Nokia invest heavily in research and development and these areas impact profitability. Commenting on the way forward for the industry, Mr. Chand noted that Nokia was planning for a future where it would ‘transition’ to being more of a provider of services and applications to customers rather than a hardware manufacturer, because mobile devices were now commodities. He also promoted Nokia’s increased focus on areas like its Ovi store for music, etc. and OviMail as well as its efforts in future trends such as ’social location’, which allows mobile phone users to always be kept updated about the physical proximity and status of friends in their network by way of global positioning technology. He further indicated that in countries like Bangladesh, Thailand and the Philippines there was already an increasing emphasis on services and applications by consumers compared to hardware. |
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Local companies yet to face true global competition
http://www.sundaytimes.lk/090830/FinancialTimes/ft51.html
Sri Lankan companies have been living in a ‘vacuum’ for 30 years where, because of the perceived unattractiveness of the country’s business climate to the outside world, local companies were yet to face true levels of international competition, according to top corporate leader Ajit Gunawardena, Deputy Chairman of John Keells Holdings. Indicating that existing track records may prove ‘irrelevant’, he recommended companies ‘flatten’ organizational structures and ‘inject new, younger leaders in the next two years’; a by product of which would also be the propelling older, more entrenched leadership to greater performance.
Mr. Gunawardena’s comments were made at a CEO Forum kicking-off the inaugural Human Resources (HR) Summit organized by SLASSCOM, a recent event attended by ‘400 leading HR professionals, senior leaders, HR students and business managers’. Mirroring his sentiments was Husein Esufally, Group Chief Executive of Hemas Holdings, who noted that, while many international companies had not yet entered the country, this circumstance would change, adding that Sri Lankan companies were ‘not ready’ for the competitiveness characteristic of the global marketplace.
Also participating in SLASSCOM’s HR Summit, Chairman of the Ceylon Chamber of Commerce, Dr. Anura Ekanayake, indicated that it was time chief executives and the HR community look beyond the norm and experiment when recruiting, suggesting areas such as proficiency with languages, family background, etc., especially at times when demand outstripped availability.
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Healthcare and telecom sector lead 3M Lanka sales
http://www.sundaytimes.lk/090906/FinancialTimes/ft37.html
Healthcare and telecom sector lead 3M Lanka sales
By Jagath Hathiramani
Recently marking its 15th year in Sri Lanka, 3M Lanka’s turnover has achieved US$ 5 million, according to the company’s General Manager, Suren Rajanathan, a figure based on the popularity of several products, namely:Micro pore surgical tapes, Littmann stethoscopes, car detailing and fuel system cleaner products, Nomad mats, energy saving film, Scotch tape, road signage and desk and office cleaners.
While most sales have resulted from 3M Lanka’s presence in the healthcare sector, the local branch’s best-performing portfolio so far, telecommunications sales have proved the second biggest draw, with 70% of all sales attributed to Sri Lanka Telecom and its Visioncom and SLTS subsidiaries.
In fact, according to Mr. Rajanathan, fully 70% of 3M Lanka’s profits result from three main businesses: Healthcare, Electro-Telecommunications and Security Systems, and Industrial Adhesive Tape and Occupational Health and Environmental Safety business units, the last reportedly “closely” influenced by the performance of the apparel industry.
Observing that investments totalling more than US$ 2 million have been made since the start of local operations 15 years ago, Mr. Rajanathan also revealed that 3M Lanka’s primary market remains sales to other businesses, who he terms “big players”, instead of end users. A market tapped through a network of 25 business partners and 35 mostly sales staff offering the 35 to 40 technologies available domestically, a number put into greater perspective by the fact that 3M’s global product portfolio reportedly numbers more than 500.
Meanwhile, Mr. Rajanathan’s expectation for the future proves to be only positive, a situation alluded to by the burgeoning growth expected in associated sectors or, in his own words, because of “Sri Lanka’s focus on infrastructure development, advancement in the health care service sector, focus on sustainable/renewable energy and energy management and the opening up of North and Eastern parts of the island for development, etc.”
As such, the next generation of growth, again according to Mr. Rajanathan, can be expected in related areas such as corrosion protection, advanced wound care, traffic safety systems, digital signage and renewable energy, the last of which already experienced demand in energy management solutions with demand in power generation solutions, wind energy and photovoltaics anticipated.
Moreover, Mr. Rajanathan insists that 3M’s relationship with Sri Lanka goes beyond just one way – sale of imports in the domestic market place: “‘Taking local brands global’ is one of the most important initiatives of 3M Sri Lanka over the last 15 years. For example; Dipped Products PLC of Hayleys Group produces latex gloves for 3M worldwide subsidiaries under 3M Scotch Brite brand”.
As to whether 3M Lanka has been responsible for any of the 500 products making up the global portfolio, Mr. Rajanathan says that, while the local office has been involved in “the early stage of (the product development process)”, the outcome remains, as yet, “too early for us to disclose”.
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Sri Lankans’ potential yet to be fully tapped
http://www.sundaytimes.lk/090920/FinancialTimes/ft15.html
Sri Lankans are marked by their untapped potential, according to HSBC’s Regional Head of Learning, Talent, Resourcing and Organisation Development for Asia Pacific, Michael Fracarro. Elaborating, he noted that this was because they were often well qualifed to take on broader roles in other areas; a capability he had come across time and again during his interactions with Sri Lankans working offshore within the HSBC network.
Mr. Fracarro made these remarks during an interview with the Sunday Times FT on the sidelines of an exploratory two-day visit to Colombo, his first, during which he led a regional Human Resources (HR) Town Hall meeting with local HR staff and met with local senior management to ‘understand the local business, its capabilities and requirements to render his support in implementing best HR practices’.
Of the global bank’s local operations, Mr. Fracarro noted that the Sri Lankan HR function of the bank had proven to be a key driver, especially during the country’s turbulent past, in managing the anxiety of employees, maintaining high engagement with staff and providing opportunity.
He further highlighted the relevancy of local HR efforts, indicating that it was because they maintained a ’sense of stability’ as well as a ‘reputation for training’ that HSBC’s status as one of the top choices for young Sri Lankans entering the workforce was consistently earned; a situation with which the bank is growing increasingly familiar as fully 70% of staff are currently below 40 years of age.
Mr. Fracarro also credited referrals by staff and the Chief Executive’s active role in the business community as central to securing the strong interest by potential employees that the bank enjoys.
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WSO2 Carbon wins InfoWorld award
http://www.sundaytimes.lk/090920/FinancialTimes/ft23.html
Sri Lanka’s WSO2 Carbon software, just introduced in February 2009, has been recognised with an award from influential online publication InfoWorld.com, the current wholly online incarnation of a magazine of the same name started in Silicon Valley in 1978.
The product which received InfoWorld’s 2009 ‘Best of Open Source Software’, or “Bossie”, award was one of only nine awarded in the competition’s ‘platforms and middleware’ category, with the overall awards also encompassing areas such as developer tools and enterprise and networking software. Other winners in WSO2 Carbon’s category included Jitterbit, Talend, Nginx, Mule, OpenVZ, Xen, VirtualBox and Linux Turnkey, while more mainstream products such as WordPress also won “Bossie” awards in other categories.
Announced on August 31, the “Bossie” awards are reportedly given out by the InfoWorld Test Center, which claims ‘enterprise hardware and software reviews written by experienced IT people’; and further, according to a statement by WSO2, the local company credited with creating Carbon, this year’s “Bossie” awards identified the “top 40 most promising and cost-effective products available to IT organizations”.
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Lankan manufacturing base to export 4,000 computers monthly to Pakistan
http://www.sundaytimes.lk/090920/FinancialTimes/ft26.html
A new entrant into the Sri Lankan market, Dubai-based Ezy Infotech, has made public its intent to use the country as a manufacturing base from which to export 4,000 computers a month to Pakistan. This came on the heels of the company’s announcement , some weeks back, that its first consignment of 600 units had left for Pakistan on September 9. Further, this goal would be aided by recent appointments of distributors – Decent Computers in Lahore, recipient of the initial order, and Optimum Technologies in Karachi, currently awaiting delivery of an order for 500 units – who have already “expressed an interest in marketing the entire range” of the company.
This according to the company’s Chief Executive for Sri Lankan operations, Shafraz Hamzadeen, who also signalled the company’s desire to export locally made computers throughout Asia, ‘barring India where they already have a manufacturing plant and a very strong presence’. While indicating that the company had “a very aggressive marketing strategy”, he also suggested that future exports would target the Maldives, Laos, Cambodia, Malaysia, New Zealand and Australia, further hinting that the company had set its sight on Bangladesh next where it was “currently in the process of appointing a distributor”.
Meanwhile, as Mr. Hamzadeen sees it, the company’s ‘biggest competition’ would be from China because “they too manufactured low cost computers”. He added: “However China has one great drawback with respect to their internal transportation, where sometimes it takes as much as three weeks for goods to reach the nearest port from the manufacturing plant while an EZY computer exported from Sri Lanka, could be sold within that particular country even before a Chinese computer leaves the Chinese port”; additionally claiming that his products ‘could be sent to the country of export within 10 days of manufacture’.
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New IT-BPO workforce survey expected in December
http://www.sundaytimes.lk/090920/FinancialTimes/ft27.html
A new nationwide survey of Sri Lanka’s IT-BPO workforce is expected in December this year. Reportedly encompassing “about 600 organizations including government departments and ministries, non IT companies (ICT users), software/hardware companies, BPO companies and IT training organisations”, the survey is an undertaking of Sri Lanka’s Information and Communication Technology Agency (ICTA) and MG Consultants (Pvt) Ltd.
This according to a statement by ICTA, which also added that the goal of the survey is “to elicit a clear understanding of the extent and the composition of IT-BPO workforce in Sri Lanka and weigh it against the supply of skilled personnel”.
It has further been indicated that the survey, which will begin its data collection stage from the third week of September onwards, will collect information on “overall size and distribution of the ICT workforce, anticipated gaps between supply and deman for the next year, employment opportunities”.
The third such undertaking, there were two prior surveys completed in 2005 and 2007. The 2007 survey is reportedly available for download free of charge at www.icta.lk/pdf/ICTWorkforcSurvey2007.pdf and offers the following conclusions among many others: “IT workforce in Sri Lanka grew by nearly 10,000 over the two years from 2004″, “14,500 IT workers are required in the next two years (2007-2008)… demand for 7,672 IT workers in 2007″ and “5,755 graduates are needed in 2007 but only 2,216 IT Major graduates will be added to the workforce this year”.
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Wireless, high speed data transmission ‘critical’ for North and East
http://www.sundaytimes.lk/090927/FinancialTimes/ft42.html
Wireless, high speed data transmission ‘critical’ for North and East
By Jagdish Hathiramani
A conference to be held in Colombo in October will promote wireless broadband (high speed data transmission) technologies, such as WiMax and LTE, as ‘critical infrastructure’ for the improvement of the North and the East. In fact, according to Dr. Zoran Miljanic, Head of Technology Networking International (TNI), the event’s organizer, any new ICT introduced into the area “creates opportunities by exposing people across the economic classes, professional fields and age levels to newer ways of doing things and doing it more and more efficiently as the role of ICT and computer literacy of workforces increase”.
Dr. Miljanic’s comments were part of a recent TNI announcement launching the 2nd South Asia Broadband Communications Conference and Expo. Scheduled for October 6-7, 2009, at the Hilton Colombo, the event will encompass “leading vendors, regional operators, service providers, regulatory agencies, [and corporate customers]“. Meanwhile, this event was last held, also in Colombo, in 2007.
Expected to highlight the broadband landscape across Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka, this two-day conference plans to offer presentations by government, corporate and technology leaders as well as panel discussions covering the potential of broadband across emerging economies in South Asia, including in areas such as: “Metro Ethernet Services and Applications”, “Broadband Wireless Technology”, “Infrastructure Solutions and Services”, “Emerging Communications Paradigms and Network Services”, “Next Generation Broadband Infrastructure” and “Service Policy, Reforms and Economy behind Broadband Telecommunications”.
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MillenniumIT offered a stake first, says CEO Tony Weerasinghe
http://www.sundaytimes.lk/090927/FinancialTimes/ft44.html
MillenniumIT offered a stake first, says CEO Tony Weerasinghe
By Jagdish Hathiramani
Last week’s revelation that the venerable London Stock Exchange (LSE) had agreed to acquire Sri Lanka’s Millennium Information Technologies (MillenniumIT) came out of the blue for many Sri Lankans. But what might prove stranger still was how the idea for LSE’s buyout offer initially originated.
In an exclusive interview with the Sunday Times FT, MillenniumIT’s Chief Executive, Tony Weerasinghe, opens up about the background of the LSE transaction and the direction in which the company he founded is now headed.
First, how did LSE go from MillenniumIT’s potential client to its probable parent? “We knew that LSE was looking for alternatives to its TradElect platform. However, we’ve been in a lot of situations where Millennium, even whilst providing the best solution, was overthrown by the customer’s Board, due to the size of our balance sheet. Once we knew we were the clear winners coming out of the technical committee, we didn’t want the same to happen with LSE. Therefore, we asked whether they would be interested in a stake”, says Mr. Weerasinghe.
He adds that LSE was pleased with this suggestion as they wanted to “ensure that none of their competition would buy us” and LSE eventually countered with a proposal for acquiring a majority stake of MillenniumIT. Further, the LSE buyout already seems to have positive effects for MillenniumIT. “[Some] of the prospective customers who are in the pipeline, who were debating our balance sheet, will now have the comfort of awarding these sales to us. Two have already committed and the third is coming to Sri Lanka before the end of the month”, notes Mr. Weerasinghe. Also, he reveals “there’ll be plenty of capital injections, more hiring and ramping up of operations soon”, a situation which will no doubt help MillenniumIT’s future dealings.
Also, there appears to be yet another aspect of this deal which Mr. Weerasinghe eagerly anticipates: “On numerous occasions we have lost deals and have not even been invited to take part in [Request For Proposals] due to the fact that we are not an exchange. Our competition comes from large exchanges, namely NYSE/Euronext, NASDAQ and Deutsche Borse. As you know, these are three giants in the world and the reasons for traditional exchanges to select them are more than technology”, he says, adding: “Now, with LSE, we will have the same status that they enjoy, with better technology”.
Meanwhile, he indicates that not much will change in the day-to-day running of MillenniumIT. “There will be no impact to our current business. The difference is now we have a tier 1 exchange as a client. Millennium will supply any product that we sell as to any major client”, according to Mr. Weerasinghe. He continues that there will be “a separate team as [with] all our big clients like ICAP and AMEX for LSE. With respect to the other IT requirements where Millennium does not have any products, LSE will invest in a separate outsourced software development unit for LSE. This will come under direct LSE management where LSE will source programmers from Sri Lanka”.
“Millennium has never been in the outsourcing business and never will, therefore we will continue to innovate and come with products for all our clients”, affirms Mr. Weerasinghe. For now, the future seems bright for this Sri Lankan success story which, momentarily, remains the toast of ‘the City’.
A company spokesperson said the company name will remain unchanged.
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Computerization of state-owned land to minimize ‘irregularities’
http://www.sundaytimes.lk/090927/FinancialTimes/ft47.html
All information pertaining to government-owned land in the Western Province, encompassing the Colombo, Kalutara and Gampaha areas, will soon be available on a computer database thanks to a project initiated recently.
The project’s rationale – to ‘minimize the various irregularities that allegedly occur in handling state-owned lands and improve the efficiency of releasing lands for the purpose of agricultural activities, residential purposes and industries’. Further, the Western Province is just the first step in the planned computerization of all information relevant to state-owned lands island-wide, achieved with the assistance of the relevant Provincial Council.
This project, which will be undertaken by the University of Colombo’s School of Computing (UCSC) under contract to the Western Province Land Commissioner’s Department, was initiated by Sri Lanka’s Information and Communication Technology Agency.
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Private sector still hesitant to invest
http://www.sundaytimes.lk/091004/FinancialTimes/ft36.html
Private sector still hesitant to invest
Sunday Times FT poll
By Jagdish Hathiramani
A poll this week by the Sunday Times FT suggests that an overwhelming majority, 75% in fact, feels that the private sector has been slow in taking advantage of investment opportunities brought on by the end of the war.
Meanwhile, 21.4% disagreed with this assertion, citing rapid expansion by conglomerates such as JKH (John Keells) as well as the recent Hemas Power IPO and increasing land prices as to why they felt otherwise. At the same time, the poll also indicated that, while most respondents (57.1%) thought that a lack of new investment was less because of a ‘wait and see’ stance by the private sector with regards to the upcoming national budget and possibly a greater aversion to risk, 28.6% opined that it was in fact ‘waiting for the budget’. Notably, a significant number of respondents (14.3%) remained undecided as to the impact of the budget on the private sector’s decision making process.
Asking for “Yes”, “No” and “Undecided” answers to “Is the private sector/businesses slow in responding to the call to increase investment/create jobs in Sri Lanka following the end of the conflict in May 2009?” and “Is the private sector waiting for the budget to invest in the post-war economy”; the Sunday Times FT Poll utilized a convenient sampling methodology, via email to a frequently tapped database numbering in the hundreds, to tap public opinion from private and public sector business leaders, decision makers and employees in sectors as diverse as finance and banking, IT, services, telecommunications, garment and textiles, electronics and others.
Importantly, the poll also captured comments from several respondents, ranging from the clinically analytical to the highly emotional; which ultimately prove to be an eye-opener regarding why the business community was practicing greater caution, no matter what new opportunities were said to be available.
In fact, due the intricacies of the issues said to impact this area, as identified by the small sample responding to this poll, a host of new avenues for further study presented themselves. The potential areas and ramifications pertaining to this issue are widespread.
As a result of a request for five reasons to be furnished by those answering “Yes” to “Is the private sector/businesses slow in responding to the call to increase investment/create jobs in Sri Lanka following the end of the conflict in May 2009?”, the Sunday Times FT poll was able to garner a ‘deep’ understanding of issues faced:
From a ‘wait and see’ approach by businesses, to a lack of funds needed for expansion, whether because of a slowdown in consumer spending or a global recession inhibiting exports, to even one or two comments identifying “GSP+ uncertainty” as the limiting factor; there seems to be no shortage of reasons why local private sector firms are wary of committing resources beyond what they deem essential for maintaining business as usual.
While just a few comments forming the majority opinion follow, it must be noted that numerous, some very detailed, had to be excluded because of space restrictions:
- Our revenues have to stabilize (from existing businesses), then expansion will happen
- No real growth recorded in North and East. Estimates say that it will take another 12 months for these two areas to start generating real income
- Export market should see a turn around for the economy to really recover
- Private sector does not invest/ create jobs because a call is made. They do so to earn profits and enhance shareholder value
- Despite all the euphoria in the aftermath of the war victory many marketers would admit that the sales figures are either static or have been below last year. Perhaps the post-war boom expected by the business economy is taking much longer than expected
- Too much red tape
- Obviously government must first show its commitment and prepare a conducive environment to make it happen
- Wait and see attitude
- Lack of focus in creating chains between the rural production sector and the elite export and manufacturing sector
- There is no agenda set out by either government or the business associations (who don’t always have to watch and wait for government to steer the path) on a post war economic recovery – it needs to spell out available opportunities for investments, areas that need development – basically an overall plan for development
- The chambers of commerce should be taking a leadership position, steering the path, setting policy, not waiting for handouts from the ones that run the company. How can the private sector move if things are not in order?
- All that is highlighted in the media on post war is the IDP issue and general doom and gloom. Things are not looking up
- There was investment and growth even at the worst of times. So was conflict the problem? Are we asking the wrong question? Is it the conflict or something else?
- GSP+ uncertainty. Quite a number of garment factories have closed
- Declining consumer purchasing power. Companies are looking to keep above break even point until a more positive environment prevails
- Budget shops growing in popularity not a good sign
Meanwhile, it is notable that, of the very few comments from those believing the private sector had in fact already started investing en masse; there was one respondent who identified “a lack of coordination between the private and the government sectors. Some officials do not understand the needs of the private sector [which] has resulted in slow movement of things”. This commentator further suggests “setting up of a joint task force [to solve] some of the problems which hinder rapid pace of new investments”.
In response to “Is the private sector waiting for the budget to invest in the post-war economy”, comments proved to be more balanced. One respondent indicated they would “rather wait for things to happen or real implementation” while another said “budgets have always been bad for the general business. In recent years tax holidays for some businesses had been countered by higher taxes for the rest of the economy through various new forms of taxation.
Having said that it is always better to get the budgets out of the way, so that the burden and hindrances are known at least for a year”. Another, possibly more pragmatic, respondent goes even further, suggesting “the next budget would have to keep to the IMF conditionalities.
The sticking point would be the bringing down of the projected budget deficit from what it is looking like now – 10% to 7%. This will mean raising revenue by additional taxation and reducing expenditure on both recurrent and the capital side”.
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Lanka’s FDI must double – CB Governor
http://www.sundaytimes.lk/091011/FinancialTimes/ft22.html
Lanka’s FDI must double – CB Governor
By Jagdish Hathiramani
Sri Lanka must attract Rs. 2 billion in foreign direct investment, or 5% of its gross domestic product, compared to current figures which are closer to Rs. 1 billion, according to its Central Bank Governor, Ajith Nivard Cabraal. He added that, while on track to meet its estimates of 3% growth this year (a figure officially revised recently by the Central Bank to 3.5%), he believed that the economy could grow by 6% next year.
Meanwhile, he indicated that the government was currently designing programs to bring down poverty to 5%. Mr. Cabraal also pointed to the country’s successful curbing of inflation, from an all time high of 18% last year to less than 10% this year, while, at the same time, touching upon the circumstances around Sri Lanka’s July acquisition of a US$ 2.6 billion International Monetary Fund loan facility; he commented that the impact of delays in receiving this facility were minimized as a result of a plan being in place to temper possible “shocks” being passed down to consumers. He also indicated that the country’s next hurdle would be in achieving a US$ 3,000 per capita level from Sri Lanka’s current per capita income of US$ 2,014, up from US$ 1,000 in 2003; a situation which would allow the economy to “reach a new momentum”.
Mr. Cabraal made these comments at the 25th anniversary convention of the country’s Association of Professional Bankers which he opened in Colombo recently by saying Sri Lanka was “truly on the threshold bouncing back” and “the doors are open.” He also urged the assembled group, which included the heads of Sri Lanka’s major banks, to provide cheaper credit to customers while at the same time maintaining appropriate controls.
In addition, he used this venue to highlight the government’s various development initiatives, from the construction of ports to power generation projects, oil exploration and the setting up of economic zones. While indicating that opportunities for growth and investment existed in sectors such as tourism, IT-BPO, gems and jewelry, agriculture, etc., he stated that the government had already sunk “large amounts of public investment” into village level development.
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UPDATE -LSE completes MillenniumIT acquisition
http://www.sundaytimes.lk/cms/article10.php?id=4226
UPDATE -LSE completes MillenniumIT acquisition
2009-10-19 15:52:19
The London Stock Exchange (LSE) group on Monday announced that its acquisition of Sri Lanka’s MillenniumIT has been completed.
It was revealed at a media briefing today that a 100% buyout of MillenniumIT by LSE was finalised for US$ 30 million as well as a share swap where MillenniumIT shareholders received shares in the publicly listed LSE. It further emerged that, aside from MillenniumIT employees’ shareholdings, the company also counted HSBC and Citibank as significant shareholders, while Chief Executive, Tony Weerasinghe, held a 16% stake.
According to Mr. Weerasinghe, MillenniumIT is a 450 employee company with an asset base of US$ 15 million which has experienced double digit growth year on year since its inception. He further indicated that much of its turnover had been invested back into development for the company’s products, etc. He also opined that “London is a strategic deal for us; we don’t consider it a buy over”. In Sri Lanka, MillenniumIT officials indicate that they currently support automation for the Colombo Stock Exchange, while officials of the country’s Securities and Exchange Commission also announced today that a Rs. 20 million deal is expected on Tuesday with MillenniumIT “to set up a new electronic surveillance system to track market manipulation and insider deals”.
In total MillenniumIT counts 15 exchanges as customers, a number set to rise to 21 when LSE’s exchanges go online with it in 2010. Further, Mr. Weerasinghe indicated that the company had already received Request For Proposals from a number of potential customers while a number of prospects had “come back to the fore”. He added that two clients had already been signed since the LSE acquisition was announced; agreements which would ordinarily have taken upwards of six months or more to finalise.
According to LSE’s Chief Executive, Xavier Rolet, this transaction was a “real opportunity to create something new representing the growth and opportunity that economy can create”. He further indicated that this was not simply about backward integration for LSE but also “about giving the tools and means to MillenniumIT to significantly increase its footprint”, allowing MillenniumIT to overcome its only “handicap”, its balance sheet.
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Capital must be wooed to Lanka – top HSBC official
http://www.sundaytimes.lk/091025/FinancialTimes/ft08.html
Capital must be wooed to Lanka – top HSBC official
By Jagdish Hathiramani
While the mood in the local market remains upbeat and optimistic after the end of a three-decades long conflict, this is not going to do it alone; there has to be a strong pull to attract the necessary capital as well as a reduction in bureaucracy, better execution and a stronger will on the part of the government, says HSBC Asia Pacific’s Head of International, Paul Leech.
He further cautioned that it was “important to move now” since “international capital doesn’t hang around”. Speaking exclusively to the Sunday Times FT on the occasion of his second official visit to Sri Lanka, his first being two years ago, Mr. Leech noted that there had been a “remarkable” change of mood, with the customers being “very quietly optimistic about Sri Lanka’s new era”.
He further indicated that the local operation remained open for business and immediate plans included expanding its asset and credit card bases while continuing to grow its local balance sheet, people, branches, etc., as evidenced by HSBC’s plans to “shortly” open a branch in Jaffna.
When asked to comment on a recent appeal to the heads of local banks to make credit more accessible by Sri Lanka’s Central Bank Governor, Ajith Nivard Cabraal, Mr. Leech indicated that, while “this sort of appeal” had been made by a number of countries, banks were only a catalyst; adding that it was “not a supply of credit issue” as “underlying commercial demand for new lending has been muted”. He did admit however that “all banks were a little bit muted right now” and “not as aggressive” with some being “reticent to take on new borrowing”.
Meanwhile, he did note that there was no drop off in development projects with HSBC’s local operations facilitating US$ 1 billion in infrastructure financing in the last 18 months. In fact, he indicated that the bank had been instrumental in a number of new, big projects, from Colombo’s South harbor to the recent bond deal to the London Stock Exchange’s acquisition of Sri Lanka’s Millennium Information Technologies, completed this week, for which HSBC “handled the financial flow” for its major global client, the London Stock Exchange.
Referring to the regional financial situation, Mr. Leech indicated that while Asians were typically “chastened” by today’s global financial conditions, their mood remained “optimistic”. This was particularly the case with emerging markets where most banks were shielded from the worst of the so-called “toxic assets”.
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10% of Sri Lankan foreign labour faced abuses in 2001
http://www.sundaytimes.lk/091025/FinancialTimes/ft13.html
In 2001, 10% of Sri Lanka’s migrant labour faced abuse of a physical, psychological or sexual nature, with low skilled categories subjected to high levels of abuse. In 2007, there were 8,445 complaints received, a new study shows.
Meanwhile, Sri Lanka earned 7% of its Gross Domestic Product (US$ 3 billion) from remittances attributable to foreign workers, 80% of these from Middle East countries and about 18% from Europe. These earnings made up 36% export earnings and 21% import payments, and have become the leading source of foreign capital to the country, overtaking inflows from foreign aid and foreign direct investment.
There are presently 1.8 million Sri Lankans estimated to be working abroad with 250,000 being the annual outflow of workers; 21% of the country’s total 2007 labor force. In addition, Sri Lanka also had the highest rate of expatriation of doctors to OECD countries and the third highest rate of expatriation of nurses.
The majority of Sri Lanka’s foreign workers proved to be housemaids or unskilled workers (together 70%) while 24.7% were skilled. 82% of all local labor was expatriated to Saudi Arabia, Kuwait, Qatar and the United Arab Emirates. Housemaids or unskilled workers remitted 80% of their income back home, while skilled labour mostly spent their income abroad.
These facts were revealed at the launch of the first edition of the “International Migration Outlook – Sri Lanka 2008″ country report commissioned by the International Organization for Migration.
The report, which was compiled by Sri Lanka’s Institute of Policy Studies and based on data gathered from the “Department of Emigration and Immigration, Sri Lanka Bureau of Foreign Employment, the CID, the BOI, Sri Lanka Tourist Board, and Foreign Diplomatic Missions in Sri Lanka, IOM and others”, also identified a number of areas of concern for the future of the country’s foreign employment sector, including: a “skills mismatch of what is demanded by foreign countries and what Sri Lankan workers could offer”; a “tremendous need” to make zonal remittance centres available to rural parts of the country; and a lack of conventions with the Middle East (currently only signed memorandums of understanding exist) pertaining to the treatment of Sri Lankan foreign employees.
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30,000 expected at e-Asia 2009
http://www.sundaytimes.lk/091025/FinancialTimes/ft19.html
About 30,000 visitors are expected at the forthcoming e-Asia 2009 ICT exhibition scheduled for December 2 onwards at the BMICH in Colombo, Sri Lanka.
These visitors will represent 45 countries, with most being from Asia, while 1,000 international delegates and 800 locals are expected to participate at e-Asia’s conference which will include “40 thematic seminal sessions covering e-Governance, Digital Learning, e-Health, Tele-centers and Emerging e-Technologies,” according to a statement by Sri Lanka’s Information and Communication Technology Agency (ICTA).
Also indicating that interest in the event was “gathering momentum”, the statement referred to recent remarks by ICTA chief Reshan Dewapura who noted one example of international interest in the conference is “the response to the call for papers far [exceeding] expectations. By the deadline there were more than 350 papers from 24 countries including India, Sri Lanka , Sweden, Philippines, Japan, Israel, Nepal, Cambodia, China, Bangladesh, Uganda, USA, USA, Malaysia, Albania, Australia, Japan, Morocco, France, Switzerland, Argentina, Egypt, United Kingdom and Kenya”. He added: “One specialty of e-Asia 2009 is the addition of another thematic sector, namely Emerging Technologies and the highest number of papers are from this category, namely 102, while e-Government has 65, Digital Learning, 96, e-Health, 62, and Tele-center Forum, 30”.
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First time SL buyers at HK trade fairs offered free hotel stays
http://www.sundaytimes.lk/091025/FinancialTimes/ft29.html
The Hong Kong Trade Development Council (HKTDC) is offering incentives including free hotel stays and discounted travel to Sri Lankan buyers and exhibitors planning to participate in its exhibitions for the first time. Offered on a first come, first served basis until March 2010, this offer is a part of a “US$10.3 million (HK$80 million) buyer sponsorship package” which is the cornerstone of HKTDC’s new push to tap emerging markets, prompted by lagging demand from traditional sources such as USA and Europe.
A shift based on survey findings indicating that the current financial situation has impacted buyers from emerging markets less, a single digit drop, compared to their counterparts, says HKTDC’s Manager Exhibitions, Peggie Liu, who recently addressed the media while in Colombo to promote HKTDC activities to organisations such as Sri Lanka’s Export Development Board, National Chamber of Commerce, Tea Board, etc. Meanwhile, highlighting Sri Lanka’s involvement with HKTDC events in the past, Ms. Liu indicated that the country had to date mostly participated in trade fairs geared towards apparel, electronics, jewelry and gemstones and gifts.
In addition, she suggested opportunities for local sea food at the food expo and coir and coconut charcoal at the houseware fair, while also noting Sri Lanka’s recent successful fielding of seven companies (out of a total of 259) at the inaugural tea fair held in August this year.
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Testing shows 92.7% emissions reductions via X-1R
http://www.sundaytimes.lk/091025/FinancialTimes/ft22.html
Emission testing conducted by the Open University of Sri Lanka has indicated that using X-1R products can “safely reduce” emissions up to 92.7%. Further, prior testing of these products by the same university in the area of fuel efficiency had shown improvements in “Diesel Vehicles up to 27%, Petrol Vehicles up to 12% and an increase in Horse Power up to 4%”, acccording to a statement from Quantum Tele-shopping, the products’ local agent.
According to this statement, X-1R products “include Petrol Treatment, Diesel Treatment, Automatic Transmission, Manual Transmission Treatment, Octane Booster and also the Small Engine Formula (for Motorcycles)”.
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Public sector problems same as in 1996 – top policy expert
http://www.sundaytimes.lk/091025/FinancialTimes/ft16.html
Public sector problems same as in 1996 – top policy expert
By Jagdish Hathiramani
A lot of problems within the public sector have remained the same since 1996, according to a top US expert on policy who last visited Sri Lanka during that year. Speaking to the Sunday Times FT during a visit which is part of a cultural exchange initiated by the US Embassy, Professor Hilton Root, proved to be well versed in the area, having served as one time advisor to former Sri Lankan president Chandrika Bandaranaike Kumaratunga, tasked with restructuring the local civil service. He further added that the government should prioritize the business environment and listen carefully to what the community has to say, observations based on a number of meetings with academics, public servants and commercial interests.
However, Prof. Root did note that the size of government had been reduced by 30%, based on updates to his prior studies of local public management systems in 1996, but this saving was more than offset by lowering productivity levels. Meanwhile, he opined that the civil service still remained unnecessarily “bloated”, with a number of public officials claiming that they were often given “responsibility without authority”. Adding that this was “a good moment for Sri Lanka” especially since India is currently doing so well, he suggested that the country look to Malaysia as a model of what it could achieve.
Referring to the ongoing global recession, Prof. Root, an advisor for the Asian Development Bank, the IMF, the World Bank, the UNDP, the OECD, the US State Department, the US Treasury Department and USAID and a veteran of projects in 23 countries, commented that the trade impact on Asia has been greater than anybody had anticipated. He also indicated that he was troubled by overly nationalistic policy responses to trade issues from countries such as Thailand and Indonesia.
He further added that while emerging markets had been hit very hard, they being very fragile to begin with. Regarding the future, he said he was unsure what would happen in the next six months. However, a positive repercussion of the situation was that more people in Asia were now “really trying to collect data, good economic data” on which to base decision making, a “good sign of the increasing sophistication of the region”.
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8% of Sri Lankan students study abroad – University don
http://www.sundaytimes.lk/091101/FinancialTimes/ft34.html
8% of Sri Lankan students study abroad – University don
By Jagdish Hathiramani
Only 16% of all eligible Sri Lankan students are recruited to local public universities, according to the University Grants Commission (UGC) website, leaving 84% neglected in terms of access to higher studies. This has resulted in 8% studying abroad, a number based on unconfirmed statistical data, according to top Sri Lankan academic, Dr. Athula Ranasinghe, the Head of Economics at the University of Colombo.
Dr. Ranasinghe’s remarks were made at a Sunday Times Business Club event held this week at the club’s host hotel, Cinnamon Grand. Themed “Education: Current and future policy issues in Sri Lanka”, the event, co-sponsored by Hameedia’s, entailed a free and frank discussion of local education policy encompassing multiple points of view. While Dr. Ranasinghe was charged with putting forward the viewpoint of local academia, the international position was represented by Dr. Harsha Aturupane, Lead Education Specialist for the World Bank South Asia; the local business community by Mahen Dayananda, a former Chairman of the Ceylon Chamber of Commerce and a current member of the chamber’s Education Sub Committee; and the Ministry of Education by its Additional Secretary, Mohamed Thamby.
Further, again according to Dr. Ranasinghe, the belief by the private sector that many graduates of local universities were unemployable was a misconception; unconfirmed and “not based on scientific data”. He also added that local universities had to counter this perception by marketing their degree programs effectively as well as increasing private sector involvement in universities to bridge these opposing perceptions.
Meanwhile, Mr. Dayananda commented that the private sector advocated benchmarking local education institutes against their South Asian counterparts because, without appropriate benchmarking, “you don’t realize what you are missing” and that “the private sector is all about benchmarking”. He also added that education should be more about learning than about only pursuing employment, a situation that proves often the case today in Sri Lanka. Mr. Dayananda also indicated a need to improve the quality of education as well as adding a greater emphasis on creativity.
However, according to Mr. Thamby, there is nothing inadequate about Sri Lanka’s education system. He added that the country was one of very few offering access to basic education to those under 14 years of age, this in addition to free text books, uniforms and meals. While indicating that future plans for the ministry included improving the quality of teachers, enhancing the economic efficiency of the education system, etc., he also suggested that it often went unmentioned that overall results, year-on-year, consistently showed marked increases in areas such as ordinary level mathematics and others.
Concluding, Dr. Aturupane indicated that the next local project of the World Bank, titled “Higher Education for the 20th century”, scheduled to begin in 2010 would provide a number of initiatives to improve Sri Lanka’s education system. While offering areas such as skills mapping of existing graduates and matching them with relevant opportunities, one standard accreditation system for public and private institutions and an array of university development grants, the project will also endeavor to foster a second national language which would ultimately enable all Sri Lankans to become trilingual in the long term (next few generations).
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Sri Lanka to host regional heads of Telecom Regulators
http://www.sundaytimes.lk/091108/FinancialTimes/ft22.html
Sri Lanka will be hosting the next annual meeting, the 11th, of the South Asian Telecommunications Regulators Council (SATRC) which is scheduled to be held over three days from November 24, according to an announcement by the Telecommunications Regulatory Commission of Sri Lanka.
Attended by “Heads of Telecommunications Regulatory Authorities of SATRC member countries and designated senior level officers”, the meeting is being held to “discuss the key policy and regulatory issues in the SATRC countries, reports of the SATRC working groups under action plan phase II, implementation report of the SATRC action plan phase-II, new topics for consideration in the next phase action plan, adoption of SATRC action plan phase III, funding initiative of SATRC activities”.
Meanwhile, as this meeting is being held in association with Asia Pacific Telecommunity (APT), a region-wide ICT body currently encompassing 34 Members, 4 Associate Members and 121 Affiliate Members, it is also expected that speakers at the meeting will “include members of APT Study Groups, technical experts from regulatory agencies, operation managers and technical managers from the industry.”
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Local bank awarded Sri Lanka’s top brand status
http://www.sundaytimes.lk/091108/FinancialTimes/ft41.html
Local bank, People’s Bank, outperformed all expectations when it became Sri Lanka’s ultimate brand for 2009 as indicated by results of the recent Brand Excellence awards, organized by the country’s top marketing body, the Sri Lanka Institute of Marketing. Winning the highest achievement of the night, “Brand of the Year”, was also doubly significant for People’s Bank as this was the first time, out of all eight incarnations of these awards, that the bank had even been recognized in any form.
Meanwhile, People’s Bank further distinguished itself by winning the only gold in the “Service Brand of the Year” category, while Ceylon Biscuits’ Munchee and Diva detergent powder, by Hemas, each won Gold in the “Product Brand of the Year” category. Shared success for both Munchee and Diva, but particularly weighted in favor of Diva which came in second to Munchee the year before.
However, maybe most remarkable of all was the totality of the honors received by Munchee over the course of the ceremony. All in all, Munchee won five awards during the evening; two Gold awards in the ‘Product’ and “Local Brand of the Year” categories, two Silver awards in the “Best CSR Brand of the Year” and “Best Export Brand of the Year” categories; and one Bronze award in the “Best New Entrant of the Year” category. A situation made even more significant considering that this year’s success proved to be just a postscript from last year when Munchee received “Brand of the Year” as well as three Gold awards, one Silver award and one Bronze award.
Other brands winning Gold this year included Panadol (for “Best International Brand of the Year”), Orange Electric (for “Best CSR Brand of the Year”), Dialog Telekom and Mobitel (both for “Best Innovative Brand of the Year”) and Mobitel’s Upahara (for “Best New Entrant of the Year”) while Brightex received a Certificate of Merit in the “Small Business Brand of the Year” category.
