Sri Lanka Newspapers - 14/01/2012

EPF members paid only four percent for Stock Market investments
To hide losses incurred by purchasing shares way above intrinsic value - Eran
by Zacki Jabbar

The Employees Provident Fund had paid its members an interest of less than four percent for the high risk investments it had made in the Stock Market, in 2009 and 2010, an opposition legislator charged yesterday.

Eran Wickremeratne, MP and Financial Analyst told The Island that the low rate of four percent had been camouflaged within the overall average of 13 percent, which had been paid during the said two years.

Due to the Fund not publishing details of the investments it had made in listed and unlisted equities and the returns, the general membership was unable to discern the losses that had been incurred by purchasing shares at way above the intrinsic values, he said.

The MP said the bull runs in 2009 and 2010 that saw the All Share Price Index appreciate by 125 and 95 percent respectively, was a result of various players including the EPF, propping up the market artificially.

Asked to identify the offenders, Wickremeratne said that certain persons and groups had benefitted financially by acting in concert with the EPF, which had been engaged in a political exercise aimed at giving the impression of a huge boom in the stock exchange.

The EPF’s portfolio value in equities increased from Rs.9.8 billion in 2009 to Rs.44 billion in 2010, but the members were given a paltry less than four percent return for investments supposed to have been made in a booming market, he observed.

The goal of the EPF was to maximize returns for its members but it was dancing to the tune of its political masters, the MP said adding that there was a conflict of interest with regard to its investments in the banking sector, since the Central Bank was privy to inside information.

The law was that no individual or institution can own more than 10 percent of a bank, but various government entities were acting in concert to violate the Central Bank’s own regulations, Wickremeratne observed.
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=43137

Susil calls for audit report on furnace oil tender
By Ravi Ladduwahetty

Self made business tycoon and Chairman of several blue chip corporates Harry Jayawardena yesterday resigned as the Chairman of the Ceylon Petroleum Corporation.

Petroleum Minister Susil Premajayanth had confirmed Jayawardena’s resignation but the Minister was not available for comment as he was at a meeting with President Mahinda Rajapaksa at Temple Trees as this edition went to press.

The case against Jayawardena was building up with the Minister calling for an audit on a controversial furnace oil purchase by the Ceylon Petroleum Corporation at US $ 111 per tonne after allegedly sabotaging a previous order at US $ 53 per tonne.This had allegedly caused a delay in getting down the 35,000-tonne shipment which was due by December 26.

The result of the delay had forced CPC to supply costly diesel to the Kerawalapitiya power plant instead of contracted furnace oil.

The higher priced furnace oil, according to CPC sources, was now expected later this month.

Sources said in addition to the loss suffered by buying furnace oil at more than double the previously contracted price, and having to supply costly diesel in the interim at furnace oil price would result in a loss of about one billion rupees to the Corporation.
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=43136

*Profit taking on ERI pushes market down

The Colombo bourse lost some steam yesterday although the market was up most of the day and eased off partly due to profit taking later in the day, brokers said.

The previous day’s Rs.1.06 billion turnover was sustained with the business volume edging up to Rs.1.17 billion, but both indices were down at close of trading – the All Share by 13.13 points (0.22%) and the Milanka by 19.59 points (0.39G) with 74 gainers outpaced by 110 losers.

"There was profit taking in stocks like ERI (Environment Resource Investments) which hit a high of Rs.36.80 during the day and Asia Asset Finance where nearly 41 million shares changed hands," Prashan Fernando of Acuity Stockbrokers said. ``Though the indices were down at close, they were up most of the day.’’

ERI closed 70 cents down at Rs.34 with over 7.3 million shares done between Rs.32.80 and Rs.36.80 generating the day’s top turnover of Rs.257.5 million.

Asia Asset Finance, whose promoters found it difficult to sell its shares at an IPO price of Rs.2.50, hit a peak of Rs.6.30 yesterday with over 40.9 million shares traded between Rs.4.50 and Rs.6.30. The counter closed Rs.1.60 up at Rs.5.90 - contributing the second highest turnover of Rs.226.6 million.

Foreign selling in Commercial Bank continued with the share closing 20 cents down at Rs.100.40 with over 1.3 million shares done between Rs.100 and Rs.101.50. Brokers said that three crossings of slightly over 1.2 million at a price of Rs.100 per share comprised the bulk of the trades.

Interest in Marawila was evident with over 3 million shares traded and the counter closing 20 cents up at Rs.10.30 trading between Rs.10.30 and Rs.11.20 while Blue Diamonds too saw 3.8 million shares done between Rs.8.20 and Rs.8.60 closing 30 cents up at Rs.8.50.

Interest in non-voting shares of Tokyo Cement continued with the share closing 10 cents down at Rs.28.10 on over a million shares done between Rs.28 and Rs.28.60.

Among the Blue chips, both Chevron and JKH were up, Chevron by Rs.2 to Rs.172 on over 0.1 million shares done between Rs.170.90 and Rs.172.50 while JKH gained 70 cents to close at Rs.164.50 on 0.1 million shares traded between Rs.163.70 and Rs.168.

Brokers said that while there was one 50,000 share parcel of Chevron at Rs.172, the JKH trades were in smaller lots indicating retail participation.

Amongst the shares that saw a traded volume of over 1 million was Tess Agro down 20 cents to close at Rs.4.40 on over 1.4 million shares traded and E-Channeling up 10 cents to Rs.8.30 on a million shares transacted.
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=43084

Hemanthi GURUGE

One of the largest blue chip companies, Richard Pieris and Company ventured into the insurance industry under the brand “Arpico” with an investment of Rs 500 million.

Richard Pieris and Company Chairman Sena Yaddehige said that the company will invest another Rs 200 million during the next few years to expand and upgrade its business throughout the country.

“Sri Lanka is maintaining a steady economic growth over the past three decades and this has opened up new opportunities. We feel that this is the best time to launch a new insurance company, 80 years of business success. “Insurance for living” would be the theme of this new venture,” he said.

Arpico Insurance would set up 10 branches and it is looking at expanding its branch network to 50 within the next few years. Arpico Insurance currently employs over a 100 strong sales force and 20-25 employees in the back office. The direct and indirect workforce of the company will increase up to 500 by the end of this year,” Yaddehige said.

Their service portfolio includes education plans, hospitalization plans, income replacement plans, retirement plans, health plans, investment plans, loan protection plans and others.

He also said that plans are underway to enter into the leasing and finance sector during this financial year. Richard Pieris and Company, one of the largest and most successful diversified business conglomerates based in Sri Lanka has been ranked 13th best cooperate in the country.

Richard Pieris group posted an all time high profit from operations during last financial year of an impressive Rs 3.4 billion and a post tax profit of 2.2 billion in 2010/2011 with estimated group turnover to reach Rs 32 billion. Arpico Group now has over 42 subsidiaries and employees in excess of 30,000.
http://www.dailynews.lk/2012/01/14/bus02.asp

Online visa income tops Rs 70 m
Lanka Gate IPG major attraction:

Indunil HEWAGE

Sri Lanka’s first government sector IT payment gate ,Lanka Gate Internet Payment Gateway (IPG) which is created by the Information and Communication Technology Agency of Sri Lanka (ICTA) has become a major attraction among foreign nationals who intend to obtain Sri Lanka visas online.

ICTA Communications Head Athula Pushpakumara said, “From the beginning of this year it has been made obligatory for all tourists to Sri Lanka to obtain their visas online.

“We see that IPG users are increasing every day. Over 3,000 foreign nationals are making online visa payments via IPG per day. Over 24,000 tourists have so far made online visa payments through the IPG within the first eight days alone since it became operational from January 1,” he said.

In addition, in the future, payments for all government services would be made via the Lanka Gate Internet Payment Gateway. A Sri Lankan will be entitled to obtain online government citizen services through this which is to be introduced in April by ICTA. Customers will have the opportunity to get the services pertaining to their passports, identity cards and other requirements by paying through the above system and it facilitates payments through credit and debit cards as well.

It was also said that Sri Lanka earned an income of Rs 70 million by issuing of visa within 10 days.

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Lanka looking at consultancy support from KPMG India

To boost Sri Lanka’s investment appeal, the country is resourcing international level consultancy support. Sri Lanka is looking at consultancy support from KPMG India, among others, to compile a detailed report on the country’s investment regime.

KPMG India’s annual turnover exceeds $ 100 million. Its parent group, KPMG, recorded $ 20.63 billion turnover in 2010 and is an internationally reputed business auditor for large and small companies offering expertise in audit, tax, and advisory. KPMG, with Price Waters House Cooper, Deloitte, and Ernst & Young, make up the ‘big four’ auditing companies in the world.

Minister of Industry and Commerce of Sri Lanka, Rishad Bathiudeen, on January 11 met with Narayan Ramasawamy, Partner, KPMG Consultants in India as a follow-up to the discussions he held in Colombo with a CII-led delegation last December. Minister Bathiudeen is currently attending the “Partnership Summit 2012” in Hyderabad at the invitation of the Indian Minister of Commerce, Industry and Textiles. The January 10 Discussions focused on how to proceed in compiling a comprehensive document that can provide detailed information on Sri Lanka’s investment regime and, at the same time, specific project proposals for the purpose of attracting foreign investors.

The minister suggested the KPMG Consultants to focus at the initial stage on a few thrust industry sectors such as tourism and submit a brief proposal on the subject together with a roadmap with specific timelines. The consultant stated that he would explore the possibility of undertaking an early visit to Sri Lanka in order to meet with senior decision-makers for further discussions.

Minister Bathiudeen also visited the Platinum rated Green Business Centre, owned and managed by the Confederation of Indian Industry (CII). The centre is housed in a green building, which received the prestigious LEED (Leadership in Energy and Environmental Design) Platinum rating in 2003. This was the first Platinum rated green building outside the United States and the third in the world.Minister Bathiudeen met Centre Director, S. Raghupathy and other senior officials during this visit. Raghupathy, who gave a detailed account of the facility, invited the minister to plant a tree to mark the occasion.

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Bourse recovers
The Colombo bourse closed its trading session for Thursday by putting on the best performance so far during 2012. Morning session was rather volatile yet market picked up its momentum during the day and was supported by renewed investor optimism regarding the pending decision on credit extension.

Market watchdog Exchange Commission of Sri Lanka (SEC) is expected to take the final decision on Monday.

ASI leaped by 88.47 points (+1.51%) to end at 5,953.53 and more sensitive MPI increased by 59.21 (+1.18) to close at 5,069.43.

Market turnover reached Rs 1,063.7 million at the end of the day. Turnover reached Rs 1 billion mark after 12 trading sessions.

Retail investor favorite Environmental Resource Plc and newly listed Asia Asset Finance Plc mostly dominated today's trading session. Asia Asset Finance Plc commences its secondary trading today and recorded significant gains. Counter closed at Rs 4.30, up by Rs 1.80 (+72.0) from its IPO price of Rs 2.50. Having suffered considerable losses yesterday, Environmental Resource Plc (Voting) gained its lost grounds. Counter closed at Rs 34.60, up by Rs 5.30 (+18.2%). Related counters such as Ceylon Leather Products Plc, Dankotuwa Porcelain Plc saw active investor participation and recorded gains.

Meanwhile aggressive investor participation was witnessed in Blue Diamond Plc - Non-Voting (+0.20, 5.26%), HVA Foods Plc (+1.40, 3.84%) and Tess Agro Plc (+0.40, 9.76%).

No crossings were recorded during the day.

Foreign participation was posted at 7.22% of the total market activity and at the end of the day foreign investors were the net sellers with the net foreign outflow of Rs 24.1 million.

Courtesy: Lanka Securities Research

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Maxim Holdings to invest Rs 700 m for warehouse
Hemanthi GURUGE

Maxim Holdings (Pvt) Limited is to invest Rs 700 million to construct a 700 square feet warehouse at Mulleriyawa.


Maxim Holdings (Pvt) Limited Chairman Dr Saman Weerasinghe
receiving the BOI agreement from acting BOI Chairman M.M.C.Ferdinando. Picture by Sulochana Gamage

This 700 square feet building will consist of two warehouses and an office building. Maxim Holdings (Pvt) Ltd signed an agreement with the Board of Investment of Sri Lanka to complete this project.

Maxim Holdings (Pvt) Limited Chairman Dr. Saman Weerasinghe told Daily News Business that a 300 square feet space out of the 700 square feet warehouse will be used for value added tea storage and they are hoping to lease the balance space to other companies engaged in cargo forwarding. Negotiations are currently going on with several leading companies in this regard, he said.

The construction of the warehouse will commence in May this year and it is expected to be completed within 18 months of commencement of construction.

The project will create more than 200 direct and indirect jobs in the area.

Maxim Holdings Pvt Ltd is a subsidiary of Mos Lanka Holdings which is engaged in the businesses of tea export, co packing, tourism and other sectors as well.
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Robust trading raise investor confidence
Robust trading-day gains for the Asia Asset Finance share seems to have raised the confidence of all investors.


Opening trading at the SEC today are Standing left to right:
Daya Muthukumarana (Director - Asia Capital PLC), Priyanthi
Pieris (Director - Asia Asset Finance Ltd), Roshan
Gunasekera (GM - Asia Asset Finance Ltd), Thiru Neelakandan
(DGM - Asia Asset Finance Ltd), Rajiv Gunawardena
(CEO - Asia Asset Finance Ltd), Stefan Abeyesinhe (Acting
Group CEO - Asia Capital PLC) and Sivaneswaran
Sokanathan. Seated: Manoharan Nanayakkara (Chairman/
MD - Asia Capital PLC).

This could be gauged by the overwhelming response to the listing which was trading yesterday at an opening share price of Rs. 3.00 - 20% above the initial offering, and closed at an even higher price of Rs. 4.30 by end of day, which is a 72% increase within the course of just one day.

This is the first trading of stock by a private company to the public for the year 2012. The confidence gained from this success is expected to help stabilize the market and help restore investor confidence after a volatile performance in the last half of 2011.

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Micro receives recognition
For contribution to Sri Lankan economy:

At a glittering event at the Ceylon Continental Hotel, attended by many heads of reputed corporate companies, Micro Cars received the Global Commerce Excellence Award recently. This was initiated by the Central Bank of Sri Lanka to award companies who have made a positive contribution to the economy during a time of war. Micro Cars was one of the few companies who walked away with this prestigious accolade. Micro Cars, Chairman Dr Lawrence Perera and Director Guhasanka were


Micro Cars Chairman Dr. Lawrence Perera and Director Guhasanka receiving the Global Commerce Excellence Award from Secretary to President Lalith Weeratunga and the Central Bank of Sri Lanka Governor Nivard
Cabraal.

presented with the Global Commerce Excellence Award by Secretary to the President Lalith Weeratunga and Central Bank of Sri Lanka Governor, Nivard Cabraal.

Keeping to the vision of the 'Mahinda Chinthana Idiri Dakma' these awarded companies have invested largely in both capital and man-power to keep the economy afloat. This act of facing business challenges successfully during such turbulent times has deemed these organizations award-worthy.

Commenting on the achievement Micro Cars Director Guhasanka said "This award has immense value because it is a testament to the resilient spirit and the never give up attitude of the organization.

We have invested a great deal during the war times and we were always willing to stand by the government and the Sri Lankan people. Bringing Sri Lanka and the people a better way of life has always been the objective of the Micro Cars company, and it will be so in the future". Guhasanka also mentioned that receiving this award has been extremely encouraging it could not have been achieved without the collective effort and positive attitude of the entire staff at the Micro Cars organization.

The Global Commerce Excellence Awards were organized in conjunction of Shippers Academy of Colombo and the technical cooperation of the Central Bank of Sri Lanka, a worthy recognition as these organizations have positively contributed to growth and shifting Sri Lanka to a middle income nation that it is today.

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Regina Margherita does promo with Mydeal.lk
Mydeal.lk on its trail towards fulfilling needs and wants of its customers through discounted daily deals, tied-up with Regina Margherita the cozy Italian restaurant at Park Road, Colombo, to provide customers with a quality pizza experience.

Mydeal.lk customers can now taste a variety of mouth watering pizzas at Regina Margherita at a 'fifty percent off' deal.


Mydeal.lk CEO Kumar Melvani with Regina Margherita,
CEO and Director Barbara Avossa.

Regina Margherita is owned and operated by an Italian. The fully air-conditioned and spacious venue has a seating capacity of 70.

Patrons at Regina Margherita will be treated to the real Italian pizza, created in a traditional Italian wood-fired earthen pizza oven.

Checkered table cloth, napkins coloured in the shades of the Italian flag and pizzas served by a welcoming staff bestow customers with the feel of a perfect Italian eating place.

Tripadviser's non-biased view on restaurants has quotes from many satisfied customers of Regina Margherita. The authentic Italian cuisine with a combination of mouth-watering flavours, affordable prices, friendly staff and ambiance of the place are the common views of the community, emphasized in Tripadviser.

Mydeal.lk CEO Kumar Melvani said, this newest offer purely dedicates to the loyal customers of Mydeal.lk who made requests time to time, to provide them with an offer from Regina Margherita.

The concept of 'promotion' is rapidly evolving globally and the magic in social media marketing is gaining momentum. Thus merchants and vendors are fast realizing the advantages of 'daily deals concept' which enhances their customer-bases while providing them with brand visibility in websites, which is a bonus.

Mydeal.lk has discount offers on hotels, dine-in restaurants, fast food, electronics, salons, Spas, sports goods, bookshops, hospitals and education, professional photography coming up in the near future.

Among the deals currently on offer are beachwear, helicopter rides and delicious sauces and pastes for individuals and families.

Mydeal.lk facebook fan page has over 35,000 fans and is growing rapidly.

The company looks forward to maintain a healthy relationship with its merchants and consumers. MyDeal.lk is conveniently located on Galle Road, Colombo 3 (Opposite McDonalds).
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Sri Lanka holds bilateral trade sessions
Sri Lanka held two fresh bilateral trade sessions yesterday in Hyderabad-one with India and the other with the United Arab Emirates. The talks were held at Andra Pradesh, Hyderabad International Convention Centre, in Hyderabad. Minister Bathiudeen led Sri Lanka team on both meetings.


Industry and Commerce Rishad Bathiudeen (second from left), in discussions with KPMG
Consultants - India partner Narayan Ramaswamy in Hyderabad.

In these negotiations, Minister Bathiudeen held discussions with Indian Minister of Commerce and Industry Anand Sharma (for India), followed by UAE Minister of Foreign Trade Sheikha Lubna bint Khalid Al Oasimi (for UAE), in separate afternoon sessions.

"The latest rounds of talks are aimed at trade promotion between Sri Lanka and these two countries," said Director General of Commerce Department P.D. Fernando. Minister Bathiudeen also extended the official Sri Lankan invitation for 'Sri Lanka Expo 2012' to India, during the meeting with his Indian counterpart.

According to the Confederation of Indian Industry (CII), the organisers of the Partnership Summit 2012, its sessions will focus on tourism and investment opportunities in the state of Andra Pradesh, along with high-level business networking among the participating countries.

About 1,500 delegates from 30 countries will take part in this three-day partnership summit at the Hyderabad International Convention Centre. Among the participating countries are Bangladesh, China, the Czech Republic, Ghana, Israel, Italy, Malaysia, Pakistan, Russia, Singapore, Sri Lanka, the United Arab Emirates, the United Kingdom, USA, Zambia, Zimbabwe, New Zealand, Turkey, Ukraine, Saudi Arabia, Abu Dhabi, Kuwait, Myanmar, Afghanistan and Mali.

Minister Bathiudeen also addressed the inaugural session of the Partnership Summit at Hyderabad, yesterday.

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OPA focusing on three key areas this year
Ramani KANGARAARACHCHI

The OPA will draft reports on three key areas during this year namely on the human resource requirement for next five years, the nutrition and physical environment necessary for a healthy nation, and impacts of proposed five economic regions on current framework of governance, the newly appointed Organisation of Professionals Association (OPA) President Architect Thilina Kiringoda said in his inaugural speech at Waters Edge recently.


Architect Thilina Kiringoda

He said following a decision of the general forum, a sub-committee will examine the national constitution with the view of submitting to the government a report on the structure and the content of future amendments. Government authorities and NGOs will be invited to participate in the deliberations of these committees.

He said the OPA also has drafted guidelines to establish regional professional circles enabling the members or member associations to have regional forums to discuss national and regional issues. Interest has already been expressed by professionals in Galle and Anuradhapura.

The General Forum of the OPA, with representatives from 43 member associations and 23 professions, is the best forum outside the Parliament for intellectual discussion on national and regional issues.

Architect Kiringoda said that people now live in a world which does not sleep. Because trade and investment have overridden the traditional agriculture based economies and due to time line differences in operation of international markets, professionals engaged in business connected with trade and investment hardly find time for relaxation as the demand for fast tracking delivery of solutions has compelled the other professionals also to work day and night.

The professionals have to be sensitive to this problem in their personal and professional lives, also in their public lives if they group to work towards ensuring better conditions for people. If they are not then the solutions they find for problems of the society will never be humane, he said.


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Sinhaputhra Finance reconstitutes Board
Sinhaputhra Finance PLC, the 33 year old Publicly Listed Registered Finance Company was required to invite two new members to its Board of Directors, according to the Central Bank's Corporate Governance Directive.


Dr. Amal Randhir
Karunaratna
Nihal Ratnayake
Accordingly Dr. Amal Randhir Karunaratna Associate Professor (deleted.) and former discipline head in Marketing at the Graduate School of Business at the Adelaide University will join the Board. He holds a Phd in Business from the Sydney University and publishes in international journals, consulted with large and small firms and brings, expertise in marketing, international business and market research. Dr Karunaratna is currently engaged as the CEO of Breakthrough Business Intelligence. He was also a contributor to the Lanka Monthly Digest and now a free-lance writer to business and travel magazines.

In addition Lal Ekanayake an ardent businessman and philanthropist who pioneered the Cancer Unit at the Kandy Teaching Hospital by spearheading the raising of Rs. 750 million from well-known business personalities and government bodies joins the Board. Ekanayake's influential contact base will be a boost for Sinhaputhra's expansion programme.

Nihal Ratnayake the current CEO of the Malaysian owned Tritel Services Pvt Ltd, who has been a Non-Executive Independent Director of the company, assumes duties as the Chairman of the company.

The new Board of Directors of Sinhaputhra Finance PLC is Nihal Ratnayake (Chairman), Ravana Wijeyeratne (Managing Director), Saliya De Alwis (Director Operations), Nandana Abeykoon (Director Finance), Dr. Amal Karunaratna and Lal Ekanayake and as Consultants K.H.K. Wijedasa FCA, Consultant Finance and Mohan Weerakoon, Attorney-at-law as Legal Consultant.

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Footwear and Leather Fair in February
The Footwear and Leather Fair is scheduled to take place from February 10 to 12 at the BMICH, Colombo.

During the exhibition, the Indian Footwear Component Manufacturers Association (IFCOMA) will have a special pavilion named the IFCOMA Pavilion, India. Twenty five exhibitors from IFCOMA-India will be showcasing their products including footwear components and accessories for the footwear and leather goods industry in Sri Lanka.

IFCOMA is the sole Indian association of shoe-component manufacturers representing the component sector in India. IFCOMA has earlier organized BSM at Bangladesh and Sri Lanka and has participated as a delegation of its members in international fairs at Germany, Italy, Hong Kong, Vietnam, China, Syria, Pakistan and Indonesia.

Besides participating in the fairs, IFCOMA assists in direct co-ordination of component manufacturers with the shoe manufacturers based in India and also outside India. The association also has a display centre at its office, Noida which showcases different type of components and is open for visitors. More details of the association could be viewed at www.ifcoma.org.

The Indian footwear components industry is of the size of over US $ 100 million and growing consistently. The Indian component industry has turned up in a big way after crusading through last two decades of developments and modernization of various input products. The component manufacturers have shaped up their production line to bring highly cost effective and innovative products to cater to the rapidly growing footwear and leather goods industry which is based on latest fashion trends and demanding innovations in designs and contemporary fashion styles.

Component exports from India have also risen to very substantial levels. The Indian component manufacturers are already exporting their goods to Europe inter alia the U.K, France, Italy, Portugal, Denmark, Russia, Turkey, Canada , USA , Gulf countries, Pakistan, Bangladesh and Sri Lanka. Footwear components from India have been approved and are being regularly used by the major international buyers. (SJ)

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Dirk heads CIMA

Dirk Pereira

CIMA (The Chartered Institute of Management Accountants) Sri Lanka Division inducted its Board for the year 2012 at the Cinnamon Grand on January 4, 2012. Union Assurance PLC (UA) Chief Executive Officer Dirk Pereira was elected as the Chairman of the CIMA Sri Lanka Board, whilst KPMG Ford Rhodes Thornton and Co Partner - Head of Advisory Services Reyaz Mihular and Hatton National Bank PLC Managing Director/CEO Rajendra Theagarajah was appointed as Deputy and Vice Chairman respectively. Over 300 CIMA members attended and witnessed this event.

CIMA appointed its local Governance Board in 2010 to provide the strategic oversight on the delivery of CIMA's corporate strategy to grow and service the student and members in Sri Lanka.

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

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DFCC Vardhana Bank promotes financial inclusion
Looking back at 2011, DFCC Vardhana Bank (DVB), the everyday banking unit of DFCC Bank had a productive year in terms of profitability, asset growth, with a number of milestones being achieved, awards won and expansion in the bank's products and services.

2011 saw DVB go into a Rs.1 billion subordinated debenture which was rated at 'A+(lka)' by Fitch Ratings. The rating agency simultaneously affirmed DVB's National Long-term rating at 'AA-(lka)' with a "Stable Outlook". The five year debt issue will have fixed and floating coupon rates and the Capital will be re-paid on maturity. The bank will utilize the debenture to finance the loan growth and also help to strengthen the bank's tier 2 capital.

In May 2011, DFCC Bank upped its stake in DVB to 99.07 percent from the previous level of 95.6 percent receiving the green light from the Central Bank to fully acquire the unlisted subsidiary. Subsequently, the Bank became a Public Limited Company (PLC) from November 2011, with the Listing of its Debentures on the Colombo Stock Exchange.

With six new branches opened across the country, the Bank concentrated on the North and East, with new branches opened in Vavuniya and Saindhamarudhu last year.

The Bank is well-represented in these areas with branches already set up in Jaffna, Ampara, Batticaloa and Trincomalee; and extension offices set up in Akkaraipattu, Kalmunai, Mahaoya and Uhana. The Bank also saw its 125th branch being opened in Kegalle, while other branches opened this year included those in Katugastota and Moneragala. The Bank counts 127 branches and extension offices under its wing.

Last year, DVB moved its Personal Financial Services into a separate unit, amidst launching and upgrading a number of products and services. The most significant of them being the launch of Vardhana eBanking - offering a range of the bank's services online. Keeping in mind customer insights and needs, Vardhana eBanking is customized for use by an individual and a corporate. Some of the bank's services that can be obtained online include: bill payments, international fund transfers, loan repayments, domestic transfers and a number of scheduled transactions.

The Vardhana Visa Debit Card was also launched in 2011. Issued by the bank and valid internationally, the card was initially made available to only the bank's existing customers. The bank's credit cards are now available for non-DVB customers as well. Vardhana Visa Credit Card was launched in 2009, and reintroduced in 2010 with added security features ensuring safety on all transactions. This credit card also fulfills all EMV [European Mastercard VISA] standards, and comes complete with a micro-chip embedded into the credit card.

The Bank also launched Vardhana Prabhu, the bank's priority banking unit. First of these units was opened in Jaffna, with the second being opened in Batticaloa.

Notable banking products launched and upgraded throughout 2011 were: Vardhana Nenasa - the bank's educational loan scheme; Sandella - a housing loan scheme; Vardhana Leasing, Ranwarama - DVB's pawning product and Vardhana Junior Plus - which is a savings scheme for minors.

DVB signed two Memorandums of Understanding (MoU) in 2011; one with the National Water Supply and Drainage Board (NWSDB) and the other with Sri Lanka Telecom (SLT). These new partnerships enable the added convenience of making bill payments towards the NWSDB and SLT from any of DVB's branches. This agreement is part of a move by DFCC Vardhana Bank to offer a greater range of services to its customers. Bill payment services through DFCC Vardhana Bank branches and Service centers are also available for customers of Dialog, Mobitel, Union Assurance Insurance, LECO and Lanka Bell.

Last year, DFCC Vardhana Bank won the award for 'T+1 Best Facilitator' from Lanka Clear (Pvt) Ltd, in the medium-scale category. The award, won at LCPL's 5th year celebrations of utilizing the CITS (Cheque Imaging and Truncation System) is in recognition of the bank's prompt service provided to customers by realizing the funds for their cheques deposited at all DVB branches within the banking hours of T+1. T+1 is a term used to refer to the cycle of cheque clearing, common to all commercial banks.

The Bank's pet project, DFCC MindStar telecast its 2nd season which ran over a course of 35 weeks and featured 225 contestants. The award-winning reality TV quiz show won the award for the 'Best Reality TV Show' at the 2010 Asian Mass Media Awards. The 2nd season introduced a new element which was the addition of five special school shows in which forty-five students who were selected from national schools through an eligibility test held with the approval of the Ministry of Education.

The Bank also took part in various CSR programmes including the provision of relief to flood victims, as well as providing grants for those whose business enterprises were affected by the floods in Jaffna and Batticaloa.

Another project carried out jointly by DVB and DFCC Bank is the 6S programme for schools. Schools from around the country are chosen for the implementation of 6S principles and the programme also introduces concepts of environmental stewardship through the 3R method of Reducing, Reusing and Recycling.

http://www.dailynews.lk/2012/01/14/bus20.asp

MEDICARE exhibition for third consecutive year
Sri Lanka's beauty and cultural heritage is internationally renowned and from being a war-torn country it has now emerged as one of the top travel destinations in the world. Recommended within the top five world most travel to destinations by international travel guides and magazines, Sri Lanka is well on its way to economic success and development.

The city of Colombo itself has seen many transformations as leisure and relaxation has taken central focus, with many walkways and recreational facilities springing up, thanks to the Government of Sri Lanka. People are now choosing a fast paced world with surmounting pressures and stress, many tend to leave their health, fitness and well-being on the backburner until it's too late.

Taking good health for granted is common and many tend to ignore telltale signs of deteriorating health, as they progress day in and day out of their busy schedules and lifestyles. Good health has infinite value yet seems to be a least valued component in our lives. In a bid to advocate healthier lifestyles and introduce innovative medical care, MEDICARE will once again bring the best of healthcare and medical professionals under one roof to interact with industry stakeholders and the general public.

For the third consecutive year, the Department of Health - Western Province will be organising the MEDICARE 2012 Exhibition under the patronage of the Ministry of Health, Sri Lanka from 2nd - 4th March at the BMICH. Previous years exhibitions were inaugurated successfully with the presence of all Health Ministers past and present along with the industry stakeholders. With impressive achievements in health, nutrition, family planning and infrastructure in the health industry during the past three decades, Sri Lanka has overcome many health related difficulties.

Health and health-related technological advances will be on hand to the general public and the medical industry. MEDICARE 2012 will be the most important meeting place for all healthcare stakeholders including past, present and future health investors. "Our goal is to ensure that the public receives timely, accurate and important information with regard to health issues and to be updated on the latest technological innovations pertaining to health.

This in turn, will promote a healthy society for the benefit of all Sri Lankans" says Dr. Amal Harsha De Silva, Chairman - MEDICARE 2012. As the Provincial Director of Health Services for the Western Province in Sri Lanka, Dr. Harsha De Silva at the helm of MEDICARE has steered the organization of this annual event with distinct leadership skills and foresight. Dr. De Silva further added "The presence of President Mahinda Rajapaksa and First Lady Shiranthi Rajapaksa at the Exhibitions in the past years were a tremendous support and encouragement.

The exhibition will cater to industry stakeholders and the general public by way of featuring a Healthcare Exhibition and Medical Equipment and Pharmaceutical Exhibition all under one roof at MEDICARE 2012.

The Medical Equipment and Pharmaceutical Exhibition will be Sri Lanka's one and only platform for all medical professionals to be exposed to the latest and most sophisticated commodities in the medical industry.

This exhibition will provide both local and international medical equipment and pharmaceutical companies with an opportunity to meet prospective buyers such as procurement officers, hospital owners and decision makers in the government and private sector etc.

For more information log on to www.medicare.lk

http://www.dailynews.lk/2012/01/14/bus21.asp

ndo-Sri Lanka bi-lateral trade is likely to cross $4 billion in 2011, up from $ 3 billion in 2010, according to Mr Rishad Bathiudeen, Minister of Industry and Commerce, Democratic Republic of Sri Lanka.

Addressing a networking session on the last day of the three-day CII Partnership Summit 2012 on Friday, he said there were lot of opportunities for the two countries to partner for economic growth.

“The Indo-Lanka Free Trade agreement had helped Sri Lanka to diversify its portfolio of exports to India,” he pointed out.

He said Sri Lanka has come out with a string of incentives to overseas investors in strategic sector such as a 25-year tax holiday. He pointed out that this incentive was extended to NTPC, which is setting up a 500 mw power unit in Sri Lanka. Sri Lanka's import-export ratio is at present at 8:1. “But there is lot of untapped potential to reduce this mismatch,” the Minister said.

He wanted Indian importers to consider Sri Lanka before negotiating with other countries


http://www.thehindubusinessline.com/industry-and-economy/article2799028.ece