• Exchange Rates
• Unit Trust Prices
• Integrated Solution to extend Global Supply-Chain
• CEAT doubles truck tyre production
• Sri Lanka Investment Seminar in Malaysia

The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of May 28, 1998 were as follows:

The approximate middle exchange rates of following currencies calculated on the basis of cross rates quoted by Gulf International Bank, Bahrain as it appeared in Reuters Financial Information System on May 28,1998 were as follows:

Average rates at which the following currencies were quoted by Commercial Banks in Colombo for Telegraphic Transfers at mid-day on May 28, 1998 were as follows:

Average Weighted Prime Lending Rate (AWRP) and Lowest Prime Rate (LPR)
The Average Weighted Prime Lending Rate (AWPR) during the week ended May 22nd 1998 was 14.7 per cent for all banks. The Lowest Prime Rate among banks during this week was 12.0 per cent.

Average Weighted Deposit Rate of Commercial Banks (AWDR)
The Average Weighted Deposit Rate (AWDR) of Commercial Banks for the month ended April 30th 1998 was 9.6 percent.

Integrated Solution to extend Global Supply-Chain

The world's leading provider of enterprise application software solutions, and Federal Express Corp. ("FedEx"), the world's largest express transportation company, represented in Sri Lanka by Mountain Hawk Express Ltd., and MMBL Group Company, jointly launched the first in a series of integrated software solutions that will link FedEx's logistics, information technology and transportation capabilities with the SAP R/3 System. As part of this alliance, FedEx is delivering a new shipping and tracking application designed specifically to provide R/3 users with real-time package lifecycle information. SAP has worked closely with FedEx to develop a certified interface, providing SAP and FedEx customers with a fully integrated supply chain solution for today's competitive global marketplace.

The initial implementation is currently in progress at Hewlett-Packard Company Wade Thompson, responsible for designing the distribution processes for R/3 users at HP's Medical Products Group, said, "For our R/3 users, the solution will simplify every related process step from order entry through shipment and tracking by providing a tight integration with FedEx. That, ultimately, should help us serve our medical customers better."

The new integrated solution offers customers real-time shipping and tracking functions, from order entry through package delivery, all from within R/3, SAP customers will be ablate streamline their supply chain by reducing inventory management and resource costs. A FedEx tracking number, as well as freight charges, can be obtained and assigned immediately via R/3 order entry while a customer order is being placed. Subsequent order status and package status is available immediately as the package moves by FedEx from an R/3 customer's shipping dock through the FedEx delivery network to its final destination.

"The combined power of FedEx and SAP offers customers a single integrated solution that allows them to extend their R/3 System to include FedEx's transportation, information and logistics expertise," said Dennis H. Jones, Executive Vice President and CIO of FDX Corp. "By leveraging the information-rich content FedEx maintains on every shipment, customers will realize improvements in planning, order entry, inventory management and customer satisfaction across the supply chain.

"The leadership positions of FedEx and SAP are well-established in supply chain activities. Our customers have told us they are excited about this joint effort and so are we," added Jones.

In addition, the two companies will create a Joint Collaboration Team (JCT) -- a jointly staffed and funded development team -- to develop further logistics solutions enabling R/3 users to execute the complete supply chain seamless. The first effort of the JCT will be to further integrate and link the worldwide logistics operations of FedEx with the supply chain management functions of the SAP R/3 System. The JCT effort will benefit customers by improving planning, smothing product flows, reducing or eliminating unnecessary inventory, trimming costs, and improving service.

"Supply Chain execution depends heavily on global delivery fulfilment services. Therefore, Supply Chain Management needs information integration between internal order fulfilment systems and external logistics service providers. Given its extensive global network and express delivery fulfilment services, FedEx was a natural choice for a transportation and distribution provider," said Peter Zencke, Executive Board Member, SAP AG. "By leveraging the openness of the SAP Business Framework, our joint development work with FedEx will provide customers the seamless information link between FedEx logistics services and SAP's Business Processing, further extending the SAP Supply Chain solution."

The pilot programme will be expanded to additional customers throughout April 1998 with general availability in June 1998. The interface specifications will be published by SAP and a available through the SAP Complementary Software Program.

SAP is a market and technology leader in client/server enterprise application software providing comprehensive solutions for companies of all sizes and all industry sectors. Cultivating innovative technologies on a solid foundation of business experience, SAP delivers scalable solutions that enable its customers to continually improve upon best practices. SAP products empower people to respond quickly and decisively to dynamic market conditions, helping businesses achieve and maintain a competitive advantage. Founded in 1972, SAP is based in Walldorf, Germany, and employs more than 13,000 people at offices in more than 50 countries who are dedicated to providing a high level of support and service to the more than 13,000 installations of R/3 worldwide. The SAP World Wide Web site can be found at www.sap.c om FedEx is the world's largest express transportation company and is represented in Sri Lanka by Mountain Hawk Express, an MMBL Group Company.

CEAT doubles truck tyre production

Associated CEAT, the Sri Lanka - India joint venture tyre manufacturer, has invested Rs. 40 million in an expansion project which will nearly double its production of tyres for trucks, and has set up a Technical and Customer Service Department to enhance after sales support.

The company said it has commenced commissioning trials on the new equipment installed at its plant at Kalutara, and expects total production to rise from 12 tons to 16 tons a day in the first week of June. Associated CEAT's production of truck tyres will grow to 5500 tyres a month from the present 3000 as a result of this expansion.

'Our share of the local truck tyre market will exceed 50 per cent when the new equipment is commissioned,' said Abhik Mitra, Associated CEAT's Managing Director. 'The additional capacity will also help us augment our exports of tyres from Sri Lanka.'

He said the expansion was funded entirely by internal accruals, and represents a significant milestone in the growth of the five year old joint venture.

The expansion of production capacity would be complemented by the company's new Technical and Customer Service Department, which will substantially expedite customer claims settlement, conduct customer awareness and training programmes on tyre usage, provide technical advice and consultancy services to major transport sector clients and undertake product development, testing and benchmarking against other quality products in the market.

'Tyres represent a significant part of a trucker's costs,' Mitra disclosed. 'Speedy claims settlement, and access to technical skills and guidance are important factors that determine the choice of tyre in the transport sector.'

He said the company's Technical and Customer Service Department would ensure that Associated CEAT has the fastest claims settlement process among tyre manufacturers and importers in Sri Lanka. 'We will take the claims inspection process as close to the customer as possible by deploying mobile teams of engineers and decentralising the processing of claims to our regional distribution centres,' Mitra explained.

Mr. P. H. Bhanage who has taken charge as Technical and Customer Service Manager counts more than 30 years experience in the technical aspects of the tyre industry. He was earlier with Ceat India as National Technical Services Manager.

Associated CEAT, which was established in 1993, has invested nearly Rs. 325 million in plant and machinery with the objective of manufacturing world class tyres for the domestic and export market. The company's product range includes tyres for trishaws, light trcuks, trucks and buses.

Sri Lanka Investment Seminar in Malaysia

Teal Management congsulting (Pvt.) Ltd. one of the leading project developers and investment promoters in Sri Lanka offering investment-facilitating service to local and foreign investors. Our management consulting services assist a range of projects from infrastructure development to agriculture in Sri Lanka maximising the favourable incentives for investment offered by the Government of Sri Lanka.

As a consequence of the Far Eastern economic crisis the entire region has been singled out by investors for 'wait and see' approach. It has deprived the region of worthy foreign investment. Though Sri Lanka remains unaffected by this crisis, we believe our investment potential has been hurt somewhat for lack of proper promotion. However, we contend that inaccurate assessment of realities could further diminish Sri Lanka's potentiality as a location that rewards competitive advantage.

The firm could summarise this inactivity of investment by suggesting that there are two main barriers to foreign investment. One is the slow outflow of legitimate information about Sri Lanka and the other is the limited scope in Sri Lanka for the local business community toe search for overseas joint venture partners. If these two factors are addressed, we see tremendous potential for investment in Sri Lanka.

The proactive intervention of the private-sector initiative designed to break these barriers is seen critical. TEAL has taken this very first initiative of venturing in the overseas to promote investment in Sri Lanka.

Following a successful visit to Sri Lanka by a business delegation from Malaysia last month it was decided to lead a delegation to malaysia to promote investment in Sri Lanka. Consequently, we have now scheduled a one-day seminar titled Sri Lanka: An Investment Strategy for the New Millennium, on June 13 1998 at the Hotel Park Royal in Kuala Lumpur for prospective Malaysians investors. This event will be attended by senior officials of the Board of Investment of Sri Lanka (BOI) to answer any questions on the concessions to investors and TEAL fully appreciates the role played by the BOI in this event.

While this is an attempt to educate the Malaysian business community, they see this as an excellent opportunity for the local business leaders and entrepreneurs to meet potential joint venture partners or seek investors in Malaysia.

The economic indicators of Malaysia suggest that its economy is stagnant. Our intention would be to convey the message of the appropriateness of its businesses to divest in that economy and invest in a more stable economy like Sri Lanka whose economy grows at 6.5%.

TEAL feels that there are considerable new opportunities to develop business cooperation following the last years' visit of Her Excellency Chandrika Kumaranatunga, the President, to Malaysia. Our aim would be to exploit the favourable reception in Sri Lanka for bilateral commercial links between the two countries.