The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of June 23, 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 June 23, 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 June 23, 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 June 19th 1998 was 14.2 per cent for all banks. The Lowest Prime Rate among banks during this week was 12.5 per cent.

Average Weighted Deposit Rate of Commercial Banks (AWDR)
The Average Weighted Deposit Rate (AWDR) of Commercial Banks for the month ended April 31st 1998 was 9.6 percent.

Import-Export company now in shipping business

One of the latest import-export cargo handling services to come into the country's shipping firmament is Liverpools Navigation (Pvt) Ltd.

Sathasivam Vicendrarajan, J.P., Chairman of the Company commenting on the setting up of the agency says: "We have been in business of imports in the Pettah for over ten years". His other operations the Rajan Co. (Pvt) Ltd., import onions and other food stuff. Besides this Rajan Co. is operating in other spheres of business.

Mr. Vicendrarajan says: "having been in this trade for so long we felt we can now get into shipping".

Liverpools are said to be representing a number of shipping companies in the west. They include London based companies, Greece and several other areas.

A spokesman of the company told "The Island" they are getting a ship load of 2,500 tons of Urea from London. This vessel is expected in Colombo on June 30.

Negotiations are now going on with Iranian Shipping lines and recently a delegation was in Colombo to discuss the collaboration.

Meanwhile, they are also getting into the Air cargo business as well. Liverpools have been appointed special handling agents for Lion Air already. In the meantime the chairman of the company says they would acquire their own air craft.

He said they were now negotiating to purchase a cargo boat shortly. A boat is expected to reach Colombo for their inspection within the next week.

Cashless trading the norm
Bartercard renews old practices

Swapping goods and services in exchange was the norm in the ancient days before the advent of money. In modern days it lost its savour until business or governments found itself in difficulties. One of the first major barter deals in the country was when Sri Lanka signed the famous rice for rubber deal with China. It has gone on desultorily until the advent of difficult times. For instance the later deals like oil for tea are an example.

But the practice of barter has been growing in other parts of the world. Even multinationals have turned to barter to bolster their cash strapped treasuries when hard times hit them with excess inventories. Companies like Coca Cola, Xerox and Ford are known to do a small per centage of business in this manner. Pepsi-Co is said to have traded its soft-drink for Vodka with the CIS. General Motors have swapped locomotives for tea with Sri Lanka and selling the tea to English dealers for cash. The biggest barter operators are in the United States. The International Reciprocal Trade Association estimates that in the US last year there were over $11 billion worth of swaps among 800,000 outfits.

While barter has become an increasingly acceptable phenomenon the world over, regular operations in Sri Lanka began with the commencement of Brtercard Lanka in October 1996. Bartercard, said to be the world's biggest trade exchange is an Australia based company with over 20,000 members. And members can take advantage of Bartercard's international network.

While, it is said that large companies have whole departments specializing in this financially helpful practice Bartercard services the small to medium enterprises. "Our role is to provide smaller companies with this kind of service" says Johnny de Saram, Managing Director of Bartercard Lanka.

De Saram says Bartercard Lanka had been the role model for the two latest Bartercard exchanges in Hongkong and Bangkok. The Hongkong operation was launched by Rudy Chan last month while Bangkok commenced later. The network, which is now present in Australia, New Zealand, the United Kingdom, Sri Lanka, Thailand and Hong Kong is adding two to three countries to its international network each year. De Saram says that by next year they would go into Pakistan and the Indian continent.

Bartercard Lanka has a membership of around 550 companies and individuals. It has already put up deals amounting to around Rs. 6 to 7 million.

It is not for everyone to join the system. De Saram says, once an application is made they would go into how Bartercard could benefit the prospective member. "They should have non-profit making inventory or service time", he said.

Bartercard holders use "trade credits" to purchase goods and services from other members. A user of garments, for instance, may buy Rs. 1000 worth of the item from a garment maker. The seller is credited with 1000 rupees worth of trade credits by Bartercard while the purchaser's account is debited the same amount. Straight swaps are not required. Bartercard offices keep tab of the accounts and organise the clearance of the debt. In the same manner a service organisation which has excess service time can be made to become profitable through the Bartercard system.

De Saram explains that a member on joining will have to pay a cash fee when the first deal is completed. On every trade, it also collects a cash commission of six per cent. Five per cent will be in cash paid upfront, while the balance one percent will be on "trade credits".

For companies with non-profit making outlays it is not a bad deal to turn profitable says De Saram. John Ramsey an expert in Barter has been appointed to Sri Lanka operations by Bartercard International. "John's presence in Colombo will help us maintain the momentum of trading activities" says Johnny de Saram.

"Barter provides profit from excess inventory or service dead time when no profit is possible says Ramsey. In times like this when buyers of products or services are lax it certainly pays to go back to ancient times and traditions.

Software development for export
by Shirajiv Sirimane

Ecode Lanka Software Ltd., a company belonging to the Mitiska Group of Belgium has obtained BOI status for software development and export.

A unique feature of systems developed by Ecode is the ability to support major European languages, in addition to English. Their systems do not also have the year 2000 problem. With a staff of over 25 Ecode is geared for the growing European Information Technology market.

According to John Brillon, the Managing Director they are expecting an increasing demand for software development in Europe.

"We also foresee a shortage of software professionals in Belgium which made us look for an overseas development centre", he said.

He added that Sri Lanka was selected mostly due to the availability of high calibre, IT professionals who possess the right attitude.

"Future business plans envisage a substantial increase in sales coupled with a recruitment drive of 150 programmers within the course of the next few years. A Senior Project Leader has been entrusted with the task of human resource development. Extensive training is provided to new employees, both in-house and overseas, before they are assigned to projects. The company also believes in providing a "job variety" and exposure to different tools, methodologies, and technologies by rotating its staff between projects", he added.

He also said that 20% of the company's software would be produced in Sri Lanka and that the number would be increased in the future.

Today, Ecode is an established software developer with a staff of over 25 IT professionals. A resident Technical Director from the Netherlands provides the European management skills. A Sri Lankan sales Manger resident in Belgium handles marketing and promotional activities in the European region, Jayakody added.