      Business Editor : Eriq Dewanarayana
The All Share Price index and Sensitive Price index increased by 21 index points and 24 index points respectively. Average daily turnover increased by Rs. 83 mn. Agricultural Production
Tea production continued to increase. Rubber and coconut production declined.
In nominal terms, the Rupee depreciated against the US$ and Yen but appreciated against the STG, DM, FFr and SDR. Source: Central Bank of Sri lanka Mr. R.M.S. Fernando has been appointed to the Board of the Colombo Stock Exchange (CSE) with effect from 1st May 1998 in place of Mr. C.J.S. Samaraweera who resigned with effect from 30th April 1998. The CSE Board is now composed of the following: Mr. Rienzie T. Wijetilleke (Chairman); Mr. Ajit M. de S. Jayaratne; Mr Eraj Wijesinghe; Mr. A.D. Gunawardene; Mr. R.M.S. Fernando; Mr. D.H.S. Jayawardena; Mr. G.L.A. Ondaatjie; Mr. Douglas Wijeyeratne; Mr. D.W. Abeyakoon. Mercantile Leasing goes for Rights Issue Mr. N. U. Jayawardena, Chairman, Mercantile Leasing (MLL), announced a significant restructuring process by the company, to be achieved through a proposed new Rights Issue and an Employee Share Ownership Trust. As part of the restructure, the new line-up of partners with MLL will be the National Development Bank (NDB), the largest financial institution in Sri Lanka, and the International Finance Corporation (IFC), an affiliate of the World Bank (also the largest multilateral source of loan and equity financing for the private sector) ''Combining the resources and capabilities of these two leaders in their respective financial markets will provide a solid foundation for the future of the company'' said Mr. Jayawardena. Currently MLL's Share Capital stands at 8.286,618 million shares. Subsequent to the restructuring, the Share Capital will increase to 20.9 million shares of which 2 million shares—10% will be vested in an Employees Trust, while the NDB and IFC will each hold approximately 3 million shares. Mr. Jayawardene explained the restructuring process in stages saying that the Rights Issue which is timed for the end of August '98 will be on the basis of one new share for every existing 2 shares (1 for 2) at Rs. 30/- per share, resulting in the Share Capital increasing to 12.4 million. The new Convertibles of 3 million shares each at Rs. 35/- per share (held by the NDB and IFC), together with the Employees Share Trust allocation of 2 million will then take MLL's Share Capital up to a total of 20.4 million shares, with provision for a further 2.5 million shares to be issued in exchange for Bonus Debentures in June '99 and again in June 2000. Mr. Jayawardena expressed his appreciation of the initiative taken by the International Financial Corporation to support the issue of medium-term debt instruments. ''Corporate bonds which are tradable debt instruments are a long-felt need, and can offer investors an alternative to low interest deposit accounts and high risk shares''. He also continued to say that ''MLL plans to issue public quoted debentures for Rs. 220 million which will be jointly guaranteed by the NDB and the IFC, in fact this is the very first time that the IFC has come out in support of the issue of Rupee denominated Corporate Bonds in Sri Lanka''. The National Development Bank he said, had long been a trusted ally and went on to say that the rationale for alliances is that it makes for partners to focus their resources on enhancing their core competencies while leveraging complementary capabilities. In line with these developments MLL has also restructured it's business units to be able to focus services more effectively on customer needs within the market place. ''In the changed circumstances the Directors have decided it desirable to significantly raise the capital base of the Company to support future growth strategy, and is convinced that the new arrangement together with an enhanced capital base will enable the Company to take a giant step forward during the coming years'' said Mr. Jayawardene. ''In only a few months after the internal re-organization the benefits are already apparent, the Group has gained immeasurably in dynamism and efficiency'' he said. Mr. Jayawardene continued to expand on the efficient and innovative re-organizing within MLL towards identifying and exploiting market opportunities with a decisive approach and a number of important initiatives. ''Focus on human resources development is central to our new growth plans, we have enlisted the services of acknowledged trainers to prepare our professional staff for the new millennium. Improving the infrastructure is itself an equally important area, therefore the new corporate headquarters includes all amenities for optimum employee productivity'' he said. As Information Technology (IT) plays a crucial role in product and service innovation, the Company has also made a substantial investment in revamping it's IT operation, also ensuring relative security from the much publicized year 2000 ''date-change'' problems. ''Along with these preparations MLL will initiate a policy of transparency befitting the external perception we desire for our Corporate Identity and have made the following fundamental changes by strengthening the influence of independent directors in Board deliberations and in creating an Audit Committee as well as a Remuneration Committee'' said Mr. Jayawardene. ''While the remit of the Audit Committee is to ensure the maintenance of financial reporting process and standards, the Remuneration Committee on the other hand has the delicate task of monitoring the employee rewards system'' said Mr. Jayawardene. The proposed restructuring of MLL will only serve to further consolidate the Company's position as the premiere private sector leasing establishment, while it's new investors can only serve to propel the Company on to greater levels of achievement. This is the First Corporate Bond issue to be guaranteed by the IFC in the whole of South Asia. MLL Board of Directors are Mr. N. U. Jayawardene-Chairman, Mr. A. N. U. Jayawardene-Deputy Chairman, Mr. M. N. R. De Silva-MD, Mr. R. Senathi Rajah, Mr. Ranjit Fernando, Mr. A. Kathiravelupillai, Mr. M.O. Faizal Salieh. Hemas Travels ties up with Leisure Holidays By Shirajiv Sirimane Explaining the concept of Leisure Holidays, Imtiaz Esufally, Managing Director, Hemas Travels said that it was a total package. ''We promise to take you to your dream location or business meeting or conference via a range of internationally reputed airlines provide a variety of hotel accommodation and transport local for a very competitive price,'' he said. He said that they have set up a specialised division to provide this service. ''We are able to do this due to the fact that we are the Axis partner in Sri Lanka who due to their worldwide network and negotiating strength, are able to consolidate these travel arrangements on a regional basis'', he explained. He added that Leisure Holidays handled the entirety of a clients business trip arrangements, including booking of theatre tickets, restaurant reservations, arranging for car or coach tours, sightseeing expeditions, etc. ''Yet another attractive feature of Axis is the Discount Vouchers which are handed out to clients, entitling them to healthy discounts at pubs, shops, restaurants and much more'', he said. Two packages ''best of Britain'' and ''American Dream'' too, were launched last week. Samuel J. Poddar Director, Axis in Dubai who was present at this launch said that these two packages were unique for a business traveller in many ways. ''These two packages cover around 125 hotels in both countries and a host of exciting locations ranging from parks and surprise sight seeing tours. ''The business traveller could also take his pick of international conventions, exhibitions etc., He may wish to attend, and here too Leisure Holidays would see to all arrangements, we can even combine a holiday tour afterwards'' he added. ''In fact we can book you into a Disney Hotel right here in Sri Lanka which is yet another feature unique to Leisure Holidays'', he said. Hemas Tours is planning to extend their Leisure tours to Australia in the very near future. With Hemas Group celebrating 50 years of operation this year, even more exciting travel options will be in store for the frequent traveller! The indicative prices of Ribbed Smoked Sheet Rubber (RSS) for 02.07.98 are given below. These prices are valid until the next price declaration. Prices are based on Singapore, Colombo Rubber Traders’ Association and Local Buyer prices.
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