     
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Embargo on Tuticorin boats
berthing in Colombo The embargo placed on Tuticorin boats from berthing at Colombo continues to be a point of discussion among Pettah importers, boat owners and the officials concerned. Earlier these boats were banned from entering Colombo and was asked to discharge cargo in Galle. But such a step would have caused much hardship not only to the importer but the consumer, too. Following the protests made the ban was withdrawn and each of the Tuticorin vessels got only one trip in 30 to 40 days. As a result they were unable to carry any export cargo from Colombo to India. In Colombo recently was the General Secretary of the Coastal Mechanised Sail Vessel Owners' Association to take up the matter with Sri Lanka Government officials. F. Rymond, General Secretary of the Association told the Island that he met the Acting Minister of Shipping Reggie Ranatunga and other officials. He said that these boats had been plying between Colombo and Tuticorin for nearly a century and that these boat owners and a host of others in Tuticorin depended on it for their livelihood. In addition to bringing in cargo to Colombo the boats carried Sri Lankan exports to Tuticorin. In an appeal to the President Mrs. Chandrika Kumaratunga the Association has asked for a separate berth in the North Pier for their boats. The appeal states: "You may be aware that we have been running a mechanised sailing vessel transport service for decades between Colombo and Tuticorin carrying essential food commodities at the lowest possible freight whereby the ordinary people of Sri Lanka with low income are able to purchase their requirements within their means. Thus the cost of living pertaining to essential commodities is kept under control. There are about 40 vessels engaged in this operation. "You may recollect, that there had been two bans imposed on our vessels to enter Colombo Port for security reasons. However, the bans have been lifted now with a condition that only one vessel would be permitted inside the Port. In this context, we wish to inform Your Excellency, that there had not been a single incident of any nature detrimental to the security or interest of Sri Lanka during this long decades of sailing vessel service. "Due to the restrictions in permitting our vessels inside the Colombo Port, each of our vessels (40 in number) gets only one trip in 30/40 days, whereby the owners of vessels and thousands of workers directly and indirectly employed, who solely depend on these vessels, receive a very meagre income with which they are unable to meet the expenses. Before the bans were imposed, the Pier at Pettah was set aside for the exclusive use of our vessels and there were no restrictions imposed over the entry of our vessels into the Port. As a result, 8 to 10 vessels were always inside the Port discharging Import cargo and loading Export cargo for the mutual benefits of the people of Sri Lanka as well as India. "Under the present procedure coupled with restrictions, our vessels have to be outside the Port in the open sea facing torrants and fury of nature, before they are permitted inside the Port one at a time. Further, preference is given to steamers, such that, our vessel has to move out of the berth with half unloaded cargo, leaving room for the steamers. This causes unprecedented delay in discharging cargo which the people of Sri Lanka need most". The
Tea market The Rouble crisis continues with the Rouble quoted on the 1st of September at eleven Roubles to a Dollar. The political uncertainty also continues although there are some hopeful signs that a more settled situation will emerge following the Clinton/Yeltsin meeting. From Sri Lanka's point of view the tea market is the most affected by the Russian situation with the absence of activity for Russia and other CIS countries being the main contributory factor for the drop in prices for a wide spectrum of teas normally purchased for these markets at this weeks auction. Following the uncertainty of the Russian Rouble prices at the smallest sale of 1998 witnessed a somewhat negative trend in levels of prices for the plainer poor leaf teas. Better Westerns continued on a more positive run as they were readily absorbed by the Western and other traditional outmarkets. Once again, the prices for the offerings from Uva districts continued to slide down with the exception of a few seasonal quality teas which were singled out by buyers. Most Low Grown varieties, too, were lower in value compared to previous weeks levels. Well made BOP1/OP1s continued to sell at attractive levels although marginally lower to last week. Most other grades witnessed steady declines from opening levels upto the end. Off Grades and Dusts too followed a similar trend with a few clean leas sorts maintaining and the balance being discounted fairly substantially. Therefore, it is advisable for the producers to concentrate on a clean leaf allround standard as these teas are readily saleable even at present. Tea production for the month of July 1998 at 23.4 m/kg is lower by 3 m/kg compared with 26.4 m/kg for 1997. Once again it is the high & medium elevations which have contributed to the shortfall. High Growns at 6.2 m/kg is lower by 1.5 m/kg or 19.67% against 7.7 m/kg for 1997 whilst medium growns at 3.8 m/kg show a minus 1.5 m/kg or 28.12% when comapred to 5.3 m/kg in 1997. Low Growns at 13.44 m/kg for the month is marginally higher than the corresponding figure of 13.43 m/kg for 1997. In spite of the monthly figure being lower for July the cumulative figure of 158.7 m/kg is 2.4 m/kg higher than the 1997 figure of 156.3 m/kg. This increase is entirely due to a 9.3 m/kg increase or 12.75% growth in the Low Growns with the High & Medium elevations recording a shortfall of 4.4 m/kg and 2.56 m/kg respectively when compared with the 1997 figures. Weekly Colombo Auction Averages It will be noted from the weekly averages covering Sale No. 33 of 26th August 1998 that with the drop in prices recorded last week the high grown average at Rs. 108/99 per kg is below the corresponding average for the same sale last year of Rs. 111/54 per kg and the medium grown average at Rs. 113/85 is only marginally ahead of the corresponding average the previous year of Rs. 113/20. The low grown average at Rs. 149/05 although still ahead of the corresponding weekly average last year of Rs. 141/13 is lower than the previous week's average of Rs. 152/43. With the decline in prices this week particularly for low growns, it is likely that all three elevational averages at this weeks sale will reflect lower values than the corresponding weekly averages last year. This is particularly disappointing since in Dollar terms the Rupee averages should have atleast been 10% higher to equate with the similar Dollar values last year reflecting the devaluation of the Rupee against the Dollar over the year. Of course, the cumulative Rupee averages still record a fair increase on the corresponding averages last year although the gap is likely to narrow if the current depressed marketing conditions continue. - Forbes & Walker Narammala, a fast developing town in the North Western Province was provided with automated teller and hi-tech banking facilities when the Commercial Bank's 56th branch was opened there recently. The first private sector bank to open its doors in Narammala, Commercial Bank has linked this branch to their other ComNet branches, providing customers in the area with direct access to the largest computer-linked banking network in the country. The complete range of services available at all other branches including tele-banking as well as foreign exchange transactions, LCs, trade and project financing are on offer at the Narammala branch, Commercial Bank's Managing Director Mr. A. L. Gooneratne said at the opening ceremony. He said the town had long felt the need of the services of a private bank in view of its rapid growth. "Commercial Bank today is one of the most stable institutions operating in Sri Lanka in terms of banking. We have the highest capital adequacy, in other words, the highest amount of capital and reserves considering the other local banks in Sri Lanka. This gives you the assurance when making deposits that you are banking with a very strong bank". He emphasised that the Bank also has the advantage of having stable institutions such as the Insurance Corporation of Sri Lanka and DFCC Bank as major shareholders. Speaking on the occasion Mr. Neville Peiris, Manager of the new branch said that besides the usual banking facilities such as current accounts and savings accounts the bank also offers short, term and long-term housing loan facilities tailor-made to meet individual requirements. "The Commercial Bank brings 75 years of professionalism and expertise in banking to Narammala" Mr. Peiris said. He also added that equipment needed for the agricultural industry which is the chief source of income in the area, can be obtained through the Banks' leasing scheme at short notice. The Commercial Banks' Narammala Branch is expected to serve the needs of residents in several outlying towns especially Dambadeniya, Dampellessa, Katupotha & Kalugammana. The first deposit was made by Dr. U. Rajapakse. Commercial Bank, one of the Sri Lanka's largest private and indigenous banks, recorded the highest volume growth in profits in the six months ending June 30, among local listed banks. It also achieved the highest percentage growth in deposits, advances and total assets over the balances as at December 31, 1997.
The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of September 04, 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 Septemver 04, 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 August 28, 1998 were as follows:
Average Weighted Prime Lending
Rate (AWRP) and Lowest Prime Rate (LPR) Average Weighted Deposit Rate
of Commercial Banks (AWDR)
* Ex Dividend Price |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||