Import-export cargo 'tween Indian Ports and Colombo
Breakbulk vessels to service ferrying

In an effort to replace the century/ old sailing crafts with breakbulk vessels to service the ferrying of import/ export cargo between Indian ports and Colombo has now been commenced by Sri Lankan shipping companies.

Already a ship belonging to Mercantile Shipping Company is being loaded at the Indian port of Tuticorin with cargo destined for Colombo.

Recently General Secretary of the Coastal Mechanised Sail Vessel Owners' Association F. Rymond was in Colombo with appeals to Sri Lanka officials to provide Tuticorin boats better facilities to berth in Colombo.

Sri Lankan ship owners say there is no need for this country to depend on Tuticorin boats when they could handle the cargo themselves and provide better service at lesser cost. Besides this the Sri Lankan vessels will be totally security cleared.

A note from these shipping companies say: "The two national carriers of Sri Lanka, the Ceylon Shipping Corporation and the Mercantile Shipping Company have commenced a regular liner service to serve the growing trade between this country and SAARC countries following the implementation of SAPTA".

While the Shipping Corporation container vessels are serving Sri Lanka -- Pakistan trade, Mercantile owned breakbulk vessels have commenced a regular liner service between Tuticorin and Colombo.

It is said that this could reduce the cost of foreign exchange to the Government since freight will be paid in Sri Lankan currency.

A Press release from Mercantile Shipping says:

"For security reasons no doubt, the security authorities even banned the entry of Tuticorin boasts into the Port of Colombo sometime ago. The boat owners were instructed to divert the sailing vessels to Galle. However, in response to appeals, security authorities lifted the ban subject to very strict adherence of security measures. After the repeated seizure of vessels by LTTE, security authorities have their reasons in restricting the entry of sailing crafts into the Port of Colombo.

"The only reason Tuticorin boats were permitted, was to prevent an interruption to the trade which would affect the consumers. It is for these reasons that the Mercantile Shipping Co., has now introduced a regular liner service between Tuticorin and Colombo in order to offer a service with minimum risk and serve the trade without any interruptions. Above all, there will be no additional cost to the trade as the Mercantile Shipping Co., will be levying the same freight rate as the Tuticorin boats.

"It should also be remembered, that Tuticorin/Colombo trade is a one way trade and the Sri Lankan importers pay for the goods and the freight. Hence Sri Lankan importers have every right to channel their cargo to the vastly superior breakbulk vessels of our national carrier.

"It is well known that the balance of trade between Sri Lanka and India has been in favour of India to the tune of several billions. The introduction of the shipping services by our national carrier will reduce that gap atleast by saving the cost of freight on our imports from India".

It is also the intention of Mercantile Shipping Co., to assist Sri Lanka exporters by carrying high value cargo such as nutmeg, cloves, desiccated coconut etc., on the return voyages. Exporters of these products will no doubt by induced to utilize the vastly superior breakbulk vessels, which could ensure the safe delivery of the cargo, with no claims unlike the Tuticorin boats.

Marks and Spencer M.D. on goodwill visit to Tri Star

The high quality and excellence of garments produced by Tri Star Apparel Exports and the company's concept of alleviating poverty in rural areas through its pioneering effort in setting up factories in the villages has come in for commendation by the the Managing Director of the world famous U.K. firm of Marks and Spencer, Mr. Peter Salsbury who was in Sri Lanka recently.

Mr. Salsbury accompanied by Mr. Chris Lewis, the Divisional Director of Marks and Spencer (operating for the Far East) and senior directors of S.R. Gent of U.K. were here on a goodwill visit on 20th August 1998.

They visited two of the biggest of 30 factories operated by Tri Star Group at Attidiya and the Main Factory at Maligawa Road, Ratmalana where over 2000 workers are employed.

This was Mr. Salsbury's first visit to Sri Lanka and the second visit by a high ranking official of Marks and Spencer. In november 1996 the Chairman of Marks and Spencer, Sir Richard Greenbury paid a visit to Sri Lanka and inspected certain Tri Star factories in the outstations which produced garments for Marks and Spencer.

Mr. Salsbury made an extensive tour of the two factories at Attidiya and Ratmalana seeing for himself production on line of garments for M&S. He also saw the most modern machinery now in use to improve quality, efficiency and productivity.

While on tour Mr. Salsbury took a keen interest in several welfare measures taken for the benefit of the employees to create a conducive working environment like spacious canteens, medical and recreational facilities, a modern bakery which bakes bread and short eats to be distributed to factories in Colombo for the provision of free breakfast and evening tea. Mr. Salsbury also evinced some interest seeing the Buddhist, Christian and other religious shrines at factory premises for the benefit of employees of all faiths signifying religious and racial harmony.

Mr. Richard Franks, Director (Overseas Operations) of S.R. Gent the main collaborator with Tri Star for the supply of Garments to Marks and Spencer showed Mr. Salsbury a wide range of ladies, and children's garments now being produced by Tri Star for M & S.

Mr. Franks told Mr. Salsbury: "We have not given Tri Star the easiest of styles. However Tri Star has taken up the challenge and achieved some remarkable success for Marks and Spencer".

The Chairman of Tri Star Group, Desha-bandu Kumar Dewa-pura who was associated with Mr. Salsbury during the tour of factories gave a brief outline of how Tri Star's business operations grew over the years from humble beginnings and the big challenge it took at great financial risks to open garment factories in the villages.

"We are happy that we were able to improve the living conditions of the poor people in villages by training them to produce garments of international standards. Though it took sometime for them to achieve competency we are happy to have shed some light into their lives", he said.

Mr. Dewapura said that it has been Tri Star's experience that giving a healthy working environment and a feeling of contentment in their jobs by monitoring their day to day problems, resulted in greater dedication and commitment among the workers. He valued the contribution made by Marks and Spencer and S.R. Gent in this regard and expressed the wish that their collaboration would go from strength to strength for mutual benefit.

Mr. Salsbury said that Tri Star's achievement in producing garments of high quality was a noteworthy feature. They were particularly happy to note the welfare facilities provided to workers and the concept of helping a large segment of the poor towards improving their standard of living.

Among those associated with the visits were Directors of S.R. Gent London office -- Mr. Richard Franks, Mr. John Scadden and Mr. Kevin Whyte and Directors of S.R. Gent Sri Lanka office Mr. Rod Hobbs and Mr. Ian Clayton and Quality Manager Ms. Shela Cullen.

Officials of the top hierarchy of Tri Star also participated.

Financial Management for Marketers

A management development workshop on Financial Management for Marketers will be conducted by the Sri Lanka Institute of Marketing on 11th and 12th September at Hotel Taj Samudra.

The methodology of this workshop is designed to help participants to develop their problem solving and decision making skills in the application of advanced financial management techniques to marketing and sales management problems. Presentations by a panel of expert resource persons will be follwoed by syndicate problem-solving and simulated decision making sessions using computer-based business games, interactive techniques and case studies.

The objective of this workshop is to help participants to develop financial analysis skills, interpret financial ratios from an investor's perspective, fund management, understand how financial markets work and 'hands-on skills in effective financial management for marketing and sales. Resource persons include Mr. Ravi Banudevan, Director Marketing, Directories Lanka (Pvt) Ltd., Mr. Praveer Samarasinghe, Corporate Planning Manager Richard Pieris Group, Mr. Dilshan Rodrigo of Standard Chartered Bank and Mr. Rohantha Athukorale, Brand Manager Reckitt & Coleman.

Keells Foods: Rs. 11.6m profit

Keells Food Products which reported a Rs. 11.6m. profitability before tax in the last financial yer 97/98 continues to build on the base established.

1st quarter '98 results reported by Keells Food Products Ltd., show an impressive turnover growth of 48% from 87.7 to 130.4 M. and profit improvement of eleven fold moving from 0.56 m to 6.2 m. before tax over the corresponding period in '97.

The company attributes the results to a concerted effort in all areas of the company to contain costs while strategising for growth in identified products and markets.

Seminar on the Impact of Currency Devaluation on Lanka's exports

The Exporters' Association of Sri Lanka is organising a seminar on the Impact of Currency Devaluation on Sri Lankan exports and seek methods to improve Sri Lanka's export competitiveness. The seminar will be held on Thursday, September 17, 1998 at 3 p.m. at the Auditorium of the Ceylon Chamber of Commerce.

Minister of Industrial Development Kingsley T. Wickre-maratne, who is also Minister of Internal and International Commerce and Food has already confirmed participation at this seminar. Senior officials of the Government and the Central Bank of Sri Lanka are also expected to attend.

Presentations will be made among others by -- Mr. Rajan Yatawara, Group Director, Hayleys Ltd., on the Impact of Currency Devaluation on Sri Lanka's value added exports sector;

Mr. Gomes, Chairman of the Garment Buying Offices Association and Mr. Mahesh Amalean, Chairman, Sri Lanka Apparel Exporters Association will speak on the effect on the garment trade.

There will also be presentations on the effect on Tea exports, Rubber, Horticulture etc.

On 21st January, this year the Exporters' Association of Sri Lanka submitted a report to Government on the Impact of Currency Devaluation in South East Asia on Sri Lanka exports. An update prepared on April 24, 1998, has also been submitted. Since then the currency devaluation in Russia and possible devaluation in China are causing great concern to the export trade. So far with the exception of Tea, a few Agricultural products and garments, most of our exports appear to be affected as a result of the East Asian crisis. Additionally with the exception of garments and textiles our industrial exports have being experiencing a negative growth for sometime.

The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of September 09, 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 September 09, 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 September 09, 1998 were as follows:

Average Weighted Prime Lending Rate (AWPLR) and Lowest Prime Rate (LPR)
The Average Weighted Prime Lending Rate (AWPR) during the week ended September 04th, 1998 was 14.8 per cent for all banks. The Lowest Prime Rate among banks during this week was 12.3 per cent.

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