Korea-Ceylon: Redundant staff to be laid off with compensation

None of the blue collar workers at Korea-Ceylon Footwear will be affected by the re-engineering process that had been set forth on August 26, says its Chairman, Mr. Lakshman Perera.

Instead a large number of the executive and supervisory staff found to be redundant will be laid off with compensation.

Perera says, the work of the company is being fully automated. As a result the services of some of the supervisory and executive staff had become redundant

Korea Ceylon, an associate company of C. W. Mackie & Co., Ltd., has had a reversal of its fortunes for a number of years now. At first it was a spate of strikes in its factories that caused production losses; later the Asian crisis affected its markets.

According to the company's returns for the year ending March 31, 1998 the turnover of the company had increased to Rs: 742.7 million from the previous year's Rs: 595.3 million. This has been due to a ''modest increase'' in prices and an increase in export, volume following the settlement of the strikes. However, the company made a net loss of Rs: 36.3 million as compared to the previous year's loss of Rs: 53.7 million.

Mackie CEO, Lakshman Perera has noted in his review for the year ending March 31 this year: ''There is an urgent need to reduce the capital gearing of the company by infusion of new equity to reduce financing costs''.

C. W. Mackie is now said to be considering the mode of infusing new finance into Korea Ceylon. The quantum considered is yet being held secret.

C. W. Mackie holds 61.2 per cent of Korea Ceylon equity with Korean investors 10.64%, Local Funds 9% Leather Products 3.76% and the balance by the public.

Meanwhile, in its re-engineering operations some of the factory equipment is being moth balled in view of the changes that are being made in the production range. The Company was earlier making canvas and rubber shoes for export. The range is being shifted to other types of shoes in keeping with market trends says Mr. Perera.

The Company Chairman is confident that the entire programme would be completed shortly and profitability in the company will begin by the year end.

Janshakthi's insurance for 3-wheelers

In a move that recognizes the services rendered by the humble three wheeler on the roads, Janashakthi General Insurance has introduced a unique Insurance scheme for the drivers of Bajaj Three Wheelers. Launched in association with David Peiris Motor Company, sole agents for Bajaj Three Wheelers in Sri Lanka, the scheme offers a Free Personal Accident (Death Only) Cover for Rs. 50,000 to any driver who has obtained a comprehensive Motor Insurance cover from Janashakthi General.

''This is the first time an insurance company and an automobile marketing company join hands to provide a special benefit related insurance scheme''.

Entrepreneurship Trading for Retirees of Puttalam Cement

The Sri Lanka Business Development Centre (S.L.B.D.C.) will conduct a Training Programme for the retirees of Puttalam Cement Company Ltd. from 1998 at Puttalam Cement Auditorium.

An intensive selection process had been launched by the S.L.B.D.C. in 25-29 Sept. 1998 to select the very best participants from existing and potential entrepreneurs among the retirees. This programme is aimed at developing entrepreneurial skills of potential persons to set up New Business thereby to create income generating activities and employment prospects.

Immediate objectives of the training programme are to develop entrepreneurial competencies of the participants and to equip them with basic management skills required in running an enterprise successfully.

At the end of the training programme the participants will be linked to Hatton National Bank for financial assistance to enable them to startup a business or other income genarating activities.

The training module used for the programme consists of unlocking competencies, matching person with project, formulating the business plan, presenting the business plan etc.

The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of October 06, 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 October 06, 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 October 06, 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 October 2nd,1998 was 15.9 per cent for all banks. The Lowest Prime Rate among banks during this week was 11.9 per cent.

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