Sri Log

COLOMBO, Jan 3: Sri Lanka’s rupee currency can be “flexible” in the future given pressure on the island nation’s balance of payments and declining reserves, but the central bank will not allow “volatile” moves, Governor Ajith Nivard Cabraal said on Tuesday.

Announcing the bank’s broader monetaiy and financial policies for 2012, Cabraal also said the country would negotiate with the International Monetaiy Fund for a follow-up programme as Sri Lanka nears completion of the Fund’s $2.6 billion loan programme tiiis year.

His comments are the first sign that the bank may be more willing to accept a weaker currency, something it resisted strongly by selling dollars from its reserves in the second half of 2011.

“It can move upwards or downwards, but it will not be allowed to give way to any hostile or speculative action,” Cabraal told Reuters when asked if the central bank will continue to maintain the rupee at the same level.

“It will not be at the same level forever, but it has the capacity to be moving not in a panic way. We won’t allow volatility, which is counter productive. There is no reason to panic at the moment.”
The central bank has intervened on both sides to maintain a stable rupee rate but the market’s bias has been for a weaker currency

Hie IMF has withheld the eighth tranche of the $2.6 billion loan after the central bank turned down its request for a flexible exchange rate and limiting intervention.

Sri Lanka will complete the IMF loan programme later this year and Cabraal said Sri Lanka would negotiate for a follow up programme with the Fund once it completes die loan.

“It will either be a surveillance or a follow up programme. We will have to negotiate it when they come next time and we will ask what land of a programme we can work out,” Cabraal said.

The island nation”s reserves declined to $6 billion at the end of 2011 from a record $8.1 billion in July last year as the central bank heavily defended the rupee.

The bank has spent around $710 million to keep the exchange rate steady since three per cent devaluation on November 21. It spent a net $1.36 billion in the first nine months of the year to keep depreciation pressure at bay.

Treasury Secretary P.B. Jayasundera last week said Sri
Lanka needs flexible exchange rates code for a devaluation as well as tighter monetary policy to discourage importers from taking excessive quantities of credit to buy imported goods.

The central bank had firmly said there will not be any further depreciation of the currency from the current 113.90 per dollar level after President Mahinda Rajapaksa in his capacity as the finance minister shocked the markets with a 3 percent devaluation on Nov. 21 when presenting 2012 budget.

Cabraal on Monday assured there will not be a depreciation though Treasury has said there will be another devaluation by between 2.5 percent to 3 per cent in early 2012.

Cabraal said the country’s economic output has reached $59 billion with growth of 8.3 per cent last year and he expected an 8 per cent expansion this year too and justified its rupee defence and more than $25 billion expected inflows in 2012 will help boost the BOP this year to record $825 million surplus.The expected $25 billion inflows include $12.5 from exports revenue, $6.5 billion from worker remittances, $2 billion from foreign direct investments, and $1.2 billion from tourism.

Dec 06, 2011 – Sri Lanka is expecting more than 1,000 business and official delegates for Sri Lnaka Expo2012, an export trade fair being held in March 2012 in Colombo.

A business forum will also be held and some of the attendies will be World Trade Organization (WTO) director general Pascal Lamy, Marc Bolland, chief executive of the retail chain Marks and Spencer and Sharen J Turney chief executive of Victoria’s Secret.

Over 300 local exhibitors will be exhibiting at the Sri Lanka Exp 2012, Sri Lanka’s Export Development Board chief Janaka Ratnayake said.

They will display manufactured goods, information technology, business process outsourcing, tourism and also investment opportunities.

Though the EDB is the lead agency behind the fair, the island’s tourism, tea, and investment promotion agencies are also involved, officials said.

Minister of Industries and Commerce Rishad Bathiudeen said organizers had already gone on road shows to several regions to promote the event which is a combined export, tourism and investment fair.

Sri Lanka is expecting to boost its exports to 15 billion dollars by 2015, minister Bathiudeen said.

The four day fair ‘Sri Lanka Expo 2012 – Partnering with the Hub of Asia’ will begin on March 28. The Sri Lanka Expo fair is being held after the absence of 15 years.

The end of a 30-year civil war in 2009 has already resulted in a tourism boom and made the country safer.

Ratnayake said large retail chains such as Walmart and Arcadia is looking Sri Lanka as a sourcing destination.

The Colombo-Tuticorin passenger ferry service which was started in June has been suspended indefinitely amidst some confusion with officials of both countries giving different reasons.

The vessel, which left for the island capital on November 18 not having returned since.  Sources in Sri Lanka have also mentioned that the halt may be due to low volume of business the vessel was doing.

The Ceylon Shipping Corporation, the general agent for the ferry service, was informed by the Indian counterpart Flamingo Liners Ltd that the Scotia Prince ferry service would be halted due to “technical difficulties,” a CSC official said.

However, CSC General Manager Sunil Obbodage said the ferry service was suspended because not many people were using it. The Scotia Prince ferry started operation following an agreement between the Sri Lankan and Indian governments last year. Flamingo Chief Executive Officer R.C. Thimaiah said the ferry service was suspended due to operational difficulties.

He also denied reports that there was an outstanding amount to be paid to the Sri Lankan fuel supplier and said they were clearing the outstanding credit facilities.However, the local fuel supplier has filed a case at the Colombo Commercial High Courts against Flamingo Liners.

Currently, the Scotia Prince ferry has been detained by port authorities on a court order until the outstanding bill of more than US$ 400,000 is paid.

Scotia Prince, the vessel with luxury facilities like casinos, restaurants and even duty-free facilities was launched from the VOC Port in Tuticorin by Union minister for shipping G K Vasan on June 13, this year. The bi-weekly service has been stopped abruptly without prior announcement, after having sailed for about five months.

This luxury liner was the first to be launched in this region. Even on the first day, it was mainly the port trust staff and their families who went on the maiden voyage. Though it has a capacity of 1044, port trust sources say that it has not carried more than 350 passengers even on certain peak days. Even the drive-in facility to take one’s vehicle was introduced in this ferry service in July. However, the numbers dwindled to about 150 passengers two weeks ago.

Initially, it was patronized by traders who took bulk cargo like saris and other goods for sale in Sri Lanka. These traders took with them workers, most of them migrants from other states to carry additional cargo, which is permitted multi-fold at a cheaper price when compared to airlines.

Meanwhile, when contacted, a port trust official said that the shipping services had not been stopped. “We came to know that there is some technical snag in the vessel and it is expected by Friday,” he said.

R Ashok Raj, a businessman from Tuticorin who made the trip one-and-a-half month ago said that it was not one of the most convenient modes of travel for a businessman like him.

“For instance, we checked in at 3pm at the VOC Port and were able to come out of the Colombo port only at 11am the next day, making it a very long and tiring journey. The customs’ service was also not up to the mark,” he said.

“The airfare from Chennai to Colombo is much cheaper and faster and nobody wants to waste time on travel these days,” he said adding that the ship though was very comfortable.

T Sethuraman another trader said that the ship is definitely meant for trade and business or fast travelling. “Crossing the Palk Strait is indeed an experience for holiday travelling and I don’t think much has been done for promoting it as a tourist attraction as it should be,” he said.

However, A Arun of E-Way Air Travels in Tuticorin told TOI that he learnt through some sources that the services had been stopped.

“To the best of my knowledge there was very poor patronage and the liner had not carried even half its capacity during the last five months,” he said.

Another travel agency in West Car Street in Tuticorin which has been booking the tickets for the ferry says that they had to cancel the tickets booked for next month and added that the passengers will be refunded. “We think the service is cancelled for this entire month and more,” said a worker.

Meanwhile, the online booking site www.flemingoliners.com displays the message “Coming Soon” flashing on its screen when an attempt is made to book a ticket.

This service was expected to have a good patronage from Sri Lankan refugees who want to go home as the problems have ceased in the island nation. With passengers allowed to carry a luggage capacity of 150kg per person, it would have helped them go back with everything. But, even patronage from these people was very limited, according to port trust sources.

16 Jan 2011

23 Jan 2011

14 Feb 2011

Malaysian owned Dialog telecom is doing their final business trick of survival or die. This time they are trying to manipulate Sri Lankans in the cricket world cup.

We all know that Dialog had great success in exploiting Sri Lankan mobile consumers together with Celltel and Australian based Mobitel Telestra. All these three foreign companies were making hay merrily pushing mobile consumers to the wall.

It all suddenly changed when then chairman of SLT Thilanga Sumathipala took a bold decision to take over Mobitel Telestra into SLT. Sri Lanka Mobitel under truly Sri Lankan management cut down the charges in surprising rate and still managed to run Mobitel as a profitable business. It proved that how much of exorbitant profits that other multi-national mobile providers like Dialog had been making.

All of a suddenly Dialog started making heavy losses (after decades of heavy profits). Last two years alone Dialog made lose of Billions of rupees. Now they are somehow manage to come into a break-even sate.

It is not only competitive rates, but truly Sri Lankan touch of service and advertisement campaigns by Mobitel made huge difference. All the mobile multinational mobile service providers like Celltel and Dialog had been promoting Western culture in Sri Lanka to fish Sri Lankan youth.

However, the western culture has no place in new Sri Lanka under Mahinda Chinthana. Sri Lankans are now thinking in different path. Dialog Telecom is now trying to mimic as a truly Sri Lankan company by using cricket. But naked reality of these foreign companies is exposed in every activity and advertisement. Their advertisements are so artificial. We all see bogus patriotism in every frame of these cricket advertisements.

Malaysian based Dialog Axiata is operated here to pump money out of country. Their love for and enthusiasm for Sri Lankan cricket is bogus. They just want to get out of heavy losses and lack of confidence of Sri Lankan mobile consumers using cricket. If they come back to profit, they will again start spreading western junk culture among youth to exploit them to maximum.

However true patriotic Sri Lankan nation in new Sri Lanka is too much for Dialog to take for rides again.

Related:
- Mismatch in Dialog advertiesments and coperate culture in new Sri Lanka

Insurance industry is based on fear of people just like terrorism. It says that “One man’s problem is another man’s business opportunity”. If there are no road accidents in Sri Lanka, vehicle insurance industry is going to collapse.

Cunning and shrewd Ceylinco Insurance company knows this fact more than anyone else. That is why they have invested millions of money in advertising to promote road accidents in Sri Lanka.

It is generally accepted fact that people should be rewarded for doing good things and generally punished for doing bad things. Then why does Ceylinco Insurance is rewarding foreign tours for those who meet with accidents?

The simple reason is every single road accident inflict fear on all the vehicle owners. Without accidents, insurance industry is not going to survive. That is why they promote accidents by rewarding the culprits!!

What type of a society are we living?

Me tharam siumalida kalu gal .. Hithannatawath bari nisa…. – A song by Sunil Edirisinghe

The Sri Lankan nation is heated with cricket fever. Cricket is lovely game by its own. However while cricket is played on the field so many teams are playing in media, business and political filed as well. This is an attempt to analyze these inside games.

Colonial inheritance

Cricket was introduced by colonial masters when we were underdogs under British colonization. When they left the island they had transferred their politico-social-economic  power to local agents. Cricket was no different. Cricket was played by handful of colonial schools like Royal and St. Thomas. Cricked administration was with comprador elite families of Colombo 07, Kandy and Kurunagala.

1996 World cup victory

1996 cricket world cup win was a result of many factors. By that time truly national schools like Ananda and Nalanda had managed to dominate the national team. In Parallel, people like Ana Punchihewa and Thilanga Sumathipala (An old Anandian and a Nalandian) came into the fore front in administrative side. The result was drastic change in the thinking of whole cricket team and the administration.

Counter attacking against Australia

Until 1996, we were taught to believe that cricket is “Gentlemen’s game” and we must play according to the norms preach by White Colonial Masters. But White nations used to sledge and humiliate us to keep their supremacy. It all changed when Arjuna Ranathunga and his team mates (with the backing of then cricket administration) start counterattacking in infamous Muralitheran Saga. It all peaked in winning the world cup by defeating the Australian team.

Playing cricket in our way

Before Sanath-Murali era we had plenty of classic cricketers who imitate English cricketers. But we never able to beat white players because we simply tried to follow English style which was best suited for people build up in cold conditions. However the moment we became innovative and start playing according to our physical reflexes and physical stamina, we were able to consistently defeat them.

2011 world cup

Since 1996, we have never been able to won the world cup again. We have lost our purpose and innovation in playing cricket due to commercialization.

Due to the win in 1996, cricket suddenly  became highly profitable sport in Sri Lanka. All the businessmen and politicians started eying to enter cricket administration for petty business goals in mind.

Business mafia controlling cricket

It is a shame that government has let multinational business agents to exploit true spirit of sport. Months before the cricket world cup start, the cunning business mafia started their vicious propaganda. It’s a big joke that these multinational companies are pretending to be so patriotic and cheering Sri Lankan cricket team. Their sole intention is to transfer the enthusiasm of true Sri Lankan cricket lovers into their business traps.

Malaysian based Dialog telecom have lost their market share and they want to win back business more than Sri Lankan team want to win back cricket world cup. But all their pre matured artificial cricket campaign had made true cricket enthusiasm into a joke. In Dialog cricket advertisement (Which is now telecasting in every 15 min whole day), the former cricketers are make up like ponsy !! It’s a shame that our former cricketers and administrators go after money without considering their personality.

Cheer before win

World cup is a competition. Each team is competing for win to the last second. Our business mafia want to fool general public like we have already won (Same mistake was made last world cup also), because what they mind is promoting their products rather than winning the world cup. In fact these Western dominated companies like a Western country to win the world cup. Because as long as West dominate the sport, their western brands can be dominated over our own Sri Lankan products.

From Coca Cola to Pietza hut, from Prima wheat to Dialog telecom the inside game has started. They have one goal in common. Fooling the passionate Sri Lankan cricket fans and sell their products in light of dominance of Western culture in our society!

Lets cheer Sri Lankan crcket for yet another world cup win, at the same time lets outsmart vicious agenda of business agents in the same time.

Article courtesy http://www.lankarising.com/

28 Feb 2011