"The Kaleidoscope Broke!"

Internet Banking

2010-12-19T00:44:00.000-08:00

Many commercial transactions that earlier necessitated a visit to the bank can now be completed at the click of a mouse. Internet Banking has thus simplified people's lives by bringing banking into their homes and offices. If automated teller machines (ATMs) brought banking to the neighbourhood, internet banking brought banking home!

However, internet banking is not an unmitigated solution to all banking problems, far from it. Some of its drawbacks are:

There are security issues when transacting over the internet. Anyone who gets hold of your password can perform all of the transactions that you can.
Not all transactions can be done over the internet - deposits and withdrawals of cash, for instance.
The range of services is necessarily limited because human intervention is missing; often, investment decisions are better taken in consultation with a a banker.
By taking over some of the activities that used to be done by humans, it deprives people of employment - a critical factor, as people in the West are realizing.
The 'human touch', which forms such an important element of our social lives, is completely lacking in in internet banking.

Due to these drawbacks, internet banking will never completely replace conventional banking. However, it is safe to conclude that internet banking is here to stay.

The Old Cherokee's Lesson

2008-11-16T03:19:00.000-08:00

One evening, an old Cherokee told his grandson about a battle that goes on inside people.

He said: "My son, the battle is between 'two wolves' inside us all.

One is Evil. It is anger, envy, jealousy, sorrow, regret, greed, arrogance, self-pity, guilt, resentment, inferiority, lies, false pride, superiority, and ego.

The other is Good. It is joy, peace, love, hope, serenity, humility, kindness, benevolence, empathy, generosity, truth, compassion, contentment and faith."

The grandson thought about it for a minute, and then asked his grandfather: "Which wolf wins?"

The old Cherokee simply replied: "The one you feed."

(Courtesy: Ravi Bhatia)

'Bits of Crushed Crayon' by Maria A Munaff

2008-07-14T03:22:00.000-07:00

Surely, I had seen this picture before.....two hills with the sun rising between them, birds flying in the bright blue sky, a river curving down the hill, and at the top of the hill, a house. Was I asleep and dreaming or awake and gone back in time, through the pages of the drawing book I had when I was seven?

The house was yellow with a blue door, and the walls were slightly crooked. The roof was covered with red tiles and green creepers. Flowers of every hue studded the grass - red, crimson, magenta, yellow, golden, blue, purple, and white. A lazy dog lay at the bamboo gate and watched as schoolgirls passed, chattering and licking sour fruit out of leaf cones.

Three of them push open the gate, and it creaks. The dog wags its tail and follows them into the house. At a rickety table, they sit down to have their tea. It smells of wood-smoke and is served in enamel mugs as they munch on crusty bread and margarine. The table has the marks of the wood grain on it, like ripples and waves. Two red shoe flowers in a green bottle rest on its centre. An old ceiling fan whirrs overhead. Wooden shelves and cabinets are full of glass dishes and silver cutlery. Kettles and ladles, pots and pans line the kitchen. Onions and spices are frying for the evening meal. Women are laughing at the well as they rub and scrub with frothy yellow soap. The well is cool and deep and has green ferns growing in the cracks inside, and the bucket goes down with a loud splash. In between the banana trees around the well, ducks waddle in the mud.

As darkness falls, golden lights begin to shine here and there in the darkness, and fireflies flit about. The smell of the jasmine bush blows through the verandah. Burly uncles stop by on the way back from work, demanding tea and telling jokes. The men sit down to talk as the women scurry about. Little children gaze adoringly as the adults talk, waiting to be noticed or chasing the beetles on the floor. Their eyes light up as the conversation shifts in their direction. Aunts and uncles ask how they are doing at school and sometimes hand out coins.

From the house next door, the sound of hymns being sung; from the verandah, the buzz of the transistor as grandfather listens to the news - things happening far away; and a drunken man pedals by on his bicycle, singing sad songs to his long-lost love. The smell of steaming rice from the kitchen and of wax candles being lit for family prayers; the feeling of the scratchy jute carpet where you can rub your feet when red ants bite and the maroon velvet cushion under your cheek as you fall asleep; the touch of your mother's fingers as she runs them through your hair.

Was the world ever really like this? Were people ever this contented? Did single mothers always have to struggle alone and young children give up on life because they felt that nobody cared? Wasn't your brother supposed to live next door so you could pass hot bowls of chicken curry over the fence? And your sister sleep next to you at night so you could always see that she was warm enough? Didn't grandfathers sit in easy chairs wearing blue drill shorts, sipping Horlicks and telling you stories?

What happened to that picture? When did bonds become about investment and support what we provide at call centers? When did caring become about customer service and attachments about our e-mails? Where are the days when messages were sent by two children and a dog, with a slice of yesterday's birthday cake and bits of news to share?

Wish I could pick up my box of twelve crayons again to change the picture of this world we have made by our indifference and greed!

Temporary Loss of Momentum

2008-06-08T08:17:00.000-07:00

Not having got any response from my publishers for over a month, I called them up recently. The Chief Editor’s feedback was encouraging and discouraging at the same time. While our story itself has potential, she said, we needed to infuse more excitement into it. She indicated that the book reads too much like a report and that we needed to make it as gripping as an adventure story. “Fictionalize it”, she said.

I think we have ignored peripheral aspects (like descriptions of surroundings/ what people were wearing/ how the protagonist felt) while focusing excessively on getting the facts right... I do not think my publishers are interested in the book in its present form. The situation called for a decision:

Should we invest more time, do a major re-write - and continue to pursue them? Or should we approach a second-rung publisher and get the book out this year? The main things to be considered were time and timing.

So, I asked the protagonist what he thought. Here are his views:
“The Chief Editor indicated her interest in the story but the Head of Sales may have made her think again… In any case, it’s up to us to make it as gripping a story as possible. I feel it’s always better to go with a recognized publisher than a second-rung one… So, let’s invest some more time and then convince them to publish the book.

“As far as the timing is concerned - going by the prevailing situation here, it’s okay even if we delay the release till next year. It all depends on your availability to do it all over again. I am in favour of a re-write if we are to hit the top shelf. But get a second opinion if you feel the need to.”

So, what do you think?

Publisher's Reaction to TAKEN ALIVE

2008-05-12T03:43:00.000-07:00

"I have read it all, and enjoyed it throughly. The narrative is so distanced yet immediate that I found myself constantly checking my own response as I went along.

"I have passed on the manuscript to our Head of Sales, to get his assessment of potential numbers... I presume we are talking about marketing the book in India as well as Sri Lanka?"

PARENT - Job Description

2008-02-28T23:11:00.000-08:00

POSITION:
Mom, Mommy, Mama, Ma
Dad, Daddy, Dada, Papa, Pa, Pop

JOB DESCRIPTION:
Long term, team-players needed, for challenging permanent work in an often chaotic environment
Candidates must possess excellent communication and organizational skills and be willing to work variable hours, which will include evenings and weekends and frequent 24-hour shifts on call
Some overnight travel required, including trips to primitive camping sites on rainy weekends and endless sports tournaments in far away cities! Travel expenses not reimbursed
Extensive courier duties also required

RESPONSIBILITIES:
The rest of your life, must be willing to be hated - at least temporarily - until someone needs Rs 200
Must be willing to bite tongue repeatedly
Also, must possess the physical stamina of a pack mule and be able to go from zero to 100 kmph in three seconds flat in case - this time - the screams from the backyard are not someone just crying wolf
Must be willing to face stimulating technical challenges, such as small gadget repair, mysteriously sluggish toilets and stuck zippers
Must screen phone calls, maintain calendars and coordinate production of multiple homework projects
Must have ability to plan and organize social gatherings for clients of all ages and mental outlooks
Must be willing to be indispensable one minute, an embarrassment the next
Must handle assembly and product safety testing of a half million cheap, plastic toys, and battery operated devices
Must always hope for the best but be prepared for the worst
Must assume final, complete accountability for the quality of the end product
Responsibilities also include floor maintenance and janitorial work throughout the facility

POSSIBILITY FOR ADVANCEMENT & PROMOTION:
None
Your job is to remain in the same position for years, without complaining, constantly retraining and updating your skills, so that those in your charge can ultimately surpass you

PREVIOUS EXPERIENCE:
None required unfortunately
On-the-job training offered on a continually exhausting basis

WAGES AND COMPENSATION:
Get this! You pay them!
Offering frequent raises and bonuses
A balloon payment is due when they turn 18 because of the assumption that college will help them become financially independent
When you die, you give them whatever is left
The oddest thing about this reverse-salary scheme is that you actually enjoy it and wish you could only do more

BENEFITS:
While no health or dental insurance, no pension, no tuition reimbursement, no paid holidays and no stock options are offered; this job supplies limitless opportunities for personal growth, unconditional love, and free hugs and kisses for life if you play your cards right

(Courtesy: Gopi Krishna Madhavan)

Cost Management: Thoughts from Titan

2008-02-27T22:19:00.000-08:00

1. The emphasis of cost management should be on rationalizing costs, not on cutting them indiscriminately. We need to question each major outflow and ask, “What returns will I get from this expenditure/ investment? Can the money be used more productively? Can the desired results be obtained at a lower cost?”

2. A greater focus on costs can be achieved by cross-functional teams (CFTs) – consisting of enthusiastic influencers. Such teams work best when the members are empowered and motivated. One way of accomplishing this is by factoring the results of cost management into participants’ Key Result Areas.

3. Demonstrate organisational commitment to cost management. For example, Titan’s Managing Director recently launched “WOW” (War on Waste) and conducts monthly progress reviews with CFTs. During the initial meetings, participants brainstormed and generated initiatives with potential to save costs. These are then discussed and the initiatives with maximum saving potential are selected. Later, responsibilities and timelines are assigned, and results are reviewed on a periodic basis.

4. Cost reduction is not ‘Finance’s baby’; it is an organisational priority. Nevertheless, Finance professionals must be involved in operations to be able to enhance cost consciousness. This can be achieved by focusing attention on costs, analyzing cost data and sharing relevant information with CFTs.

5. Accountants can also help focus attention on costs by interpreting them intelligently. Examples from Titan’s watch manufacturing plant in Hosur:
(a) The Machine Hour Rate of Precitramme equipment was high because it was not fully utilized. The fixed costs were spread over a lower number of hours. This pushed up the cost and retail price of Titan Edge (“the slimmest watch in the universe”), thus suppressing demand for the watch. After we adopted a ‘variable cost MHR’ for costing and pricing decisions, the watch became an overnight success.
(b) In-house vs outsourced decisions: Similarly, the Manufacturing team used to outsource certain watch components because the in-house manufacturing cost appeared higher. However, when one looked only at relevant costs, it made sense to utilize existing machinery to manufacture those components in-house. Our cash outflow was thus reduced.

6. Even ‘Overheads’ need to yield some benefit: Before Tanishq’s business picked up, diamond-setting capacity (a labour-intensive process) was surplus, classified as ‘employee cost’ or overheads. Hence, the cost of stone-setting was not factored into the price of jewellery. We were losing a big opportunity. Later, realizing our lapse, we rectified prices and also looked at cheaper mechanized processes. This improved our gross margins on studded jewellery significantly.

7. Constantly review your assets and, when times are good, clean up your Balance Sheet… Release cash by liquidating non-moving/ slow-moving items. Tanishq’s retail businesses achieved this by constantly reviewing its current assets. Slow-moving jewellery designs were redeployed to other Tanishq showrooms. We also had road shows, exhibitions and ‘Best Deals’ counters - wherein jewellery was sold at attractive discounts. Many of Tanishq’s promotions were a resounding success. When all else failed, we even melted jewellery!

8. Identify the core problem and explore every opportunity to solve it: Initially, Tanishq used to buy gold bullion - 80% of our material cost - on spot basis, resulting in outflow of scarce funds and exposure to price risk... In the early 2000s, Titan was a cash-strapped company. We gradually started buying gold on credit from foreign banks (lower interest, open price) and operating on the forward market. These mechanisms reduced the company’s net capital employed and interest cost, boosted Return on Capital Employed, and helped hedge the gold price risk.

9. Contrary to popular logic, paying creditors late is not good business: When Tanishq approached diamond merchants to negotiate prices, we realised that we had been short-sighted by delaying their payments. The suppliers’ interest cost (higher than ours) had been loaded onto their normal prices, based on our longest-delayed payment… By agreeing to pay suppliers in time, we got significantly lower purchase prices, which helped us to further improve our margins.

10. When Excise Duty was introduced on branded jewellery, it came as a big burden in a low-margin business. We were already at a disadvantage vis-à-vis the local jewelers. To mitigate this risk, Tanishq established a manufacturing unit in an excise free area (Uttaranchal).

11. Advertising: Some Marketing people lack business acumen but they do have an important role to perform. Tanishq faced a three-fold problem:
(a) The proportion of money spent on producing advertising was excessive, relative to mass media spends
(b) Product ranges were launched without proper cost benefit analyses and
(c) Service providers’ rates had not been adequately negotiated down.
We needed to encourage the Marketing department to spend on advertising that reaches the customer rather than on production costs.
We also used Public Relations and press releases judiciously; these are a lower-cost and more credible medium than advertising.

12. People drive businesses... But when salaries are undifferentiated, good performers have no motivation to give off their best and they will seek more remunerative opportunities. Titan faced such a situation that also resulted in a costly attrition problem. So, the company revamped salaries, paid rates closer to best-in-market and demanded superior performance. Titan also introduced a package wherein 30% of earnings (even higher for retail staff) was linked to performance. This improved morale, efficiency and output.

13. This was preceded by an attractive VRS package that eliminated ‘deadwood’/ redundant employees, who had been a drag on the organisation.

14. Challenge employees to justify their existence, to measure cost savings relative to their salaries. For instance, I once negotiated with a credit card ‘acquirer’ (who placed electronic data capturing machines at our stores) for a reduction of 0.10% (10 percentage points) in their commissions. This resulted in savings for Tanishq that were more than my annual earnings.

15. One radical rule introduced in Tanishq was that domestic air travel could only be on discounted tickets, which were available for nearly 50% less than normal prices. This is a small item, but it resulted in lowering costs and better planning of activities. The most significant benefit was that people became aware that such cost-saving opportunities exist.

16. For greater involvement across the organisation, invite ideas from employees and announce rewards for suggestions that are successfully implemented. When ideas and winners are recognized (intranet, public felicitation), it could motivate others to come forward.

Learn To Love by Ralph Marston

2008-01-06T04:57:00.000-08:00

Learn to love challenge, and you'll fill your life with accomplishment.

Learn to love effort, and your skills will grow more valuable with each passing day.

Learn to love making a difference, and doors will quickly open for you wherever you go.

Learn to love giving freely of yourself, and you'll receive more fulfillment than you ever could imagine.

Learn to love being the authentic person you are, and everything you do will be infused with integrity.

Learn to love whatever work you're doing, and that work will bring abundant rewards.

Learn to love beauty for beauty's sake, and you'll discover a wealth of it in places no one else would even think to look.

Learn to love unconditionally, and there will be no limit to what your love can accomplish.

Learn to love life just because it is, and each day will be a grand new adventure.

Learn to love the moment you're in, and you'll find richness in every direction.

Learn to love the possibilities, and you'll make your way to whatever you seek.

Learn to love no matter what, and you'll discover what a miracle you truly are.

Courtesy: Mario Motha

When You Gotta Go, You Gotta Go

2007-12-15T21:58:00.000-08:00

Obtaining an Employment visa to the UAE, which ought to have taken ‘three or four days’ (according to my sources in Dubai) ended up taking all of eight weeks… If that sounds like I’m grumbling - No, I’m not … I have found a new kind of peace that is helping me to ride out this situation.

The High Commission of India has taken twenty months now – and there is no end in sight. It’s amazing how much lack of responsibility and empathy exists in the corridors of bureaucracy there! As was frequently mentioned when the Indian Government refused to condemn the Myanmar junta: “India does not necessarily do what is morally right, but what is politically expedient.”

Back to my scene… Until Wednesday, I was twiddling my thumbs and waiting for the UAE visa, which – as I mentioned - took a long time coming. I used the opportunity to wrap up matters with the bloke I am writing about… He has checked all the facts and spellings and given me a carte blanche on creative work.

I have asked to be booked on the December 21st flight to Dubai – to rejoin the country’s community of migrant workers before Christmas.

Fed Up of Procedures? Go, DIE!

2007-12-14T00:20:00.000-08:00

The process of renewing a Sri Lankan passport is simple and fast. This morning, we discovered exactly how fast - when Uncle and I decided to get the validity of his passport extended by five years. We visited the Department of Immigration and Emigration (DIE) in Punchi Borella.

The approach to the offices was like a bazaar, with colourful shops and restaurants in which to while away the waiting hours. We entered the building at 11 o’clock sharp.

Having obtained a form from Jetwing Travels and filled it up at home, there was no time lost. It was a simple matter of getting a signature, paying the appropriate fees (LKR 500 for a five-year extension) and waiting for the renewed travel document.

Signboards posted all over suggested that the passport would be ready “within two hours”. The dynamic gentleman behind the counter provided us with entertainment and kept us posted on the status.

Exactly an hour after we had entered the office, we were out – with Uncle’s passport having been renewed till April 2013! Considering that this office frequently handles more than 1,000 renewal requests on a single day, the experience was like a breath of fresh air.

Go, DIE!

...Madison County, Anybody...?

2007-12-13T03:17:00.000-08:00

When I was younger, I used to get my literary kicks reading books by Alistair MacLean. His descriptions blended fact with fiction and captured my imagination. I still recall how, in Fear Is the Key, I think, he describes how a fugitive evades arrest by climbing a tree... He then explains the role of the protuberance above the eye and how it prevented the pursuers from seeing the fugitive.

…I lost my reading habit when I started working. I preferred spending my non-working hours with some interesting friends, I guess.

However, in 2000, I met with a car crash in which I almost lost my left arm. While recuperating in hospital, I started catching up with reading. I started with John Grisham and got hooked on his story-telling style. I was a die-hard Grisham fan, still am. The Firm was my first book followed in quick succession by A Time to Kill and Runaway Jury.

I prefer the Grisham books to the movies that they have been made into. Give me a good book any day… Books spur the imagination, while movies generally tend to be damp squibs, especially after you have read the book.

I generally like the books that have been recommended to me. One memorable book was Ladies Coupe by Anita Nair – for the insights the book gave me into the feminine psyche. One exception was Lolita, which bordered on soft pornography at times but made for heavy reading.

The Bridges of Madison County must qualify as one of the best books that I’ve ever read. The treatment of the theme is sensitive; it touched a chord somewhere deep down inside me. ‘…Madison County’ takes story telling to another level, drawing on the finest human emotions. Few authors can draw pictures with their words and portray characters as realistically as Robert James Waller does.

So, what’s the book about? I’m not telling, but I am willing to lend the book to anybody who appreciates a heart-warming love story. The only condition is that you lend it forward…

Just Motherhood, No Apple Pie

2007-12-11T20:55:00.000-08:00

The young mother set foot on the path of life. “Is this the long way?” she asked.

And her guide said: “Yes, and the way is hard. And you will be old before you reach the end of it… But the end will be better than the beginning.”

But the young mother was happy and she would not believe that anything could be better than these years. So she played with her children, and gathered flowers for them along the way, and bathed them in the clear streams; and the sun shone on them, and the young mother cried, "Nothing will ever be lovelier than this."

Then the night came, and the storm, and the path was dark, and the children shook with fear and cold, and the mother drew them close and covered them with her mantle, and the children said, “Mother, we are not afraid, for you are near, and no harm can come.”

And the morning came, and there was a hill ahead, and the children climbed and grew weary, and the mother was weary. But at all times she said to the children, “A little patience and we are there.” So the children climbed, and when they reached the top they said, “Mother, we would not have done it without you.”

And the mother, when she lay down at night looked up at the stars and said, "This is a better day than the last, for my children have learned fortitude in the face of hardness. Yesterday I gave them courage. Today, I've given them strength."

And the next day came strange clouds which darkened the earth, clouds of war and hate and evil, and the children groped and stumbled, and the mother said: “Look up. Lift your eyes to the light. And the children looked and saw above the clouds an everlasting glory, and it guided them beyond the darkness. And that night the Mother said, "This is the best day of all, for I have shown my children God.”

And the days went on, and the weeks and the months and the years, and the mother grew old and she was little and bent. But her children were tall and strong, and walked with courage. And when the way was rough, they lifted her, for she was as light as a feather.

And at last they came to a hill, and beyond they could see a shining road and golden gates flung wide. And mother said, “I have reached the end of my journey. And now I know the end is better than the beginning, for my children can walk alone, and their children after them.”

And the children said, "You will always walk with us, Mother, even when you have gone through the gates.” And they stood and watched her as she went on alone, and the gates closed after her. And they said: "We cannot see her but she is with us still. A mother like ours is more than a memory. She is a living presence..."

Your mother is always with you… She's the whisper of the leaves as you walk down the street; she's the smell of bleach in your freshly laundered socks; she's the cool hand on your brow when you're not well.

Your mother lives inside your laughter. And she's crystallized in every teardrop. She's the place you came from, your first home; and she's the map you follow with every step you take. She's your first love and your first heartbreak, and nothing on earth can separate you. Not time, not space... not even death!

Courtesy: Charmaine Webster

"This Too Shall Pass"

2007-12-10T02:12:00.000-08:00

When I first met Uncle at Veeranna Gardens more than twenty years ago, I spent a lot of time with him. I needed to… because I was courting one of his daughters and I had to impress him before I could even begin to impress her.

He told me how mischievous his daughter had been when she was younger – but that did not dissuade me.

Uncle and I spent a lot of time together, drinking endless cups of tea together as he regaled me with stories of British Army life. We discussed everything under the sun: politics, sport, religion and life in general. I recall with fondness his sense of humour and his happiness despite the adverse circumstances during those days.

What impressed me most about him was his sense of history. He seemed to know everything that had happened in the past. By all accounts, he had already lived a life that was full.

In his later years, after the stroke that he suffered, I remember Uncle for his resilience. Against all odds, he soldiered on and was there with a welcoming smile whenever we visited him.

We still have vivid memories of my sister’s wedding reception, at which Uncle and Aunty surprised us all by doing an impromptu dance. That picture will be embedded in our minds for a long time.

My father-in-law was a good man who did his best for his family. He is in a better place now and life goes on for the rest of us. Looking down at his wife and children - his pride and joy, he would want them to be strong. I think he would want them to be comforted by the words of this song:

“The Father knows the tears you cry before they fall
He feels your pain, His heart and yours are one
The Father knows that sorrow's heavy chains are strong
But with His strength, you'll overcome.

“This too shall pass
Like every night that's come before it
He'll never give you more than you can bear
This too shall pass
So in this thought be comforted
It's in His Hands
This too shall pass.”

When Will We Ever Learn?

2007-12-07T20:23:00.000-08:00

Emmanuel Ratnajothi Rajaratnam passed away in Bangalore this morning, after an 81-year stint. My father-in-law was a good man.

In the days when I used to court his daughter with moonlight and roses, I remember him singing this song by Pete Seeger:

"Where have all the flowers gone?
Long time passing
Where have all the flowers gone?
Long time ago
Where have all the flowers gone?
Girls have picked them every one
When will they ever learn?
When will they ever learn?

"Where have all the young girls gone?
Long time passing
Where have all the young girls gone?
Long time ago
Where have all the young girls gone?
Taken husbands every one
When will they ever learn?
When will they ever learn?

"Where have all the young men gone?
Long time passing
Where have all the young men gone?
Long time ago
Where have all the young men gone?
Gone for soldiers every one
When will they ever learn?
When will they ever learn?

"Where have all the soldiers gone?
Long time passing
Where have all the soldiers gone?
Long time ago
Where have all the soldiers gone?
Gone to graveyards every one
When will they ever learn?
When will they ever learn?

"Where have all the graveyards gone?
Long time passing
Where have all the graveyards gone?
Long time ago
Where have all the graveyards gone?
Covered with flowers every one
When will we ever learn?
When will we ever learn?"

On Horns of Bullish Dilemma

2007-11-25T02:15:00.000-08:00

I visited Bahrain earlier this week for a round of interviews with a small (US$ 16 million) company called Al Zain Trading Co WLL. I have been short-listed and am expecting them to make me an offer over the next couple of days. I am very excited about this assignment because I see potential in the company that I can help unleash.

The designation would be Group Financial Controller and I didn’t hear a gulp when I quoted my price over the phone. In fact, they went ahead and booked my tickets after that (Emirates via Dubai while going, SriLankan direct while returning).

If I accept their offer, my predecessor will be asked to resign. Yes, the company follows a hire-and-fire kind of policy and I am aware that it could happen to me sometime. But I think I can live up to the expectations of the Managing Director.

Bahrain seems to be a better place to live in than Dubai, with greater savings potential thrown in for good measure… The only negative factors would be:
1. That I would have to say ‘Bye-bye’ to the TATAs and give up that employment-till-you retire safety net.
2. That it would be unfair to Titan after they have been so kind to me… even though they will take their pound of flesh from my final settlement.

Therefore, I am grappling with my conscience and my sense of security on this decision. What do you think?

On Dates and First Impressions

2007-11-25T01:11:00.000-08:00

My overall impression of Dubai is that it’s a great place in which to experience a new and alien culture. However, when it comes to living, I’d prefer Colombo, Bangalore or Goa any day… The fast pace of life in Dubai cramps my style, which probably indicates that I am not as young as I used to be.

The traffic is certainly fast but, thankfully, orderly. The public transport sucks - Taxis are expensive and unpredictable. Buses are predictable: You can consider yourself fortunate when the bus you are waiting for arrives in less than 45 minutes.

Like the Yanks, the Arabs drive on the wrong side of the road – I mean the right hand side. On my first day in the Middle East, I looked right while stepping off the kerb, into the path of an oncoming car. Luckily for me, the driver braked and waved me across. “Another Indian,” he must have assumed.

These Indians are everywhere. I asked a young man managing an Internet café whether he was from Tamil Nadu. “No, from Kerala,” he replied.

I ordered a parota and kurma at an Indian restaurant. They were good, but the uppuma that my Aunt ordered smelt better. The buffet lunch and ginger beer at ‘Chef Lanka’ nearby was worth the price (AED 14) for nostalgia value.

Unlike housing, electronics is reasonably priced. Uncle bought a desktop - complete with web cam and Internet access - for AED 2,200 (LKR 66,000).

Dubai’s malls and departmental stores are a browser’s delight. The chilled buttermilk in cartons (brand: Laban-up) and unlimited variety of fruit juices were delicious.

In BurJuman, there was a shop specializing in date products - including date wine and ‘chocoDates’; these were a gastronomical experience. My personal favourite was dates stuffed with marzipan, probably because it was after a long time that a lady was offering me a free date!

Taking Stock of My Life

2007-11-09T22:50:00.000-08:00

Over the past nineteen months since I left my home In Bangalore, I have learned the meaning of words like ‘hope’. And ‘frustration’.

I revived a hobby – journalism - and have even made significant progress on writing a book.

Rather late in life, my family learned to truly appreciate all the blessings that we had hitherto taken for granted. Along the way, we also learned some important lessons about life and values. We have become stronger - mentally, emotionally and spiritually.

We have survived the ordeal thus far... This would probably not have been possible without the steadfast support of Titan’s senior management. And we are immensely grateful to them for propping us up when they could have turned away... Through this experience, I discovered that God exists and that he works through people.

But this state of uncertainty could not continue indefinitely…

I needed to explore opportunities beyond Titan, even beyond India. That was a major step, but – with no alternative in sight - one that had to be taken. Accordingly, I arrived in Dubai during September 2007 to explore opportunities there, but got the timing wrong: it was the holy month of Ramadan, when companies work shorter hours.

I am back in Colombo after having spent a good five weeks in Dubai, looking at alternate career options. Of the jobs on offer, I have zeroed in on one with Voltas… as ‘Manager – Finance’ with their International Operations Business Group. The compensation package itself is nothing great, but at least it’s a bird in the hand. The silver lining is that I would continue to be employed by the TATA Group... with the prospect of returning home to India at some later date (after the bureaucrats in Delhi get their act together).

Let’s see what happens… I have not yet resigned from Titan and I certainly hope that the India visa comes through first… But from present indications, I expect to be moving to Dubai during the next fortnight.

Fast Cricket and Slow Beaches

2007-11-09T22:19:00.000-08:00

Because it was the holy month of Ramadan, there was no way I could eat, drink or smoke in public between sunrise and sunset. That was certainly out of respect for the locals’ customs. Besides, taking such liberties would have resulted in instant censure... However, I did manage to quaff a glass of chilled water in the pantry of my uncle’s office – and felt guilty at the transgression!

The Twenty20 World Cup was in full swing… Desiree Premachandra, SriLankan Airlines’ Country Manager for the UAE, invited the diaspora to watch Sri Lanka playing New Zealand at the Marco Polo Hotel. We watched the match on a big screen, while hogging cashew nuts and short-eats (washed down with Bacardi and coke). When Sri Lanka won by seven wickets, party-poppers were distributed to celebrate the victory.

On another evening, Mark Pillai, HR Manager – Middle East of Halliburton Ltd, treated me to a few rounds of the brew that cheers at The Seamen’s Club, while we watched India beat Australia by fifteen runs. The Indian expatriates celebrated, as only they know how! We adjourned to an Arabian diner to sample the cuisine – dishes that are easier to digest than to pronounce.

The white sands of Jumeirah beach are nice, in a tame sort of way... That’s the problem with artificial beaches… One is so accustomed to the force and power of nature, the waves crashing dramatically against the rocks of Mount Lavinia… In Jumeirah, the sea laps against the shore with small waves that belong more to a lake or lagoon than to the majestic ocean.

The redeeming features of Jumeirah beach were the jogging and cycling tracks that run the entire length of the beach. I did manage to put in a fair amount of walking at sunset, but not enough…

Dubai: What’s the Buzz?

2007-11-09T03:26:00.000-08:00

The buildings in Dubai have character… Towering over the landscape like an irreverent finger is the Burj Dubai - at 150 storeys and 555 metres already the tallest in the world.

The flyovers are amazing, as are the underpasses and floating bridges. The traffic whizzes past at breathtaking speed. While the mandated ‘minimum speed limit’ on the highways is 60 kmph, the fancy cars go twice as fast. The occasional motorbike and bicycle that one sees on the road are an aberration, a rarity that is probably explained by the ridiculously low price of petrol, which retails at AED 6.25 per imperial gallon or LKR 42 per litre.

Probably because the average Dubai resident can afford his own car, the public transport system sucks. The flow of traffic is – by and large – orderly… Jams are rare and tooting your horn is more an expression of extreme annoyance than anything else.

In this alien land, the diversity of spoken languages is amazing… While walking the streets, it is normal to hear a lot of Hindi, some Malayalam, a little Tamil and even a smattering of Sinhala.

Housing is Public Problem Number One. To describe it as expensive is putting it mildly. One can expect to shell out AED 3,000 (LKR 90,000) per month for shared accommodations comprising a room, a kitchen and a bathroom. That's par for the course; thankfully, I stayed with an aunt and uncle in the upmarket residential area of Jumeira.

Most Internet cafes charge AED 3 (LKR 90) per hour because they come equipped with a web cam and headphones. These are frequented by hordes of Filipinos, who carry on their chattering conversations with friends and relatives back home. One would be lucky to discover those cafes that charge AED 1 (LKR 30) per hour; these are preferred by the South Asians.

During my visit in September, I was pleasantly surprised to note that churches are air-conditioned. The diversity of the city’s culture was evident when, during the church service, we could hear the mullah’s call to prayer, emanating from the mosque next door.

Nuggets of Simple Wisdom

2007-10-11T05:27:00.000-07:00

Give people more than they expect and do it cheerfully.

Marry a man/ woman you love to talk to. As you get older, their conversational skills will be as important as any other.

Don't believe all you hear, spend all you have or sleep all you want.

When you say, “I love you”, mean it.

When you say, “I'm sorry”, look the person in the eye.

Be engaged at least six months before you get married.

Believe in love at first sight.

Never laugh at anyone's dream. People who don't have dreams don't have much.

Love deeply and passionately. You might get hurt but it's the only way to live life completely.

In disagreements, fight fairly. No name calling.

Don't judge people by their relatives.

Talk slowly but think quickly.

When someone asks you a question you don't want to answer, smile and ask, “Why do you want to know?”

Remember that great love and great achievements involve great risk.

Say “God bless you” when you hear someone sneeze.

When you lose, don't lose the lesson.

Remember the three R's: Respect for self; Respect for others; and Responsibility for all your actions.

Don't let a little dispute injure a great friendship.

When you realize you've made a mistake, take immediate steps to correct it.

Smile when picking up the phone. The caller will hear it in your voice.

Spend some time alone.

(Courtesy: Marina Motha)

Out of the Kaleidoscope

2007-09-20T06:31:00.000-07:00

Not having been out of the country for over a year, I had been looking forward to this trip to Dubai. Like a voyager of yore, I was venturing out to seek my fame and, more importantly, a change of fortunes.

At Katunayake, my new blue jeans and crisp white shirt seemed to have the same effect on the security staff as a red flag would have on a bull. I was stopped at every point and the contents of my overweight bag were scrutinised with some interest. My faithful dictaphone came in for special attention.

The waiting room for passengers flying out to Dubai was like a bus terminus. The teeming masses (that remit foreign exchange that keeps CBSL from going under) were in traveling mode, it seems.

The SriLankan Airlines flight was lovely. As we left the lush greenery and red-tiled roofs behind, I settled down with a can of Carlsberg beer – and then another. Through the window, I was pensive as we flew over the southern part of India, before the aroma of delicious chicken biriyani brought me back to reality. After tucking into a scrumptious meal like that, a few minutes of snoozing is mandatory. On awakening, I sipped a glass of coffee-flavoured Tia Maria and awaited the descent.

Flying into the Gulf, one sees a vast expanse of desert... nothing but sand dunes as far as eye could see… until a few minutes before landing.

The Dubai arrivals lounge has an international flavour to it, with all those nationalities scurrying hither and thither like ants. Emerging from the airport terminus was like exiting the New Delhi airport – a crowd of South Asian-looking persons (‘cabbies’, probably) crowded the entrance.

Since it was an evening in September, I had – I was told - escaped the worst of the heat, but it was hot nevertheless. The uncle’s air-conditioned Camry whisked me away at fast clip, past signboards that read ‘Minimum Speed Limit: 60 kmph’ and ‘Maximum Speed Limit 100 kmph’.

Welcome to life in the fast lane!

Dubai: Higher, Faster, Hotter!

2007-09-16T00:56:00.000-07:00

Look out for a series of posts on Dubai - when I find the time to write!

Sunny Side like No Other?

2007-09-09T06:24:00.000-07:00

COLOMBO: The Maldivian tourism industry, riding on its slogan ‘The sunny side of life’, is booming. The country has made giant strides and is now a leading destination in the Indian Ocean. Last year, 602,000 tourists stayed an average of 8.4 days in that country and spent US$ 115 per day (excluding payment for the hotel). Officials expect arrivals to increase by 10-15% during 2007.

Culture, nature and adventure are the mainstay of tourism in Sri Lanka, while beaches are the prime attraction in the Maldives. Besides, the Maldives attracts a more premium leisure tourist, exactly the kind of traveler that Sri Lanka has been attempting to woo recently. Hence, there is ample scope for a symbiotic relationship between the tourism sectors of both countries.

Addressing a press briefing here on Tuesday, Abdul Hameed Zakariyya, Maldivian Deputy Minister for Tourism & Civil Aviation, emphasized, “We are not competing destinations, we are complementary destinations.” He described tourism as a very dynamic industry and said that his visit was intended “to explore further opportunities for investors and industry on both sides”.

Immediately prior to the briefing, the Sri Lanka – Maldives Joint Task Force on Tourism (JTFT), consisting of representatives from the public and private sectors, discussed ways and means to protect each country’s tourism turf. The task force also decided to work on jointly promoting their countries to travelers from China.

Faiszar Musthapha, Deputy Minister of Tourism, seemed upbeat at the prospect of collaboration. He announced that Milinda Moragoda, Tourism Minister, had offered 25 scholarships to Maldivian students in the Sri Lanka Hotel School. In a move that is perceived as significant, the hotel school will provide certificate- or diploma-level training to these students. They will then form the nucleus for the skilled labour needed to staff the 44 new resorts opening in the Maldives.

Sri Lanka is inextricably linked with Maldivian tourism, playing a significant role in transporting passengers. Zakariyya pointed out that 35% of his country’s leisure traffic prefers flying SriLankan Airlines. Musthapha drove home the point, saying, “Through John Keells and Aitken Spence, Sri Lanka owns 12% of the Maldivian hotel sector.” Interestingly, of the 22,000 employees in Maldivian resorts also, 12% are Sri Lankans. Besides skilled labour, Sri Lanka also supplies fruits and vegetables.

Thus far, Maldivian tour operators have been pushing inbound tourism but will start promoting dual destinations soon. Last year, 26,500 Maldivians visited Sri Lanka - on holiday, to study or for medical purposes, making it the fourth largest source market.

The JTFT first met during 2004 in the Maldives but, with both countries suffering from the impacts of the tsunami, it has taken three years before this second meeting. It was decided that the JTFT would meet twice a year henceforth. An Action Committee will also be created – with six representatives from each side - to address any impediments. A smoother process for Maldivian investments in Sri Lanka and vice versa was also considered.

Rains Keep Yala Open

2007-09-03T03:12:00.000-07:00

Yala National Park, which is usually closed for visitors from August 31st, will remain open till September 15th this year.

On a request by the Chairman of the Sri Lanka Tourist Board (SLTB), the Director General of Wildlife Conservation has approved keeping the park open to visitors. With the good rainfall enjoyed this year, the park is not encountering water problems that usually prompt closure of the park.

“Keeping the park open is in the interest of tourism and we are fortunate that there is no water problem this year,” said Renton de Alwis, SLTB Chairman. “With tourist arrivals improving, it is good to be able to showcase this attraction to visitors currently in Sri Lanka.”

The travel and tourism industry has seen a recovery in August 2007, with Colombo having been the venue for international events: 8th ICAAP, the Regional Conference of the South Asia Free Media Movement and ‘FACETS 2007’, the current gem and jewellery exhibition. August being the month of the Kandy Perahara, an event marketed aggressively by Sri Lankan hotels, has also been a contributor for the high arrivals. The industry is hopeful that the trend will continue with other major events on the tourism calendar playing a part.

Courtesy: Prashanthi Ravindran

Letter to Dear Mr Bill Gates

2007-09-01T22:23:00.000-07:00

We have bought a computer for our home and we found problems, which I want to bring to your notice.

1. After connecting to internet, we planned to open e-mail account and whenever we fill the form in Hotmail in the password column, only ‘******’ appears, but in the rest of the fields whatever we typed appears. But we face this problem only in password field.

We checked with hardware vendor Santa Singh and he said that there is no problem in keyboard. Because of this, we open the e-mail account with password ‘******’. I request you to check this as we ourselves do not know what the password is.

2. We find there is 'Run' in the menu. One of my friend clicked 'Run' has ran upto Amritsar! So, we request you to change that to ’Sit’, so that we can click that by sitting.

3. One doubt is that any 'Re-scooter' available in system? As I find only'Re-cycle', but I own a scooter at my home.

4. There is 'Find' button but it is not working properly. My wife lost the door key and we tried a lot for tracing the key with this 'Find', but unable to trace. Is it a bug??

5. Please confirm when you are going to give me money for winning 'HEARTS' (playing cards in games). And when are you coming to my home to collect your money?

6. My child learnt 'Microsoft Word'. Now he wants to learn 'Microsoft Sentence'. So when you will provide that?

7. Hey yeh kya hai? I brought computer, CPU, mouse and keypad lekhin there is only one icon with 'MY Computer'. Remaining ka kya huwa?

8. Arre yeh to kamaal hi aap bole raha hi ki 'MY Pictures' lekhin there is not even single photo of mine. So when you will keep my photo in that?

9. Is that 'NOTEPEN' available in system? As I find only ‘NOTEPAD’, tell me fast as I lost my PEN.

10. There is 'MICROSOFT OFFICE'. What about 'MICROSOFT HOME’?

Thanking you,

Banta Singh,
Punjab.

(Courtesy: Jonathan Motha)

Planning For a Heart Attack

2007-09-01T05:10:00.000-07:00

A century ago, the average life expectancy of a human being was 46 years. The primary causes of death were pneumonia, tuberculosis and enteritis. Until as recently as fifty years ago, most people who suffered a heart attack died of it.

How times have changed! The current life expectancy statistic stand at 76 years, which means people are living thirty years more than they used to. They die of lifestyle-related causes: heart disease (29%), cancer (23%) and stroke (7%). The world’s largest-selling medicine is Lipitor, a drug that lowers cholesterol - another lifestyle-induced ailment. Our lifestyles are killing us softly…

We are surviving longer only due to the progress of medical sciences. Today, there is a high probability that the victim of a heart attack will survive. Statisticians point out that a male who has just survived his first heart attack stands a 75% chance of living at least five years more. A heart transplant recipient can expect to live ten years after the transplant. A person diagnosed with cancer has a 50% probability of surviving another five years, minimum.

But there’s a flip side to these advances in modern medicine, cautions Ashok Sardana, MD – Continental Group International, UAE. He ought to know. As a certified financial advisor from the Chartered Insurance Institute of London, Sardana has been advising clients on a range of financial services for over 27 years. Speaking on ‘Modern Medicine and Its Impact on Financial Planning’ recently, he said the high probability of a person’s surviving a debilitating illness raises questions about his subsequent earning capacity.

In the past, medical insurance and life insurance were adequate as bail-out policies. Medical insurance paid the hospital bills. Life insurance - subject to all those terms and conditions – provided an assured sum of money on maturity (survival) or to dependents on death.

For most of us, who have not been born with silver spoons in our mouths, our ability to earn an income is our most important asset. The problem is: What happens if you suffer an attack that diminishes your earning capacity before your life insurance policy matures? Would you be unable to afford the lifestyle that you have been accustomed to? How would you afford expenses like home renovation or travel or whatever?

‘Critical illness protection’ provides insurance by paying a guaranteed lump sum amount. The insured person becomes eligible to apply for the amount upon first being diagnosed with any of the specified illnesses or being prescribed certain surgical procedures. These typically include heart attack, stroke, cancer and bypass surgery.

Premium is based on age, gender and physical condition of the insured: Typically, a male aged 35 would pay a monthly premium of US$ 140 per month for an assured lump sum of US$ 100,000. A 45-year-old man would pay US$ 230 for US$ 100,000. A woman would pay a premium of approximately 83% of that, reflecting the lower incidence of critical illnesses among the fairer gender.

Eulogy from Jeremy’s Family

2007-08-30T22:33:00.000-07:00

Born: July 7th 1952
Died: June 3rd 2007

In our 29 years of married life, I learned values from Jeremy that are as unforgettable as the man himself. His family meant everything to him and he meant the world to us too. Jeremy was soft-spoken and unassuming, never hesitant to help a human being in need… even people who were unfair to him.

A man of many talents, Jeremy sang particularly well. Blessed with a keen photographer’s eye, he derived delight from the wondrous colours of nature’s palette. His adept hands fixed his children’s toys as confidently as high-tech gadgetry like television sets and computers. Even as he treasured his ‘family time’, he found relaxation in fishing and reading.

Jeremy spread sunshine wherever he went. Being the jovial and joyous person that he was, people loved being in his company, especially when he was in one of his entertaining moods. His magnetic appeal used to attract little children to him and he reciprocated by buying gifts for all who came his way.

In today’s world, some of Jeremy’s beliefs would appear quaint, like: a family should have just enough for its needs because, if there was an abundance of riches, the family could go astray.

Dadda, you were always there for us, ever so patient, our friend as much as our parent. It’s strange to realise that we will not have your reassuring presence by our side when we walk up the aisle.

We know that you are now with Jesus, watching over us. We will treasure memories of the wonderful times we shared… But, despite those memories, Dadda, we miss you…

- Patricia Fernando and the Children

Foreign Capital Not a Panacea

2007-08-26T20:54:00.000-07:00

Foreign capital does not necessarily spur growth in non-industrialised countries and hence it ought not to be considered a panacea. Non-industrialised countries are better off focussing their energies on domestic reforms. This was the crux of the 57th Anniversary Lecture of the CBSL, delivered by Prof. Raghuram G Rajan, University of Chicago.

Macro-economic theory suggests that the marginal productivity of capital should be high in poor countries that are deprived of capital. Hence, the logic goes, capital should flow from rich to poor countries and - within poor countries - to the most productive of them. Over time, less capital has been flowing to poor countries even though they have improved their financial systems. Foreign capital has not even been flowing to the fastest growing economies; in recent times, the direction has been reversing. Foreign direct investment from private sources does follow the theoretical expectation, admits Prof. Rajan, but a different pattern emerges when one looks at the big picture.

A reason for this anomaly is the limited ability of domestic financial systems in non-industrial countries to effectively absorb and deploy foreign capital. Where financial infrastructure is poor, the ‘development effect’ of capital on growth is diluted or eliminated, postulated Prof. Rajan, who is an Eric J Gleacher Distinguished Professor of Finance.

Basing his findings on empirical data from 1970 to 2004, Prof. Rajan highlighted that the pace of growth in non-industrialised countries is positively correlated with savings rather than with investment. Therefore, in what was probably a message for Sri Lanka, he recommended reliance on financing through domestic savings rather than from foreign capital sources. “Be open without being excessively reliant,” he said.

In fast-growing economies, excessive domestic consumption and dependence on foreign capital leads to currency over-valuation and concomitant lowering of exports. This adversely impacts returns on investment and overall growth. Besides, as country income increases, people spend on low-supply goods, resulting in higher inflation.

Earlier, delivering the inaugural address, Ajith Nivard Cabraal, CBSL Governor, admitted that the country’s per capita income of US$ 1,355 does not reveal the actual situation. The Western Province has a per capita income of US$ 1,900, while the other eight provinces average less than US$ 800. We cannot double per capita income every six to seven years with our own resources, he said. “We need to look at foreign direct investment and borrowings.”

Cabraal emphasised the need to make ourselves, as a country, more marketable. With infrastructure projects worth US$ 5 billion in the pipeline, he urged the gathering of bankers to move forward despite the challenges.

W A Wijewardena, Deputy Governor - CBSL, spoke on Central Banking: Six Decades after John Exter, the first governor of the central bank. The Exter Report presented the case for a central bank in the country. That was at a time when Ceylon was operating under the Currency Board system and the country’s currency was backed by foreign reserves maintained with the Reserve Bank of India.

The Ultimate Lingua Franca

2007-08-25T03:00:00.000-07:00

Eric Fernando, who took some amazing photographs, and I visited many interesting places along the coast, witnessing how people had rebuilt their lives after the tsunami. We handed over the 32-page booklet to the printers yesterday – and I am pleased with the effort…! Five hundred copies of the report will be ready in about a week’s time.

As you are probably aware, I am also writing a book - the biography of a Sri Lankan Navy Commander... When I have the time, I also write reports for the Financial Times on Sunday.

When it comes to communicating in English, I seem to be at a slight advantage here. When compared with urban India, written and spoken English skills are mediocre in Sri Lanka. However, among the educated elite (especially the older generation), there are many excellent authors and orators. And such people have reached very senior levels as a consequence of their typically-foreign education. Without intending to sound condescending, I have come across many bloggers who have an excellent command of the language. (I wonder: Do they use those skills to earn some pocket-money, like I do?)

Sri Lanka had a good head-start, having been part of the Commonwealth. But the rulers frittered that advantage away, just as they have done to the many natural advantages that this country had. On the subject of language, for example, they had a short-sighted and chauvinistic policy called ‘Sinhala Only’. This worked to the detriment of all other languages that existed – although the Tamils justifiably claim that it was to subvert their nationhood - and finally to the detriment of the country's BPO potential!

Report Done, It’s Time to Fly

2007-08-24T06:04:00.000-07:00

I am implementing plans to visit Dubai next month - long overdue - to check out jobs there as a safety net (if MHA decides that India would be better-off without me). Even if the India visa does come through, this is an opportunity to check out that city… One never knows when I will be footloose and fancy-free again.

I’ve decided to grab the first attractive opportunity that comes my way – and evaluate other options as they emerge...

I got roped in to write a report for United Nations Development Programme (UNDP)... Sri Lanka is hosting a UNDP Workshop next month and they needed someone to write a report on their tsunami recovery effort. I have just finished writing the report and handed over the 32-page booklet to the printers yesterday. The style is very un-UN-like and I hope they appreciate it. Five hundred copies will be ready in about a week’s time.

You might be able to read portions of it on my blog after the report is released. I have adopted a relaxed, readable style – unlike typical UN publications that read like they've been written by a constipated parrot. So, watch this space!

Marina to the Rescue

2007-08-24T05:51:00.000-07:00

Marina visited New Delhi last week and met with the decision-makers in the Ministry of Home Affairs. They managed to trace my file and my wife explained the case to them in intricate detail. After that, they finally seem to have seen reason and have promised to push things along. Marina has been asked to call again on Monday… It’s like waiting for exam results all over again!

As an employer, Titan has been fantastic, extremely supportive during these difficult times!

Choices: Dubai, Bangalore or Colombo?

2007-08-18T03:27:00.000-07:00

A Lion like No Other

2007-08-14T01:36:00.000-07:00

Sri Lanka Tourism’s initiative to support Lion Mahendra Amerasuriya on his installation as world President at the Lions International Convention in Chicago last month, saw the Upuli Channa Performing Arts Foundation presenting a stunning dance recital, showcasing Sri Lanka as a country rich in culture and arts.

The event drew over 30,000 representatives from 200 countries, from a 1.2 million strong Lion’s movement to the “United Centre” Chicago home to the legendary basketball players, the Chicago Bulls. The procession of member clubs were led by batik saree-clad ladies and sarong-clad men waving Sri Lanka flags and Sesaths, earning them the award for “Best Parade” in the procession.

Sri Lanka Tourist Board made use of this historic moment when the first Sri Lankan to be inducted to the high office of world presidency of the Lions Club took place in Chicago to draw positive attention to Sri Lanka. The sponsorship of the sixteen-member dance troupe of the Channa Upuli Performing Arts Foundation was but one aspect; the focus was a total awareness-creating programme of Sri Lanka - A Land like No Other - to the Lions present at the convention.

The Sri Lanka Tourist Board stall at the convention drew many, and the interest in Sri Lanka, was further heightened - amongst Lions at the convention - by Sri Lanka being the venue for their forthcoming 35th ISSAME Forum (Lions regional meeting covering the South African, Middle Eastern and SAARC region). The ISSAME is scheduled to be held in Sri Lanka this year from 5th – 8th December, and over 500 members are expected to participate.

Lion Mahendra Amerasuriya will travel to 200 countries during his tenure of World Club Presidency, attending board meetings and Lions movement-related activities. An illustrious Sri Lankan, Lion Mahendra has agreed to the request of the Sri Lanka Tourist Board to showcase “Destination Sri Lanka” on his travels abroad. Audio and video recordings covering Sri Lanka’s cultural diversity, scenic beauty, heritage sites, and wildlife will be included in these presentations. These will be reminders to the world that Sri Lanka is still a country of distinguished persons and a destination waiting to delight the traveller.

(Courtesy: Prashanthi Ravindran, Asst Director - PR, Sri Lanka Tourist Board)

On MICE, Ecotourists & Monkeys

2007-08-12T04:48:00.001-07:00

The MICE (Meetings, Incentives, Conferences & Exhibitions) market constitutes 15% to 20% of tourists to Sri Lanka. However, the MICE tourists' contribution is merely 10% of foreign exchange the country earns from tourism. That is because such visitors typically spend less time in the country (under four days) than a package tourist does.

Of the nine million Indians expected to travel out next year, 800,000 will be on MICE. Sri Lanka is well connected to India and - with even more airlines joining the fray - is ideally poised to tap that opportunity. To promote our country as a destination, Cooray will be accompanying a delegation of 25-30 tourism leaders to India.

These leaders will interact with at least 100 of India's leading companies at road-shows planned in Bangalore and Hyderabad (September 6th to 11th). The promotion intends to tap the abundant affluence in these software centres and grab a bigger byte of the conference business. These road-shows will be followed by similar ones in Chennai during October, and Mumbai and New Delhi later this year. Cocktails and presentations on Sri Lankan tourism will certainly feature on the menu.

Lately, Indian companies have been riding the crest of an economic wave and have the resources to take their employees to foreign destinations. Value for money is very relevant for them, and Sri Lankan hotels offer very competitive pricing. Indians who have visited Sri Lanka marvel at its diversity, describing it as "God's Own Country", an epithet popularised by Kerala Tourism to describe that South Indian state.

Dr D A C Silva, Senior lecturer at the University of Colombo, explained Community Tourism: "Traditional tourism focuses on tourism and hopes that spin-off benefits will trickle down to the community," he said. "But this recent trend promotes community welfare through tourism."

Today's tourist is an anthropologist who explores cultures, attitudes and lifestyles - to expand his awareness. This typically European eco-tourist is also curious about how his money is helping people. Palitha Gurusinghe, Chairman, Sri Lanka EcoTours, provided the sad example of the Udawalawe National Park, which tourists pay US$ 25 to enter, but the people there live below the poverty line.

Describing the promotion of Sri Lanka as "a real nightmare", Gehan de Silva Wijeyeratne, CEO - Jetwing EcoHolidays, narrated how a documentary film crew was obstructed by the Galle Fort Heritage Committee because their permit from the Sri Lanka Tourist Board was inadequate. By doing so, they were blocking international coverage potentially worth US$ 50 million in terms of telecast time on Discovery or National Geographic.

"If you want to film monkeys in Polonnaruwa," Wijeyeratne went on, "you need to liaise with the central Cultural Fund, the Department of Archaeology and the Forest Department, besides keeping the local temple priests happy." Acknowledging this narrow-mindedness, George Michael, Additional Secretary, Tourism Ministry, promised a 'one-stop-shop' that will issue such permits in future.

Jetwing Gets PATA on the Back

2007-08-11T22:37:00.000-07:00

In 2002, a couple of gentlemen on a visit to the Barnes Wildfowl and Wetlands Trust in UK were immensely impressed by what they saw there. “Why not replicate something similar in Sri Lanka?” they thought. In due course, they did! The gentlemen are Hiran Cooray, Deputy Chairman, Jetwing Hotels Ltd, and Gehan de Silva Wijeyratne, CEO, Jetwing Eco Holidays. Their replica was created within view of the renowned Sigiriya rock fortress and is Jetwing’s newest property – Vil Uyana.

But the transformation of their dream into reality was not quite smooth sailing… “We wanted to turn barren land into wetland, but the authorities here did not understand,” recounts Cooray. “Consequently, we had to struggle for 23 months to get approval.”

The creation of the 9½ acre lake alone cost Jetwing a whopping Rs 40 million… But it’s payback time now. The premium price-tag of US$ 110 per night for bed and breakfast does not seem to be a deterrent. Cooray says, “Occupancy is pushing 40% and the majority of our guests are locals... We can’t grumble at the way things are shaping up.”

Vil Uyana’s moment of glory, however, came recently, when the Pacific Asia Travel Association (PATA) announced its 24 Gold Award winners. In addition to these, four Best-of-Show Grand Awards were announced. Jetwing’s Youth Development Project at Vil Uyana bagged the Grand Award in the Education and Training category for the ‘We Dreamed a Dream’ project. The project was originally planned to bridge the skills gap and equip local youngsters for employment. This was done by providing training in hospitality and English – free - to school-leavers from disadvantaged farming families in the Sigiriya area.

Jetwing went to temples and asked monks to find them youth aged eighteen years and above. Teaching of English to the selected youth commenced in January 2006, at the temple premises itself. A ‘personality profile test’ facilitated determining the youngsters’ aptitudes for different areas of hotel operations. Accordingly, individuals were trained in Front Office, Housekeeping, Food & Beverage or Kitchen Operations. The passing out ceremony took place in June 2006 and successful candidates were absorbed into the staff cadre.

In addition, Sri Lanka has won three Gold Awards. SriLankan Airlines bagged one for its ‘Home Away from Home’ marketing campaign for carriers. Chaaya Hotels & Resorts won two: (a) in the Environment category, for its ecotourism project, Chaaya Village Habarana and (b) in the Marketing Media category, for its CD-ROM. All award recipients will be honoured at a special luncheon at the PATA Travel Mart 2007 to be held in Bali, Indonesia, on September 28th 2007.

Speaking at a media conference recently, Dr P Ramanujam, Secretary, Ministry of Urban and Sacred Area Development, remarked, “If tourism is to be sustainable, we have to get the community involved."

Based on its accomplishments - in ecotourism and engagement of local communities - Jetwing has recently signed a contract to build two rainforest lodges in Cambodia.

Long-term Investment

2007-08-04T22:47:00.000-07:00

I knelt to pray but not for long,
I had too much to do.
I had to hurry and get to work
For bills would soon be due.

So I knelt and said a hurried prayer,
And jumped up off my knees.
My Christian duty was now done
My soul could rest at ease…

All day long I had no time
To spread a word of cheer,
No time to speak of Christ to friends,
They'd laugh at me I'd fear.

No time, no time, too much to do,
That was my constant cry,
No time to give to souls in need
But at last the time, the time to die.

I went before the Lord,
I came, I stood with downcast eyes.
For in his hands God held a book;
It was the book of life.

God looked into his book and said
"Your name I cannot find
I once was going to write it down…
But never found the time."

(Courtesy: Ravi Bhatia)

Ravages of Time (1973 to 2007)

2007-08-02T06:15:00.000-07:00

UNICEF Foster Care Ad

2007-08-02T05:55:00.000-07:00

(Courtesy: Malaika Fernando)

Noah's Ark Retold: 2007

2007-08-01T23:15:00.000-07:00

The Lord came unto Noah, who was living in Canada, and said, “Once again, the earth has become wicked and over-populated, and I see the end of all flesh before me. Build another Ark and save two of every living thing along with a few good humans."

He gave Noah the blueprints, saying, "You have six months to build the Ark before I will start the unending rain for forty days and forty nights."

Six months later, the Lord looked down and saw Noah weeping in his yard - but no Ark. "Noah!" He roared, "I'm about to start the rain! Where is the Ark?”

"Forgive me, Lord," begged Noah, "but things have changed. I needed a building permit. I've been arguing with the inspector about the need for a sprinkler system. My neighbors claim that I've violated the neighborhood zoning laws by building the Ark in my yard and exceeding the height limitations. We had to go to the Development Appeal Board for a decision.

“Then the Hydro One demanded a bond be posted for the future costs of moving power lines and other overhead obstructions, to clear the passage for the Ark’s move to the sea. I told them that the sea would be coming to us, but they would hear nothing of it.

“Getting the wood was another problem. There's a ban on cutting local trees in order to save the spotted owl. I tried to convince the environmentalists that I needed the wood to save the owls - but no go!

“When I started gathering the animals, an animal rights group sued me. They insisted that I was confining wild animals against their will. They argued the accommodation was too restrictive, and it was cruel and inhumane to put so many animals in a confined space.

“Then the Ministry of the Environment ruled that I couldn't build the Ark until they'd conducted an environmental impact study on your proposed flood.

“I'm still trying to resolve a complaint with the Human Rights Commission on how many minorities I'm supposed to hire for my building crew. Immigration and Naturalization are checking the Visa status of most of the people who want to work. The trades unions say I can't use my sons. They insist I have to hire only Union workers with Ark-building experience.

“To make matters worse, Revenue Canada seized all my assets, claiming I'm trying to leave the country illegally with endangered species. So, forgive me, Lord, but it would take at least ten years for me to finish this Ark.”

Suddenly the skies cleared, the sun began to shine, and a rainbow stretched across the sky. Noah looked up in wonder and asked, “You mean you're not going to destroy the world?"

"No," replied the Lord. “The Government beat me to it."

(Courtesy: Ravi Bhatia)

FREE-lancing: A Darn Good Deal

2007-07-30T00:35:00.000-07:00

Business Editor: "The value of an article is not measured on word count but by whether it’s an assignment or rewritten press release or active story or investigation. Business reporters are paid over and above what news/ features freelancers are.

"The totality of a freelancer’s work is taken into account. That is, if a freelancer is a regular contributor and if it is felt that he/ she should make a reasonable amount for an otherwise lean month, then the payment is upped at the discretion of the editor.

"There is an upper limit for copy. An average of Rs 1,750 per piece is a darn good rate at any newspaper in Sri Lanka."

Comment: It is reassuring to know that what appeared to be inconsistency in payment is actually a deliberate attempt at protecting writers' earnings each month.

Turning Turtle Conservator

2007-07-29T22:34:00.000-07:00

We watched batik, pots and bricks being made… But the highlight was when, on the deserted Rekawa beach, we watched by torchlight as an endangered 250-kg Green Turtle laid its eggs.

Fortified by a couple of beers - and string-hoppers cooked by a hospitable ‘Daisy Akka’, we had trudged through miles of soft sand to observe this miracle of creation. With bated breath, we counted 106 ping-pong ball-sized eggs that will hatch in seven weeks. The nest protectors of Turtle Conservation Project (an NGO) had done it again!

We then returned to a rustic dwelling by the lagoon, where waves lap softly against the shore and creepy-crawlies do their number...

'Cloning' Credit Cards

2007-07-22T06:26:00.000-07:00

Advancements in technology, especially in the financial services industry, and the ease with which cross-border flows of financial transactions can take place have made it easier for criminals - including terrorists - to take advantage of liberalized financial markets and innovative technologies.

Recently, LTTE terrorists successfully perpetrated a massive credit card fraud in London, costing the British public - according to reports - about GBP 100 million by skimming credit cards belonging to the British public. Skimming has been a common technique used to raise funds for terrorists in Algeria, Kashmir and Chechnya, and now it is clear that it is being extensively practiced in the Western world too.

The modus operandi in this case was said to be the ‘cloning’ of credit cards skimmed at petrol sheds in various parts of England by the LTTE to fund its terrorist activities in Sri Lanka. It has been reported that about 200 independently owned petrol stations are under investigation, where LTTE terrorists operating under the guise of petrol shed staff have been involved.

The investigations have also apparently revealed that the credit cards cloned in Britain have been used to obtain funds in Thailand, and some other far-off parts of the world. In that context, it is important to note that such criminal activities could very well be happening in our own countries too, and we may be inadvertently funding terrorism ourselves.

Today, combating terrorism cannot be considered the sole responsibility of single governments or single sets of soldiers who fight at the front at the risk of their lives. We must all get involved in an international effort if we are to defeat this menace.

(Excerpts from keynote address by Ajith Nivard Cabraal, CBSL Governor, at a workshop in Colombo on May 7th 2007)

Terrorists: A Step Ahead

2007-07-22T06:22:00.000-07:00

Money laundering refers to the conversion of proceeds derived from any unlawful activity (tainted cash or property) into legitimate assets by bringing them into the mainstream. While a precise quantification of the funds laundered is difficult, IMF estimates a figure exceeding US$ 1.35 trillion (3% of the world’s GDP).

Typically, the process of laundering money takes place in three distinct phases: Firstly, placement - when the ill-gotten gains are deposited with financial institutions. Then, layering through multiple transactions is how the origin of the deposit is disguised. Finally, integration is the utilisation of disguised funds to purchase clean, legitimate assets.

Describing the phenomenon, H A Karunaratna, Director – Financial Intelligence Unit (FIU) of CBSL, spoke of the vital role played by central banks in maintaining financial system stability. Addressing a seminar on ‘Anti – Money Laundering and Combating the Financing of Terrorism’ last week, he pointed out that the banking system is vulnerable because of its ability to transfer funds rapidly.

Indicating how acts of terrorism do not require massive sums of money, Karunaratna recalled how Al-Qaeda caused massive destruction to the US economy in 2001. “Their cost was limited to flying lessons and a box of cutters with six blades”, he said.

In Sri Lanka, there are three pieces of legislation that seek to prevent money laundering and the financing of terrorism: The Convention on the Suppression of Terrorist Financing Act, 2005 (CSTFA), The Prevention of Money Laundering Act, 2006 (PMLA) and The Financial Transactions Reporting Act, 2006 (FTRA). These were enacted in response to a worldwide clamour for a clampdown. But “terrorists are always one step ahead of regulators,” contends Karunaratna.

Joan de Zilva, Consultant – FIU of CBSL, said that the definition of ‘unlawful activities’ that constitute an offence under the PMLA encompasses the entire gamut of crime. She said that Section 31 of FTRA places an obligation on the financial system to file suspicious transaction reports and to exercise customer due diligence. This overrides all restrictions on disclosure imposed by any other law.

On methods adopted for money laundering, de Zilva described alternate remittance systems like hawala as “a potent source of terrorist financing”. International trade transactions, cash smuggling and trade in precious metals and gemstones are also adopted. Referring to occasional misuse of charities, de Zilva said, “Some NGOs put on a humanitarian face and come to countries where natural disasters have struck. Sri Lanka received Rs 40 billion in the aftermath of the tsunami, 80% of which was brought in by NGOs - and banks swept aside due diligence.”

Buwaneka Aluwihare, Deputy Solicitor General, described money laundering and terrorist financing as ‘victimless crimes’ where no one rushes to the law enforcement agencies to file complaints.

To safeguard the banking system, banks need to know their customers, said R M P Ratnayaka, Sri Lanka Banks Association. In that context, “’Customers’ refers not only to account-holders but also to those who transact casually”, he clarified.

Consular Section: “Bureaucracy”

2007-07-16T22:57:00.000-07:00

For all intents and purposes, my visa tangle does not seem to have got unraveled one bit. The embassy here promptly sends a reminder to the ministry in New Delhi every month. They then wait – until the next month - for a response; this has been going on since August 2006..!

Titan seems to be losing hope and patience on my case, after having tried – completely ineffectively – to cut through the jungle of red tape. Marina (my better half) is planning a last-ditch mission to Delhi next week to try and make them see reason. If that fails, it would be time to activate ‘Plan B’ - securing alternate employment.

Grandma

2007-07-15T05:57:00.000-07:00

Francesca Victoria

Born: April 5th 1920
Died: June 25th 2007

“She opens her mouth with wisdom,
And the teaching of kindness is on her tongue…
And her children rise up and call her happy."
- Proverbs 31

Grandma was always gentle, kind, patient, caring, graceful, hospitable, generous, happy, loving, and dignified! Her life is a shining example of how life ought to be lived. By her actions, she taught us to treat people with kindness and forgiveness. She always kept confidences and only focused on the good in people. She was genuinely interested in the poor and the troubled, and gave unconditionally of her resources and time.

Grandma always seemed to have time for us, her grandchildren, too - to ask how we were faring and then listen patiently to our litany of childish problems. Her concern somehow made our worries just melt away. She was an integral part of our lives – as we graduated from report cards to wedding cards.

We fondly recall her presence: those beautiful eyes, those soft hands, that sweet smell of powder and eau de cologne and, the rustle of her saree as she bustled about the household. We would drink our morning cup of ‘Grandma’s tea’ from wobbly silver tumblers. With the sunlight streaming through the window, we have marveled together at the birds splashing in the bird-bath and twittering on the temple tree.

Grandma organised some memorable midnight feasts for us, at which we ate ice-creams and chocolates, and she enthralled us with stories filled with magic and mystique. Princes, princesses, fairies and a flying white horse featured prominently in them. In one particular story, the prince and princess got married in the end and Grandma attended their grand wedding. As a parting gift, she said, they gave her the blue enamel bangle that she used to wear!

She taught us action songs like ‘On The Good Ship Lollipop', ‘Animal Crackers’ and ‘My Ship Sails From China’ - and every song from ‘The Sound of Music’.

Our family values and sense of morality were learnt from her. Like when she used to switch off the television whenever inappropriate content came on. And how she gently reprimanded us when a skirt stopped short of our knobbly knees... When we slept over, she would put chairs beside our bed to ensure we didn’t roll off… even after we became teenagers!

Grandma was like a shepherd, and we were her flock... She brought up ten amazing children. Then, she did the same to us – and, finally, to her thirteen great-grandchildren. It brings us solace to know that she is now in the hands of the Good Shepherd from whom she drew so much strength.

Late at night, Grandma would say “Good night, God bless you” to each one of us and would retire to bed only after saying a prayer before the altar in the hall. She had unwavering faith in God. What sustained her during difficult times was prayer. "Lord Jesus,” she would pray, “hold my hand and walk through this world with me."

Once - at the end of our holidays - I was crying at the prospect of leaving. Grandma hugged me and said, “Whenever you feel sad, look at the moon and think of me - I will be looking at the same moon and thinking of you too.”

Thank you, darling Grandma, for all that you were to us and for all that you taught us about living! Until we meet again, we’ll look at the moon; okay, Grandma? Does it look the same from Heaven?

- By her 23 grandchildren

30 Years of Liberation

2007-07-11T21:57:00.000-07:00

July 2007 marks the 30th anniversary of the free market in Sri Lanka.

“The United National Party led by Junius Richard Jayewardene (‘JR’) swept to victory over Sirimavo Bandaranaike's Sri Lanka Freedom Party. With JR’s swearing in as Prime Minister on July 23rd 2007 came liberalisation of the economy. The shackles of a closed, state-controlled economy - which witnessed bread queues and foreign exchange shortages - were broken. JR opened the economy to market forces, to which many credit the subsequent growth - but also greater social divisions. The move also destroyed local industry to some extent.”

- Feizal Samath, Business Editor, The ST Financial Times (STFT)

STFT: Has the open economy brought gains to this country?

AM: Yes… The foreign exchange crisis of the 1970s brought home the message that we are living in an interlinked world. We realised, even before other countries did, the need to set our sails according to the new economic winds that had begun to blow across the globe.

STFT: Would we have done any better under a free market if not for the conflict that broke out in the early 1980s?

AM: Yes… The conflict represents a diversion of productive resources for destructive purposes. These could have been better deployed on infrastructure and social development.

STFT: Assuming there had been no conflict, would Sri Lanka have developed to become a successful state like other thriving Asian economies?

AM: Yes… It is estimated that the conflict has trimmed 2 percentage points off our GDP each year. The compounded effect is that our per capita income would have been at least 60% higher than it currently is. Besides, the 'brain drain' phenomenon wouldn't have been as rapid.

STFT: Has local industry been affected by the free market?

AM: Yes… Economic forces have caused some domestic industries to perform and others to perish. With uncompetitive firms having fallen by the wayside, there have been social costs.

WANTED: ‘One-Stop Shop’

2007-07-11T04:08:00.000-07:00

The Industrial Association of Sri Lanka (IASL) and Institute of Policy Studies jointly embarked on a process, last year, to cobble together a National Industrial Policy Framework (NIPF). The consultative exercise collated views of key stakeholders in Sri Lanka - including industry, employees and public authorities. The initiative, funded by World Bank, was completed and the report handed over to President Mahinda Rajapakse, also Chairman of the Economic Council, in March 2007.

Key conclusions of the NIPF:
Overall economic stability is essential for growth
Rural development must come from business linkages, not handouts
Industry requires better access to finance and information
Trade remedies are essential for protection of domestic industries

Final policy recommendations, based thereon:
The government must facilitate, by establishing an umbrella organisation/ one-stop shop for industry
Policy should be a consistent, consultative and transparent
All constraints must be addressed fast, within this framework

Addressing the AGM of IASL this week, Dr Anura Ekanayake, Chairman, spoke of the consultative process that had been followed. He was pleasantly surprised to note the degree of understanding and goodwill that emanated from the trade unions. “They are aware of productivity issues and competitiveness concerns,” he remarked.

Drawing on CBSL statistics, Dr Ekanayake expressed concern at the persistent decline in industrial growth, quarter by quarter. After recording 8.3% during 2005, growth had slipped to 7.2% during 2006; Q1 of 2007 has been a matter for real concern, with growth declining further - to 6%. This trend is particularly worrying because the slowdown is happening “despite the economy benefiting from increasing external and domestic demand for factory products”. Intensified global competition in the apparel industry and deceleration of economic activity in the North & East complete the gloomy picture.

Attempting to examine some of the causes of this trend, Dr Ekanayake spoke of higher and more volatile energy prices. Domestic prices are determined by international markets. The higher prices have had serious repercussions on manufacturing industries across the board. Predictably, these implications have been harsher on industries that are energy intensive.

The sharp rise in administered interest rates has raised financing costs. Due to the lower operating margins that they typically command, the “small and medium sector has suffered more than others,” Dr Ekanayake clarified. The deterioration in exchange rates has affected the competitiveness of domestic industries by increasing their cost of imported inputs.

Local industry was further impeded by delays in implementing infrastructure projects. By end-Q1 2007, only 8% of funds had been deployed, against the 25% that it should – on a pro rata basis – have been. Dr Ekanayake urged Kumara Welgama, Minister of Industrial Development - and Chief Guest at the AGM, to ensure that “expenditure be invested rather than diverted for other purposes”.

Welgama asked members to focus on the broader picture of balanced regional development. He urged industrialists to avail of the concessions offered by the government to invest in remote areas.

Sops for Nissan, Kyron & Amby

2007-07-10T23:52:00.000-07:00

The government is pulling out all the stops in a bid to attract foreign automobile majors to assemble cars in Sri Lanka. At least two rounds of discussions were scheduled during the week to iron out certain impediments and improve the feasibility of such a move.

Speaking to The Sunday Times FT, Kumara Welgama, Minister of Industrial Development, highlighted one significant change that would attract the motor industry to invest here…

Foreign manufacturers have already rejected the minimum local value addition norms of 30% that had been stipulated. The local auto ancillary industry is at a nascent stage, they say, and components are not available to that extent. They have sought that the norm be relaxed to 15%, which would make investment worth considering because tyres, batteries and upholstery are available locally.

Indicating a refreshing sense of flexibility, Welgama expresses willingness to concede the concession. He says, “We can gradually increase the local value addition to 30% later”, as ancillary industries develop and grow. Another positive fallout of such a move would be the generation of employment at the assembly units that would be set up.

It is expected that, once that is approved, motor companies would seriously consider biting the bait. There are a few companies that are already lining up to set up assembly lines. These include Nissan Motor Company and some Korean carmakers – including SsangYong, which launched the ‘Kyron’ last year.

Hindustan Motors is also in contention. The company’s most visible product is the Ambassador, which has been ruling Indian roads for generations and is a quaint sight on Indian roads even today. Originally based on the Morris Oxford (UK, 1948), its dependability, spaciousness and comfort factor have made it Indians’ most preferred car for generations.

"Down with Trade Unions!"

2007-07-08T23:18:00.000-07:00

Causes of Conflict at Workplace
The root cause of conflict at the workplace, where Trade Unions (TUs) are concerned, is that most of them have political agendas. Neville Joseph, Supreme Court Advocate, elaborated on this and other themes in an interview with The Sunday Times FT last weekend. He indicated that the trend was traceable to a slogan that TUs thrived on: “Down with capitalists! Down with employers!” That was a Marxist concept that permeated into our system, was blindly followed by the workers and has now boomeranged on us.

TUs can carry out a very important function in Sri Lanka, he affirms. They should be social partners whose role is to ensure productivity and enhance workers’ standard of living. However – excepting the Mercantile Union and the Bank Employees’ Union (“the educated lot”) – they have become political stooges of the government. As a consequence, even legitimate rights of workers are subjugated for political reasons, to appease the government.

What to Do When Management Is Unreasonable?
The main weapon that workers have is strike action, confirms Joseph. But, it is only as an ultimate resort that workers should strike work.

Before engaging in strike action, responsible TUs must agitate before the Commissioner of Labour for a settlement. There is a conciliatory process where workers can complain to the Commissioner and ask that the matter be referred to arbitration. While arbitration is going on, workers are working and livelihoods are secured.

Adequacy of Labour Legislation in Sri Lanka
Labour law is the most dynamic area of law in the world today because - unlike civil and criminal legislation - labour law affects the entire society through the working class. Being the ‘living law’, it must necessarily be dynamic, not static.

However, our labour legislation, being over fifty years old, is outmoded, opines Joseph. India has a National Labour Commission (NLC) under the stewardship of a retired Chief Justice. The NLC continuously measures changes in global labour standards, based on which it makes amendments and places them before the government for consideration. Hence, labour legislation in India is brought upto the required standard through amendments that are appropriate for the evolving environment.

An NLC on the footing of the Indian model is imperative. Sri Lanka has many erudite scholars, judges and TU leaders who can serve on the commission and evolve a law that is compatible with the changing circumstances.

The high cost of living is a matter for national debate, but a related aspect is the wage structure... Today, we are faced with a market where the buyer calls the shots. Employers say, ‘Paying Rs 6,000 or Rs 12,000 is not a problem, but will the buyer pay us? Or will we lose the market to China and India?’ A National Wages Commission can play a role by examining the problem holistically; establishing such an agency is the onus of the government. Before doing that, the private sector must improve productivity, says Joseph.

Luminaries Speak On Industrial Relations
Three space travellers aboard a rocket to the moon were explaining the reasons for their voyage:
The American astronaut says, “My country intends to dominate outer space.”
The Russian astronaut says, “My country must compete against the Americans.”
The Sri Lankan trade unionist says, “In my country, full moon days are holidays and – on the moon, every day is a full moon day.”

This joke was narrated at a seminar on ‘Conflict Resolution at the Workplace’ last weekend, to indicate the prevailing work ethic of trade unions in our country. The seminar was organised by Knowledge Agent, a company that offers a suite of training inputs through a faculty that includes professors and professionals.

Sri Lanka has witnessed an unprecedented wave of strikes in the public and plantation sectors recently. These highlight the adversarial nature of the relationship between managements and trade unions (TUs), which is a vestige of the country’s colonial past. In this context, the effective and tactful handling of TUs by employers would contribute towards minimising industrial unrest.

G Weerakoon, retired Commissioner of Labour (1982 – 1994), said that a major problem in dealing with TUs is the multiplicity of unions and their political affiliations. In a country with eight million workers, less than 30% of them are organised into unions. Nevertheless, there are as many as 1,600 TUs in operation. Unlike in South Korea and Japan, very few of these are enterprise-based TUs.

Many unions are controlled by outsiders with political connections and most employers would prefer not to deal with - or even recognise - them. This is perfectly legitimate, avers Weerakoon, because present labour laws do not compel employers to recognise TUs. The amendment to Industrial Disputes Act (No 56 of 1999) merely mandates employers to bargain with a TU having membership strength of at least 40% of the workforce.

After a country has ratified any Convention of International Labour Organisation (ILO), there is an obligation for organisations to comply with it. Sri Lanka has ratified ILO Convention 87 on ‘Freedom of Association and Protection of the Right to Organise’. Sharing information with the workforce helps in building up greater rapport between the two sides, observes Weerakoon. This is typically done through in-house bulletins and newsletters, to avoid disinformation and miscommunication.

In an address peppered with humourous anecdotes, Neville Joseph covered a wide range of issues. He identified two challenges confronting human resource management - to maintain harmonious relations and to have a contented workforce.

Thatcher’s Conservative government implemented labour legislation that curbed TU power. A classic example of the hard negotiation stance adopted was the twelve-month Miners’ Strike in 1984/85 that led to the rout of the union. In countries like Switzerland and Germany, public servants cannot strike. Joseph draws a stark contrast with the situation in Sri Lanka where “all strikes are legal.”

Joseph also narrated the case where the Joint Apparel Association Forum obtained a favourable Supreme Court verdict against the Port Trade Unions.

Francesca Victoria (1920 - 2007)

2007-07-07T22:50:00.000-07:00

“Grandma described World War II as an unforgettable experience filled with elements of fear and gratitude. The first incident that affected her happened a week after the birth of her first child on December 9th 1940. On the day of the baptism, instructions were received to drape windows, keep house lights off and remain in darkness. This was to prevent houses being visible to enemy planes. Accordingly, the Christening party was celebrated by candlelight.

“For over a year, Japanese attacks were dormant and then - on Easter Sunday - April 5th 1942, they resumed with greater intensity… Grandma had gone for Mass, leaving her 16-month-old baby at home with the nanny. Half an hour after Mass started, sirens went off, warning people to get into air-raid shelters. There was pandemonium at the church. Grandma could think only of her baby and, desperate to get home, she went home via the deserted side-streets when the police weren’t looking. On the way home, Grandma met her British neighbour, Mr James. He told her that he had instructed the nanny to take the baby and get under the wooden table if there was any bombing.

“Grandpa, who was away on business, called and said that he was safe and would return home soon. Not long after he returned, they received the news that Colombo harbour had been bombed. Grandma’s father-in-law wanted them to leave for India. They packed hurriedly and prepared to leave the country. No passports or visas were necessary; only a ticket needed to be purchased over the counter. They left that very night and were safe until the end of the War, when they returned home.”
- Michele Hepponstall

Islamic Banking Explained

2007-07-03T06:56:00.000-07:00

Islamic banking (IB) is derived from and governed by Shari’ah principles of Islamic law. These principles prohibit the levying of interest, involvement in unlawful activities, hoarding for profit and other transactions that result in injustice and exploitation.

The concept was explained at a seminar on Islamic Banking and Finance conducted by the First Global Group (FGG) last weekend. Muhammed Ikram Thowfeek, Chairman of FGG Sri Lanka, said, “Islamic banks are not charitable institutions, they are just concerned about protecting society while providing a return to their shareholders.” Indicating that it is a matter of form over substance, he provided the example of two supermarkets retailing chicken, where the one selling halal food would be preferred.

The asset base of the Islamic financial system is estimated at US$ 500 million, small vis-à-vis the conventional system that has had a head-start of over 250 years. However, it has been growing at 15% annually, faster the conventional system. ”We are not attempting to replace conventional banking,” clarifies Sheikh Essam Ishaq, Shari’ah Advisor at Discover Islam, Bahrain, “but provide a vibrant, practical alternative.”

Investor demand for Islamic banking products is high - certainly in the GCC, but elsewhere too. Standard & Poor’s has predicted that, to satisfy this appetite, global demand for Islamic finance will surge to US$ 4 trillion within five years.

The establishment of the Dubai Islamic Bank in 1975 is widely acknowledged as the genesis of Islamic banking. However, it was then perceived as “an eccentric manoeuvre from an eccentric place,” said Ishaq. IB survived the passage of time. Countries like UK, Thailand and Singapore have modified their banking legislation to permit Islamic banking. The Government of Thailand even has a 38% stake in an Islamic bank.

Speakers at the seminar were practitioners in the field and included Dr Mohammed Burhan Arbouna, Shari’ah Board Member of the United International Bank in Bahrain. While attempting to structure products in a Shari’ah-compliant manner, some firms have hoodwinked customers by merely changing the nomenclature from ‘interest’ to ‘profit’. For an existing bank to introduce IB, Dr Arbouna recommends a “firewall for money, accounting and employees”.

Because IB deals with real assets and services, all transactions should be backed by assets. ‘Sukuk’ is the Arabic word for asset-backed bonds, the global market for which is more than US$ 25 billion. Since you are not permitted to sell what is not yours, short-selling is disallowed.

Explaining the concept of ‘murabaha’ – a method of financing, Dr Arbouna explained how it differs from classical lending. The bank buys the asset from the seller and sells it to the buyer at cost plus a disclosed profit margin, with deferred payment terms. Any penalty paid by a defaulting buyer does not swell the coffers of the bank, but is donated to a charitable institution instead.

Six of the world’s top ten global banks are into Islamic finance. HSBC Amanah, for instance, is the global Islamic banking division of the HSBC Group.

How Malaysia Became A Dominant Force…

Speaking at the opening ceremony, Nazirah Hussain, Malaysian High Commissioner, described the strategic measures that her country had taken to become a regional hub of Islamic banking and finance. Malaysia’s aim is to be an investment gateway specializing in Islamic fund and wealth management, and a takaful (insurance) centre.

To accelerate growth, an executive committee comprising of government officials, regulators and industry leaders are working to create a more efficient delivery system.

The Immigration Department has accorded an “executive green lane” to the Malaysian Islamic Financial Centre (MIFC). This will help expedite applications by expatriates for long-term employment passes and, in turn, facilitate movement of expertise in Islamic finance.

Islamic banking, takaful and capital markets have been liberalized to allow the entry of new players. Fund managers of foreign Islamic funds also enjoy tax benefits. Islamic financial institutions are allowed 100% foreign equity ownership. Exemptions on stamp duty and taxation have been granted for foreign currency assets…

As a consequence, total Islamic banking assets have grown to 133 billion Malaysian ringgit (US$ 38 billion), accounting for over 12% of domestic banking assets. Takaful assets have increased to 7 billion ringgit and represent 6% of the insurance market.

Malaysia pioneered sukuk. More than two thirds of sukuk in the global market was issued in Malaysia. Outstanding Islamic private securities constitute 50% of the domestic corporate bond market.

While acknowledging that most Malaysians are Muslims, there could probably be a lesson there for Sri Lanka.

…And a Prescription for Sri Lanka

In conversation with Sunday Times FT, Thowfeek trashes the notion that Islamic finance is the exclusive domain of the Muslim community or that it promotes Islamic culture. He believes that IB can help Sri Lanka follow other Asian and Western economies in tapping the Middle East’s abundant liquidity.

Sri Lanka needs finance for its infrastructure and revenue-generating projects and Thowfeek believes that this can be met through Islamic financing.

After modifications to the Banking Act in March 2005, there is adequate flexibility for conventional banks to start Islamic banking windows and introduce some products. However, attempts to promote Islamic financing and deposit products have been feeble. These have been operated through financial institutions like Amana Investments and Ceylinco Profit Sharing.

What the country probably needs is a full-fledged Islamic bank… To enable that, Thowfeek places the onus squarely on the regulators. They have to perform a due diligence and play a proactive role – as regulatory institutions in other countries have done, he insists.

Although there are no authentic statistics on the IB market in Sri Lanka, Thowfeek guesstimates the figure at LKR 70 – 100 billion. The country has potential to become an IB hub for the entire Asian region, he says. Only if CBSL expresses interest and initiates action can Sri Lanka stand a realistic chance of competing with and overtaking other players. Government organisations, monetary authorities and the private sector must necessarily band together with Islamic banking institutions to make that happen.

Lanka as Finance Hotspot?

2007-07-02T22:35:00.000-07:00

Since the 1980s, it has been fashionable to talk about Sri Lanka becoming a financial hub or - to use appropriate terminology - an international finance centre (IFC). There has, however, been little real progress in that direction. An IFC is a location where the entire gamut of financial activities takes place with the active presence of strong international financial institutions. IFCs typically have a well-developed and integrated financial system.

Kicking off a debate at an economic conclave recently, CBSL Governor Nivard Cabraal explained two possible routes to becoming a financial hub. Growth could be organic, as happened with London and Tokyo; alternatively, the hub could be engineered – as in Singapore and Dubai. Cabraal suggests the latter mode as more relevant for Sri Lanka.

One prerequisite for IFC status is that the location should be strategically located, in geographical terms. Proximity to sea routes and easy access to major international markets are desirable. Another essential criterion is that time zones of the hub overlap with those of the major markets and economies that it proposes to serve (in our context, India and the Gulf).

Sri Lanka has all these aspects in its favour. But that’s where the positives end...

An IFC needs support services, legal and regulatory frameworks that provide certainty and effectiveness; we certainly have room for improvement there. The ongoing civil strife casts aspersions on political stability. Infrastructure is poor. Although the financial sector contributes a significant 10% of GDP, we do not have critical mass of international capital flows.

Other hubs have got a head start over Sri Lanka. But have we missed the bus permanently? Probably not, provided we plan ahead...

We could probably take a leaf out of the Securities and Exchange Commission of Sri Lanka’s book. Channa de Silva, Director General, said that the commission has developed a Capital Market Master Plan for Sri Lanka, spanning ten years. The first year will see the introduction of derivative products; other plans include listing upto twenty large companies and rejuvenating the mutual fund industry.

We need to decide on the proposed hub’s end-state and develop intermediate milestones, to assess our performance and effect mid-course corrections. It would be imperative for the government to increase the pace of measured policy reforms too.

Nihal Fonseka, CEO of DFCC Bank, suggested that the private sector should have a greater share of assets and liabilities in the financial sector. He also laid emphasis on good governance and revamping the regulatory framework. The CBSL should promote larger financial institutions by encouraging consolidation among banks, he said. That would give them the courage to allow the entry of global banks.

In these deliberations, what seemed to have been forgotten is the rationale: Will becoming an IFC make us rich? Or famous? Instead of aspiring to become a financial hub, can the associated capital and energy be channeled into more critical areas? A Cost Benefit Analysis would probably throw up some interesting answers…

Caeving a Niche for Tourism

2007-06-28T07:02:00.000-07:00

“We need to broaden tourism beyond the ten-day, three-city, operator-driven business… There is an economic rationale for attracting a higher percentage of niche tourists,” says Thilan Wijesinghe, Chairman of the advisory panel on Niche Tourism Products. In conversation with the Sunday Times FT, he identifies the Middle East, India and UK as markets in which he have the greatest opportunity to succeed.

Research on the niche segment reveals that getting from place to place by car is the foremost cause for dissatisfaction. While the time consumed is the stated reason, the root cause is poor connectivity and road conditions. Driving standards – or lack thereof – have also come in for some ridicule.

To cater to this segment, therefore, the need of the hour is infrastructure. The panel proposes that internal regional airports be upgraded “without spending big money”. While calling for domestic airlines to be encouraged, the panel recognizes the existence of security issues, due to which some aircraft have been grounded.

A programme to upgrade rail services through a public-private partnership is also under serious consideration. In addition, the upgradation of selected train stations is on the anvil. The panel has met Dullas Alahaperuma, Minister of Transport, in this regard.

Wijesinghe believes that a policy framework needs to be created and an enabling environment put in place first. Then, when times improve, the private sector will dive in and funding will be made available. There are also steps being taken for hotels and restaurants: de-bottlenecking approval processes for environmental clearances and liquor licences, for instance.

The advisory panel on niche tourism products includes stalwarts like Geoffrey Dobbs, Viren Perera and Nayantara Fonseka. “We plan to educate, inform and advise the Ministry of Tourism on a public relations campaign,” discloses Wijesinghe.

Attracting the 'Creamy Layer'

2007-06-28T05:39:00.000-07:00

Imagine: You are a tourist holidaying in Sri Lanka. On a deckchair by the beach, you are basking in the warm sunshine. You are mesmerized by the soporific sound of the sea and the sight of the waves breaking on the golden sands. As you sit up to sip your colourful mocktail, you think, "God's in His Heaven – All's right with the world!”

At that precise moment, a horde of vendors descends on you like a swarm of bees, pestering you, harassing you, to sample their wares. They refuse to scram until you buy something. What a bloody nuisance!

Only if it crosses a certain threshold, however, does such harassment get categorized as criminal activity. It is precisely to safeguard tourists from these and similar situations that the Tourist Police Division (TPD) was inaugurated in June 2007.

Speaking at a media discussion last week, SSP Maxie Proctor, TPD Director, indicated that - during 2005 and 2006 - there had been about 300 complaints registered each year. He explained that harassment by vendors was the consequence of inadequate tourist arrivals. Spelling out the TPD’s roadmap (now under implementation), he indicated that resources had been the constraint thus far. Now that personnel have been recruited, they will be provided with intensive training inputs.

In addition, police posts in certain coastal areas and other places of tourist attraction have been identified for upgradation to police stations. Proctor said out that some police stations have also been identified for improvement. Enhanced protection will ensure that tourists have a hassle-free experience, would help communicate the message that Sri Lanka is a safe place to visit.

Despite being the fourth-highest foreign exchange generator in Sri Lanka, tourism’s contribution is small: just 1.5% of GDP, against 8% internationally, says Thilan Wijesinghe, Group CEO/ MD of Forbes & Walker.

“Niche Tourism is going to be very important in coming years,” he believes. In his avatar as Chairman of the Advisory Panel on Niche Tourism Products, Wijesinghe is assisting the Tourist Board in defining standards for boutique hotels. Speaking from his experience at Tea Trails, Bogawantalawa, he insists that hotels can curb harassment - by procuring provisions and services from surrounding areas.

Based on inputs from the panel, Sri Lanka Tourism has launched a drive to prioritise quality over quantity. The rationale is simple, Wijesinghe explains: The creamy layer of tourism worldwide consists of the top 3% of tourists, a segment that spends 30% of tourism dollars. Because of their spending power, niche tourists demand very high standards. They expect to be received at the airport, cleared through immigration/ customs, and whisked away to their hotels. They travel individually or as couples, and treasure their privacy.

George Michael, Additional Secretary in the Ministry of Tourism, admitted that tourism was facing difficult times. However, with the industry employing more than 300,000 people – and “feeding a million” – they could not afford to leave any stone unturned in improving the situation.

Advice by Feizal Samath

2007-06-28T03:34:00.000-07:00

We must always be careful not to overdo the ‘praise’ of the public or private sectors in stories.

A straight forward news story is reporting the facts. In a story where allegations are made, we report the claim and balance it by getting the other side to comment.

This is not easy in the style of writing that we promote at the STFT – featurish, laidback stories that would sizzle and excite the reader enough to read a serious biz story on a relaxed Sunday morning or afternoon. Now this is where experience also counts – particularly in knowing the background to events, issues and sectors that we cover.

For example – say, finance – we may be impressed by a presentation made by Dr P B Jayasundera, Treasury Secretary, on the economy; but for journalists who keep abreast with the news, we are also aware that he can be a political stooge. Thus, we temper praise for his presentation and ‘facts’ with the fact that he may also be responsible for the crisis whatever it is.

Then, for example – we would find Aitken Spence’s new plan to use indigenous food a great story and great motivator of what we should eat. However on the other hand, we may be unaware that the hotel chain may be discriminating against local villagers from the community and buying stuff from another village. Or that it sells stale food to guests. Thus, if such a thing is happening, we may shoot ourselves in the foot by overdoing the praise-for-the-hotel-on-what-a-great-thing-it-is-doing, etc while sections of the public who know the other side will find us very partial.

The point I am making is that in trying to make an uninteresting story look exciting and to tempt the reader to go beyond the headline – which is what we are striving for – we may unwittingly be offering too much praise or too much criticism. The trick here is to be balanced and objective – and also make a complicated and boring business/ finance story readable for a Sunday reader.

Desiderata by Max Ehrmann

2007-06-21T04:33:00.000-07:00

Go placidly amid the noise and haste,
And remember what peace there may be in silence.
As far as possible without surrender
Be on good terms with all persons.
Speak your truth quietly and clearly;
And listen to others,
Even the dull and the ignorant;
They too have their story.

Avoid loud and aggressive persons,
They are vexations to the spirit.
If you compare yourself with others,
You may become vain and bitter;
For always there will be greater and lesser persons than yourself.
Enjoy your achievements as well as your plans.

Keep interested in your own career, however humble;
It is a real possession in the changing fortunes of time.
Exercise caution in your business affairs;
For the world is full of trickery.
But let this not blind you to what virtue there is;
Many persons strive for high ideals;
And everywhere life is full of heroism.

Be yourself.
Especially, do not feign affection.
Neither be cynical about love;
For in the face of all aridity and disenchantment
It is as perennial as the grass.

Take kindly the counsel of the years,
Gracefully surrendering the things of youth.
Nurture strength of spirit to shield you in sudden misfortune.
But do not distress yourself with dark imaginings.
Many fears are born of fatigue and loneliness.
Beyond a wholesome discipline,
Be gentle with yourself.

You are a child of the universe,
No less than the trees and the stars;
You have a right to be here.
And whether or not it is clear to you,
No doubt the universe is unfolding as it should.

Therefore be at peace with God,
Whatever you conceive Him to be,
And whatever your labors and aspirations,
In the noisy confusion of life keep peace with your soul.

With all its sham, drudgery, and broken dreams,
It is still a beautiful world.
Be cheerful.
Strive to be happy.

This Winner Will Never Quit!

2007-06-21T04:21:00.000-07:00

About my quitting - I am trying to prevent that eventuality. I know that it’s just a matter of time before these bureaucratic bunglers finally get their act together and correct their mistake. I am absolutely clear about what I want to do – get back home - and I am determined to. In the meantime, I will continue to treat this as a mid-career retirement and work on my book.

I expect that I will be able to submit my manuscript to the publisher by Q1 of 2008. If accepted, we would be targeting to release by end-2008. They apparently need that kind of time for editing and tying up the international contracts.

V K Karthika is Publisher and Chief Editor of HarperCollins and is based in New Delhi. She is amazingly prompt in responding to mails from even non-entities like me - and is very encouraging too – just the kind of professional that a budding writer needs!

PS: To hedge my risks, however, I am also planning a trip to Dubai next month - to check out opportunities there first-hand.

Hotelier’s Guide to Success

2007-06-20T22:28:00.000-07:00

An eye-catching poster outside the Chairman’s office at Aitken Spence Hotels reads: “The key to happiness is having dreams; the key to success is making dreams come true.”

So, how does Aitken Spence Hotel Managements (ASHM) intend to make the ‘third dimension’ dream come true? The Sunday Times FT spoke to Anil Udawatte, Director – Sales and Marketing, to find out. Explaining the background, Udawatte said, “Our Director, Gemunu Goonewardene, came up with the health dimension concept and we sounded out the head chefs, who found it exciting.”

Wouldn’t a concerted, Tourist Board-backed effort have had the potential for greater success? “As a commercial organization,” explains Udawatte, “we have to be commercially responsible. If everyone had been involved, things would not have been as smooth as just one company taking the decisions. ASHM now has the first-mover advantage. We will make a start and we would like everyone to get onto the bandwagon.”

ASHM has ten properties in Sri Lanka, of which Kandalama and Ahungalla are Heritance brand properties. The company has five properties in the Maldives. This month, it also opened two in India - a 68-room hotel in Trivandrum and an 18-room boutique property in the Andaman Islands.

Speaking of the target audience, Udawatte says, “We are initially targeting Sri Lankans and will gradually take the promotion across the world.” At the Heritance properties, 75% of the guests are foreigners, and 25% are locals. However, the company is focusing on the domestic clientele first “because it typically takes longer for foreigners to get accustomed to our cuisine.”

“Over the coming month,” says Udawatte, “we will implement a special buffet corner with indigenous cuisine, in addition to the existing buffet. This will be kicked off at our Heritance properties”, where occupancy is currently at sub-40% levels and rooms are available at LKR 8500 (approx US$ 77) per day.

Upmarket, widely-traveled tourists from the West look for authentic experiences when visiting countries on holiday. Their palate adjusts to cuisines from Thailand, Vietnam and India. However, Sri Lanka is not attracting these top-end customers at the moment. “What we do get are low-end tourists who prefer cornflakes, butter and jam, cheese and cold meats. We are basically serving Western food to Westerners,” says Udawatte. “On the contrary, Indians promote their food well. There, 75% of the buffet is Indian, with very little cold meats and salads.”

Talking of the ‘third dimension’ promotion, Udawatte says, “Most people in Colombo do not know how to prepare authentic Sri Lankan cuisine, what spices and ingredients to use and what benefits can be derived.” The promotion will be backed by in-room publicity on TV channels, with menu cards detailing the health benefits. Over time, ASHM will also advertise this USP with ‘healthy weekend’ packages.

“You have two options,” Udawatte concludes, “Either you can eat or you can dine. Eating can be done anytime, anywhere, even on the wayside. But fine dining will never go out of fashion.”

Food: The Third Dimension

2007-06-20T03:54:00.000-07:00

It is unusual to see four chefs in full regalia gracing the head table at a press briefing. However, rather than spoiling the broth like the cooks in the adage do, the chefs’ presence here was appropriate, lending a touch of credibility to the proceedings. There was well-known master chef, Dr Publis Silva accompanied by Chefs Dimuthu Kumarasinghe, S Rathnapala and Arosha Jayasinghe.

Kumarasinghe, designated as Group Culinary Development Chef at Aitken Spence Hotels, has acquired something akin to an aura. He is the only person in the world to have won nine gold medals in the Culinary Olympics and Culinary World Cup.

Aitken Spence Hotels unveiled their ‘third dimension to indigenous cuisine’ this week. Introducing the concept, Ravi de Silva, consultant for Social and Environmental Management for Aitken Spence Hotels, explained that taste and presentation had long been recognised as aspects that needed attention when dealing with cuisine. Aitken Spence is now introducing the third dimension – health - at its Heritance properties at Kandalama and Ahungalla. De Silva explained, “We have got muddled up in a pickle of ingredients. It’s about time we showed the world our heritage in food.”

It is believed that there are forty spices and flavours identified in Sri Lankan cuisine. Most of them have been highly valued in both Eastern and Western systems of medicine for generations. Malin Hapugoda, Managing Director of Aitken Spence Hotels, said, “Despite its many nutritive and medicinal qualities, however, Sri Lankan cuisine has not received due recognition.”

Director Gemunu Goonewardene spoke of the huge untapped demand for health food. “Aitken Spence Hotels has the experience and reputation to launch good food with indigenous ingredients”, he said. These could replace the grills and stews that have become standard fare nowadays.

The occasion brought together several luminaries in the field of nutrition. Addressing the gathering, Dr Ananda Chandrasekara, Senior Lecturer on Nutrition and Dietetics at the University of Peradeniya, pointed out, "Eating patterns have changed for the worse. The majority of our diseases – obesity, diabetes, hypertension and cholesterol - are the consequence of an improper diet.”

Dr Vajira Senaviratne’s integrated expertise in ayurvedic and modern pharmaceutical science was in evidence. He pointed out that many Sri Lankan condiments, besides being flavouring agents that they have acquired a reputation for, also have therapeutic qualities. This ‘third dimension’ initiative is an extension of our ancestors’ belief that ‘Arogya parama laabha’. (Health is the greatest wealth.)

Ten years ago, ayurveda was small, but had big potential that was tapped into. Westerners who visit Sri Lanka for a week or two of ayurvedic treatment have improved earnings from tourism. With a million tourists targeted by 2010, the ‘third dimension’ initiative will emphasise the ‘healthy lifestyle’ message. It would also extend the country’s tourism positioning beyond the beach – adventure – culture circuit.

With Maubima Lanka Foundation’s ‘Buy Lankan’ campaign having been launched recently, Aitken Spence Hotels’ move is timed perfectly to promote the sale and consumption of local cuisine.

Hatching a Conspiracy

2007-06-14T04:35:00.000-07:00

Colleague: Work’s a drag. Lots of meetings (useless, of course). Sometimes, I wonder if all these processes that we talk about at meetings - over and over again - would have been affected if one didn't attend those meetings!

Well, that's the way the cookie crumbles. It’s crazy at the office… No direction… No motivation… Lots of bitching… The same old story, huh?!!

AM: Let me share a closely-guarded secret with you… You might have figured it out by now, if you are as intelligent as you look... Meetings are a conspiracy ‘hatched’ (pun certainly intended) by Subtle Pastimes Association of Senior Management, SPASM. They were never meant to serve any purpose... Meetings are merely a social activity - to break the monotony of peering into computer screens by gazing at colleagues instead.

Unlike most marketing professionals (who often have bright and attractive images to look at), lesser mortals usually have to peer at plain text. The absolute scum of the world are forced to peer at numbers, instead of what they would have preferred to gaze at – figures..! To think that the entire menagerie gets paid handsomely for all this intense peering and gazing is part of the conspiracy.

See ya… I need to locate another company that has computer screens that need peering into… Peer pressure, you understand…?

Mixing Business with Pleasure

2007-06-14T03:53:00.000-07:00

I’m enjoying my writing. It’s something that I had planned to do after retiring to Goa in 2021 AD. But, since retirement has come earlier than anticipated, I thought I might as well fill up this blank phase of my life…

As a profession, writing is so much more creative than accounting… I might even have considered this as an alternate profession, except that ‘entry level pay scales’ are not that hot… On Saturday night, I also had a recording session - over Scotch whisky and cashew nuts - with the protagonist of my book. Mixing business with pleasure, you could say... The book should be on shelves next winter (2008).

Another Day Has Dawned...

2007-06-12T21:45:00.000-07:00

Early mornings in Colombo are divine; the temperature and humidity are comfortably low. The wind rustling through the palm trees outside my window seems to whisper, “Rise and shine”, and I am inclined to obey…

At precisely 5:30, unseen exotic birds begin an impromptu jugalbandi while the crows, buffeted by the breeze, fly an erratic path – like revelers after a night of indulgence. High above, more than a dozen geese drift across the lightening skies in perfect V-formation; 'unflappable' is the word that comes to mind..!
"God's in his Heaven –
All's right with the world!”

Tiring of their exertions, the crows begin their raucous cacophony, ending the jugalbandi as effectively as the moral police breaking up a rock concert.

Another day has dawned… Day 424...

Themes from the Summit

2007-06-11T21:40:00.000-07:00

The Dividends of Peace
US Ambassador Robert Blake quoted Colin Powell when he said, “Capital is a coward. It flees from conflict and unpredictability.”

Giving the example of Northern Ireland, British Ambassador Dominick Chilcott said that – following the outbreak of peace – unemployment had fallen to 4.2% in 2006, lower than the average for Britain as a whole. He said that peace would provide the best opportunity in Sri Lanka.

Indian Ambassador Alok Prasad echoed these sentiments, describing peace as an essential element to restore business confidence.

Clean & Easy Business Climate
In the Business Climate Rankings, Sri Lanka stands 89th on ‘ease of doing business’. Calling for improving the ease of doing business, Dr Nihal Samarappuli, Executive Director (Research), Board of Investment of Sri Lanka, said that prospective foreign investors perceive our business climate as ‘quite average’.

Similarly, Malik Fernando, Director of MJF Holdings – the company that turned a bulk tea business into the Dilmah brand - advised firms to “incorporate integrity and ethics into your business model.”

Potent Trade Agreements
Julian Wilson, Ambassador – European Union, indicated that despite being the only country in Asia to which GSP-Plus had been granted, Sri Lanka is under-utilising the opportunity. Although 98% of exports to Europe were eligible for GSP-Plus, Sri Lanka is availing of the facility for only 40%. The rules of origin issue could possibly be relaxed during the coming year, which should increase the opportunity available.

Prasad made a similar comment when he exhorted manufacturers to tap potential under the FTA. He expressed optimism that the Comprehensive Economic Partnership Agreement (CEPA) would be concluded by the end of this year. The CEPA would introduce shorter negative lists, recognise standards and simplify customs procedures.

Carving Out Your Niche
When Dayasiri Warnakulasooriya, Chairman/ Managing Director, Midaya Ceramics, spoke of the market for designer ceramics – and the potential for manufacturers to work with ‘studio potters’, he was talking niche marketing.

Asoka Hettigoda, Managing Director, Hettigoda Industries, similarly spoke of the opportunity and potential in ayurveda; global trade in herbals has an estimated value of US$ 120 billion.

Fernando advised exporters not to sell cheap and to “always position your product as a premium product.” He emphasized productivity and an entrepreneurial culture when he urged the audience to “break out of the comfort zone that you are in.”

Tertiary Education and ICT
Opportunities in the education and information and communications technology (ICT) sectors were also described as promising. Blake called for permission to be granted for more foreign universities, and partnerships to staff the nascent ICT sector.

Chilcott also spoke of the need for high-performance ICT and remarked at the rising number of students going overseas for education.

Policy Climate and Funding
To attract a sharp increase in private investment – predominantly FDI – that could bridge the technology gap, a more consistent and predictable policy climate is desirable.

Farmers and SMEs located in rural areas have low access to bank funds, which needed to be addressed.

"Growth as a Panacea"

2007-06-07T06:54:00.000-07:00

On the sidelines of the Sri Lanka Economic Summit 2007 (SLES-07), Mahen Dayananda, Chairman, The Ceylon Chamber of Commerce, spoke exclusively with The Sunday Times FT. Some excerpts:

Objectives of SLES-07
The main objective is to address the huge mismatch in regional development. The Western Province has a per capita income approaching USD 2,000, which is very impressive. However, the situation is very different in the regions. Moneragala is at USD 600; we cannot justify this disparity any longer.

The main issue that we intend to address is the development of infrastructure, which is so important in addressing imbalance. The more regional imbalances there are, the more the potential for dissatisfaction.

The Western Province is so active and productive because we have much better infrastructure than the regions do. We have the port; the only international airport in the country is 45 minutes from Colombo. We want to come to some affirmative action to address these issues.

Widening growth will address several issues apart from economic development - social issues, most definitely. It can contribute to a rapid settlement of our ethnic problem; with economic prosperity, the people’s mindset changes.

SLES: History and Achievements
There have been five ‘business conventions’ previously. This is only the second economic summit. The significant difference is that we have been upgrading. The main point of departure is the increased number of participating ministers. We are doing this with a chosen partner - the Board of Investment, to add value by encompassing a much wider spectrum.

We are looking at the Indian model where CII (Confederation of Indian Industry) has an annual economic summit that is on a public – private partnership basis. Most leaders relevant to economy participate at the forum: Prime Minister, Finance Minister and Commerce and Industry Minister. That is what we are trying to replicate.

Foreign Investment: Sectors
Foreign investment is definitely required to develop our infrastructure. We most definitely need inputs - not always investment, but foreign technology.

We also need to add value to a number of our commodity exports. Tea and spices are classic examples of where we need to go up the value-addition chain. For that, we need foreign technology, specifically for upgrading quality standards. Today, tea has moved from being a bulk commodity to being an ISO-certified product. That’s no longer enough; we have to be HACCP-certified. All this means investment, technology, and foreign inputs.

On IT and BPO: HSBC, ‘the world’s local bank’, has a BPO facility in Colombo that was entirely driven by foreign input in terms of how it was set up. Similarly, the font of IT in Asia is India, whose input is going to be essential.

To Avoid ‘Talk Shop’ Label
Extensive notes will be maintained by the CCC throughout the summit. We will extricate the important issues that emerge from the deliberations. Having done that, we will prepare a document encompassing them all and present it to the government, who will take it very seriously.

Opening Night: SLES-07

2007-06-07T06:51:00.000-07:00

When you’re at the summit, you must be closer to the stars. The Sri Lanka Economic Summit 2007 was no different. The stars were all there, at their brilliant best – Naoko Ishii of World Bank, Richard Vokes of ADB, British High Commissioner Dominick Chilcott, Swiss ambassador Ruth Flint, several members of the diplomatic community, a sprinkling of ministers and a strong delegation from the Confederation of Indian Industry.

At another summit in Heiligendamm, Germany, world leaders were discussing the state of the planet on Wednesday. But – at the Cinnamon Grand – all eyes were riveted on Sri Lanka. It was, as Dhammika Perera, Chairman/ Director General, Board of Investment of Sri Lanka, put it, “the ideal forum for all in the public and private sectors, to pool resources and formulate future strategies”.

Presidential Secretary Lalith Weeratunge delivered a message from President Mahinda Rajapaksa, in which he pointed out that last year’s GDP growth of 7.4% had been the result of careful planning and effective implementation. Even so, he emphasised the need to sustain an average annual growth rate of 8% over the next five years, in order to perceptibly raise living standards.

In sync with the summit’s theme, ‘Spreading the Wings of Development’, Chief Guest Dr Sarath Amunugama, Minister of Enterprise Development & Investment Promotion, stressed the need to develop outlying areas to counter regional imbalances. A focus on infrastructure – roads, power and water – would bring rural areas also into the growth trajectory. Dr Amunugama indicated that, led by the service sector, the Western Province had recorded a growth rate of 12%.

Quoting from a Newsweek article, Dr Amunugama said that India’s middle class of 50 million people would multiply ten-fold by 2012. “Which other island nation can boast of being twenty miles away from the world’s biggest market?” he gloated, indicating that Sri Lanka’s hub status would be a crucial factor during the next decade.

Commending the private sector for being model employers, Dr Amunugama specifically alluded to the positive image that the garment industry had earned by adopting best practices.

Guest Speaker Arun Nanda, Chairman/ Managing Director of Rediffusion DY&R, spoke of the need to brand Sri Lanka for the global market. Such a brand must emanate from the characteristic of its people. A national brand identity could even catalyse renewed patriotism, he opined, in addition to acting as a powerful endorser. Suggesting ‘Gifted Commitment’ as a brand value proposition for Sri Lanka, he said that the country’s cricket team epitomized exactly such a spirit.

Nanda recommended a three-pronged approach to address prevailing negative perceptions. First, restrict our market to South Asia, which is more balanced in its perception of violence. Second, counter-reference the issue – like Ireland did by localizing the plague of terrorism to Belfast. Third, host a major sporting event and “let that experience be your media”.

The summit is being hosted by The Ceylon Chamber of Commerce, in partnership with the Board of Investment of Sri Lanka.

Life Sucks, Sometimes

2007-06-05T22:40:00.000-07:00

AM (May 31): I have decided that I would be willing to commit to serving one year – at least - with the Taj Samudra in Colombo.

We would also need to examine the feasibility of the Indian Hotels crediting my emoluments to Titan Industries. Such an arrangement would mean that I would technically be ‘on deputation from Titan’. This arrangement is merely to ensure that (a) my family in Bangalore is taken care of and (b) I can continue following up for an employment visa. The question of whether I will continue with Titan or Indian Hotels after June 2008 could be deferred to a later date.

If crediting my emoluments in the manner described above is not an issue, I would be eager to join Taj Samudra at any time you may decide.

SR, General Manager (June 1): I don’t think I can commit the same to you as the decision has to be taken by the corporate office. I will mark you mail to Jamshed to seek his inputs and see if this is possible.

SR, General Manager (June 6): I have discussed this with the corporate office and have to regret that, given the peculiar circumstances that you are presently in, we will not be able to employ you at Taj Samudra.

AM (June 10): Although it certainly came as a disappointment to me, I do understand the decision. In fact, I am grateful that I was even considered.

Comment: I wish they had checked first, instead of getting my hopes up... Since it came through the Tata Group, I assumed that they would have known the background...

MASsive Feather in Lanka’s Cap

2007-06-02T22:53:00.000-07:00

The World Business magazine has ranked ‘The Brothers Amalean’ among Asia’s Top 20 progressive individuals. Mahesh, Ajay and Sharad Amalean are the founders of MAS Holdings, a multinational operating 28 facilities across seven countries and employing over 40,000 people.

The Top 20 list includes some of the continent’s prominent businesspeople who are notable for their forward-looking approach. The philanthropic nature of these businesspeople has also been acknowledged. Philanthropy is essential in Asia, the article observes, where “governments… lack sufficient resources to do all that should be done to take care of society’s most vulnerable”.

The Amalean brothers have been recognized for their progressive leadership in running a professionally-managed and responsible private entity. They have done this while adhering to the core values of honesty, integrity and fair play.

The nomination of the Amaleans, ranked 14th, is even more creditable because this listing is not restricted to businesspersons. The magazine has assessed the entire spectrum of individuals who are driving Asia forward, from country leaders to business people to reformists. The list identifies those who are helping to bring about rules-based civil societies and those advancing the cause of better governance – be it in business or government.

Other South Asians featured on the list are Narayana Murthy (4th), Muhammad Yunus (6th), Ratan Tata (12th) and Pushpa Kamal Dahal – alias Prachanda (20th).

The Citation:

Mahesh, Ajay and Sharad Amalean, Sri Lanka

The three Amalean brothers founded MAS Holdings - a Sri Lanka-based intimate apparel maker - in 1986. It is the largest supplier to Victoria’s Secret; other customers include Gap, Marks & Spencer, Tesco and Reebok. In March 2007, MAS announced plans to launch its own brand this August.

The company has seventeen plants in eight countries and 35,000 employees. But what’s remarkable about it is its home-grown corporate social responsibility (CSR) programme. Women comprise more than 90% of MAS’ employees and so the company established the Women Go Beyond programme to educate and empower its employees. A beauty, health and hygiene certificate is offered, and there are classes on reproductive health, domestic violence and traditional crafts. Nearby schools and hospitals are funded and scholarships are awarded.

MAS set up its plants in rural locations near villages so that women would not have to leave their families to find work, and all employees must be aged at least eighteen. (In contrast, Chinese factories can take on employees as young as fourteen.) The company also invests in developing clear career paths: its Ready to Unleash programme aims to guide graduates into the company and on to management levels.

MAS has faced intense competition from China. The international Multi-Fibre Agreement, which ended in 2005, ensured that at least some of the West’s clothing and textiles are sourced from smaller developing countries. Since then, the Amaleans have shown that it is possible to compete with sweatshops in China by emphasizing their CSR programme, which has made MAS a more attractive source for retailers with ethical buying policies.

Ranveli Beach Resort

2007-06-01T23:53:00.000-07:00

My family had come to Sri Lanka for a couple of weeks. It was a great fortnight by any standards, re-bonding with the family. We stayed at a beach resort (accommodation at US$ 12 per day for a family room, thanks to no foreign tourists!).

A great moment in the twilight was my son and I standing bare-bodied on the beach, holding our fluttering shirts above our heads – like a scene from Rang De Basanti.

It was nice to be able to teach my daughter Maths without losing my patience. Communicating with my wife has also become an exercise in sharing, rather than trying to impose our wills on each other.

SS: Lifeline in the Samudra

2007-05-31T22:39:00.000-07:00

I don’t understand why it is so difficult to get into India. Clearly, the Tata Group thinking is that your papers are in order and there's something wrong with the diplomatic process between the two countries. Is there some problem with the diplomats? I mean - that could be one reason why the papers are not going forward.

It’s nice of the Tatas to try and keep you employed. It goes to prove, once again, the benefits of working with the Tata Group as compared to working with any other group in India. I’m sure, if something like this had happened to someone in UBS, they wouldn’t even bother to hire a lawyer… They’d just get on with their lives.

If they offer you a position like Finance Head in the Taj Samudra, it should be some learning. Who knows what life has in store? Come back to India and open your own hotel - It makes sense with the kind of tariffs in Bangalore..!!

First Signs of Pessimism

2007-05-30T23:42:00.000-07:00

“I have a feeling it’s likely to be longer haul. The relatively better exploration would be to try and seek an employment opportunity outside India, which we are also trying.”
– Manoj Chakravarti

Stopping a Galloping Beast

2007-05-30T04:27:00.000-07:00

A good economist is a lot like inflation – difficult to keep down. And Harsha de Silva, Lead Economist, LIRNEasia, was as irrepressible as they come when The Sunday Times FT cornered him on the sidelines of a public event for an exclusive chat.

During de Silva’s presentation earlier, he had highlighted a graph indicating a high correlation between inflation and the Central Bank’s (CBSL) net credit to government. That represents extra money that was printed, he explained, which resulted in inflation.

In Zimbabwe, inflation rockets skyward at the incredible rate of 3,700% per annum. “In such an economy, it is more appropriate to measure inflation by the day,” quips de Silva. While Sri Lanka’s inflation – at 16% - seems tame in comparison, it is still the country’s economic enemy number one.

“Prices have been going up because of irresponsible printing of money by the CBSL,” says de Silva. “Since January, they have stopped printing money because they were forced to.” The good news is that if printing money pushes up inflation, stopping will bring it down as fast. That will happen “if Cabraal and crowd walk the talk”, says de Silva.

Explaining that monetary policy has also been tightened, de Silva says, "There are two things CBSL can do to reduce inflation: stop printing money – which they have done – and increase interest rates – which they are now doing.”

The flip side of the coin is that borrowings are becoming more expensive for corporate entities. “Even the prime lending rate is in excess of 20% - and that can be accessed only by AAA-rated companies like Hayleys and John Keells. Small-timers have to pay 30%-plus.” Doing some crystal ball-gazing, de Silva predicts that interest rates will descend only when inflation declines to 10%.

Aid and Economic Sovereignty

2007-05-30T04:21:00.000-07:00

The 1990s were marked by a series of crises that posed a challenge to the international financial and monetary system. These crises made it obvious that international capital flows bring concomitant risks, besides the visible benefits.

The relationship between countries and international financial institutions (IFIs) has more substantial effects on the changing nature of state sovereignty in the developing world. This week, ‘Aid and Sovereignty: Role of International Financial Institutions in Developing Countries’ was the subject of a panel discussion at the Bandaranaike Centre for International Studies.

In the context of globalization, Dr M Ganeshamoorthy, Department of Economics, University of Colombo, described economic sovereignty as “the ability of a state to control its own economy in response to its own needs”.

Dr Ganeshamoorthy provided a litmus test of whether a nation is economically sovereign: “It should keep its own currency; it should trade with whomever it chooses to; it should control imports and exports; and it should regulate its currency to protect against speculation, if necessary.” By that framework, he points out, the introduction of the Euro was not compatible with the principle of economic sovereignty. He describes the tendency of World Bank, IMF and WTO to get increasingly and extensively involved in the domestic economic affairs of its members as a kind of ‘neo-colonialism’.

Prof. Nira Wickramasinghe, Department of International Relations, University of Colombo, delivered a message replete with events from history. She questioned the relevance of IFIs and examined the evolution of their roles. Tracing the history of IFIs, she said, “Since the late 1970s, they have provided loans to support economic reforms – currency, exchange and short-term balance of payment.” That role is being challenged, however, with other countries (like China, for Asia) taking on the mantle of lender and developer.

“Aid budgets are being spent on overpriced consultants instead of on real projects,” Prof. Wickramasinghe said. Providing the example of education in Sri Lanka, she contrasted the ‘so much money pumped in’ resulting in ‘declining levels of knowledge of university entrants’. Taking issue, Harsha de Silva, Lead Economist, LIRNEasia, asked, “If 20,000 teachers are absent on a daily basis, is that the World Bank’s fault?”

In his presentation, de Silva said, “We do not have the right to demand aid. If we are asking for aid, reasonable conditions are neither bad nor wrong.” Highlighting the need for proper post-sanction management of aid, he quipped, “Thereafter, whether I buy BMWs and my citizens starve to death is a separate question.”

De Silva pointed out that IMF has clearly indicated that its aid is conditional and is granted “provided that the country is implementing an adequate programme of policy adjustments” (2002).

Turning the mirror inward, de Silva said, “The only available option to protect the sovereignty of our country is for the state to borrow less and let private investments flow in… When foreign direct investment comes, you get advanced technology also,” which is not necessarily the case when you get aid.

The Indians Are Coming!

2007-05-30T02:04:00.000-07:00

Prema Cooray, Chairman – Sri Lanka Convention Bureau, describes India as “the obvious place to go to promote tourism”. He will be leading a team to that country to tap the corporate meetings and conferences potential there. Prior to his forthcoming departure, however, he is in a reflective mood, casting his mind back ten years, when - during the late 1990s, “There were three problems - Flights were very few and always full; Indian Airlines had an older fleet and couldn’t increase capacity.

“Secondly, any Indian had to obtain a visa to come to Sri Lanka and it used to take three or four days to get a visa. Today, of course, Sri Lanka is the only country in SAARC where a leisure tourist gets a visa on arrival.

“Third, India’s currency regime was restrictive, not allowing people to take foreign exchange out, even on the current account. We worked on clearing those impediments and we have no problems in those three areas today.”

Besides, travel packages to Sri Lanka were very expensive compared to available options like Singapore, Malaysia Thailand or Mauritius. At that time - in November 2001, Udaya Nanayakkara, the former SLTB President, and Cooray recognised that people had a huge fear of traveling. (This was four months after the LTTE attack on the Katunayake International Airport and two months after 9/11.)

“SriLankan Airlines was approached to make an attractive offer. They asked us to put a package together - and they gave us a thundering ‘Buy One, Get One Free’ offer. You won’t believe what price does to people… 20,000 Indian leisure travelers visited in four months! Since that day, we have not been able to stop the Indians from coming,” says Cooray contentedly.

But Cooray believes that we have not touched even the tip of the iceberg yet and that it makes sense to go to India at this time… Taj has more than 60 to 70 rooms booked on meetings; which itself is a ready-reckoner that the market has potential… We have done our research with our Indian counterparts, with Taj and with the corporate community.

Tourism Feeds A Million

2007-05-30T00:25:00.000-07:00

Tourism does not appear in the national accounts because it is a ‘demand-side activity’. Unlike manufacturing and agriculture (both supply-side), demand-side activities are defined in terms of who consumes the product. When any industry sells to a tourist, that is ‘tourism activity’, explains UNWTO Consultant, Stan Fleetwood, in conversation with The Sunday Times FT.

“If you understate it, it’s not recognised,” Fleetwood says, justifying the purpose of Tourism Satellite Account (TSA). TSA addresses the problem by giving tourism statistics the same official recognition as supply-side activities have.

Fleetwood continues: “In Australia, before we got TSA in 2000, the Treasurer didn’t believe the figures that our consultants put together. After TSA, the Minister for Tourism could say, ‘Tourism is 4.5%... bigger than coal exports, bigger than wheat.’ The Treasurer couldn’t argue with that because it was produced by Australian Bureau of Statistics (which comes under the Treasurer)!”

“Visitor arrivals and earnings in foreign currency are only one part of the story”, elaborates Prema Cooray, Chairman of USAID’s Tourism Cluster. In the local context, Cooray says, “There is a huge informal sector in tourism - handicrafts, curios, gems & jewellery, spice gardens, batiks... Suppliers of these items live on tourism. There are 60,000 persons directly employed in the tourism sector.

“But for every direct employee, there are at least three or four indirect employees. If four, that means 300,000 people altogether. Multiply that by a family unit and you will realise that tourism feeds one million people.”

Tourism: Proving a Point

2007-05-30T00:19:00.000-07:00

The World Tourism Organisation (UNWTO) conducted a workshop on Tourism Statistics & Tourism Satellite Account (TSA) this week. The participants included eleven foreign delegates from six countries. In his welcome speech at the inaugural ceremony, Renton de Alwis, Chairman, Sri Lanka Tourist Board, emphasized the need to influence governments with facts and figures.

P M Leelaratne, Secretary, Ministry of Tourism, corroborated that viewpoint, saying, “Measurement of earnings is essential for policy makers to decide where we should invest. On what statistics should we base our decisions? Do embarkation cards, for example, capture what we really want to?”

‘Travel and tourism’ is the fastest growing industry, Christine Brew, UNWTO representative, pointed out. “UNWTO forecasts worldwide tourist arrivals at 1.1 billion during 2010.” That represents an annualized increase of 6.9% over the 842 million that was recorded during 2006. Brew spoke of the need for a comprehensive system of tourism statistics and indicated that the Colombo workshop was the second to be held this year.

Stan Fleetwood, a UNWTO Consultant, described tourism as a “fantastic phenomenon”. However, many countries struggle to generate a consistent and reliable database on international and domestic visitors’ consumption. UNWTO has dedicated sustained efforts to designing statistical instruments to help countries do their estimation.

The workshop had two primary objectives:
Improve statistical capacity building for participating countries, and thereby make progress in measurement and analysis of economic impacts of tourism
Initiate tasks recommended by UNWTO for development of a TSA.

From Kandalama to Sinharaja

2007-05-29T21:58:00.000-07:00

The stunning architecture of Kandalama Hotel has been described as Geoffrey Bawa’s ‘best expression’. Testifying to the genius of the man, Prema Cooray recollects his first impressions of the site, “When I landed by helicopter with Geoffrey Bawa, I couldn’t imagine how you could even build a house there.”

The process of building the hotel was accompanied by unprecedented protests. "Environmentalists took us to task,” says Cooray. “But we managed to survive the onslaught of protests that came in from NGOs, environmentalists and even the Opposition - and built this hotel. There were more than 600 newspaper articles during that controversy.” Cooray is writing a book about his experiences with Kandalama, which is expected to be on the shelves in about a year’s time.

The Sinharaja Rainforest project, of which Cooray is Chairman, is an extension of the vision to take nature tourism forward. A world class eco-lodge is being put up, which will adopt best practices in planning and construction, materials used and preservation of environment. The eco-lodge is being designed by international experts and will have a canopy walk at the treetop level. There will also be a research facility for thirty scientists.

Competitors in the tourism industry – Aitken Spence, John Keells, Jetwing and Hemas - have joined forces to invest in this venture. “USAID is chipping in with a grant of US$ 900,000 for the environmental side,” indicates Cooray.

The Spice Route to Profits

2007-05-29T03:16:00.000-07:00

Feedback: "Well done! It is a fantastic article." - Sarada de Silva, Chairman of The Spice Council

Upali Kodikara of Small Growers’ Spice Society was wearing a broad smile. We were on his eight-acre farm near Kandy, the heart of Sri Lanka’s ‘spice country’. The 1,000 Kgs of spices that Kodikara had sold since July 2006 had been grown organically, using no chemical fertilizers whatsoever. Kodikara’s obvious delight, we soon realized, was not entirely because of The Sunday Times FT’s presence at his farm. It stemmed more from the e-mail printout that he was brandishing like a trophy.

Kodikara had just received the e-mail from a Malaysian buyer. In a nutshell, the mail was an order for 2,000 kilograms of cloves at US$ 8 (Rs 880) per Kg. This was incredible! The last order had fetched an FoB price of only US$ 5 (Rs 550) per Kg. And local traders were offering just Rs 240 per Kg for cloves.

One of the reasons why producers like Kodikara are realizing better prices is that “demand for spices is picking up worldwide”, explains Sarada de Silva, Chairman of The Spice Council, the apex body to develop the spice industry. “However, credit also goes to other stakeholders involved in the industry - The Spice Council, SAPPTA, the DEA and the EDB. Producers and exporters from the private sector have also played a role in earning more foreign exchange for the country,” he adds...

The main spices grown in the country are cinnamon, black and white pepper, cloves and nutmeg. The soil and climate have resulted in superior intrinsic qualities like pungency, aroma, taste, oil and oleo-resin in Sri Lankan spices - compared to other countries’ spices.

However, we stack up rather poorly on productivity parameters. Take pepper, for instance: Malaysian farms yield 3,000 Kgs per hectare, whereas the Sri Lankan average is less than 500 Kgs per hectare. “Our farmers are accustomed to looking at unit price per kilogram, instead of yield per hectare”, explains de Silva, while confirming that there is potential to double this with better agronomic practices.

Cinnamon: Shortage of Peelers
Cinnamon is the major spice of Sri Lanka, accounting for almost 60% of the island’s spice exports. More than 90% of the island’s produce is exported. We have two fundamental problems: quantity and quality. Besides, margins are comparatively low, due to the high cost of peeling, fertilizer and weeding – one can barely expect a 25% margin on a well-maintained estate.

De Silva comments, “We don’t have adequate production to meet current demand; the export market can easily absorb an additional 4,000 to 5,000 metric tons – even more, if available in better qualities. We can sell ‘Grade C-5 Special Alba’ and similar grades to Mexico, where demand is the highest, at US$ 7 to 10 per Kg.”

“However, peeling is a highly skilled job and we are facing an acute shortage of peelers. If not for that, we could increase output by 3,000 to 5,000 tons in one year - as most estates are not harvesting twice a year” says de Silva. He goes on to describe tea-pluckers, rubber-tappers and cinnamon-peelers as being treated the worst of all the social strata. This is one of the main reasons for this depletion – and needs to be changed.

Pepper: Opportunity Lost
Koswana, Matale: T D Karunasena was in his twenties when his parents started pepper cultivation in 1972. The solar dryer that he has recently installed enables him to dry pepper in two days instead of four. He does not need to watch the skies for rain or keep animals away. This provides him more quality time to spend with his children than his parents could ever afford to spend with him.

Today, Karunasena is president of the Koswana Gamunu Farmers’ Organisation in Matale. He gestures towards his tractor and van as assets that he has acquired as a consequence of better prices for his produce. “Pepper pays,” he says quietly. His cost of production is Rs 60 per Kg, and the selling price is almost Rs 400 per Kg. During the past year, he has dried and sold nearly 1,500 Kgs, a quantity that would have been inconceivable before he acquired his solar dryer.

Light pepper berries, typically harvested in four months, have maximum oleo-resin content. Buyers are therefore willing to pay a slightly better price - 5 to 10% more per Kg. Producers seem to ignore the fact that, had they waited a couple of months more, the berries would have become ‘heavy’ and increased in weight by about 50%. Here, time is money - quite literally - and the DEA is trying to get this message across.

“We are not producing enough heavy pepper berries. By harvesting light berries earlier – and exporting them to India, our producers lose value addition,” explains de Silva. India extracts and exports the oil and oleo-resins all over the world as ‘Ceylon pepper’, which has a piperin content of 13% - the highest in the world. (Piperin is what gives pepper its strength and pungency).

Cloves: Infinite Potential
Cloves have excellent long-term potential; de Silva describes demand as “extremely high”. In his opinion, the DEA has been soft-pedalling cloves because it takes seven to ten years for the tree to ‘come into production’. Moreover, prices tend to drop when the harvest comes in. The financially weak farmers sell their produce to traders who have the wherewithal to buy them out.

Nutmeg: Killing the Goose
A similar loss of opportunity takes place in the case of nutmeg, which triples in weight when allowed to mature. This would have enabled the farmer to earn three times the money. To compound matters, the per-kilogram market price for immature nutmeg (say Rs 200) is also lower than the price for mature nutmeg (say Rs 280). Spice exporters like PODIE and Biofoods have been at the forefront of the awareness-building exercise. They advise the farmer not to sell immature produce but to wait and get the higher prices that these exporters are willing to pay (say Rs 360).

Just 5% of Sri Lanka’s spice exports are in nutmeg, which is typically grown in home gardens. Farmers sell immature nutmeg due to the desperate need for hard cash. Another reason for selling early is that thieving is a major issue in producing areas and growers need to harvest before thieves do!

Drying: Changing Times
One universal problem that the industry faces is the drying process. A moisture content of 12% is well accepted for dried products. All these years, farmers have traditionally dried their produce in the open. Spices are dried virtually anywhere – on roads and on cement floors, where dogs sleep and chickens scratch for food. Such open drying gives incompletely dried spices that are of inferior and inconsistent quality, often contaminated with germs due to mould infection.

Shireen Samarasuriya, the National Coordinator for UNDP’s Global Environment Facility/ Small Grants Programme (GEF/ SGP), says, “Drying pepper on the roadside is unsanitary; correct drying is very important. With solar dryers, quality is good; the colour and smell are preserved; exporters like this quality. We have not really had a good dryer until now.”

Things have been changing ever since the Department of Export Agriculture (DEA) started advising farmers on how to improve the quality of their produce. A solar dryer designed by the University of Ruhuna made it possible to dry spices even during harvesting seasons that coincide with the monsoons. Through a process of experimental trials, they have designed what is arguably the best dryer in the country.

The Saviru renewable energy project is an endeavour to introduce solar drying technology to produce high quality spices. Explaining the background, Kapila Weeratunga Arachchi of UNDP-funded AfATE (Alliance for Appropriate Technology Exchange) says: “We had to introduce technology that is appropriate – what the farmer can afford, handle and understand.” The drying process was researched and the equipment was designed and developed.

Generation 1: The Tunnel Dryer
Arachchi, who was conducting research on solar and other methods of drying, had to find implementation funding. In response to UNDP GEF/ SGP’s call, he wrote a proposal linking renewable energy with rural economic development. GEF/SGP accepted his proposal for the drying experiment - and the rest, as the cliché goes, is history.

The SAVIRU solar tunnel dryer is made partly of fibre-glass and typically measures 24 ft long by 3 ft wide. To achieve the optimum temperature of 60 degrees Celsius, two small fans blow air through the tunnel. A separate bin dryer is provided for final drying that is especially useful during wet weather. The price (which started at Rs 28,000) has escalated to Rs 37,000 over the past two years.

Passing the Versatility Test
Until 2004, S J Gunasekara used to work in Anuradhapura, for an insurance company. After opting for voluntary retirement, he returned to his ancestral home in Galekoluwa. There, he learnt the spice trade from his father, who had been in the business for twenty years.

Having adopted scientific practices, Gunasekara says, “Buyers can easily spot the difference between solar dried and open-dried spices by the cleanliness. They are willing to pay a premium of at least Rs 15 to 20 per Kg. Besides, there is less wastage.” Enquiries reveal that wastage is 2 to 5% - against 20% otherwise. “Even if it rains, there is no problem,” Gunasekara says.

While endorsing the efficacy of solar dryers, The Spice Council indicates that it is ideal for small producers’ cloves and pepper because the volumes are small. The Sunday Times FT has spoken to farmers who have adapted the technology for dry chillies, bitter gourd, coconut, jackfruit and breadfruit. Test results on microbial quality by the SGS Laboratories show that quality will pass for spice shipments even to European countries.

The Quality Conundrum
Selling of high-quality spices to buyers paying higher prices would improve farmers’ incomes substantially. But poor quality leads to low-priced markets, a vicious cycle that needed to be broken. The market willingly acknowledges the better quality of solar dried spices, but has not been willing to pay the premium. “This was a typical chicken-and-egg problem,” says Arachchi. “Spice farmers were selling at prices dictated by the buyer. The spice industry wanted to improve quality but the trade just wasn’t ready to pay a premium…”

By improving the quality of spices, small-scale producers at the village level are now earning prices that are significantly higher than prevailing rural market prices. In an experiment lasting three years, two farmers of Dagonna in Gampaha district earned an extra income of Rs 225,000 on about 6 tons of spices.

Atomised Farmers Suffer
75-80% of spice production comes from farmers who cultivate small plots measuring less than two acres. These ‘atomised’ farmers have little bargaining power. Farmers have only recently been organized into village-level organizations to facilitate marketing. The Spice Council/ DEA have a model to encourage these villagers to collectivise themselves for better bargaining.

People’s Organisation for Development – Import and Export (PODIE) is an NGO buyer in the business of processing and exporting value-added spice products to Europe. It has the reputation of offering prices that are almost twice as much as the village market offers. They also work with small farmer groups like the Koswana Gamunu Farmers’ Organisation. Karunasena recalls how he supplied white pepper to PODIE and earned Rs 200 per Kg at a time when the rural buyer’s best offer was Rs 130.

The closer links that have been created between farmers and buyers have also facilitated more efficient marketing.

More Value Addition, Please!
De Silva speaks of the need to encourage farmers and others to move up the value chain. “That would insulate us from price fluctuations in the world market,” he points out. “Grinding is the natural value addition,” he says. Then, there could be essential oils, oleo-resins, mixes and formulations. Why, we could even consider house brands for Wal-Mart!”

Generation 2: Saviru Jeewa Dryer
The Saviru Jeewa Dryer has been developed and patented by AfATE. It consists of a drying cabinet that holds lots of 3 foot by 2 foot trays. A fan circulates air through the cabinet to enhance the drying process. The dryer includes an external hot air generator, heated by a compact downdraft burner that burns gliricidia wood – an abundant local fuel resource. Interestingly, the gliricidia tree is used as a support for pepper vines and its leaf is useful for goat fodder and mulching.

In 2006, Sri Lanka showcased this technology at the International Pepper Community, the largest international gathering of pepper-producing and -consuming countries.

The Spice Council is developing a model Spice Processing Center in Galekoluwa, Matale, to demonstrate good manufacturing practices. A 450-Kg Saviru Jeewa dryer has already been installed there. This has been assisted by The Competitiveness Program of USAID.

Farmers in Kandy, Matale and Gampaha have been given subsidies by UNDP’s GEF/ SGP scheme. They have also been taught to access the market. Of the UNDP’s contribution, Samarasuriya says, “We are trying to address the issue of how to use solar dryers in the spice industry.”

The Government Can Help
With this new-found awareness, the spice industry has been seeing a revival of interest in Sri Lanka lately. Much, however, remains to be done, and all eyes seem to be focused on the government. Samarasuriya says, “We can only show the way. Others - like the government - must get something going on a commercial scale. We have our hands full with 115 different projects at various stages of progress.”

De Silva points out that there is very little investment by the government in comparison to the export earnings. The potential of the sector could grow exponentially if we could add value and increase productivity. “Though the DEA has 900 employees, its research and extension services divisions are short-staffed and need further strengthening.”

“Our spice exports were on par with India’s in 1984,” says de Silva. Then the Indian Government made huge investments: They subsidized new processing and grinding plants; they supplied electricity at subsidized rates; they provided easy financing for extraction units. Today, they are number one in the world oleo-resin industry.”

Balanced Duet: Maldive Fish..!

2007-05-25T23:06:00.000-07:00

Mohammed Jaleel, the Maldives’ Minister for Economic Development and Trade, spoke to The Sunday Times FT on the sidelines of the inaugural meeting of the Sri Lanka – Maldives Bilateral Business Council.

“Presently, we import a large proportion of our requirement of vegetables, meats and fruits from Sri Lanka. However, we also import our requirement of high value-added food products from Australia, Europe and Singapore,” Jaleel said. The challenge, according to him, lies in identifying those areas of the supply chain where the Maldives and Sri Lanka can work together to increase trade.

This would not necessarily tilt the balance of trade - already in favour of Sri Lanka – further “if these are joint ventures“, opines Jaleel. Besides, “We are also looking to increase our exports, mainly of fish and fish products, to Sri Lanka,” says Jaleel. “There’s plenty more that Sri Lankans can take.” Maldive fish already constitutes 72% by value of the Maldives’ export basket to Sri Lanka.

Trade barriers seem to be a bigger concern for Jaleel: “We have issues about putting certain items on a sensitive list. For small countries like ourselves, it’s no good for either.”

“The way forward is to have a reciprocal dialogue to eliminate trade-distorting tariff barriers in a time-bound manner,” says Jaleel, “We can then work together on creating trade-enhancing measures… In any case, we are all bound by SAARC and SAFTA rules on eliminating trade tariffs within a particular period.”

J Kehelpannala, the newly-elected President of the Executive Committee, is Executive Vice President at John Keells Holdings. In his opinion, there has been a lot of investment made by Sri Lanka in the Maldives – which ought to be reciprocated. “We should also look at new initiatives in other areas,” he said.

Biggies Green; SMEs Amber

2007-05-25T22:41:00.000-07:00

Surrounded by rocky outcrops, lakes and forests, Kandalama is home to a variety of indigenous species of birds and wildlife. It occupies a unique place in the cultural heartland, flanked by two world heritage sites - the 1st century BC Dambulla temple and the 5th century AD Sigiriya fortress. Kandalama Hotel is the first hotel in the world to be awarded the prestigious ‘LEEDS Green Building Certification’.

Prema Cooray has been Secretary General/ CEO of The Ceylon Chamber of Commerce for some time now. However - especially with the development of Kandalama Hotel - his reputation as the pioneer in developing eco-friendly tourism in Sri Lanka precedes him. Therefore, when he addressed The World Conservation Union (IUCN) last week, one was compelled to sit up and take notice.

“Many large companies today are committed to striking a balance between the planet, the people and the profits,” Cooray revealed. He dispelled the perception that the private sector is interested solely in the financial bottom line. “Companies are convinced that investment in environmental conservation provides for the survival of mankind in the long term, while yielding economic benefits to the organisation,” he said.

There is, however, some ambiguity about whether the SME (small and medium enterprises) sector has taken this concept seriously. Cooray appeared to condone their lukewarm approach when he said, “Their problems are so many – financial, technical, marketing… It’s a tough world that they are living in.”

To rectify this situation, the IUCN is involved in a programme where they enable the SME sector to have a greater sense of commitment towards the environment. One of the IUCN’s focus areas is to ensure that Sri Lanka’s business community incorporates environmental concerns into its operating and decision-making practices.

One obstacle is that the benefits of investing in the environment are not easily measurable, Cooray pointed out. IBM has done a comprehensive exercise in this area; their CSR Annual Report 2005 evaluates their investment in the environment against the benefits that accrue. The company says that, over a period of time, the ratio of savings to expenditure will be 2.5 to 1.

Sri Lankan companies, on the other hand, have not done such a detailed analysis in terms of cost versus benefit. There have been isolated attempts at evaluating certain investments – such as: What would we save in electricity charges by investing in alternate energy like biomass?

They appear to be bent on competing with each other by revealing more and more of activities in corporate social responsibility (CSR), suggests Cooray. Most annual reports of companies devote a substantial number of pages to CSR, of which the segment on environment takes pride of place.

Cooray observed that many companies in the hotel sector have gone green. In his own experience, the Kandalama Hotel was able to command a price premium over the competition. This is visible in the marketplace and also in the profits the hotel has generated over the years.

Media: Impartial Assessor?

2007-05-25T21:41:00.000-07:00

Al Ries, the father of Positioning, wrote: “Marketing is not a battle of products; it’s a battle of perception.” Perceptions are built by communication – and communication is a lot more than what a company says about its products. It’s more about what consumers say.

In an exclusive conversation with The Sunday Times FT last week, Jayantha Sittampalam, Managing Director of Cameron Pale & Medina, elaborated on this theme. “The logic is simple”, he said. “Advertising works better if it is believed because then it would be acted upon.” This ‘believability factor’ can be increased by using third party endorsements.

YES
People do not believe advertising but look at the media as good intermediaries who will test products/ services. “If you have a product that is original or different, it should be in the news. This works best with PR”, says Sittampalam, “Advertising should serve as a reaffirmation of your value statement.”

Public relations is better than advertising at building a brand, argued Laura and Al Ries in their 2002 book, ‘The Fall of Advertising and the Rise of PR’. The media’s role, therefore, is to make fair assessments. Citing the ‘Top Gear’ programme on BBC, Sittampalam says, “That presenter, James May, can sell cars like this (snaps his fingers)!”

NO
Dr Dannielle Blumenthal has held positions at Young & Rubicam's futuristic trend consultancy and served as director of the Institute for Brand Leadership. Writing in brandchannel.com, she offers a counterpoint: “At that time, they were right; advertising had indeed lost credibility while the media still had it.

“But today, one can no longer be so sure,” Dr Blumenthal continues. “In an age when news releases regularly substitute for real news, people have learned to be skeptical about the media’s objectivity.”

Credibility: Who You Gonna Call?

2007-05-23T23:58:00.000-07:00

Q: What do Microsoft, Google, Red Bull, Linux and Starbucks Coffee have in common?
A: All of these brands were built using public relations (PR).

This was pointed out by Jayantha Sittampalam, Managing Director of Cameron Pale & Medina, a public relations firm that pioneered the ‘inclusive communications approach’. Sittampalam was addressing a seminar on ‘Category-led Marketing’, sponsored by Cameron PR, at the Ceylon Continental Hotel this week. The audience comprised CEOs and senior marketing professionals of Superbrands.

In the pursuit of awards, advertising agencies have tended to sacrifice effectiveness at the altar of creativity. “Awards have become the Holy Grail of advertising”, said Sittampalam. Embellishing his presentation with commercials from Budweiser and Nike, he suggested that foreign agencies were also guilty of this.

Over the past few years, advertising volumes have been increasing. Therefore, to be seen amidst the clutter and heard above the din, clients have had to increase advertising frequency and expenditure. Sittampalam points out that this leads to a vicious cycle with volumes increasing even further. As an obvious corollary, effectiveness is adversely impacted; the only beneficiary seems to be the agency.

Drawing extensively from Al Ries’ book, ‘The Fall of Advertising and the Rise of PR’, Sittampalam built a case for PR. He observed, “Many things that lose their functional purpose turn into art forms: painting, calligraphy, swords, horse-back riding – and Advertising!”

“Advertisements are one-sided,” Sittampalam said. In the communication mix, direct communication (what you say about yourself) is the easiest to craft to your specifications. This is exactly why it lacks credibility. Establishing category leadership is difficult without credibility, which advertising cannot establish.

Touting PR as a credible alternative, Sittampalam attempted to shatter the ad-value equivalency myth: “The difference between being front page news and having a front page ad is the credibility of the third party voice.” PR can establish credibility, but only if one walks the talk. This requires a new approach to communication, in which establishing credibility is the key. “The idea is not just to get space, but to get credibility by being unbiased,” says Sittampalam.

Inclusive communication establishes both: credibility and category leadership. In practice, inclusive communication strategy encompasses direct communications (above the line, below the line and promotions), indirect communications (media relations/ PR) and even non-verbal communications.

So what exactly is Category-led Marketing? Sittampalam sums it up: “If you belong in a category where there is already a leader established in the prospect’s mind, dislodging him is almost impossible. Instead, refocus and rename your category... You can have a situation where you are in advertising but you’re insignificant. So, recategorise yourself as the leading agency in the below the line (BTL) category, so that you become big in BTL.”

Claiming brand building as the natural domain of PR, Sittampalam advised advertisers to “accept what you already own in the mind. Go deeper, not broader.” He concluded that the new role for Advertising would be brand maintenance.

PR Case Study: An Indian Media ‘Takeover’
(Source: Cameron PR)
Client: Export Development Board of Sri Lanka (EDB)
Campaign: Launch of Sri Lankan exports gateway in Chennai
Year: 2005

Background
Following the signing of the Free Trade Agreement with India, the EDB wanted a permanent gateway in India for Sri Lankan exports. They rented retail space at the Spencer Plaza in Chennai, creating an opportunity whereby Sri Lankan products could be displayed, attracting potential Indian trade partners. This gateway enabled trade and consumers to see and purchase Sri Lankan products, and identify business partners to engage in long term trade between the two countries.

The communication budget for this bilateral trade promotion event was only Rs 4 million, which was too limited for any impactful advertising in the Indian media. (A half-page advertisement in The Hindu, for example, cost Rs 2.9 million.)

The Campaign
A PR firm was appointed to launch and promote the gateway. For the launch event to be executed in the atrium of the Spencer Plaza, the PR firm adopted a communication strategy relying almost entirely on publicity. The pre-publicity was carried out through the PR firm, state agencies and Sri Lankan diplomats.

Although the event area was visible for all visitors to the building - even from the top-most floor, the event was restricted to invitees only. This strategy alone created much hype due to the restricted access – with the inquisitive Chennai public actively seeking out information.

The event generated a torrent of publicity in six television stations on prime time. The post-publicity for the event included 27 Indian newspapers featuring the event in their columns the following day! With an extremely small budget, a launch of this nature would not have been as successful had it not been for the PR-led communication strategy that was adopted.

Christina's Autobiography

2007-05-22T03:58:00.000-07:00

A Child Is Born
I came into this world one night, surrounded by a group of ladies in white uniforms. The wall-clock chimed 8 o’clock. So, this was the world, I thought – a place surrounded by four walls with pictures of babies on them.

Amidst these blurred memories, two people stand out. They wore big smiles on their faces and had tears of happiness in their eyes... My parents had just had their first child..! What happened next surprised me a little. One of the ladies in white carried me and started jumping around, shouting "Easter Bunny, Easter Bunny!” She looked like a bunny rabbit herself. That’s when I realized that I had been born on Easter Sunday, 19th April 1992.

Three days later, I was taken out of the hospital and driven home. The world was much bigger than I had initially thought. My parents decided to call me Christina, which means ‘Christ is in you’.

My Gigantic Playpen
When I was 3 months old, while Mum’s back was turned, I was exploring the borders of my bed and rolled over the edge. I hurt myself slightly; Mum and I cried together, she out of embarrassment and I out of shock... The bed was shifted out and the whole family slept on mattresses.

About a year later, I woke up at 3 o’clock in the morning. My parents were fast asleep and I was wide awake. Not wanting to disturb them, I went exploring again. I went to the kitchen and started played with the utensils there. Those seemed like fun toys – Mum was always playing with them. But my parents woke up for the racket I was making with the vessels.

That was when Mum decided to put two wooden gates on both doors leading to the bedroom. So, I had a spacious playpen – the size of a bedroom, with a wall-to-wall mattress and all my toys.

My Favourite Toy
I was not very possessive about my toys, except for one particular stuffed clown with patchwork clothes, whom I called ‘Clowny’. I treated Clowny like a friend and took him wherever I went, like Mary’s little lamb. Clowny accompanied me to restaurants, to the park, for walks, and even to my relatives’ houses.

I asked my parents to put out an extra plate at mealtimes, on which there was some food that Clowny used to eat. (It was only later that I realized that my Daddy used to eat the food when I was not looking.)

Before my third birthday, Mum gave birth to a little baby boy, my brother – and my parents named him Jonathan. The first thing I did when I saw him was to give him that clown which I really loved… because I loved my brother more.

The Play-School Days
Soon after that, I started going to a play-school called ‘Little Flowers’. On the first day, when I let go of Mum’s hand and said “Bye, Momma”, I was smiling. But I was surprised to see that there were tears in her eyes!

Once, when I was about three years old, I wanted to give my brother a bath. Mum obviously said, “No”. This made me upset; how could they restrict my freedom like that? So, I protested by packing two panties in a basket and – without a word - walked to my Grandma’s house, which was a block away.

Mum got extremely worried when she couldn’t find me anywhere in the house. On the verge of tears, she came to Grandma’s house to ask them for help to find me. There I was, sitting on my aunt’s lap, laughing away as if I didn’t have a care in the world.

Entering the Real World
Soon, it was time for me to join a real school – St Francis Xavier’s Girls’ High School (SFX). I remember looking at the big girls on the first day and wondering when I would be as confident as they were. In school, I met new people and made a group of friends - Swetha, Swaroop, Tanushree and Aakriti.

From preparatory class to Standard I was a big change. I had to learn a lot more than the alphabet and numbers from one to ten. I was learning reading, writing and arithmetic; these were the foundation of all the education that was to come. The most difficult was learning how to manage without nap time and snack time!

I started taking Bharatanatyam classes before my tenth birthday. My first dance performance took place at the Vincent Palotti Church Hall, after one year of classes. I have performed on stage on ten different occasions. As I grew older, the studies became more difficult and I had to discontinue this hobby.

The Wonderful Years
Some classmates and I, accompanied by our mothers, went together to a resort called Happy Homes. We stayed up all night – talking, laughing and taking photographs. Early morning, we went for a walk without telling anybody. It was so exciting because we the children got our own space, without parents interfering in our fun.

That was our first ‘sleepover’ experience (my Daddy says it should be called a ‘wakeover’!) and it was unforgettable. During summer holidays, I used to go for summer camps and swimming camps. But I used to enjoy these sleepovers most. We used to be mischievous, putting powder on each others’ heads. We used to stay up the entire night, talking about how we would always be friends. We used to eat chocolate at 2 o’clock in the morning, have pillow fights, watch movies and paint each others’ nails.

Every Sunday, we used to have family dinners at Grandpa’s house. Then, we used to convince my Daddy to buy ice-creams for us from Corner House. Even as I write this, I can imagine the delicious taste of Hot Chocolate Fudge. Slurp!

Independence Days
The first time I was allowed to go out without my parents was on my thirteenth birthday. My friends and I visited a mall called Forum, had lunch at KFC and watched a movie called ‘Yours, Mine and Ours’. It was loads of fun, being without our parents. We went to a clothing shop called Mint, where we tried on clothes. We clicked photographs, posing in gowns and boots – and sunglasses as large as our faces!

Moving to high school was another big step - I had become a Big Girl. The teachers treated us like adults and were like friends to us. I would rate Standard VIII as my best year so far… I remember our school carnival ‘Xtravaganza’. I was part of the staff in the functioning of the ‘Horror House’. So, I spent the entire three days of the carnival in school and practically came home only to sleep.

What Will Be Will Be
I had always wanted to be a pediatrician because I love science and children. But once, when my Mum was feeling very ill, I accompanied her to a clinic to consult a doctor. She had to take an injection and I was standing next to her, holding her hand. On seeing the medicine going from the syringe into her arm, I felt faintish and needed a seat. I realized that it was time for me to choose a different profession!

I listed down all the things that I liked to do. As I love to decorate my room, and my friends always call me to help them set up their rooms, I finally came to the conclusion that I would be an interior designer some day.

Standard IX
The 9th standard brought with it a higher level of studies, more freedom and self-control - and the ability to raise my voice! I also traveled overseas for the first time – to Sri Lanka. That was where I saw more than fifty elephants in an ‘orphanage’ for abandoned elephants in a place called Pinnawela.

Once, a friend’s cousin was getting married and she had sent all of us invitations to attend her grand wedding. Eight girls - Swetha, Swaroop, Tanushree, Roopa, Manisha, Sarah, Nell and I - dressed up and went for the reception at Palace Grounds. It was like a carnival! There was not only main course food like tasty chicken biriyani, but also cotton candy, pastries, popcorn, ice-lollies, and various kinds of desserts. It was the most fun weddings I have ever been to.

Now and Forever
I realize that I have only one more year at SFX and I am now in the 10th standard - the highest level of seniority in school. Little girls will look up at me and wonder when they will be as confident as I am.

The many lessons that I have learnt as a student of SFX will surely help in life. I owe it all to my parents and teachers. They have guided me during my formative years and made me what I am. I thank them from the bottom of my heart. May God bless them!

Who Will Bell The Cat?

2007-05-08T22:44:00.000-07:00

M B S Fernando, Chairman of the Road Development Authority (RDA), has views that are somewhat radical but certainly worthy of consideration. Talking to The Sunday Times FT last week, he said, “To solve our transportation problem, we need to invest on public transport systems instead.”

The occupancy of an average car plying on the roads is only 1.3 passengers. A bus built for forty, however, carries one hundred commuters. Fernando points out that this represents uneconomical utilization of available road space – and leads to traffic congestion. The problem is that we are not paying adequate attention to improving public transport and infrastructure.

Who will foot the bill? Fernando proposes that the money be raised from private car owners. “We import 400 million litres of petrol,” he says, “most of which is consumed by car owners... Charge higher prices for petrol and invest the extra proceeds in public transport.”

If we were to increase the price of petrol by Rs 100 per litre, Fernando suggests, that could generate Rs 40 billion. Even with lower demand, we would generate Rs 20 billion to invest in state-of-the-art buses and trains, which are clean and run according to timetables.

The only reason why such a price increase would not be popular is because chairmen of corporations and heads of departments decide policy. These are the very persons who enjoy free cars and petrol as a perquisite! But Fernando has a sugar-coated solution for that too…

It costs Rs 75,000 per month to maintain a car for a public servant. Instead, Fernando suggests that Rs 50,000 be added to his salary in lieu of the perquisite. If the public servant uses public transport, he will still be able to save Rs 35,000. Any takers?

Stalls, Seminars & Positive Buzz

2007-05-08T22:40:00.000-07:00

“Construction is the main driver of infrastructure development,” declares Dakshitha Thalagodapitiya, the amiable CEO of the Chamber of Construction Industry (CCI). Being the apex body of the construction industry, the chamber boasts of more than 250 corporate members. Thalagodapitiya was addressing a press conference this week in connection with EXCON 2007, the annual trade fair of the CCI.

EXCON 2007 is being held at the BMICH from May 11th to 13th. The purpose of the exhibition is twofold - to build capacities in the industry and to enhance its competitiveness. EXCON 2007 will unite and enlighten all principal stakeholders, including a large number of construction service providers. There will be 200 exhibition stalls.

The SME sector, accounting for more than 80% of the industry, is being encouraged to form consortiums, establish joint ventures and seek opportunities through mergers.

The CCI is working with the Export Development Board (EDB) to also groom larger companies to undertake overseas projects and to export professional services. At its Export Readiness Clinic, the EDB will demonstrate a software tool that can assess the readiness of prospective exporters. There will also be a seminar that provides pointers to Sri Lankan companies intending to go global.

The principal sponsor of the trade fair is Metso Minerals of New Zealand. Its exhibit - manufactured sand - is expected to be much sought after, being superior to river sand. Metso Minerals’ local representative, Altaf Halil, confirmed that manufactured sand has no impurities and can therefore help achieve greater strength using less cement. Besides, manufactured sand costs less than Rs 4,000 per cube, whereas the price of river sand has increased to almost 7,000 per cube lately. This price increase has been accentuated by the restrictions on mining of river sand.

There are other stalls that help in improving quality of construction while keeping costs down. Practical Action, a British NGO, will be introducing a new and cost-effective construction technology at the trade fair. Their local arm will also conduct a seminar on reducing construction costs.

Holcim Lanka Ltd, EXCON 2007’s strategic partner, will be launching application-based cement called ‘Holcim Piyasa’ at the fair. This is a special mix that will be priced less than normal cement and is targeted for the rural housing market. The company’s representative, Indika Jayaweera says, “We have different cements for different applications.” He describes Holcim Lanka as the only integrated manufacturer of cement in Sri Lanka.

Talking of the hurdles confronting the industry, Thalagodapitiya highlights the shortage of construction labour. He indicates that this is being addressed through a plan to train one lakh craftsmen in four years.

The exhibition will cost Rs 7 million, which is being met by its sponsors. ”Admission is free and we expect that 80,000 people will attend,” concludes Thalagodapitiya. Sponsors include Harris Ceylon Ltd, GTB Colombo Corporation, Road Development Authority, Sri Lanka Ports Authority, Board of Investment, Sri Lanka Insurance and State Mortgage & Investment Bank.

And The Living Is Easy

2007-05-06T04:50:00.000-07:00

My immediate reaction - on seeing Mr BB’s mail on ‘Divisional Manager’ promotions - was, “I would probably have been on that list had it not been for this unfortunate episode”. For the time-being, however, I am just happy to be alive…

Frank Sinatra put it nicely:
“Regrets, I've had a few,
But then again, too few to mention.”

Marina, Chris and Jonty are scheduled to arrive in Colombo on May 8th. They will be here for two weeks, during the children’s summer vacation, and we will be staying at the Ranveli Beach Resort in Mount Lavinia.

I will not be able do much writing until their departure on until May 22nd.

NL: Catman Returns, To Mumbai

2007-05-06T04:16:00.000-07:00

Abhijit has decided to call it quits… If we thought life before was chaotic, this is worse.

BAM 2007: You were sorely missed and we even kept bugging Sashi Menon as to how he could have been so inconsiderate… He gave us some long spiel about government regulations!
(AM: Did you know that Phuket was a major transit point for LTTE arms and ammunition?)

We gave Abhijit an informal farewell... Aarti and I made him a scrap book of memories and I think he was quite touched... We gave him champagne flutes from us - Category Team and Vincent… It was good fun… although some people had to crawl back home.

Gadgets and Biz Intelligence

2007-05-02T23:13:00.000-07:00

AA: Read about the air-raid… Hope all’s well with you.

AM: The air-raid seems to have served its purpose - there is a fear psychosis in Colombo. The LTTE has been behaving like a yuppie with a new gadget, eager to show off its newly-acquired air power. They are by no means a spent force, despite the territorial losses that they have sustained on the ground.

Your mail implies that you were at Phuket… Did you have a fun time? Was it too good to write home about?

When I pressed the memory recall button for ‘BI’, I got ‘business intelligence’. I thought that was inappropriate in the DTC context.

A Good Egg, Scrambled

2007-05-01T23:31:00.000-07:00

I tried my hand at anagrams, attempting to develop a nom de plume. So, what do you get when you unscramble ANTONY MOTHA? A good egg - no doubt, but I was referring to the letters.

MONTY ON A HAT – My favourite. You can almost visualize the little fellow in a comparative state of undress, prancing on a sombrero

ANNA MY TOOTH – Highly feminine. It reminds me of a toothache and a sweet tooth, both sensations associated with that particular gender

MATT YOHANNO – Macho. The first association is with Matt Dillon. And I did have a class-mate called 'Yohann Basu' once

HATTAN Y-MOON – Kind of lunatic, but don’t reject it outright. The UN Secretary General’s name is even more prohibitive: Ban Ki-moon!

What do you think?

Marina Writes To Bhaskar Bhat

2007-05-01T23:10:00.000-07:00

Our family would not have survived this ordeal had it not been for God’s grace and Titan’s support. This brief note is to express our sincere gratitude to Titan for the support and assurances that you have given to our family over this period.

In a sense, Titan has always been an extension of our home because Antony and I got married soon after he joined Titan! He continues to be as loyal an employee as he has been over the past sixteen years.

As you can imagine, being without their father has been difficult for the children... Despite the odds, I am happy to inform you that our children have done us proud.

Tough Times Don't Last

2007-04-30T03:14:00.000-07:00

The golden beaches are not quite crawling with tourists. The verdant hills are alive with the sound of birdsong, not foreign accents. At the smaller resorts, accommodation is available at a fraction of what it used to cost... After a promising start, the number of inbound tourists has been on the wane this year. Considering that tourism is Sri Lanka’s fourth largest foreign exchange earner, this has resulted in furrowed brows in some corridors of power.

When written in Chinese, however, the word ‘crisis’ is composed of two characters: one represents danger, the other signifies opportunity... So, undaunted by the immediate danger, the Tourism Board (SLTB) is using this opportunity to “get our PR (public relations) act together and get our infrastructure right in terms of ability to deliver.”

Renton de Alwis, SLTB’s Chairman, elaborates: “The strap-line ‘A land like no other’ could sprout extensions like ‘Beaches like no other’, ‘Hills like no other’ and even ‘Rain like no other’... One prominent target would be the older population/ seniors - They have funds, and they can travel any time without waiting for school holidays.”

A foreign tourist is a foreign passport-holder who spends more than a day in the country he is visiting. More than 70% of such visitors to Sri Lanka come on holiday or for leisure.

The Ministry of Tourism has started consultative meeting with stakeholders, the media and similar knowledgeable persons, to share developments and chart a new course. Addressing the second such meeting, Additional Secretary George Michael revealed that advisory panels have been created for Hotel school operations, Niche tourism products, Cruise tourism and Domestic tourism.

“Domestic tourism fills hotel rooms during difficult times, when foreign occupancy is down”, explained Michael. The strategy appears to be paying dividends: Local guest nights have increased this year, even as foreign guest nights have declined.

Deputy Minister Faiszer Musthapha talked about the high-potential Middle Eastern market. With 45 flights per week, airline connectivity to this region is second only to India. Vipula Vanigasekara, General Manager – Sri Lanka Convention Bureau, spoke of the MICE (Meetings, Incentives, Conventions and Exhibitions) segment that represents 12% of arrivals. This is an upmarket segment because it spends four to five times as much as an average holiday maker does.

Indians comprise the highest number of tourists to Sri Lanka. They are compulsive shoppers, spending as much as 33% of their budget on shopping (average, all countries: 21%). The SLTB is planning to launch a mega promotional campaign during July 2007 to tap this market. It is estimated that 16 million Indians will travel out during 2010.

Sri Lanka lacks resources to spend big bucks – like the 2 million Euros spent by India on the ‘Incredible !ndia’ promotion. Hence, innovative ideas come to the fore. Niche tourism, for example, implies Sri Lankan tourism with a distinct flavour – like having ayurvedic doctors to explain why gotukola is good for you!

Travelling: The Spice of Life

2007-04-30T02:54:00.000-07:00

Later this week, I will be traveling to Kandy - a hill station in the central part of Sri Lanka - in a UN vehicle, in my avatar as a Special Correspondent with the Financial Times.

I am working on a feature story on the spice industry in Sri Lanka, which has languished because of quality and marketing issues... There used to be a time when spices from here used to be exported – and even smuggled – into India.

The United Nations Development Programme is attempting to revive the industry to its glory days.

Fireworks Like No Other

2007-04-28T00:11:00.000-07:00

Action on the night of the World Cup Cricket finals between Australia and Sri Lanka: Brass bands playing the baila on the streets... Supporters waving flags from car windows... Quite a festive atmosphere and I was loving it..!

Rain delayed the start; so, I went to sleep. I was woken up during the early hours of the morning and – from my bedroom window - saw fireworks, due North. I soon figured out that those were tracer bullets, i.e. anti-aircraft fire, and assumed that that was how the Sri Lankan Army celebrates victory.

Only later did I realise that M/s Gilchrist, Duckworth & Lewis had done Sri Lanka in… and that LTTE aircraft had dropped bombs on the outskirts of Colombo. Never a dull moment, huh?

The Tourist Board describes Sri Lanka as ‘a land like no other’. Tell me about it!

Wanted: Dignity and Souvenirs

2007-04-27T23:48:00.000-07:00

SV: Vani is demanding her souvenirs right now and so is the guy who sits in your place. He can neither contain his excitement nor retain his dignity.

AM: I found that comment amusing – the one about a certain individual finding it hard to retain his dignity... In terms of financial knowledge, I might have a worthy successor. However, there are a lot of important 'human' characteristics that are hard to come by, it appears! Give him time.

Communist Enclosure

2007-04-27T22:41:00.000-07:00

KVK: Typically, we would need a minimum of six months from manuscript to publication… would depend on the kind of editing called for. So, if we were looking to publish in December 2010, it would be great if the manuscript reached us by January 2010. If that isn't possible, then latest by May.

Whatever you may have read about me, I can be ruthless with my red pen, so be warned!

AM: I hope you will be ruthless with your red pen; I wouldn't have it any other way. But, yes - forewarned is forearmed…

Let me first try to put together a product worthy of HarperCollins' consideration. I will revert to you after I have come to that stage…

Tourism on the Front Foot

2007-04-26T23:03:00.000-07:00

Mahela’s scintillating stroke-play and Murali’s mesmeric bowling were the cynosure of all eyes during the World Cup semi-finals and finals. However, amidst the spectators, one could not help noticing an enthusiastic group of supporters. They were flaunting boards emblazoned with traditional Sri Lankan masks and were prominent enough for the cameras to focus on time and again.

Therein lies a tale of innovative Marketing and creativity. The attractive blue boards featuring cricketers and masks were developed in Colombo and dispatched to the West Indies. The package also contained Sri Lankan flags, Sri Lanka Tourism Board (SLTB) caps, T-shirts and banners. The messages on the boards were subtle and understated. Anything more overt would have been considered ‘commercial’ – which cameramen have been trained not to focus on.

The group of thirty Sri Lankans studying in the USA was upgraded so that they could be together in one enclosure, to enhance their collective visibility. This initiative was the brainchild of the SLTB, implemented in collaboration with our embassy in Washington.

To incur this expenditure – albeit small - soon after March 2007, in which month tourist arrivals declined by 36%, takes foresight and guts. A multiplicity of factors – from adverse travel advisories to the Cricket World Cup - had contributed to the decline.

In his wood-paneled office, Renton de Alwis, SLTB’s Chairman, exuded optimism while talking exclusively to the Financial Times on Thursday. “When you’re not doing well,” he proclaimed, “be seen in the best of places!” There is a palpable sense of excitement in his voice as he describes the board as ‘dream sellers’ whose “business is to be positive.”

Immediately after the famous victory over New Zealand, the SLTB released a message congratulating the Sri Lankan cricket team at 4 o’clock in the morning!

Assignment Colombo: RV

2007-04-23T02:04:00.000-07:00

Lately, my life has been revolving around the book – recording, transcribing and typing. The creative work will come later. (I hope to finish by December 2007.) In fact, even this evening, I have a recording session with Boyagoda, about whom the book is.

I write for the Financial Times whenever there is an assignment. I have not been chasing them for assignments because of paucity of time. I write creative pieces when the mood moves me.

Malaika's wedding is scheduled for October 25th. The maaplai's name is Nirmal Pieris, with the Sri Lankan pronunciation, i.e. Nirmaaal... Apparently, the last Colombo wedding in the family was yours..! So, everyone is maha-excited here.

The Economy According To CBSL

2007-04-21T20:59:00.000-07:00

Broad-Based Economic Growth Of 7.4%: Per Capita Income $ 1,355
Services Has No ‘Natural Limitations’, Will Be Engine of Growth
Need To Accelerate Infrastructure Development Programme

The Central Bank Annual Report is prepared primarily to fulfill a legal obligation of the Central Bank of Sri Lanka (CBSL). However, over the years, this report has gained in importance and now serves the needs of a broad spectrum of readers. Last week, the ‘State of the Economy’, as dealt with in Part 1 of the 2006 Report, was the subject of a public lecture by Dr P Nandalal Weerasinghe, Director of Economic Research at CBSL.

First, the statistics… During 2006, Sri Lanka’s economy grew by 7.4%, the highest since 1978. In the process, the country’s per capita income rose to US$ 1,355. Unemployment dropped to 6.5%, the lowest level ever. Dr Weerasinghe pointed out that what is commendable about all these accomplishments is that they were achieved amidst several challenges. Some such impediments were high oil prices, an escalation in terrorist activity and counter-terrorism measures, and natural disasters.

Growth was broad-based too - with the services sector growing by 8.3%, industry by 7.2% and agriculture by 4.7%. Dr Weerasinghe, describing the services sector as “the driving force in the economy”, said that the country is poised to become a service-oriented economy.

Explaining the higher growth of the services sector, H N Thenuwara, Assistant Governor, CBSL said,”There are natural limitations in agriculture and industry because they occupy physical space. Besides, our competitive advantage has always been in services.”

The industrial sector needed “to transform itself into a globally competitive, dynamic and technologically sophisticated sector”, said Dr Weerasinghe. He called for further diversification into value-added apparel, minerals, gems & jewellery and industrial goods.

To enhance productivity in the agricultural sector, Dr Weerasinghe suggested adopting consistent trade policies and making rural financing available.

“The external sector also continued to expand, supported by strong global growth and preferential access through bilateral and multilateral trade agreements,” said Dr Weerasinghe.

On the failures side, Dr Weerasinghe said that monetary policy during 2006 was aimed at reducing demand-driven inflationary pressures. The CBSL raised policy interest rates by 125 basis points during 2006 – and a further 50 basis points in 2007. The bank also absorbed excess liquidity through Open Market Operations. However, it was a situation of too little, too late.

Dr Weerasinghe listed four “fundamental forces of productivity improvement” - infrastructure development, technological improvement, human capital development and research & development.

Speaking to the Financial Times later, Thenuwara stressed the need to activate the infrastructure development programme. “The Government has committed financing for the implementation of planned major infrastructure projects“, he said. “Making this available within the stipulated period is a prerequisite to achieving higher growth. Besides, emerging infrastructure requirements need to be financed through public-private partnerships.”

Talking of the need to increase productivity, Thenuwara said that significant improvement in operations of state-owned enterprises is critical.

A Book & Some Great Company: JA

2007-04-20T20:57:00.000-07:00

I don't think the book will see the light of day till next year – or even later. I am fairly confident that it will do well. Let's see… HarperCollins has evinced interest – and I am in touch with the same individual who handled Anita Pratap's Island of Blood.

Fortunately, the Tata Group has been incredibly supportive during this period... They are trying two parallel routes: liaison and legal. Something should click in the near future… Keep praying. The fantastic thing is that Titan is continuing to pay my salary. I have no clue how they propose to recover the amount, but – for the time being – it suits me fine not to ask.

On Fear and Greed: KVK

2007-04-19T21:58:00.000-07:00

Boyagoda would like to release only after peace returns… I would like to release when I'm ready... More time would permit me to fine-tune the product – up to a point, beyond which diminishing marginal utility would probably set in.

I also do realise that there are books and there are un-putdown-able literary masterpieces. Sometimes, the difference is only that the writer was in too much of a hurry and did not give it 'the creative treatment'. But I guess I am preaching to a missionary…

In the ultimate analysis, I think we have plenty of time and the decision is likely to be an emotional struggle: between fear and greed.

UNESCAP's Flagship Report

2007-04-19T21:30:00.000-07:00

At a simultaneous world-wide event on Wednesday, UNESCAP launched the 'Economic and Social Survey of Asia and the Pacific 2007'. The 59 th edition of the organisation's flagship publication is a comprehensive and extremely readable 190-page report.

In his welcome address at the Colombo launch, Abu Selim, UNDP's Country Director, said the publication would be useful as a policy guide for each individual country. This is because the report considers both the economic and social sides of the development coin.

The impressive 7.9% growth in the Asia-Pacific region's developing economies during 2006 represents one third of worldwide growth. "Despite this encouraging trend," Selim cautioned, "there is no room for complacency." Caught up in the obsession with growth, countries have been tending to overlook the need for poverty alleviation.

Presenting the report, Dr Muhammad Hussain Malik, Economic Affairs Officer at UNESACAP Bangkok, pointed out that the Asia-Pacific region is becoming the engine of global growth. The 2007 outlook for the region is characterized by continuing dynamism, he said. This optimism is despite the slowing US economy and a decline in global electronics demand. Dr Malik described the performance of South Asian economies as "impressive".

The likely global slowdown in 2007 would cast its shadow on Sri Lanka's GDP growth rate, which is expected to decline to 7% this year, predicts Dr Malik. In addition, with inflation ruling at an unacceptably high level, the government could resort to measures that would lead to demand contraction.

"The reform process needs to be maintained, to sustain high growth", urges Dr Malik, while calling for higher spending on rural infrastructure in South Asia. The incidence of poverty in the region is higher in rural than in urban areas. The challenge confronting governments, therefore, is to ensure growth that is inclusive and broad based, he points out. A rupee spent on roads has seven times as much impact on poverty alleviation as a rupee spent on specific anti-poverty programmes.

The UNESCAP report has a chapter on gender discrimination. The annual economic cost of low participation of women in the labour force has been estimated at $ 42 – 47 billion. Dr Malik believes that the drive for a more equitable gender balance would consume little effort and cost, if only there is strong political commitment. In the World Economic Forum's 'Gender Equality Index', Sri Lanka is ranked 13th – out of more than 100 countries assessed. The other South Asian nations languish among the bottom 25.

Dr Saman Kelegama, Executive Director at the Institute of Policy Studies, spoke about Sri Lanka's economy. The Asian buoyancy has contributed one percentage point to the country's growth rate of 7.4%, he suggested. He also said that the country has adequate foreign exchange reserves for three months' imports. Dr Kelegama strikes a note of caution while drawing attention to the budget deficit during 2006. At 8.4% of GDP, this was among the highest in South Asia, "partly as a result of higher military spending."