Business

Prabhash Subasinghe, the newly appointed Chairman of the Sri Lanka Export Development Board (EDB), met with the nation’s leading apparel exporters last Friday (17) at the board premises.

At the outset, Subasinghe expressed his gratitude to the Sri Lankan apparel exporter community for their yeoman contribution and commitment towards the country’s economic development and shared his satisfaction with on the noteworthy performance of the sector during 2019 in spite of the challenges faced.

He mentioned that the EDB always stands committed towards the growth of the Sri Lankan apparel industry which is the main contributor to the export earnings of the country.

During the discussion, exporters sought the assistance of the EDB to enhance the access for the Sri Lankan apparel products to the Indian market by lobbying for the removal of Indo-Sri Lanka Free Trade Agreement’s quota restrictions on Sri Lankan-made garments. Subasinghe stated that he has already discussed this with the Department of Commerce and EDB will follow up with them on the future cause of action.

The industry stressed the importance of creating an enabling environment to make Sri Lanka the hub for Global apparel industry by managing front office operations as the apparel industry in Sri Lanka has more or less reached its full capacity.

Furthermore, they pointed out the significance of developing a local fabric base for the apparel industry, and in that regard highlighted the importance in expediting the proposed dedicated manufacturing zone in Eravur, which intends to attract manufacturers of textiles. The delegation also praised the efforts of the EDB in supporting the country’s SME apparel exporters in respect of compliance improvement and market penetration.
The industry representatives elaborated on their plans to project Sri Lanka as a sustainable manufacturing destination for apparel by highlighting the industry’s excellent labour practices and carbon-neutrality in order to strengthen the competitiveness of the Sri Lankan apparel industry in the global marketplace. They sought the support of the EDB in this regard.

The delegation included Chairman & Secretary General of the Joint Apparel Association Forum (JAAF), MAS, Brandix, Hirdaramani, EAM Maliban Textiles, and Star Garments, Original Apparel.

Confusion has taken center stage in the local vehicle market over reports that Hyundai Motors Company Korea is appointing a new agent for the Sri Lanka market.

The issue has come to public attention when the popular brand’s models have started to appear in shopping malls with so-called exciting prices.

Unknown to the wider Hyundai vehicle owners, Hyundai Motors regional office based in Malaysia, had reportedly forged links with a local conglomerate and had appointed them as an agent.

Accordingly, Abans Automotive have written to the Registrar of Motor Vehicles (RMV) informing of their new status as agent of Hyundai Motors. This was during the currency of the agent of nearly 20 years, Hyundai Motors Lanka Limited.

The RMV has also been in receipt of yet another letter in which it is purported to be from Hyundai Motors stating that Hyundai Motors Lanka was not the agent and therefore should not be permitted to directly register vehicles, which is a system available to registered agents.

Hyundai Lanka who has enjoyed their agency status in the country for nearly 20 years had immediately contacted the RMV as they believed that the two letters to the RMV even though it was purported to be from the same person had allegedly carried two distinctly different signatures.

The RMV have since then written to Hyundai Motors seeking clarification and were sent by email the body of the letter this time without a verifiable signature.

These events on its own have suggested a sense of unfair and perhaps sharp business practices deepening the unhappiness of an agent who has served the Hyundai customers in Sri Lanka rather well for almost 20 years.

The current agent in Sri Lanka has represented the brand for approximately 20 years and has dedicated showrooms, but importantly, Hyundai Lanka have dedicated and experienced workshop staff trained to be familiar with the full range of Hyundai vehicles. This has become especially more important as vehicles in this day and age are heavily dependent on electrical work including the Hybrid versions.

However, the latest developments have created a sense of uncertainty, especially when it comes to warranty issues and as to who would honour the manufacturer’s warranties.

In comparative terms Hyundai is a cheaper vehicle than any other premium brand - meaning that a typical user of Hyundai vehicles will have just the one vehicle rather than the typical owner of a premium brand vehicle who is likely to have more than one vehicle at their disposal. The reasoning being that with a lower end of the spectrum vehicles like the Hyundai, the owner is likely to have just the one car and therefore dependent on timely service and repairs.

It is now being stated that the authorities need to look at setting up a Monopolies Commissioner in Sri Lanka due to the rationale that the Monopolies Commission would be able to rule that agents of specialist items like vehicles for example must be forced to ensure that certified workshops are in place staffed with knowledgeable staff in order that consumers do not get caught out when commercial disagreements occur between principles.

Abans has meanwhile denied that the letters were questionable and has suggested that the issue was more about bruised egos than any other.

However, as of 7th November it has been revealed that the Korean named in the letters has made a personal visit to the RMV (Registrar of Motor Vehicles) and signed letters in front of the Registrar.

Nevertheless, the real question in the whole drama is on the existing warranty honouring, service issues etc that appear to have been left in abeyance.

Reiterating its pledge in leading Sri Lanka towards an info com and knowledge rich society, Mobitel, Sri Lanka’s National Mobile Service provider, has partnered with CareerMe, a fully-fledged career guidance app and web platform developed by a local company in partnership with an Australian body, to aid students, teachers, parents and other industry professionals alike to obtain career guidance.

The free career guidance mobile app is a first of its kind in Sri Lanka and hosts free, interactive online career tools that help identify the best career and education paths with personalised career guidance at the touch of a fingertip. As technology partner for CareerMe and other such innovative startups, Mobitel has taken on the mantle of a mentor - nurturing tech entrepreneurs and innovative startups to succeed as successful businesses.

Since its launch in August 2019, CareerMe App is witnessing rapid adoption and was awarded the ‘Winner in the Learning and Education category’ at the ‘e-Swabhimani Digital Social Impact Awards 2018’, organized by the Information and Communication Technology Agency (ICTA) of Sri Lanka. Through this collaboration, Mobitel hopes to enhance employability by guiding students in the right direction, so that they can pursue their aspirations and become a vital asset to the country.  

Nalin Perera – CEO, Mobitel explains, “As the National Mobile Service Provider, Mobitel, is playing a strategic role in driving a spirit of technology-backed entrepreneurship to encourage business ideas that will enhance people’s lives and make a national contribution. Mobitel has been active in expanding nascent IoT and IIoT technologies in Sri Lanka, investing heavily in bringing the advanced technologies to benefit Sri Lankans.  Our aim is to empower people from both rural and urban areas with the ability and knowhow to access enterprise solutions that would help them increase their efficiency, productivity and re-engineer processes. We have partnered some startups which are thriving today and will continue to seek out innovative idea and concepts and put them on the path to prosperity. The growth and expansion of home-grown startups have the power to drive economic growth.”

With CareerMe, the future generation of the country can obtain career guidance coupled with advisory support to successfully achieve their ambitions thus become a vital force in fulfilling the future employment demands and help move the nation’s engine of growth forward.

In the past, Mobitel has nurtured THURU as technology partner, providing technical consultation mainly in the domains of NBIoT (Narrow Band Internet-of-Things), Blockchain and Artificial Intelligence to make the system futuristic and intelligent. THURU was one of the 10 finalists of the Season 2 of Kotiyak Vatina Adahasak, Sri Lanka’s first-ever innovation and entrepreneurship-based tech reality TV show powered by Mobitel.

About CareerMe

CareerMe® is Sri Lanka’s award-winning career guidance company, founded by a young Sri Lankan woman entrepreneur and operates in technical collaboration with Grow Careers Australia. Believing the power and potential of career guidance to develop and realize aspirations of young people for sustainable national growth and development, CareerMe provides nationwide, impartial career guidance services in all three national languages for youth to explore education and career options that match their personality, skills, strengths and interests. As a pioneer technology driven hybrid career guidance company in Sri Lanka, we serve clients such as schools, corporations, education providers, youth services, government bodies, charities, professional organizations and provide personalized career guidance for private clients.

Daraz platform, a subsidiary of Ali Baba will be launching its biggest sales pitch in Sri Lanka on 11th November providing an opportunity for online shoppers to participate in the world's largest online sale for the second time, Managing Director of Daraz, Rakhil Fernando said at a media conference in Colombo.

Alibaba which acquired Daraz in 2018 has recorded US$ 30 billion at its last sale in Alibaba group of which Sri Lanka's contribution was around LKR 400 million.

Daraz Sri Lanka has over 700 employees where they process over 15,000 packages every single day.

There are over seven hundred thousand (700,000) different items stockpiled for the Daraz launch on November 11 with discounted prices up to 80-85 percent on certain items to bank credit card holders, he disclosed.

2018 saw Daraz.lk introduce the largest online sale in the world to Sri Lanka, and they are ready to host it again this year. 11.11 campaign, one of the most anticipated online sales in the world will take place on the 11th of November, as the name suggests, on the Daraz platform.

Over the course of its three years in Sri Lanka, Daraz has grown its network of sellers resulting in one of the biggest assortments available online.

Compared to last year, the seller community has grown from 8,000 to almost 26,000 and with around a thousand joining every month.

This community is capable of providing 1 million products live on Daraz today, promising one of the largest 11.11. campaign experiences for online shoppers in Sri Lanka this year, he added.

Plantation stock prices in Sri Lanka were hammered following the government’s decision to increase the minimum wage of estate sector workers by 200 rupees to 1,000 rupees, amid a fall in Colombo stocks, provisional data showed.

Amid thin trading, Maskeliya Plantations share fell 8 percent to 9.10 rupees, while Balangoda Plantations fell 3.48 percent to 11.10 rupees and Kotagala Plantations, which had fallen as much as 5.80 percent in early trading, pared off with a 1.45 percent fall to 6.80 rupees at end of the day’s trade.

Of 21 plantation stocks being traded, 11 fell while 4 gained. The wage increase would hit the tea industry firms the hardest.

Plantation industry officials were seeking clarity over the government’s order to hike the minimum wage to 1,000 rupees. Usually plantation companies and trade unions negotiate wage revisions every two years.

Estates have been struggling to move the wage model to reflect productivity, instead of the current attendence-based model, where if a worker shows up to work for 20 days, they are paid the minimum wage.

Co-Cabinet Spokesperson and Plantations Minister Ramesh Pathirana said that plantation firms will be provided with free fertilizer, tax cuts and credit support to balance out the wage increase. (Economy Next)

Further strengthening the longstanding relations between Sri Lanka and Turkey, bilateral trade between both countries continues to grow.

“Both countries have regularised its dialogue and cooperation through the Turkey-Sri Lanka Joint Economic Commission.  

This provides a structured platform to develop and further advance the bilateral economic and technical partnership.

Diversifying and broadening our economic agenda is a priority for both Governments. Turkey is becoming one of Sri Lanka’s important trading partners,” Minister of Industry and Commerce Rishad Bathiudeen said.

Addressing the ‘96th Anniversary of the Proclamation of the Republic of Turkey’ celebrations held in Colombo, Minister Bathiudeen hinted that Turkey is no more a small trade partner of Sri Lanka.

”Turkey is becoming one of Sri Lanka’s important trading partners. The total bilateral trade turnover in 2018 was US$ 351.18 Million,” he added.

According to Sri Lanka Department of Commerce, total bilateral trade in 2017 was US $ 318 Mn, which means total trade between both countries has grown in 2018 (YoY) by 10.4% and in comparison to 2016, the 2018 trade has surged by a huge 57% (from US $ 224 Mn).

“Both countries are also formalising the legal framework for cooperation in sports, education, agriculture, SME development, customs and defence. We have also recognized the need to diversify our basket of exports to Turkey,” Bathiudeen noted.
In 2018, Sri Lanka’s exports to Turkey was at US $ 218.4 Mn. 75% of exports to Turkey in 2018 were Ceylon Tea (at US $ 163 Mn), followed by yarn (8%), apparel (3.5%), and rubber tyres (2%).

Atlas Axillia Co. (Private) Limited, Sri Lanka’s largest manufacturer and marketer of stationery and back-to-school supplies have been awarded the prestigious National Business Excellence Award 2019 in the “Manufacturing-Other Sector”. The award was presented at the National Business Excellence Awards 2019, which was held at the Grand Ballroom of the Hilton Colombo recently.

The event was graced by industry leaders from a variety of sectors along with other prominent personalities. The award was received on behalf of Atlas Axillia Co. (Private) Limited by Asitha Samaraweera, Managing Director, Viraj Jayasooriya, Director-Operations, and Lalani Weeraarachchi, Head of HR, respectively.

Speaking about the accolade, Asitha Samaraweera – Managing Director at Atlas Axillia Co. (Private) Limited said, “We are extremely proud and grateful to have received this very significant award at the National Business Excellence Awards 2019. The award is reflective of our excellence in corporate governance, capacity building, performance management, local and global market reach, corporate social responsibility, environmental responsibility and excellence in leadership, business and financial performance. The criteria, through which we have achieved excellence in these areas, were very critically evaluated in three stages by an expert panel of judges. Receiving this accolade positions our business and operational model as a benchmark for others to follow.”

The Development Lotteries Board (DLB) announced today that its 'Kotipathi Kapruka' lottery has been able to award the biggest jackpot in Sri Lanka . A lucky winner from Ratnapura has won the final jackpot of LKR 145,029,213.00 in the 513th draw of of the lottery on October 27.

This winning lottery ticket has been sold by DLB agent, Ms. R. Priyanthi of Godakawela.

Although the Kotipathi Kapruka Lottery was initially introduced to the market in 2016,  it was relaunched last August with an attractive look and DLB is proud to announce that within a short period of 3 years, a lucky person has been able to win the largest jackpot awarded in Sri Lanka's history, a statement from the DLB said.

Kotipathi Kapruka which was initially named as Kotipathi Shanida has been able to produce 08 jackpot winners to date and has disbursed a sum of LKR 751 million as prize money.

"While wishing all our customers the best of luck in their future purchases of DLB lotteries, we hope that they too will win the jackpot and the DLB expects to offer better and innovative lotteries in the future too", the statement said.

President of China Media Group, Shen Haixiong, delivering a New Year message to overseas audiences stressed that all media organisations should adhere to the principle of reporting on major events in a comprehensive, objective, and impartial way.

"Over the past year, I have talked with executives from over 150 international media organizations, including the Associated Press, Reuters, Agence France Presse, and the British Broadcasting Corporation. We have found more and more common ground, and expanded our circle of friends.

That said, I regret to see that some influential sections of the Western media have seemed to suffer from “selective blindness” when covering major events related to China. Some have even published hearsay and rumors as news, resulting in distortions and inaccuracies. Some of these stories are as fanciful as novels.

We all believe that facts are the lifeblood of journalism, and that relying on imagination to produce news does serious harm to the media’s credibility with the public. Every executive of the news industry should be vigilant in adhering to the ethics of our profession," he said.
Full statement by Mr. Shen Haixiong is found below:

2020 is an auspicious and happy number. This is because its Chinese pronunciation has the same ring as “Ai Ni Ai Ni,” meaning “love you love you.” On this New Year’s Day, I would like to extend to you my best wishes from Beijing on behalf of China Media Group.
The history of humanity is a record of one significant moment after another. 2019 had many such moments, which have become our indelible memories.
On October 1st, we celebrated the 70th anniversary of the founding of the People’s Republic of China. Together, we enjoyed audio-visual feasts that charted the extraordinary journey of the People’s Republic over the past 70 years, through works produced by China Media Group such as the multilingual documentary “Historic Journey”, and the 4K ultra-high definition film, “When China Wows the World: The 2019 Grand Military Parade”, made from our live broadcasts.

I have also received many sincere wishes sent by you, our friends around the world. I remember getting an email from Italian China expert, Francesco Maringio, in which he said, “I would like to applaud the brilliant achievements made in the 70 years since the founding of the People’s Republic of China. I think the Chinese people have every reason to be proud.”
Over the past year, we have tried hard to capture each of China’s marvelous moments as it made its way forward. We’ve strived to present a true, multi-dimensional, and panoramic view of China in this new era.
Using the latest broadcasting technology, such as 5G networks, 4K and 8K video, and artificial intelligence, we brought you coverage of major events such as the second Belt and Road Forum for International Cooperation, the Conference on Dialogue of Asian Civilizations, and the celebration of the 20th anniversary of Macao’s return to China.
Our multilingual video series, including “Classics Quoted by Xi” and “Every Treasure Tells a Story”, opened one window after another for you to gain an in-depth understanding of China’s long history and its rich culture, as well as its modern-day values and ideas. We also hosted innovative interactive events to mark the 70th anniversary of the founding of the People’s Republic and 70 years of diplomatic ties between China and Russia, and we introduced you to our new livestreaming stars. By reaching out to our audience in this way, we have gained even more overseas friends who are interested in China.
Although China Media Group was established only two years ago, we are fully aware that in the Internet age, it’s not enough to just make progress. If you don’t move quickly, you’ll soon fall behind.

Bearing in mind President Xi Jinping’s mandate to innovate and to make good use of the opportunities provided by new media, we are speeding up our efforts to become a new kind of world-class mainstream media organization, one that is driven by innovation.

In 2019, we opened China’s only national key laboratory for ultra-high definition video and audio. We launched a user-friendly 5G audio-visual new media platform called “Yangshipin”. And we began to air more than 200 new high-quality programs, as we strived to provide you with bright, exciting, and inspiring productions.
We have always adhered to the principle of reporting on major events in a comprehensive, objective, and impartial way. As the world’s largest international media organization, we conduct exchanges with our counterparts at home and abroad on the basis of equality and with an open-minded and cooperative attitude.
Over the past year, I have talked with executives from over 150 international media organizations, including the Associated Press, Reuters, Agence France Presse, and the British Broadcasting Corporation. We have found more and more common ground, and expanded our circle of friends.
That said, I regret to see that some influential sections of the Western media have seemed to suffer from “selective blindness” when covering major events related to China. Some have even published hearsay and rumors as news, resulting in distortions and inaccuracies. Some of these stories are as fanciful as novels.
We all believe that facts are the lifeblood of journalism, and that relying on imagination to produce news does serious harm to the media’s credibility with the public. Every executive of the news industry should be vigilant in adhering to the ethics of our profession.
As the 18th century British essayist William Hazlitt once said, “Prejudice is the child of ignorance.” In our complex and fast-changing world, pursuing truth and eliminating prejudice is commendable work. China Media Group will continue to take an objective and impartial stand to report the truth to the international community, and to be a voice of justice in the world.
More than 1,200 years ago, the Tang Dynasty poet, Zhang Jiuling, wrote, “Distance cannot separate true friends who feel close even though they are thousands of leagues apart.”

We’re lucky to be able to meet and to know each other on this planet. When I visited Brazil and Argentina, I was delighted to see that the jacaranda and bougainvillea they have there are the same as the ones I saw when I worked in Guangdong Province, and our catbirds have the same call. In Italy and Spain, I tried rice wine and ham that taste similar to what you can find in my hometown in Zhejiang Province. In these moments, the idea of the “global village” feels so concrete and real. There’s no reason why the residents of our global village shouldn’t communicate and mingle.

I’ve always believed that exchanges between members of the media can remove misunderstandings and prejudice, and turn strangers into friends. 2020 marks the end of the decisive phase of the work to build China into a moderately prosperous society in all respects.

It’s also the year when our country, with its population of 1.4 billion, will eliminate absolute poverty, an achievement that will be unprecedented in human history. By upholding a professional standard defined by constant improvement and the pursuit of perfection, China Media Group will continue to record the significant moments of our time, as it brings you the stories that matter from China and the rest of the world, and provides more positive energy for building a community with a shared future for humanity.

May there be love everywhere in the world in 2020!
I give my best wishes to China, to the world, and to all of you!

Another phase of the series of medical camps hold by DLB under the theme 'DLB sathkara' for the benefit of its Sales Agents and Sales Assistants, has been successfully came to the end in Hambantota recently.

This has been held for the benefit of the Sales Agents and Sales Assistants of Hambantota district and it marked the seventh event of the series. This camp was held on 13th October and nearly 300 came to get the service of the camp. The camp conducted medical tests and further offered spectacles to needy people along with other medicine.

In the meantime tricycles were also awarded to three differently able sales assistants and further garden umbrellas were provided to sales assistants whilst the sales agents were provided with bicycles.

Mr. Sena Suriyapperuma, Chairman of DLB , Mr. Chanaka Dodangoda, Deputy General Manager, Mr. Sunil Jayarathna, Assistant General Manager (Sales) , Mr. Mahinda Dissanayaka, District, Zonal Manager of Hambantota and other guests have participated in the event.

Dialog Axiata Group and Daraz Sri Lanka have entered into a strategic partnership to collaborate on digital commerce.

As the first step in this partnership, Daraz Sri Lanka is to integrate the management and business operations of wOw.lk, the online retail platform owned by Dialog Axiata Group. The integration will help Daraz to further expand and improve its e-commerce presence in Sri Lanka. Effective December 1st, visitors to wOw.lk will be re-directed to Daraz.lk enabling greater access to products and services through the fast-growing online retail platform, Daraz.lk. That said, existing wOw.lk customers who had purchased products from its platform will continue to enjoy the warranty structure offered to them during their point of purchase.

Over the past 7 years wOw.lk has been instrumental in establishing Sri Lanka’s e-commerce presence  and  with this new partnership in the making, Dialog customers will benefit from Daraz as an exclusive online shopping destination.

“The integration of Dialog’s e-commerce operation gives Daraz a strong position in the market and allows us to drive growth more aggressively while giving our customers nothing but the best in online shopping. wOw.lk is one of the pioneers of e-commerce in Sri Lanka, and we plan to build on that legacy through Daraz.lk” said Rakhil Fernando, Managing Director of Daraz.

The marketplace model adopted by Daraz has proven to be successful for both shoppers and seller partners, providing greater visibility for brands and a wider range of products to shop from. Daraz’s affiliation with the global e-commerce success, Alibaba, has ensured that timely and proven technology is passed down to an online market as young as Sri Lanka. Over the 3 years of operations in the island, Daraz.lk has created a leveling ground for international brands as well as SME’s to be part of their journey in extending the online retail market. The latest development will result in an amalgamation of more brands, thus adding to the present 800,000 plus product assortment available on Daraz.

Commenting on the partnership Dr Nushad Perera, Chief Digital Services Officer of Dialog Axiata PLC stated, “Both our organizations are strongly committed to building our country’s digital infrastructure and this partnership will further enhance access to affordable digital commerce for every Sri Lankan”.

The Finance Company PLC (TFC), a Finance Company licensed under the Finance Business Act No. 42 of 2011 (FBA) was severely impacted by the failure ofa number of financial institutions within the Ceylinco Group in 2008.

Since then, the financial status of the company deteriorated gradually, leading to a severe liquidity crisis. Although, several efforts were made to identify prospective investors and to restructure the company, such efforts have not materialized to a satisfactory level yet.

The Monetary Board of the Central Bank of Sri Lanka (CBSL) having considered the weak financial performances of TFC,tooka number of regulatory actions under the provisions of FBA, with effect from 15th February 2019, with a view to safeguard the interests of the depositors and other stakeholders of the company. The regulatory measures included suspension of accepting new deposits, withdrawal of deposits and disbursement of loans and advances to facilitate the restructuring process of TFC.The primary objective of the regulatory actions was to identify a potential investor for TFC within a reasonable time period. However, TFC has not been able to find an acceptable investor to date to revive the company.

It is important to understand that the revival of TFC entirely depends on the availability of an acceptable investor who is willing to invest in the equity capital of the company. Accordingly,the Monetary Board instructed TFC to call Expressions of Interest (EOIs) from potential investors and to request such investors to submit their Business Restructuring Proposals to revive TFC.

However, TFC was not able to receive an acceptable EOI from any credible investor along with evidence for the availability of funds. It is also noteworthy to mention that the company is incurring a monthly loss of around Rs 200mn. Hence, it is obvious that operation of the company in this manner will be further detrimental to the interest of the depositors and other stakeholders.

Accordingly, the Monetary Board in terms of the powers vested under the FBA, decided to issue a Notice of Cancellation of the License issued to TFC, with effect from 23rd October 2019 to safeguard the interests of the depositors and other creditors. Any credible investor can still submit an acceptable EOI along with proof of funds for capital infusion and a Business Restructuring Plan for the consideration of TFC and CBSL.

Interest due for deposits will be paid continuously to the depositors as per the CBSL directions. At the same time, all borrowers of the company are strictly advised to pay their dues. Such borrowers are encouraged to pay their dues via bank accounts designated by TFC or to the nearest TFC branch. They should also ensure to obtain receipts for the repayments they make.
 
Attention is also drawn to the fact that the deposit insurance and liquidity support scheme will also safeguard the interest of all depositors to a maximum of Rs.600,000/- per depositor, which will cover 94 percent of the TFC depositors in full. Therefore, the depositors are kindly requested to cooperate with the CBSL.

The depositors may contact the Department of Supervision on Non-Bank Financial Institutions of the Central Bank of Sri Lanka through 0112 477 573, 0112 477 229, 0112 398646, 0112 398733 or 0112 477 504 and This email address is being protected from spambots. You need JavaScript enabled to view it. for further clarifications.