Year 2009 from the International Chamber of Commerce Sri Lanka, on Account of Sub Renting Ground ﬂoor of the Ofﬁce Occupied by the FCCISL

CONTENTS

Vision and Mission 1 Our Objectives 2 Our Services, Our Core Competencies 3 Message from the President 4 Board of Directors 7 Governance 10 Our Council 11 Our Past Presidents, Vice-Presidents and Secretaries General 16 Our Members 21 Our Members Network 26 Calendar of Events 2009 Highlights 27 Projects and Services Membership Services and Regional Chamber Development 32 FCCISL Training 40 Special Projects 47 Small and Medium Enterprise Development 52 International Affairs 63 Human Resource Management and Administration 71 Finance, Monitoring and Evaluation 75 Annual Report of the Board of Directors 77

FINANCIAL REPORTS Independent Auditor’s Report 80 Income Statement 81 Balance Sheet 82 Cash Flow Statement 83 Statement of Changes in Equity 84 Notes to Financial Statements 85

Notice of Meeting 97 Form of Proxy 98 Our People Corporate Information

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 VISION

“We, the apex body of chambers and associations of commerce and industry, champion the promotion of business excellence in Sri Lanka” MISSION

“We make Sri Lankan businesses competitive locally and globally, providing comprehensive and innovative business support services in a socially and environmentally responsible manner, while adding optimal value to stakeholders”

FCCISL is the rallying point for free enterprises in Sri Lanka. We have empowered Sri Lankan businesses in the changing times, to enhance their competitiveness and their national and global reach.

With a nationwide membership of 50 chambers of commerce and business associations, FCCISL espouses the shared vision of Sri Lankan businesses and speaks directly and indirectly to over 12,500 business units. We have an expanding membership of enterprises drawn from the large, medium, small and micro segments of manufacturing, trade and services.

Set up in 1973, FCCISL pioneered the establishment of regional chambers of commerce in Sri Lanka, establishing 20 of the 29 such chambers functioning today. It is the largest and most representative apex chamber body in the country.

As an umbrella organization of the private sector, FCCISL has been playing a key role in promoting business and industry in the country by providing its members with a wide spectrum of services ranging from advisory, lobbying, consultative and promotional services to information sharing.

FCCISL’s commitment, drive and mission continue, always pursuing a new agenda in the ever-changing economic landscape of Sri Lanka.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 OUR OBJECTIVES

FCCISL is guided by the following key objectives that have undoubtedly contributed to the success it has achieved thus far. What’s more, the organization has made a conscious effort to review these objectives at regular intervals and take appropriate action where necessary, so that it can sustain the momentum and growth it has brought to the business and industry sectors of this country.

l Promote the interests of its federated units, both trade & industrial associations and chamber bodies

l Aid, stimulate and play a catalytic role in the business and industrial development of the country

l Protect, encourage and safeguard the cause of the private sector through effective participation in the process of consultation and interaction with the government, ministerial consultative committees and other inter-related bodies or agencies

l Provide advisory services to the government, lobby and participate in the formulation and execution of business and industry related policies, acts and programmes

l Assist in the creation of an organized sector in Sri Lanka through a network of chambers of commerce and industry and commodity/sectoral associations

l Provide up-to-date information services to the businesses and government and the community at large

l Foster cooperation with related national and foreign organizations

The FCCISL has, over the years, earned a reputation as a responsible organization that plays a genuine and progressive role to uplift the business and industry sectors of the country.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 OUR SERVICES l Small and Medium Enterprise Development l Regional Chamber Development l Economic Affairs and Policy Support l Industrial Relations l International Affairs l Human Resources Development l Training and Consultancy l Membership Services l Foreign Trade and Export Promotion l Networking and Event Management l Project Management Services OUR CORE COMPETENCIES l Wide experience and expertise in diverse ﬁelds l Quality service provider l Continuous government-industry interface for evolving a shared vision on economic matters l Rallying point for business diplomacy for promoting regional and international trade and investment l Highly trained, experienced and accomplished, multi-disciplinary, multi-lingual intellectual capital at our Secretariat l State-of-the-art ofﬁce infrastructure for conferences, board meetings and business promotions l Professional approach for evolving quick solutions to economic and industrial issues l Institutionalized services in quality assurance, energy auditing, sustainable and environmental issues, human resources, industrial relations and small and medium enterprise development l Widest outreach in the private sector with 29 district and provincial based chambers of commerce l One-stop-shop for promotion of small and medium enterprises l A longstanding track record of formulating and implementing donor supported business and economic development programmes 3 l Reliable and competent partner in public-private partnership

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 MESSAGE FROM THE PRESIDENT

Dear Members, its full potential is harnessed. brought down to 3.4%, and the This is not an easy task, but our exchange rates were maintained Following the defeat of organization, with its scope and at relatively stable levels. The terrorism at the banks of reach, can do much to overcome benchmark interest rate saw Nandi Kadal, Sri Lanka stands the challenges. a sharp decrease to 7.5%. at the cusp of a momentous Foreign exchange remittances new era. Peace has returned Given the country’s recent by our expatriate community after three long decades, and economic performance, there grew to US$ 3.3 billion, while with it a renewed sense of is good reason to be hopeful. timely government interventions purpose. There is optimism Despite the financial, fuel in the financial and fiscal everywhere. The opportunities and food crises around the markets had a positive impact at the macro-economic level. for the growth of business are world, which turned into a immense. We live in a land of full-blown economic recession, As expected, the country’s great potential, and the FCCISL our economy demonstrated tourism industry received a – as the apex body representing its resilience by recording a great boost with the defeat the chambers of trade and 3.5% growth in 2009. Even of terrorism. It grew by 49% commerce – has an important more remarkably, it achieved during the year, compared to an role to play. a growth of 6.2% in the final average of just 14% in the Asia- quarter of the year. This, in my opinion, is the beginning of a Pacific region. The accelerated economic new era of economic prosperity. development now underway Meanwhile, the infrastructural brings with it a promise of Other indications are also base for an economic takeoff is prosperity. We must ensure that promising. Inflation was being laid. This is evident in the

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 large-scale investment in ports, any other organization in the these centres, which have airports, highway networks, private sector. Today, we are played a notable role in skills power, railways, irrigation and present in every region via this development. They have water supply. It has created extensive network, and so can trained many individuals an environment conducive harness its strengths to spur the in construction industry- to attract both foreign and economy forward. related fields such as masonry, domestic investment. Also, the building painting, carpentry, proposed reforms in the spheres We launched a number of welding, electrical wiring and of education, health and social important initiatives in 2009. air-conditioning. Those who safety will, hopefully, lead to The most ambitious among successfully completed their significant strides in the progress these is the Chamber-Network training have received locally and well-being of our people. Engagement in Economic and internationally recognized Rehabilitation (CHEER) certificates. It is imperative that There are other encouraging project. This Rs.266 million we enhance the expertise of our developments. Among these is project, which focuses on workers, so that they receive a the decision of the International rehabilitation efforts in the higher pay here and abroad. Monetary Fund (IMF) to help North and East, is funded by place the country’s macro- the European Union. Our main In 2009, the Federation economic fundamentals on a partner in this initiative is the organized the Sri Lankan sound footing by granting BOP reputed INGO, Oxfam GB. Entrepreneur of the Year support of US$ 2.6 billion under event for the 14th consecutive a stand-by arrangement facility. During the year, we also year. This event, which was partnered with Oxfam GB on designed to recognize, reward We hope that the government another humanitarian project. and motivate the country’s will, as a matter of priority, It entails us working together entrepreneurs, was a great initiate reforms in certain to reduce the vulnerability of success. Aimed at promoting important areas. These include civilians affected by the conflict. innovative entrepreneurship the higher education system, We will collaborate to reduce and good business practices, the rigid and complex labour the risk of disease and improve the Sri Lankan Entrepreneur laws, the public service, the the unsanitary conditions in the of the Year Award is the most tax system and the investment camps for internally displaced prestigious honour bestowed for regime. Assistance to the Small persons. entrepreneurship in the country. & Medium Enterprises (SMEs) is also necessary. Other areas Training continued to be I believe that this awards scheme that need greater emphasis are an important aspect of the has done much to encourage vocational training, agriculture Federation’s activities. Our our home-grown entrepreneurs. and agro-processing. Chamber Academies upgraded Some of them have transformed the skills of entrepreneurs, their businesses into textbook Sri Lanka is fortunate in employees and job-seekers in examples of success stories. possessing the natural resources various regions. They conducted They have been able to showcase and human capital necessary for a range of certificate and their products internationally, progress. In fact, I believe that diploma courses that covered and have become world-class if the proper government policy essential theoretical and players. framework is in place, we can practical knowledge. achieve an economic growth of We also continued to focus 8-10%. Meanwhile, the Handwerk on the Small and Medium Centres – which we run in Enterprises (SMEs). We have As I stated earlier, the collaboration with the National for many years emphasized that Federation has an important Construction Association of Sri the SME sector is the backbone role to play. With 50 chambers Lanka and Handwerkskammer of the national economy. Many of trade & industry and business Koblenz, Germany – were SMEs have today become associations affiliated with restructured as profit making prominent players in business us, and over 12,500 member entities. We also increased largely due to the advice and businesses, we can do more than the intake of trainees to

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 support extended by our and the signing of MoUs with with the objective of empowering Small and Medium Enterprise foreign chambers. the farmer as an entrepreneur in Development (SMED) division. his own right. Such an initiative I must also mention our internal will ensure that consumers get a Our Regional Chambers Sri restructuring program, which better product at a better price. Lanka (RCSL) program will commenced in August this year. certainly go a long way in I truly believe it will transform I also believe we must take a empowering the SMEs. It aims the Federation into a more more proactive approach in to create a sustainable regional vibrant, efficient and cost- rebuilding the lives shattered chamber movement that can effective organization. during the long drawn-out war. cater to the changing needs of Our aim is to make all units Our partnership with Oxfam the private sector, particularly self-sustaining and income- GB to help the people of the the numerous SMEs in the generating, rather than relying North and East has proved very outstations. Key areas of the on donor funds. promising, but more needs to be program are the development done. Ideally, our future efforts of organizational capacities Since the Federation was in these areas should focus on and professional competencies, established 37 years ago, it has large-scale vocational training lobbying and policy advocacy, accumulated much experience projects. This will enable the service development, income in all aspects of commerce war-affected people, including generation and peace building. and industry. If we take into the ex-LTTE combatants, to account the collective knowledge find sustainable employment It is pertinent to mention here and expertise of our member and contribute to society as that there is an imbalance chambers as well, then this part of the new Sri Lanka. Such between the development taking experience would be immense. projects are imperative to build place in the Western Province Furthermore, we have always ethnic harmony and achieve a and the other regions. This been in touch with the ground lasting peace. situation needs to be remedied realities. if we are to avoid social We must also create a greater rapport between the business instability. We must never again It is by acting as a forum for communities of the North and be confronted with the spectre the expression of diverse views South, thereby facilitating trade of another youth uprising. that we have been able to make links. This will not be a difficult The private sector needs to informed decisions. This is task, for commerce speaks a engage with the state authorities why the government always common language and breaks as well as international considers our opinions seriously through cultural barriers. organizations and donors to when formulating policy. In In conclusion, I must state that ensure that development takes fact, our recommendations the Federation will continue to place more evenly in all areas. are often incorporated into remain a dynamic organization. Multilateral institutions such the budget. Over the years, we With our professional approach, as the International Monetary have built a strong rapport with we will expand our scope, reach Fund (IMF) and the Asian influential government officials and influence to steer the growth Development Bank (ADB) can in important institutions, of business. We will harness the also play an important role. including the Central Bank and inherent strengths and potential the Treasury. Our Key Person’s of our country. Meanwhile, the Federation Forum – which was initiated to continues to follow a dynamic maintain a dialogue with senior I wish to thank the Board of approach on international decision makers – has proved Directors, the Executive Council trade affairs. We have extensive very useful in this regard. and staff of the Federation for international connections, and all the support extended to me. have used them for the benefit Looking ahead, I believe the I must also acknowledge the of local businesses. Among our Federation has to play a greater contribution of our donors, role in the development of activities in this sphere are the whose assistance enabled us market-oriented agricultural facilitation of trade delegations to implement our projects so practices. This must be done and missions, trade promotion successfully.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 BOARD OF DIRECTORS

1. Kosala Wickramanayake 6 4 2 1 3 5 7 2. Tissa Jayaweera 3. Nawaz Rajabdeen 4. Ajith Wattuhewa 5. S T S Arulananthan 6. Kumar Mallimaratchi 7. Nimal Perera

Kosala Wickramanayake a Director of Sterling Jersey Ltd, Lanka Ceramic Ltd, Noritake President Airport and Aviation Authority, Lanka Porcelain (Pvt) Ltd, Lanka Puthra Development Bank, Lanka Walltile Ltd, Lanka Tile Kosala Wickramanayake was Sri Lanka Standards Institution Ltd, Lanka Refractories Ltd, elected as the 15th President and the Sri Lanka Convention ITMIN Ltd, Director / alternate of the Federation on 15th Bureau. Chairman of the Board JAIC September 2008 and has served Lanka (Pvt) Ltd and represented in the Executive Council of the Tissa Jayaweera as alternate Director in many Federation since 1995. Kosala Senior Vice President other companies. He has over 36 is a graduate of Economics and years management experience. Business Management from the Tissa Jayaweera, a member Tissa is the Present Chairman USA. He was a Past President of of the Council since 1996 was of the International Chamber of the American Alumni Association. elected the Senior Vice President Commerce Sri Lanka, President of He has thirty six years experience and appointed to the Board in the Sri Lanka Bangladesh Business in the chamber movement since October 2008. Tissa is currently Council, Board Member of SMED he joined the Chamber of Small the Chairman / CEO, Chairman, and past President of Numerous Industries in 1974 and became the Director, Vice President, Adviser of International Organizations President in 1996. He is the Present many National and Multinational represented in Sri Lanka. Chairman of SMED and CEO of companies. He was the former Kosala Enterprises (Pvt) Ltd, and Chairman / Managing Director,

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 of Commerce and Industry of Sri Ajith Wattuhewa Lanka (NCCISL) in the early 1980s Director and was the Senior Vice President of the Chamber in 1990. He is Ajith Wattuhewa was appointed on several boards of the trade to the Board in 2008. He is the chambers with over 25 years of Chairman / Managing Director experience in the industry. He is of Central Pre Cured Retreads the Vice President of the Chamber (Pvt) Ltd and Asian International of Construction Industry of Sri Promoters (Pvt) Ltd. Ajith holds Lanka and the Vice President of a National Diploma in Technology the Confederation of SAARC Apex in Polymer Technology with Kumar Mallimaratchi MIH Body in Sri Lanka. He is also the specialization in tyre retreading Vice President National Director of UNIDO and and ﬁbre glass boat building from Member of the FCCISL and SMED the University of Moratuwa. With Kumar Mallimaratchi was Boards. experience in chamber activities elected as the Vice President He is the Director of the Export over 14 years, Ajith initiated of the Federation of Chambers Development Board (EDB) the formation of Kalutara and of Commerce and Industry of under the Ministry of Export Gampaha District chambers and Sri Lanka and appointed to the Development, International Trade the provincial chamber in Uva. Board in October 2008. He is a and Commerce and Director of He was the Founder Chairman of graduate in Hotel Management the Insurance Board of Sri Lanka the Chamber of Commerce and from the International School of (IBSL). Industry of Uva Province in 1996 Tourism in Italy, a life member and presently is the Immediate of the Cornell Hotel Society USA S T S Arulananthan J.P. Past Chairman of the Chamber. and a member of the Institute of Director Hospitality (United Kingdom). Nimal Perera He was the former President of S T S Arulananthan was appointed Director the Tourist Hotels Association of to the Board in 2008 and has been Sri Lanka, and the Chairman of a senior member of the Council Nimal Perera was appointed the Ceylon Hotels Corporation, of the Federation for over 16 a Director to the Federation Associated Hotels and United years since 1993. He started Board in 2008. Nimal, a textile Hotels Company. He is the present his professional carrier at Leela industrialist is the Managing Chairman of Tourism Training Group of Company in 1961 and is Director of NTS Interlining (Pvt) Centre, Managing Director of presently the Chairman of Leela Ltd and the Chairman/Managing Associated Hotels Company and Associates (Pvt) Ltd, Ramson Director of Nids Fabric (Pvt) Leisure Solutions Plus Company. Hardware Group of Companies and Ltd. Nimal was the former He is also a Board Member of Greenlands Hotel (Pvt) Ltd. He Director/CEO of Kuruwita Textile SMED and member of Statutory has over 48 years of management Mills PLC, a subsidiary of the Accounting Standards Committee experience in hardware, hotels Brandix Group. He has held of the Institute of Chartered and the social services sectors. Past Chairmanship of the Ceylon Accountants of Sri Lanka. Arulananthan is the President of National Chamber of Industries the Kataragama Pilgrims Thondar (CNCI) and Joint Business Forum Nawaz Rajabdeen Society, Lanka Buddhist Hindu (JBIZ). He is on the Board of Sri Immediate Past President Friendship Association and Ceylon Lanka National Arbitration Centre Hardware Merchants’ Association. and IND-EXPO Certiﬁcation (Pvt) Nawaz Rajabdeen is the Immediate He is the Deputy Chairman/ Ltd. He is the Vice President of Past President of the FCCISL. Trustee of Colombo Hindu College Japan Sri Lanka Technical and He served as the President for 3 Development Trust and Trustee Cultural Association (JASTECA). years from 2005 to 2008. He is the of Vishva Hindu Parishad of Chairman / Managing Director of New Delhi and is on the Board of Rajabdeen Group of Companies. Governors of Sri Lanka National He joined the National Chamber Arbitration Centre.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 GOVERNANCE – FCCISL Board, Council and Secretariat

The governance of the Federation The third tier relates to the terms of its size, strength and today is based on a three-tiered administration of the affairs and diversity of services. Its status structure. This was the resultant the Secretariat of the Federation rests on its extensive service to the constitutional changes headed by a Secretary General. base, its professionalism and introduced with effect from He is responsible for the conduct its acknowledged contribution September 2008. of the business of the Federation towards the progress of the private under the directions of the Board enterprise system of this nation. In At the pinnacle of this structure of Directors. a crux, it is not only a committed is the Board of Directors headed driver of economic ideals enshrined by the President, the Senior Vice The synthesis of the three principal in its Articles of Association, but President, the Vice President, the components of governance of the also from a macro perspective, a Immediate Past President and Federation was intended to bring promoter of the concepts of the three persons appointed by the about more effective controls in the freedom of enterprise. Executive Council to represent affairs of the body and its widely National Chambers, Regional dispersed functional areas. Chambers, Associations and Institutions. It is needless to stress that these structural changes have The second or the representative strengthened and added greater tier is the Executive Council which accountability to the Federation. constitutionally provides for one representative and one alternate The Federation of Chambers from each Institutional member of of Commerce and Industry of the Federation to be represented Sri Lanka stands clearly above on it. related bodies in this country in

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 OUR COUNCIL

10 11 9 8 7 12 4 5 1 3 6

1. Granwille Perera 7. Samantha Kumarasinghe 2. Rasika Rajapaksa 8. Ajith Wattuhewa 3. Kosala Wickramanayake 9. N Sunthareasan 4. Rohan de Silva 10. M Faizer Mackeen 12 5. K Chandrasekaran 11. W M P Aponso 6. Tissa Jayaweera 12. S T S Arulananthan

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 14 10 15 12 13 16 11 9 5 7 6 8 4 3 2 1

1. D N J Chandrakumara 7. Sarath Hapuarachchi 13. Darshaka Rupasinghe 2. Vidyani Hettigoda 8. Laxman Walpitagamage 14. Wasantha Mallikarachi 3. Thilak Seneviratne 9. Sarath Kahapalaarachchi 15. W K H Wegapitiya 4. Kumar Mallimaratchi 10. P Wijesekera 16. Suriyakumara Wijayaratne 5. Srilal Mittapala 11. Shantha de Silva 13 6. Shiran Karunaratne 12. Nimal Weerasekera

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 OUR COUNCIL

American Chamber of Central Province Exporters’ Jaffna Women’s Chamber Commerce in Sri Lanka Chamber of Commerce, Industry and Mr. Chullante Jayasuriya Mr. Jeewake Swarnasinghe Agribusiness Ms. Moji Akingbade Mr. Jagath Dissanayake Ms. C Rubendra Ms. A M Selvarajah Ampara District Chamber of Chamber of Commerce Commerce and Industry and Industries Trincomalee Kalutara District Chamber Mr. Daya Gamage District of Commerce, Industry and Mr. Thilak Seneviratne Mr. R Rajarammohan Agriculture Mr. K Thiruchelvam Mr. Sarath Hapuarachchi Anuradhapura District Mr. Sarath Kahapalaarachchi Chamber of Commerce, Chamber of Commerce and Industry and Agriculture Industry of Uva Province Kilinochchi District Chamber Mr. Amal Piyathilake Mr. Ajith Wattuhewa of Commerce, Industry and Mr. P B Dissanayake Mr. D N J Chandrakumara Agriculture Mr. M Ignetious Association of Licensed Chamber of Commerce and Mr. S Sriranganathan Foreign Employment Industry of Yarlpanam Agencies Mr. C Thangarajah Kurunegala District Women’s Mr. W M P Aponso Mr. C Shanmugalingam Chamber of Commerce, Mr. M Faizer Mackeen Industry and Agribusiness Chamber of Young Lankan Ms. Nilmini Tissera Batticaloa District Chamber Entrepreneurs Ms. Yamuna Rajapakse of Commerce, Industry and Mr. WKH Wegapitiya Agriculture Mr. Samantha Kumarasinghe Lanka Confectionery Mr. N Suntharesan Manufacturers’ Association Mr. M H M Naleem Galle District Chamber of Mr. Quintus Perera Commerce & Industries Mr. Indika Abeyratne Business Chamber of Mr. Suriyakumara Wijayaratne Commerce Mr. Lakshman Walpitagamage Mannar District Chamber Mr. Shabir A Gulamhusein of Commerce, Industry and Mr. Asoka G Dharmawardane Galle District Women Agriculture Entrepreneurs’ Chamber Mr. S Rex Culas Central Province Women’s Ms. Kamala Uyanage Mr. T P Sinnathurai Chamber of Small Industry Ms. M W Irangani and Commerce Matale District Chamber of Ms. Shirley Jayawardana Hambantota District Commerce, Industry and Ms. Rosita Samarajeewa Chamber of Commerce Agriculture Mr. M Azmi Thassim Mr. G N Weligamage Ceylon Hardware Merchants’ Mr. Priyankara Wickramasooriya Mr. Shantha de Silva Association Mr. S T S Arulananthan Institute of Personnel Matara District Chamber of Mr. H M Jayaweera Management Sri Lanka Commerce and Industry Mr. Lalith Wijetunga Mr. Raja Hewabowala Ceylon National Chamber of Mr. Jayantha Jayaratne Mr. H D Wijayananda Industries Mr. Nimal Perera International Chamber of Matara District Women’s Mr. A K Ratnaraja Commerce in Sri Lanka Chamber of Commerce and Mr. Granwille Perera Industry Chamber of Commerce and Mr. Tissa Jayaweera Ms. Wimali Ratnayake Industry of Central Province Ms. Dhammika Uyangoda Mr. W A Warnakula Mr. P Wijesekera

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Moneragala District Chamber Software Exporters of Commerce, Industry and Association Agriculture Mr. Mano Sekeram Mr. Sanjaya de Silva Mr. L Jayasinghe Sri Lanka Association of Printers Mullaitivu District Chamber Ms. Darani Karunaratne of Commerce, Industry and Mr. Dinesh Kulatunga Agriculture Late Mr. R Chandramohan Sri Lanka Chamber of Small and Medium Industries National Chamber of Mr. Kosala Wickramanayeke Handicrafts of Sri Lanka Mr. Rohan de Silva Mr. M K R Thilakaratne Ms. Manel Madawala Sri Lanka Fruit and Vegetable Producers’, National Construction Processors’ and Association of Sri Lanka Exporters’ Association Mr. Patrick Jayawardena Mr. Ismath Mohamed Mr. Saliya Kaluarachchi Mr. Zuraish Hashim

Nuwara Eliya District Sri Lanka Gem and Jewellery Chamber of Commerce, Association Industry and Agriculture Deshabandu Macky Hashim Mr. Gopal Rasaiah Mr. A Akram Mansoor Mr. M P Stephen Sri Lanka Institute of Polonnaruwa District Marketing Chamber of Commerce, Mr. Nimal Weerasekera Industry and Agriculture Mr. Wasantha Mallikarachchi Mr. P H G Dharmasiri Mr. G D Sanath Priyantha Tourist Hotels Association of Sri Lanka Private Tea Factory Owners’ Mr. Kumar Mallimaratchi Association Mr. Srilal Mittapala Mr. Lalith Liyanage Mr. Leonard Jayasinghe Vavuniya District Chamber of Commerce, Industry and Protected Agriculture Agriculture Entrepreneurs’ Association Mr. V Sothinathan of Sri Lanka Mr. A X R Carvalho Mr. R S Wijesekara Wayamba Chamber of Puttalam District Chamber Commerce and Industry of Commerce, Industry Mr. Gamini Senanayake and Agribusiness Mr. T M Razeek Mr. R A Shiran Karunaratne Mr. Dhammika Hapuarachchige Women’s Chamber of Industry and Commerce Sabaragamuwa Province Chamber Ms. Ramya Weerakoon of Commerce and Industry Ms. Chamarie Maelge Mr. Darshaka Rupasinghe Mr. Rasika Rajapaksa

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Our Past Presidents, Vice Presidents and Secretaries General

Term of Ofﬁce President and the Vice Presidents and the Secretaries Member body represented Member body represented General

1973/1974 Mr. P A Silva Mr. John Rodrigo / Mr. H R Fernando Mr. T Seneviratne (The National Chamber of Mr. Mallory E Wijesinghe Commerce of Sri Lanka) (Ceylon Chamber of Mr. N U Jayawardena Commerce) Mr. V L Wirasinha (The Ceylon Chamber of Commerce) 1974/1975 Mr. H E P de Mel Mr. John Rodrigo / Mr. Mallory E Wijesinghe (The Ceylon National Chamber Mr. T Seneviratne (Ceylon Chamber of of Industries) Commerce) Mr. H R Fernando (The National Chamber of Commerce of Sri Lanka) 1975/1976 Mr. H E P de Mel Mr. John Rodrigo / (The Ceylon National Chamber Mr. T Seneviratne Mr. Mallory E Wijesinghe of Industries) (Ceylon Chamber of Mr. H R Fernando Commerce) (The National Chamber of Commerce of Sri Lanka) 1976/1977 Mr. H E P de Mel Mr. T Seneviratne Mr. H R Fernando (The Ceylon National Chamber (The National Chamber of of Industries) Commerce of Sri Lanka) Mr. V L Wirasinha (The Ceylon Chamber of Commerce) 1977/1978 Mr. Gilbert Jayasuriya Mr. T seneviratne (The Ceylon National Chamber Mr. H R Fernando of Industries) (The National Chamber of Mr. M Kundanmal Commerce of Sri Lanka) (The Mercantile Chamber of Commerce of Ceylon) 1979/1980 Mr. M Kundanmal Mr. T seneviratne Mr. Gilbert Jayasuriya (The Mercantile Chamber of (The Ceylon National Commerce of Ceylon) Chamber of Industries) Mudaliyar N W J Mudalige (The All Ceylon Trade Chamber) 1980/1981 Mudaliyar N W J Mudalige Mr. T seneviratne Mr. Gilbert Jayasuriya (The All Ceylon Trade Chamber) (The Ceylon National Mr. A D E de S Wijeratne Chamber of Industries) (The National Chamber of Commerce of Sri Lanka) 1981/1982 Mr. A H Rajkotwala Mr. T Seneviratne (The Mercantile Chamber of Mudaliyar N W J Mudalige Commerce of Ceylon) (The All Ceylon Trade Mr. W Granwille Perera Chamber) (The Sri Lanka Chamber of Small Industry)

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Term of Ofﬁce President and the Vice Presidents and the Secretaries Member body represented Member-body represented General

1982/1983 Mr. A H Rajkotwala Mr. T Seneviratne (The Mercantile Chamber of Mudaliyar N W J Mudalige Commerce of Ceylon) (The All Ceylon Trade Mr. W Granwille Perera Chamber) (The Sri Lanka Chamber of Small Industry) 1983/1984 Mr. W Granwille Perera Mr. T Seneviratne (Sri Lanka National Council Mr. A H Rajkotwala of International Chamber of (The Mercantile Chamber of Commerce) Commerce of Ceylon) Mr. D M Perera (The Tourist Hotels Association of Sri Lanka) 1984/1985 Mr. W Granwille Perera Mr. T Seneviratne (Sri Lanka National Council Mr. A H Rajkotwala of International Chamber of (The Mercantile Chamber of Commerce) Commerce of Ceylon) Mr. D M Perera (The Tourist Hotels Association of Sri Lanka) 1985/1986 Mr. Stanley William Mr. T Seneviratne Mr. Alloy R Jayawardene (Mercantile Chamber of (Sri Lanka Chamber of Small Commerce of Ceylon) Industries) Mr. Y P Muthukumarana (All Ceylon Trade Chamber) 1986/1987 Mr. Stanley William Mr. T Seneviratne Mr. Alloy R Jayawardene (Mercantile Chamber of (Sri Lanka Chamber of Small Commerce of Ceylon) Industries) Mr. Y P Muthukumarana (All Ceylon Trade Chamber) 1987/1988 Mr. Stanley William Mr. T Seneviratne / (Mercantile Chamber of Mr. A F Ludowyke Mr. A R P Wijesekera Commerce of Ceylon) (Ceylon National Chamber of Mr. H D de Silva Industries) (National Chamber of Commerce of Sri Lanka) Mr. Kumara Semage (Sri Lanka Chamber of Small Industry) 1988/1989 Mr. Stanley William Mr. A F Ludowyke (Mercantile Chamber of Mr. Chandra Karunanayake Commerce of Ceylon) (Ceylon National Chamber of Mr. W Granwille Perera Industries) (Sri Lanka National Council of International Chamber of Commerce)

1989/1990 Mr. Stanley William Mr. A F Ludowyke (Mercantile Chamber of Mr. Chandra Karunanayake Commerce of Ceylon) (The Ceylon National Mr. K Jayasuriya Chamber of Industries) (The National Chamber of Commerce of Sri Lanka) 1990/1991 Mr. Macky Hashim Mr. A F Ludowyke / Mr. W Granwille Perera (Sri Lanka Gem Traders’ Mr. B H Dushyantha (Sri Lanka National Council Association) Mendis of International Chamber of Mr. Sugath Kodituwakku Commerce) (Sri Lanka Chamber of Small Industry) 1991/1992 Mr. Macky Hashim Mr. A F Ludowyke / (Sri Lanka Gem Traders’ Mr. B H Dushyantha Mr. W Granwille Perera Association) (Sri Lanka National Council Mendis of International Chamber of Mr. Sugath Kodituwakku Commerce) (Sri Lanka Chamber of Small Industry) 1992/1993 Mr. Macky Hashim Mr. B H Dushyantha Mr. Patrick Amarasinghe (Sri Lanka Gem Traders’ Mendis / (National Exporters Association) Ms. Avanti Association of Sri Lanka) Mr. Lal de Mel Moonasinghe (The Ceylon National Chamber (Deputy) of Industries) 1993/1994 Mr. Macky Hashim Mr. Anil Cooray (Sri Lanka Gem Traders’ Mr. Patrick Amarasinghe Association) (National Exporters Mr. Nihal Abeysekera Association of Sri Lanka) (The Ceylon National Chamber of Industries) 1994/1995 Mr. Macky Hashim Mr. Anil Cooray Mr. Patrick Amarasinghe (Sri Lanka Gem Traders’ (National Exporters Association) Association of Sri Lanka) Mr. Nihal Abeysekera (The Ceylon National Chamber of Industries) 1995/1996 Mr. Macky Hashim Mr. Anil Cooray (Serendib Chamber of Mr. Patrick Amarasinghe Commerce and Industry) (National Chamber of Mr. Nihal Abeysekera Exporters of Sri Lanka) (The Ceylon National Chamber of Industries) 1996/1997 Mr. Macky Hashim Mr. Anil Cooray / (Serendib Chamber of Mr. Patrick Amarasinghe Mr. Samantha Commerce and Industry) Abeywickrama (National Chamber of Mr. Nihal Abeysekera Exporters of Sri Lanka) (The Ceylon National Chamber of Industries)

1997/1998 Mr. Macky Hashim Mr. Samantha (Sri Lanka Gem Traders’ Abeywickrama Mr. Patrick Amarasinghe Association) (National Chamber of Mr. Nihal Abeysekera Exporters of Sri Lanka) (The Ceylon National Chamber of Industries) 1999 Mr. Macky Hashim Mr. Samantha Mr. Lal de Mel (Sri Lanka Gem Traders’ Abeywickrama (Sri Lanka Institute of Association) Marketing) Mr. Nihal Abeysekera (The Ceylon National Chamber of Industries) 2000 Mr. Macky Hashim Mr. Samantha (Sri Lanka Gem Traders’ Mr. Lal de Mel Abeywickrama Association) (Sri Lanka Institute of Marketing) Mr. Nihal Abeysekera (The Ceylon National Chamber of Industries) 2001 Mr. Nihal Abeysekera Mr. Samantha Mr. Macky Hashim (The Ceylon National Chamber Abeywickrama (Sri Lanka Gem Traders’ of Industries) Association) Mr. Nawaz Rajabdeen (Serendib Chamber of Commerce & Industry) 2002 Mr. Nihal Abeysekera Mr. Samantha (The Ceylon National Chamber Abeywickrama Mr. Macky Hashim of Industries) (Sri Lanka Gem Traders’ Mr. Nawaz Rajabdeen Association) (Serendib Chamber of Commerce & Industry) 2003 Mr. Nawaz Rajabdeen Mr. Samantha Mr. Nihal Abeysekera (Serendib Chamber of Abeywickrama (The Ceylon National Commerce & Industry) Chamber of Industries) Mr. Kosala Wickramanayake (Sri Lanka Chamber of Small Industry) 2004/2005 Mr. Nawaz Rajabdeen Mr. Samantha (Serendib Chamber of Abeywickrama Mr. Nihal Abeysekera Commerce & Industry) (The Ceylon National Mr. Kosala Wickramanayake Chamber of Industries) (Sri Lanka Chamber of Small Industry) Mr. Kosala Wickramanayake Mr. Samantha 2005/2006 (Sri Lanka Chamber of Small Abeywickrama Mr. Nawaz Rajabdeen Industry) (Serendib Chamber of Mr. Tissa Jayaweera Commerce & Industry) (International Chamber of Commerce Sri Lanka)

2006/2007 Mr. Kosala Wickramanayake Mr. Samantha (Sri Lanka Chamber of Small Mr. Nawaz Rajabdeen Abeywickrama Industry) (Serendib Chamber of Mr. Tissa Jayaweera Commerce & Industry) (International Chamber of Commerce Sri Lanka) 2007/2008 Mr. Kosala Wickramanayake Mr. Samantha Mr. Nawaz Rajabdeen (Sri Lanka Chamber of Small Abeywickrama (Serendib Chamber of Industry) Commerce & Industry) Mr. Tissa Jayaweera (International Chamber of Commerce Sri Lanka) 2008 /2009 Mr. Tissa Jayaweera Mr. Samantha (International Chamber of Abeywickrama Mr. Kosala Wickramanayake Commerce Sri Lanka) (Sri Lanka Chamber of Small Mr. Kumar Mallimaratchi Industry) (Tourist Hotels Association of Sri Lanka) 2009 Mr. Tissa Jayaweera Mr. Samantha (International Chamber of Abeywickrama / Mr. Kosala Wickramanayake Commerce Sri Lanka) Mr. Sam Stembo (Sri Lanka Chamber of Small Mr. Kumar Mallimaratchi (Assistant Secretary and Medium Industries) (Tourist Hotels Association of General) Sri Lanka)

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 OUR MEMBERS

The institutional membership of active areas in trade and commerce Our membership also consists of the Federation comprises a wide such as Kandy, Kurunegala, 2 Institutions. As a result of this spectrum of bodies covering a Ampara, Hambantota, Kalutara depth and diversity, the Federation multiplicity of economic sectors of and the districts in the North and of Chambers of Commerce and the country. Furthermore, they East of Sri Lanka. Industry of Sri Lanka is a truly are spread across the length and representative body at the helm of breadth of Sri Lanka. Our membership also has 11 affairs of the private sector in this Associations representing a country. 50 such bodies are members of the diversity of interests such as Federation. Out of these, 8 are employment, construction, private National Chambers and 29 are tea factories, vegetable producers, Regional Chambers which cover the processors and exporters, gems and entirety of districts in the country jewellery, hardware and tourism. and serve the interests of several

NATIONAL CHAMBERS (08) Chamber of Young Lankan Sri Lanka Chamber of Small and Entrepreneurs Medium Industries American Chamber of Commerce No. 24, Beddagana Road YMBA Building, No.126/10 B in Sri Lanka Kotte Fort, Colombo 01 1st Floor, Ofﬁce Building South Wing, Colombo Hilton Tele : 011 4319996 / 2833560 Tele : 011 2424505, 5644379 Lotus Road, Colombo 1 Fax : 011 4319996 Fax : 011 2424505 Email : [email protected], Email : [email protected] Tele : 011 2336073 / 4 [email protected] Fax : 011 2336072 Web : www.coyle.lk Email : [email protected] Women’s Chamber of Industry Web : www.amcham.lk and Commerce International Chamber of No. 380/7, Sarana Road Commerce Sri Lanka Bauddhaloka Mawatha Business Chamber of Commerce No 53, Vauxhall Lane Colombo 07 2nd Floor, No. 18/414 Colombo 2 CFT Building Tele : 011 2671762 K Cyril C Perera Mawatha Tele : 011 5333392, Fax : 011 2669074 Colombo 13 2307841, 2307825 Email : [email protected] Fax : 011 2307841 Web : www.wcicsl.org Tele : 011 2449321 Email : [email protected] Fax : 011 2448957 Web : www.iccsrilanka.com Email : [email protected]

National Chamber of Handicrafts Ceylon National Chamber of of Sri Lanka Industries No. 46 C, George E de Silva Mawatha No. 20, First Floor Kandy Galle Face Court P.O. Box 1775, Colombo 3 Tele : 081 22 03791 Fax : 081 22 03791 Tele : 011 2452181/ Email : [email protected] 2331444 / 2423734 Web : www.nchsl.com Fax : 011 2331443 Email : [email protected] Web : www.cnci.biz

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 INSTITUTIONS (02) Private Tea Factory Owners Tourist Hotels Association of Association Sri Lanka Institute of Personnel Management No. 429, 2/1 Nawala Road C/o The Ceylon Chamber of Sri Lanka Rajagiriya Commerce HR House, No. 43 No.50, Navam Mawatha Vijaya Kumaranathunga Mawatha Tele : 011 2888976 Colombo 2 Colombo 05 Fax : 011 2888976 Email : [email protected] Tele : 011 2421745/6, Tele : 011 4511137/8 2328880, 4716673 4511148, 4528866 Protected Agriculture Fax : 011 2449352 Fax : 011 4511107 Entrepreneurs’ Association Email : [email protected] Email : [email protected] No. 254/ 1, Shodans Building Web : www.ipmlk.org Muruthalawa Road REGIONAL CHAMBERS (29) Peradeniya Sri Lanka Institute of Marketing Ampara District Chamber of SLIM Home Tele : 081 2387121 Commerce and Industry No 94, Ananda Rajakaruana Mawatha Fax : 081 2387121 2nd Floor, T K S Building Colombo 10 Email : [email protected] D S Senanayake Street Web : www.paea-lk.org Ampara Tele : 011 2675000 Fax : 011 2681660 Software Exporters Association Tele : 063 22 23790 Web : www.slim.lk C/o Ceylon Chamber of Commerce Fax : 063 22 23315 No. 50, Nawam Mawatha Email : [email protected] ASSOCIATIONS (11) Colombo 02 Web : www.amparachamber.lk

Association of Licensed Foreign Tele : 011 2392840, Anuradhapura District Chamber Employment Agencies 2421745 -6 of Commerce, Industry and No. 69, Maligawatta Road Fax : 011 2449352 Agriculture Colombo 10 Email : [email protected] No. 334/110 E 1, Main Street Web : www.softwaresrilanka.com Anuradhapura Tele : 011 2336661 / 2 / 64 Fax : 011 2336665 Sri Lanka Association of Printers Tele : 025 4 580770, 2226964 Email : [email protected] No. 290, D R Wijewardena Mawatha Fax : 025 4580771 Web : www.alfea.org Colombo 10 Email : [email protected] Web : www. anuradhapurachamber.lk Ceylon Hardware Merchants Tele : 011 2472315 Association Fax : 011 2386716 No. 443, Old Moor Street Email : [email protected] Batticaloa District Chamber of Colombo 12 Commerce and Industry Sri Lanka Fruit and Vegetable No. 56, Thamayaikerny Road Tele : 011 2431511, Producers’, Processors’ Batticaloa 2434411, 2431550 and Exporters’ Association Fax : 011 2432377 / 8 No 80 , Reclamation Road Tele : 065 22 26656 Email : [email protected] Colombo 11 Fax : 065 22 26656 [email protected] Email : [email protected] Tele : 011 2327810 Web : www.batticaloachamber.lk Lanka Confectionery Fax : 011 2332331 Manufacturers Association Email : [email protected] Central Province Exporters’ No. 68, Wijaya Road Web : www.srilankafruit.com Chamber Kolonnawa Bank of Ceylon Building Sri Lanka Gem and Jewellery No. 22 B, 2nd Floor Tele : 011 5023223/2531515 Association Kotugodella Street Fax : 011 2572764 2nd Floor, SUBUD House Kandy Email : [email protected] No. 38, Frankfort Place Colombo 4 Tele : 081 2205176 National Construction Association Fax : 081 2205175 of Sri Lanka Tele : 011-2597226, 2597470 Email : [email protected] No. 350 A, Pannipitiya Road Fax : 011-2597250, 2554144 Web : www.exportchamber.lk Pelawatta Email : [email protected], [email protected] Tele : 011 2786325 -26 Web : www.slgja.org, Fax : 011 2784355 www.facetssrilanka.com Email : [email protected] Web : www.ncasrilanka.com

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Central Province Women’s Galle District Women Kurunegala District Women’s Chamber of Small Industries and Entrepreneurs Chamber Chamber of Commerce, Industry Commerce 320, Magalle, Matara Road & Agribusiness No. 38, George E De Silva Mawatha Galle No.04, Sunitech Building Kandy 2nd Floor, 1st Lane Tele : 091- 2227245 Baudhaloka Mawatha Tele : 081-2228571 Email : [email protected] Kurunegala Fax : 081-2228571 Web : www.gallewomenschamber.lk Email : [email protected] Tele : 037 2232108 Web : www.centralwomenschamber.lk Gampaha District Chamber Fax : 037 2232108 of Commerce Industry and Web : www.kurunegalawomenschamber.lk Chamber of Commerce and Agriculture Industry of Central Province 2nd Floor, Mannar District Chamber No. 04, Dharmaraja Mawatha Gampaha Pradesihya Saba Building of Commerce, Industry and Kandy Miriswatte Junction Agriculture Mudungoda 1st Floor Tele : 081 2205244, 4476685, MPCS Building 5623598 Tele : 033 2234244, 3338486 Field Street Fax : 081 4476685, 4940685 Fax : 033 2234244 Mannar Email : [email protected] Email : [email protected] Web : www. centralprovincechamber.lk Web : www.gampahachamber.lk Tele : 023 222 3308, 7451430 Fax : 023 222 3308 Chamber of Commerce and Hambantota District Chamber of Email : [email protected] Industries Trincomalee District Commerce Web : www.mannarchamber.lk No. 171, Power House Road Tangalle Road Trincomalee Hambantota Matale District Chamber of Commerce, Industry and Tele : 026 - 2225270, 4920939 Tele : 047 22 20940/1, 22 20448 Agriculture Fax : 026 2225270 Fax : 047 22 20448 No. 10, Vihara Road Email : [email protected] Email : [email protected] Matale Web : www.trincomaleechamber.lk Web : www.hdcc.lk Tele : 066 7390700 / 703 Chamber of Commerce and Jaffna Women’s Chamber of Fax : 066 7390702 Industry of Uva Province Commerce, Industry and Agri Email : [email protected] No. 30, Udayaraja Mawatha Business Web : www.matalechamber.lk Badulla Uduvil Road Manipay Matara District Chamber of Tele : 055 22 24195 Commerce and Industry Fax : 055 2224195 Tele : 021-7429240, 3218639 No. 05 A 1/1 Email : [email protected] Fax : 021-7429240 C A Ariyathilake Mawatha [email protected] Email : [email protected] Matara Web : www.uvachamber.lk Web : www.jaffnawomenschamber.lk Tele : 041 22 29883 Kalutara District Chamber Fax : 041 22 29883 Chamber of Commerce and of Commerce & Industry and Email : [email protected] Industries of Yarlpaanam Agriculture Web : www.matarachamber.lk No. 175, Point Pedro Road 112 , Galle Road, Kalutara North Annaipanthy Kalutara Matara District Women’s Chamber Jaffna of Commerce and Industry Tele : 034 2237396 No. 3/6, Siri Darmarathna Mawatha Tele : 021 22 26609 Fax : 034 2237396 Pamburana Fax : 021 22 26609 Email : [email protected], Matara Email : [email protected] [email protected] Web : www.yarlpanamchamber.lk Web : www.kalutarachamber.lk Tele : 041 5670105 Fax : 041 2227494 Galle District Chamber of Kilinochchci District Chamber Email : [email protected] Commerce and Industries of Commerce, Industry and Web : www.matarawomenschamber.lk Chamber Building Agriculture Sri Gnanobasha Mawatha No.13, 02nd Farm Oroppuwatta Kanagapuram Galle Kilinochchi

Tele : 091 7396140 - 7, 4380715 Tele : 021 3028094 Fax : 091 7396143 Email : [email protected] Web : www.gallechamber.com

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Moneragala District Chamber Vavuniya District Chamber of Commerce, Industry and of Commerce, Industry and Agriculture Agriculture No. 64, Opposite Tri-Star Garments 1st Floor, Sathiya Building Moneragala Road No. 57, 1st Cross Street Buttala Vavuniya

Tele : 055 2273 416 Tele : 024 22 24313 Fax : 055 2273752 Fax : 024 2224313 Email : [email protected] Email : [email protected] Web : www.moneragalachamber.lk Web : www.vavuniyachamber.lk

Mullaitivu District Chamber Wayamba Chamber of Commerce of Commerce, Industry and and Industry Agriculture 1st Floor, LOLC Building Main Road, Aninchiyankulam 18, Mihindu Mawatha Yogapuram Kurunegala Mallavi Tele : 037 22 24356, 22 24355 Tele : 024 - 3248533 Fax : 037 22 24355 Email : [email protected] Nuwara Eliya District Chamber Web : www.wayambachamber.lk of Commerce, Industry and Agriculture No. 77/1/2 , Kandy Road Nuwara Eliya

Tele : 052 2224078 Fax : 052 2224078 Email : [email protected] Web : www.nuwaraeliyachamber.lk

Polonnaruwa District Chamber of Commerce, Industry and Agriculture Crown Auto Mart Building 1st Floor, Air port Road Hingurakgoda

Tele : 027 2247826 Fax : 027 2247826 Email : [email protected] Web : www.polonnaruwachamber.lk

Puttalam District Chamber of Commerce, Industry and Agribusiness 2nd Floor, Sky Line Building No. 48 2/2, Colombo Road Chilaw

Tele : 032 - 2221487, 2221213 Fax : 032 – 2221213 Email : [email protected] Web : www.puttalamchamber.lk

Sabaragamuwa Province Chamber of Commerce and Industry No. 567, 1/2, Main Street Ratnapura

Tele : 045 22 23662 Fax : 045 22 22056 Email : [email protected] Web : www.sabaragamuwachamber.lk

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 OUR MEMBERS NETWORK

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 CALENDAR OF EVENTS 2009 HIGHLIGHTS

February

• Opening of Central Province Exporters’ Chamber – 2nd in Kandy

• Meeting with High Commissioner of Trinidad & Tobago - 9th at FCCISL

• Entrepreneur Fellowship – Western Province – 12th in Colombo

• Seminar on Supporting the January Year of English and IT – 13th in Colombo

• Meeting with the Maldivian President • Review of Memorandum of Article - 3rd in Colombo and Responsibilities of BODs of Regional Chambers – 13th in Kandy • Signing of MoU with the Institute of Personnel Management Sri Lanka • Workshop on Responsibilities of BODs of - 12th at FCCISL Regional Chambers – 17th in Matara

• Meeting with Dubai Chamber of Commerce • Speech by Hon. Vinayagamoorthi -14th to 18th in Dubai Muralitharan, Member of Parliament at a Business for Peace Forum • Speech by Ms. Naoko Ishii, – 19th in Colombo Country Director – World Bank, Sri Lanka and Maldives at a Business for Peace • Participation at SAARC Trade Information Forum – 22nd in Colombo Project – 17th in Katmandu, Nepal

• Training on Microsoft Project Management • “Na” Tree Planting Ceremony at the – 28th to 30th in Colombo Hon. Speaker’s House – 19th in Colombo

• Speech by Hon. Mohan Pieris PC, • Presentation ceremony of the publication Attorney General at a Key Person’s Forum named “Key Person’s Forum Collection of – 29th in Colombo Speeches 2008”- 19th in Colombo

• Workshop on Responsibilities of BODs of Regional Chambers – 20th in Colombo

• Speech by Dr. Palitha Kohona, Secretary, Ministry of Foreign Affairs at a Key Person’s Forum – 26th in Colombo

• Workshop on Enhance your Public Image through Proper Business Etiquette – 27th in Colombo

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 March April

• Signing of MoU with the Sri Lanka • Participation at SAARC Trade Institute of Marketing – 3rd at FCCISL Information Project – 2nd – 4th in Bentota

• Speech by Ms. Naoko Ishii, • Brainstorming Session on “Development Country Director, The World Bank, on North and East of Sri Lanka Colombo Ofﬁce at a Key Person’s Forum 3rd - 4th in Colombo – 13th in Colombo • Seminar on “Shipping, International • Workshop on Women Entrepreneur Trade and Logistics Skills for Non-Shipping Development – 14th in Kurunegala Professionals” – 3rd in Colombo

• Workshop on Tapping the World of • Workshop on Growing and Exporting of Nanotechnology - 18th in Colombo Anthuriums – 4th in Kandy

• Seminar on Recent Trends in Chamber • Accompanying a business delegation to Land (European Perspective) Libya - 07th – 11th in Libya – 18th in Colombo • Speech by Hon. Douglas Devananda, • Speech by Dr. Wickrema Weerasuriya, Minister of Social Services and Social Insurance Ombudsman, Sri Lanka at a Welfare at a Business for Peace Forum Key Person’s Forum – 25th in Colombo – 21st in Colombo

• Go Green Conference on Plastic and • Participation at Re-Sale Fair - 22nd in Polythene - 26th in Colombo Karlshru, Germany

• Workshop on Standard Export • Workshop on Event Management & Development Process – 28th in Kandy Organizing your own Event - 30th in Kandy

May • International Training Programme on Standard • Speech by Mr. Glynn Lowth, Global President, Export Development Processes – 6th in Bentota CIMA at a forum – 26th in Colombo

• International Seminar on Benchmarking Sri • Speech by Mr. Priyantha Kariyapperuma, Lanka’s Trade Facilitation Systems and Processes Director General, Telecommunication Regulatory – 11th – 14th in Colombo Commission at a Key Person’s Forum – 28th in Colombo • Training on Technology Transfer Methods in Silver, Gold and Rhodium Plating • Donor Meeting for Reviving of North and East – 14th at FCCISL – 28th in Colombo

• Presentation Ceremony and Workshop • Participation at 23rd CACCI Conference on Chamber Operational Guides – 31st May – 1st June in Yokohama, Japan – 14th – 15th in Colombo

• Taking a delegation to Auckland Chamber of Commerce – 22nd – 29th in Auckland, New Zealand

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 June August

• Participation at South Asian Commodity • Visit of a Maharatta Chamber of Commerce Fair – 4th – 10th in Kungming, China and Industry trade delegation – 2nd at FCCISL • Signing of MoU for Establishment of • Hands Lanka Exhibition – 2nd – 5th in Kandy SMED Cells with Regional Chambers – 6th in Colombo • Visit of a Myanmar Chamber of Commerce and Industry trade delegation • SAARC Accreditation Workshop – 3rd at FCCISL – 8th – 10th in Colombo • Asian SME Summit – 6th – 8th in Colombo • Participation at SAARC Trade Information Project – 16th in Katmandu, Nepal • SME Machinery Exhibition – 7th-9th in Colombo

• Workshop towards Recovery Tools in • Workshop on HDCC Experience Sharing Coping with the Economic Downturn and capacity Building - 18th – 19th in Kandy – 8th to 10th in Hambantota

• Training programme on SME Promotion • Workshop on Enviromental Impact at Policy - 13th - 28th in Korea Service Stations for Lanka IOC Staff - 24th in Colombo • Visit of a Pakistani Business Delegation -14th at FCCISL • International Conference on Benchmarking Sri Lanka’s Trade Facilitation Systems and • Second Regional Chamber Presidents’ Processes – 26th in Colombo Conference - 15th in Kandy

• Sri Lankan Entrepreneur of the Year • SAARC Executive Committee Meeting Awards Launch – 26th in Colombo – 18th in Colombo

• Training Programme for Cluster • International seminar on trade facilitation – 19th in Colombo Coordinators – 29th – 30th in Kandy

• Signing of MoU with Infoshare (Gte) Ltd – 27th at FCCISL July September • Workshop on ICT for Business Survival – 22nd in Colombo • International Seminar on Benchmarking Sri Lanka’s Trade Facilitation Systems and • Signing of MoU with Oxfam GB to provide Processes – 01st in Colombo assistance during humanitarian emergencies - 27th in Colombo • SME Development Seminar on Reaching Out SMEs of the SAARC Regional • Signing of MoU with Bahrain Chamber of – 23rd in India Commerce and Industry – 29th in Colombo • Speech by Hon. Dinesh Gunawardene, • Speech by Ms. Tine Staermose, Director, Minister of Urban Development and International Labour Organization at a Key Sacred Areas Development at a Key Person’s Forum - 30th in Colombo Person’s Forum - 24th in Colombo

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 October November

• Singing of MoU with Maharatta Chamber • Singing of MoU with Bulgaria Chamber of of Commerce and Industries Commerce and Industry. – 01st in Colombo – 02nd in Colombo • Workshop on ISO • Signing of Agreement between FCCISL – 2nd to 5th in Kazakhstan and Oxfam GB for FCCISL CHEER Project – 12th in Colombo • Sri Lankan Entrepreneur of the Year, Northern Provincial Awards Ceremony • Signing of MoU with Vietnam Chamber of – 9th in Jaffna Commerce, Industry and Agriculture – 24th in Vietnam • Sri Lankan Entrepreneur of the Year, Central Provincial Awards Ceremony • National Workshop on Global and SME - 13th in Kandy Value Chains in Sri Lanka – 30th in Colombo • ADB FICCI SAARC Regional Conference – 16th – 19th in Colombo

• Sri Lankan Entrepreneur of the Year, North Central & North Western Provincial Awards Ceremony - 17th in Chilaw December • Sri Lankan Entrepreneur of the Year, • Two-day workshop on Regional SME Uva, Sabaragamuwa and Eastern Value Chain – 1st – 2nd in Colombo Provincial Awards Ceremony - 18th in Badulla • Training programme for Regional Chambers on Management Information • Sri Lankan Entrepreneur of the Year, System and Web Editing Southern Provincial Awards Ceremony - 2nd – 3rd in Colombo – 19th in Galle

• Seminar on Export Promotions (CBI) • Agri, Livestock, Fisheries SMEDEX – 3rd in Colombo Exhibition – 20th – 22nd in Colombo

• Speech by Hon. Mahinda Samarasinghe, • SAARC Business Leaders’ Conclave Minister of Disaster Management and – 22nd – 23rd in Colombo Human Rights at a Key Person’s Forum – 3rd in Colombo • Meeting with a delegation from Royal Netherlands Embassy, New Delhi, India • Tree Planting Ceremony on the SAARC during their visit to Sri Lanka Day Celebrations – 8th in Colombo – 23rd – 27th in Colombo

• FCCISL Christmas Party – 20th in Colombo • Sri Lankan Entrepreneur of the Year, Western Provincial Awards Ceremony • Visit of a group of ofﬁcials from the China – 24th in Colombo Council for the Promotion of International Trade (CCPIT) and a delegation from • Sri Lankan Entrepreneur of the Year Chinese Tea trade – 30th at FCCISL Awards National Event - 27th in Colombo

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 PROJECTS & SERVICES

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 MEMBERSHIP SERVICES AND REGIONAL CHAMBER DEVELOPMENT

is to improve the services offered and policy advocacy, service to FCCISL member chambers development, income generation and sector associations. Some of and peace building have been the important functions include identiﬁed as key areas of the advising and guiding the chambers program. These components are to and associations, providing local be delivered using methodologies Introduction and foreign training opportunities and instruments that are largely to the staff of members, dealing locally owned, locally initiated and The trade and industrial community with management issues and taking local needs and priorities into in all districts of the country strengthening and improving account. is represented by a network of business development services national, district and provincial and policy advocacy powers of the Lobbying and Policy chambers of commerce and member chambers and associations. Advocacy industry. This network directly represents a growing membership Regional Chambers The FCCISL conducted lobbying of over 12,500 business enterprises, Sri Lanka Programme and policy advocacy activities including many Small and Medium during 2009 in collaboration with Enterprises (SMEs) which form The Regional Chambers Sri regional chambers by using tools the backbone of the Sri Lankan Lanka Programme (RCSL), and techniques introduced by the economy. These chambers play which was launched in the latter Federation. When compared with a crucial role in economic and part of 2007 by FCCISL with the the situation that prevailed prior to business development, working in ﬁnancial assistance of the Swedish implementing the RCSL program, partnership with the public sector International Development the regional chambers have and political authorities at the Cooperation Agency (SIDA) and shown more interest, enthusiasm district, provincial and national the Norwegian Ministry of Foreign and commitment in performing levels. Affairs (NMFA) aims to develop activities related to public-private the organizational capacities of 29 partnership. Our membership regional/district chambers and their service portfolios in a competitive, These activities could be listed We have a broad and diverse demand-driven and sustainable under the following categories: membership base that represents basis. Accordingly, development almost all segments of business of organizational capacities and • Regional Chamber Presidents and industry. The main objective professional competencies, lobbying Advocacy Forum of the membership management

Second Regional Chamber Presidents Conference in Kandy

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 level to create a business-friendly relevant to industrial development, environment. banks and NGOs are represented in it. Representatives of the business The FCCISL held the second community in the area are also Regional Chamber Presidents part of it. The regional chamber Conference on 15th August, 2009 at plays an organizing/secretarial

• District Enterprise Forum (DEF) Earls Regency Hotel, Kandy. At this role. The Forum can be considered event, the business-related policy as a problem solving group as well

• National Level Advocacy and regulatory issues were identified, as a medium through which the prioritized and entrusted to the Government/NGOs could transfer With regard to DEF related committees appointed as follows their development packages to the activities, a large number of in order to evaluate the progress business community. It also performs issues at the district level has been effectively. advocacy and lobbying functions resolved and many issues that within the district. could not be resolved at that level • Infrastructure and utility have been identified and referred The DEF process enables the to the national level. The Forum • Business development services identification of problems that need also created a friendly atmosphere to be resolved at the provincial between public officials and the • Institutional issues and national level by the country’s business community at the district policymakers. The Forum is level. • Peace and security presently functioning in 17 districts (Anuradhapura, Polonnaruwa, • Regional Chamber • District Enterprise Kurunegala, Puttalam, Kandy, Presidents Advocacy Forum (DEF) Matale, Kalutara, Galle, Matara, Forum Moneragala, Ratnapura, Nuwara The District Enterprise Forum was Eliya, Badulla, Ampara, Vavuniya, The Regional Chamber Presidents set up to promote the Small and Batticaloa and Jaffna). Advocacy Forum, which represents Medium Enterprises sector through the voice of the Presidents of all public-private dialogue, in order • National Level Advocacy district and provincial chambers, to create a conducive business plays a vital role in developing and environment at the regional level. Various issues discussed at the strengthening public-private dialogue The Government Agent chairs it DEF and Presidents Advocacy at district, provincial and national and all the Government institutions Forums for which solutions could not be found at the regional level were referred to the national level authorities through the FCCISL. To address these issues, the Federation along with the National Enterprise Development Authority (NEDA) formed a national level forum based at NEDA. This forum comprises representatives of FCCISL, NEDA, the Ceylon Chamber of Commerce, Business for Peace Alliance, The Asia Foundation, Treasury, etc. Presentation ceremony of the Chamber Management Guides. From left: Mr. Kosala Wickramanayake-President FCCISL, Dr. P B Jayasundara-Secretary to the Ministry of Finance and Mr. Kumar Mallimaratchi-Vice President FCCISL 33

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 • General Administration of individual chambers as reflected in the survey in 2008, 10 training • Human Resource Management workshops were conducted for 132 individuals from 29 RCs. After these • Corporate Governance and Ethics workshops, business plans were developed for the RCs in consultation Governance Systems and • Quality Assurance with them. Procedure Development • Public Relations and Capacity development of board Communication members and staff has been All constitutions of the regional identified as one of the crucial factors chambers (RCs) were reviewed • Advocacy Guide in overall development of RCs. Using and new constitutions were both foreign and local resources, developed incorporating the specific All chambers have uniform 16 training programs, workshops development needs of each chamber accounting and management systems & experience-sharing programs in consultation with them. For where activities can be compared were conducted in Colombo, Kandy, this purpose, three workshops on easily. Matara, Galle and Hambantota “Review of Memorandum of Articles for 459 participants to develop and Responsibilities of Board of Organizational and the professional capacities and Directors” of RCs were held in Professional Capacities competencies of board members and Kandy, Matara and Colombo for Development staff. Such programs were based on 107 board members and 28 CEOs. the Standard Export Development The recommendations of the RCs Regional chambers were established Process and Export Promotions, for the draft constitutions were at different points of time from Development of North & East of Sri incorporated. RCs in Nuwara 1992 to 2009, and so their levels of Lanka, Recovery Tools in Coping Eliya, Mannar, Kalutara and Jaffna development are not at the same with Economic Downturn, Event (Women) adopted new constitutions level. Hence, it was very important Management and Organizing Own in 2009. to implement a systematic approach Events and Cluster Approach etc. in developing chambers by setting The chamber management lays proper objectives and directions. Networking much emphasis on building the Based on the recommendations of the capacities of board members and Baseline Study, and also considering Internal systems and procedures staff of the RCs on good governance the capacity, needs and the potential are very important for the FCCISL practices. To cover governance as well as management aspects of the chambers, 8 comprehensive Chamber Management Guides were developed using the services of experts and in consultation with the RCs.

They are: • Management Guide for Chamber of Commerce

• Finance Accounting

Workshop on MIS and Web Editing for Regional Chamber CEOs and Information Ofﬁcers

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 within the RCs to benefiting the complex issues that confront them. chamber members, business This is the case not only at the community and the general public in domestic, provincial and national the regions. levels but also at the international level. RCs also benefit as they The development of brand image for can increase their membership and regional/district chambers. The chambers is a very powerful factor by providing a better service to Management Information System in strengthening the membership and the entrepreneurs in a cluster. To (MIS) is a key component for services service base of RCs. Websites for safeguard the interest of the private delivery to FCCISL and the RCs. 26 chambers have been developed sector and to promote the RCs, the The Membership Management and and hosted, with all required FCCISL has introduced the Regional Business Advisory Software System information to maintain a special Cluster Development Program. was developed and installed in all identity. Designing and printing The main objectives of the cluster RCs. This system facilitated the of promotional brochures for 15 development activities are: development of the organizational RCs have been completed, and setup and database for delivery of promotional brochures for 6 other • Strengthen selected clusters, and Business Advisory Services (BAS) at RCs are being processed. maximize the production capacities the national and district levels and of cluster members created a micro, small and medium Information Dissemination scale entrepreneurs’ database at • Facilitate access to finance for the national and district levels. It is The FCCISL Library established clusters through the chambers comprehensive and has the facility in January 2009 introduced a to share membership information Windows-based Library Management • Enhance revenue of cluster and management and business Information System for all members consultancy service information functions. Chamber information among all RCs. It enables RCs centres and libraries have also been • Enhance communication between to respond quickly to members’ established in the Galle, Matale and cluster members and decision requirements. Members can request Sabaragamuwa chambers to promote makers in the government to services online while chambers can reading, collect information from the improve the business environment register, select, dispatch and monitor business community and encourage for SMEs consultants through the system. them to share their experiences with budding entrepreneurs, • Strengthen the lobbying power of A management information system business school students, diplomats the clusters to create linkages and web editing training program and foreign delegations who seek was conducted for 45 participants business contacts at the district, • Minimize unethical business including CEOs and information provincial and national levels, and practices in the cluster officers of RCs on 2nd and 3rd to provide up-to-date information by December 2009 at SLIDA. linking with local and international • Improve business management organizations. Image Building knowledge

Cluster Approach for SME • Increase chamber membership Brand image and identity are Development important factors for the chamber On completion of the initial study, movement in Sri Lanka. Effective Entrepreneurs in clusters are in a 10 RCs in Kalutara, Nuwara Eliya, communication tools developed strong position to resolve the more Trincomalee, Gampaha, Kurunegala,

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Kandy (Central), Anuradhapura, Polonnaruwa, Matale and Badulla were selected to implement the cluster approach for 10 sectors. Clusters formed by SMED include the Tourism Cluster in Matale, the Saw Millers Cluster in Kandy Mr. Ruwan Edirisinghe, Chairman/Managing Director RN Constructions (pvt) ltd. and the Rice Millers Cluster in with the Sri Lankan Entrepreneur of the Year 2008 Award Anuradhapura. The clusters selected Impact of RCSL Project on SRI LANKAN by the chambers are the Jewellery Development of Regional ENTREPRENEUR OF THE Cluster in Nuwara Eliya, the Coir Chambers YEAR AWARDS Cluster in Wayamba (Kurunegala), the Ornamental Fish Cluster in The RCSL program is expected Sri Lankan Entrepreneur of the Polonnaruwa and the Furniture to create a sustainable regional Year Awards is Sri Lanka’s highest Cluster in Kalutara. These sectors chamber movement that can cater to national honour to the business have been selected based on their the dynamic and challenging needs of community. This prestigious award importance, promotability, viability the private sector with a professional is unmatched by any other national and sustainability to ensure an approach. award. The annual awards scheme effective and wide impact. Work is designed to recognize, reward and plans for the clusters were developed It has already achieved the following motivate the county’s entrepreneurs as a road map to develop and foster results: to optimize their entrepreneurial lasting relationships among the skills to reach the highest echelons of cluster actors whilst delivering viable • Membership increased by 38% achievement with notable benefits to results. from 2008 to 2009 in 29 Regional the economy. Chambers The knowledge and experience This year, the FCCISL organized the gained during the exposure visit by • An increasing trend of members event for the 14th consecutive year to 15 presidents and CEOs of RCs on using chamber services during the honour Sri Lanka’s most outstanding good practices adopted in India for project period entrepreneurs at the provincial and cluster groups proved useful when national levels for their invaluable forming the cluster groups in Sri • Total investment for organizational contribution towards the socio- Lanka. The FCCISL and SMED and professional capacity economic development of the country are presently negotiating with large development of RCs exceeded through good business practices corporates to provide linkages and Rs.100 million under the RCSL and innovative entrepreneurship. enter into buy-back arrangements project The national awards ceremony was with the clusters. A mechanism held on 27th November 2009 at the is being developed with financial BMICH, where 22 entrepreneurs institutions to facilitate access to were presented with gold, silver and finance for the clusters developed bronze awards and certificates of through this program. merit.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 entrepreneurial qualities including awards is the section on regional vision, mission, innovativeness, entrepreneurs and awards at the strategies, business success in terms regional level. This year too, five of financial success and growth, regional award ceremonies were held future plans and response to social, covering all nine provinces. environmental and statutory Programme Launch commitments as an entrepreneur. Northern Provincial Awards Evaluation was carried out by an Ceremony The Sri Lankan Entrepreneur of eminent panel of judges comprising the Year programme was launched 12 members representing diverse The Northern Provincial Awards on 26th June 2009 at Taj Samudra disciplines, nominated from Ceremony was held on 9th November Hotel Colombo with the participation prestigious institutions from the 2009 at the Veerasingham Hall in of all sponsors, the FCCISL Board government and private sector Jaffna. The Commissioner of the of Directors and council members, in Sri Lanka. The evaluation Jaffna Municipal Council Mr. M.S. leading entrepreneurs and other process comprises four stages, Saravanabava was the chief guest. corporate heads and representatives. namely preliminary screening High ranking government officials and elimination, desk review, site and prominent personalities from Application and Judging inspection and individual interviews. the private sector also participated. Process More than 200 invitees attended the Regional Award Ceremonies ceremony, where 5 entrepreneurs The application form is designed from the small and medium categories for a 360o evaluation by capturing One of the notable aspects of Sri were presented awards. Lankan Entrepreneur of the Year

Sri Lankan Entrepreneur of the Year 2008 meets HE Mahinda Rajapaksa, President of Sri Lanka.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Perera, Deputy Minister of Fisheries November 2009 at the Koggala and Aquatic Resources was the chief Beach Hotel in Galle. The Chief guest, and leading entrepreneurs and Guest at the event was Mrs. Kumari government ofﬁcials were among the Balasuriya, the Governor of the distinguished invitees. Three leading Southern Province. More than 150 entrepreneurs from the North distinguished invitees representing Central Provincial Awards Central Province were recognized the private sector, universities and Ceremony and rewarded. Seven entrepreneurs government institutions (including from the North Western Province leading entrepreneurs from the This was the second regional awards (including one Gold Award Southern Province) witnessed ceremony, and was held at the Hotel winner, Richard Trading Co. from the event, where 6 entrepreneurs Suisse Kandy on 13th November Kurunegala) were also recognized for received awards for their 2009. It was organized by the their achievements. entrepreneurial achievements. Chamber of Commerce and Industry of the Central Province. The Chief Uva, Sabaragamuwa and Western Provincial Awards Guest was Hon. Sarath Ekanayake, Eastern Provincial Awards Ceremony Chief Minister of the Central Ceremony Province. Around 150 invitees The regional awards ceremony of attended the ceremony, where 6 The regional award ceremony of the Western Province was held on entrepreneurs (including two silver Uva, Sabaragamuwa and Eastern 24th November 2009 at the Hilton award winners) were presented provinces was held on 18th in Colombo. The Chief Guest was awards. November 2009 at Hotel River Side the Federal Minister for Science Badulla. Hon.Dilan Perera, Minister and Technology, Pakistan, Hon. North Central and North of Ports Development was the chief Mohommed Azan Khan Swati. Western Provincial Awards guest. Five entrepreneurs from the More than 200 distinguished Ceremony three provinces were awarded for invitees representing the private their entrepreneurial achievements sector and government institutions The North Central and North (1 from Uva, 3 from Sabaragamuwa (including leading entrepreneurs Western Provincial Awards and 1 from Eastern Province). from the Western Province) were Ceremony was held at the Three present at the occasion, where 30 Queens Reception Hall in Chilaw Southern Provincial Awards entrepreneurs received awards for on 17th November 2009. It was Ceremony their achievements. organized by the Puttalam District Chamber of Commerce, Industry The regional awards ceremony of the and Agribusiness. Hon. Neomal Southern Province was held on 19th

Sri Lankan Entrepreneur of the Year 2008 - Regional Awards Ceremonies.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Hall of Fame Awards Appuhamy, Al Haj N D H Abdul Caffoor and Deshabandu/ The Hall of Fame is an endeavour by Vishwaprasadini V T V the FCCISL to honour individuals Deivanayagampillai were honoured of noteworthy achievement in their for passing on their legacy to a third fields of expertise. generation. This is a reflection of the integrity and trust built by them and The winners of 2008 were rewarded passed on to their heirs. and recognized by their peers and the chambers as creators of true Moreover, the brands they have business success stories. They have solidly built are synonymous with created a distinct local flavour that our country and have brought us has been appreciated, honoured and international fame. Those brands are respected by Sri Lankans for over loved and cherished by Sri Lankans three generations. In areas ranging across the world. Their businesses from footwear and biscuits to gems also have contributed significantly to and general items, these men have the GDP of this country.

served their country with pride and Hon. Prof. Tissa Witharana, perseverance whilst passing on their Chief Guest delivering his speech at the Sri Lankan Entrepreneur of the Year good sense and unblemished integrity 2008 National Awards to the next generations.

Messrs D Samson Rajapaksa, Angunugaha Gamage Hinni

Hall of Fame Award Winners with Hon. Prof. Tissa Witharana, Minister of Science and Technology

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 FCCISL TRAINING

community, employees and job • Retain and invest the untapped seekers in different regions of the expertise of professionals (in the country. state sector, NGOs and the private sector) in the regions Main functions of the Unit • Reduce migration of skilled The FCCISL Training Division • Managing and directing FCCISL workers from rural areas to was established in the latter part Chamber Academies for the skills the Western Province for better of 1992. Its activities were mostly development of entrepreneurs, employment and higher studies confined to the Colombo District employees and job seekers in the (except the donor-funded training regions • Improve the communication programmes in the other districts skills of school leavers of rural of the country).With the intention • Identifying the gap between the areas, enabling them to take up of expanding its services to the latest management knowledge and professional studies and find regions, the regional centre network the existing knowledge of small gainful employment within the was established. All the regional and medium level entrepreneurs region centres of the Institute of Business in the regions and identifying and Industrial Studies (IBIS) were strategies to address it FCCISL CHAMBER functioned as one of the major units ACADEMIES (CAs) under the Projects and Services • Organizing educational exhibitions Division to upgrade the skills of in the regions to facilitate Programmes offered by CAs entrepreneurs and employees of education and training to promote Small and Medium Enterprises their products and services 1. Spoken English for (SMEs) while preparing job seekers among interested parties and Business for employment in the regional simultaneously creating awareness commercial sectors. This is a 108 hours (six months) about the latest educational trends programme designed in among regional youths and their Non-availability of skilled and collaboration with the Department parents professional staff is among the of Official Languages (DOL) with major constraints faced by the the introduction of a modern • Deliver/coordinate the education regional SMEs. The majority of textbook of the FCCISL. A team and training programs of state skilled and professional staff is sector organizations in the regions of instructors have been specially confined to the Western Province to popularize them and thereby trained with the assistance of the of the country resulting in a slow enhance their ability to access DOL to conduct classes using the growth in the SME sector though it quality products FCCISL text book. contributes to the country’s Gross

Domestic Product. • Develop industry-speciﬁc course Regional entrepreneurs, employees modules/curricula to cater to the of the private, public and NGO Later, all the Institute of Business demand by interested parties and sectors and job seekers are the and Industrial Studies (IBIS) the industries target groups for this programme. centres were renamed as “FCCISL Chamber Academies” and • Train and assist employees and 2. Tamil / Sinhala Language centralized in the Training Unit, school leavers to obtain gainful Programmes with the core objective of enhancing employment and contribute the familiarity of the academy and towards the reduction of rural This is the ﬁrst programme its services among the business poverty organised by the FCCISL in

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 DOL and a joint certificate of the of employees of organizations, DOL and FCCISL is issued to the and there is a continuous demand successful participants. for professional programmes in Human Resource Management 3. Certificate Course in from supervisory and managerial collaboration with the DOL. Computer Application in level employees of private sector The Tamil language programmes Business (Cert CAB) companies in the regions. To meet are conducted in areas with a this demand, the FCCISL arranged predominantly Sinhala population This is an accredited programme training programmes in 2008 in and vice versa. The duration of the implemented by the FCCISL in collaboration with the Institute programme is 108 hours (six months) collaboration with the Institute of of Personnel Management (IPM) using the textbook developed by Human Resource Advancement and signed a formal MOU on 12th the DOL. Classes are conducted by - University of Colombo. A January 2009. instructors specially trained by the memorandum of understanding FCCISL with the technical assistance (MoU) was signed by the FCCISL 5. Marketing Programmes of the DOL. Implementation of these with the University of Colombo on programmes commenced in 2007 as 11th July 2008 to implement it. Marketing is another key area a peace initiative with a subsidized in private sector development course fee. It has been decided to The objective of the programme to increase profits and achieve continue these programmes on a is to provide facilities for rural the objectives of private sector commercial basis from 2009. underprivileged youth to enter the organizations. Marketing classes are IT world, through basic computer conducted at the business schools The objectives of these programmes training in close proximity to in collaboration with the Sri Lanka are: their residence, and sit for the Institute of Marketing (SLIM). A examinations conducted by the formal MOU was signed with SLIM • Improve communication between university. on 3rd March 2009 to conduct SLIM the Tamil and Sinhala business classes in Kurunegala, Kandy, Galle, communities in war-affected The computer training institutes are Gampaha, Chilaw and Vavuniya districts and border districts registered at the chambers/IBISs, business schools. and existing teaching staff of the • Improve business communication private training centres which 6. Office Management and among entrepreneurs of the North are registered at the chambers/ Secretarial Practice and South business schools are trained by the (FCCISL Course) university to enable them to deliver • Prepare youth to sit for Tamil/ the curriculum developed by the This course has been designed Sinhala language preliminary level university. At present, basic level to familiarize students with the proficiency examinations conducted programmes are conducted on a pilot practical inner workings of an by the DOL basis with the intention of expanding office including understanding all countrywide in 2009. aspects of office procedures. Course • Improve the communication contents include office organization, skills of employees of private sector 4. Human Resource specialized management and organizations. Management Programmes organization procedures, client relations, team concept, cash On completion of these two courses, Human Resource Management is handling, stress management, time examinations are conducted by the a key area to improve the skills management, mailing and meeting

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 competent in English, especially and gainful employment. After in grammar, reading and writing successful completion of the training and to use language techniques and examinations, trainees are effectively in a range of contexts. awarded a Diploma in Applied Familiarity with all mechanics of the Organizational Management and language vehicle offers the ability to Supervisory Skills Development. procedures and preparation of survive in any situation. The ultimate objective of the documents pertaining to a typical programme is to employ the trainees ofﬁce. 8. Diploma in Applied in private sector companies by 7. Practical English Organizational Management and the organizations conducting the (FCCISL Course) Supervisory Skills Development training. (Dip-in AOMSSD) No of trainees under the The main aim of this course is This programme is implemented programme: to encourage positive attitudes with the funding of the Asian towards learning English via a Development Bank through the Phase I 250 blended teaching methodology Ministry of Higher Education Phase II 950 and an extremely learner-friendly to train G.C.E. Advanced Level Phase III 850 environment. The learning (A/L) completers from low -income Total 2050 experiences provided in this syllabus families on career development will assist students to become

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 and diploma courses to groom Partner Organizations of participants on essential theoretical the Chamber Academies and practical knowledge required by Programme both the public and private sectors of the country. • National, regional and district 9. Tailor-made Programmes chambers and associations Seminars, Workshops and Special training programmes are Events organized by the • Institute of Human Resource designed and conducted at the Kurunegala Chamber Academy Advancement (IHRA) - University business schools on the request of of Colombo chambers, private sector companies Seminars organized by the and NGOs. Generally, half day to Kurunegala Chamber Academy • Ministry of Higher Education three day seminars and workshops - Distance Education are arranged under this category. Subject area No. of Modernization Project (DEMP) participants Progress of the Training • Department of Ofﬁcial Activities • Seminar on Taxation 39 Languages (DOL) • Seminar on Career 200 The FCCISL Chamber Academies Guidance • Sri Lanka Institute of conducted a range of certiﬁcate Total 239 Marketing (SLIM)

Another 185 students who got the training were sponsored by the FCCISL to follow the DAOM and SSD

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 The UPP curriculum aims to who are already employed in the enhance the employment prospects industry to gain post employment of individuals from all over Sri skills upgrading. In addition, the Lanka. The courses will take the centre provides company-specific students’ ICT knowledge above training for enhancing capacity and and beyond the basics, from the skills development. • Institute of Personnel mere use of computers for word Management (IPM) processing and communications to All training sessions are designed an industry- specific knowledge that based on the National Vocational • Ministry of Youth Affairs will aid them in innovating systems Qualifications of Tertiary and (Youth Corp) of their own towards greater Vocational Education Commission efficiency and productivity. (TVEC) and are in line with the FCCISL Launches Industry - City & Guild requirements. The Specific ICT Training HANDWERK CENTRE certificate issued on completion of (HwC) training is based on performance The FCCISL partnered with the and competence. It is certified Unlimited Potential Partnership Handwerk Centres are by the apex body in industry and (UPP) Programme of Microsoft construction industry-related commerce, the FCCISL; the apex to offer industry-specific ICT vocational training institutes. It body in the construction industry, courses through FCCISL Chamber is a collaborative effort between the NCASL; and the German Academics. FCCISL signed an MoU FCCISL, National Construction Handwerkcentre Koblenz as our with Infoshare (Gte) Ltd, which is Association of Sri Lanka (NCASL) training is on par with German the implementation partner of the and Handwerkskammer Koblenz, standards. Further, if they so wish, Germany (HwK). students can sit for the City & UPP Programme. Guilds qualifications as well at the Through this project, two vocational end of the training course. UPP is a multi-stakeholder training centres have been set initiative committed to workforce up - in Kalutara for the Western Handwerk Centre Western development in four specific Province and in Thirukkovil for Province – Kalutara industries: agriculture, apparel, the Eastern Province - with the (HwC WP) media and tourism. It brings objective of training construction together leading public and private industry skilled staff in masonry, Handwerk Centre Western Province sector partners. This initiative is a carpentry, building painting, (HwC WP) is situated in Dodangoda joint collaboration between USAID, welding, electrical wiring, air- Road, Malegoda, Payagala, Microsoft and the implementing conditioning and related fields. It Kalutara. partner, Infoshare. also offers opportunities for those

Mr. Kosala Wickramanayke exchanging the MoU with Welding workshop at HWC-Kalutara Ms. Harshi Hewage de Silva, Project Director of UPP Programme for Infoshare 44

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Corporate Training for on par with the National Vocational Orange Electrical Qualifications (NVQ). Two individuals were trained at HwC 15 individuals were successfully Kalutara and got certified by the trained in the ‘Industrial Electrician TVEC in 2009. Modular Course for Updating It is the first vocational training Practicing Electricians’, in Kalutara. Triple Benefit Project - centre initiated under this project. It These trainees are practicing Involving 14 Inmates of is accredited under TVEC (Reg. No: electricians from Orange Electrical Detention Homes PO3/0069) and City & Guilds (Reg. “Electricians Club”. No: 844098). Dr. Gayangi Heimendahl, fully Training for Distance funded the above project which HwC WP has so far trained 350 Education Modernization provided construction industry individuals, including 95 in 2009. Project related training to 14 inmates from the Detention Home in Halpathota Trade Testing for Welders by The Distance Education and Probation School in Hikkaduwa, the German Welding Society, Modernization Project (DEMP) selected by the Department of Handwerkskammer Koblenz funded by the Asian Development Probation and Child Care of and HwC Bank (ADB) is an initiative of the Southern Province. Ministry of Higher Education. The A trade testing event for welders DEMP aims to significantly increase They successfully completed was organized by the FCCISL in access to postsecondary education in theoretical training at the HwC July 2009 with the collaboration Sri Lanka through the development Western Province and also actively of Handwerkskammer Koblenz, of online distance learning. participated in the construction of Germany (HwK) for the third time. the Sports Pavilion of the Gemunu This enabled our welders to get Handwerk Centre Kalutara had Maha Vidyalaya in Netolpitiya , their skills certified by the renowned the opportunity to conduct training Tangalle, which provided on-the- German Welding Society. Seven for DEMP through the FCCISL. 36 job training under the supervision trainees successfully completed trainees trained under this initiative of the technical staff at the pavilion the test and received certificates by HwC Kalutara. construction site. from the German Welding Society. Certification facilitates these welders Training for NVQ to obtain highly-paid overseas jobs and upgrades their skills and The Handwerk Centre is registered expertise. under TVEC and conducts training

A trainee from the Department of Probation and Child Care (inmate of the Halpathota Detention Home) who successfully completed training at the Handwerk Centre in Kalutara and practical training at the construction of the Sports Pavilion at Gemunu Maha Vidyalaya in Netolpitiya in Tangalle is seen receiving his certiﬁcate from Dr. Gayangi Heimendahl (Donor of the Project) and FCCISL President, Kosala Wickramanayake.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 This project facilitated construction industry related training for inmates, provided them with practical orientation for the vocation while increasing employability once they are released and also provided much needed Sports Pavilion for the School. Netolpitiya Pavilion, which inmates of Probation and Childcare Homes helped to build. Handwerk Centre Eastern Handwerk Centre Eastern in, proper training and skills in the Province - Thirukkovil Province works in partnership construction field, and a locally (HwC EP) with the Rhineland Pfalz Project and internationally recognized and Handwerkskammer Koblenz, certificate after completing the Handwerk Centre Eastern Germany (HwK) to facilitate training, enabling them to pursue Province (HwC EP) is situated houses for people in Ampara a successful livelihood after the near Udayasooriyan Ground, project. Thirukkovil 01. It is the second The FCCISL carried out a initiative of the Handwerk Centre training and housing construction The process of the training; project, and is accredited under project through “Trainee Driven institutional training and on- TVEC (Reg.No: P18/0043) and City Methodology” very successfully in the-job training was provided & Guilds (Reg. No: 844098). the Ampara District in partnership simultaneously, and at the end the with the Rhineland Pfalz Project participants achieved the following: HwC EP has trained 354 individuals and Handwerkskammer Koblenz, so far, including 135 trainees in Germany (HwK). The Handwerk • Skills development in the fields of 2009. Centre trained unemployed people masonry, carpentry, plumbing from 22 families in Malwatta, who and electrical use their abilities and competencies to build their houses by themselves. • A completed house for every Ultimately, they get a home to live participant

• Recognized vocational training certiﬁcate after successful completion of training

• Experience in construction of middle-level houses

• Local and foreign employment opportunities in the construction industry

A happy family at Thambinayagapuram village

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 SPECIAL PROJECTS

Special Projects Division took over Business for Peace Forum (BPI responsibilities of the FCCISL Forum) is a dialog platform for CHEER Project. business and peace building issues between the business community Business for Peace Forum and important stakeholders in the peace building efforts of the The Special Projects Division BPI was the key national endeavour country. FCCISL selected speakers was originally created to handle of the FCCISL for fostering belonging to different political specialized projects of FCCISL. The peace and harmony through ideologies representing different Division managed the Business for entrepreneurial spirit. BPI which political parties, ethnic groups and Peace Initiative (BPI), Handwerk won two international awards in geographical representations in Centres, MetaMart Project and 2008, namely Asian CSR Award and order to reﬂect views of all important other non routine projects. With the Award for Brand Excellence in Social stakeholders in peace building. restructuring, the activities came Marketing, held three Business for under the purview of the Projects Peace Forums in the ﬁrst quarter of and Services Division, while the 2009, under the RCSL Project.

19th BPI Forum Chairman / Moderator 22nd January 2009 Mr. Ranel T Wijesinha International Management Theme Consultant “ Post-Conﬂict Development in Sri Lanka; role of the World Bank” Panel Mr. Mangala Yapa, Managing Speaker Director, Colombo Dockyard PLC Dr. (Mrs) Naoko Ishii Mr. Kushan Kodituwakku, Country Director, World Bank, Sri Managing Director, Orange Lanka and Maldives Electric

20th BPI Forum Speaker 19th February 2009 Hon. Vinayagamoorthi Muralitharan Member of the Parliament Theme “ Issues and Concerns in Post- Moderator Conﬂict Development of Eastern Mr. Gamini Herath Province” Management Consultant

21st BPI Forum Chairman / Moderator 30th April 2009 Mr. Ranel T Wijesinha International Management Consultant Theme “ Role of the Private Sector in the Panel Post-Conﬂict Development of the Mr. Hydery A Rehmanjee North and East of Sri Lanka” Chartered Insurer and former CEO and Director, Union Assurance PLC Speaker Mrs. Crysanthi Thambiah Hon. Douglas Devananda MP Deputy General Manager, - Network Minister of Social Services and Management, Hatton National Bank Social Welfare Mr. N R Gajendran Partner, Gajma & Co, Chartered Accountants.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 from diseases and discrimination emergency structures and clear the due to unstable situations. To area after the emergency response achieve this goal, the partnership is over. would utilize the technical expertise of Oxfam GB and the networks Joint Research and established across the island by Advocacy Project of FCCISL FCCISL. The long-term success of and Oxfam GB to Promote Series of BPI ‘s Business for Peace this partnership will be ensured by CSR for Sustainable Forums which commenced on 11th the decades of experience Oxfam GB Development and Poverty October 2006 ended on a successful has in responding to humanitarian Reduction in Sri Lanka note with the completion of the 21st emergencies, as well as the large forum. membership of FCCISL (which FCCISL entered into a Rs. 5 million spans 50 trade and industrial grant agreement with Oxfam GB FCCISL and Oxfam GB join chambers and business associations, Sri Lanka for the above-mentioned hands to provide assistance collectively representing over 12,500 project. during humanitarian legitimate business entities). emergencies This project seeks to understand Under the partnership, Oxfam how the business community in Sri With the objective of providing a GB will collaborate with FCCISL Lanka views the role of Corporate timely and effective response during and their member organizations Social Responsibility (CSR) in wider humanitarian emergencies caused to implement activities that reduce society; how it is currently engaging by natural disasters or conﬂict, the risk of disease and improve the in CSR and what the broader the Federation of Chambers of unsanitary conditions in the camps. impacts of these CSR practices Commerce and Industry of Sri are; and how to galvanise a more Lanka signed an MoU with Oxfam Activities agreed upon include strategic uptake of CSR as a poverty GB on the 27th of July 2009 in FCCISL and member organizations reduction tool. Beyond businesses Colombo. supplying labour and materials themselves, the project serves a for the construction of emergency wider, national purpose through its Through this partnership, the structures such as toilets, drainage, efforts to incorporate Sri Lanka’s organizations agreed to work water supply systems and shelters, private sector more strategically towards reducing the vulnerability and Oxfam GB and their partners in their work, and to promote its of affected civilians. They will providing the necessary technical potential in supporting sustainable particularly focus on women and support. The organizations will also development and poverty reduction. children, who are at greater risk work together to decommission all

Mr. Kosala Wickramanayake, President of FCCISL is seen signing the MOU with Ms Joan Summers, Country Director of OXFAM GB Sri Lanka and exchanging the MOU.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 by FCCISL to promote sustainable household income and food security, CSR practices among the business (b) Producer organisations (especially community. The final report from women managed) have capacity KPMG - Oxford-UK is expected to be and skills necessary to represent released in the latter part of 2010 . their members effectively and (c) Relationship between different ethnic FCCISL extends services to the communities are strengthened. The project will explore the role North and East by partnering of FCCISL in supporting the with OXFAM in the EU-ACAP Named FCCISL CHEER Project private sector to strategize, plan Project (CHAMBER-NETWORK and implement CSR initiatives; ENGAGEMENT IN ECONOMIC and develop the capacity needed by FCCISL further extended its services REHABILITATION) , this Rs.266 FCCISL to promote CSR practices to the North and East when it signed Million project for 2009/2013 period among the business community. an agreement with Oxfam GB on 12th would work with the national and October 2009 as one of the national regional partners of Oxfam. FCCISL entered into an engagement implementing partners of OXFAM, agreement with KPMG Executive in the EU – ACAP 2009/2013 Project The National Implementing Partners Search (Pvt) Ltd., to conduct the (European Union Assistance for of OXFAM in the EU-ACAP Project study. Conflict Affected People), fully funded are, Federation of Chambers by the European Union. of Commerce & Industry of Sri The findings and process Lanka (FCCISL), Centre for Policy recommendations of the research will It would implement the project in Alternatives (CPA), Lanka Jathika provide ‘business case’ and practical association with the district Chambers Sarvodaya Shramadana Sangamaya (rather than theoretical) guidance of Commerce and Industry of Ampara, ( Sarvodaya.) for the business community, donor Batticaloa, Trincomalee, Vavuniya agencies, international and local NGOs and Mannar with the objective of The Regional Implementing Partners and the government to move from contributing to the achievement of of OXFAM in the EU-ACAP Project discussion to action. three key results selected out of the are Federation of Social Development seven overall key results of EU ACAP Organisation (FOSDO), Social The research findings are to be used Project. They are (a)Women and Welfare Organisation Ampara District as a guide by FCCISL in supporting men of IDP families, have capacity (SWOAD), National Gender and the private sector to strategize, plan to pursue their choice of economic Community Development Organisation and implement CSR initiatives; activities to significantly improve their (N-GACDO), Eastern Self Reliant and develop the capacity needed Community Awakening Organisation (ESCO), Social Economic Development Organisation of Trincomalee (SEDOT), Sarvodaya ( District Offices)

The geographical concentration of the project would be the Districts of Ampara, Batticaloa, Trincomalee, Vavuniya and Mannar with concentration on 90 villages in the East and 60 villages in the North and a total of 35,000 farming households.

The CHEER project would get off the ground in January 2010. FCCISL President Mr. Kosala Wickramanayake and Oxfam GB Acting Country Director Mr. Rene de Vries at the occasion of signing the agreement.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Embassy of Japan, Embassy of the President and Assistant Republic of Iran, Embassy of the Secretary General attend Russian Federation, High Commission SEEP Network Annual of Canada,Embassy of the USA, High Conference in USA Commission of Malaysia were among many donors present, The SEEP Network Annual FCCISL Donor Conference Conference held in Washington from Addressing the distinguished gathering November 2nd-6th 2009 attracted North and East Back to Business President Kosala Wickramanayake 617 participants representing 227 Project concept presented to Donors emphasized the need of the support of organisations from 57 countries. The the donor community to bring back participants included representatives With the dawn of peace to Sri Lanka, to business, the North and the East, from Africa, Columbia, Lao, FCCISL which has a proven track which have suffered for nearly three Bangladesh, America and England record for resurrecting of enterprises, decades as result of the conflict. among others, bringing together a with specific reference to the Back to wealth of experience around the globe Business Project, presented a concept Presentations were made by Mr. Sam for a truly global interaction on how paper on proposed North and East Stembo, Director - Special Projects micro-enterprise development could Back to Business Project to the donor Division and Mr. Gamini Sarath, strengthen collective global efforts to community. This is the first such post Director - RCSL Project conflict private sector lead initiative to improve the lives of the world’s most develop the North and the East. vulnerable populations. It was agreed to make individual presentations on agreed dates taking The event which was held at the Galle Sponsored by CORE Project of into consideration individual donor Face Hotel on 28th May 2009 attracted USAID and ILO, Mr. Kosala policies and country strategies. key donors including The World Wickramanayake and Assistant Bank, Colombo, UNIDO,USAID, Asia Secretary General Mr. Sam Stembo Foundation, Asian Development participated at this event. Bank, Australian High Commission, British High Commission, CIDA,

(L) Mr. Nimal Karunatilake, Minister (Commercial), Embassy of Sri Lanka in Washington, Ms Brooke Millis, CIPE Program Ofﬁcer South Asia , FCCISL President Mr. Kosala Wickramanayake and Mr. Sam Stembo Assistant Secretary General FCCISL.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 meet up with FCCISL officials in on Asia and brought new insights for Colombo in early 2010 to decide on the businesses, governments, NGOs and way forward. other CSR practitioners. Mr. Kosala Wickramanayake, President FCCISL Further FCCISL officials extended and Mr. K. Nanthakumaran, Head of Impressed by the positive work record their discussions with Ms Esperanza Finance, Monitoring and Evaluation of FCCISL on MSME development, Gomez Jelalian, Director, South represented FCCISL in this summit FCCISL’s application for the Asia, Asia Department, International which was held from 27-28 October, Membership of SEEP was approved Division of the Chamber of Commerce 2009 in Kuala Lumpur, Malaysia. by the Board of SEEP. FCCISL is of the United States of America and currently the only member of SEEP in discussed matters of mutual interest. Learning’s from this summit, Sri Lanka. facilitated FCCISL to move with CSR Asia Summit 2009 the “Joint Project of Oxfam GB The key lessons from the program and FCCISL promoting CSR for in the area of Micro Enterprise Running for the 7th time in 2009, Sustainable Development and Poverty Development, were subsequently the CSR Asia Summit is an annual reduction in Sri Lanka” in a more presented to the representatives of the flagship event of CSR-ASIA, which focused manner. regional chambers in Colombo. aims to be the most innovative and challenging conference on CSR in the During the visit Mr. Wickramanayake Asia-Pacific region. Amidst the global met with Ms Brooke Millis, Program economic crisis then, CSR was more Officer for South Asia of CIPE important than ever. With the theme (Center for International Private “Sustainable Business as the Road Enterprise) at its Headquarters in to Recovery”, the event explored Washington on 7th November 2009 the key CSR issues and strategies to and further strengthened ties demonstrate leadership in times of between FCCISL and CIPE. It was turbulence. The topics were focused decided that the CIPE officials would

Mr. Kosala Wickramanayke President FCCISL giving commitment for IT and English Programme to HE Mahinda Rajapaksa, President of Sri Lanka

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 SMALL AND MEDIUM ENTERPRISE DEVELOPMENT

contributing towards the balanced • Improving quality and and sustainable socio-economic productivity development of the nation. • Protecting the environment Objectives Introduction Challenges and Opportunities SMED was conceived with the Small and Medium Enterprise objective of developing and In today’s globalized economy, Developers (SMED) is a project promoting a free-market based the challenges facing businesses of the Federation of Chambers economy, by improving the are enormous. They cannot of Commerce and Industry of Sri efﬁciency and competitiveness remain mere suppliers of goods Lanka (FCCISL) in collaboration of individual Small and Medium and services, but should cater with the Friedrich-Naumann Enterprises, as well as strengthening to demand by providing suitable Foundation (FNF) of Germany. This and empowering organizations solutions developed through the project was established in 1989 with which represent the SMEs across proper blend of product utilities, a view to developing and promoting all sectors in the country. These supporting services and timely the Small and Medium Enterprise objectives are to be achieved delivery at the lowest possible (SME) sector in the country. through: prices. Business competitiveness has shifted from mass production with Vision • Accelerating industrial/ economic size and scale based advantages, development to ‘lean production’, where SMED shall be a ‘Centre of responsiveness, speed and constant Excellence’, the leading service • Creating employment and income re-invention reign supreme. provider, facilitator and the voice generating opportunities of Sri Lanka’s Small and Medium In this rapidly evolving Enterprise sector. • Enhancing export capabilities environment, SMEs are at a competitive disadvantage, in Mission • Improving the managerial and comparison to their larger marketing capabilities of SMEs. counterparts. SMED’s task is to To promote and foster business assist such organizations develop enterprises in Sri Lanka to be • Improving safety in the work their competitive edge to the highest professional, ethical, competitive, as environment possible level. well as responsible towards society and the environment, thereby

First Lady, Mrs. Shiranthi Rajapaksa at the Hands Lanka Exihibition 1st day Chief Guest of the Hands Lanka Exihibition, Hon. Tikiri Kobbekaduwa, Governor of the Central Province

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 (IFC) and Dialog Telecom, in • Ministry of Industries, successfully organizing this Central Province Exhibition at the Kandy City Centre from 02nd – 05th August 2009. • International Finance Functions and Services of Corporation (IFC) SMED since 1989 The primary focus of this exhibition was to create an open forum where • Dialog Telecom • Industrial Engineering and Small and Medium scale handicraft Technology Transfer Services manufacturers could meet expert • Wijeya Newspapers Ltd craftsmen from all over Sri Lanka. • Energy and Environmental The organizing committee comprised • SME Machinery Services the National Design Centre, Exhibition 2009 National Chamber of Handicrafts, • Enterprise Development Services Central Province Exporters SMED, together with the Ministry Chamber, National Crafts Council of Industrial Development, • Management and Consultancy and the Export Development Board. organized its fourth successful Services national level exhibition on 07th- ‘Soft openings’ were held on all 09th August 2009 on the theme • Agribusiness Development four days of the Exhibition. On the “Technology for Rural, Micro & Services first day (2nd August), Hon Tikiri SME Development”. Kobbekaduwa, Governor of the • Public-Private Partnership for Central Province, officiated as the The objective of this Exhibition SME Promotions and Market Chief Guest. The second day was was to enable the SME sector Linkage Services ‘Tourism Day’, where the Chief to enhance its technological Guest was Hon. Faizer Mustapha capabilities and emerge as an • SME Policy, Research and – Minister of Tourism Promotion. efficient and competitive force in the Advocacy Services The third day was ‘Gamata economy and be ready to face global Wasanthaya’ where the Chief Guest challenges. PUBLIC - PRIVATE was Hon. Sarath Ekanayake, Chief PARTNERSHIP FOR Minister - Central Province. Financial sponsorship for this SME PROMOTIONS Exhibition was provided by the AND MARKET LINKAGE The Chief Guest on the fourth day Friedrich Naumann Foundation SERVICES was Dr. Palitha Kohona, Secretary (FNF) and Ministry of Industrial to the Ministry of Foreign Affairs. Development. • Hands Lanka Exhibition On 05th August, the First Lady, 2009 - Handicraft and Mrs. Shiranthi Rajapaksa, visited Associate Partners are; Giftware Exhibition the Exhibition. • Ministry of Rural Indutries and SMED joined hands with Partners Self Employment Promotion Handwerkskammer Koblenz of Germany, the National Chamber • Handwerkskammer Koblenz of • Ministry of Enterprise of Handicrafts of Sri Lanka, the Germany Development and Investment Ministry of Industries, Central Promotion Province, with the support of the • National Chamber of Handicrafts International Finance Corporation of Sri Lanka

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Naumann Foundation – (FNF) also while providing investors with participated. a comprehensive outlook of the sector’s regional development. • Agri, Livestock,

• Ministry of Science and Fisheries SMEDEX 2009 • Asian SME Summit Technology Agri, Livestock, Fisheries SMEDEX The Asian SME Summit was held 2009, one of the most promising and from 6th – 8th August 2009, at the • Ministry of Export Development and International Trade enduring Exhibitions was held from BMICH. 20th – 22nd November 2009 at the The Associated Newspapers of Sirimavo Bandaranaike Exhibition Asian SME Summit was organized Ceylon Ltd (ANCL) was the print Centre, BMICH. as a Public Private Partnership media sponsor. (PPP) initiative of SMED, the The Hon. C B Ratnayake, Minister Ministry of Enterprise Development SME 2009 Machinery Exhibition, of Livestock Development was the and Investment Promotion, comprising more than 100 stalls Chief Guest at the inauguration Ministry of Foreign Affairs and the from over 75 organizations was a ceremony held on 20th November National Enterprise Development grand success, making an impact 2009. Authority (NEDA), in association among SME developers and policy- with the Asian Corporation Dialogue makers alike. Hon. Kumara The objective of this Exhibition (ACD). Welgama, Minister of Industrial was to develop human resources Development was the Chief Guest at and transfer of technology which is Inauguration of the Asian SME the Inauguration Ceremony on 7th suitable for future needs of all the Summit 2009 was held on 6th August August 2009. above sectors and to disseminate 2009 at Hotel Ceylon Continental, knowledge and provide advice and Colombo. The Chief Guest was Hon. The Exhibition was ceremonially guidance on sustainable economic Minister of Foreign Affairs, Rohitha declared open on 8th August 2009 development. Bogollagama. by the Acting Ambassador of the Embassy of the Federal Republic of The Exhibition comprised more The organizers invited four Germany, Dr. Stefan Weckbach. than 75 stalls and served as a distinguished researchers, namely, showcase of several agricultural, Prof. Sunil Mani, India; Ms. Sana Mrs Sagarica Delgoda, Country livestock and ﬁsheries products, Musharraf, Pakistan; Mr. Victor Representative of the Friedrich new technology, equipment and Abainza, Philippines and machinery as well as allied services Ms Ravipim Chaveeksuk from

Dr. Palitha Kohona, Secretary to the Ministry of Foreign Affairs An exhibitor explaining his products to Hon. Kumara Welgama, at the Hands Lanka Exhibition Minister of Industrial Development

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 ENTERPRISE • Support in developing realistic DEVELOPMENT SERVICES and well prioritized national business plans • National workshop on Thailand to present research Global and SME • Suggest regional measures to papers on their findings on SME Value Chains in Sri Lanka promote global and regional development. In addition, there value chains were several participants from ACD A national workshop was held member countries who presented in Colombo on 30th October There were approximately 50 country papers and success stories 2009 under the framework of the participants from various countries representing private, academic and on a variety of subjects. technical assistance of ESCAP on the Business for Development on related product sectors. The Summit was a resounding the theme “Creating an Enabling • Regional SME Environment for South Asian SMEs’ success, with around 25 foreign Value Chains in Sri Lanka participants, including those from Effective Penetration in Regional ACD member countries and 55 local and Global Markets”. Two-Day Workshop on 1st & 2nd participants. December 2009 at Cinnamon The workshop was organized by Lakeside, Colombo Friedrich Naumann Foundation the national steering committee (FNF), International Finance of Sri Lanka which comprised SMED organized this event in Corporation (IFC) and Dialog United Nations Economic and collaboration with the Ministry Telecom PLC rallied around Social Commission for Asia-Pacific of Enterprise Development and to make this event a success. (ESCAP), Ministry of Enterprise Investment Promotion and the Rupavahini Corporation and the Development and Investment University of Moratuwa with the Associated Newspapers of Ceylon Promotion, FCCISL and the support of ESCAP. Ltd (ANCL) were the media Faculty of Engineering, University sponsors of the Summit. of Moratuwa. The Workshop consisted of 8 sessions and the presentations Its main objectives were to: were based on the review of the Sri Lankan Industrial Development • Assist in finalizing the Strategies, especially on Rubber country study Products, Electrical/ Electronic Goods, Plastic Products and the cultivation of Coffee and Ginger.

Second day opening of the Machinery Exhibition by Dr. Stefan Weckbach Mr. Kosala Wickramanayake, President FCCISL lighting the oil lamp at the inauguration of the SMEDEX 2009. Hon. Ministor C B Ratnayake, Minister of Livestocks Development looks on 56

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 ESCAP’s Trade and Investment Division (TID), the implementing agency of this project activity, has appointed the Faculty of Engineering, University of Moratuwa, Sri Lanka, as the consultant for this task with the aim of conducting a national study for Sri Lanka within the perspective of the overall project in developing national action plans for the improvement of its business their chances of advancing their • Build awareness on environment for the facilitation business when the economy Anti-corruption Fundamentals of SME’s in reaching regional improves, they also endanger their and Business Integrity Concepts at and global markets through the ability to weather the storm. the regional level identification of opportunities in strengthening the SMEs’ export Mr. Glynn’s speech focused on the • Strengthen networks and build potential for a joint action program. importance of having a strategic coalitions amongst the corporate outlook even during an economic sector at the regional level • Forum on “Strategy meltdown and how management under Stress - Managing can address strategy in simple and • Create the foundation in in a Downturn” relevant ways to ensure the future developing a private sector success of their company. Noting charter of good governance for SMED organized a Forum that the key to ‘strategy under stress Federation members on 26 May 2009 on the above is discipline’, he drew from his theme in collaboration with the experience in the UK and addressed Regional Chambers of Gampaha, Chartered Institute of Management areas such as strategic positioning, Wayamba and Kalutara Accountants (CIMA) – Sri Lanka, strategic options, strategic participated at this workshop. with a view to assisting its members implementation and strategic risks. affected by the globle economic • MoU for the Establishment crisis. The guest speaker was • Workshop on Good of SMED Cells Mr. Glynn Lowth, the Global Governance for Regional President of CIMA. Chambers It has been decided to establish SMED Cells in the regional Synopsis: During times of economic Objectives of the Programme chambers where they will be guided upheaval and low availability of by the SMED in their process finance, there’s a real danger that • Build awareness in enhancing through an on-going mentoring corporate strategy can take a back Corporate Sector Governance and service and specific targeted seat to survival. But organizations Business Integrity in Sri Lanka training intervention in business that abandon strategic thinking not management and marketing, only run the risk of undermining

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 • Enhance communication INDUSTRIAL between cluster members and ENGINEERING AND decision makers in the government TECHNOLOGY TRANSFER to improve the business SERVICES environment for SMEs technical product development and administration. • Workshop on Technology • Strengthening the lobbying power and Methods used in of the cluster to create linkages The SMED cells will offer Silver/Gold/Rhodium training programmes to small and Plating • Minimize unethical business medium scale entrepreneurs to practices in the cluster improve their skills in accessing Project SMED organized a one market information and business day workshop on “Technology • Improvement of the knowledge development services. and Methods used in Silver/Gold/ of business management of cluster Rhodium Plating of Jewellery members An MoU was signed on 6th June 2009 for Local and Export Markets”. for the establishment of SMED Cells The workshop provided valuable Not only cluster members but at Regional Chambers with FCCISL knowledge on the identification of regional chambers will also benefit District Chambers of Commerce, in chemicals used for pre-treatment, by this programme, as they can Galle, Matara and Ratnapura. This preparation of Silver, Gold, increase their membership by was a Project of FCCISL and IFC Rhodium plating baths and how to providing better services for South Asia Enterprise Development solve problems in plating baths. entrepreneurs. Facility – SAEDF. • Nanotechnology Workshop • Regional Industry Cluster This is a project under FCCISL Series - Tapping the World Development Programme Regional Chambers Sri Lanka of Nanotechnology (RCSL) for the benefit of the Regional Chambers network. Business clusters were formed at Project SMED in collaboration with the following Regional Chambers, the National Science Foundation • Training Programme on considering the potential and organized a series of seminars in SME Promotion Policy suitability of the business sectors in 2009 to introduce Nanotechnology their respective areas. to Sri Lanka. The first seminar Training Programme on SME themed on “Tapping the World Promotion Policy held on 13th A cluster consisted of entrepreneurs of Nanotechnology” was held at to 28th August 2009 in Korea, of the same sector in order to find Galadari Hotel on 18th March 2009. organized by the Colombo Plan and sector-specific solutions for common Korea International Coorperation problems. Prof. Tissa Witharana, Hon. Agency (KOICA) and implimented Minister of Science and Technology by the Small and Medium Business Main objectives of this programme graced the event as the chief guest. Training Institute of Korea for are: 14 participants from 11 member The second and third seminars of countries. Ms. Renuka Rodrigo, • Strengthen selected clusters and the series were held in the months of Head of Project SMED represented maximize the utilization of the May and July. FCCISL in this programme. production capacity of cluster members

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 • Technology Transfer Visit on topics relevant to those who are to Auckland Chamber of interested in SME development. Commerce Participation at the Key Person’s • Go Green Conference on Forum are of a great advantage for Plastic and Polythene SMED joined hands with the both public and private sector as Auckland Chamber of Commerce, topics discussed at these monthly Teaming up with Toshiba New Zealand and organized a fora are timely and relevant to come Corporation, Singapore, John business delegation on an exposure up with day-to-day business issues. Keells Office Automation (Pvt) tour to the Auckland Chamber from Ltd and the Central Environment 22nd - 29th May with the objective of • Key Persons’ Forum Authority, Project SMED organized agribusiness technology transfer and Collection of Speeches a media conference and seminar on improvements of market linkages. 2008 the ‘Go Green’ Project which was held at the Central Environmental SME POLICY, RESEARCH All eight speeches of the Key Authority on 26th March 2009. AND ADVOCACY Persons’ Forums held during SERVICES the year 2008 were compiled and ‘Go Green’ is an initiative to presented as a publication on 19th dispose used original Toshiba toner • Key Person’s Forum February 2009 at Hotel Galadari. cartridges in an environmentally Hon Dr. Sarath Amunugama, friendly manner. The Go Green The Key Person’s Forum is an event Minister of Public Administration programme was launched in the organized monthly by the SMED. and Home Affairs, was the Chief year 2004. John Keells Office The objective of this programme Guest. Automation (Pvt) Ltd was the first is to provide a dialogue platform company in Sri Lanka to introduce for public and private sector The first copy of the book “Key a scientifically proven method entrepreneurs. Persons’ Forum Collection of for disposing toner cartridges, Speeches 2008” was presented which would help in preserving the Lectures and discussions of each to Dr Sarath Amunugama by environment. Currently Project forum are conducted by eminent Mrs. Sagarica Delgoda, Country SMED has also joined them in personalities both in the Public and Representative of Friedrich educating the general public on the Private Sectors in their relevant Naumann (FNF), under whose the project and its benefits to the fields who share experiences and patronage the Key Persons’ Forum environment. policy perspectives on a face-to- is held every month. face basis with the Guest Speaker

The ﬁrst copy of the “Key Persons’ Forum Collection of Speeches 2008” being presented to Hon Dr. Sarath Amunugama, Minister of Public Administration and Home Affairs by Mrs. Sagarica Delgoda

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 January 29 February 26 March 13 ‘Corruption: Causes and Impact on ‘How Sri Lanka’s Foreign Missions Can ‘Training and Supporting Women in Business & Society’ Help Develop our Economy’ Business’ Hon. Mohan Peiris, PC Dr. Palitha Kohona Ms. Naoko Ishii Attorney General Secretary, Ministry of Foreign Affairs Country Director, The World Bank, SL

Key Persons’ Forums 2009

March 25 May 28 ‘Role of Ombudsman and How Insurance ‘M-Commerce Policies and Beneﬁts to SMEs’ Holders can be Beneﬁtted and Protected’ Mr. Priyantha Kariyapperuma Dr. Wickrema Weerasuriya Director General, Telecommunication Insurance Ombudsman, Sri Lanka Regulatory Commission

July 30 September 24 December 03 ‘Youth & Women Entrepreneurship ‘Making Urban Development Business Friendly’ ‘Post Conﬂict Challenges of Sri Lanka’ – Sri Lankan Context’ Hon. Dinesh Gunawardena Hon. Mahinda Samarasinghe Ms. Tine Staermose Minister of Urban Development and Minister of Disaster Management and Director, International Labour Organization Sacred Area Development Human Rights

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 • Visit of the Members of the the selected regions of the conflict Royal Netherlands Embassy and Tsunami affected districts in This valuable publication, which Ampara, Batticaloa, Trincomalee is equally important for small and A group of members of the Royal and Vavuniya. medium developers , as well as those Netherlands Embassy, New Delhi, who are engaged in business, is India visited Sri Lanka from 23rd FCCISL has conducted several available at SMED. to 27th November, 2009. This capacity building programmes for delegation had a meeting to build the partners of GTZ supported • President of the Maldives up business relationships with projects. Major income generation Meets Sri Lankan SME local firms operating in fields of activities identified by the GTZ Sector agriculture, livestock, horticulture, project are currently operating in fisheries, etc., which was open the above districts without proper business coaching. During the visit of HE Mohammed to all sub-sectors in the field of Nasheed, President of the Republic agriculture. Therefore, prior to the of Maldives and a business commencement of appropriate delegation from the Maldives to MANAGEMENT AND CONSULTANCY SERVICES coaching methodology, it was Sri Lanka, small and medium deemed important to know about entrepreneurs of the country had • Conducting Feasibility the current status of the GTZ a valuable opportunity to meet Study for GTZ Project project partners’ potential in them. This meeting was organized Partners in Vavuniya, developing those businesses such as by Project SMED at the Colombo Batticaloa, Kinniya and working according to business plans, Hilton on 3rd January 2009. Arugam Bay achieving targets in businesses, Entrepreneurs of several sectors business registration, coordinating such as Agribusiness, Fisheries, The overall objective of the survey with relevant organizations, Packaging, Construction and Travel was to find the current state of technology support, access to service participated in this event. income generating activities of providers, present market linkages, the GTZ partners and prepare etc. Members of the SME sector in Sri a methodology for coaching and Lanka introduced their products to training to promote those business Such information was necessary to HE the President, and the Business activities. streamline coaching programmes for delegation and made arrangements GTZ partners, in order to improve to extend marketing opportunities in The concept was to improve the their income generation activities the Maldives. economic situation and livelihood in which was to continue as Phase 2 of the earlier program.

HE Mohammed Nasheed, President of the Republic of Maldives (3rd from left) and the business deligation at their meeting with Sri Lankan SMEs in Colombo

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 • Human Resource Development / by Mr. Kosala Wickramanayake, Capacity Building of bus company President FCCISL. Mrs. Sagarica • Consultancy on Forming staff and shareholders. Delgoda, Country Representative of Omnibus Companies FNF was also present at this Pilot projects were at Giriulla, occasion. SMED was assigned by the National Matara, Badulla, Ambalangoda and Transport Commission (NTC) for Kataragama As discussed there, a publication consultancies on the following areas; named ‘SMED 20 Years’ Footsteps’ SMED 20 Year Progress will be published in 2010. • Conducting of Awareness Programmes with regard to the At a brieﬁng presentation on the formation of Omnibus Companies progress of 2008 activities to SMED Board and Friedrich Naumann • Strategy for the formation of Foundation (FNF) during the visit Omnibus Companies, Registration of the Regional Director, Dr. René and Implementation as per the Klaff in April 2009, a memento was requirements of NTC. presented to the Regional Director

Mr. Kosala Wickramanayake, President, FCCISL (4th from right) along with others, offer a helping hand to the Speaker, Hon. W J M Lokubandara to plant the ﬁrst ‘Na’ tree at the compound of Speaker’s Residence.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 INTERNATIONAL AFFAIRS

Members are entitled to many We also conduct awareness privileges. One such benefit programmes on bilateral and is the SAARC visa. On the multilateral trade agreements such recommendation of the division, as SAFTA,ISFTA,PSFTA,GSP+, All international related matters they can obtain permanent multiple coupled with lobbying of import and including trade promotion are SAARC visa on their passports, thus export issues. overlooked by the International facilitating easy travel to all SAARC Affairs Division. nations. The division also intends to embark on the promotion of Foreign Direct This division has extensive Another important activity is Investment (FDI). international connections and is the arranging inward and outward trade focal point in Sri Lanka for the: delegations from numerous countries Membership Services in order to provide wider interaction • SAARC Chamber of Commerce for the Sri Lankan business • Confederation of Asia Pacific and Industry (SCCI) community. Chamber of Commerce and Industry (CACCI) - Lifetime • Confederation of Asia Pacific Facilitating foreign trade fair Membership was introduced Chambers of Commerce and participation is another major Industry (CACCI) activity. In this regard, we arrange • SAARC CCI membership Sri Lanka trade delegations to activities - Lifetime Membership • World Association for Small and many trade fairs around the was introduced Medium Enterprises (WASME) world, including the Re-Sale Fair- Karlshru-Germany, Kungming • SAARC Forum membership was • China Council for the Promotion Fair and Canton Fair in China on a introduced of International Trade (CCPIT) regular basis. • SAARC visa exemption for Membership of the above The division also performs the businessmen was initiated by this international organizations is open signing of MOUs with foreign division. to any individual or company from chambers, thus providing great the Sri Lankan business community opportunities for the Sri Lankan on the recommendation of FCCISL. business community to derive privileges conducive to smooth transactions.

Dr. Essam Abdullah Fakhro, Chairman of the Bahrain Chamber of Commerce Mr. Kosala Wickramanayake, President FCCISL exchaniging the MoU with and Mr. Kosala Wickramanayake, President FCCISL signing the agreement on Mr. Mukesh Malhotra President of the Mahratta Chamber of Commerce, the Joint Business Council. Industries and Agriculture, India 64

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Memorandums of Understanding (MoUs) signed between the FCCISL and the International Chambers

• FCCISL with Vietnam Chamber of Commerce, Industry and Agriculture

• FCCISL with Maharatta Chamber of Commerce and Industry

• FCCISL with Bulgaria Chamber of Commerce and Industry

Meeting with CCPIT Ofﬁcials at FCCISL • FCCISL with Baharain Chamber of Commerce and Industry

International Workshops and Seminars organized by the FCCISL

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Local Workshops and Seminars Organized by the FCCISL for the Sri Lankan Business Community

We Entertained International Trade Delegations from the following Bodies

H. E. High Commissioner of Trinidad and Tobago 9th February 2009 Trade Promotional Event

Myanmar Chamber of Commerce and 3rd August 2009 Industry Trade Delegation

Pakistani Business Delegation 14th August 2009

Maharatta Chamber of Commerce and Industry Delegation 2nd October 2009

China Council for the Promotion 14th December 2009 of International Trade (CCPIT) Ofﬁcials Delegation

CCPIT Ofﬁcials and Chinese Tea Trade Delegation 30th December 2009

3rd SAARC Business Leaders Conclave, Colombo

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Sri Lankan Trade Missions Overseas organized by the FCCISL

Sri Lankan business delegation with HE Mahinda Rajapakse, President of Sri Lanka and HE Baghdadi Mahmudi, Prime Minister of Libya at the Prime Minister’s Ofﬁce in Tripoli, Libya

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 especially for small and medium assured all help to the Sri Lankan enterprises. business interests in Dubai as he highlighted the role of Dubai as This agreement is based on a major re-export destination for Joint Efforts With COMSEC the common mission of the two Sri Lankan goods to the region in organizations to contribute to trade– view of the emirate offering strong led development by strengthening infrastructure facilities to all re- The Commonwealth Secretariat the competitiveness of SMEs and exporters while Dubai Chamber (COMSEC) is assisting the promoting their participation in facilitated B2B meetings and world- Government of Sri Lanka through international trade. class services to all its stakeholders the Ministry of International under its strategic objectives. Trade and Export Development Meeting with Heads of and the FCCISL to enhance the Sri Lankan Missions and FCCISL President highlighted the competitiveness of Sri Lanka’s Chamber Ofﬁcials in Dubai investment opportunities available trade facilitation efforts through the in the infrastructure sector as well as provision of technical assistance to FCCISL participated at the Activity the traditional tea market of which assess the country’s trade facilitation Planning Session with Heads of Sri Dubai is a substantial re-exporter systems and processes against global Lankan Missions in the Middle East, and the real estate market in Sri best practices and other competitor on the invitation by Hon. Rohitha Lanka was still holding strong. countries. Bogollagama, Minister of Foreign Affairs held in Dubai on 14 & 15 The meeting was also attended FCCISL - CBI Partnership January 2009. by HE Hamad Buamim, Director General, Dubai Chamber of The FCCISL signed a partnership Kosala Wickramanayake, FCCISL Commerce and Industry, HE Nizar agreement with the Centre for President met His Excellency Abdul Sardast Advisor Dubai Chamber the Promotion of Imports from Rahman Saif Al Ghurair, Chairman, and Sam Stembo, Director, Special Developing Countries (CBI) of the Dubai Chamber of Commerce and Projects of FCCISL and the two Netherlands to provide exports Industry, on 18th of January 2009 sides also exchanged mementoes support services to Sri Lankan in Dubai and discussed matters of solidifying their long-term trade ties. businesses involved in exports, mutual interest. HE Al Ghurair

His Excellency Abdul Rahman Saif Al Ghurair, Chairman, Dubai Chamber of Commerce & Industry (Center) Kosala Wickramanayake President FCCISL (L) HE Hamad Buamim, Director General, Dubai Chamber (R)

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Dissemination of Business Information from Foreign Sources

Disseminating international business information is one of the pivotal functions of this division.

The following information related to business opportunities received from numerous foreign sources connected to this division was disseminated among all afﬁliated chambers and trade associations of FCCISL, members of SAARC Forum, Sri Lankan members of CACCI and the associates of FCCISL during 2009. • Business opportunities for Sri Lanka in Colombia • Global Entrepolis @ Singapore 2009 and the APEC SME Summit 2009 • 4th Session of Bangladesh-Sri Lanka Joint Commission for Economic and Technical Cooperation • China Apparel Sourcing Tour - 18th - 23rd October 2009 • Visit of Chinese Delegation from CCPIT and the tea sector from Yunnan Province, China • Invitation CLIKTRONIKA 09 - Lessons from Renewable Energy • Dhaka International Trade Fair, 1st - 31st January 2010, Dhaka, Bangladesh • French company searching Sri Lankan suppliers of tea, spices condiments, foodstuff, beverages, jams, coffee and tobacco for niche market (gift packs) • Intention to import bicycles from Greece • International Fair in Dhi Qar Province in Iraq from 1st to 5th April 2009 • Netherlands assistance for pipes and process equipment • PUNE EXPO 2009 - Gateway To Unimaginable Business Opportunities : Theme: Business @ Innovation • Applications for 1st SAARC CCI Business Excellence Awards - Karachi, Pakistan • Dhaka International Trade Fair (DITF 2009), Dhaka, Bangladesh, 1st To 31st January 2009 • State Visit of His Excellency the President of Sri Lanka to Sri Lanka Business Forum, Istanbul, Turkey, 4th December 2008 • Furniture business with India • Information regarding entry visas to Iraq for businessmen and investors • Entertained proposals/suggestions/comments/inputs on possible/potential areas of business between Sri Lanka and Vietnam. • Invitation to 23rd CACCI Conference in Yokohama, Japan • Meeting between the Bulgarian business delegation accompanying the President of Bulgaria to Sri Lanka and Sri Lankan businessmen • Corrosion & Prevention Management Conference – 2009, Karachi, Pakistan • A Training Course on Skills for Trade Policy and Negotiations September 7th – 11th, 2009, Tagaytay City, Philippines • France – Searching potential suppliers in Sri Lanka • Trade and investment opportunities from Sri Lanka to Trinidad and Tobago • WTO notiﬁcations issued in January 2009

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 Participation at International For the above SAARC events, Workshops / Conferences by Mr. Hildon Hamangoda participated in the capacity of SAARC Desk in FCCISL Representatives Charge. • 23rd CACCI Conference in Yokohama, Japan Issuing of Certificates of May 31st- June 1st, 2009 Origin Mr. Kosala Wickramanayake President of FCCISL FCCISL began issuing certificates participated at this event of origin from May 2008. From a slow start, the division was able to • SAARC Trade Information Project issue an average of around 1000 OCM 116 - 17th February 2009 certificates per month during the Katmandu, Nepal period under review.

• SAARC Trade Information Project We feel confident that our service OCM 2 - 2nd - 4th April 2009 offers a better value addition. We lay FCCISL together with government officials celebrated the 25th Bentota, Sri Lanka emphasis on providing a quick and SAARC Charter Day by efficient service to clients, at very donating 100 ‘Na’ plants to reasonable rates. Viharamahadevi Park. • SAARC Trade Information Project Here Mr. Kosala Wickramanayake OCM 3 - 16th June President FCCISL, planting a ‘Na’ plant at the park. Government and Katmandu, Nepal FCCISL officials are also seen in the picture.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 HUMAN RESOURCE MANAGEMENT AND ADMINISTRATION

• Foreign Trade and Export repetition of divisional activities. Promotion The 5 divisions after restructuring are given below. • Project SMED With the implementation of the • Projects and Services restructuring programme that came • Membership Services and CSR into effect on 1st August 2009, the • International Affairs human resource management and • Finance and Administration administration functions handled • HRM and Administration separately by two divisional heads • Human Resource, Training and came under the purview of one Study Programmes • Project SMED divisional head. • SAARC and International Affairs • Finance, Monitoring and Areas of responsibility Evaluation • Human Resource Development • Human Resource Management and Training • Staff Satisfaction Survey • Quality Assurance • PR and Events A Staff Satisfaction Survey was • General Administration • Information Technology, conducted during September 2009 Media and Communications in accordance with the quality • Transport standard requirements. Its prime Following a decision by the FCCISL objective was to identify employee • Building Maintenance Board of Directors, those 11 issues such as organizational and Security divisions were strategically reduced structure, infrastructure and work to 5 divisions, amalgamating environment pertaining to day- • Training and Development their services with extensive to-day operations and provide responsibilities to the respective solutions for those issues. • Welfare divisional heads, thus avoiding

HUMAN RESOURCE MANAGEMENT

• Structural Changes

At the beginning of 2009, the Federation had 11 divisions, as mentioned below. The heads of divisions were then designated as directors.

• Special Projects

• Regional Chamber Development

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 BUILDING MAINTENANCE AND SECURITY

• Through the owners of the • Staff Turnover Rate premises -“Unity Builders” - water seepage in certain areas of the building were attended to.

• A fairly large new overhead water tank was installed on the rooftop with an automatic cut-off system. The problems caused due to lack of water or overﬂowing of water were resolved by changing from the manual control system (which has been in place since the inception) to the automatic cut-off system.

TRAINING AND DEVELOPMENT

• As a CSR commitment, two induction training programmes were conducted during the year, initially for 4 new entrants to the • Annual Staff Performance 2008. Hence, the FCCISL had Sri Lanka Administrative Service Appraisals been compelled to shift to the new and subsequently for 10 new versions. recruits to the Sri Lanka Planning The staff performance appraisal was Service. This was done on carried out during the months of • Conduct of Quality Audit a request made by the Sri October/November 2009. Lanka Institute of Development During the second surveillance Administration (SLIDA). QUALITY ASSURANCE audit carried out on 12th May 2009 by SGS Lanka (Pvt) Ltd., the • Training on the E-sol system was The FCCISL has implemented existing version was transferred to conducted for new employees of ISO 9001: 2000 and SA 8000: the new version. It is evident that FCCISL. 2001 International Standards these certifications will strengthen since 2008 with the participation the administrative standards and • A “fire drill” was conducted with of all divisions. Last year, the procedures of the Federation the assistance of the Sri Lanka Air international organizations to be in line with international Force (SLAF) to create awareness authorized to formulate, restructure standards and add value to its own on precautionary measures to be and coordinate the above standards commitments. taken in case of a fire to safeguard changed the existing versions to the people and property in the ISO 9001: 2008 and SA 8000: Secretariat Building.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 • Hiring of vehicles from outside WELFARE

Hiring of vehicles from outside has • Staff and family get-together at been gradually reduced to almost a Excel World in Colombo, with the GENERAL complete halt by September 2009, support of the FCCISL ADMINISTRATION despite the fact that vehicular management movements have peaked due to • Working hours simultaneous events. • Health insurance scheme The working hours at FCCISL With this move, FCCISL was able to • Employee grievance handling was reduced by half an hour, save around Rs.350,000/- during the establishing the working time from and counselling year after payment of fuel bills to 8.00 am to 5.00 pm. the entire ﬂeet of vehicles. • Establishment of new divisions • Introduction of The new divisions created as a result “Fleet Insurance” system of the restructuring programme were relocated to suit the divisional The ﬂeet insurance system for requirements. FCCISL vehicles was introduced, resulting in a saving of around Rs. TRANSPORT 200,000/= during the year.

• Allocation of responsibilities to the drivers

The drivers were allocated with the responsibility of proper maintenance of all vehicles in the FCCISL ﬂeet.

FCCISL Chritsmas Party 2009 at Excel World, Colombo

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 FINANCE, MONITORING AND EVALUATION

a traditional book keeping unit to a Other activities that the Division management planning and control engages in are: unit. This change was seen as an important milestone by the Board. Providing up-to-date management At the inception, this division of It facilitated effective control over information (which has helped the the Federation of Chambers of implementation of projects and management in taking timely and Commerce and Industry of Sri internal control systems. effective decisions); controlling Lanka had just two members. It has overhead costs with the support since grown to become one of the The Division includes four finance of the internal control systems; most important divisions within the professionals who possess the achieving transparency in payments Federation. knowledge and competence to offer and purchasing procedures; necessary guidance on matters of handling inventory control systems The Finance Division assumed finance and internal control. and annual assets verification; responsibility for financial activities, The Division has, from time to assisting the biannual and annual general administration, purchasing time, upgraded the procurement external audits; facilitating systems, introduction of ISO systems, introducing physical assets frequent donor audits; cash flow 9001:2008 and SA 8000:2008 and verification in the FCCISL and management; budgetary control; procedure manuals up to May 2009. regional centres. and making timely investments in With the restructuring that took the money market. place in July 2009, this Division was It was also responsible for the made responsible for Monitoring and Federation’s system of internal Evaluation in addition to financial controls and for reviewing its control and purchasing systems. effectiveness. The system is designed to safeguard assets against The inclusion of Monitoring and unauthorized use or disposal and Evaluation to the Division paved the to ensure that proper records are way to restructure it with a Deputy maintained. It includes all controls Head who was in charge of internal covering financial, operational audit and control. With this change, and compliance, as well as risk the Division was transformed from management.

The Structure of the Division

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 ANNUAL REPORT OF THE BOARD OF DIRECTORS

The Directors of the Federation The requisite Financial Statements of DIRECTORS OF THE COMPANY of Chambers of Commerce and the Company are given on pages 81 Industry of Sri Lanka, a company to 96 of the Annual Report. The Directors of the Company limited by guarantee which was volunteer their time and do not incorporated in Sri Lanka under AUDITOR’S REPORT receive any remuneration therefore. the Companies Ordinance No. 51 of 1938, and thereafter was The Auditor’s Report on the The following were the Directors of re-registered under the Companies Financial Statements is given on page the company as at 31st December Act No. 7 of 2007, present their 80 of the Annual Report. 2009. Annual Report of the Board of Directors including the Financial SIGNIFICANT ACCOUNTING 1. Kosala Wickramanayake Statements and the Report of the POLICIES (President) Auditors thereon, for the financial year ended 31st December 2009. The Significant Accounting Policies 2. Tissa Jayaweera adopted in the preparation of the (Senior Vice President) The Financial Statements have Financial Statements are given in been prepared in accordance Note 1.2.5 of page 85 of the Annual 3. Anuruddha Kumar Mallimaratchi with the Sri Lanka Accounting Report. The accounting policies (Vice President) Standards as required by the Sri have been applied consistently to all Lanka Accounting and Auditing periods presented in these Financial 4. Nawaz Rajabdeen Standards Act No. 15 of 1995 and the Statements. (Immediate Past President) Companies Act No. 7 of 2007. INTEREST REGISTER 5. Shangmugam Thambiah The Directors wish to inform the Sinnathurai Arulananthan members that there has been no The Interest Register is maintained change during the accounting period by the Company as required by the 6. Ajith Waththuhewa in the nature of the business of the Companies Act No. 7 of 2007. The Company. The Company does not relevant information in respect of 7. Egallekande Arachchige have subsidiaries. the financial year under review is Nimal Susiri Perera set out in Note 25 to the Financial FINANCIAL STATEMENTS Statements on page 96 of the Annual The composition of the board Report. changed again on 05th January 2010. Section 168 (1) (b) of the Companies Act requires the Annual Report of DONATIONS the Directors to include Financial Statements of the Company in Donations made by the Company accordance with Section 151 of the during the said financial year Act. amounted to Rs. Nil

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 In terms of Article 40 of the • Particulars of any Relationship By order of the Board Articles of Association of the (other than that of Auditor) Company, Egellekande Arachchige which the Auditor has with or Nimal Susiri Perera was retired any interests which the Auditor Kosala Wickramanayake and Wegapitiya Kattadiyalage has with the Company President Hemachandra Wegapitiya was appointed on 05th January 2010 Based on the declaration made by the Executive Council of the by Messrs Kreston MNS & Co. Tissa Jayaweera Federation. (Chartered Accountants) and as Senior Vice President far as the Directors are aware, AUDITORS the Auditors do not have any relationship or interest in the Director The Auditors Messrs Kreston MNS Company other than what has BDO Secretaries (Pvt) Ltd & Co. (Chartered Accountants) been disclosed in the preceding Secretaries were paid Sri Lanka Rupees paragraph. 275, 000.00 for the ﬁnancial year ended 31st December 2009, as audit The Federation of Chambers of fees, by the Company. In addition Commerce and Industry of Sri to the payment of Audit fees, the Lanka Auditors were paid Sri Lankan Rupees 55,000.00 for non-audit- Dated on this 21st day of related services provided to the October 2010 Company by them.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 FINANCIAL REPORTS

Independent Auditor’s Report 80 Income Statement 81 Balance Sheet 82 Cash Flow Statement 83 Statement of Changes in Equity 84 Notes to Financial Statements 85

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 INDEPENDENT AUDITOR’S material misstatement. The Chamber has invested a sum of REPORT TO THE MEMBERS OF – Rs. 4,327,332.16 in Sterling Merchant An audit includes examining, on a Investments Ltd (SMIL). SMIL has FEDERATION OF CHAMBERS OF test basis, evidence supporting the invested their funds in Pramuka Bank and COMMERCE AND INDUSTRY OF amounts and disclosures in the Financial SMIL is unable to pay the depositors. SRI LANKA Statements. An audit also includes assessing the accounting principles used Therefore, recoverability of the fixed and significant estimates made by the deposits and share investments in Sterling Report on the Financial Statements Board, as well as evaluating the overall Merchant Investments Ltd amounting to We have audited the accompanying Financial Statement presentation. Rs. 4,327,332.16 is doubtful. A provision Financial Statements of FEDERATION has not been made against possible OF CHAMBERS OF COMMERCE AND We have obtained all the information losses. INDUSTRY OF SRI LANKA which and explanations which to the best of our comprise the Balance Sheet as at knowledge and belief were necessary for In our opinion, except for the effect of 31st December 2009, and the Income the purposes of our audit. We therefore the matters discussed in the preceeding Statement, Statement of Changes in believe that our audit provides a paragraph, so far as appears from our Equity and Cash Flow Statement for reasonable basis for our opinion. examination, the Chamber maintained the year then ended, and a Summary of proper accounting records for the year Significant Accounting Policies and other Opinion ended 31st December 2009 and the explanatory Notes exhibited on pages 81 Financial Statements give a true and fair to 96. 1. Advances - Rs. 9,898,601.38 view of state of affairs as at 31st December 2009 and its Deficit and Cash Flows for Board’s Responsibility for the Financial There were advances given to an the year then ended in accordance with Statements individual and the balance outstanding Sri Lanka Accounting Standards. The Board is responsible for the as at 31.12.2009 is Rs. 7,859,791/-. preparation and fair presentation of Report on Other Legal and Regulatory these Financial Statements in accordance A complaint had been made with the Requirements with Sri Lanka Accounting Standards. Criminal Investigation Department (CID) This responsibility includes: designing, on 11th November 2009 with regard to In our opinion, these Financial Statements implementing and maintaining internal the recovery of this amount and the CID also comply with the requirements control relevant to the preparation and had filed a case under No. B265/10 at the of Section 151 (2) of the Companies fair presentation of Financial Statements Magistrate Court, Fort, Colombo citing Act No. 07 of 2007. that are free from material misstatement, the individual as respondent. The Case whether due to fraud or error; selecting is now in progress. and applying appropriate accounting policies; and making accounting estimates Hence, there is a doubt as to the Kreston MNS & Co. that are reasonable in the circumstances. recoverability of the amounts given to CHARTERED ACCOUNTANTS him as advances. A provision has not Scope of Audit and Basis of Opinion been made against possible losses. Our responsibility is to express an opinion COLOMBO on these Financial Statements based 26TH AUGUST 2010 on our audit. We conducted our audit 2. Sterling Merchant Investments Ltd in accordance with Sri Lanka Auditing Standards. Those Standards require that we plan and perform the audit to Investment - Rs. 629,430.14 obtain reasonable assurance whether Fixed Deposit - Rs. 3,697,902.02 the Financial Statements are free from

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 INCOME STATEMENT

FOR THE YEAR ENDED 31.12.2009 31.12.2008 Rs. Rs. Note REVENUE Membership Fees 2 1,249,021.47 1,780,203.03 Grant Income 97,826,922.17 218,622,876.82 99,075,943.64 220,403,079.85

Other Income 3 134,646,424.12 134,918,235.82 233,722,367.76 355,321,315.67

LESS : EXPENSES Project & Administrative Expenses (234,719,724.47) (364,922,038.68) Other Expenses (662,148.26) (615,141.98) Finance Cost 4 (236,565.81) (329,272.99) Deﬁcit before Taxation 5 (1,896,070.78) (10,545,137.98)

Income Tax Expense 6 (2,388,008.00) (3,774,071.00) Deﬁcit for the year (4,284,078.78) (14,319,208.98)

The Notes on pages 85 to 96 form an integral part of these Financial Statements. Figures in brackets indicate deductions.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 BALANCE SHEET

BALANCE SHEET AS AT 31.12.2009 31.12.2008 Note Rs. Rs. ASSETS

Non-Current Assets Property Plant & Equipment 7 74,385,272.65 66,828,193.18 Investments in Shares 8 629,430.14 629,430.14 Fixed Deposits 9 36,547,120.63 96,263,812.99 111,561,823.42 163,721,436.31

Current Assets Inventories 10 72,926.47 71,981.47 Trade & Other Receivables 11 45,278,693.17 29,680,878.27 Investment in Financial Assets 12 17,991,770.71 - Cash at Bank & in Hand 13 89,189,384.63 18,682,950.94 152,532,774.98 48,435,810.68 Total Assets 264,094,598.40 212,157,246.99

FUNDS & LIABILITIES

Funds Accumulated Fund Unrestricted Funds 14 34,720,512.17 31,369,859.47 Restricted Funds 15 109,705,825.04 93,309,586.17 144,426,337.21 124,679,445.64 Other Funds 16 47,554,203.02 46,886,125.80 Total Funds 191,980,540.23 171,565,571.44

Non - Current Liabilities Deferred Income 17 20,358,877.43 - Retirement Beneﬁt Obligation 18 4,829,425.00 3,989,375.00 Net Liability to the Lessor 19 - 615,048.63 25,188,302.43 4,604,423.63

Current Liabilities Net Liability to the Lessor 19 615,048.63 701,958.06 Trade & Other Payables 20 27,447,511.31 31,947,937.86 Income Tax Liabilities 21 1,105,503.26 2,133,492.06 Bank Overdrafts 13 17,757,692.54 1,203,863.94 46,925,755.74 35,987,251.92 Total Funds & Liabilities 264,094,598.40 212,157,246.99

The Notes on pages 85 to 96 form an integral part of these Financial Statements. I certify that the above Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

………………………….. Head of Finance Monitoring & Evaluation

The Board is responsible for the preparation & fair presentation of these Financial Statements.

Approved and Signed for and on behalf of the Board.

………………………….. ………………………….. President Director 26th August 2010. 82

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 CASH FLOW STATEMENT

FOR THE YEAR ENDED 31.12.2009 31.12.2008 Note Rs. Rs.

CASH FLOW FROM OPERATING ACTIVITIES Deﬁcit before Taxation (1,896,070.78) (10,545,137.98)

Adjustments : Provision for Retiring Gratuity 18 926,675.00 1,250,075.00 Depreciation 7 14,973,513.38 14,781,526.63 Adjustment 113,444.21 - Finance Cost 4 236,565.81 329,272.95 Proﬁt on Disposal of Property, Plant & Equipment 3 (22,815.00) Deferred Income written back (1,071,519.87) - Interest Income 3 (6,293,577.14) (9,630,135.31) Operating Income before Changes in Working Capital 6,966,215.61 (3,814,398.71)

(Increase) / Decrease in Inventories 10 (945.00) (60,925.47) Trade & Other Receivables 11 (15,904,300.63) (11,875,332.39) Increase / (Decrease) in Trade & Other Payables 20 (4,500,426.55) 6,508,971.39 Cash used in Operations (13,439,456.57) (9,241,685.18)

Gratuity Paid 18 (86,625.00) (288,000.00) Income Tax Paid & W.H.T 21 (3,415,996.80) (2,993,305.90) Interest Paid 4 (80,920.95) (14,446.24) Net Cash used in Operating Activities (17,022,999.32) (12,537,437.32)

CASH FLOW FROM INVESTING ACTIVITIES Purchase of Property, Plant & Equipment 7 (22,531,276.85) (1,845,814.58) Proceeds from Disposal of Property Plant & Equipment 23,499.00 - Investment in Fixed Deposits net of Withdrawals 9 59,716,692.36 50,868,629.81 Investment in Financial Assets 12 (17,991,770.71) - Interest Received 6,600,062.87 10,625,667.85 Lease Instalments Paid 19 (857,602.92) (1,365,153.92) Net Cash from Investing Activities 24,959,603.75 58,283,329.16

CASH FLOW FROM FINANCING ACTIVITIES Collection for Funds net of Transfers 17 668,077.22 (30,803.00) Restricted Funds Received (Net) 23,917,526.14 (57,600,120.70) Deferred Income Received 17 21,430,397.30 - Net Cash from / (used in) Financing Activities 46,016,000.66 (57,630,923.70) Net Increase / (Decrease) in Cash & Cash Equivalents 53,952,605.09 (11,885,031.86) Cash & Cash Equivalents at the beginning of the period 17,479,087.00 29,364,118.86 Cash & Cash Equivalents at the end of the period 13 71,431,692.09 17,479,087.00

The Notes on pages 85 to 96 form an integral part of these Financial Statements.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31.12.2009

Accumulated Unrestricted Other Total Restricted Funds Funds Funds

Rs. Rs. Rs. Rs.

Balance as at 31st December 2007 13,578,164.91 45,689,068.45 46,916,928.80 106,184,162.16 Surplus / (Deﬁcit) for the year - (14,319,208.98) - (14,319,208.98) Receipts & Adjustments 176,979,682.27 - 274,325.00 177,254,007.27 Transfer to Income Statement (97,248,261.01) - (305,128.00) (97,553,389.01)

Balance as at 31st December 2008 93,309,586.17 31,369,859.47 46,886,125.80 171,565,571.44

Surplus / (Deﬁcit) for the year - (4,284,078.78) - (4,284,078.78) Receipts & Adjustments 100,255,174.70 - 337,600.00 100,592,774.70 Transfer from Payables - - 330,477.22 330,477.22 Adjustment - 113,444.21 - 113,444.21 Transferred from Restricted Fund (7,521,287.27) 7,521,287.27 - - Transfer to Income Statement (76,337,648.56) - - (76,337,648.56) Balance as at 31st December 2009 109,705,825.04 34,720,512.17 47,554,203.02 191,980,540.23

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 NOTES TO FINANCIAL STATEMENTS

1 SUMMARY OF SIGNIFICANT Companies Act No. 07 of 2007. revision and future periods if the ACCOUNTING POLICIES The Financial Statements for the revision affects both current and year ended 31st December 2009 were future periods. 1.1 CORPORATE INFORMATION authorised for issue by the Board on 26th August 2010. Judgements made by the Board Federation of Chambers of in application of SLAS have a Commerce and Industry of Sri Lanka 1.2.2 Responsibility for Financial significant effect on the Financial is a Limited Liability Company Statements Statements. incorporated on 03.12.1973 under the Companies Ordinance No. 51 The Board is responsible for the 1.2.5 Significant Accounting of 1938 and re-registered under the preparation and fair presentation of Policies Companies Act No. 07 of 2007 and the Financial Statements. domiciled in Sri Lanka. The accounting policies set out below 1.2.3 Basis of Preparation have been applied consistently to all The registered office of the Chamber periods presented in these Financial is located at No.53, Vauxhall Lane, The Financial Statements of the Statements. Colombo 02. Chamber presented in Sri Lanka Rupees have been prepared on 1.2.6 Comparative Information The Chamber is a Trade Promotion accrual basis and under historical Organisation. cost convention. Previous year’s figures and phrases have been re-arranged, where Nature of Operations & Principal necessary to, conform to the current Activities : 1.2.4 Use of Estimates and year’s presentation Creating & maintaining conducive Judgements business Environment in the 1.2.7 Events Occurring after the country and assisting individual The preparation of Financial Balance Sheet Date businesses in their development Statements in conformity with needs. SLAS requires the Board to All material events occurring after make judgements, estimates the Balance Sheet date have been a) Playing proactive role in and assumptions that affect the considered and where appropriate evolving the Economic Policies application of Accounting Policies adjustments to or disclosures have of the Nation and the reported amounts of assets, been made in the respective notes to liabilities, income and expenses. the Financial Statements. b) Provide solutions to the business community and to The estimate and underlying 1.2.8 The Board has made an suggest pragmatic policies to assumptions are based on historical assessment of the Chamber’s ability the Government experience and various other factors to continue as a going concern in the that are believed to be reasonable foreseeable future, and they do not c) Professional approach for under the circumstances the results intend either to liquidate or cease evolving quick solutions to of which form the basis of making the operations. economic and industrial issues judgement about carrying amount of Assets and Liabilities that are not 1.3 FOREIGN CURRENCY 1.2. GENERAL readily apparent from other source. TRANSACTIONS Actual results may differ from those 1.2.1 Statement of Compliance estimates and judgemental decisions. The Financial Statements are presented in Sri Lanka rupees, The Financial Statements have Estimates and underlying which is the Chamber’s functional been prepared in accordance with assumptions are reviewed on and presentation currency. Sri Lanka Accounting Standards an ongoing basis. Revisions to (SLAS) adopted by the Institute of accounting estimates are recognised The functional currency is the Chartered Accountants of Sri Lanka in the period in which the estimate currency of the primary economic (ICASL) and the requirements of the is revised if the revision affects only environment in which the Chamber that period or in the period of the operates.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 All foreign exchange transactions 1.5 VALUATION OF ASSETS A revaluation of Property, Plant & are converted to Sri Lanka Rupees, AND THEIR BASES OF Equipment is done when there is a at the rates of exchange prevailing MEASUREMENT substantial difference between the at the time the transactions are fair value and the carrying amount effected. Assets classified as current assets of the asset and is undertaken by on the Balance Sheet are cash and professionally qualified valuers. Monetary assets and liabilities bank balances and those which denominated in foreign currency are expected to be realised in cash Where items of Property, Plant are retranslated to Sri Lanka Rupee during the normal operating cycle & Equipment are subsequently equivalents at the exchange rate or within one year from the Balance revalued, the entire class of such prevailing at the Balance Sheet date. Sheet date, whichever is shorter. assets are revalued at fair value. Non-monetary assets and liabilities Non current assets are those which are translated using exchange rates the Chamber intends to hold beyond When an asset is revalued, any that existed when the values were a period of one year from the increase in the carrying amount is determined. The resulting gains Balance Sheet date. credited directly to a revaluation and losses are accounted for in the reserve, except to the extent that it Income Statement. 1.5.1 Property, Plant & reverses a revaluation decrease of Equipment the same asset previously recognised in the Income Statement, in which 1.4 TAX Property, Plant & Equipment are case the increase is recognised in the stated at cost less accumulated Income Statement. Any revaluation Current Tax depreciation and accumulated deficit that offsets a previous surplus impairment losses. in the same asset is directly offset The provision for income tax is against the surplus in the revaluation based on the elements of the income The carrying values of Property, reserve and any excess recognised and expenditure as reported in Plant and Equipment are reviewed as an expense. Upon disposal, any the Financial Statements and is for impairment when events or revaluation reserve relating to the computed in accordance with the changes in circumstances indicate asset sold is transferred to retained provisions of the Inland Revenue that the carrying value may not be earnings. Act No. 10 of 2006 and amendments recoverable. thereto. Items of Property, Plant & All items of Property, Plant & Equipment are derecognised upon Social Responsibility Levy (SRL) Equipment are initially recorded at replacement, disposal or when cost. The cost of Property, Plant & no future economic benefits are SRL is payable at the rate of 1.5% Equipment includes expenditures expected from its use. Any gain on all taxes and levies chargeable as that are directly attributable to the or loss arising on derecognition of specified in the first schedule of the acquisition of the asset. The cost of the asset is included in the Income Finance Act. self-constructed assets includes the Statement in the year the asset is cost of materials and direct labour, derecognised. Turnover Based Taxes any other costs directly attributable to bringing the asset to a working Turnover based taxes include Value condition for its intended use, Depreciation Added Tax (VAT), and Nation and the costs of dismantling and Building Tax (NBT) Payable to the removing the items and restoring Provision for depreciation is Department of Inland Revenue. the site on which they are located. calculated by using straight-line The Chamber pays such taxes in Where parts of an item of Property, method on the cost of all Property, accordance with the respective Plant & Equipment have different Plant & Equipment, other than Statutes. useful lives, they are accounted freehold land, in order to write off for as separate items (major such amounts over the estimated components) of Property, Plant & useful economic life of such assets. Equipment.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 The estimated useful life of assets are accordance with the derecognition than temporary, in the value of as follows : policy. investments, determined on an individual investment basis. Assets Years The costs of the day-to-day servicing of Property, Plant & Equipment are 1.5.5 Impairment of Assets Machinery & Tools 10 recognised in the Income Statement. Office Equipment 10 The Chamber assesses at each Motor Vehicles 4 reporting date whether there is an 1.5.3 Finance Leases indication that an Asset may be Furniture, Fixtures & Fittings 5 impaired. If any such indication Computers Equipment 5 Property, Plant & Equipment on exists, or when annual impairment Sundry Assets 10 finance leases, which effectively testing for an Asset is required, Leased Motor Vehicles 4 transfer to the Chamber the Chamber makes an estimate Buildings 20 substantially all the risk and benefits of the asset’s recoverable amount. incidental to ownership of the leased An asset’s recoverable amount is The Chamber’s policy upto items, are capitalised and disclosed the higher of an asset’s or cash 31.12.2005 was not to provide as finance leases at their cash price generating unit’s fair value less depreciation on Property, Plant & and depreciated over the period the costs to sell and its value in use and Equipment purchased during the Chamber is expected to benefit from is determined for an individual year while full year’s depreciation the use of the leased assets. asset, unless the asset does not was charged in the year of disposal. generate cash inflows that are largely The corresponding principal amount independent of those from other Commencing from 1st January payable to the lessor is shown as assets or groups of assets. Where the 2006, depreciation is provided on all a liability. Lease payments are carrying amount of an asset exceeds Property, Plant & Equipment from apportioned between the finance its recoverable amount, the asset is the month the assets are available charges and reduction of the lease considered impaired and is written for use upto the month of disposal. liability so as to achieve a constant down to its recoverable amount. In rate of interest on the outstanding assessing value in use, the estimated Commencing from 1st January balance of the liability. The interest future Cash Flows are discounted to 2007, depreciation is provided on all payable over the period of the their present value using a pre-tax Property, Plant & Equipment from lease is transferred to an interest discount rate that reflects current the date the assets are available for in suspense account. The interest market assessments of the time value use upto the date of disposal. element of the rental obligations of money and the risks specific to the pertaining to each financial year is asset. The useful life and residual value of charged to the Income Statement assets are reviewed and adjusted if over the period of lease. Impairment losses recognised in the required, at the end of each financial Income Statement. year. 1.5.4 Investments An assessment is made at each 1.5.2 Subsequent Expenditure reporting date as to whether there Equity Investments is any indication that previously The cost of replacing a part of recognised impairment losses may no an item of Property, Plant & All quoted and unquoted securities, longer exist or may have decreased. Equipment is recognised in the which are held as Non-Current Previously recognised impairment carrying amount of the item if it is Investments, are valued at cost. losses, are reversed only if there has probable that the future economic The cost of investment is the cost of been an increase in the recoverable benefits embodied within the part acquisition inclusive of brokerage amount of the asset. Such increase will flow to the Chamber and its and costs of transaction. The is recognised to the extent of the cost can be measured reliably. The carrying amounts of long term carrying amount had no impairment carrying amount of those parts investments are reduced to recognise losses been recognised previously. that are replaced is derecognised in a decline which is considered other

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 1.5.6 Inventories respect of all employees including reliable estimate can be made of the those who have less than 5 years quantum of the out flow. Inventories (Stationery) continued service. are stated at cost. All contingent liabilities are In order to meet this liability a disclosed as a note to the Financial 1.5.7 Trade and Other provision is carried forward in Statements unless the outflow of Receivables the Balance Sheet, based on a resources is remote. half month’s salary as of the last Trade and Other Receivables are month of the financial year, for all All contingent assets are disclosed stated at the amounts estimated to employees for each completed year where inflow of economic benefits is realise. of service, commencing from the probable. first year of service. The resulting 1.5.8 Cash and Cash Equivalents difference between the provision 1.6.4 Trade and Other Payables carried forward at the end of a year Cash and Cash Equivalents comprise and the brought forward provision is Trade and other payables are stated cash and bank balances. Bank dealt within the Income Statement. at their cost. overdrafts that are repayable on demand and form an integral part However, as per the Payment of 1.6.5 Capital Commitments of the Chamber’s cash management Gratuity Act No. 12 of 1983 this are included as a component of liability only arises upon completion Capital commitments of the Cash and Cash Equivalents for the of 5 years of continued service. Chamber are disclosed in the purpose of the Statement of Cash respective Notes to the Financial Flows. This liability is neither externally Statements. funded nor actuarially valued. 1.6 LIABILITIES AND 1.7 INCOME STATEMENT PROVISIONS 1.6.2 Defined Contribution Plans - Employees’ 1.7.1 Revenue Recognition Liabilities are recognised in the Provident Fund and Balance Sheet when there is a Employees’ Trust Fund Revenue is recognised to the extent present obligation arising from that it is probable that the economic past event, the settlement of which All employees are eligible for benefits will flow to the Chamber is expected to result in an outflow Employees’ Provident Fund and the revenue and associated of resources embodying economic Contributions and Employees’ Trust costs incurred or to be incurred benefits. Obligations payable at the Fund Contributions in line with can be reliably measured. Revenue demand of the creditor or within respective Statutes and regulations. is measured at the fair value of the one year of the Balance Sheet date The Chamber contributes 12% of consideration received or receivable, are treated as current liabilities gross emoluments of employees to net of value added taxes. The in the Balance Sheet. Liabilities an approved Employees’ Provident following specific criteria are used payable after one year from the Fund and 3% of gross emoluments for recognition of revenue. Balance Sheet date are treated as of employees to the Employees’ non-current liabilities in the Balance Trust Fund. Grants Sheet. The Chamber’s policy upto 1.6.3 Provisions, Contingent 31.12.2007 was to recognise grants 1.6.1 Defined Benefit Assets and Contingent received for specified projects as Plan - Gratuity Liabilities income on a time basis, based on the expected duration of the projects. Provision has been made in the Provisions are made for all Financial Statements for retiring obligations existing as at the Balance Commencing from 1st January 2008, gratuities which may fall due for Sheet date when it is probable the Chamber has changed its policy payment under the Payment of that such an obligation will result in relation to recognition of grant Gratuity Act No. 12 of 1983 in in an out flow of resources and income as follows :

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 (a) Unrestricted Funds Other Gains and Losses Finance Cost

Unrestricted funds are those Net gains and losses of a revenue Finance cost comprises interest that are available for use by the nature arising from the disposal of payable on leases and borrowings. Chamber at the discretion of the Property, Plant & Equipment and Board, in furtherance of the general other Non-Current Assets including The interest expense component of objectives of the Chamber and investments are accounted for in the finance lease payments is recognised which are not designated for any Income Statement, after deducting in the Income Statement using the specific purpose. from the proceeds on disposal, the effective interest rate method. carrying amount of such assets and Surplus funds are transferred from the related selling expenses. 1.7.3 For the purpose of restricted funds to unrestricted presentation of the Income funds in terms of the relevant Donor Gains and losses arising from Statement, the “function of expense” agreements or with subsequent activities incidental to the main method has been adopted on the approval of the Donor. revenue generating activities and basis that it represents fairly the those arising from a group of similar elements of Chamber’s performance. (b) Restricted Funds transactions which are not material and aggregated, reported and 1.8 CASH FLOW STATEMENT Where grants are received for use presented on a net basis. in an identified project or activity, The Cash Flow Statement has such funds are held in a restricted Other Income been prepared using the “indirect fund account and transferred to method”. the Income Statement to match Other income is recognised on an with expenses incurred in respect of accrual basis. Interest paid is classified as an that identified project. Unutilised operating Cash Flow. funds are held in their respective 1.7.2 Expenditure fund accounts and included under accumulated fund in the balance Expenses are recognised in the sheet until such time as they are Income Statement on the basis of a required. direct association between the cost incurred and the earning of specific Where approved grant expenditure items of income. exceeds the income received and there is certainty that the balance All expenditure incurred in the will be received such amount is running of the Chamber and in recognised through debtors in the maintaining the Property, Plant and balance sheet. Equipment in a state of efficiency has been charged to Income Membership Fees Statement.

Membership Fees is recognised on Borrowing Costs an accrual basis. Borrowing costs are recognised as an Interest Income expense in the period in which they are incurred, except to the extent Interest Income is recognised on an that they are directly attributable accrual basis. to the acquisition, construction or production of a qualifying asset, in Rental Income which case it is capitalised as part of the cost of the asset. Rental Income is recognised on an accrual basis over the term of the lease.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 31.12.2009 31.12.2008 Rs. Rs. 2 - MEMBERSHIP FEES

Entrance Fees 10,000.00 5,000.00 Membership Subcription Income 1,239,021.47 1,775,203.03 1,249,021.47 1,780,203.03

3 - OTHER INCOME

Reimbursement of Expenses 33,180,383.16 - Interest Income 6,293,577.14 9,630,135.31 Deferred Income written back 1,071,519.87 - Advertising income 418,179.62 334,782.62 Foreign Exchange Gain 335.87 81,672.11 Training Programme Income 64,271,538.27 6,147,355.16 Accrued Expenses written back - 118,640.50 Hiring of Board Room & Multimedia 337,566.57 207,396.70 Application Income 40,312.38 56,173.64 Registration Fees 1,312,853.78 1,060,340.81 Sale of Publications 66,853.92 44,155.00 Stall Reservation Income - 12,393,904.33 Reimbursement of Expenses by Donors - 32,284,448.51 Reimbursement for Strengthening internal affairs - 347,883.52 SAARC Apex Body Income - 203,181.00 SAARC Trade Fair Income - 296,419.13 Donations Received - 21,900.00 Seminar & Workshop Income 171,775.67 2,005,919.62 Shipping Income - 45,806,940.55 Sponsorship Income 4,378,202.00 7,152,040.87 Exhibition income - 10,619,384.60 Co-ordination Fees 1,481,453.91 2,746,856.51 Project related Income - MGT 84,185.53 463,086.94 - TECH 1,892,465.81 935,191.32 - EE 98,992.18 4,347.83 Rent Income - 869.56 Certiﬁcate of orgin income 1,629,745.16 278,672.46 Consultancy income 89,843.75 577,108.74 Chamber Membership Income 18,000.00 15,000.00 NTC Omnibus Consultancy Income - 54,539.56 Facilitation Fees 407,677.35 14,434.79 Other Income 417,123.12 670,396.69 Meta Mart - Trade Link Income 227,189.58 206,209.66 - E - Banner Income - 115,217.39 - Job Registration Income - 23,630.39 Membership Subscription - FORUM 108,795.96 - Annual Library Membership Fee 2,386.45 - Share of Business Academy Income 25,000.00 - Chamber Academy Income 346,942.34 - SME Exhibition Income - Fisheries Exhibition 2,408,568.93 - - Machinery Exhibition 1,651,050.02 - - Handicraft Exhibition 1,442,584.14 - - Agri Business Exhibition 283,000.00 - Vehicle Hiring Income 600,000.00 - SMEDEX Exhibition Income 1,236,597.84 - Proﬁt on Disposal of Property, Plant & Equipment 22,815.00 - Asian Summit Income 230,660.50 - Income - RCSL 508,027.20 - Subsidiary Income - CAPCCI 749,303.75 - Project Income 7,140,917.35 - 134,646,424.12 134,918,235.82

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 31.12.2009 31.12.2008 Rs. Rs. 4 - FINANCE COST

Lease Interest 155,644.86 314,826.71 Overdraft Interest 80,920.95 14,446.24 236,565.81 329,272.95

5 - DEFICIT BEFORE TAXATION is stated after deducting all expenses including : Auditor’s Remuneration - 275,000.00 275,000.00 55,000.00 55,000.00 Depreciation 14,973,513.38 14,781,526.63 Staff Cost - Salaries, Overtime, etc 45,970,731.51 45,774,904.94 - Defined Contribution Plan Cost - EPF & ETF 4,737,339.34 6,667,034.13 - Defined Benefit Plan Cost - Gratuity 926,675.00 1,250,075.00 Donations 148,370.20 83,625.00 Net Expense from Shipping Services - 9,602,655.74

6 - TAXATION

Current Income Tax on Ordinary Activities On Income for the year 2,388,008.00 3,774,071.00 2,388,008.00 3,774,071.00

6.1 Corporate Tax

The Chamber is liable for Income Tax under Section 101 (2) of the Inland Revenue Act No. 10 of 2006 on either Investment Income or Trading Income whichever is higher at 20%.

6.2 Reconciliation between Surplus before taxation and current income tax on Ordinary Activities

Trading Income Deﬁcit before Tax (1,896,071.00) (10,545,138.00) Expenses Disallowed for Tax 16,898,124.00 17,580,137.00 Capital Allowances (9,433,535.00) (9,194,266.00) Allowable Income (12,049,478.00) (10,556,447.00) Adjusted Loss for the year from Business (6,480,960.00) (12,715,714.00)

Interest Income Interest Income 11,940,038.00 18,887,771.00 Less : Exempt Interest Income - (17,414.00) Tax Loss Brought Forward (34,421,293.00) (21,705,579.00) Tax Loss for the year (6,480,960.00) (12,715,714.00) Tax Loss Carried Forward 40,902,253.00 34,421,293.00 Taxable Income 11,940,038.00 18,870,357.00

Income Tax on Interest Income 2,388,008.00 3,774,071.00

Provision 2,388,008.00 3,774,071.00

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 7 - PROPERTY, PLANT & EQUIPMENT

7.1

Ofﬁce Motor Furniture & Computer Machinery 31.12.2009 31.12.2008 Land Building Equipment Vehicles Fittings Equipment Sundry Assets & Tools Total Total Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Freehold Cost Gross Book Value as at 1st January 8,560,000.00 23,208,186.78 8,658,044.90 23,117,085.35 13,332,569.60 15,296,135.01 2,615,629.21 15,139,429.69 109,927,080.54 108,081,265.96 Additions 11/1/10 - 21,430,397.30 22,395.50 - 55,000.00 1,006,512.34 16,971.71 - 22,531,276.85 1,845,814.58 Disposals - - (64,770.00) (43,065.00) (23,625.00) - (6,840.00) - (138,300.00) Gross Book Value as at 31st December 8,560,000.00 44,638,584.08 8,615,670.40 23,074,020.35 13,363,944.60 16,302,647.35 2,625,760.92 15,139,429.69 132,320,057.39 109,927,080.54

Depreciation - As at 1st January - 1,722,258.01 3,639,650.06 19,328,790.18 8,108,435.85 8,984,167.59 670,459.95 2,829,972.96 45,283,734.60 31,708,679.72 Charge for the year - 2,231,929.21 704,463.45 3,681,609.00 2,410,869.21 2,970,042.01 253,915.78 1,513,942.97 13,766,771.63 13,575,054.88 Disposals - - (64,770.00) (43,065.00) (23,625.00) - (6,156.00) - (137,616.00) - As at 31st December - 3,954,187.22 4,279,343.51 22,967,334.18 10,495,680.06 11,954,209.60 918,219.73 4,343,915.93 58,912,890.23 45,283,734.60

Net Book Value As at 31st December 8,560,000.00 40,684,396.86 4,336,326.89 106,686.17 2,868,264.54 4,348,437.75 1,707,541.19 10,795,513.76 73,407,167.16 64,643,345.94

Leasedhold

Cost Gross Book Value as at 1st January - - - 4,826,967.00 - - - - 4,826,967.00 4,826,967.00 Gross Book Value as at 31st December - - - 4,826,967.00 - - - - 4,826,967.00 4,826,967.00

Depreciation As at 1st January - - - 2,642,119.76 - - - - 2,642,119.76 1,435,648.01 Charge for the year - - - 1,206,741.75 - - - - 1,206,741.75 1,206,471.75 As at 31st December - - - 3,848,861.51 - - - - 3,848,861.51 2,642,119.76

Net Book Value As at 31st December - - - 978,105.49 - - - - 978,105.49 2,184,847.24

Net Carrying Value As at 31st December 2009 8,560,000.00 40,684,396.86 4,336,326.89 1,084,791.66 2,868,264.54 4,348,437.75 1,707,541.19 10,795,513.76 74,385,272.65 - As at 31st December 2008 8,560,000.00 21,485,928.77 5,018,394.84 5,973,142.41 5,224,133.75 6,311,967.42 1,945,169.26 12,309,456.73 - 66,828,193.18

7.2 The cost of Land & Buildings as at 31.12.2009 is represented as follows :

Land Location Extent Value Rs. Land of Dadalla - Galle 106 perches 3,710,000.00 Land of Dadalla - Galle 100 perches 3,250,000.00 Land of Thirukkovil - Ampara 1 Acre 1,600,000.00 8,560,000.00 Buildings Kalutara Vocational Trainning Centre constructed on Leasedhold Land in Kalutara 23,208,186.78 Training Centre constructed on land in Thirukkovil * 21,430,397.30 44,638,584.08

* The building is a donation from Handwerkskammer Koblenz, Germany

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 8 - INVESTMENTS IN SHARES

No. of Directors Shares Cost Valuation Rs. Rs.

Unquoted Sterling Merchants Investments Ltd. 62,943 629,430.14 629,430.14 629,430.14 629,430.14

Class of shares refers to Ordinary Shares

9 - FIXED DEPOSITS 31.12.2009 31.12.2008 Rs. Rs.

Commercial Bank of Ceylon PLC 22,044,218.61 62,875,423.17 DFCC Vardhana Bank 9,805,000.00 9,805,000.00 HNB - 300,000.00 People’s Merchant Bank - 14,000,000.00 Sampath Bank 1,000,000.00 5,000,000.00 Seylan Bank - 585,487.80 Sterling Merchants Investments Ltd. 3,697,902.02 3,697,902.02 36,547,120.63 96,263,812.99

10 - INVENTORIES

Stationery & Others 72,926.47 71,981.47 72,926.47 71,981.47

11 - TRADE & OTHER RECEIVABLES

Prepayments 1,161,345.19 1,672,980.63 Other Receivables 31,908,939.52 17,176,026.19 Advances & Deposits 12,208,408.46 10,831,871.45 45,278,693.17 29,680,878.27

12 - INVESTMENT IN FINANCIAL ASSETS 31.12.2009 31.12.2008 Rs. Rs.

Treasury Bills Commercial Bank - REPO/TSY/2009/190031737 14,000,000.00 - Sampath Bank - 0209078622 3,991,770.71 - 17,991,770.71 -

13 - CASH & CASH EQUIVALENTS

Cash at Bank 89,015,329.18 18,622,470.74 Petty Cash 174,055.45 60,480.20

89,189,384.63 18,682,950.94 Bank Overdrafts (17,757,692.54) (1,203,863.94) 71,431,692.09 17,479,087.00

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 14 - UNRESTRICTED FUNDS 31.12.2009 31.12.2008 Rs. Rs.

Balance on 1st January 31,369,859.47 45,689,068.45 Deﬁcit for the year (4,284,078.78) (14,319,208.98) Adjustment 113,444.21 - Transferred from Restricted Funds 7,521,287.27 - Balance on 31st December 34,720,512.17 31,369,859.47

15 - RESTRICTED FUNDS Transfer to Balance on Funds Received Income Receipts & Balance on 01.01.2009 during the year Statement Adjustments 31.12.2009 Rs. Rs. Rs. Rs. Rs.

Regional Chamber of Sri Lanka 88,639,519.03 68,291,000.00 (73,086,514.28) (7,521,287.27) 76,322,717.48 Corporate Social Responsibility 4,670,067.14 - (2,865,113.84) (1,804,953.30) - Socio Economic Development for Conﬂict affected Communities in Sri Lanka - 33,769,128.00 (386,020.44) - 33,383,107.56 93,309,586.17 102,060,128.00 (76,337,648.56) (9,326,240.57) 109,705,825.04

16 - OTHER FUNDS Research & IRMP Chamber Chamber Building Corpus Consultancy Revoling Endowment Development Welfare Operational Development Fund Fund Fund Fund Fund Fund Fund Fund Fund Total Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Balance on 1st January 2009 6,000,000.00 35,264,813.02 539,559.86 283,977.89 2,872,789.08 1,184,518.65 679,250.00 61,217.30 - 46,886,125.80 - Receipts ------269,600.00 - 68,000.00 337,600.00 - Transferrd from Payables ------330,477.22 330,477.22 Balance on 31st December 2009 6,000,000.00 35,264,813.02 539,559.86 283,977.89 2,872,789.08 1,184,518.65 948,850.00 61,217.30 398,477.22 47,554,203.02

17 - DEFERRED INCOME

Grant Received during the year 21,430,397.30 - Less : Deferred Income written back (1,071,519.87) -

Balance on 31st December 20,358,877.43 -

The above amount represents the value of the Thirukkovil Training Center, Building which was a donation from Handwerkskammer Koblenz, Germany. The value of the Building amounting to Rs. 21,430,397/30 is based on the value conﬁrmed by the donor. The building was constructed on land purchased by the Federation on 12th September 2007.

The donor has conﬁrmed in his letter of 15th December 2009 that they have “contributed LKR. 21,430,397/30 to the construction of a training center in Thirukkovil, Ampara District, constructed by Kanthy Associates in 2008. Funds were from the German State of Rheinland - Pfalz and channelled through our joint Chamber Development Project”. This is classiﬁed under Project & Services.

This amount is being written back to the Income Statement over the useful life of the building. i.e: 20 years from 01.01.2009.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 18 - RETIREMENT BENEFIT OBLIGATION 31.12.2009 31.12.2008 Rs. Rs. Gratuity Balance on 1st January 3,989,375.00 3,027,300.00 Provision for the year 926,675.00 1,250,075.00 4,916,050.00 4,277,375.00 Payments made during the year (86,625.00) (288,000.00) Balance on 31st December 4,829,425.00 3,989,375.00

19 - NET LIABILITY TO THE LESSOR 31.12.2009 31.12.2008 Rs. Rs.

Lease Liability Balance on 1st January 1,514,336.29 2,879,490.21 Amount paid during year (857,602.92) (1,365,153.92) Balance on 31st December 656,733.37 1,514,336.29

Interest In Suspense Balance on 1st January 197,329.60 512,156.31 Interest charged to Income Statement (155,644.86) (314,826.71) Balance on 31st December 41,684.74 197,329.60 Net Balance 615,048.63 1,317,006.69 Net lease liability due within one year (615,048.63) (701,958.06) Net lease liability due after one year - 615,048.63

20 - TRADE & OTHER PAYABLES

Accrued Expenses 19,020,375.92 19,631,532.06 Other Payables 8,427,135.39 12,316,405.80 27,447,511.31 31,947,937.86

21 - INCOME TAX LIABILITIES

Balance on 1st January 2,133,492.06 1,352,726.96 Provision for the year 2,388,008.00 3,774,071.00 4,521,500.06 5,126,797.96 ESC (828,764.80) (287,249.00) WHT (952,544.00) (1,993,056.90) Notional Tax (249,976.00) - Payments made during the year (1,384,712.00) (713,000.00) Balance on 31st December 1,105,503.26 2,133,492.06

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 22 - CAPITAL COMMITMENTS

There were no material capital commitments as at 31st December 2009.

23 - CONTINGENT LIABILITIES

There are no contingent liabilities which would require adjustments to or disclosure in the Financial Statements.

24 - EVENTS OCCURING AFTER THE BALANCE SHEET DATE

No circumstances have arisen since the balance Sheet date which would require adjustments to or disclosure in the Financial Statements.

25 - RELATED PARTY TRANSACTIONS

25.1 - FCCISL received a rent income of Rs. 354, 000.00 during the year 2009 from the International Chamber of Commerce Sri Lanka, on account of sub renting ground ﬂoor of the ofﬁce occupied by the FCCISL. Mr. Tissa Jayaweera is holding the positions of Senior Vice President of FCCISL and Chairman of International Chamber of Commerce Sri Lanka.

25.2 - Transaction with key mangerial personnel Key manaerial Personnel include members of the Chamber. There were no transaction with key managerial Personnel and their close family members during the year, other than what has been disclosed in the Note 25.1.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 NOTICE OF MEETING

FEDERATION OF CHAMBERS OF COMMERCE AND INDUSTRY OF SRI LANKA (FCCISL)

Notice is hereby given that the 36th Annual General Meeting of the Members of The Federation of Chambers of Commerce and Industry of Sri Lanka will be held on Monday, 15th November, 2010 at 10.30 a.m. at the Board Room (Level I) FCCISL, Federation House, No. 53, Vauxhall Lane, Colombo 02.

AGENDA 36.1 Reading the Notice convening the Meeting.

36.2 Conﬁrmation of the Minutes of the 35th Annual General Meeting.

36.3 To receive and adopt the Report of the Directors and the Audited Financial Statements of the Company for the Financial Year 01st January, 2009 to 31st December 2009 and the Report of the Auditors thereon.

36.4 To appoint Auditors for 2010 and authorize the Directors to ﬁx their remuneration.

36.5 Address by the outgoing President.

36.6 Conﬁrm the Appointment of the President in terms of the Article 60.

36.7 Conﬁrm the Appointment of Senior Vice President in terms of the Article 64.

36.8 Address by the Incoming President.

36.9 Announcement of Nominations for the Executive Council.

36.10 Any other Business of which due notice has been given.

NOTE : The meeting is being called by a shorter notice in order to comply with the Statutory Regulations. We trust all the members will agree to the shorter notice.

By Order of the Board A member entitled to attend and vote at the meeting is entitled to appoint a proxy (whether a member or not) to attend and vote instead of him. A form of proxy is enclosed with the Report for this purpose and members who are unable to attend are requested to kindly complete and return such form of proxy in due time, in accordance with the instructions noted on the form of proxy.

Sgd. BDO Secretaries (Pvt) Ltd. Corporate Secretarial Services.

29th October, 2010.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009 FORM OF PROXY

The Federation of Chambers of Commerce and Industry of Sri Lanka

We......

Of ...... being a member of The Federation of Chambers of Commerce and Industry of Sri Lanka hereby appoint :

......

Of...... as our proxy to vote for us on our behalf at the Annual General Meeting of the Federation to be held on 15th November, 2010 and at any adjournment thereof.

Signed on this ...... day of...... 2010.

...... Signature of Member

INSTRUCTIONS AS TO COMPLETION

1. Kindly perfect the Form of Proxy, by ﬁlling in legibly your full name and address, signing in the space provided, and ﬁlling in the date of signature.

2. Please indicate clearly how your proxy is to vote. If no indication is given the proxy in his discretion will vote as he thinks ﬁt.

3. The completed form of Proxy should be deposited at the Registered Ofﬁce of the Federation, at Level 03, No. 53, Vauxhall Lane, Colombo 02 before 10.30 a.m. on Saturday the 13th November, 2010 being 48 hours before the time appointed for the holding of the meeting.

Federation of Chambers of Commerce and Industry of Sri Lanka Annual Report 2009

CORPORATE INFORMATION

Name of the Company Federation of Chambers of Commerce and Industry of Sri Lanka

Legal Form Company Limited by Guarantee

Company Registration No. GA 446 dated 27/10/2009

Registered Ofﬁce Federation House, 53, Vauxhall Lane, Colombo 02, Sri Lanka

Nature of Business Trade Promotions and Providing Services to the Business Community

Board of Directors Mr. Kosala Wickramanayake Mr. Tissa Jayaweera Mr. Kumar Mallimaratchi Mr. Nawaz Rajabdeen Mr. S T S Arulananthan Mr. Ajith Wattuhewa Mr. Nimal Perera

Branch Ofﬁces Chamber Academy Kurunegala No. 56, Town Centre Building Mihindu Mawatha, Colombo Road, Kurunegala Chamber Academy Kandy No. 15/A, Siddhi Lebbe Mawatha, Kandy Chamber Academy Vavuniya Sathya Building, 01st Cross Street, Vavuniya Chamber Academy Gampaha 2nd Floor, Gampaha Pradeshiya Saba Building Miriswatte Junction, Mudungoda Handwerk Centre Western Province – Kalutara Dodangoda Road, Malegoda, Payagala, Kalutara Handwerk Centre Eastern Province – Thirukkovil Near Udayasooriyan Ground, Thirukkovil 01 Gampaha District Chamber of Commerce, Industry and Agriculture 2nd Floor, Pradeshiya Saba Complex, Miriswatta Junction, Mudungoda Gampaha

Bankers Commercial Bank PLC, Seylan Bank PLC, Sampath Bank PLC, People’s Bank, Hatton National Bank PLC

Auditors Kreston MNS & Co – Audit Services 50/2, Sir James Peiris Mawatha, P O Box 210, Colombo 02

P. E. Mathew & Company – Tax Services 94 1/4, York Building, York Street, Colombo 01

Secretaries Corporate Services (Private) Limited 216, De Saram Place, Colombo 10

BDO Secretaries (Pvt) Ltd – Appointed on 01/10/2010 “Charter House”, 65/2, Sir Chittampalam A Gardiner Mawatha Colombo 02

Lawyers F. J. & G. De Saram Attorneys-at-Law 216, De Saram Place, Colombo 10