07th – 13th December 2009 FCCISL News Alert Weekly Business Highlight 07th – 13th December 2009 Content Page 1. DEVELOPMENT ECONOMICS 1.1 INTRODUCE QUALITY PRODUCTS, SAYS CEO 05 1.2 ‘EARLY EXIT’ FROM STIMULUS MEASURES COULD PROLONG JOB CRISIS – ILO 07 1.3 CENTRAL BANK, STATISTICS DEPT AND MINISTRY OF LABOUR WARN SL ECONOMY UNDER THREAT 09 1.4 SRI LANKA’S PER CAPITA INCOME GROWS FROM $ 1,000 - $ 2,200 11 1.5 STATE-OF-THE-ART EXHIBITION CENTRE IN JAFFNA 12 1.6 MORE BUSINESS OPPORTUNITIES IN NORTH AND EAST 13 2. MANAGEMENT 2.1 EXCELLENCE IN INTER-PERSONAL RELATIONS 15 2.2 PUBLIC – PRIVATE PARTNERSHIP CAN SOLVE THE PROBLEM? 18 2.3 WORKPLACE WELLNESS REVISITED 20 2.4 HOW CSR RELATES WITH HR 23 2.5 ILM TO GIVE LEADERSHIP SOLUTION TRAINING 26 3. ICT 3.1 SOUTH ASIA EXPERIENCES DOUBLE-DIGIT MOBILE GROWTH 28 3.2 RAILWAY TICKET RESERVATIONS THROUGH MOBILE PHONES 31 4. TRADE AND MARKETING 4.1 MARKET SAILING HIGH ON BIG DEALS 33 4.2 TEA AND APPARELS ‘DOING THE BARE MINIMUM’ 35 4.3 SL TEA MARKET IN US DOWN DUE TO LACK OF FUNDS 37 4.4 DAIRY INDUSTRY IN THE EAST DEVELOPED 38 4.5 TFFP CAN HELP INCREASE PRODUCTION AND CREATE JOBS 39 4.6 ADB DEAL WITH LANKA BANKS TO SPUR TRADE 40 4.7 DUBAI”NEEDS MORE TIME” DUBAI MARKET EXTENDS LOSSES, BONDS WEAKEN 41 4.8 THE WORLD OF BRANDS 43 4.9 CONTRACTING TRADE DEFICIT IS BAD NEWS 45 4.10 ATTITUDE CHANGE VITAL TO MAKE KITHUL A LUCRATIVE INDUSTRY 47 5. TOURISM 5.1 FEEL NEGOMBO 2009: BOOM OR BUST? 50 5.2 THE NEW COLOMBO - COCHIN CRUISE WILL BOOST LANKA’S TOURISM – MINISTER 51 2 FCCISL News Alert Weekly Business Highlight 07th – 13th December 2009 6. MONEY & BANKING 6.1 PUBLIC BANK COLOMBO BRANCH PROMOTES RETAIL BANKING 53 6.2 WORK PROACTIVELY TO KEEP BANKS SAFE 54 6.3 CB EXPLAINS NEW STATUS OF CEYLINCO COMPANIES 55 6.4 CRISIS PUTS 10 M IN POVERTY IN EUROPE, ASIA 57 6.5 SOUTH KOREA FREEZES KEY INTEREST RATE FOR 10TH MONTH 58 6.6 INDIRECT TAXES AFFECTING REAL WAGES, UNIONIST CALLS FOR INCREASES IN PERSONAL AND CORPORATE TAXES INDEBTEDNESS 60 6.7 CENTRAL BANK URGES CUT IN CREDIT CARD INTEREST RATES 61 7. STOCK MARKET 7.1 INDICES GAIN 63 7.2 COLOMBO SHARES MARGINALLY HIGH ON SEASONAL TRENDS 64 7.3 COLOMBO SHARES END AMIDST RISING POLITICAL UNCERTAINTY 65 7.4 SRI LANKAN SHARES UP ON BLUE CHIP BUYING 66 8. EXPORTS 8.1 EXPORTER GIVES APPARELS SECTOR MINUS MARKS DESPITE GSP PLUS 68 8.2 GEM AND JEWELLERY EXPORTS RECORD RS 41,985 M UP TO NOVEMBER 70 8.3 NEED TO FIND NEW EXPORTS THAT GO BEYOND TOKEN ‘JOBS’ CORPORATE ESTATES WANT SEPARATE SOCIAL INDICATORS 71 9. CLIMATE CHANGE 9.1 COPENHAGEN CLIMATE SUMMIT BEGINS TODAY 73 9.2 ON A WING AND A PRAYER... 76 9.3 UN SAYS CLIMATE FINALE MAY HAVE HAPPY ENDING 78 10. EMPLOYMENT 10.1 JOB RECOVERY COULD BE DELAYED –ILO 81 10.2 SL NEEDS JOB GROWTH STRATEGY 83 11. CONSTRUCTION INDUSTRY 11.1 KOKAVIL TOWER TO BE COMMISSIONED SOON 85 11.2 CONSTRUCTION ENGINEER BRINGS CREDIT TO SRI LANKA 86 12. SHIPPING INDUSTRY 12.1 OPENING OF NORTHERN ENTRANCE TO BOOST VOLUMES NEED TO FOCUS ON DEVELOPING SHIPPING 89 12.2 TRANSPORT ECONOMICS AND COMMERCIAL SHIPPING DEGREE LAUNCHED 91 3 FCCISL News Alert Weekly Business Highlight 07th – 13th December 2009 Development Economics 4 FCCISL News Alert Weekly Business Highlight 07th – 13th December 2009 Daily News – December 8, 2009 INTRODUCE QUALITY PRODUCTS, SAYS CEO: ANALYTICAL INSTRUMENTS ACHIEVES TARGETS Harshini Perera Innovative, economical and high quality products should be introduced to the surgical and healthcare sector. Analytical Instruments (Pvt) Ltd., has been the pioneer in introducing healthcare equipment to the country, Analytical Instruments (Pvt) Ltd., Chief Executive Officer, Damayanthi Rajapakse told Daily News Business. Q: What was the company’s growth last year? A: We have been in business for 20 years. We have had year on year growth and revenue of Rs.800 million last year. We have around 150 employees. We achieved our targets last year catering to the public and private sectors. Q: Were you affected by the economic recession? A: Our main portfolio is healthcare equipment. As a result of the global financial crisis, the resources available in the healthcare sector in the national budget and international partners reduced. The Government imposed some budget restrictions which froze spending on infrastructure and emphasized the importance of efficiency in the use of resources. Therefore, we encouraged public-private partnerships. There was an impact on cash flows as customers in the public and private sector took more time to settle payments. Since we were conscious of our expenditure the global recession did not have much of an impact on us. Q: How will you support the idea of rebuilding Sri Lanka after the war for it to be a prospe- rous country? A: Infrastructure facilities have to be improved for the country’s development and it needs high technology. We have been importing the latest technology from the world’s leading brands and manufacturers. We could disseminate knowledge in to many sectors of the country through this technology. It will enhance efficiency and the effective use of our resources in the country. It is important to train people by imparting knowledge to use technology. We have trained our employees along with our global partners so that they can acquire the latest technology. We have gone in to a public private partnership to assist in the rebuilding of the country. It is a timely decision taken for the efficient use of resources without waste. We supply, implement and support quality branded products that include medical diagnostic instruments, high technology analytical equipment and instrumentation, agricultural products, animal husbandry products, general laboratory products, reagents and consumables, glassware and chemicals throughout Sri Lanka through our network of regional sales personnel. Q: What are your future plans? A: We will import the best chemicals from the world’s leading manufacturers. We have introduced innovative and economical products for operations and surgery in the healthcare sector. 5 FCCISL News Alert Weekly Business Highlight 07th – 13th December 2009 We have focused on the improvement of agriculture and dairy products. We import products from countries such as UK, USA, France, Japan, China, India, Turkey and other European countries and received ISO 9001 and 2001 certification for the products. Profile Name: Damayanthi Rajapakse School attended: St. Bridget’s Convent, Colombo 7 Civil status: Married Professional qualifications: Fellow of the Chartered Institute and Management Accountants, Fellow of the Society of Certified Management Accountants, M.Sc in Management Experience: 25 years’ experience Sports: Netball, took part in Athletics Q: What is your advice to young people who wish to climb the corporate ladder? A: Everyone must have a goal in life and must demonstrate the initiative to achieve the goals. They have to be disciplined, honest, committed and have a sense of responsibility to achieve the goals on what Analytical Instruments (Pvt) Ltd., Chief they focus on. Executive Officer, Damayanthi Rajapakse. - Picture by Sumanachandra Ariyawansa Q: What is your philosophy in life? A: My philosophy is to trust in God and do what is right. I lead a life of integrity and simplicity. Q: What is the place you wish to visit in Sri Lanka? A: Udawalawe and the South Q: Which country do you wish to visit? A: Africa Q: How do you spend your leisure? A: I engage in social service, listen to music, read a lot on the internet and travel. 6 FCCISL News Alert Weekly Business Highlight 07th – 13th December 2009 The Island – December 8, 2009 ‘EARLY EXIT’ FROM STIMULUS MEASURES COULD PROLONG JOB CRISIS - ILO An "early exit" from support measures adopted in response to the global economic crisis could postpone a jobs recovery for years and render the fledgling economic upturn "fragile and incomplete", a new report by the research arm of the International Labor Organization (ILO) says. In a stark analysis of the impact of the global recession, the ILO’s World of Work Report 2009: The Global Jobs Crisis and Beyond, also projected that unless adequate measures are adopted and in some cases continued, more than 40 million people could drop out of the labor market. "Despite some initial signs of economic upturn and because of the significant rise in unemployment and in part time work, support measures should not be withdrawn too early" said Raymond Torres, Director of the ILO’s International Institute for Labor Studies and lead author of the report. "The global jobs crisis is not over," he added. "It is therefore crucial to avoid premature exit strategies. In short, the economic upturn will remain both fragile and incomplete as long as the jobs crisis continues. A real recovery will be achieved only when employment recovers." The report also indicates most of the failures of the financial system that lie at the root of the present crisis have not been tackled so far – another reason why early exit would be premature. This report complements earlier ILO analysis and policy messages. ILO Director-General Juan Somavia stated: "This report confirms that unless decisive measures to support employment are taken and sustained, genuine recovery with employment will be unnecessarily delayed. This crisis and the crisis before both illustrate the need to shift the policy paradigm to one centered on people’s needs for decent work." The report also observes that bringing persons back into productive employment sooner would be less costly for the public purse than taking action later.