The National Chamber of Commerce of Sri Lanka NCCSL Building #450, D R Wijewardena Mawatha, Colombo 10, Sri Lanka. Web: www.nccsl.lk INTRODUCTION President’s Statement | Anual Report 2012/13 TheThe National Chamber Chamber of Commerce of Commerce of Sri Lanka of(then Sri Ceylon) Lanka was (then Ceylon) was foundedfounded in in 1948, 1948, soon aftersoon the after country the gained country independence gained from independence from BritishBritish colonial colonial rule. rule.Prime objectivePrime objectiveof setting up of the setting Chamber up was the Chamber was to establish a forum for the local business community. The foremost toobjective establish of the aChamber forum at for that the time localwas the business ‘Ceylonisation’ community. of trade as The foremost objectivethe policy climate of the was notChamber conducive atto nationalthat timeinterests. was the ‘Ceylonisation’ of tradeSubsequently as the incorporatedpolicy climate as wasa limited not conduciveliability company to national interests. in 1955, and charting a course initiated by its twenty-one Subsequentlyfounder members incorporated comprising leading as abusiness limited figures liability from company a in 1955, cross-section of the country’s communities, NCCSL today consists andof 600 charting corporate a members course and initiated is still growing. by its Moretwenty-one importantly founder members comprisingthe Chamber’s leadingassistance tobusiness over 2,500 figuresMicro, Small from and aMedium cross section of the country’sEnterprises, from communities, all parts of the country, NCCSL exemplify today NCCSL’s consists commitment of 600 corporate to achieving equitable development. members and is still growing. More importantly the Chamber’s assistanceThe Chamber hasto now over emerged 2,500 as a leadingMicro, national Small trade and promotion Medium Enterprises, organization in the country providing a variety of services to the Sri fromLankan all business parts community. of the Itcountry, has become exemplify the voice of NCCSL’sbusiness in commitment to achievingSri Lanka. equitable development. The Chamber has now emerged as a leading national trade promo- VISION tion organization in the country providing a variety of services to the SriTo beLankan the leading business source of servicescommunity. and assistance It hasto businesses become the voice of countrywide for the promotion of domestic and foreign trade with businessspecial emphasis in Sri on Lanka. the development of Micro, Small and Medium Enterprises. VISIONMISSION To provide trade promotion services and assistance required by businesses to function competitively in domestic and overseas markets Toand be to representthe leading them insource matters ofof common services and andindividual assistance interest to businesses countrywideat forums including for discussionsthe promotion and deliberations of domestic convened and by the foreign trade with specialGovernment. emphasis on the development of Micro, Small and Medium Enterprises.This will include enhancing the efficiency and competitiveness of enterprises countrywide and strengthening dialogue with the Government in order to maintain a conducive business environment. MISSION To provide trade promotion services and assistance required by businesses to function competitively in domestic and overseas markets and to represent them in matters of common and individual interest at forums including discussions and deliberations convened by the Government. This will include enhancing the efficiency and competitiveness of enterprises countrywide and strengthening dialogue with the Government in order to maintain a conducive business environ- ment. The National Chamber of Commerce of Sri Lanka 7 CONTENTS 03 Highlights of the Year 04 President’s Statement 06 Secretary General’s Report 08 Chamber Office Bearers 12 The Council 14 54th Annual General Meeting 20 Chamber Activities 44 Chamber Representation in Other Bodies 46 Sustainability Report 47 Corporate Governance 53 Financial Reports 74 Milestones and Key Achievements 79 Our Genealogy 81 Membership ANNUAL REPORT 2012/13 HIGHLIGHTS OF THE YEAR 2013 “Ayurveda Expo 2013” SME Development International Indigenous Five training programmes were held in Healthcare Exhibition and Anuradhapura, Ampara, Ratnapura and Kurunegala. International Symposium on Traditional Medicine. MOUs Organized by the National Chamber of Commerce of Sri Lanka in partnership with the Ministry of MOUs were signed with Czech Republic Chamber of Indigenous Medicine and Ministry of Industry & Commerce, CCPIT Beijing Sub Council, Belarusian Commerce Chamber of Commerce & Industry, Overseas Friendship Association of Hunan Province- China and Bengal National Chamber of Commerce. National Business Excellence Awards 2013 Held on 27 November 2013 for the 10th consecutive Member Support Activities year to benchmark the country’s businesses. NCCSL Members CEO’s Forum • 11 Monthly trade information bulletins • 3 Quarterly Chamber Newsletters • 6 Seminars 54th Annual General Meeting • 6 Workshops Held on Thursday, 24 January 2013 Representations Bilateral Trade Promotion Representations were made to: Exporters’ Forum, Ministry 8 seminars were held on bilateral trade between of Finance, Consumer Affairs Authority and Ministry of Sri Lanka and Germany, China, Bangladesh, Liberia, Livestock and Rural Development Korea, Japan, Cuba and Russia. Inward delegations came from China, Estonia, Liberia, Belarus, Sweden, Bengal, Bangladesh, Vietnam & Czech Republic. Outward delegations went to India, Thailand and China. Three business forums were conducted with the visiting delegations from Czech Republic, Bangladesh and Vietnam in November 2013 The National Chamber of Commerce of Sri Lanka (TNCCS)(NCCSL) 3 ANNUAL REPORT 2012/13 PrESidEnt’S StAtEMEnt The services to members in terms Sri Lanka’s economy proved to be resilient overcoming the gloomy global scenario, and grew at 6.4% although it is a drop from the 8.3% recorded an year earlier. The of enhancing their business Euro area remained weak and therefore, significantly affected our exports. The prospects and management US is showing signs of recovery and has recorded higher levels of employment which augurs well for our exports. Although many economists urge Sri Lanka’s capability exporters to focus on Asia and other emerging economies it has not been easy to move substantially away from the US and European markets. The depreciation of the Rupee has helped exporters and coupled with other initiatives has reduced It is with great pleasure that I present, on behalf imports. Many senior economists have commended the economic management of the Council, the Annual Report of the National by the Government although warning of a few areas of concern. Chamber of Commerce of Sri Lanka containing the financial report for the year ended 31 The recent corporate earnings have been disappointing and have affected March 2013 and a report on the activities up to different sectors in different ways. The drop in international gold prices has end November 2013. In the last couple of years affected many financial institutions requiring them to make provisions for possible we have had the Annual General Meeting in losses. Agriculture and tea plantations have been affected by the vagaries of January, which your Council believed was too weather. Government policy changes relating to duty structures have affected long a period after the end of the financial year, some importers significantly. As a result, the Colombo stock market activity has and decided to gradually advance the Annual been dull, although many believed that it will benefit from the low fixed deposit General Meeting so that it could be held within interest rates, making funds shift to equity investments instead. six months of the end of the financial year in terms of good corporate governance. Therefore, The new budget presented in November has been received well although there for a start, we decided to have the meeting in are concerns about the shift from an export-led growth to import substitution to December this year making it the second AGM protect the local industry. The incentives for acquiring of brands will augur well for for the year. 4 The National Chamber of Commerce of Sri Lanka (NCCSL) PRESIDENT’S STATEMENT ANNUAL REPORT 2012/13 the export industry. The Government’s policy on of foreign delegates. This exhibition gave a tremendous boost to the indigenous infrastructure development, support for research medicinal practices of Sri Lanka. and innovation, and support for professionals are very encouraging. The turnaround of the large The NBEA excellence model was revised substantially this year and a completely state owned utilities, too, is an encouraging sign new evaluation scheme was instituted. This was done by benchmarking some and so is the decision to re-capitalise SriLankan of the elements of the world famous Malcolm Baldrige National Quality Award and Mihin Air, a decision which was long overdue. framework of USA and the European Foundation for Quality Management The Government’s commitment to gradually (EFQM) Excellence Award. A first tier desk review panel was instituted and the reduce the budget deficit has to be commended. final panel of judges was expanded and consisted of top professionals. The award ceremony in November was held on a grand scale and was perhaps the best The National Chamber prepared a very ever. The Chamber staff have developed a very high capability to organise this comprehensive set of budget proposals