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IMF OK's more funds, calls for further reforms
The International Monetary Fund (IMF) last week approved the release of the final tranche of $64 million (over six billion rupees) under the Stand-By Arrangement (SBA).

Sri Lanka had successfully met the performance targets under the SBA and would qualify for more low cost loans later this year if it continues economic reforms, an IMF statement said.

The final tranche was released after the IMF's Executive Board completed the third and last review of Sri Lanka's economic performance under the SBA. It was approved last April to shore up the island's foreign reserves, which had sunk to $942 million at the time.

It brings total disbursements under the IMF-supported programme to SDR 200 million (about US$266 million).

"Notwithstanding some policy delays and adverse external shocks, the Sri Lankan authorities have achieved their key goals of halting reserve losses within a flexible exchange rate system, initiating fiscal consolidation and reforms of the tax system and public enterprise operations," said Shigemitsu Sugisaki, IMF Deputy Managing Director and Acting Chairman.

With the latest injection of IMF funds, Sri Lanka's gross official reserves will rise to over $1.5 billion, and total external reserves to $2.4 billion, enough to cover almost five months of imports.

"The government has improved economic management and initiated important structural reforms under the SBA-supported programme despite difficult circumstances," Sugisaki said.

"Looking ahead, the government's challenge is to sustain the adjustment effort and press ahead with deeper structural reforms," he said.

"The structural reform agenda is linked closely to the government's poverty reduction strategy," he added. "Perseverance with these measures could pave the way for a Poverty Reduction and Growth Facility arrangement later in 2002."

The government's "key next steps" will be to strengthen the financial sector, restructure public enterprises with private sector participation, improve tax collection, and overhaul the priorities and governance of public expenditure, Sugisaki said.

"Initiation of labour market reform would also greatly facilitate the improvement of public sector effectiveness and promote private sector growth," he added.

The IMF statement also said its Executive Directors had commended the Central Bank for "prudent monetary management in a difficult environment."

Boosting health insurance needs
'The Role of the Insurance Industry in dealing with the challenges of Health and Long Term Care', was the theme of the recently concluded annual congress held by the Sri Lanka Insurance Institute last week which drew many eminent insurance and health professionals.

Picture shows Hema Wijeratne speaking at the meeting with (left to right) Chandra Schaffter, Darrel Zilva and Jagath Alwis.

The congress covered a range of topics from the future of health insurance in Sri Lanka and the role of the medical profession in making long term care a reality, to pension reforms.

Hema Wijeratne, a chartered insurance broker, spoke on 'the future of Health Insurance in Sri Lanka', citing statistics of insurance expenses in Sri Lanka which showed that in 2001 there were claims worth an estimated Rs 460 million, premiums of Rs 481 million and a loss ratio of 96 percent.

He said it should be the insurers aim to ensure that health insurance continues to provide services to the consumers at reasonable rates and be accessible to as many sectors of the society as possible. This could be made possible only by the cooperation of and maintaining a good rapport with, medical practitioners and private hospitals. (Marisa)

3 Coins wins rights at ICC tournament
The Three Coins Company has been awarded exclusive selling rights for beer at the forthcoming international cricket tournament in Colombo, following an evaluation of competitive bids, the company announced this week.

The contract worth US$ 20,000 (about Rs. 2 million) grants the products of Three Coins exclusive access to all matches as well as to all connected official functions from September 12-30.

Commenting on the company's success in securing this prestigious contract, Three Coins CEO Lasath Suriyapperuma said: "We have been informed by the tournament organisers that the Three Coins bid was the same as the competitor's in value terms. This means that qualitative features were the deciding factor in our selection."

As a speciality brewer, Three Coins has been obsessed with quality rather than the bottom-line" he said. This value-driven, long-term approach to business is obviously beginning to yield results."

He said the Three Coins Company would deploy nearly 170 personnel, including 30 to 40 "back-packers" with mobile dispensing units at the bigger matches to ensure easy access to chilled beer.

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