Untitled Document

Big investors complain of inadequate govt support
Big investors have complained that despite government efforts to maximise private sector participation in the economy, the support they have received has been minimal.

Speaking at the recent Ceylon Chamber of Commerce business convention on the experiences of investing in Sri Lanka, Chief Operating Officer of Millennium Information Technologies Limited, Manju Hathtotuwa, said the government had initially made an offer to his company of a 35-acre land with all utility connections and infrastructure facilities provided. However, he said, all such promises were broken with three different lands offered and withdrawn, which left the company unable to commence building operations for 12 months.

"We used to constantly meet the authorities, and they used to keep giving us dates and promises that we would be given land." It was a real testing time for local partners who were unable to explain to the foreign investors the reason for such a delay.

"We didn't know what to tell them," he said. "We had the money but not the land."
Eventually, the government had provided them with a 17-acre land. However, the road has not been completed to-date.

Roberto Moran, Country Manager for Shell subsidiaries in Sri Lanka, said that though the government intended to create competitiveness in the liquid petroleum gas market, it had created an unequal playing field by providing its competitors with an undue advantage.

The government has accepted that Shell's prices were reasonable, he said. "The world petroleum prices have risen by 49 percent, but our prices have gone up by only seven percent." In Sri Lanka, it seems as if the larger the investment, the more vulnerable it is for political attacks, he said.

"It's amazing to see the parties that supported privatisation then, are now mounting an opposition to it." Moran called on the government to set up a regulator for the petroleum industry to deal with common issues such as pricing and safety.
Shell has been encouraged by the tremendous opportunities that have emerged in the island following the start of the peace process and has already begun conducting feasibility studies in several sectors, he said. (SG)

Pvt. sector still suffering from 'dependency syndrome'
The private sector should get out of its 'dependency syndrome' of always relying on the government and take the lead with their business strategies, a senior economist at a semi-government think tank has said.

The government is no longer equipped to play the role of 'Master Strategist' in the Sri Lankan economy, Dr. Saman Kelegama, executive director of the Institute of Policy Studies told the business convention organised by the Ceylon Chamber of Commerce.

There is a tendency to look at the State as the 'Master-Strategist'. Government policy has always taken precedence over business strategy. It is time that business strategy leads and policy follows, he said.

The need at present is to re-position Sri Lankan industries from being "a cheap supplier" to a sophisticated "high value-added differentiator". "Most Sri Lankan industries are functioning well below potential," Dr. Kelegama said.

Sri Lanka is known in tea as a 'commodity trader', in garments as 'a glorified tailor shop', in gems as 'a seller of stones' and in tourism as 'a sun and sand destination'. Sri Lanka seems to be still stagnating at the early stages of industrialisation, he added.

Dr. Kelegama said that the government has made a fresh beginning to create an enabling environment. This was clear in the budget presented in March 2002, in which no references were made to popular welfare measures that has pampered the population for far too long at the cost of industrial growth.

Ranel Wijesinghe, chairman of Ayojana Fund Management, stressed the importance of having a 'National Competitiveness Council' which would be an apex body in addressing competitiveness issues in Sri Lanka.

Since the council has to work on cross-sectoral policy issues, the NCC should liaise with government via the Ministry of Policy Development and Implementation. The NCC will consist of (in order of importance) the Prime Minister, cabinet representatives, technocrats, chamber representatives and academics, its CEO, four directors and members of other institutes, departments and researchers. (RC)

NIIT's launches IT training centre in Trinco
NIIT, a global leader in IT training, in cooperation with MMBL CyberSkills (Pvt.) Ltd. has launched a world class IT education and training centre in Trincomalee.

At the October 31 opening IT scholarships were presented for needy students of Sri Shanmuga Hindu Ladies College, St. Mary's College, St. Joseph's College, Vivekananda College, Vidyaloka Royal College and Muslim Maha Vidyalayam.
These were presented by Royce Samaratunga, Director - Logistics and Trinesh Fernando, Director - Legal of Mercantile Merchant Bank Ltd.

"The Trincomalee Centre is the seventh NIIT centre to be set-up in Sri Lanka to offer the new e-Technology curriculum," said Sunimal Weerasooriya, Managing Director of MMBL CyberSkills. The centre will provide custom-built training programmes to corporate executives here similar to what it has provided executives and companies across the world.

ODEL brand name used illegally in the UAE
Thirty-seven cartons of goods containing ODEL branded items were confiscated at The Discount Centre in Sharjah recently by the authorities there, ODEL said in a statement.

The Discount Centre was selling these items with the brand name "ODEL" without due authorisation. "On becoming aware of the sale at The Discount Centre, ODEL (Pvt) Ltd made a complaint to the Department of Economic Development in U.A.E. after which the Department issued an order for all the goods to be confiscated with immediate effect," it said.

This case follows a similar incident, which took place earlier in the year when a store bearing the name Odel Style in the U.A.E. was found guilty of selling goods under the mark ODEL. The rising popularity of ODEL and the favourable reputation of ODEL branded items overseas in the last few years has lead to incidents of this nature, the statement added.

Back to Business