Felicitating the godfather of entrepreneurship

The NCE felicitated Founder President and President Emeritus Patrick Amarasinghe at a gala reception in March. Savithri Rodrigo relives some of the memorable moments of the evening.

The Lower Crystal Room of the Taj Samudra was filled to capacity when over 225 members, well wishers and valued business partners came together to felicitate Patrick Amarasinghe for nearly two decades of service to the NCE and Sri Lankan exporters. Held just after the Annual General Meeting of the NCE, Felix Yahampath who took over the reins of President last year, thought it fit that the NCE should show appreciation to Amarasinghe who has been the lifeblood and backbone of the organisation he founded in 1986, then known as the National Exporters' Association.
Yahampath told the gathering that the development in the status of the exporters in Sri Lanka was largely due to the work done by Amarasinghe, a fact that will remain etched in the history of the NCE. He also urged members to participate more in the activities of the NCE so that, as one voice, exporters will be able to exercise more influence over decisions taken at national level that affect them.

Minister of Commerce and Consumer Affairs Ravi Karunanayake recalled the times, when as a rookie in the freight forwarding industry (before taking up politics), Amarasinghe had been a light that guided him through many a tough problem. "I am what I am today because of people like Patrick," he said. "I don't think exporters in this country will ever forget the yeomen service rendered by Patrick for them nor will they forget the number of battles he has fought on behalf of them. Thank you Patrick for all the advice and assistance you have given me in my career."

Having been the head of the Federation of Chamber of Commerce and Industry of Sri Lanka and a very active member of exporters and chamber fora, Chief Guest, Karu Jayasuriya, Minister of Power and Energy said that when he was appointed Ambassador to Germany, he was faced with the task of finding a successor as head of the FCCISL. "Looking around the chambers and other institutions, there was no doubt in my mind that Patrick fitted the bill perfectly. I knew that he would take the objectives and goals of the FCCISL seriously and carry them through, if not better them. His dynamism and courage has stood him in good stead and I am really honoured to be here today, to pay tribute to such a great man."

The citation was delivered by Dr. Saman Kelegama, Executive Director, Institute of Policy Studies and President of the Sri Lanka Economic Association giving a comprehensive background to Amarasinghe's impressive career.

A cash presentation and commemorative plaque was presented by the NCE President while Minister Jayasuriya placed a gold medal around the neck of Amarasinghe. In his acceptance address, Amarasinghe lamented the state of the country and urged the government to help local industrialists and not fall prey to foreign imports. He also hoped the exporters will continue to lobby the government to develop and improve strategies and initiatives that he feels are not supportive enough for the industrialists. "Everyone forgets that it is the exporters of this country who toil morning, noon and night to bring in valuable foreign exchange for the rest of the country to enjoy. But it is not an easy task for them. They are met with harmful, unhelpful and disapproving bureaucrats all the time.

There is very little help for them even if they want to better the industry and some of them, actually give up the battle. Every country needs local industry and we have so many resources that we can use them. Exporting our human resources is not the answer.

We boast of a literacy rate of over 90%, but over one million people are working in the Middle East as housemaids. We shouldn't be proud of that. Look at the social ramifications of such actions."

The NCE website was launched by Jayasuriya.

More than 50 invited for Lanka donor meeting

More than 50 governments, international financial institutions and NGOs have been invited for the donor meeting in Washington on April 14 to boost funding prospects for Sri Lanka's rehabilitation and reconstruction process, a US embassy spokesman said.

Bruce Lohof, Public Affairs Director at USIS, said 58 invitations have been sent out for the US-initiated meeting but he could not say how many have confirmed participation.

India has said it would attend the meeting after the US rejected reports that the LTTE had been invited for the meeting. Lohof quoted US Ambassador Ashley Wills as saying that there was never any intention to invite the LTTE or its associated organisations for the meeting, which is a preparatory session before the Tokyo summit in June

The Washington meeting would bring together finance ministers, development leaders and Sri Lankan leaders attending the spring meetings of the IMF and the World Bank. Presentations will be made by US Deputy Secretary of State Richard Armitage, Economic Reforms Minister Milinda Moragoda, Norwegian Deputy Foreign Minister Vidar Helgesen and the IMF and the World Bank, among others at the half-day meeting.

Suntel leads telecom industry in service quality

In the highly competitive telecommunications market, Suntel Ltd., the pioneering Wireless Local Loop (WLL) operator, is clearly ahead of the rest in terms of service quality as per findings by the industry regulator, the company said.

Suntel comfortably outstripped competition in all four parameters of the Telecommunications Regulatory Commission's (TRC's) recently published key indicators of fixed access telecom operators for the period ended third quarter of 2002 in terms of quality of services. TRC compared the performance of all three fixed access operators on the basis of four parameters - best connectivity (call completion ratio); best in rapid response (faults cleared within 24 hours); best in customer service (faults cleared within 72 hours) and lowest number of faults (faults per 100 direct exchange lines).

The company's call completion ratio was the best at 56.63%, rapid response in fault clearance was an impressive 96.67% while in terms of faults cleared within 72 hours Suntel topped the list with a ratio of 99.33% and was ranked lowest in terms of faults.

Managing Director Hugo Cederschiold attributed Suntel's success to substantial investments in technology and human resources and training which are essential to maintain such high standards in service quality.

Industries from Eppawala phosphate deposit

By Professor R.P. Gunawardane
(This article is based on a presentation made by Professor R.P. Gunawardane at the Workshop on Industrial raw materials in Sri Lanka: Occurrence and Processing, held recently at the Post-graduate Institute of Science of the University of Peradeniya.)

The rock phosphate deposit at Eppawala was discovered by the Geological Survey Department in 1971. The proved reserve is about 25 million tonnes. Although an inferred reserve of another 40 million tonnes has been estimated this has yet to be confirmed.

In comparison with other phosphate deposits in the world, Eppawala deposit is unique not only due to its high phosphorus content but also due to its relatively easy beneficiation. However, its solubility is low limiting its direct application as a fertilizer. Nevertheless, it can readily be used as a raw material for the manufacture of a variety of more soluble commercial fertilizers. In addition, it may also be utilized to manufacture many other industrial products.

Ground Eppawala rock phosphate is presently used for perennials such as tea, rubber, coconut and spice crops such as pepper and coffee. Owing to the low solubility of the rock it is not recommended for rice, vegetables, potatoes, chilli, onion and other short-term crops. Imported triple superphosphate (TSP) is used for these crops. In addition, Sri Lanka imports more soluble rock phosphate for some perennials, and small amounts of diammonium phosphate (DAP) for certain nurseries. The total foreign exchange used for this import is around $10-12 million annually.

The rock phosphate deposit at Eppawala is rich in phosphorus containing about 34-40 percent total phosphorus expressed as a percentage phosphorus pentoxide. However, its water solubility is about 0.5 percent and solubility in two percent citric acid, which measures the agronomic availability of phosphorus, is estimated to be about five percent. It has more chlorine than fluorine and therefore classified as a chlorfluorapatite.

Apatite has an extremely stable crystal structure, which can withstand soil weathering conditions. The presence of relatively high chlorine content in Eppawala apatite is a special feature in this mineral. Most phosphate deposits in the world contain more fluorine than chlorine. Chlorine positions in the structural framework of Eppawala apatite are under strain and as such it is relatively easy to replace chlorine with other groups at high temperature. This enhances its reactivity at high temperature leading to more soluble products.

Potential industries

The industrial products that can be manufactured from rock phosphate include P-fertilizers, pharmaceuticals, biomaterials (artificial limbs, teeth, etc.), analytical reagents, animal feeds, phosphoric acid, phophorus and many industrial phosphates including baking materials, detergents, emulsifiers, etc. P-fertilizers include powdered rock, superphosphates (SSP, TSP, PAPR), ammonium phosphates (MAP, DAP), nitrophosphates, rhenania phosphate, fused calcium magnesium phosphates etc. Depending on the nature of soils and the crops grown, widely different phosphate fertilizer products are employed by different countries in the world.

Superphosphates and ammonium phosphates dominate the phosphate fertilizer industry. For instance DAP/MAP account for 30 percent while superphosphates account for 29 percent of the world consumption. Total phosphate consumption in the world is about 40 million tonnes annually, of which more than 95 percent is processed phosphates based on phosphate rock, apatite. The cost of production is highest in DAP/MAP while it is lowest in the powdered rock. Single superphosphate(SSP) has the lowest cost of production among processed phosphates.

The superphosphate family of phosphate fertilizers includes two major products - SSP and TSP. Superphosphates are made by the reaction of ground rock phosphate with sulphuric or phosphoric acid followed by curing. The reaction goes to completion during curing. The phosphate-containing component in the product is monocalcium phosphate. SSP contains gypsum (a calcium sulphate) in addition to monocalcium phosphate. SSP and TSP contain about 24 percent and 45 percent available phosphorus pentoxide respectively. Phosphoric acid needed for the production of TSP may be manufactured from phosphate rock itself. Wet process involves the complete reaction of apatite with sulphuric acid to produce phosphoric acid. Phosphogypsum is produced as the major by-product of this process and the process requires high technology. Phosphoric acid may also be produced by a thermal method. In the thermal process phosphorus is produced from apatite by the reaction with coke and silica at 13000C. Phosphorus thus produced is oxidised and the resulting oxide is reacted with water to produce phosphoric acid.

Ammonium phosphates (DAP/MAP) are produced by the reaction of phosphoric acid with ammonia. The process involves production of phosphoric acid from apatite, production of ammonia and reaction of ammonia with the acid followed by granulation. In addition sulphuric acid is also needed in the phosphoric acid production stage. A large capital expenditure with high technology is needed for such a manufacturing unit.

Nitrophosphate is a generally accepted term for any fertilizer that is produced by a process involving a treatment of phosphate rock with nitric acid. In the nitrophosphate process P-fertilizer is produced completely independent of sulphur. As in MAP/DAP the product contains another important plant nutrient N in addtion to P. In this process it is possible to add sulphuric acid and or phosphoric acid or ammonium phosphate to adjust Nitrogen and Phosphorus ratio in the final product.

Fertilizer products

Thermal phosphates are produced by heat treatment of apatite with fluxes such as soda ash, dolomite, etc. Fusing apatite with fluxes followed by quenching and crushing produces fused phosphates. Thermal phosphate products are not extensively used today because of high fuel costs involved in their production. However, if indigenous raw materials are available such processes may be viable in certain countries.

In the production of soluble phosphate fertilizers from Eppawala apatite due consideration should be given to the geochemical nature and extent of the deposit, local agronomic requirements and cost factors. Furthermore optimum use of local raw materials, low capital investment, plantation requirements and acceptability of the product by the farmers should be given adequate consideration.

In addition to its direct application as a P-fertilizer to prennials such as tea, rubber and coconut, this deposit may be utilized to manufacture the following fertilizers.

*Super phosphates

SSP or SAB-PAPR production involves only the acidulation stage followed by curing. TSP manufacture involves two stages: production of phosphoric acid by Wet process using rock phosphate and sulphuric acid followed by acidulation of rock phosphate with phosphoric acid.

*Ammonium Phosphates:

DAP/MAP may be produced by first producing phosphoric acid using Wet Process followed by granulation of acid with ammonia. Ammonia has to be manufactured locally or may be imported.

*Nitro phosphates :Nitrophos fertilizers are manufactured by first producing nitric acid, followed by complete or partial acidulation of rock phosphate with nitric acid.

*Rehenania phosphate :

Rhenania phosphate (a calcium sodium phosphate) production involves heat treatment of apatite at 9000C with silica sand and soda ash or caustic soda in a rotary kiln for about two hours.

Local research

After extensive research over 25 years, the Sri Lankan scientists have developed and patented the following processes for the manufacture of P-fertilizer from Eppawala apatite.

1.Soda ash process to produce rhenania type product with 26 percent available P

2.Caustic soda process to produce rhenania type product with 26 percent available P

3.Hydrochochloric acid complete/partial acidulation to produce dicalcium phosphate /HCl-PARP with 16-18 percent available P

4.Sulphuric acid complete/ partial acidulation to produce SSP/ SAB-PAPR with 17-20 percent available P

5.Nitric acid partial acidulation to produce NITROPARP with 15 percent available P and eight percent N.

All these processes can be used to produce P-fertilizers from Eppawala rock phosphate. These methods utilize simple machinery with low capital cost, use readily available local raw materials and could employ local expertise exclusively for its implementation. Among the processes developed sulphuric acid based partial acidulation appears to be more appropriate for Sri Lanka because of the lowest capital cost, low cost of the product, farmers acceptability and ease of handling and storage of the partially acidulated product.

Considering all the factors the most feasible P-fertilizer products for use in Sri Lanka agriculture would be single superphosphate (SSP) and partially acidulated phosphate rock (SAB-PAPR). However, if further proven resources are established at Eppawala, an export oriented TSP or MAP/DAP production plant may be considered as the second stage of development with or without foreign collaboration.

Exploitation

Up to now Eppawala apatite has been considered only as a raw material for fertilizer industry. It is essential that the production of biomaterials and other important industrial products with much higher value addition also should be given serious consideration. More research is urgently needed in this direction to establish the suitability of our deposit for these new industries.

It must be stressed that in the development of the Eppawala deposit, it is necessary to employ strategies that will yield maximum benefits to the national economy.

This includes provision of powdered rock to meet domestic requirements for perennials, manufacture of more soluble fertilizer for short-term crops such as paddy, vegetables etc. and exploring possibilities for the production of biomaterials and other new industrial products from this deposit.

It must be realized that this deposit is a non-renewable natural resource situated in a traditional village environment. Thus, environmental aspects as well as social issues at Eppawala village should be given utmost consideration.

Alternative industries suggested above may reduce possible environment hazards and minimize social problems at Eppawala village. In any event, it is essential that the rate of exploitation of this deposit should be carefully controlled so that many future generations could benefit from it.

Establishment of P-fertilizer manufacturing unit based on Eppwala apatite has been long overdue. It is regrettable to note that there is no such plant in operation as yet despite the fact that the deposit was discovered over 30 years ago. At present Sri Lanka spends $10-12 million (about a billion rupees) annually for the import of soluble P-fertizers.

Therefore, there is an urgent need to establish a P-fertilizer plant(s) based on Eppawala rock phosphate. At present sufficient scientific, technological and agronomic data are available to make a decision regarding this matter.

Furthermore, scientific and technological expertise is available locally for the successful implementation of such a proposal.

If such a production unit is established it would certainly save about one billion rupees in foreign exchange to this country, leave alone any additional earnings from the export of locally produced P-fertilizer.


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