5th April 1998

The billion worth confusion

The letter of Badurdeen A.Azeez of Wattala, appearing in The Sunday Times of 22.3.1998, in reply to a query raised by Mr. Marapona as to the size or quantum of a billion, has made the confusion worse confounded.

He has, in indicating the figures of a lakh, a million, 10-million and a billion, used three additional zeros, thereby blowing up their numeric values a thousand fold.

One lakh or "Lakshaya" is 100 thousand and is denoted by placing the 3 zeros of thousand after 100, as 100,000. It is followed by 5 zeros.

One million or 'dasa laksha' is ten lakhs and is denoted by 1 followed by 6 zeros as 1,000,000. 10-million or 'koti' in Sinhala, or crore as used in India is 100 lakhs and is denoted by 1 followed by 7 zeros,as 10,000,000.

A billion is 1000 million and is denoted by 1 followed by 9 zeros as 1,000,000,000. A comma is used to separate or punctuate figures, usually in groups of three from the right as shown in the foregoing figures. In some instances, e.g., 1,575,650 (one million five hundred and seventyfive thousand sixhundred and fifty) is punctuated as, 15,75,650 (fifteen lakhs seventyfive thousand sixhundred and fifty). This method of punctuation is used in India and Sri Lanka, where the term lakh, laksa or laksha is used.

This is the accepted form of usage of numerals in commerce, trade and banking, budgetary estimates, all monetary transactions and accounting.

In the past there was no single word term for million in Sinhala. Million was referred to as 'dasa laksha' (ten lakhs). There was a misconception in the minds of many that 'koti' was the Sinhala equivalent for million.

I remember an incident that happened some years back when the Sinhala term 'koti' was erroneously used for million in a statement by the Customs Department, to the Finance Ministry for the preparation of the budget, which caused much confusion. Now, the word 'millionaya' is used for million.

In the U.K. a billion is reckoned as a million million (bi-million)- million raised to the second power or million multiplied by itself, which works out to 1,000,000,000,000 (1 followed by 12 zeros). A trillion is reckoned as a million million million (tri million)-million raised to the third power or million multiplied twice by itself which works out to 1,000,000,000,000,000,000, ( 1 followed by 18 zeros).

In some parts of U.S and in France, a TRILLION is reckoned as a million million, just as a BILLION is reckoned in the U.K. viz., 1 followed by 12 zeros. A BILLION is reckoned as a thousand million viz,. 1 followed by 9 zeros as reckoned in Sri Lanka. It is also called a milliard.

These figures are a drop in the ocean and fade into insignificance compared to the mind boggling distances of galaxies and stars in outer space which are reckoned in millions, billions and trillions of light years.

Wilfred Perera

They are a menace at times

"Cyclists catch the Minister's eye" went the headline to a news item in the Sunday Times of March 22. It is no surprise that cyclists should have caught the eye of an observant minister, whose intention to provide a special lane of the road is to protect them from other fast-moving traffic.

The project is undoubtedly going to cost the government something from which it will not recover anything by way of revenue from cyclists.

While the gesture of the minister is to be appreciated, due consideration has to be given to cyclists who cause accidents of which the writer knows at least two, which proved fatal when the cyclists riding without lights, after dark, knocked down a pedestrian in each case. And what is worse, they went unapprehended, the reason being that they could not be identified.

It will be recalled that there was a time when local authorities, insisted on licensing push bicycles. That practice no longer exists, and the authorities, must be losing much revenue from the source.

If licences are issued for cycles, at least the owner could be traced, if not the rider, at the time of an accident. As it is a cyclist involved in an accident could give a false name and address and get away with it.

If licensing of cycles cannot be done the law should require a cyclist to carry his National Identity Card in lieu of a licence to ride.

It is indeed a good idea that cycles would be expected to be insured against third party risks, but that could be best done in respect of licensed motor vehicles.

C.S.A Fernando

Moratuwa

There are three zeros too many!

Regarding Mr. Badurdeen A. Azeez's letter in March 22nd issue, entitled "The billion worth query".

In an issue that confuses most people at the best of times, all the numbers that were printed in figures are wrong.

Although the numbers were written correctly in words, including the difference between the US and UK "Billion" three (3) zeros must be removed from all the numbers as they were shown.

A lakh is clearly not 100,000,000 (8 zeros) but 100,000 (5 zeros) the same applies to all other numbers printed.

It is now accepted usage that the US billion ( with 9 zeros) is a billion and that the (old) UK billion (with 12 zeros) is a trillion .

I would like to take this opportunity to praise the quality and even-headedness of the reporting in the Sunday Times and to wish you good luck in keeping up the good work, so, essential in a free society, into the future.

H. Stibbon

Hambantota

GST: no additional expenditure

I refer to N.C. Rodrigo's letter which appeared in your newspaper of 29.03.98 and wish to comment as follows:

1) It is the duty of an establishment to maintain proper records for their benefit and also in discharging their statutory obligations (BTT, EPF, Trust Fund Payments etc)

2) No additional expenditure is involved in maintaining records with the introduction of G.S.T. due to the following reasons:

a) Buying and selling business could continue without registration for GST unless a supplier prefers a voluntary registration.

b) Even manufacturers, service centres, hoteliers need not register if their quarterly and annual turnover is less than Rs 500,000 and Rs 1,800,000 respectively.

3) When a person is registered under G.S.T. regulations, he has to fulfill the following obligations:

a) Raising of G.S.T. Invoice:

This should include:-

i. The supplier's name, address and the GST Registration Number.

ii. Customer's name and address. If the customer is a retail consumer and does not prefer his name be inserted you could state "customer's details not available."

iii. If the sale is less than Rs. 2,000 no break up of GST is to be shown on the invoice, but an insertion "inclusive of GST @12 1/2%" must be made.

iv) If the value is more than Rs. 2,000 then you have to give the break-up of the net sale value, GST and the National Security Levy (if applicable).

You could very well use the present sales invoices and use different Rubber Stamps giving the above information (maximum 4). The cost of a Rubber stamp would be about Rs 100/- and could be used for a minimum of one year.

b) Computation of GST output, GST input and net payment.

This could be done with the help of an accounts clerk. The accounts clerk could be trained to discharge his duties by permitting him to attend seminars or courses available at moderate rates. You need not attend expensive seminars. Even the Dept. of Inland Revenue is prepared to assist if a request is made to them.

From the above, it could be seen that there is no additional expenditure involved by a GST Collector. At the same time, I have to mention that there are benefits available to GST Collectors:

a) If your sale is less than Rs 2,500,000/- per month, you pay GST at the end of the fourth month (quarterly basis).

b) If your sale is more than Rs 2,500,000/- per month you should pay GST by the end of the Second month (monthly basis).

Hence, you are enjoying an interest free loan on GST collections either for one month or on weighted average of 1-3 months. At the present bank interest rate of 16% per annum you could very well assess the benefit available to GST collectors.

Even if an additional Clerk has to be employed for the purpose of GST (not necessary in most cases), the salary paid to the said Clerk is not material when compared with the annual turnover of Rs.1,800,000 (minimum) of the GST collector. In fact, you are helping a family to earn a living by giving employment. This is a service expected by our Government at present.

S.R. Balachandran

Council Member

The National Chamber of Commerce of Sri Lanka

An eye opener

The 'Last Story' of the late Gunadasa Liyanage should be an eye-opener for most of us who act under the delusion that the dead should be honoured in the most expensive manner. It also seems to be a status symbol or a matter of prestige to the living.

This type of pomp and pageantry usually adopted is not going to bring merit to either the living or the dead.

Even on the 7th day almsgiving, I have noticed the dear and the near are concerned about the quality of the food that is to be served to the clergy and the guests.

Part of the money pent on such extravagance could be donated to an orphanage or an elders home.

Leela Jayaratne

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