The Sunday Times on the Web Business
16th August 1998

Front Page|
News/Comment|
Editorial/Opinion| Plus | Sports |
Mirror Magazine

Home
Front Page
News/Comment
Editorial/Opinion
Plus
Sports
Mirror Msgazine

Thailand orders take-over of troubled banks

Thailand announced a multi-million dollar merger of seven financial institutions on Friday in a bid to attract foreign capital to the ailing sector. The move is part of a comprehensive financial sector rescue programme aimed at reviving the country's crippled banking sector.

The deputy governor of the Bank of Thailand, Kitti Patpong-pibul, told a news conference the small commercial bank Union Bank of Bangkok would be taken over by partly state-owned Krungthai Thanakit Finance and Securities , while Laem Thong Bank would merge with state-owned Radhanasin Bank.

Kitti said once the merger of Krungthai Thanakit and Union Bank was complete, the new institution would absorb five smaller finance firms.

The five firms, along with Union Bank and Laem Thong, were taken over by the central bank on Friday for failing to boost their capital bases while problem loans rose.

"If these financial institutions are allowed to continue their operation under the present condition, it will be harmful to the public," Kitti said. The five were Dhana Siam Finance and Securities , First City Investment Plc , Finance and Securities , Vajira Dhanathun Finance Co Ltd and Thai Summit Finance and Securities.

"We have to intervene today because of their insufficient capital. Other financial institutions still do not fall into this category," Kitti told the news conference.

Thai banks have massive problems with non-performing loans, estimated to be about a third of their total assets, and are in dire need of fresh capital.

Analysts say they need to raise $15 billion to $25 billion over the next two years to meet their provisions for bad loans. Kitti said it would cost the authorities over 27 billion baht ($646 million) to recapitalise Union Bank and Laem Thong Bank before they joined their new state-owned partners.

But he declined to reveal the details of how much it would cost to take over the five other financial institutions.

A Bank of Thailand unit, the Financial Institutions Development Fund (FIDF), would inject new equity funds of about 15.065 billion baht into Laem Thong before it is merged with Radhanasin.

The central bank unit would absorb another 12.332 billion baht of new shares of Union Bank before it merged with Krungthai Thanakit, he said.

The government would put in the new money after Laem Thong and Union Bank had complied with the central bank's order on Friday for them to write-down dramatically the value of their equity.


Yen could fall without Japanese action

The International Monetary Fund warned Japan on Thursday that the worst may not be over for the yen, unless the new government took bolder steps to revive its moribund economy and fix its banking system. In a sharply worded report issued two weeks after Prime Minister Keizo Obuchi took office, the IMF complained that Japan had not done enough to stimulate its recession-hit economy, the world's second largest. It said that the new government could put the yen at risk of further depreciation and undermine the economies of other crisis-hit Asian states unless it acted decisively.

IMF officials, like those in the United States and other countries, have long expressed concern about Japan's sluggish economic performance. "While the government has taken a number of welcome initiatives, the overall response thus far has fallen short of the timely, comprehensive and forceful programme that is required, given the seriousness of the present situation," said the IMF report, which summarized an Aug. 5 review. Admitting that conditions had deteriorated since it last studied Japan, the IMF said it expected the economy to contract by 1.7 percent in 1998. In April, it forecast zero growth for the year.

The IMF said the Japanese economy could start to recover later this year, assuming that previously announced stimulus packages had their intended impact. But it still expected business investment to weaken further, and said deteriorating household confidence and rising unemployment would likely dampen consumption.


TRC to study emergency management

Sri Lanka Telecommunication Regulatory Commission is to undertake a pilot study on the "Use of Telecommunications in disasters and emergency situations".

The study would lay the foundation for a comprehensive approach to the effective use of telecommunications in the management of disaster situations, Telecommunications Regulatory Commission Director General, Prof. Rohan Samarajiva said.

The study will be partly funded by ICO Global Communications (a Global Mobile Personal Communication Satellite) carrier. The project will also involve the United Nations office for the co-ordination of Humanitarian Affairs (UNOCHA) and the International Telecommunications Union (ITU).

An expert from the UNOCHA is due in Sri Lanka shortly to give necessary advice for the project.

Communication links are frequently disabled and disrupted during the first hours of a major disaster. It is imperative that when aid arrives, telecommunication links are established between the disaster area and the international community i.e. government agencies, disaster mitigation officials, scientists, community-based organisations, corporations and media, Prof. Samarajiva said.

Telecommunications is also known as one of the most powerful tools for forewarning disaster and providing disaster mitigation when one occurs, Director Government Affairs ICO Global Communications, Navin Kapila said.Telecommunication technologies can track approaching hazards, alter authorities, warn people, assess damage, co-ordinate rescue and relief activities and motivate public political international response, he said.

The study would address areas like, requirements of emergency communications, availability of personnel in disaster areas, telecommunication resources available for a disaster, nature of the disasters affecting Sri Lanka, prioritisation of calls from any disaster affected area, sources and methods of financing disaster communications.

In an effort to foster the development and application of advanced telecommunications solution in support of emergency management, this study will eventually become a benchmark for achieving optimal usage of communication resources.

In addition, this study will make great benefits to Sri Lanka and its people who are prone to natural disasters and emergency situations very often, Mr. Kapila said.

The study was made possible during the Inter-governmental Conference on Emergency Telecommunications 1998 (ICET-98) held in Tampere, Finland. Prof. Samarajiva said Sri Lanka may consider signing the Tampere convention on Emergency Telecommunications, that resulted from the ICET-98 conference in the near future.


MMBL to invest in Malaysia

The Mercantile Merchants Bank Ltd (MMBL) will invest more in the local financial services and enter into an MOU with an organization having close links to a large US financial services group.

MMBL which has focused on setting up strategic global alliances and forming links with high networth Investor Groups and Investment Banks in USA, Europe and Asia has brought several international brand names and Fortune 500 companies to Sri Lanka as its partners.

MMBL were recently involved in several assignments for overseas partners including assisting in the setting up of Malaysia's second National airline and providing advice to large Malaysian companies on investment strategies.

The Company is currently working on a Fund for primarily US investment in Malaysia together with the largest Financial Services conglomerate and second largest commercial bank in Malaysia, the Rashid Hussain (RHB) Group.

The Fund, which will initially be US $50 million, will be managed by MMBL who will also form part of the Investment Committee.

MMBL is a Sri Lankan/US joint venture. The US partner is Denmar Associates, which is an investment company of Martin Trust and family. Martin Trust has been associated for many years with the local apparel sector.

The Board of Directors of MMBL: Milinda Moragoda (Chairman), Dharmasiri Pieris (Deputy Chairman), Uddaka Tennekoon (Managing Director), Mrs. Neiliya Perera, Mrs. Rohini Nanayakkara, Vijaya Malalasekera and Mahinda Haradasa. Martin Trust is the Advisor to the Board.


CASA wants details of QEQ lease to P&O

By Gunapala Ranasinghe

The Ceylon Association of Shipping Agents (CASA) has decided to clarify points on the leasing of the Queen Elizabeth Quay (QEQ) and to discuss the basics entailing the preliminaries of the lease to the Peninsular and Orient Company (P&O) of Australia for development work.

CASA says that they seriously consider the idea of developing the Colombo Port, as a policy they value very much. CASA also is keen on learning how principals of shipping agents could participate in this task of Port development, said a spokesman for CASA.

The main reason for this is, that principals of shipping agents abroad are, requesting their agents in Colombo,as to how the development of the Colombo Port is to he done. CASA has therefore decided to ask the Secretary of the Ministry of Shipping & Rehabilitation, Mr.A.N.Junaideen, some questions in this connection.

Meanwhile six Members of Parliament, both government and opposition, have decided not to endorse the privatization plan of the Ports Authority, which decision is to be intimated to the Committee, of Public Enterprises. (COPE). They told its Chairman, Reggie Ranatunga that, their opposition to the move, is in protest against the refusal of a request that officers of the Ports Authority be summoned before COPE.

The signatories to this letter are: John Amaratunga, A.H.M.Azwer, Rohan Abeygunasekera, Ravi Karunanayake, Vasudeva Nanayakkara and Pradeep Hapangama.


Predicting the future

Kawasaki Kisen Kaisha, (K'Line) the smallest of Japan's three full-service shipping lines, but still among the world's top 15 container operators, has reached a turning point in its fortunes.

In March this year the company completed the second phase of the 'K' Line Re-engineering Project which ran for four and-a-half years and saved Yen 20bn off the company's operating costs. Kawasaki is now working hard on the preparation of a new five-year plan provisionally called "New 'K' Line Spirit for Century 21" (New K-21 for short). But the details wont be finalised until the end of 1998, and it is not clear whether the plan will feature the specific item-by-item cost cutting proposals that figured in the Re-engineering project.

"What we can say at this stage", says Senior Managing Director Yasuhide Sakinaga who has been co-ordinating the preparation process, "is that we will be looking at the next five years from the viewpoint of the entire K Line group - not just the parent company".

One challenge for the new era will be to set a common management structure for harbour service and stevedoring companies in different ports in Japan.

"We can achieve consolidation in this sector and reduce work numbers," says Mr Sakinaga. Perhaps because consolidation will be a politically delicate process, Mr Sakinaga also stresses that he wants the plan to be evolved through a decision making process involving the whole company, rather than having everything handed down from the president's office.

The targets for the re-engineering plan had to be worked out in a hurry by a small group of senior managers headed by planning boss (later president) Isao Shintani due to an emergency created by the sharply appreciating yen.

Mr Sakinaga clearly doesn't believe that the situation 'K' Line faces today qualifies as an emergency. Results for the 1997-8 business term ending on March 31 were the best in years with income before taxes coming in at Yen. 508bn, 40% up on the previous year's level and net income rising by 24% to Yen 2.25 bn.

'K' Line crowned its successful business year and the completion of the re-engineering project by announcing that it would pay a dividend for the first time since the close of the 1984 business term.

The company says annual dividends will be top priority from now on. Next year's payout should be Yen3 or Yen4 per share (compared with Yen3 this year). Net profit for the current year should reach Yen4bn with recurring profit coming in at Yen12bn.

But to keep on delivering shareholder value year after year there are several basic tasks that have to be tackled.

Kawasaki's container services are still at a cost disadvantage compared with those of Evergreen and Maersk, the industries 'benchmark' container operators, as Mr Sakinaga sees them.

Catching up with the front runners does not necessarily mean seeking economies of scale. "We've considered the virtues of simplicity versus scale merit and decided that the former isn't so bad" says Mr Sakinaga, referring to the company's decision to stay out of any of the big global container alliances and avoid investment in the largest class of container ships.

. (Lloyd's List Maritime Asia)


Calberson names Lanka agent

Calberson Overseas, one of the five leading freight companies in Europe, which is an affiliate of Geodis group connected with more than 150 branch offices involved with air/sea operations, project forwarding and intercontinental logistics, pleased to announced the appointment of M/s Lanka Logistics International (Pvt) Ltd, as exclusive agents in Sri Lanka.

Lanka Logistics, though newly formed, is spearheaded by its CEO and experienced staff counting more than 15 years of air/sea operations.

The CEO of Lanka Logistics Aruna Perera said he along with Calberson will be fully dedicated to offer a high quality of consistent service to all customers.

Further, he that his company is confident of maintaining its existing customer base while winning over more and more new customers.


Chartered Shipbrokers Examination Results

The Institute of Chartered Shipbrokers, UK has released the results of the examinations held in April 1998 through their local branch, details of which are given below:

Passed the Final Qualifying Examination

Capt. D. A. P. Andrado (Sea Services (Pvt) Ltd.)
T.A.N.K. De Z. Attanayake (CMA Lanka (Pvt) Ltd.)
D.R.L. Galhena
M.S.P. Peiris (Samyang Lanka)
Mrs. A.V. Ranasinghe (Delmege Forsyth & Co. Shipping Ltd.)
D.H.L. Williams (Lion Shipping Ltd.)
Passed the Diploma in Port Agency
W.K. Ariyadasa
Y.A.I. Byrde (Ace Container Terminal)
Ms. W.M.H. Fernando (Sri Lanka Shipping Co. Ltd.)
S.H.C. Fernando (Delair Ltd.)
W.A.M.S. Fernando (Freight International)
V.J. Forman (SGF Marine Surveyors)
Mrs. G.J. Goonetilleke (Asha Shipping Ltd.)
T.K. Hemachandra (Floral Greens Manufacturing)
W.M.K. Kariyawasam (Sri Lanka Ports Authority Jaye Container Terminal)
K.S.W. Kottahachchy (Ceylon Petroleum Corporation)
S. Lafir (A.R.M Mushin & Co Ltd.)
D.S. Liyanage (Lanka Dairies)
L.S. Mirando (P&O Nedlloyd Keells)
M.J. Perera (Tea Tang Ltd.)
H. Premaratne (Sri Lanka Ports Authority)
P. Ranathunga (Sri Lanka Ports Authority)
D.S. Samarasinghe (Hoegh Lines Agencies)
D.R. Weerasinghe (Sri Lanka Ports Authority)
M.P. Weragala (Sri Lanka Ports Authority)
G.A.J. Wijayatunga (Mercantile Shipping Agencies Ltd.)


Taking tourists on cultural highway

By Feizal Samath

Sri Lanka has for many years enchanted foreign tourists with its sandy, palm fringed beaches and an outstanding culture which includes a few ancient kingdoms but now it wants to move into "green" or eco-tourism in consonance with other world destinations.

For too long Sri Lanka, which attracts about 400,000 foreign tourists a year, has relied on a mix of beaches and cultural sites while nature tourism has received marginal promotion.

Tourism has helped to create employment and swell government coffers but it has also spawned problems like environmental pollution, a clash of cultures and sex tourism.

In 1966, tourism began as an organised industrial activity under government control and since then western and southern coastal beaches have been dotted with hotels, most of which are improperly built structures with hotel sewage and waste polluting the beaches.

Other negative aspects of tourism have been a proliferation of drug addicts, drug couriers, child sex offenders like foreign paedophiles, environmental degradation and destruction of coral reefs by glass-bottomed boats taking tourists on coral viewing trips.

The country is joining a growing band of tourist-receiving countries that are moving into eco-tourism or sustainable tourism development to provide the visitor with a range of eco-friendly facilities, in addition to protecting the environment.

That's easier said that done, as the Ministry of Tourism hopes to net in one million foreign tourists by 2004 from a current average of 400,000 a year. Officials say that to achieve this target, the number of hotel rooms would have to expand to 21,000 from a current 14,000.

Environmentalists and social activists are concerned that as the number of tourists increase, environmental problems and other connected issues are also bound to grow.

Early this month a group of environmentalists and hoteliers met to chart out a plan for sustainable tourism development and see whether tourism could blend into the country's natural environment without changing or unspoiling it.

The discourse led to some interesting comments. It was said that tourism should conform to the broad principles of sustainable development in the country; the industry should be sensitive to its impact on the environment and natural resources; the social impact; the need for stringent laws protecting the environment in hotel construction; the involvement of the people and the community and the development of environmental-friendly technology.

Professor Mohan Munasinghe, a World Bank environmental specialist and currently teaching environmental management at the University of Colombo, says that the conservation of natural habitats and the protection of bio diversity were important for sustainable development.

"By improving incomes and welfare of local communities and simultaneously preserving physical and biological systems in protected areas, developing countries may pursue both environmental and development goals in a complimentary manner," he said.

Munasinghe's focus on the need to help communities in the development of tourist complexes follows numerous cases of hotels being built on the coast or near wild life parks and places of scenic beauty but with little done by way of helping the community, who may have used the sites as a livelihood.

"While everything is done within a hotel complex, and that would include eco-friendly facilities, little has been done outside to help communities who may have been affected by the hotel," he said.

But he said that more than tourism, Sri Lanka's forests were being destroyed by illicit logging and slash and burn cultivation by small farmers who encroach on state property.

Another negative aspect of tourism is that the tourist industry exploits the country's landscape and plant hotels right in the middle of communities, invading the landscape of those outside the hotel. In some cases, trees and forests have been cut to make way for such development.

But there is a new understanding of the country's ecology amongst the industry and many industry people are conscious of the social obligation of protecting the environment in tourism development.

Professor Senaka Bandaranayake, the country's best known archaeologist and now Vice-Chancellor of Sri Lanka's University of Kelaniya, believes that a cultural highway should be developed covering the archaeological sites in the north-central region and a schedule of areas of unspoilt landscape prepared.

Sri Lanka is one of the few countries in the world that is blessed with a variety of attractions for the discerning traveller like beaches, cultural sites, wild life parks, nature reserves, mountain ranges, rivers and breathtaking water falls, tea gardens, religious sites, rain forests and plenty of greenery.

But, industry experts believe that Sri Lanka "has missed the bus" by failing to adequately promote nature tourism, now a growing industry in the world.

The government also agrees that haphazard development of the industry in the formative years have partially devastated the coastal landscape.

"We are now coming back to what Sri Lankan tourism should have been in those early years. Tourism is not everything. Our cultural values, our environment are much more important than tourism," said Tourism Minister Dharmasiri Senanayake.

Senanayake, a former chairman of the state-run Ceylon Tourist Board in the early 1970s', said that looking back after 30 years "we should find out where we went wrong."

And that, he argues, is in not recognising the country's social values and developing tourism of a sustainable nature. His advice: "Use the environment but allow others to also use it in the future."

Under Sri Lanka's master plan for tourism development, which runs from 1992 to 2001, emphasis has been laid on the need for sustainable development to ensure protection of the physical and socio-cultural environment.

Hotel construction is much more stringent now with approvals for development required from the Central Environment Authority, the Coast Conservation Authority and the Urban Development Authority - all government agencies.


Two new covers from Eagle

CTC Eagle Insurance Company Ltd. launched two new General Insurance policies - Eagle Shield and Eagle Super Shield - recently. These two personal accident policies have been designed with the individual in mind and are among the first of many general insurance new products.

The company responding to the growing needs of individuals, has offered a wide range of covers by way of these two simplistic "pre packaged" covers, a company release says.

Accidents can happen to anyone at anytime. This could lead to loss of income, loss of savings, additional expenses and dependants being unnecessarily burdened with financial commitments.

For a minimum premium of Rs. 280 a year, the Eagle Shield policy provides Rs. 100,000 cover against death and disability in case of an accident.

"Eagle Super Shield" in addition to having the flexibility of providing covers from Rs. 100,000 to Rs. 500,000 also offers five hospitalisation plans to suit customer needs. It also offers weekly benefits for temporary total and temporary partial disablement.

The Company plans on marketing these covers to individuals from low to high income groups.

In the case of Eagle Shield, it could even be bought by employers who could buy these covers for their minor employees or even domestic aides.

Low premiums and simple documentation would attract low to medium income groups to be covered through this personal accident policy.

These products would even appeal to university students and those following tertiary education programmes.

The company also plans on promoting these two products in the outstations through their regional offices.


Business Diary

IM Luncheon presentation

August 19: The Institute of Management - UK, Sri Lanka Chapter (IM) in association with the British Council will conduct a luncheon presentation with Prof. Gunapala Nanayakkara - Director General Postgraduate Institute of Management of the Sri Jayawardenepura University on ''Habits Of Successful Executives' Study Findings - Sri Lanka''.

The IM, as part of its Professional Management Development Programme will stage this presentation which is aimed at senior executives and managers and will be held at the Taj Samudra Hotel.

The presentation is being sponsored by Pan Audio, PBN Direct, Yes FM, MTV, ESL Training & Conventions Ltd.

Seminar on ''The Fine Art of Public Speaking''

August 25:Junior Chamber International Senate Sri Lanka presents a seminar on ''The Fine Art of Public Speaking'' to be held at 8.30 a.m. to 12.30 p.m. at the Trans Asia Hotel, Colombo conducted by JCI Sen. Upali Mahanama, Marketing Consultant.

Of all the methods of communication - the printed word, the spoken word, pictures or a combination of pictures or words - none is as effective as the spoken word.

Many times a manager or director has gone through the traumatic experience of standing before an audience and being unable to hold their attention.Memory blanks, bucking at the knees and having butterflies in one's stomach can hit a speaker and cause much embarrassment not only to him but also to the organisation he represents.

This programme is designed with the primary objective of helping those with little or no experience in the art of public speaking.

Alumni AGM

August 30: The AGM of the Alumni Association of the University of Colombo will be held at 10 a.m. at the Auditorium of the Sri Lanka Foundation Institute, Colombo 7.The Chief Guest will be Attorney General Sarath N. Silva. The AGM will be followed by a speech by the chief guest and thereafter by a fellowship lunch open to members, their spouses and guests.


Standard's half year results

Standard Chartered Bank PLC recently announced their group's interim results for the half year ending June, 1998. Commenting on these results the Chairman of Standard Chartered, Sir Patrick Gillam, has said in a news release.

"Standard Chartered's results for the first half of 1998 reflect the strength of the Group. In the light of this impressive performance we are increasing the interim dividend by 19 per cent to 6.25 per pence per share.

"The current turbulence in Asia leads us to be cautious about the short term, recognising that we face a challenging environment. However, we remain confident about both the fundamentals of Asia and the long term prospects for Standard Chartered."

The results showed:

o Profit before provisions up 27 per cent to £605 million

o Cost to income ratio improvement from 54 per cent to under 50 percent


Cellular world in Arcade

Big players in the cellular world Alcatel, Ericsson, Motorola, NEC, Nokia, Philips, Sagem and others are displaying their range of phones and accessories at Arcade Supermarket, through their authorized resellers.

The Phone Co CBE., Soft Logic International, Top Point, Abans, Office Automation and Metropolitan Telecommunication Services are also now vying for attention at the 'Arcade'.

Dialog GSM presents a whole host of customer services, features technology and special offers in a unique one stop shop called the 'Arcade', a news release said.

Futuristic features like Automatic International Roaming Mobile Data and Fax, Call Line Identification, Web Billing etc. The widest range of phones with over 50 new generation models the latest hi-tech innovations, digital technology advancements, bill payments for Dialog GSM subscribers, are now offered under one roof at the 'Arcade', the release adds.


Bartercard hits Rs.2.3m in 4 hours

Bartercard Lanka, Sri Lanka's only cashless trade exchange, recorded Rs. 2.3 million in barter trade in just four hours, when the company conducted its second Trade Night recently, a company release says.

Representatives of more than 200 businesses, ranging from small proprietorships to conglomerates participated in the event, at which 40 members of Bartercard displayed their goods and services, and 240 barter transactions took place.

Describing the Trade Night as a "resounding success", Bartercard's Managing Director Johnny de Saram stated in the press release that it was ample testimony to the fact that barter trading has now been firmly established in Sri Lanka as a viable alternative to cash business.

On display at the trade night were a diverse array of products and services, from hairdressing and make-up, to floor tiles and bathroom suites, perfumes to vehicle servicing, photographic equipment, wearing apparel and outdoor advertising, all available to Bartercard members on trade.

Acting Australian High Commissioner Lorraine Barker, who was the Chief Guest at the occasion, said Bartercard provided its members with vital business opportunities and a marketing edge over their competitors.

Bartercard's Manager Trading, Angela Jumar said, many stall holders and Bartercard members had already booked stalls for Bartercard's next trade night scheduled for December 1998.

Bartercard, which has been operational in Sri Lanka for less than two years, had a membership of 550 businesses at the end of July 1998. Trading over the last quarter has averaged more than Rs. 7-8 million per month, and the exchange continues to add on about 20 - 30 new members each month.


Industrial relations forum

Q1: Below are facts regarding my employment.

1. First appointment in September 1969 in a Govt. Department.
2. Department converted into a Board (Under shop and office employees act) in January 1975.
3. Left the island on 2 years no pay leave in April 1982.
4. Agreement signed with amount and period specified in case of default.
5. Request letter for extension in March 1984.
6. Request letter turned down in June 1984.
7. Vacation of post letter in September 1984.

I would like you to answer the following questions please.

Under the above conditions,

1. Am I entitled for my EPF, ETF and Gratuity payments from 1975 to 1982?
2. Can gratuity payments be set off for default of agreement?

1. Based on the information provided by you, you were in service of the board from January 1975 to April 1982. Therefore you are entitled to receive EPF/ETF and gratuity payments for that period.
2. Gratuity payments can be set off against only for the following: Fraud, Misappropriation of funds of the employer, illful damage to property of the employer causing the loss of goods, articles, or property of the employer.

Accordingly, it cannot be set off against default of agreement.

Q: I was employed in a private firm as personal assistant. Suddenly my services were terminated by the employer without giving valid reasons. During the employment period I was never given a letter of appointment (even though I requested for one). No attendance register was maintained by the employer. Also when salaries are paid the employer does not obtain a receipt from the staff.

According to the information provided in your letter, you are an office employee covered by the shop and office employee's act. Under that act the employer should have issued a letter of appointment to you. Further he is required to maintain record of attendance and remuneration record under the regulation 17 of the act, which also includes acknowledgement of the employee in proof of receipt of the remuneration.

Q: I was suspended from work recently and later reinstated. Do I entitle for the annual bonus and reimbursement of other allowances that would have been paid to me during my period of suspension?

If the person is interdicted from services, he is entitled to receive only the earnings for the period worked and any statutory dues. The payment of bonus depends on the scheme you are having and of course it is a matter to be decided at the discretion of the employer. If the person is re-instated without any punishment, he is entitled to receive all payments such as bonus or any other allowances, in addition to salary.

Q: I am working as a Security Guard in a Security Agency. After 6 months in service I requested for annual leave, but the management says I qualify for annual leave only after I work for one full year (365days). Is the management correct? Or should they give me annual leave proportionately say 7 days for having worked 6 months.

Your annual leave is covered by security services Trade Wage Board. Accordingly you are entitled for leave only on the second year of employment, which is similar to shop and office employees. The "year of employment" commences from 1st January. If you were given employment in the first quarter of 1997 (Jan 1st to 31st March) you are entitled for the full 14 days leave from 1st Jan 1998. If employment commenced in the second quarter, year leave entitlement is 10 days in 1998, If employment commenced in the third quarter (July –Sept 1997) you are entitled for 7 days leave in 1998.

And if employed in the last quarter (Oct- Dec 1997) you will be entitled for 4 days leave in 1998.

Due to the confidantial nature of the queries sent us we do not publish the names & addresses of the senders. And also we do not reply any letters by post individually.

Please do not hesitate to write in to us about any problems you may come across regarding employment. Our expert on employment matters may advise you on any such matters. Our address is

    "Industrial Relations Forum",
    C/O Sunday Times,
    No 47 , W.A.D. Ramanayake Mw.
    Colombo.12
    Fax no.448323,423921.
    E.mail. Wnlgen@wijeya.lk

Presented on the World Wide Web by Infomation Laboratories (Pvt.) Ltd.

More Business * Are trade unions necessary? * Emirates the best: UK readers vote * MBL workshop on market needs * Lanka - Pakistan Business Council * Aggressive selling takes Eagle to the top * IM president stresses Professional management * SatLink takes in Lanka * CMU fights back while political unions lose sting * UTE sells vibrator rollers to RDA * Ceylinco plans luxury homes in Colombo * Com. Bank reports highest profits

Business contents page

Business Archive

Front Page| News/Comment| Editorial/Opinion| Plus | Sports | Mirror Magazine

Hosted By LAcNet

Please send your comments and suggestions on this web site to

The Sunday Times or to Information Laboratories (Pvt.) Ltd.