Financial Times

Okanda Finance to sue Central Bank
By Rajika Chelvaratnam
Okanda Finance (Pvt) Ltd has decided to file action against the Central Bank in the Commercial High Court with the possibility of a future action in the Supreme Court for violation of fundamental rights.

"We are reluctant to take this course of action," said M.B.D. Silva, Managing Director of Okanda Finance, adding that they were compelled to do so as the Central Bank was trying to harass companies who contribute to the development of the country.

This follows a notice issued by the Non Bank Financial Institutions Supervision Department of the Central Bank naming 27 companies, including Okanda Finance, as having no authority to accept deposits or any other investments similar to deposits.

The company said that great damage had been caused to them due to the Central Bank notice. "Not only us but all the other companies involved in development activities in the country," added Silva.

An Okanda action is already in progress at the Court of Appeal in which a temporary stay order had been issued by the Court against the Central Bank preventing the bank from demanding certain confidential documents from the company for examination by the CB.

The Director of the Non Bank Financial Institutions Supervision Department, L.K. Gunatilake declined comment on the matter as it is presently before court.
Gunatilake said the list was prepared on the basis of available information and that there may be other institutions that mobilise funds from the public that have not been included in the list.

Okanda Finance said the Central Bank's interpretation of 'finance business' in the Finance Companies Act was 'a joke' and that it would render illegal transactions such as share trading, issue of debentures, and acceptance of advance payments. It would also not be possible for merchant banks and leasing companies who are not authorised by the Central Bank to function.

The company maintained that an interpretation in regard to such an issue ought to be made by a court of law and not by the Central Bank. Okanda Finance is involved in development projects such as teak plantation projects, hydro power projects and housing projects.

Leo Burnett work featured in international advertising book
"How Asia Advertises", the latest advertising book by advertising veteran Jim Aitchison has showcased the campaign developed by Leo Burnett Solutions Inc for the Sri Lanka Army as one of Asia's best campaigns.

Out of the over 90 Asian cases documented in this book, this was the only one from Sri Lanka giving an image boost to the Sri Lankan advertising industry in the international arena. The Sri Lanka Army campaign was credited as a campaign which significantly boosted the army's image at a time when the Sri Lanka's civil war had caused low morale and a fatalist attitude nationwide whilst boosting its recruitment numbers, according to a Leo Burnett statement.

"How Asia Advertises" is an incisive look at advertising specifically designed for the Asian psyche and its effectiveness. This book details how advertising companies have succeeded in significantly affecting people and thus causing a significant corresponding jump in awareness and in sales of product or service. Each campaign is broken down in a concise yet thorough manner under sections like objective, detailed strategic development, and results achieved.

The book has done significantly well in Europe and the Americas as well as Asia and Australia. The guru of marketing, Jack Trout, who invented "Positioning" and wrote books like "Big Brands Big Trouble" and "Differentiate or Die" called it "one of the best books on advertising I have ever read."

Jim Aitchinson is a well known personality in Asian advertising, having been part of the field for twenty years. His most recent designation was Executive Creative Director for Singapore's Batey Ads. He is a multiple award winner and writes copy for ads in English and Chinese. Aitchinson's stint at Batey Ads was followed by his transition to full time author and lecturer.

Estate workers spent a lot of money on alcohol
R. Paskaralingam, Advisor, Ministry of Policy Development and Implementation says the best solution to minimize estate youth frustration is to afford diversified opportunities now available to the rest of the country, and meet their aspirations to avoid internal dissension.

He was addressing a Joint Forum in Colombo for Chief Executive Officers of Plantation Companies at a workshop on "Way forward towards human development in the plantations." It was organized by the Planters' Association of Ceylon in collaboration with the Plantation Human Development Trust.

Austin Fernando, Secretary to Ministry of Defence, said the principle of equity should be applied to the estate population who lacked basic facilities such as school buildings, hospitals and housing.

He urged the plantation companies to take over the responsibility of meeting these basic needs and also to provide for the needs of the aged population, rather than burdening the government. Dan Seevaratnam, Director, PHDT observed that due to poverty, a high proportion of plantation workers were addicted to alcoholism and nearly 50 percent of their income was spent on liquor. (QP)

Centre for Poverty Analysis launches new website
The Centre for Poverty Analysis (CEPA), one of Sri Lanka's leading service providers on poverty related issues, launched its website on February 6. “It is certain the website would increase the awareness of the activities of CEPA and consequently enhance the contribution it could make to the reduction of poverty,” CEPA s Chairman Dr. Nimal Sanderatne said at the websites launch.

Designed by Cyber Trade (Pvt) Ltd. and accessible on the world wide web at www.cepa.lk , the website is a show-window to the many activities of CEPA and is a user-friendly guide to the professional services the centre provides in applied research, advisory services, training and dialogue on poverty related development issues. The constant interaction between the research focus of the organization and its consultancy and training components allows for synergies to develop in such a way as to enhance the applied focus of CEPA services.

Established in May 2001 as an independent and non-profit organisation, CEPA’s main objectives are: Provision of independent analysis on the causes, characteristics and impacts of poverty in Sri Lanka; capacity building of development organizations and professionals to monitor poverty related impacts; and the improvement of know-how transfer and policy dialogue on poverty.

CEPA programmes are presently funded by the Department For International Development (DFID) UK and the Ministry for Economic Cooperation and Development of the Federal Republic of Germany, through the German Agency for Technical Cooperation (GTZ). GTZ also provides technical support through the Poverty Impact Monitoring Unit (PIMU), which facilitated the establishment of CEPA and at present is CEPA's main partner organization.

At present, CEPA's library contains a growing volume of literature on poverty related issues and impact monitoring that is available as a useful source of information for interested persons.

“The website is another milestone in CEPA s innovative and creative approach to increasing understanding and seeking solutions to the multi dimensional problem of poverty,” Dr. Sanderatne was quoted as saying in a CEPA statement.

Back to Business