Sri Lanka News

The most talked about news on Sri Lanka

Opinion of the Day: Ways to fix the world’s financial system

The current turbulence in the global economy provides a good opportunity to undertake some necessary reforms. Prime Minister Brown writes that cross-border crisis management arrangements must be shown to be robust and transparency issues must be addressed to counter the underpricing of risk.
It is crucial that countries avoid lurching back towards protectionism and seeing globalization as a threat. Mr. Brown calls for progressive businesses and governments to agree to a manifesto for successful globalization and reiterates his commitment to achieving a fair WTO settlement on trade.
About the Author
The writer is the prime minister.

January 26, 2008 Posted by | Economy & Business | Leave a comment

Mergers – acquisitions sometimes work sometimes fail

By Steve A. Morrell

At the Chartered Institute of Management Accountants symposium ‘Driving Superior Performance’, last week, Ronnie Peiris Executive Director John Keels Holdings Limited, quoting survey 2001 of Klynveld Peat Marvick Goerdeler (KPMG), said that there was no finite conclusion that mergers or acquisitions were beneficial or regressively punitive. He said the survey produced quite some shocking findings; 30 per cent added value, but approximately 39 per cent of those deals did not produce salutary or negative impacts. In short they made no difference to a company’s ultimate holding value. The survey also indicated 31 per cent such acquisitions destroyed value.

Mergers and acquisitions (M&A) in large part do not as a rule always produce ‘good’ results.

Professor Michael Bromwich, Professor of Accounting and Financial Management at the London School of Economics in his keynote address said that accountability required from organisations worldwide is increasing and would seem unlikely to diminish. Similarly Governments now demand greater transparency in any enterprise developer although most such official entities merely pay lip service to their avowed need to reduce red tape and to move away from such performance strictures.

Employee training and information systems were imperative for effective strategy, but simultaneously financial analysis was equally of added value to any organization.

Also at this symposium, Gillian Lees, Governance specialist Technical Department CIMA, detailing aspects of the Balanced Score Card also addressed role of the Board (Of Directors), in strategy development. She said Boards quite often struggle to be effective and contribute to strategic development because of lack of time and crowded agendas. Greater complexity of business combined with information overload usually ends with directors actually forgetting much information they are given because of volume of such information being varied and complex. They often tend to forget decisions of the previous meeting. ‘Very often this is because of lack of robust strategic process at board level,’ she said.

Her presentation also included enterprise governance, which included corporate governance, business performance, accountability assurance, and value creation and resource utilization. Companies that had failed included Marconi,Cable and Wireless, and also Marks and Spencer. Successes were also recorded.

She also said that a CEO vacancy should be anticipated at Last 2 years I advance and Directors should first look at possibilities internally. Outside influx should only be an alternative if an internal candidate could not be found.

Poor corporate accounting would invariably lead to the shocking revelations of the scandal and also mismanagement of Xerox, which hastened departure of its CEO. -The Island

November 7, 2006 Posted by | Economy & Business, Media Journalism, News | Leave a comment

‘Capello’ opens in Colombo

Having begun his training under Ramani Fernando, who ceremonially opened the Salon ‘Capello’, Romesh Atapattu has gone from strength to strength winning many international awards along the way.

"Capello" is the newest salon in town which was opened last weekend at Sulaiman Terrace and is the venture at the head of which will be hairdresser and beautician Romesh Atapattu. Having won many coveted awards in hairstyling and beauty culture at prestigious international competitions he has returned after comprehensive training in the field of beauty in the UK to embark in this salon of his own. His brother Asanka Atapattu will be involved in the salon on the financial side and business management.

They have combined their skill, talent and expertise to open this state-of-the-art salon, with unusual interior designing. A black and white theme dominates the interiors with a miniature fountain in the midst of the salon giving an ambience of relaxation and calmness. Romesh has paid detailed attention to create a perfect atmosphere and the salon is on a par with any such and is of international standard.

His services offered to the clients are many from simple hair cuts to hairstyling, beauty treatments and spa treatments in the spacious building reeking of style and elegance. The chief guest for the opening is Ramani Fernando of Ramani Fernando salons and guest of honour is Neela Jayawardena of House of Fashions. -Sunday Island Text by Zanita Careem
Pix by D. Banduwardena

August 6, 2006 Posted by | Economy & Business, Health and Wellnes, Media, Media Journalism, News, South Asia, World News | Leave a comment

In Parliament on Tuesday – Rupee devalued over the last four years – Bandula Gunawardena

Bandula Gunawardena (UNP Colombo District): Our rupee has been devalued over the last four years.We have not taken steps to open capital account. India also opposes the WTO. They have now taken steps to open capital account.

Malaysia has a plan to earn 7 billion dollars in 2007. There is resident tourism. The country has planned to build houses for foreigners. There will be large housing complexes built for the foreigners who will come to reside there. There will be cities exclusively for tourists. Through this system they hope to provide educational facilities to foreign students.

All the international hospitals will open their hospitals in Malaysia. This is called health tourism. They will also encourage leisure tourism. They will take steps to strengthen the dollar and also to provide employment.

We do not have restrictions for foreign education, but most of the people do not have the means to achieve this. They even sell their land to do so.

We can also introduce Ayurvedic systems in our hotels. This could be a tourist attraction. If we are to strengthen the rupee we have to take such steps. We are exporting only primary products. We are far behind others.

We would not solve the burning problems if we do not see reality. To build the country, we need to have a national consciousness.

We have to think of new ways and means of earning more dollars. We should study systems in India and Thailand.

Rohitha Bogollagama (Minister for Investment Promotion): Anti Dumping and Countervailing Duties Bill and Safeguard Measures Bill debated today has contemporary value and far reaching benefits. For a long time we have been waiting for this legislation.

Sri Lanka has fared well in measuring up to the expectations. Our exports have grown.

Today we are competing in the global market, through value based products made in Sri Lanka.

We need to be liberal, not only for industry but services, education and the like.

We are confident that the vision of the President and "Mahinda Chinthana", along with the action plan proposed, would achieve the desired results.

In the absence of measures for safeguards, the exporters were face difficulty. With this bill in place, it will safeguard the environment and production base. This is a tremendous boost for the investment climate.

It will ensure greater production in our country.

It is by getting more investment, that we could achieve it. We are now looking at a production base, service base and investment under an industrial base spread in Sri Lanka, we have started 20 new factories.

There are local investors that are competent to investing in our country. We have to bring about new avenues.

We need credibility to attract foreign investment, we are directing towards the international market to promote local investors.

We expect to generate more income from the export of gems. We are ready to establish an oil refinery and are focussing on exporting such oil in the international market.

Wasantha Samarasinghe: With the new trend in economy and finances, the intended measures to draw investors to our country should be done by protecting the local investors and local market. Attempts should be made to generate employment.

We would like to emphasise on the fact that there are many sectors that should be paid attention. The education, health and transport sectors should be developed. The local economy should be stabilized.

Before implementing any action, study of the current situation should be taken into account. Inviting foreign capital is good, but more consideration should be paid to the country’s progress.

Ravi Karunanayake (UNP Colombo District): We are happy that the government is continuing our efforts. The government has accepted the World Trade Organization. It also should ensure conducive environment for investment opportunities.

Sri Lankan investors are having a "wait and see" approach. We should ensure proper justice system is there.

Where is this country taken to? We must take action on people who breach these laws.

While we are bribery legislation in, we should have competent people to implement and controlling them. If we are to develop we must attract investment. We must ensure we bring in necessary conducive environment for investment.

The rupee is devalued. Inflation is up 10 -11 per cent. We need to have a strong and vibrant economy. Political stability is necessary. We must have our macro policies in place.

Ensure corrupt free healthy environment. People’s living standard should increased, employment should increase.

Prof. Tissa Witharana (Minister for Science & Technology): New liberal theories are in place in today’s world. This has enabled easy access of goods and services internationally. This is the only system that we could send the goods produced in our county to international markets.

But, we face various taxes and barriers in this process.

It is of great concern, that what our country imports are of good quality. Our’s should not be the dumping ground.

The two bills presented are timely and important. If we enforce these rules and regulations we could guide the economy properly.

We expect to introduce modern technology to rural areas to produce quality products. There is a special bank namely SME bank to assist small and medium scale entrepreneurs. The two bills are essential for the protection and preservation of our economy.

Jeyaraj Fernandopulle: Meeting of a consultative committees will be held shortly.(TIO)by Sanjeevi Jayasuriya

April 5, 2006 Posted by | Economy & Business, Media, Media Journalism, News, News and politics, Press Release, South Asia, World News | 1 Comment