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Projected economic growth in North & East regions will be 13 per cent over five years

The economy of Sri Lanka’s once war-torn Northern and Eastern provinces are set to grow by around 13 percent per annum from 2011 onwards for the next five years, according to the Governor of the Central Bank of Sri Lanka (CBSL). CBSL Governor Ajith Nivard Cabraal (inset) made these remarks in delivering the 60th Anniversary Oration of the CBSL a fortnight ago, on the topic of ‘Promoting financial inclusiveness – The experience of the past two years’. “There is a clear drive towards holistic development in the North and East to ensure that people sustain their economic achievements and translate them into a way of life. We expect that the range of investments

made in these provinces will result in a growth rate of around 13 percent per annum in these provinces, from 2011 onwards for the next five years,” Cabraal said. According to the Governor, it has been encouraging to see that the Northern Province (NP) had recorded the highest nominal growth rate of 14% in 2009 ahead of all other Provinces although on a low base. The contribution to the country’s GDP by the NP increased to 3.3% in 2009 from 2.8% in 2006. The Eastern Province on the other hand recorded the second-highest nominal growth rate of all provinces, at 14% in 2009 while its contribution to the country’s GDP increased to 5.8% in 2009 from 4.9% in 2006. “Although the figures have not been finalized for 2010, we believe the results will be similar to 2009,” the Governor pointed out. He added that in order to maintain these growth rates, the government is focusing on improving infrastructure in these areas during the years 2011 to 2014. Some of the major investments he identified were the rehabilitation of key roads, railroads, hospitals and bridges, restoration of industries that closed down because of violence, implementation of large scale irrigation schemes and projects for providing electricity and water, establishment of vocational training centres and technical colleges for skills development, upgrade of fisheries harbours and development of tourist attractions. According to the Ministry of Finance and Planning, Rs.251.6 billion has been allocated for improving infrastructure in the ‘Vadakkin Vasantham’ programme from years 2011 to 2013, while in 2011 alone Rs.50.9 billion allocated for the North and Rs.26.6 billion for the East. Rs.433 Mn loans for Northern region farmers The livelihood of an estimated 30,978 farmer families is beginning to flourish under the Central Bank’s Prabodhi Loan Scheme with emphasis on the Northern farmers for which a sum of Rs. 433 million has been pumped as loans for some 21,000 people. Explaining the potential of the scheme, Central Bank Governor Ajith Nivard Cabraal stressed the fact that this government concept was aimed at primarily alleviating poverty in the country and collectively raising the agricultural output in the country under the common economic drive. “What we want to see is everyone playing a part in the country’s economy from home gardening under self projects upwards where a gamut is in place to fund these farmers through various banks, particularly the Bank of Ceylon,” said the Governor of the Central Bank early this year when he met 33 Jaffna women farmer families at the Central Bank office. The occasion took a national as much as a colourful atmosphere as these poor families torn by a 30-year-old war freely mingled with Central Bank officials as they gleefully lapped up every moment of it as they set for official photographs with the bank authorities. For them, it was a type of voyage they had set out on as they were scheduled to head later in the day to the South to meet with their Sinhalese counterparts engaged in farming. Initially, areas in the North East such as Jaffna, Batticaloa, Killinochchi, Mannar, Trincomalee and Vavuniya have been identified to promote farming activities through farmer families under the Prabodhi Loan Scheme. Benefiting under this scheme are many war widows from the North east. Meanwhile, the Deputy Governor of the Central Bank, Dharma Weerasinghe told journalists that the project was taking off positively with many of these women farmers already having profitable bank accounts. “Some of them have businesses worth lakhs,” the Deputy Governor observed. The Assistant Governor, W.M. Karunaratne said that in all 14 districts throughout the island had been identified including Moneragala, Badulla, Puttalam and Polonnaruwa. Chunnakam is a natural source for limestone Financial powerhouse LB Finance unveiled its second branch in the Jaffna Peninsula when it opened in Chunnakam recently, signaling its intent to emerge as a key factor in the northern district’s re-development drive. Chunnakam, just 10km from Jaffna town has been known for its limestone and a hawkers’ street bringing in people by their thousands, making the street impassable on trading days. “We have been doing our homework and identified Chunnakam as a base for development, says Sumith Adhihetty, Managing Director of LB Finance. A province in transition, the Jaffna district is home to many people now gradually re-settling to the formal economy and as a leading finance company, LB Finance has the advantage of a product spread more accessible to such people, he says. The branch was declared open by the Senior Marketing Manager, Roshan Jayawardena. The expansion across the island is crucial especially during the current period of post-war recovery and growth. The North and East are about to take on a new boom in the country and this financial giant dominating such a city as Jaffna is fundamental. LB finance has taken the industry by storm with its distinctive brand of financial services, recording phenomenal growth in spite of the recent financial meltdown. It operates through a highly-integrated network of branches offering cutting-edge solutions through services such as acceptance of fixed deposits, leasing, hire purchase, microfinance, inland money transfer, gold loans, factoring and other credit facilities.

Published in Canada by The Times of Sri Lanka Vol.9 JUNE 2011

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Exports surge in March In Sri Lanka, March has produced a record US$ 1.057 billion in exports, an achievement which is a first of its kind in the country’s history, the Central Bank said. It said earnings from exports in March 2011 increased by 59.5% year-on-year,

to $ 1,057 million reflecting increases in all major categories of exports. “This is the first time that monthly export earnings surpassed the $1,000 million level,” the Bank said in releasing its latest external trade data. It said expenditure on imports increased by 73.0% to $ 1,689 million in March 2011 whilst the trade deficit in March 2011 expanded to $ 632.4 million. During the first quarter of 2011, the cumulative earnings from exports and expenditure on imports have increased by 54.3% to $ 2,721 million and 39.9% to $ 4,458 million, respectively. The largest contribution to the growth in exports in March 2011 was from the industrial sector, led by significant increases in exports of textile and garments. Other key categories of industrial exports, except machinery and equipment, also performed well in March 2011. Exports of petroleum products increased by 361.1% reflecting higher volumes and prices of bunkering and aviation oil, compared to March 2010. Earnings from exports of rubber products increased by 75.6% during the month. Agricultural exports, which accounted for 16.0% of the total export earnings in March 2011, increased by 40.3%, year-on-year, reflecting the sound performance by the tea, rubber, coconut and minor agricultural sectors, as they continued to gain higher prices in the international market. In line with the higher oil prices in the international market, the average export price of rubber increased by 70.5% year-on-year, to $ 5.13 per kg in March 2011. The average export price of tea remained high at $ 4.86 per kg during the month. Earnings from minor agricultural exports increased by 75% to $ 40.3 million in March, 2011 led by the high prices of cocoa products, sesame seeds, nutmeg and mace. All major categories of imports increased in March 2011, reflecting higher prices in the international market and higher domestic demand. The largest contribution to the overall increase was from intermediate goods (60.1%), followed by consumer goods (21.3%). Expenditure on intermediate goods imports increased due to significant increases in petroleum and textiles and clothing imports. The average import price of crude oil stood at $ 111.31 per barrel in March 2011. Textile and clothing imports, which are used as inputs for apparel exports, increased by 115.5% during the month. Expenditure on imports of consumer goods increased mainly due to the higher expenditure on non-food consumer goods, particularly, motor vehicles ($ 90 million), medical and pharmaceutical products ($ 28 million) and electrical equipment ($ 14 million). Import expenditure on food and drink also increased due to higher expenditure incurred on imports of sugar ($ 51 million) and wheat ($ 52 million). Investment goods imports also increased in March 2011, due to substantial higher imports expenditure in machinery and transport equipment. During March 2011, workers’ remittances increased by 34.9% to $ 503 million over that of 2010. The gross official reserves continued to remain above the targeted level and stood at $ 7.2 billion by end April 2011, without Asian Clearing Union (ACU) balances. Based on the previous 12-month average expenditure on imports of $ 1,273 million per month, the gross official reserves without ACU balances were equivalent to 5.6 months of imports. Textiles and Apparel shows 68.3 percent growth Sri Lanka's exports surged 59.5 percent in March to 1,057 million dollars, topping a billion dollars for the first time helped by a steep increase in industrial goods as well as rising commodity prices, official data showed. Textile and apparel, the country's key industrial export rose 68.3 percent to 473 million US dollars, rubber products rose 75.6 percent to 79.1 million US dollars and food beverages and tobacco rose 30 percent to 58.4 million US dollars, the Central Bank said. Agricultural exports rose 40.3 percent to 219.6 million US dollars with revenues from tea rising 27.5 percent to 134.6 million US dollars. The central bank said the average export price of tea was high around 4.86 dollars a kilogram in month. Rubber prices were up 70 percent from a year earlier to 5.1 dollars a kilogram. Exports or petroleum products had risen 361 percent with rising prices and volumes of aviation fuel and bunkering oils. Food, base metals, minerals and precious metals have surged against the paper US dollar in recent months as money printing by the Federal Reserve pushed US currency down against real goods and services. Sri Lanka's imports also rose 73 percent to 1.69 during March. Imports of textile and clothing which are inputs to future apparel exports rose 115 percent to 253 million US dollars. Petroleum, a key intermediate good that keeps the economy ticking rose 74 percent to 298 million US dollar. Investment goods imports rose 95 percent to 163 million US dollars and consumer goods rose 60 percent to 402 million US dollars. The trade deficit doubled to 632 million US dollars in March. In the first quarter of the year exports rose 54.3 percent to 2.72 billion US dollars, imports were up 39.9 percent to 4.4 billion US dollars and the trade gap widened 22 percent to 1.2 billion US dollars. Worker remittances rose 34 percent to in March to 503 million US dollars. In the first quarter remittances were up 27 percent to 1.2 billion US dollars. Sri Lanka has a pegged exchange rate and inflows from abroad that increase the domestic incomes including remittances and net foreign borrowings will drive up imports and widen the trade deficit.

Baur Asia expansion in Sri Lanka The management of Baur Asia Lte. Ltd., announced that Sri Lanka is among two other countries (Bangladesh and Switzerland) included in its expansion program. In the process three very experienced personnel have been recruited to the organization as vice presidents responsible for business development. Anton Thevapalan based in Colombo, Sri Lanka has long years of experience in the corporate sector and tourism and with the growing importance of tourism and hotel management he

brings a wide knowledge into the organization. Nadeem Rahman based in Dacca/Bangladesh is from a diplomatic background and brings long years of experience in the corporate sector both in Bangladesh and Nepal. Roger

Kunz based near Zurich/Switzerland has many years of experience in the corporate sector and has worked many years in Asia. He brings a vast experience in business negotiations to our organization. Baur Asia Pte. Ltd. is a sister company of A. Baur & Co. (Pvt.) Ltd. and assists companies and organizations to establish themselves in the growing Asian markets. Through its tie up in Sri Lanka the company is in negotiations with a famous Swiss Hotel School to establish itself in Sri Lanka. The vice presidents based in Sri Lanka are Cubby Wijetunge, Mahanama Dodampegama, Amal Peiris, Anton Thevapalan, Angelo Nicholas and Yohan Dissanayaka.

Jayaseelan gets key post at SriLankan

SriLankan Airlines has appointed G.T. Jayaseelan, currently Head of Service Delivery as Chief Marketing Officer with effect from June 1, airline officials said. They said Mr. Jayaseelan will be the de-facto second in command at the airline next to CEO Manoj Gunawardene, who however steps down on July 31 to

be replaced by current Mihin Air CEO Kapila Chandrasena. Other appointments announced on Friday include M. Fazeel, Head of Worldwide Sales being made Head of Commercial Operations while C.I. Olagama, Manager- Sri Lanka & the Maldives is taking over as Head of Service Delivery. They both report to Mr Jayaseelan.

Further relaxation of forex rules in June The Central Bank is further relaxing foreign

exchange regulations next month under its current policy of liberalizing foreign exchange, as reserves improve and the new rules will include allowing fund transfers between NRFC accounts. Transfers between NRFC accounts to be permitted. Central Bank Governor Ajit Nivard Cabraal said guidelines

for these new regulations to be announced in mid-June are in line with the CB reforms to facilitate foreign exchange transactions and make it easier to do business. “There are about seven or eight new things happening,” he told the Business Times. Among them are in addition to opening out NRFC accounts to allow internal transfers, students to be permitted to open accounts overseas when on studies and a set of guidelines for local companies to list shares on foreign stock-exchanges. The last-named proposal (listing shares overseas) was announced last year but no guidelines were issued. The Central Bank has been relaxing foreign exchange regulations over the past 18 months in a bid to prop up the economy in the post-war period. The Bank announced similar measures last November where foreigners were permitted to invest in Rupee Denominated Debentures issued by local companies; expediting approvals for companies to borrow from foreign sources; permission for foreign companies to start businesses in Sri Lanka; foreigners on tour or business in Sri Lanka to open accounts in foreign currency; foreign diplomats and their families to transact in foreign currency and Sri Lanka rupees, and permission for insurance companies to invest a part of their assets abroad, among others benefits. Asked about any forthcoming bond issues, the Governor said the Government has factored in foreign borrowings in the budget and there are many ways to resort to this. “Our options are fairly wide – we can raise Sri Lanka Development Bonds; we can enhance the limits we have in our treasury bonds or we can have international bonds in Dollars or treasury bonds in Euros. We have many options and we have to evaluate carefully which one is the best,” he said. The Bank has invited proposals from some international investment banks for investment advice on bonds. “This is a highly complex market and needs advice. We will use this advice and also look at the best time, what is the best instrument, what is the best tenor, what is the best quantum,” he said adding the proposed bond issue would be for budget support and debt repayment. The Bank is expected to launch the issue before October.

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Top level diplomatic appointments 13 AMBASSADORS; 4 HIGH COMMISSIONERS President Mahinda Rajapaksa yesterday said that Sri Lankan officials in overseas missions will have to play a greater role in rebuilding the country’s economy. He was of the view that Sri Lankan mission officials who are overseas should deviate from traditional diplomatic practices. The President made these observations at the presentation of credentials to 17 newly appointed Heads of Sri Lankan missions overseas at Temple Trees yesterday. They include 13 ambassadors and four High Commissioners. President Rajapaksa opined that Sri Lankan diplomats in overseas missions should have a thorough knowledge of the present situation in the country. He noted that Sri Lankan diplomats should acquire whatever assistance possible from the host country to promote the national economy. The President added that these officials should also have a proper understanding over assistance that can be provided from Sri Lanka and its private sector industry. President Rajapaksa said that these officials are entrusted with the responsibility of finding more educational and employment opportunities to the Sri Lankan youth in their respective countries. He added that Sri Lankan officials in overseas missions should promote relations with different social structures and influential groups in host countries. President Rajapaksa also said that Sri Lankan diplomats should boost the image of the country by educating the respective countries of the true situation of Sri Lanka. He was of the view that these officials have a responsibility to defeat the malicious campaign being carried out by LTTE remnants in foreign countries against Sri Lanka by disseminating the true situation. Secretary to the President Lalith Weeratunga said that the newly appointed officials for Sri Lankan missions have a vast experience in foreign service and many other fields. Foreign Secretary Karunathilake Amunugama, added that these officials who would be posted to Sri Lankan missions overseas as high commissioners and ambassadors have extensive training in numerous fields. He thanked President Mahinda Rajapaksa for providing guidance and facilities for this novel programme. Amunugama added that these officials would visit Trincomalee, Kilinochchi and Jaffna districts and would study post conflict situation in those areas. Foreign Secretary Amunugama added they will study on the peace and the development that has dawned to the North and the East in the aftermath of eradication of terrorism. The new ambassadors are: Asitha Perera for Italy, W.W. Tissa Wijeratne for the Republic of Korea, C.A.H.M. Wijeratne for Kuwait, Ranjith Uyangoda for People’s Republic of China, A.L.A. Aziz for Austria, Jayantha Palipana for Qatar, M.A.K. Girihagama for Oman , M.R. Gunaratne for Lebanon, Buddhi K. Athauda for the Netherlands, Sarath Kongahage for Germany, H.R. Piyasiri for Myanmar, General Shantha Kottegoda for Thailand and Oshadi Allahapperuma for Sweden. The four new high commissioners: T. Ravindiran for Kenya, Admiral T. S. G. Samarasinghe for Australia, Kalyananda Godage for Malaysia and Ferial Ashraff for Singapore.

Dr. Chris Nonis - SL’s envoy in the UK Dr. Chris Nonis, designated as Sri Lanka’s High Commissioner to London, is awaiting clearance from the British Government, official sources here said. There was speculation earlier that former Navy Commander Wasantha Karannagoda would succeed Nihal Jayasinghe, who completed his stint in January this year, but Karannagoda has been sent to Japan instead. P. M. Amza has served as the Acting High Commissioner for the past five months. Nonis is a doctor with an M.B.B.S. from Royal Free Medical College hospital in North West London. He is the incumbent chairman of Mackwoods and also serves as an advisor to many business organizations. He studied in London and got a first class honours Bsc degree from Imperial College in London. He was also appointed as the Deputy Chairman of Royal Commonwealth Society (RCS) in London in 2008. Dr. Nonis is the first Sri Lankan to hold such a high position in the Society. Her Majesty the Queen of Great Britain is the patron of RSC. He is also an advisor to the World Health Organization (WHO).

Consul General for Sri Lanka in Los Angeles President Mahinda Rajapaksa has appointed Colombo National Hospital Director Dr Hector Weerasinghe (inset) as Consular General of Sri Lanka for Los Angeles, United States of America. Dr. Weerasinghe is due to leave for the United States to assume duties from June 30. Dr. Weerasinghe began his career as a physician in the Kalutara Hospital in 1975. From 1985, he served as district medical officer at the Panadura Hospital till his appointment as Colombo National Hospital director in 2000. He has been in service as Colombo National Hospital Director from the 2000 for 11 years. Dr. Weerasinghe has received world acclaim as a senior medical administrator.

President

Mahinda Rajapaksa

ODEL launches first hill country shop in Kandy Glamour, excitement and anticipation took centre stage when the Kandy City Centre throbbed with life at the opening of ODEL’s first store in the hill country capital on Friday, 20th May 2011. Hundreds of enthusiastic Kandy folk were treated to a gala fashion show at the ‘roof top’ terrace of the mall in a prelude to the eagerly-awaited opening, as ODEL overhauled yet another

milestone in characteristic style. Located on Level 3 of the popular mall, the store of 4,200 square feet was filled ‘to capacity in seconds after ODEL founder and CEO Otara Gunewardene and Thusitha Wijayasena, the owner of Kandy City Centre, cut the ceremonial ribbon to formally open the store. Pictured here are some of the models at the fashion show, and scenes at the opening of the ODEL store at Kandy City Centre.

Black tea challenged by other varieties

DUBAI (AFP) – Exotic and organic teas are wooing tea drinkers and challenging traditional black tea's dominance as never before, tea industry experts say, as a tea factory in Dubai bids to become the world's largest. The shift in global tea-drinking trends is felt at the Jebel Ali Free Zone, despite it being more

than 2,000 kilometres (1,250 miles) from the nearest tea bushes in the lush misty mountains of South Asia and East Africa. Unilever's Jebel Ali tea-blending and packing plant is in the middle of a major tea-consuming market -- the oil-rich Middle East -- and records the changing habits of tea drinkers. The plant, producing 1.1 million tea bags an hour every day all year round, begins expanding later this year aiming to double its output within four years to become the world's biggest tea factory. "Green tea was relatively unheard of 25 years ago in many Middle Eastern countries," Dubai-based Kurush Bharucha, a Unilever director and world authority on tea, told AFP. "But this has changed rapidly in the past five years. Green tea has got a lot of good press... its health properties are well known," added the professional tea taster, buyer and blender. "Women, in particular, are embracing green tea in a big way and really going for it as a refreshing, healthy beverage choice". The health properties of green tea are also helping the financial health of the whole tea industry. Nations that export orthodox black tea, such as Sri Lanka, have in recent years begun a major drive to produce more green tea as well as exotic varieties. Black tea goes through a process of fermentation, or oxidation, which changes the colour of the leaves from green to black. Green tea production stops the fermentation and retains the colour of the leaves. But both varieties come from the same bush. Decades ago, tea drinkers would opt for either black or green, but now there is a huge choice, and even the humble tea bag is available in an exotic pyramid shape. Mainstream black and green have been joined by, among others, organic, herbal and infusions, single-origin, ready-to-drink and fruit-flavoured varieties. Jasmine, Earl Grey, Camomile, Lemon and Mint are some of the more popular choices. The industry is also seeing a surge in "fruit" combinations as well as libido-boosting "white teas," known as silver tips and golden tips. Tea has been relatively unaffected by the sharp rise in global commodity prices seen earlier this year, but climate change is beginning to affect tropical crops, including tea. Prices are more volatile than ever, and the cost per cup has risen steadily for the past five years, said Bharucha, who believes the industry must become more sustainable and go "green" -- in the environmental sense. Tea has been spared extreme market volatility partly because it is perhaps the only commodity without a "futures" market, unlike commodities such as oil, coffee, cocoa, sugar and wheat. Industry officials agree that a tea futures market did not develop because of the crop's extreme seasonality, its infinitely variable quality and because it cannot be stored for long periods without losing aroma. But officials note that volatility has, indeed, increased in the past few years because of crop failures triggered by droughts, particularly in Kenya, India and Sri Lanka. Sri Lanka, which is competing with Kenya to be the world's top tea exporter, is already working to developing plants that better resist drought, according to the Tea Research Institute in the island nation. By 2015, Unilever has committed to source all the tea in its Lipton brand from plantations certified by the US-based Rainforest Alliance, which guarantees the grower's green credentials. Although the cost of tea would rise accordingly, they expect an increase of up to three percent in sales growth, says Cees Talma, Lipton's global vice president for brand development. He said the global tea market is expected to rise up to seven percent annually, and as consumers become more environmentally aware, those who joined the green bandwagon early will benefit more. "Tea is very much on the health and wellness trend, and we expect the market to continue to grow between five to seven percent a year," he said. "Our challenge is to continue to grow our black (tea) core while extending into new segments like green, fruit and milk tea." Sri Lanka, one of the top exporters, hopes tea sales will rise by 10 percent in 2011. "A boom in world tea exports appears to continue, with a 10 percent increase in volume fuelled by the world economic recovery," its tea board said in its latest report. The report also noted that higher revenues would allow oil-exporting nations to spend more money on their staple beverage. At Jebel Ali in Dubai, German-made state-of-the-art machines pack tonnes of tea into bags and packets, and plant manager Abdelaziz Salah says they must expand to meet ever-rising demand. "We will start an expansion by the end of this year and by 2015 we want to double our output," he told AFP. "We are looking at being the biggest plant in the world."

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SOURCE: CENTRAL BANK OF SRI LANKA AS AT 29 JUNE, 2011

CURRENCY BUYING SELLING Buying 30 days back Selling 30 days back Dollar – U.S. 108.8700 110.4700 109.1500 110.7100 Dollar - Canadian 110.0900 113.4000 111.1500 114.0000 Dollar - Australian 113.6800 117.3700 114.0800 117.4200 Euro (EU) 155.2900 159.4700 152.4600 156.3000 Pound Sterling (UK) 173.4600 177.4200 175.2300 178.9500 Yen (Japan) 1.3349 1.3749 1.3274 1.3620 Franc (Switzerland) 129.7200 133.9700 - - Dollar – Singapore 87.2700 89.7700 - -

QQ11 FFDDII fflloowwss uupp 116600%% ttoo UUSS$$ 223366mmnn June 7, 2011 The Island

Tourism gets US$ 132mn, telecommunications US$ 62mn, apparels US$ 7mn with factories in once war-torn North, East expected to reach US$ 40mn

Foreign direct investment (FDI) flows have grown 160 percent to US$ 236 million during the first quarter of this year, an encouraging sign after expected inflows did not materialize in 2010, the first full year of peace after the thirty-year conflict ended in May 2009. Authorities believe FDIs would rebound this year to reach US$ 1 billion, the IMF believes it would reach US$ 900 million, and this is still a significant improvement from the US$ 516 million inflow last year. Releasing first quarter data the investment facilitator Board of Investments said the annual average FDI flow for the last five years amounted to US$ 668 million, accounting for 2 percent of GDP. FDIs amounted to US$ 600 million in 2009, which saw five months of intense fighting which put an end to terrorism that plagued the country for decades, but was a disappointing US$ 516 million in 2010, a full year of peace. Local and foreign sentiments were at all time highs and many were baffled as to why the expected FDIs did not materialize. Negative perceptions and poor business climate were thrown up some as answers to the puzzle, while some suggested, such as the IMF, that long term investments took time to materialize.

"The goal is to increase the FDI target gradually to US$ 2.5 billion in 2015, resulting in an FDI/GDP ratio of approximately 4 percent and pave the way to achieving an economic growth rate of 8-10 percent," BOI Chairman Jayampathi Bandaranayake said in a statement issued earlier. The strong performance for the first quarter of 2011 was helped by investments in tourism sector which accounted for US$ 132 million", he said. The major contribution to this relatively high value came from strategic investments in Colombo and Hambantota by the luxury Shangri-La hotels chain. The second largest contributor to FDI during the quarter was the utilities sector, driven by investments in telecommunications, representing a total value of US $ 62 million.

The Apparel Sector received inflows of US$ 7 million.

"A decision was taken during the first quarter of 2011 to grant approval for six garment manufacturing companies to set up expansion units in the Northern and Eastern Provinces with projected investment in excess of US$ 40 million. At present, these companies are in the process of finalizing their locations and implementation plans," Bandaranayake said. With the increased emphasis on high value investments, the number of agreements signed during the quarter had declined to 29 from 42 the previous year. However, the total value of estimated investments increased to US$ 882 million in 2011 from US$ 302 million during the corresponding period of 2010. "As a result, the average estimated investment per project increased to US$ 30 million in 2011 (US $ 18 million excluding strategic development projects) versus US$ 7 million in the first quarter last year," Bandaranayake said.

"In accordance with the new tax policies with a reduced general rate of tax, many of the smaller investments, less than US$ 3 million, will be operating under the normal tax regime and will not necessarily be coming within the purview of the BOI. However export companies as well as import substitution industries will benefit from operating under BOI facilitation," the BOI chief said. The IMF has always said Sri Lanka did not need to offer tax concessions to attract investors, as long as the environment was conducive for business. "The period also witnessed a strong increase in imports and exports of BOI companies. Total exports by BOI companies increased to US$ 1,644 million in 2011 from US$ 1,302 million, 26 percent), with quarterly garment sector exports increasing to US$ 994 million in 2011 from US$ 781 million from the previous year, an increase of 27 percent," Bandaranayake said. "The significant increase in FDI is a strong vote of confidence by the international investor community in Sri Lanka, following the 30 year civil unrest. "With the Government placing an increased focus on higher thresholds for investment to benefit from increased concessions, large scale projects which can make a substantial impact on the country’s economy, are expected to account for a major share of investments to the country. "The BOI is confident that the country will leverage the strong momentum into achieving a record inflow of US$ 1 billion this year, and with policy consistency as well as the several state agencies working in harmony and coordination towards this common goal, the country will be a promising investment destination," Bandaranayake said.

Lessons from the past... In October 2010, the Sri Lanka Economics Association held its annual sessions where the country’s leading economics luminary, Prof A. D. V. De S. Indraratna said it would take around 10 years for Sri Lanka to realize a real increase of per capita income. "If we maintain real economic growth at 8 percent we would be able to double living standards in about 10 years. This is more realistic but it is still a record because Korea took 11 years to double its living standard," Prof Indraratna said. "If we wish to double living standards in five years than we would have to maintain growth higher than 12 to 14 percent, but the level of investment, savings and efficiency is constrained," he said.

"We can aim higher and try to double growth as soon as possible. But we must be cautious when estimating time frames. We can achieve this target in five years if inflation is high and the rupee is appreciated but this will only mean that the growth is not real," he said. "Economic growth does not necessarily improve the quality of life. Per capita income was doubled during the last five years from US$ 1,000 to US$ 2,000 but still the bottom 20 percent of population accounted for 4 percent of total household income. A little less than 40 percent of the population earned less than US$ 2 a day. Incomes must be spread if real economic growth was to benefit the people," Prof Indraratna said, adding that the distribution of household income has not improved since the 90’s. Maintaining high growth would require investments to increase to 32 to 35 percent of GDP from current levels in the mid twenties. Private sector investments, from foreign and domestic sources, would have to increase to 26 to 28 percent from current levels of 19 to 21 percent. Public investment would more or less remain the same at around 6 to 7 percent of GDP, which makes it crucial to attract more FDIs.

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The UK government announced that under proposals, the migrants coming to the UK to work on temporary visas will no longer be table to apply for settlement, the British Embassy in Colombo said today. Launching a public consultation on reforms to the employment routes leading to settlement, Immigration Minister Damian Green set out proposals to classify visas as either ‘temporary’ or ‘permanent’ and introduce stricter criteria for those who want to stay in the UK. Immigration Minister Damian Green said that the proposals he is making are aimed at breaking the link between temporary and permanent migration The UK government is implementing reforms to the immigration system which will reduce the level of immigration to sustainable levels. Under the current system, many workers are allowed to apply to stay in the UK permanently. In 2010, 84,000 people who entered the UK for employment

were granted settlement. This compares to fewer than 10,000 who qualified for employment-related settlement in 1997. The UK government has already implemented new settlement requirements for skilled workers entering under Tiers 1 and 2 of the points based system, which require applicants to demonstrate English-language proficiency, continue to meet the salary requirements and to pass a new criminality test. Key proposals under consideration in the 12 week consultation are as follows:

→ re-branding Tier 2 (the skilled worker route) as temporary, ending the assumption that settlement will be available for those who enter on this route; → allowing certain categories of Tier 2 migrant, for example those earning over £150,000 or occupations of a specific economic or social value to the UK, to retain an

automatic route to settlement; → creating a new category into which, after three years in the UK, the most exceptional Tier 2 migrants may switch and go on to apply for settlement; → allowing Tier 2 migrants who do not switch into a settlement route to stay for a maximum of five years with the expectation that they and any dependants will leave

at the end of that time; → introducing an English language requirement for adult dependants of Tier 2 migrants applying to switch into a route to settlement; → restricting the maximum period of leave for Tier 5 Temporary Workers to 12 months; and → closing or reforming routes for overseas domestic workers.

The Immigration Minister further added “A small number of exceptional migrants will be able to stay permanently but for the majority, coming here to work will not lead automatically to settlement in the UK.” The government has committed to reforming all routes of entry to the UK in order to bring immigration levels under control. The settlement, Tier 5 and overseas domestic worker reforms will work alongside the annual limit for employment visas and the recent student visa reforms. The government will consult on changes to the family route later this year, said the British Embassy in Colombo.

IMF calls for transparency, good governance Local private sector complains of being left out of huge projects A review mission from the International Monetary Fund (IMF) has urged Sri Lanka to focus on transparency and improve

governance to bolster market confidence and attract higher investment. IMF Sri Lanka Review Mission Chief Brian Aitkin (inset) told reporters the Government must win private sector confidence by being more transparent in awarding tenders for large-scale infrastructure or development projects. He made these comments during his team’s discussions with private sector representatives who expressed concern over the failure of the government to award even sub contracts of large-scale projects to private firms. Dr. Aitkin noted that the private sector officials had complained they were not even allowed to submit their bids for such projects. He said -- in what is now seen as a matter of course -- the IMF would approve another

installment of $450 million, the seventh tranche under the $2.5 billion Standby Arrangement (SBA loan). This would come after the mission submitted its recommendations to the IMF board in Washington in October and another review by the IMF in September. He said, “There was a perception that the government is sending some potentially conflicting signals about the role of the private sector in economic development.”

This could deter investment and should be addressed, Dr Aitkin noted. On the sidelines of the briefing, he told the Sunday Times that the country’s savings rate would improve with the increase in domestic and foreign investments. On the sidelines of the briefing, he told the Sunday Times that the country’s savings rate would improve with the increase in domestic and foreign investments. Asked about the controversial private sector pension scheme, he said the IMF had nothing to do with this scheme. Opposition critics have claimed that the pension scheme was part of the government’s deal with the IMF to get the next installment of the loan. Dr. Aitkin also advocated the adjustment of the exchange rate according to market conditions in a non-disruptive way. Sri Lanka was experiencing a steady export growth, and continued large remittance inflows had supported reserves, he noted.

“Private-sector credit growth has been rapid, but from a low base, and there are yet no signs of demand-driven inflationary pressures. The Central Bank should, however, be on the lookout for signs of overheating, and be prepared to adjust monetary policy accordingly. Banks and finance companies should also guard against a relaxation of lending standards and the accompanying risk of non-performing loans,” he said. He pointed out that recent investments in banks by the Central Bank using funds of the Employees Provident Fund to buy stocks in banks had raised fears that the state was controlling these institutions. Dr. Aitkin welcomed the government’s initiative of shifting investment promotion away from granting tax concessions. He noted that more steps needed to be taken to institutionalize this policy by revising investment guidelines and regulations to provide more clarity to prospective investors while safeguarding tax revenue.

GGaarrmmeennttss aarree mmaajjoorr SSrrii LLaannkkaann eexxppoorrttss ttoo UUKK H. E. John Rankin, British High Commissioner to Sri Lanka and the Maldives, visited the operations of two UK-based garment companies in Sri Lanka – Coats Thread and Quantum Clothing. The High Commissioner visited the factories of the two companies in Horana town, in order to get an insight into customer-supplier cooperation between the two companies. In 2009, garment sector accounted for a larger part of the over US$ 1 billion Sri Lankan exports to the UK. In 2010, the UK was the second largest FDI investor in Sri Lanka. Coats are the biggest manufacturer of thread in the world. The company has a long presence on the island, following best practices and even driving innovations within its operations. The company has recently signed a deal to work with the Sri Lanka Design Festival, as a part of its support to the fashion and craft industry in Sri Lanka. Quantum Clothing, on the other hand, is a company that exclusively exports its products to Marks and Spencer. Initially, the company commenced its operations in Sri Lanka as a part of Coats Lanka. Producing an output of approximately 300,000 items per week, the company currently provides job to 1,800 people. Coats Lanka supplies Quantum Clothing with some of its requirements for clothing, which is, in turn, directly exported to the UK. The High Commissioner said that his visit would help in understanding the Sri Lankan garment sector’s exports to the UK. It would help increase the foreign direct investment (FDI) from the UK to Sri Lanka. Giles Watkins, Managing Director of Coats Thread Exports, said that a few of the company’s latest innovations in thread have been invented in Sri Lanka. He lauded Sri Lanka as a good hiring market due to its highly skilled workforce. Yohan Lawrence, Country Manager of Quantum Clothing Lanka, echoed similar views. He explained that his company also has production units in Cambodia and India, where production costs are lower than Sri Lanka, however, due to its better skilled force, Sri Lanka is a priority for the company, especially when supplying to popular apparel brands.

PPrreemmiieerr eennggiinneeeerriinngg eevveenntt iinn OOccttoobbeerr Premier engineering event – Techno 2011 – National Engineering and Technology Exhibition is scheduled to be held in the BMICH for the 26th consecutive year on 7, 8 and 9 October, organized by the Institution of Engineers of Sri Lanka, it was announced at a press briefing held in Colombo this week. This year too the usual features would be there with some added events such as the introduction of ‘Undergraduate Category within the usual feature of Junior Inventor of the Year (JIY) Competition. Prof. Ananda Jayawardena, President, IESL said that Techno 2011 is not just another traditional exhibition, but is an event to harness the talents, skills, know-how and the experiences of all the stakeholders. He said that Techno 2011 would enable interested parties to enhance their knowledge in their related fields and provide opportunities for the new and established entrepreneurs and organizations to display and promote their brands names and products and services under one roof. Some of the usual features this year are: Engineering Pavilion, Robot Competition, Engineering Clinic and Engineering related Job Bank. There would also be a special zone exhibiting indigenous products and services. Established in 1906 IESL is the apex engineering body in Sri Lanka and it currently has 14,000 corporate and associate members. These members possess diverse engineering and scientific skills are involved in mega development projects in the country in the private and public sectors.

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TTRRAADDEEWWIINNDDSS EE--MMAAGGAAZZIINNEE IISS PPUUBBLLIISSHHEEDD BBYY TTHHEE TTIIMMEESS OOFF SSRRII LLAANNKKAA

TradeWinds e-Magazine is an on-line electronic magazine that is published by The Times of Sri Lanka, based in Toronto, Canada. It is a by-product of a networking forum whose end objective is to promote bilateral trade, tourism, business, investment and infrastructure development between North America and Sri Lanka. In today’s electronic age, we find left behind if the right information does not reach us at the right time. We dare say that the print industry is a dying breed but we can make a safe assumption that popularity of electronic magazines is fast catching on in business circles especially in developed countries and also in developing countries. TradeWinds e-Magazine is the vehicle that disseminates information from our network. The common belief is that e-Magazines bring news and information instantly to the multitude of computer users who are in the business of entrepreneurship. If the 21st century is about "self-

determination" - and we think it is - then we need to be actively informed and engaged. Journalism has become an interactive, communal exercise in self-education. Business success comes to people who cultivate Inner Networks: Entrepreneurs practicing the art of business success know the power of networks. They take the time to identify and build relationships with key peers, mentors, and advisors. This inner network provides support, direction, and an increased number of people to assist. It’s like this - having an inner network of five people who have a network of five more, grows the network rapidly over a period of time. This is our basic concept. Networking: We expect this network to grow and act as a catalyst to generate a healthy bi-lateral balance of trade between the two countries. “Nothing ventured, nothing gained”. Our ‘Network’ will focus on sharing information in the following areas of business interest:

Civil Construction and Engineering (Tourism Infrastructure and Residential Housing vis-à-vis Condominiums) Technology Transfer (Oil & Gas Exploration, Solid Waste Management, Waste Water Treatment); Education Sector (Canadian Universities for Sri Lankan Students); Tourism Promotion (Outbound tourism from Canada to Sri Lanka and vice versa); Event Management Services for Inbound/Outbound Trade Missions between Canada and Sri Lanka Small & Medium Enterprises – B2B business integration; Commercial Intelligence – interact with senior government officials, private sector business leaders; established trade chambers and state run agencies; Colombo Stock Exchange – On-line trading of stocks; Government Tender Process – Engage in tenders and Expressions of Interest (EOI); Information Technology - Software Development, Business Process Outsourcing (BPO); Renewable Energy - Wind power, Hydropower, Solar energy, Biomass, Bio-fuel, and Geothermal energy.

TradeWinds e-Magazine is an independent publication launched in August 2010 as a quarterly magazine. It is published by “The Times of Sri Lanka”. Due to its growing popularity, we decided to publish the magazine monthly from January 2011, on or around the 25th of each and every month. The editorial team comprises of journalists and business leaders from Canada, U.S., Sri Lanka and other countries. TradeWinds e-Magazine strives to disseminate quality content that is informative and accurate. We hope to capture business news and tender information that is futuristic and meaningful. A few marketing vehicles can match the power of a high-content, free electronic email newsletter delivered regularly to our subscribers’ “inbox”. We hope to fill this void and build a reputation that is credible. TradeWinds editorial team will faithfully work within the confines of accepted journalistic standards. Our vision is to be a leader in the field of electronic publishing. “Sharing information for success”, is our tag line. We strongly believe that “Every news organization has only its credibility and reputation to rely on.” We hope to build and maintain ours!

EEddiittoorr,, TTrraaddeeWWiinnddss ee--MMaaggaazziinnee PPuubblliisshheerr:: TThhee TTiimmeess ooff SSrrii LLaannkkaa

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Upali Obeyesekere

““YYoouu ddrreeaamm ttoo ssttaarrtt aa mmaaggaazziinnee………………aanndd ttoo mmaakkee tthhaatt ddrreeaamm aa rreeaalliittyy iitt wwiillll ttaakkee ffoorrttiittuuddee aanndd hhaarrdd wwoorrkk.. IInn tthhee eenndd,, hhoowweevveerr,, aallll tthhaatt sswweeaatt ccoouulldd ppaayy ooffff iinn tthhee ffoorrmm ooff aa ggoooodd mmaaggaazziinnee eennjjooyyeedd bbyy yyoouurr rreeaaddeerrss..”” JJOOHHNN.. FF.. KKEENNNNEEDDYY,, JJRR..

TTTrrraaadddeeeWWWiiinnndddsss eee---MMMaaagggaaazzziiinnneee

CCCOOOMMMMMMEEERRRCCCIIIAAALLL AAADDDVVVEEERRRTTTIIISSSIIINNNGGG RRRAAATTTEEESSS FFFOOORRR 222000111111

Publication Dates: 12 monthly Issues-30th of each month from January to December 2011

CONTRACT ADVERTISING RATES FOR 12 ISSUES (Packaged price 12 insertions Jan-Dec 2011)

Full Page $1,000 for 12 x insertions Half Page $600 for 12 x insertions Quarter Page $300 for 12 insertions Business Card $160 for 12 x insertions In U.S Dollars

Contract Advertising Rates for 06 Issues (Packaged price for 6 insertions Jan-Dec 2011) Full Page $600 for 6 x insertions Half Page $300 for 6 x insertions Quarter Page $150 for 6 x insertions Business Card $90 for 6 x insertions In U.S. Dollars

ONE INSERTION ADVERTISING RATES PER ISSUE

Full Page $250 per insertion Half Page $150 per insertion Quarter Page $90 per insertion Business Card $25 per insertion In U.S. Dollars

NOTE TO ADVERTISERS: Artwork for the advertisement may be sent via electronic mail or snail mail. A ‘proof’ will be sent before publication. Payment is accepted by Cheque, Wire Transfer to “TradeWinds e-Magazine” Corporate Account held in Toronto, Canada. If advertisers wish to pay in Sri Lanka our Local Representative will manage this transaction. For the calendar year 2011, we will use a standard conversion/exchange rate of US $1 = Rs.100 irrespective of the floating exchange rates prevalent at the time.

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KOKAVIL TOWER COMMISIONED President Mahinda Rajapaksa will commission South East Asia's tallest multi-purpose transmission tower at Kokavil in Kilinochchi tomorrow. The height of the tower is 174 metres. When the Sri Lanka Rupavahini Corporation (SLRC) was set up in 1982 the Japanese engineers selected two locations to set up transmission stations - Kokavil for North and at Pidurutalagala for the rest of the country. A 100 metre high transmission tower was set up in Kokavil. The Kokavil tower was destroyed in 1990 by LTTE terrorists, Mass Media and Information Ministry Secretary W.B. Ganegala said. Addressing the media at Mass Media and Information Ministry Ganegala said that President Mahinda Rajapaksa instructed Economic Development Minister Basil Rajapaksa to reconstruct this tower under the Uthuru Wasanthaya Northern development drive. The foundation stone for the tower was laid in 2009 by Economic Development Minister Basil Rajapaksa and the then Mass Media and Information Minister Anura Priyadarshana Yapa. The material for the tower was brought from China. Amidst various difficulties Sri Lankan engineers, tower constructors and workers successfully completed the construction work. The new tower will have the capacity for digital television and radio transmissions, telecommunication and military communication. Thus it is called a multi-purpose transmission tower, according to Ganegala. He said that the Government has decided to introduce latest digital technology to Sri Lanka from Kokavil tower. The Northern people will experience the benefits of digital technology before the end of this year. The tower will cover the entire Northern region beyond Anuradhapura. Transmissions will be carried out using the latest digital technology, the Digital Video Broadcasting (DVB)-T2 technology. The people in the northern region are deprived of correct Information as they get only commercial programs telecast by South Indian television channels. The new tower will keep them informed of the latest development projects implemented by the Government and further build mutual understanding between the North and the South, Ganegala added. President Mahinda Rajapaksa will open the tallest self-supporting transmission tower in South East Asia- the Kokavil Transmission tower-in the Mullaitivu District in the Northern Province today. The Telecommunication Regulatory Commission of Sri Lanka has spent Rs.330 million to construct the 174 metre high multi-purpose transmission tower. Sri Lanka Telecommunication Regulatory Commission’s Director General Anusha Pelpita said the tower will provide the Northern people better access to radio, TV and Internet facilities after 30 years. The project was jointly launched by the Sri Lanka Telecommunication Regulatory Commission and the Media Ministry under the instructions of President Mahinda Rajapaksa and full supervision of Economic Development Minister Basil Rajapaksa. The tower will also be used to introduce digital radio and television transmission using the Digital Video Broadcasting’s DVB-T2 digital terrestrial broadcasting standard through the Kokavil tower for the entire Northern Province. This will help to provide high quality and clear television, radio and telecommunication coverage to the entire Northern Province. He said the tower is to be utilized for TV, radio and telecommunication transmissions as well as military communication operations. Sri Lanka Army gave tremendous support to make the project a success. The Sri Lanka Broadcasting Corporation, Sri Lanka Rupavahini Corporation and the Independent Television Network commenced test transmissions in April. ”The TRC expects to provide space for several private media and telecommunication channels, especially Tamil channel transmission space through this tower,” Pelpita added. He said that the tower which was first constructed in 1982 was destroyed by the LTTE in July 1990. The TV and radio transmissions were interrupted for the entire Northern region once the tower was destroyed. Now the Northern people have an opportunity to watch TV and listen to the radio without transmission interruptions after several decades, he said. Pelpita further said that the foundation stone to construct the Kokavil transmission tower was laid in March, 2009. The construction of the site came to standstill for six-seven months due to floods in the North. The transmission tower was constructed with the consultation of local engineers and using local manpower supervised by the Central Engineering Consultancy Bureau Sri Lanka. ”We now have an opportunity to give a clear picture and provide information to the Northern people regarding the government’s massive development drive and other social and political issues in the country,” he added. The Kokavil Multi Purpose Transmission Tower, which is considered as a cultural bridge linking North and South of Sri Lanka, will be commissioned by President Mahinda Rajapaksa, next Monday. This is the highest transmission tower in Sri Lanka and it has been constructed at a cost of Rs. 450 million. The Kokavil Tower was constructed in 1981 to facilitate the people in the North to view television broadcast clearly. However it was destroyed by the tiger terrorists on 11th July 1990, preventing the people of North to get information about things happening in the rest of the country and to prevent the people of the North becoming aware of the factual situation in the North and the East. The war heroes fought with the terrorists to save the tower at that time, without success. The war hero Lieutenant S U Aladeniya who was martyred in this incident has been rewarded with the Parama Weera Vibhushana Award after liberation of the North from the tiger terrorists. Foundation stone for the construction of this tower was laid in the month of August 2009. The Telecommunication Regulatory Authority provided Rs.300 million for the construction work and the balance Rs. 150 million was jointly provided by the Sri Lanka Rupavahini Corporation, The Sri Lanka Broadcasting Corporation and The Independent Television Net Work. Construction work was carried out under the supervision of the Ministry of Mass Media and Information. The height of the tower is 174 meters.

EXPORTS: Pharmaceutical Industrial Zone in Kurunegala

An exclusive manufacturing zone for pharmaceutical industry investors is to be established in Kurunegala in North Western Province of Sri Lanka. This was stated by the Minister of Industry and Commerce Rishard Bathiudeen speaking to the new Heads of Mission designated to Sri Lanka missions abroad, at the Auditorium of the Ministry yesterday. The Minister said that Sri Lanka is ready for strategic international partnerships with cross border investors to face emerging global market challenges that the cross border investors are not able to overcome alone. Speaking about the potential investment sectors in Sri Lanka, he said “Sri Lanka’s current investment opportunities are led by the massive infrastructure development projects such as highways, ports, airports, real and commercial estate development in tourism sector and also a host of vibrant industrial development prospects. At the same time, the sectors of business process outsourcing, nanotechnology, modern agro-technology, and capacity building on modern skills are also promising new areas

that Sri Lanka is venturing into. In addition to the investment zones managed by the Board of Investment of Sri Lanka, he said the Ministry of Industry and Commerce has also developed 12 Industrial Parks across the country with essential infrastructure. The latest addition mooted is an industrial park for Mannar District, and is also contemplating on the establishment of an exclusive manufacturing zone in Kurunegala for pharmaceutical industry. The Minister emphasized that the new Heads of Mission should safeguard and promote the motherland in foreign lands where no one else is duty bound to do so. Director General of Commerce, Gomi Senadhira, Deputy Director of Commerce, Bandula Somasiri. Acting Secretary, Ministry of Industry and Commerce Ms W.M.K.R Balachandra, Additional Secretary, Ministry of Industry and Commerce Hasitha Seneviratne and Director General of Export Development Board Mrs. Sujatha Weerakoon also participated in this function.

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CCCOOOLLLOOOMMMBBBOOO SSSTTTOOOCCCKKK EEEXXXCCCHHHAAANNNGGGEEE (((CCCSSSEEE))) ––– IIINNNVVVEEESSSTTT IIINNN TTTHHHEEE SSSTTTOOOCCCKKK MMMAAARRRKKKEEETTT

If an investor wishes to buy or sell shares through the Stock Exchange, the first thing that he/she should do is to open a Securities Account in the Central Depository System.

Central Depository System - The Central Depository System (Pvt) Ltd. (CDS) is a depository for all securities traded on the Colombo Stock Exchange (CSE). It also handles the post trade clearing and settlement of the secondary market transactions on the CSE. The CDS was incorporated in 1991 and it is a fully owned subsidiary of the CSE. The CDS is registered as a Clearing House by the Securities and Exchange Commission of Sri Lanka (SEC). This registration is renewed annually. The CDS functions as a depository to hold securities in trust on behalf of shareholders of companies and provides depository, clearing and settlement services for equities (shares, preference shares, warrants) and fixed income securities (Corporate and Government Debt) . Securities are held by the CDS in a dematerialized (electronic) form. The Securities

and Exchange Commission of Sri Lanka has made it mandatory to convert any physically held share certificates to electronic form by 31 December 2011. The CDS opens and maintains CDS accounts on behalf of account holders through 43 participant organizations of the CDS. The CDS has granted participant status to 27 Stock Brokers of the CSE and 16 Commercial Banks (Custodian Banks). The participant organizations have access to all CDS services. Account holders are required to use the services of participants to access the CDS services and it is possible to use more than one participant

Opening and maintenance CDS Accounts If an investor wishes to buy or sell shares through the Colombo Stock Exchange he/she should open a Securities Account in the CDS through a Participant organization (a stockbroker or a custodian bank). The applicant has to submit the duly completed Client Account Opening Forms together with the relevant supporting documents to the Participant. After scrutinizing the account opening documents inclusive of the supporting documents the CDS will register the applicant in the CDS system. Once the registration process is completed the CDS system will generate an acknowledgement slip with the Client Account Number and this acknowledgment would be handed over to the Participant confirming the CDS account opening. Client account number will be the national Identity card number/ passport number of the client along with the broker code.

Registration of ownership Registration of ownership in the CDS is automatic on conclusion of a transaction of shares in a company listed on the CSE. The quantity of shares purchased is instantly credited to the CDS account of the purchaser. The Companies Act has provided for the person who purchases shares in a listed company to be deemed a shareholder in that company.

Documents required to open CDS account - Residents with normal identification

1. A clear photo copy of the National Identity Card (NIC).

If the NIC is not available a copy of a valid Passport as at the date of the Account being opened at the CDS. An account holder can open CDS accounts with more than one participant In the event an existing CDS account holder registered under a NIC has lost/misplaced the NIC and is unable to submit a copy through the new participant, the CDS will accept a copy of a valid passport which bears the NIC number. This should be submitted together with a sworn affidavit stating the fact that the NIC is not available. In the event, both the NIC and Passport are not available; a copy of the Driving License should be submitted, together with an Affidavit confirming the fact that both NIC and Passport are not available.

2. Proof of residency document such as an electricity bill, telephone bill etc

Non-resident Sri Lankans In the event a resident Sri Lankan becomes a non resident that person would have to open a new (Foreign) account. In such an instance the following documents relating to opening a foreign Client account needs to be submitted. A copy of the Sri Lankan valid Passport. Proof of residency document as per the Rules issued by the Financial Intelligence Unit of Sri Lanka SIA (Securities Investment Account) account details with documentary proof. Apart from this there are some other CDS forms that the investor has to fill. The CDS offers the facility of changing client account information.

CDS statements CDS will forward to the account holder a statement if such account was active during a particular month (monthly statement) and will forward to the account holder a quarterly statement if such account was active during the preceding three months (quarterly statement). An active account is an account with at least one transaction (purchase/sale/deposit/withdrawal/transfer) during the period/s referred to above. CDS will forward a statement annually as at 31st March to inactive account holders (accounts with no transactions for a period of 12 months) having credit balances. Where an account holder wishes to change any particulars in the account, the account holder shall submit a letter indicating the desired changes together with any supporting document (relevant to the particular change) to the participant. The Participant shall verify the accuracy of information provided by the client and authenticate the signature before submitting the documents to the CDS. The CDS shall effect changes after verifying the documents submitted.

Locked account The CDS also provides a service whereby shareholders of securities who do not wish to trade their securities, to "lock" their securities in a separate locked balance in their own CDS accounts. Once securities are "locked" in this manner such securities would not be visible to the CDS Participants (Stock Brokers and Custodian banks) thereby maintaining the confidentiality of the information and also safeguarding the account holder/shareholder from any possible unauthorized transaction by a Stock Broker. Trading on locked balances would be suspended. Securities could be unlocked from a locked balance and transferred to the trading balance of the CDS account holder only with the written authority given by the CDS account holder to the CDS through the relevant Participant.(Stock Broker and Custodian bank)

Dematerialization Service (Deposit of securities) Dematerialization is the process by which the physical certificates of a shareholder of a listed company are converted to an electronic form. A shareholder could only sell securities that are held electronically through a securities account in the CDS. The process of dematerialization requires the CDS account holder to submit the physical certificate and duly signed transfer form to CDS through the relevant CDS participant. The CDS will deposit the quantity of securities to the relevant securities account the same day.

Dematerialization Service (Withdrawal of securities)

Dematerialization is the process by which the electronic securities balances of a shareholder of a listed company get converted back to certificate form. A CDS account holder could obtain a securities certificate for purposes of pledging. The Account holder is required forward the relevant duly signed transfer form to CDS through the relevant CDS Participant. The CDS will withdraw the shares from the relevant securities client account and forward the relevant documents to the respective company secretary. The company secretary is required to submit the relevant securities certificate to CDS before expiry of seven (07) market days of lodging a valid transfer with them. The CDS Participant is then required to collect the securities certificate from CDS and forward the certificate to the account holder.

Transfer service

A CDS account holder has the facility of transferring the securities between securities accounts opened through different CDS Participants. Gifts are possible between immediate family members and have to be approved by the Securities and Exchange Commission of Sri Lanka. Such transfers attract a stamp duty. A CDS account holder who wishes to transfer securities must forward the relevant transfer documents through the relevant CDS Participant.

Corporate Action Service The CDS facilitates the distribution of corporate actions by providing the entitlement schedules to the Company Secretary or Registrar enabling the Company Secretary or Registrar to identify the shareholders who are entitled to the corporate action. Distribution of dividends is handled by the Company Secretary or Registrar. In the case of Stock Splits or Rights issues, the new shares will be directly uploaded to the respective account holders’ securities accounts in the CDS.

Transmissions The transmission of shares to the heirs of a deceased shareholder is done by forwarding the necessary documents such as the probate or letters of administration to the CDS through the CDS Participant and registering the same with the relevant company secretary. Stamp Duty is payable to the Department of Inland Revenue for such transmission of shares.

Nominations A facility is available whereby account holders could nominate another person/s to receive shares in the event of a death of the account holder. This has been provided for by law through an amendment to the civil procedure code. The transmission of securities where a nomination has been made eliminates the need for legal documentation such as a probate or letters of administration and expedites the process of transfer of shares to the named beneficiaries.

Settlement Equities are settled on a trade by trade basis followed by funds settlement 3 days later (T+3). Stock is transferred on trade date and cash transfers are on T+3. Settlement cycles are flexible for Government securities and Corporate debt securities at the discretion of the parties entering into the trade. Cash settlement is through one of the four commercial banks appointed by the CDS to act as settlement banks.

Instructions to CDS All Instructions to the CDS have to be forwarded to the CDS through the relevant participant. All instructions to the CDS should be in the relevant CDS form except in the case of address changes where a letter signed by the account holder should be furnished with a proof of residency document.

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Access Engineering creates corporate history Access Engineering Limited (AEL), the holding company of Sumal Perera (in photo) controlled Access group included a new chapter to the Sri Lankan corporate history by gifting Rs.3 billion worth of shares to its employees free of charge. The 120 million shares (15 percent of out of entire 800 million shares) which were priced at Rs.25 each were earlier held by the three directors of the company i.e. Sumal Perera, Chairman/Managing Director, Christopher Joshua, Joint Managing Director and Ranjan Gomez, Director. AEL is planning to come to the Colombo Stock Exchange in the latter part of this year or the early part of 2012. The company successfully concluded an Rs.4.5 billion private placement by offering Rs.180 million shares to corporates and high net worth investors recently, each at Rs.25. "Even though this is called a gift of shares, in another sense this is not a gift. This is the way we say thank you to those who worked hard to bring AEL to the place it is today. And also this is an incentive for those who are already working hard for the company to commit to their work even harder" an emotional Sumal Perera told his employees. He also said that this is the first time a company has gifted its shares to its employees at zero cost in Sri Lanka. Perera further ensured that the distribution of shares will be done in an equal manner based nothing but on merits of a given employee. The company is also expected to appoint three new directors to its board in preparation for the upcoming Initial Public Offering (IPO). The new directors would be Professor Malik Ranasinghe of University of Colombo, well known corporate personnel Alex Lovell and Chartered Accountant Niroshan Guneratne. The event was attended by the over 1000 employees of the AEL at a significant ceremony held at the Waters Edge on the 15th of June, 2011 (Wednesday).

From humble beginnings to the best in business Entrepreneurs share experience by recounting ‘Own Success Stories’ At the Association of Accounting Technicians of Sri Lanka (AAT) Annual Conference, the highlight was the panel discussion on ‘Own Success Stories,’ where leading entrepreneurs shared their humble beginnings to become the best today. Chairman of LAUGFS said that coming from the rural school of Pinnawela Central from a heritage of a farmer family, today he owns a multinational company with an annual turnover in excess of Rs. 15 billion with subsidiaries in Singapore and Australia.

He went on to share his vision: that every shopper at LAUGFS Supermarket will shortly own a share of the company when the IPO is launched and he will acquire the stake that Shell owns in the LPG business of Sri Lanka. Some of the accolades won include the most respected business (Nation Mindedness) 1st position in 2009 and the National Business Excellence Award 2009 – Winner (Diversified Group) and Entrepreneur of the Year, to just to name a few. To the pointer by Session Chairman Rohantha Athukorala on whether Sri Lanka should sign the CEPA, Wegapitya strongly objected saying it would be detrimental to the country and should in fact never be signed. This year’s nominee for the world famous World Business Woman of the Year Award, who owns the iconic lifestyle store brand in Sri Lanka, Odel, Otara Gunewardene shared her success story on how she started selling clothes from the boot of a car with a startup capital of just Rs. 5,000 and today it is the most sought after high end retail store that is in key towns across the country and the first department store to go public. She recalled the day her father registered a company and asked her to make something of her life. Today Odel is ‘a must visit’ for any visitor who comes to Sri Lanka. She also owns an haute couture fitness centre branded Otone, a top end clothing line for fitness, and the first celebrity jewellery line ‘Otara’. To the pointer by Athukorala on the challenges of doing retail business in Sri Lanka, Gunewardena commented that cost of imported shoes was very high due to the very heavy duty structures in place and she hoped the November Budget would address this. The soft-spoken Chairman/Managing Director, Nippolac Group of Companies Raja Hewabowila hailing from Rahula College explained how he started his business by selling paint manufactured in his home in just one outlet in Matara. Today it one of the most diversified companies, winning a multitude of awards such as Entrepreneur of the Year, Industrial Excellence Award and many citations from Presidents and Prime Ministers of Sri Lanka. Asked why Nippolac is not in Jaffna, Hewabowila’s response was that the current skills set of the people in Jaffna was not adequate and not up to the expected level for him to expand the business into the north.

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Rohantha Athukorala picked to represent Sri Lanka at Harvard University At the annual Harvard University ‘Leaders in Development’ executive forum, the top 50 young leaders of the world met up to understand ‘How to Manage Change’ in the dynamic world. A place that selects the talent to the work Harvard Business School has picked Sri Lankan business professional and respected thought leader Rohantha N.A. Athukorala for their spring senior management executive education programme on ‘Leadership in a Global Political Economy’ scheduled for June 2011 at the Harvard campus in Boston, USA. Athukorala, who started his career as a sales representative selling soaps, washing powders and mosquito coils for multinationals Unilever and Reckitt Benckiser, went on to become an award winning marketer not only in Sri Lanka but also in the South Asian Region and was subsequently headhunted by American industrial detergent giant JohnsonDiversey, where he secured a global leadership award for outstanding business achievement. Thereafter moving to a national role Athukorala gave leadership to the Sri Lanka Export Development Board and the pivotal policymaking body of the Government of Sri Lanka, the National Council For Economic Development when the country crossed the Rs. 6,000 billion export mark and 7.4% GDP growth. Subsequently he was appointed to the key role at the Director Economic Affairs of the Government Peace Secretariat during the final

phase of the war on terror where he was instrumental in developing private sector business in the war-torn Jaffna peninsula. Athukorala now serves the global community, United Nations as the Head National Portfolio Development of the United Nations Office for Project Services (UNOPS) for Sri Lanka and Maldives whilst also serving the mother land as the Chairman of the Tea Cluster Ministry of Industries, Board Director Sri Lanka Export Development Board, Industrial Development Board of Ceylon and Marketing Committee of the Sri Lanka Tea Board. Given his passion for serving the Small and Medium Enterprises in rural Sri Lanka, Athukorala is on the National Task Force of the Venture Capital formation for SMEs, Association of Chambers, Sri Lanka Designer Festival. In the thrust of developing the tourism industry of Sri Lanka in the private sector he serves the leisure sector of the Serendib Board on the area of brand marketing.

Rajendra Theagarajah joins WUSC Board Hatton National Bank Managing Director and CEO Rajendra Theagarajah in Sri Lanka has

joined the Board of Directors of the World University Service of Canada (WUSC). The decision was made at the 11 June Ottawa Board of Directors meeting and approved by Maureen O’Neil, the Chair of WUSC. Theagarajah is the only Asian member of the WUSC Board of Directors. He will provide a much appreciated private sector voice to the Board’s deliberations. WUSC is one of Canada’s oldest development organizations and has been active on Canadian university and college campuses to engage young people in issues affecting the world around them. Sri Lanka is one of 22 countries in which WUSC works and has one of the longest established country programmes addressing both training for youth employment and tea plantation socio economic development as well as work on gender. Hatton National Bank is one of Sri Lanka’s top commercial banks and was in fact recognized as the Best Retail Bank in Sri Lanka in 2010 by the Asian Banker and also as the Best Bank in Sri Lanka by the Euro Money Magazine. HNB played a leading organizing and hosting role at the Asia Microfinance Forum held in Colombo October 2010 and is known for its successful microfinance programming. A past Chairman of the Sri Lanka Banks’ Association, Theagarajah was recently elected as the Chairman of the Asian Bankers Association (2011-2012). He is committed to development activities in Sri Lanka at a corporate and personal level. This includes addressing housing issues on tea plantation estates using innovative, environmentally friendly, social impact bonds. Educated in the UK, he worked for years with the US based Chase Manhattan Bank.

Krishan Balendra elected chairman, Colombo Stock exchange (CSE).

Krishan Balendra is a director of John Keells Stockbrokers (Pvt) Ltd, head of Corporate Finance / Executive Vice President of John Keells Holdings PLC and a director of Union Assurance and Nations Trust Bank. He started his professional career at UBS Warburg, Hong Kong, in investment banking, focusing primarily on equity capital markets. After a four year stint in Hong Kong, he continued his career in corporate finance at Aitken Spence & Co. Ltd., prior to joining John Keells Holdings PLC. He holds a Law Degree (LLB) from the University of London and a Masters Degree in Business Administration from INSEAD. He is a member of the Board of Directors of the Colombo Stock Exchange since March 07, 2008.

Krishan Balendra succeeds Nihal Fonseka from DFCC, who will continue as a director. He is a son of veteran corporate leader and Former Colombo Stock exchange chairman Kandiah (Ken) Balendra. He was elected chairman at an annual general meeting held on Tuesday June 14 in Colombo.

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PPPAAASSSIIIKKKUUUDDDAAAHHH’’’SSS MMMAAALLLUUU MMMAAALLLUUU RRREEESSSOOORRRTTT..........Tranquility at its best! The Tourist Hotel Malu Malu Resort and Spa in Pasikudah was declared open by the Economic Development Minister Basil Rajapaksa recently. The resort is the first star class hotel to be constructed on the bay of Pasikudah, since regaining peace in the country. The resort was built at a cost of Rs. three billion. The Malu Malu Resort consists of 40 chalets designed with a typical Sri Lankan touch. All chalets and public areas are designed in a tropical backdrop to blend with the natural environment, amidst the elegance and luxury of the resort. Pasikudah is a coastal resort town located about 35 kilometers northwest of Batticaloa, Batticaloa District, Sri Lanka. It used to be a popular tourist destination, however due to 2004 Indian Ocean Tsunami and Sri Lankan Civil War tourist numbers have declined. Pasikudah and Kalkudah are located few km apart. Soon after the end of the civil war in 2009 and the completion of Tsunami rehabilitation projects, Pasikudah has become a popular tourist destination amongst locals and foreigners alike. This is because Pasikudah is known to have one of the longest

stretches of shallow coastline in the world. In other words, people walk kilometers into the sea because the water is only a few inches deep and the current is relatively weak compared to the rest of Sri Lanka's coasts. Pasikudah is easily accessible from Trincomalee and Batticaloa, both of which cities have star class accommodation. Pasikudah is fast becoming a ‘hot spot’ as foreign and local investors have shown interest in developing tourism along the beach. The Sri Lankan government's strict environmental policies have prevented certain plans for mass development, however at the same time the government's strong economic policies have promoted development to a certain extent. The nearby Nilaweli beach offers guests the surfing and scuba diving opportunities.

The Maalu Maalu Resort & Spa is the first hotel project completed in the East under the Nagenahira Novodaya Programme. The Investment for the Maalu Maalu Resort & Spa is 3.5 million US$. Maalu Maalu Resort & Spa has been designed inspiring Sri Lankan Authentic Traditional and eco friendly architectural style. Minister Rajapaksa launched a program to develop attractive places in the country as tourism zones. Under this programme Pasikudah area in Trincomalee is to be developed as a tourism zone and Government allocated a land to the extent of 100 acres for this purpose. Nearly 1000 rooms will be constructed in Pasikudah tourist zone and estimated total privet investments for construction hotels are Rs. 5483 million. Government has allocated 800 million to develop the infrastructure facilities. A branch of Sri Lanka Tourism Promotion Bureau will also be set up in the area. The charms of Batticaloa such as the heavenly beaches of Pasikudah and Kalkudah have rarely been molested. Pasikudah is a bay protected from the ocean. The significance of Pasikudah is that its bed is flat and sandy and has a pleasant effect on the feet. This can be experienced up to nearly 150 to 200 meters from the shore. The seabed is short on rock deposits; however it consists of sea cucumbers, which resemble a baby pool. If one has to

get his chest or neck wet, he or she might have to walk for more than 100 metres outward. Pasikudah is an ideal location for those who wish to learn swimming. Pasikudah Bay contains a shallow fringing coral reef towards the outer bay with scattered coral communities within the bay, and is connected to similar reef systems further south towards Kalkudah. It is one of the best-known reef systems in the east and has been proposed as a Marine Sanctuary by NARA. Pasikudah is very popular among visitors due to the calm clear waters which are ideal for swimming but is currently only rarely visited due to the volatile security situation in the area. Coral mining is a major threat to the reef and has degraded large areas of reef around Kalkudah. The reef is characterized by a shallow reef crest, inner reef lagoon and a steep outer reef slope. The inner reef lagoon has a depth of 0.5-2m while the outer reef slope extends seaward to a depth of around 8m. Coral growth is most extensive towards the north-western and south-eastern ends of the bay towards Natchivantivu and Kalkudah respectively. Branching, tabulate, massive and encrusting coral forms are common, with the healthiest corals being found along the outer reef slope. Numerous micro atolls made up of massive corals are found within the shallow sections of the reef lagoon. Pasikudah is located in the dry zone with an annual rainfall ranging between 1000 –1100 mm and average temperatures between 30.40C – 33.60C. The reef undergoes periods of high turbidity when southward moving near-shore currents bring freshwater from Valaichchenai lagoon located immediately north of the bay are extensive coral stands within the reef lagoon although most corals are dead, possibly due to coral bleaching.

CCiinnnnaammoonn LLaakkeessiiddee iiss BBeesstt ffiivvee--ssttaarr hhootteell -- SSLL TToouurriissmm AAwwaarrddss 22001100

Neroy Marso, Cinnamon Lakeside General Manager receives award for Best Five Star City Hotel at Sri Lanka Tourism Awards 2010. Cinnamon Lakeside Colombo grabs the coveted Best Five Star City Hotel Award at the Sri Lanka Tourism Awards 2010. Tourist hotels were evaluated on their contribution to the tourism industry in Sri Lanka, effectiveness of business strategies, product quality, professional development of staff, sustainability, innovation and financial viability amongst other criteria. The independent panel of judges consisted of Mr. Ranjith Perera, Mr. Tharanga Gunasekara, Mr. Dusty Alahakoon, Dr. A. C. D. Silva and Mr. M. Lantra, whilst the jury consisted of Mr. H. M. S. Samaranayake, Professor Uditha Liyanage and Mr. Joseph Manoharan Handy. The judging process included an inspection of the hotels by a separate panel. The chief guest at the glitzy event was Hon. Lakshman Yapa Abeywardena, Deputy Minister for Economic Development. Heritance Ahungalle won the Best Five Star Resort award whilst Best Four Star Resort was Heritance Tea Factory Nuwara Eliya. The Best Three Star Hotel award went to Palm Garden Village Hotel Anuradhapura. Galle Face Hotel won the iconic Heritage Hotel award

and Serene Pavilions won Boutique Hotel of the Year. Best Host Hotel Spa was won by Cinnamon Lakeside Azmaara Spa and Best Host Hotel Culture was won by the Cinnamon Grand’s unique ‘village-in-the-city’ Nugagama. Over 40 awards under various categories were presented at the packed and glittering ceremony at which Deputy Minister of Economic Development Lakshman Yapa Abeywardhana was the Chief Guest whilst Sri Lanka Tourism Chairman Dr. Nalaka Godahewa was also present. The judging process included an inspection of the hotels by a separate panel. Tourist hotels were evaluated on their contribution to the tourism industry in Sri Lanka, effectiveness of business strategies, product quality, staff development, sustainability, innovation and financial viability amongst other criteria. At the Sri Lanka Tourism Awards in Colombo, awards were also presented to three veterans or legends in the sector - Nihal Perera, S.D. Saparamadu and Ken Balendra. Mr Balendra, former chairman of John Keells Holdings who steered the company towards becoming a major player in the hotel sector, was recognized as a ‘legend’ while pioneer hotelier S.D. Saparamadu and veteran travel trade personality Nihal Perera received awards as ‘tourism legends’.

Pasikudah Beach

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Tourist hotels and resorts allowed on wildlife sanctuary buffer zones Buffer zones around wildlife parks – once no-go zones to the farming and construction industries – will be opened to the tourism industry. According to Minister of Tourism, Lakshman Yapa Abeywardena, these buffer zones will be available for tourist resorts and hotels. Following discussions with the Minister of Economic Development, Basil Rajapaksa, and the government will issue a gazette on June 24 that will allow development programmes, including the building of tourist resorts and hotels, on the borders of wildlife sanctuaries. “Buffer zones are about one kilometre wide,” the Minister of Tourism told the Sunday Times. “We hope to turn these zones into tourist attractions. Seven plots of five acres each have already been marked out for development in the Yala buffer zone. Only environment friendly hotels and resorts will be permitted.” Dr. Chandrawansa Pathiraja, Director General of the Wildlife Department, said buffer zones were in place for the protection of wildlife parks, but environment-friendly development need not affect wild animals, fauna and flora. “Such development will be built well away from elephant paths and spots where animals are known to gather,” he said. “And there will be waste management systems, so there won’t be any environment pollution.”

Six Senses opens in Sri Lanka

Six Senses Resorts & Spas is to open Six Senses Before Galle and Six Senses Meeraladuaa in Sri Lanka which is to be built in partnership with Aitken Spence Hotels. Six Senses Before Galle will be a resort of 54 villas, designed and built following Six Senses signature of luxury married to sustainability. Six Senses Meeraladuaa, positioned on an island nearby, will be an environmentally low impact site of semi tented structures. Both resorts will open in late 2012. Six Senses Before Galle resort will have 54 villas; 24 one bedroom villas, 8 one bedroom duplex villas and 8 two bedroom duplex villas. There will also be 14 residential villas, available for sale. The design of the resort has been inspired by the work of renowned Sri Lankan architect, Geoffrey Bawa, who established tropical modernism. The 14 private residences will be built along the beach. Each will be airy and spacious, with two large bedrooms, a large area for living and relaxing, as well as a dining room and full kitchen facilities. There will be a study too, which can easily be converted into a third bedroom. Each private residence will have its own beach front infinity pool.

In fact all the villas in the resort will be airy and spacious and will have their own pool, together with an outdoor terrace and pond. The sense of arrival at Six Senses Beyond Galle will be very special. Guests will arrive through a tall, fort-like gateway, into an enclosed courtyard. The main restaurant will be surrounded by satellite areas to eat and drink, including a wine cellar and a patisserie counter. Close by will is the library, Six Senses Gallery, jewellery shop and meeting room. The design of the main bar reflects an early 20th century ambience, serving champagne by the glass and freshly shucked oysters. In addition there will be two club houses, mirroring their services of a bar, wine cellar, movie room and gym - the two clubs, creating a smaller, more intimate ambience for guests to enjoy. Both will have elegant restaurants, with a refined fine-dining menu and classical, informed service. The Six Senses Spa at Before Galle will have 12 treatment rooms, including 2 herbal Hammam rooms and a cave treatment room. The extensive gym will be equipped with Kinesis equipment, as well as a spacious yoga deck. Following the opening of its first property, Soneva Fushi by Six Senses, in 1995, Six Senses has been recognized as the global benchmark for eco-responsibility in the hospitality sector. Its philosophy is developed around the core purpose of creating innovative and enlightening experiences that rejuvenate their guests’ love of SLOW LIFE: Sustainable, Local, Organic, Wholesome - Learning, Six Senses currently operates fourteen high-end resorts branded as Soneva, Six Senses and Evason in the Maldives, Thailand, Vietnam, Oman and Jordan. There are also several new developments underway in locations such as Morocco, Turks and Caicos and China. The Six Senses Spa division has twenty-seven company-operated spas, with new spa developments underway in several locations, including India, Morocco and, Oman. The group recently launched the Six Senses Sanctuary brand, of destination spas.

GGrraanndd OOrriieennttaall HHootteell ooffffeerrss ffaammiillyy tthheemmee nniigghhttss As Colombo reaps the rich dividends of peace, the Grand Oriental Hotel (GOH) hopes to see the entire family entertained at its unique theme styled nights GOH Chairman Rohan Jayasinghe says. At the Harbour Room, with its unique wide angled view of the harbour below, a sumptuous spread awaits with International Buffet for lunch from Monday to Friday and on Saturdays and Sundays, an A'la carte lunch is available. The Harbour Room is the place to be during the weekend for the family. Thursday is the Sri Lankan Night with all time Sri Lankan favourites such as hoppers and pittu hot and spicy cooked just like home. Executive Chef Ruwan Vithana invites the whole family for a traditional dinner and oriental music to keep the entire family serenaded especially when you don't have the time to turn them out at home. On Fridays and Saturdays, as the sun sets over the Harbour Room, the International Buffet

with a fine array of dishes awaits the family, PR Executive Ishanki Gunawardene says. With Gamani Mendis on the electric organ, the buffet offers the best value for money, making it just the place to be during the weekend, adds Jayasinghe who together with the GOH Board of Directors and the staff has introduced a new and dynamic dimension to the hotel. On Sundays, the Harbour Room comes alive with the Mixed Grill Night featuring a mix of the best for the family while Sam the Man provides excellent entertainment. For the busy executives on the go from the GOH neighbourhood, the Sri Lankan buffet available makes it one of the best in the area and on Fridays and Saturdays, the Sri Lankan Restaurant hosts a lively Paduru Party with oriental music and spicy Sri Lankan cuisine. A-la-carte menu is available at the Sri Lankan Restaurant on Sunday for lunch and dinner.

BBeerruuwwaallaa GGoollddeenn MMiillee ttoo hhaavvee RRss 33BBnn -- 330000 RRoooomm 44 SSttaarr CChhaaaayyaa BBeeyy HHootteell One of the country’s biggest resort hotel projects kicked off recently along the `Golden Mile’ on the Beruwala coast when Economic Development and Investment Minister Basil Rajapaksa laid the foundation stone for the three billion rupee Chaaya Bey hotel, a 200-room four-star property on 11 acres of beachfront land. President Mahinda Rajapaksa later visited the site and examined plans for the luxury property due to be completed in 20 months as its owners, the John Keells Holdings Group, the country’s biggest conglomerate,

gears to take advantage of the anticipated tourism boom. "We are quite excited by the prospects,’’ JKH Chairman Susantha Ratnayake said. "The tourism industry is buoyant and we want to capitalize on the opportunity and have committed Rs. 6 billion for new projects – building new properties and refurbishing existing ones.’’ Ratnayake said that JKH has both the organizational and financial capability to seize the unprecedented development opportunities that have opened up, particularly in the leisure industry. The new hotel is coming up on what was previously the location of Hotel Bayroo that was flattened by the December 2004 tsunami. JKH acquired the adjoining five acres too to build the new hotel whose Rs. 3 billion price tag includes the cost of land acquisition. Among the new projects in the JKH pipeline is an up market hotel at Pulmoddai in the East where the Yan Oya flows into the sea, refurbishing Habarana Lodge into a five-star and expanding Reefcomber at Hikkaduwa to a new look hotel with 154 rooms against the previous 64. "We are also looking at new developments in the South where there is plenty of scope,’’ Ratnayake said. JKH Deputy Chairman Ajit Gunawardene said that seafront land in the South is hard to find and the `Golden Mile’ was the most sought location. "Bey with 200 rooms and an array of restaurants will be a benchmark for quality and class in Sri Lanka’s tourism industry,’’ he promised. "It will play a significant part in bridging the deficit (of quality accommodation) on the Southern coast.’’

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Port city of Trincomalee to be developed The government will soon appoint a negotiating committee and a project committee with the intension of calling for investment proposals as an initial step to develop a port city in the vicinity of the famous natural harbour of Trincomalee, located in the East coast of Sri Lanka. Under the ‘Trincomalee Port City Development Project’ a Cabinet Appointed Negotiating Committee (CANC) and a Project Committee (PC) would be set up soon to evaluate port related business ventures for which proposals would be called for. The Sri Lanka Ports Authority (SLPA) owns a land area of 2,000 hectares in the vicinity of the port of Trincomalee and the Cabinet has decided to request for proposals from interested parties to commence port related business ventures with high potential to contribute to the Sri Lanka economy, the government said.

Overpricing of hotel rooms is a dangerous sign

Economic Development Deputy Minister Lakshman Yapa Abeywardena says that the government has to take stock of the current “dangerous” situation where hoteliers have taken to overpricing the product. In this respect, he pointed out to the Business Times that while overpricing could be to some extent controlled within the five star hotels, it would not be possible if boutique hotels also increased their price. “That is dangerous. We should think about it,” he said adding that it is not only about the money but “we have to achieve the target (annual arrivals).” Boutique hotels based on the concept of providing an exclusive range of additional facilities in a very private setting have no pricing restrictions unlike 5 - star hotels. The minister highlighted that he had come face to face with this situation when vacationing at a particular hotel that increased its prices from the previous year’s US$540 to US$800. The main objective would be to “not only get large numbers but offer them superior service and experience not matched by any,” he said. The minister pointed out that in Malaysia and Thailand room rates were lowest but in Sri Lanka since January and February “our hoteliers increased prices too much.” In this respect, the government has met with the Tourist Hotels Association of Sri Lanka (THASL) and requested them not to increase the price. The government increased its minimum room rate for this year to US$125 for 5 -star hotels. Meanwhile the government is gearing up to implement a host of new regulations within three months impacting on all stakeholders in the industry. This

is expected to create a number of key developments for the tourism industry going forward from simplifying the tax process to addressing environmental problems and new areas for hotel development to whale watching. Sri Lanka Promotion Authority Chairman Dr. Nalaka Godahewa told the Business Times said that these regulations will be brought in “due to the influx of tourists.” Minister Abeywardena explained that under the new regulations one of the main issues addressed will be the availability of lands from the current buffer zone of the wildlife parks that will be open for new investments. He pointed out that these buffer zones will provide space for investors to construct new hotels under the wildlife guidelines with proper approvals. It was observed that currently there are investors interested in setting up projects in these lands as they are in close proximity to the wildlife parks and will be a key attraction to tourists. Lands will provide space for the construction of about 25-30 hotels, the minister said.

Sri Lanka tourist arrivals up 39-pct in May June 10, 2011 (LBO) - Tourist arrivals to Sri Lanka rose 39 percent to 48,943 in May 2011 from a year earlier, led by increases in visitors from India and East Asia, data from the tourist promotion office showed. Last year arrivals rose 46 percent after a 30-year war ended. In the five months to May arrivals are so far up 40.2 percent to 327,902 from a year earlier. In May visitors from India rose 55 percent to 16,649 driving arrivals from South Asia up 53 percent to 21,016. East Asian visitors rose 66 percent 6,605, with across the board increases in most countries. Chinese visitors rose 100 percent to 1,337, while those from Japan rose 43 percent to 1,054, Malaysia was up 57 percent to 1,194 and Thailand was up 179 percent to 785. Arrivals from Western Europe rose 17.4 percent to 12,419 with French visitors rising 81 percent to 2,758. Visitors from Britain fell 0.4 percent to 4,452 while German arrivals rose a modest 3.2 percent to 2,137. Sri Lanka's resort tourism industry is now facing the so-called 'off-season' for European visitors who peak during the northern hemisphere winter. The island's main beach resorts in the Western and Southern areas also face wet weather during the time. However the island is now developing its East Coast for tourism after the end of a 30-year war which provides sunny weather at this time of the year. Heavy demand has also pushed up room rates in Sri Lanka above comparable East Asian competitors.

Heritance gets awarded for its hospitality Heritance Hotels recently clinched some of the biggest awards at the Sri Lanka Tourism Awards 2010 reigning supreme as a chain of hotels with a heritage and an inheritance. Heritance Ahungalla was awarded the Best 5 star Resort in the island while the Heritance Kandalama entered the Hall of Fame. The Heritance Tea Factory bagged the Best 4-Star Resort category for a second year, while Heritance Kandalama was awarded as the Best host hotel for Eco Tourism. Managing Director Aitken Spence Hotels Malin Hapugoda told the Business Times that these awards are an indication of the fact that they are the best resort hotel in the island. He said the property of the hotels shows the architecture of the area as well while giving its customers a typical Sri Lankan expeience.The Heritance brand recognizes the individuality of each property and with the locality in mind, the hotel in that particular area will speak for the uniqueness that is central to where it is situated. The first hotel to be branded as a Heritance hotel is the former Triton Hotel that is now known as Heritance Ahungalla. Designed by the renowned Geoffrey Bawa, it is a five star beach hotel, which still brings out memories of its original rustic elegance while keeping in line with the required standards of modern hospitality. Heritance Kandalama became the second to be re-branded that was built overlooking the 8th wonder of the world the famous Sigiriya Rock Fortress. The third hotel to be re-branded was The Tea Factory in Nuwara Eliya that is today a 57-room hotel unique in its tea factory based theme. It has been artfully converted from an abandoned tea factory with its interiors giving a visitor a memorable experience. The latest is the Heritance Maha Gedara in the South providing a luxurious accommodation and Ayurveda treatment facilities that opens this month. With 64 luxurious rooms the Ayurveda Treatment Centre is involved in providing an extensive treatment and holistic health facilities to help relax, restore and rejuvenate. Pampering is uniqueness at the resort where a range of treatments are given with custom oriented services offered with the intention of healing the mind and body with Yogic and meditation therapies. “The awards the Heritance chain of hotels clinched recently clearly indicate the fact that it is simply the best resort hotel in the island,” a company statement said.

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63,835

35213

48,94344730

6333955898

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TOURIST ARRIVALS IN SRI LANKA - COMPARATIVE ANALYSIS 2010 & 2011

January February March April May June July August September October November December

T r a v e l T a l k

Chart format, layout & design: Upali Obeyesekere – Editor, TradeWinds e-Magazine

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Indians top tourist arrivals in Sri Lanka - Indians are at the top of tourist arrivals to Sri Lanka, official figures show. Figures released by Sri Lanka's Tourism Authority showed that 68,830 Indians visited Sri Lanka between January and May this year, up 54.5 per cent over the same period last year, Xinhua reports. British tourists came second with their number growing 7.1 per cent to 41,474 in the first five months of this year. The number of Pakistani tourists jumped an astounding 98.1 per cent to 6,027. It has been attributed mostly to Pakistani nationals visiting to watch cricket matches in the island nation. Sri Lanka has seen an upsurge in tourist arrivals since the end to the armed conflict with the Tamil Tiger rebels. Around 650,000 tourists arrived in the island country last year, and the figure is expected to increase by 100,000 this year.

OOmmaannii ttyyccoooonn iinnvveessttss iinn KKuucchhcchhaavveellii rreessoorrtt

A leading business luminary in the Sultanate of Oman Dr P Mohamed Ali (inset) has invested over US$ 60 million in the Kuchchaveli resort development project, the Sri Lanka Tourism Development Authority said. This initial investment was made acquiring a 20 acre land at the beach front of the eastern coast on a 99 year lease incentive offered by the government of Sri Lanka under the foreign direct investment policy for tourism

infrastructure development. The Mfar Hotels Ltd. in Cochin, which is one of Dr. Mohamed Ali’s business ventures for building world standard hotels in India, will take over the construction and planning of the five star hotel resorts in Kuchchaveli with more than US$ 100 million to spare for the total project , expecting to be completed within the next six month’s time. The reputation of Dr. Mohamed Ali and his business ventures dates back to 1970’s where he laid the foundation to Galfar Engineering and construction company which is today the single largest private sector employer in Oman engaged in wide spectrum of infrastructure projects , mainly in the areas of oil and gas, roads and bridges, ports and waste water treatment.

Cinnamon Grand in B2B initiative Cinnamon Grand Colombo successfully completed the third phase of its novel recycling initiative, Banners to Bags (B2b) on Friday the 17th of June. A large number of the hotel’s patrons, in-house guests and associates purchased the colourful bags to do their part for the environment and for the Children’s Ward of the Cancer Hospital, Maharagama. This time around the hotel dedicated an entire shop to the five day sale of these trendy bags, made entirely out of the promotional banners that are displayed at the hotel’s entrance. The hotel reinforced its commitment to reduce, reuse and recycle

through the transformation of these flex banners into useful and durable products, which are generally discarded by most entities, despite the fact that they are not biodegradable and can be a contributory factor to many environmental and health hazards. The B2b initiative is the first of its kind in Asia and was launched by Cinnamon Grand in March 2009 and has been a successful initiative that addresses the hotel’s commitment towards the environment and community. The initiative was endorsed by Professor Mohan Munasinghe, 2007 Nobel Prize for Peace Co-laureate, as it adheres to the requirements of the sustainable development triangle – economic, social and environmental. This year’s sale was even more poignant since the bag design and creation process was entirely undertaken by one of the Cinnamon Grand’s retired tailors, Jayamanne, who had served the hotel for 28 years before retiring on the 31st of May. Public Relations Manager Tharika Goonathilake said that, "B2b is about taking responsibility for the choices we make and doing our part to reduce the impact of our actions on the

environment. We are happy to state that the hotel has taken a conscious decision since B2b’s launch three years ago to drastically reduce the use of these flex banners in our promotional activities." She said that the tremendous support and feedback received from the public as well as the staff, who gave of their time to model some of these bags for this worthy cause, was overwhelming and extremely encouraging. "This gives us further impetus to strive towards creating other recycling initiatives based on the hotel’s product usage and consumption patterns," she said.

JKH opening new hotels, plans for refurbishment John Keells Holdings (JKH), Sri Lanka's biggest hotel operator with properties also in the Maldives, says construction of its 200-room Chaaya Bey resort at Beruwala in southern Sri Lanka will be ready for opening by May 2012. In its annual report for the year ending March 31, 2011 released recently, the company said during the completed year it sold the Cinnamon Island, Alidhoo in the Maldives and acquired (on lease) the Chaaya Island, Dhonveli also in the Maldives. It said the former Coral Gardens, Hikkaduwa - after refurbishment - will be re-launched as Chaaya Tranz in November 2011. The Yala Village, a hotel in a wild life park in the south which was closed in May 2011 for expansion and refurbishment, will be launched as Chaaya Wild in November 2011. The refurbishment of 216 rooms of the 5-star Cinnamon Lakeside in Colombo is expected to be completed by September 2011, the company said. "Given the positive outlook for tourism, we expect to make substantial investments in the leisure industry in Sri Lanka," company chairman Susantha Ratnayake said. With Sri Lanka expecting a surge in tourist arrivals with the end of the conflict (in May 2009), Mr. Ratnayake said their leisure sector is working with its property group in exploring the economic feasibility of creating multi-functional, integrated developments.

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Tourism drives foreign direct investment (FDI)

Government seeks to attract $5 billion in foreign direct investment and boost visitors to 2.5 million

Dubai: Two years after the end of its three-decade civil war, Sri Lanka has been swiftly rebuilding its economy with tourism driving its growth and FDI investments. Between 2005 and 2011, the tourism sector received $1.2 billion in FDI and it aims to attract a further $5 billion by 2016 and boost tourist arrivals to 2.5 million. "The government wants to have more hotels in the east. The area was abandoned for so many years because of the terrorist problem, but it has tremendous potential," said Anura Lokuhetty, president of Tourist Hotels Association of Sri Lanka. To encourage this, the government has extended the limit on land leases for hotels from 33 years to 99. Three hotels "Around 100 acres have been given to 13 investors under 99 year leases so we should have another 100 rooms by the end of next year. We have three hotels already operating along the east coast area," said Chandra Wickeramasinghe, chairman and managing director of Connaissance de Ceylon, a destination management company. Shangri-la recently announced a plan for a 500 room resort hotel in Colombo and China National Aero-Technology Import and Export Corporation is planning

another hotel near the new Shangri-la. Tourism arrivals rose 43.5 per cent in March to 75,130, with increases from South Asia and European markets.

What travelers say about Hilton Colombo Residences “A Great Surprise - Retreat in Colombo” Reviewed June 6, 2011 by elh76, Portland, Oregon, USA

My husband and I stayed at the Hilton Colombo Residences in Colombo in April 2011 for 3 nights. We were in town for a wedding and most of the guests were staying at the Galle Face Hotel nearby but we wanted to use Hotel points for our stay to save on costs. We arrived late at night and were able to arrange taxi service from the airport in advance by emailing the hotel. This was great service and made our arrival in Sri Lanka much more comfortable right from the start. I did not have any expectations of the hotel other than it was a Hilton, so I was pleasantly surprised and pleased with the amount of space we had! The room was more like an apartment than a room, with a full kitchen, two bedrooms, two bathrooms, a full sitting and dining area, and a terrace overlooking part of the city. We had more space than we knew what to do with but it worked perfectly for us! We went to the grocery store across the street to get some food and washing detergent to do laundry. The location was convenient for heading to the grocery store. The tuktuk or taxi ride from the Residence to the Galle Face hotel was about 5 minutes or so, and was a reasonable price. There were always taxis and tuktuks available for hire outside of the hotel.

The breakfast at the hotel was amazing - they had a full buffet and options available to order as well. I particularly liked the traditional Sri Lankan breakfast versus the western breakfast, though all items were available to choose from. Service at the hotel was great - we gave them a 9.5/10 star score upon checkout. We had great service, a huge room with tons of amenities (including internet and cable TV!). We definitely recommend it for future business or leisure travelers in Colombo. Room Tip: Arrange taxi transport before arriving.

‘Potential of Indian tourist arrivals too big to be ignored’ Courtesy: Sunday island June 13, 2011 Dr. Sirimal Abeyratne, Professor of Economics of the University of Colombo, presented his research findings on the issue at the Sanvada Seminar of the Pathfinder Foundation, held at the Sri Lanka Institute of Tourism and Hotel Management on June 9th, 2011. The seminar was completed a timely and well researched analytical study for the Pathfinder Foundation, the economic think-tank on the Indian tourism market. This study includes a detailed analysis of the current status and characteristics of Indian tourist arrivals in Sri Lanka, and identifies a number of benefits from further promotion. The seminar was chaired by Professor Rohan

Samarajiva, Executive Director of Lirneasia, while Anura Lokuhetti, President of the Tourists Hotels Association of Sri Lanka and Hiran Cooray, Chairman of Jetwing made presentations. "India constitutes a big market with a growing middle class who creates an increasing demand for travel and tourism. This provides a major source market for Sri Lanka’s tourism industry, provided that the tourism industry is set to capitalize on the opportunity that it has within close proximity by recognizing the specific features of the Indian tourists," a senior economist said. According to eminent academic Professor Abeyratne, Sri Lanka attracts only about 1% of over 11 million Indian tourists whose attractive tourist destinations are Singapore, China, Thailand, Hong Kong and USA. "These countries attract ‘high income’ and ‘upper-middle income’ tourists, while Sri Lanka caters to the Indian tourists from the ‘lower middle’ income groups. Indian tourists are different from the Western tourists in terms of tourism interests and purposes, seasonal variation of arrivals, tourist nights spending and, tourism expenses. "By identifying the importance of this growing market and its special characteristics, Sri Lanka should create a differentiated tourism product market, adopt simple and clear immigration procedures and, develop regional ‘entry points’ by air and sea in the Northern part of Sri Lanka. In addition, Indian tourism is associated more with business, shopping, and other purposes than with leisure," said Professor Abeyratne, "it is important to create tourism sector that caters divergent tourism interests and strengthen economic integration with India." Anura Lokuhetti, President of the Tourists Hotels Association of Sri Lanka, elaborated the importance of the growing Indian economy and its middle class who creates an ever-increasing demand for travel and tourism. As India is projected to have over 50 million outbound tourist departures by 2016, according to Lokuhetti, given the close proximity Sri Lanka has the potential to become a major tourist destination for Indian tourists. Cooray, Chairman of Jetwing, highlighted the importance of learning how to cater the Indian tourists as the Indian tourists are a highly diverse group which requires designing differentiated tourism products to cater all of them. He also stressed the potentials that Sri Lankan tourism industry possesses to cater the big Indian market, but as at present Sri Lanka caters only to its lower-end tourist market. By wrapping up the Sanvada Seminar, the Chairperson Professor Rohan Samarajiva, Chairman of Lirneasia, pointed out the importance of ‘Patel Points’ in USA, UK and many other countries which provide a memorial attraction to the Indian tourists. In Sri Lanka, there is hardly any ‘Patel Point’ that attracts Indian tourism. "The Sanvada Seminar is aimed at studying the importance of Indian tourist arrivals for the tourism development of Sri Lanka with inputs and comments from the resource persons to feed into a policy debate. The final outcome of the event is to prepare a Policy Brief which will be distributed among the Parliamentarians, policy makers, and other government and non-government agencies in guiding the policy formulation. The Pathfinder Foundation is conducting this seminar in collaboration with the Centre for Indo – Lanka Studies, interested parties on the studies can contact

SHOPPERS AT THE MAJESTIC CITY MALL IN COLOMBO.

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HK villa management co. make inroads in Sri Lanka A Hong Kong based hotel management chain Marketing Villas Ltd has entered into management agreements with three villas, situated in the southern coastal belt of Sri Lanka, owned by individual local owners. "With the growing demand of tourism, the need for lodging capacity has increased while the requirements of tourists are also changing towards a more privacy-based accommodation," Jon Stonham, CEO of Marketing Villas Ltd said. The three properties to be managed by Marketing Villas are Ocean’s Edge in Tangalle, Pooja Kanda in Kokgala and Ambassador’s House in Galle. Rates range from US$ 350 to 400 upwards per night during the offseason and US$ 600 to 700 during the peak. The villa market in Sri Lanka has much potential to develop considering the post-conflict environment and the special emphasis given by the government and private sector to improve the tourism sector. Arrivals to Sri Lanka increased 40.2 percent for the first five months of this year and the industry hopes it would reach to 800,000 after a successful achievement of 654,000 tourists last year.

ONCE A BLUE, ALWAYS BLUE

The sands of the famed Negombo beach carry memories with the wind; seeing much change over the years, such as the former Blue Oceanic Hotel being magically transformed into a property of luxury and elegance. The sands of the famed Negombo beach carry memories with the wind; seeing much change over the years, such as the former Blue Oceanic Hotel being magically transformed into a property of luxury and elegance, renamed the Jetwing Blue. The product of a massive re-creation exercise undertaken on the Negombo sea front, transforming the Blue Oceanic to the ethereal blue that is now Jetwing Blue was no small task. A tireless effort spanning several months is now slowly but surely taking shape as the Jetwing Blue throws open its new doors, come April 2011. The new layouts are so designed that upon entry, one straightaway sees the idyllic stretch of sand and beyond it the azure expanse of the Indian Ocean. The once 6 room hotel now boasts 112 exquisite rooms including 06 skyline suites which redefines the phrase ‘heaven on earth’ and underwrites the thought of tranquility blending with elegance. With every imaginable luxury being at your finger tips, Jetwing Blue will offer an experience as opposed to a mere hotel stay. Dining is unique to say the least, with the Show Kitchen encompassing the main restaurant. Each menu preparation is meticulously prepared, with finesse and flair by star class chefs operating gleefully from separate action stations offering different cuisine. Backed up by the finest equipment, Jetwing Blue is a feast for the tongue, a true taste bud extravaganza. Other facilities include two swimming pools, as well as a SPA on the second floor bringing that exquisite view of the Indian Ocean while the indulgence of a variety of treatments is yours to enjoy! Jetwing Blue is in the process of completing its crown jewel, the 600 seat Conference and Banquet Hall which will be the largest of its kind in the Negombo area. Whether it is for the wedding of dreams or important business meetings, the Hall promises to be the ideal, best equipped, best located Conference & Banquet facility with a 20 minute access to the Katunayake International Airport. To the international as well as local traveler, what the Jetwing Blue thus offers is an excellent opportunity to engage in one’s business and yet enjoy a corner of the world that continues to retain a charm of its own.

Shangri La hotel development gets off the ground in Sri Lanka The Hong Kong based hotel chain Shangri-La is planning to open 17 more new hotels in the region while its Hambantota project located in the south of Sri Lanka is off the ground as it hopes the island nation would be the next key tourism destination. Shangri-La International Hotel Management, Hong Kong, Director for CSR and Sustainability, Ms. Patricia Gallardo, addressing the Charted Institute of Management Accountants’ Business Leaders Summit said Shangri-La hoped to develop 17 new hotels in the region next year and that its Hambantota project had already moved on to the next level of development. "We are here to help the Sri Lankan economy grow and we would like to blend in with the country’s culture and environment. We are not here to destroy it," she said. Ms. Gallardo said the tourism industry was ranked among the highest revenue earners in the global economy and would be the highest foreign exchange earner here in Sri Lanka as well within the next few years. The number of world tourists by 2020 is expected to reach 1.6 billion since more than 1 billion tourists were recorded in 2010 according to the World Tourism Organization. "The total tourist arrivals by region shows that by 2020 the top three receiving regions will be Europe (717 million tourists), East Asia and the Pacific (397 million) and the Americas (282 million), followed by Africa, the Middle East and South Asia," WTO data showed. South Asia would attract 19 million tourists by 2020. Sri Lanka hopes to attract 2.5 million tourists by 2016 and 5 million by 2020. Earlier this year, Shangri La Asia Limited announced the purchase of six acres of government land facing the Galle Face green promenade, a prominent landmark in Colombo, Sri Lanka. The development will be a multi-use complex with high-end retailing, deluxe apartments and 500-key luxury hotel to open early 2014. The purchase marks the entry of the hotel group in Sri Lanka, often referred to as the ‘Pearl of the Indian ocean’," the hotel group had said then. The outright purchase was concluded for US$ 125 million, and the property is to be developed into the country’s only 7-star hotel. The land belonged to the Ministry of Defence. Shangri La is also planning a second property, a 300-key city resort on approximately 100 acres of land in Hambantota, on the southern coast of Sri Lanka to open in 2013. "Sri Lanka is a country of unsurpassed natural beauty, rich in cultural heritage and above all, it is well recognized for its warm and hospitable population," said Greg Dogan, President and CEO of Shangri La International Hotel Management Ltd had once said of the once conflict-torn island. Shangri La manages 70 hotels worldwide with a room inventory of over 30,000. The group has a substantial development pipeline with upcoming projects in Austria, Canada, mainland China, India, Macau, Malaysia, Philippines, Mongolia, Russia, Qatar, Turkey and United Kingdom.

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IInnffllaattiioonn hhoollddss aatt 33..33 %% oonn hhiigghh ggaass ccoossttss Ottawa— The Canadian Press High gas prices kept inflation above the Bank of Canada's comfort zone for the second straight month in April, with the overall price index remaining at an elevated 3.3 per cent. But analysts said the central bank should actually breathe a little easier following the Statistics Canada report, since it confirms the moderating trend predicted by Governor Mark Carney. The inflation rate was slightly lower than analysts had been expecting. The telling number was that the monthly gain in prices rose by 0.3 per cent — virtually all attributed to a 6.4 per cent hike at the pump —following a scary 1.1 per cent jump the previous month. “This report reverses the knee-jerk market reaction that immediately followed the last (consumer price) report,” said Scotia bank economist Derek Holt, who predicted next month's report will likely see the annual rate returning to safer ground. “As a consequence, the Canadian dollar has sharply sold off... and the market's bets (of an interest rate hike) will further diminish.” The dollar fell about eight-tenths of a cent to below $1.03 (U.S.) on the report, before recovering somewhat. The April report showed inflation in Canada was almost completely tied to gas and energy — with energy prices 17.1 per cent higher than a year earlier and gasoline prices 26.4 per cent higher. Meanwhile, prices for many consumer goods fell during the month compared to March, including food and particularly fresh vegetables, furniture, women's clothing and non-alcoholic beverages. Excluding energy, annual inflation would be exactly where the central bank wants it at two per cent, a 0.4 per cent drop from where this measure stood in March. The bank's core inflation reading, which excludes volatile items like energy and some foods, saw a modest one-tenth of a point dip to 1.6 per cent. While that was a little higher than the bank's expectations for this time of year “the modest pullback... keeps pressure off the bank to raise rates in the near term,” agreed Benjamin Reitzes of the Bank of Montreal. Many economists had targeted July as the time Carney would resume the monetary tightening program he began last summer, but the odds now appear shaded toward a later date. Mr. Holt said it would not be a shock if Carney decides to remain on the sidelines until 2012, particularly since the governor himself expects his U.S. counterpart to stay put all year. Despite still elevated commodity prices, and surveys that show producers concerned about increased costs for raw materials, businesses may have difficulty passing those on to consumers, Mr. Holt said. For evidence, he pointed to the March retail data, also released Friday morning, which showed sales volumes fell 0.8 per cent, the third drop in four months. “That's saying that businesses might like to pass on some higher input costs but consumers are balking,” he said. “I think it's going to be a very tricky environment for any business in Canada to try to pass on a higher price on a sustained basis because unlike a lot of other countries we didn't create any pent-up demand in the crisis.” As well, the flow through from sharp dollar appreciation since August is expected to continue exerting downward pressure on import prices. The overall take-away from the inflation report, with the exception of energy, was that prices are either cresting or edging down. Food purchased at stores rose 3.7 per cent in April, the same annual increase as in March, while overall food prices rose at slightly reduced 3.3 per cent rate. The agency said consumers paid more for meat and bakery products. Shelter costs rose by 2.3 per cent, but mortgage interest costs fell by 2.1 per cent. Regionally, inflation was highest in the Atlantic region with Nova Scotia leading the pack at 4.2 per cent. Iqaluit had the lowest rate of price increases, 1.3 per cent.

Toronto City Four Seasons Penthouse sells for $28-million Luxury has a new price tag.

The 55th-floor penthouse of the new Four Seasons Hotel and Private Residences Toronto has been sold for $28-million, the highest price ever fetched for a Canadian condominium. The buyer – who made the company sign a non-disclosure

agreement – is from out of the country. At about $3,000 a square foot, the 9,038-square-foot penthouse is a relative bargain by international standards. In New York, for example, a comparable property would hit the market at $5,000 a square foot. “There’s more demand than you would think for properties in this price range and the buyers come from all over the world,” said Michael Braun, a Vancouver-based agent at Rennie & Associates Realty. “You’re not talking about investors at this price – these are people who want a unique place to live.” The previous national sales record was held by Vancouver’s Three Harbour Green, which sold for $22-million last year, or $2,300 per square foot. The Four Seasons sale impressed even the most seasoned market watchers, although it is associated

with one of the most luxurious hotel chains in the world. Isadore Sharp founded the company in Toronto in 1960, and expanded it into a global icon renowned for its customer service with more than 84 hotels in 34 countries. Even so, $28-million is a lot of money for a condo, which comes with a 680-square-foot staff residence. But when it went on the market two years ago, the asking price was $30-million. “For the same price as that penthouse, someone could buy an eight-storey office building in the city,” said George Carras, president of RealNet Canada, which tracks the condo market in several Canadian cities. “Or a 14-storey apartment building. Or, 63 average-priced condos.” The sale isn’t likely to wreak havoc in the broader market, because the new owner is essentially buying an entire floor of a Four Seasons hotel. The owner, and all other residents, can use all of the hotel’s amenities, including room service and housekeeping. It all comes at a price: Condo fees are close to $7,000 a month. The taller of the project’s two towers contains 253 hotel suites, with 100 condos built atop. There is a 110-unit condo next door, and 85 per cent of the units are sold despite prices starting at about $1.9-million for a 1,000-square-foot unit. “The penthouse gets the press, but the nuts and bolts of success are actually selling the other inventory,” said Scott Woroch, executive vice-president of worldwide development for Four Seasons. “It’s a great vote of confidence in this project specifically and the global brand in general.” Canada’s real estate market has attracted investors from around the world since the recession, as buyers look to invest in properties that will retain their value. It’s estimated that as much as 60 per cent of new condo sales in Toronto are to investors who plan to rent them out. The average selling price is about $520 a square foot, according to data compiled by condo tracker Urbanation. Anyone disappointed that they didn’t get to buy atop the Four Seasons might consider the penthouse atop Vancouver’s Shaw Tower, which is on the market for $19.5-million. They could also look down the road to the planned Aura development in Toronto by Canderel, which at 75-storeys will be the tallest in Canada. Its penthouse is on the market for $17.5-million. “There are pockets of international buyers who are looking in Canada, and while this all sounds like a lot of money, to them this isn’t all that much,” said Riz Dhanji, a vice-president at Canderel. “Five years ago, these sorts of prices were incomprehensible. But now the buyers are out there and they are willing to pay.” The most expensive home for sale in the country on Realtor.ca, which is maintained by the Canadian Real Estate Association, is a $27-million, 41,000-square-foot mansion in Quebec’s popular city of Montreal.

MONTREAL VANCOUVER OTTAWA TORONTO CN TOWER

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RRRAAANNNKKKIIINNNGGG OOOFFF CCCAAANNNAAADDDAAA’’’SSS PPPRRRIIIVVVAAATTTEEE SSSEEECCCTTTOOORRR CCCOOOMMMPPPAAANNNIIIEEESSS Over the past few years, we’ve seen some of our top brands tarnished by oil spills, tainted-meat scandals and the financial crisis. How well they withstood those trials and how quickly they revived depended, perhaps more than anything, on the depth and integrity of their reputations. It’s not enough today to create a product or service that people love—consumers have to love the corporate entity itself, suggest the results of our new survey. Reputation is a tricky thing to quantify, but the Reputation Institute aims to

do just that. The international research and consulting organization helps firms measure and manage how the world sees them. Since 2006, it’s been conducting the Global RepTrak Pulse study that sizes up the relative respect and affection commanded by the globe’s biggest companies, a task that involves polling more than 85,000 consumers (the interviews ended in mid-April). For the second year in a row, Canadian Business teamed with the institute to assess the reputations of 50 of Canada’s biggest companies by revenue, focusing on companies that deal directly with consumers or have a high public profile. Each was rated by 100 people familiar with the firm on its governance, corporate citizenship, innovation, workplace, leadership, performance, and products and services. The survey also rated consumers’ trust, esteem and goodwill toward the brand. “It’s the emotional appeal of a company that is at the foundation of its reputation,” says Rob Jekielek, a principal consultant at RI. This year, Jean Coutu Group emerged with the highest score, 78.95 out of a possible 100. The drugstore chain is a relative unknown outside its home of Quebec,

but there, the founder is a familiar, grandfatherly icon who, along with his youngest son and current CEO, François, was inducted into Canada’s Marketing Hall of Legends last year. (Read more about the Jean Coutu brand on page 42.) Last year’s winner, Tim Hortons, came in a close second. The coffee chain’s drop in score is part of a wider trend that Canada’s big brands saw this year, according to the institute’s research. Across the list, almost all the companies experienced a slip in their reputation ratings compared to 2010. Only five avoided a fall, essentially maintaining their ratings from 2010, which caused their overall rankings to rise. Jekielek speculates that this slump is due to the fading of the “halo effect” from last year’s Vancouver Olympics, as the goodwill and patriotism that elevated ratings last year slowly evaporated, and scores returned roughly to 2009 levels. Last year, Tim Hortons scored a rating of 83.22, but this year, no company broke into the 80s. One brand that benefited from the overall drop is Shoppers Drug Mart, which soared to third place from last year’s 11th spot, despite an almost identical rating. “Shoppers tend to be a Top Five company, but last year was a low point for them with the fight for generic drugs,” says Susan Quinn-Mullins, a senior adviser to the Research Institute. She speculates that the company strengthened its bonds with customers by taking a stand against Big Pharma. “Taking on the government and threatening to withdraw services—clearly that wasn’t seen negatively by people,” she says. Like Shoppers, WestJet managed to ascend in the rankings by almost standing still because of others brands’ plunging scores. The company does a good job at what the institute calls “enterprise thinking,” meaning that on top of providing customers a great service that they appreciate, consumers have a good feeling about WestJet as a corporation. Research In Motion is one company on the list that the Reputation Institute thinks could improve its brand’s appeal to Canadians. “RIM has a real opportunity to get people emotionally involved and feeling passionate about the company, because they have a strong business foundation and credibility,” says Jekielek. But for RIM, building a specifically Canadian brand has never been a priority. As a result, it scored highest in categories like products, innovation and leadership, but rated lower on trust, esteem and admiration. Canada’s big banks all saw drops in their reputation this year, and that may have been caused by a different kind of fading enthusiasm. “Perhaps some of the halo around Canadian banking post-recession is wearing off,” says Quinn-Mullins. Equally revealing are the names at the bottom of the list of 50—a gutter that tends to be disproportionately filled with energy outfits and telecom operators. “These companies under the 60-point mark are all in a difficult place with substantial [consumer] skepticism,” says Jekielek. The Reputation Institute, which did similar surveys worldwide, believes all Canadian companies could improve upon getting more buzz, especially through social media. “They too often think that if someone is writing about them, it will be negative and that’s what people will remember,” says Jekielek. “But we’ve found people who’ve heard about companies from others view them either on par or more favourably.”

Queen Elizabeth visiting RIM in Waterloo, our 5th favourite company

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RRROOOGGGEEERRRSSS CCCEEENNNTTTRRREEE IIINNN TTTOOORRROOONNNTTTOOO SSSPPPAAARRRKKKLLLEEESSS ––– 222000111111 IIIIIIFFFAAA AAAWWWAAARRRDDDSSS CCCEEERRREEEMMMOOONNNYYY WWWAAASSS AAA GGGLLLIIITTTTTTEEERRRIIINNNGGG SSSPPPEEECCCTTTAAACCCLLLEEE The International Indian Film Academy (IIFA) which has become the most awaited annual film celebrations for the Indian Cinema industry over the last ten years since its inception in 2000 is dedicated to taking Indian Cinema to greater and more glorious heights by promoting it on a global scale. The awards go farther than just fulfilling this objective of honouring cinema by inculcating a symbiotic relationship between India and the host countries in terms of trade, tourism and other commercial relations. 2011 IIFA Awards Ceremony at Toronto’s Rogers Centre was a glittering spectacle of lights, sound, beautiful men and women and breathtaking choreography.

The International Indian Film Academy Awards 2011 was on Saturday, June 25 at the Rogers Centre in Toronto, Canada. Many fans were able to see the IIFA Awards 2011 live stream online because for the first time, the show was available on pay-per-view. That is great news for fans of the show because tickets sold out in just minutes. Many Bollywood actresses and actors like Shilpa Shetty and Anil Kapoor walked the green carpet on Saturday night in advance of the coveted awards show. 2011 marks the first time that the IIFA Awards have been in North America. The show roves to a different country each year. The 2011 IIFA Awards was the show's 12th year, and the popular Bollywood stars made a huge splash in Toronto. Perhaps the show will even come to the U.S. next year or in the near future as the event grows in popularity. The show's motto is "One People. One World," which is something that can benefit everyone. The glitz, glamour and the love and hysteria of fans were unleashed at the opening of the Videocon d2h IIFA Weekend in Toronto. A flash mob took centre stage as the three-day celebrations were inaugurated by the Premier, Honorable Dalton McGuinty in the presence of Indian film royalty comprising film stars, directors and producers, getting the CIBC-IIFA Celebrations off to a magical start. All eyes are on the star-studded glamorous Floriana IIFA Awards as they make their debut in North America. The weekend will bring together the Indian film industry, dignitaries from India and Canada, business leaders, international media and Indian Cinema fans from across the globe. Hosted by the Ontario government, the IIFA Celebrations in Toronto are presented by Canadian Imperial Bank of Commerce (CIBC). After a high octane Weekend that includes the World Premiere of Double Dhamaal, the IIFA Film Festival, the fashion and music spectacular IIFA Rocks presented by The Bay, the IIFA Music Workshop and the FICCI-IIFA Global Business Forum, the weekend will culminate with the ultimate in glamour and entertainment, the Floriana IIFA Awards.

SHAH RUKH KHAN ANUSHKA SHARMA PRIYANKA CHOPRA RANVEER SINGH

AMEESHA PATEL LISA RAY BIPASHA BASU BRETT LEE KARAN JOHAR

INDIA ACTRESS PRIYANKA CHOPRA PERFORMS AT THE IIFA AWARDS SHAH RUKH KHAN PERFORMS AT THE IIFA AWARDS

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16,000 tickets went on sale in January to the general public for the Floriana IIFA Awards. The tickets were scooped up by fans in less than 10 minutes. 22,000 fans at Rogers Centre on 25th of June and television broadcast reach out to an estimated 700 million fans worldwide.

GENELIA D’SOUZA MALAIKA ARORA SONAKSHI SINHA SHILPA SHETTY IN DANCE

CURTAIN COMES DOWN AT IIFA AWARDS CEREMONY BOMAN, RITESH JOKE WITH SHAH RUKH KHAN ANIL KAPOOR WITH HILARY SWANK

HOSTS BOMAN & RITESH SHAH RUKH KHAN WITH PREMIER DALTON MCGUINTY BIPASHA BASU DAZZLED ON STAGE ‘Friend of IIFA’, Anil Kapoor said, “I am thrilled to be a part of yet another IIFA. It is an event that I look forward to every single year and I could not be happier that they have chosen Toronto as the host city for his years’ celebrations. I would like to thank the Government of Ontario, the Honourable Premier of Ontario, Dalton McGuinty and the people of Toronto for the incredible hospitality extended to us.” “We worked hard to land IIFA’s North American debut and we’re excited it’s finally here. This festival will draw more visitors to our communities and showcase Ontario as a great place to live, visit and do business,” said Dalton McGuinty, Premier of Ontario. Speaking on the North American debut and the reinforcement of Indo-Canadian relationships, Sabbas Joseph, Director, Wizcraft International said, “The partnership that we have struck with Ontario will lead to great benefits to both countries in terms of entertainment, trade and tourism. Toronto is definitely the gateway to North America and we hope to maintain a great relationship with this amazing country for many years to come. ” The 12th Videocon d2h Weekend and Floriana IIFA Awards came to a remarkable finish today, surrounded by the overwhelming hysteria from the Bollywood fanatics in Toronto. With a 21,000 strong screaming crowd, the biggest stars from Indian cinema filled the Rogers Centre where eminent personalities including Australian Cricketer Brett Lee, Hollywood stars, Hilary Swank and Cuba Gooding Jr were in attendance. Hosted by Boman Irani and Ritesh Deshmukhin, a fourth consecutive year as hosts while Shah Rukh Khan joined them onstage soon after the curtains came up. POPULAR CATEGORY WINNERS:

Best Story SHIBANI BATHIJA – MY NAME IS KHAN Lyrics NIRANJAN IYENGAR – SAJDAA (MY NAME IS

KHAN) Music Direction SAJID-WAJID & LALIT PANDIT – DABANGG

Playback Singer (Female) MAMTA SHARMA – MUNNI BADNAAM (DABANGG)

Playback Singer (Male) RAHAT FATEH ALI KHAN – TERE MAST MAST DO NAIN (DABANGG)

Debutant Star Female Award SONAKSHI SINHA – DABANGG Debutant Star Male Award RANVEER SINGH – BAND BAAJA BAARAAT

Best Director KARAN JOHAR – MY NAME IS KHAN Performance in a Comic Role RITEISH DESHMUKH – HOUSEFULL

Performance in a Negative Role SONU SOOD – DABANGG Performance in a Supporting Role (Female) PRACHI DESAI – ONCE UPON A TIME IN

MUMBAAI Performance in a Supporting Role (Male) ARJUN RAMPAL – RAAJNEETI

Performance in a Leading Role (Female) ANUSHKA SHARMA – BAND BAAJA BAARAAT Performance in a Leading Role (Male) SHAH RUKH KHAN – MY NAME IS KHAN

Best Picture DABANGG

Editor’s Note:

Attending the International Indian Film Academy (IIFA) Awards 2011 and seeing the stars up, close and personal was one of the highlights of my entertainment life. The choreography of the dances, the dazzling costumes and jewellery were absolutely breathtaking. Epic and energized but also agonizingly late and overlong, the 12th annual International Indian Film Academy awards for Hindi-language films came to Canada for the first time on Saturday night ... and more than two hours into Sunday. It was so nice to hear the Bollywood stars praising Toronto as a wonderful city and re-iterating that this year in Toronto was the best had so far. The IIFA awards ceremony was so informal as compared to the more formal Hollywood version of the Oscars vis-à-vis Academy Awards which has precision timing and ends sharp at 11:00 p.m. But the audience did not mind and fortunately the next day was a Sunday and rest day for all. It was nice to see Asha Bhosle receive a Lifetime Achievement Award while veteran Sharmila Tagore won the Outstanding Achievement in Indian Cinema. Beautiful Priyanka Chopra won the IIFA Green Award for her valuable work in this regard. Pretty girl Anushka Sharma and handsome Ranveer Singh were picked as the STAR PLUS Hottest Pair for 2011.

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Many women unaware of stroke warning Courtesy: The Toronto Star When Ann Dooley awoke early one morning in mid-April with a slight headache, she had no idea it was a warning sign that she was suffering a stroke. It wasn’t until Dooley tried to put on her dressing gown that she realized something was seriously wrong. “And the first thing I knew was that there was a strange arm stuck to my dressing gown,” she recalled. “I tried to sort of pull it away. I remember the thought going through my mind, ‘You’re reading too many detective stories.’ I think I tried to say to my husband. ‘There’s a body in the closet.’” Dooley, a professor of Celtic and medieval studies at the University of Toronto, was experiencing paralysis on her right side. And when her husband asked her to smile on instructions from a 911 dispatcher, “my smile was all

crooked.” After being taken by ambulance to a Toronto hospital, doctors determined she was having an ischemic stroke, the most common type caused by a clot stopping blood flow to part of the brain. The stroke was a surprise to Dooley, an active 68-year-old who was eating a healthy diet and was not affected by high blood pressure, the leading risk factor for stroke. Her experience illustrates a common lack of awareness among women about the signs of stroke and how to prevent the often deadly or disabling neurological event, says the Heart and Stroke Foundation of Canada. In a recent report released, the foundation cites results of national telephone surveys which found that just 62 per cent of Canadian women overall could name even two of the five major warning signs of stroke — and awareness levels among women of Chinese and South Asian descent were even lower.

The warning signs are: → •Sudden loss of strength, numbness in face, arm or leg, even if temporary → •Sudden difficulty speaking, understanding or confusion, even if temporary → •Sudden loss of balance, especially with other signs → •Sudden trouble with vision, even if temporary → •Sudden severe or unusual headache

When it came to risk factors, the survey found that only 23 per cent of women overall could name even one. And among Canada’s two largest visible-minority groups, just 29 per cent of Chinese women and 22 per cent of South Asian women identified high blood pressure as a major predisposing factor for stroke. That Chinese and South Asian women are even less aware of warning signs and underlying conditions than their Caucasian sisters is of particular concern, since genetics and environmental factors such as diet can put them at a higher risk of stroke — as well as death, said Dr. Frank Silver, a neurologist at Toronto Western Hospital. In fact, says the Heart and Stroke Foundation, a previous analysis of Canadian deaths shows that stroke mortality rates are highest among women of Chinese origin, intermediate among women of South Asian origin and lowest among women of European origin. “It’s a situation where they’ve not been informed in terms of what strokes are, they don’t realize that stroke is a common cause of death and, more importantly, they don’t know the risk factors so they can’t prevent a stroke,” said Silver. “And they don’t recognize the symptoms when they occur. So when they’re finally, actually having a stroke, they’re less likely to realize they’re having a stroke. “I think it’s an education gap, a knowledge gap that we need to inform them better and to do a better job at targeting certain components of our population to make sure they are well-informed.” More than 50,000 strokes occur each year in Canada, causing the deaths of almost 14,000 people, more than 8,000 of them women. But even when a person survives, his or her life may never be the same: strokes are the leading cause of adult disability in Canada, said Silver. “It can leave you with total paralysis of one side, an inability to speak, to understand, to see. So it can really wreck someone. And it can come on often without warning, it’s sudden and it’s devastating. “The good news is that almost 80 per cent of strokes are potentially preventable,” he stressed. Managing blood pressure and cholesterol levels, avoiding smoking, getting regular exercise, eating a low-sodium diet and maintaining a healthy weight are among the lifestyle habits that can help prevent stroke. Thanks to her quick-thinking husband, Dooley was able to do the right thing: seek immediate medical attention so her stroke could be treated with the clot-busting drug tPa, or tissue plasminogen activator. If given within a few hours of the onset of symptoms, tPa can be a lifesaver, reversing or lessening the effects of ischemic stroke. Hemorrhagic strokes, which involve bleeding in the brain, make up about 20 per cent of all strokes and require different, but no less urgent, treatment, Silver said. Dooley said 12 hours after she was given the clot-busting drug in hospital; she went from being unable to speak to being able to converse in full sentences. Her only lasting deficit is “some blurs in my speech.” “To me it was a miracle, it was an absolute miracle.” A Harris-Decima telephone poll of 1,013 Canadian women was conducted March 31 to April 10 and is considered accurate plus or minus 3.1 percentage points, 19 times out of 20; a second phone survey in March of 255 South Asian and 245 Chinese women is considered accurate within plus or minus 6.3 percentage points, 19 times out of 20.

The Health Benefits of Friendship………….by Victoria Moran No doubt you’ve heard the good-health prescription: Eat a colorful, natural diet; exercise regularly; manage your stress with relaxation, recreation and meditation; get enough sleep; and have the proper checkups and screenings for your age and history. Recently, a host of research has added another, perhaps surprising, to-do to that list: Make friends, and keep those friendships in good repair. ”Researchers have found that having even one close friend that you confide in can extend your life by as much as 10 years,” says sociologist and relationship coach Jan Yager, PhD, author of Friendshifts. “Numerous studies also show that recovery from a major health challenge, such as a heart attack or cancer, is enhanced because of friendship.” The Friendship Advantage A landmark UCLA study in 2000 showed that, for women, having a circle of friends

actually provides an alternative to the traditional fight-or-flight response to stress. The researchers called this response “tend-and-befriend” and showed that when women gather with other women (and with children), they release more oxytocin, the mother-love hormone associated with breast-feeding, which has a marked calming effect. But women aren’t alone in attaining measurable health benefits from friendship. The Australian Longitudinal Study of Aging looked at nearly 1,500 seniors — women and men — for a full decade. Among their findings was that having good friends is more likely to increase longevity than even close relationships with adult children and other family members. The study subjects with the largest number of close friends outlived those with the fewest by 22 percent. Even major life changes such as the death of a spouse could not erode the “friendship advantage.” What makes these findings exciting — and practically applicable — is that while anyone’s number of family members is limited, we can expand our network of friends for as long as we live. Friends may also add to the quality of those extra years by helping us maintain brain function. A Harvard School of Public Health study that looked at older adults across the country provides evidence that social integration — through marriage, volunteer work or frequent contact with children and neighbors — delays memory loss in elderly Americans. While it’s clear that having friends is a healthy habit, the verdict is still out on the precise reasons why this is so. The Australian researchers speculate that, in addition to the emotional support friends provide one another during difficult times, positive peer pressure may also play a role — encouraging the adaptation of healthy lifestyle practices, such as joining a gym or a smoking cessation program together — as well as the stress-reduction benefits that derive from feeling connected to other people.

Friends in Health - Stress management is, in fact, one of the great gifts of friendship. One 2009 study found that clients with the fewest friendship connections were those most likely to be dealing with depression, anxiety and heart disease. Stress is known to encourage a host of maladies, from the common cold to the arterial inflammation that contributes to cardiovascular disease. That might explain the results of a two-year study that looked at 500 women with suspected coronary artery disease. Those with a strong support system were not only more likely to be alive after two years, but their rates of hypertension and diabetes were lower, and they were less likely to have an excess of abdominal fat.

The Friend-Weight Dilemma - It is in the area of excess fat, however, that a single dark cloud may lurk in the bright sky of friendship and health. A study reported in 2007 in the New England Journal of Medicine suggests that there could be a connection between the rise of obesity and our social interactions. In other words, obesity may “spread” through a network of friends as members of that network become more tolerant of obesity and the behaviors that lead to it. Reflecting on this study, Michelle P. Gallant, MS, RD, of Harvard University Health Services, says, “Because we want to fit in with our peers, we might go along with their way of eating. If we’re out with people having appetizers, drinks and desserts, the brain is stimulated by that, and it can trigger us to eat more than we’re really hungry for.” Curiously, it’s our same-gender friends that appear to be the culprits here. The New England Journal report suggests that we’re influenced more by those who “resemble us.” Even spouses, who presumably share a kitchen and routinely dine together, may not affect each other’s weight gain as much as mutual friends do. These same friends can also exert another kind of unhelpful peer pressure, especially among young women, when they overemphasize and idealize thinness. “I see the damage friends can cause each other about body image,” says Gallant. “Too much ‘diet talk’ can cause women to be preoccupied with body size in a negative way.”The secret seems to be choosing well-balanced, health-conscious friends and engaging together in health-promoting activities. Good habits, as well as bad, may be “contagious” when we’re in the company of people we care about and whose company we genuinely enjoy. A University of Pennsylvania study reported in the Archives of Internal Medicine looked at 344 African-American women and men, and found that exercising with a family member or friend led to more weight loss than going solo, but only if the buddy-cisers enrolled together. Being assigned an exercise partner who wasn’t a “real friend” had a negligible effect.

Be interested: Once a nascent friendship is underway, be genuinely interested in learning about this person. Keep things light and allow for humor. Although strong friendships can develop in support groups and other places where people go for help, more often the person who’ll be there for you when things get rough entered your life through shared good times.

Show your appreciation: Finally, cherish the friends you already have. It’s no easy matter to stay in touch these days, especially if you’ve lived in seven cities, had a dozen jobs and your face-to-face friends are in competition with a hundred Facebook friends you may not have seen since childhood (if you’ve ever met at all). While it can be fun to “know” a lot of people, acquaintances aren’t the same as friends. Stay close to the tried-and-true by getting together in person when you can, sharing a phone call every so often and making e-mail contact or even sending a real note — on paper with a stamp! Handwritten notes were always special, but now that they’re so rare, they’re worth their weight in friendship gold. Finally, be there for the people you care about when they could use a friend. Most of us will never save a life by running into a burning building or jumping into a churning sea, but science now tells us that we just might extend someone’s life simply by being a part of it.

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LLeeaaddiinngg TTeeaa EExxppoorrtteerrss ffrroomm SSrrii LLaannkkaa vviissiitt TToorroonnttoo

Toronto is Canada’s commercial capital and recently became the centre of the universe for Sri Lanka’s leading tea exporters who displayed their products at the popular SIAL Canada 2011 International Trade Show held at the prestigious Metro Toronto Convention Centre. SIAL is an outstanding international showcase for the food industry, and an excellent way to develop relationships that can lead to new export opportunities. SIAL also demonstrates what can be accomplished when government and the private sector work together to find new market opportunities, create new jobs and expand economic growth. SIAL Canada is usually held in Montreal, Quebec. This year marks the first time SIAL Canada was held in Toronto. Running from May 11th to 13th, SIAL Canada 2011, the 8th edition of the conference, closed on a record-breaking note after taking place, at the Metro Toronto Convention Centre.

Prabash Kombalavithana (Imperial Teas), Chamath Hettiarachchi (Millennium Teas) and Alex David (Stassen Exports) with visitors to their booths The international trade show attracted over 697 companies representing 37 countries – as well as over 12,415 visitors from 61 countries. The agri-food industry plays a major role in Ontario’s economy. For 3 days, Toronto became the capital of the food and restaurant industries. This result is remarkable, not only because of the amount of visitors but also because of their varied origins and highlights of this year’s show are shown below:

• Pan-Canadian presence: every province was at the show, which made for a 79% increase over 2010. • The United States and the rest of the world refused to be left out and posted respective increases of 47% and 70% over 2010. • Quebec, the birthplace of the show, also came out in numbers and made up the second biggest visitor demographic by region (17%). • Lastly, Ontario truly welcomed its first edition of SIAL Canada and SET Canada by accounting for 67% of visitors, making it the show’s best represented

region. As the #1 market for U.S. consumer food products, Canada is the ideal market to target U.S. food and agricultural exports with its close proximity, common language and similar culture. In 2009, total U.S. exports of agricultural products to Canada reached a record $15.7 billion accounting for 16% of US total agricultural exports. Canada is the #1 market worldwide for U.S. food and beverage exports – a record $15.7 billion in 2009. It is the only food show in Canada dedicated to both the food retail and foodservice markets. The Greater Toronto Area is home to the headquarters for most of Canada’s leading retail chains including: Wal-Mart, Loblaws, Sobeys, Costco, No Frill’s, A&P and Dominion For the first time since this trade show was launched, Sri Lanka was best represented at SIAL Canada 2011. Five top tea export companies displayed their products at the show and it was evident that buyers flocked to their booths. The exporters who attended the trade show are Stassen Exports (PVT) Ltd. - Millennium Teas (Pvt) Ltd. - Imperial Tea Export (PVT) Ltd. - Expolanka Teas (Pvt) Ltd. and Regency Teas (PVT) Ltd.

International Tea Event in Toronto – The Art of Tea Carol Mark of Arsnova Arts presented a well attended charity event on June 18 at the historical St. Lawrence Town Hall Grand Ballroom in downtown Toronto. The charity event was a sell out and all proceeds collected were donated to Dilmah Tea Foundation set up by its founder and president, Merrill J. Fernando. Proceeds to benefit women with breast cancer in Sri Lanka in honour of Hema Abeygunawardena who died of breast cancer in 2007. Ms. Abeygunawardena was instrumental in advocating breast healthcare for immigrant women in Toronto. Theme of the event was “Explore the sensual tastes of tea with food”. Dilmah Tea Foundation was represented by Dilhan Fernando (in photo) who travelled all the way from Colombo to explain eloquently to the curious audience how and why “tea” is good for your health and how it is classified into various grades that are eventually shipped around the world.

From L to R: Photo 1 shows Deputy Consul General H.M.B. Herath with Consul General Karu Paranawithana; Photo 2 (Centre) Vice President, CSLBC Ganesan Sugumar with SriLankan Airlines Country Manager (Canada) Lalith Wickremasinghe; Photo 3 – L to R: CSLBC President Upali Obeyesekere, Consul General Karu Paranawithana, General Secretary, CSLBC Mohan Perera, a benefactor at the event, Deputy Consul General H.M.B. Herath, Representative from Tea Council of Canada and Dilhan Fernando (Dilmah).

Samples of DILMAH brand teas were given to the attendees who were visibly impressed with the international standard of its packaging. The Guest of Honour at the event was Consul General for Sri Lanka in Toronto, Karu Paranawithana. Also in attendance were Deputy Consul General for Sri Lanka in Toronto, H.M.B. Herath, Members of the Canada-Sri Lanka Business Council (CSLBC) and a host of people from Toronto interested in tea and charity events. The organizer Carol Mark had done a tremendous job in promoting the event. Guest Speaker Jane Pettigrew, tea expert was specially flown from England. Ms. Pettigrew explained the history of tea and also the sensual tastes of tea with food as seen by the British. It was a very engaging presentation and this writer could see that even Dilhan Fernando was impressed with the content and presentation by the visitor from England. Toronto historian Bruce Bell gave the audience a history of the celebrated Grand Ballroom, location of the charity event. Special guest Dilhan Fernando - Director Marketing of the MJF Group captured the attention of the audience with his presentation of “Ceylon Teas” and how the teas are classified depending on where it is grown vis-à-vis places like Udapussellawa, Ruhuna, Kandy, Nuwara Eliya and the Uva Region. All in all, it was a worthy charity event.

Canada to assist Languages policy

The Government of Canada on Monday (27) signed an agreement with Sri Lanka to implement a $ 5.6n project in support of Sri Lanka’s languages policy. Vasudeva Nanayakkara, Minister of National Languages and Social Integration, represented the Government of Sri Lanka and High Commissioner Bruce Levy (in photo) signed on behalf of Beverly Oda, Canadian Minister for International Cooperation. A Canadian High Commission spokesperson said Canada, through the Canadian International Development Agency (CIDA), would facilitate implementation of the National Languages Project (NLP) so that all Sri Lankans could receive government services in their own official language. The official said that the Canadian assistance was in response to a specific request made to the Canadian Minister for International Cooperation, Beverly Oda, by the Government of Sri Lanka during her visit to Sri Lanka in 2009.

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240 Perches

KADAWATA