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| Sunday, 27 April 2003 |
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Business |  |
| News Business Features Editorial
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Business in brief Zurich Financial Services reviewing its options Zurich Financial Services announced last week that it is conducting a strategic review of different options for its shareholding in Zurich NDB Finance Lanka (Private) Ltd (ZNFL). These options include divesting its shareholding in ZNFL and thereby its controlling interest in Eagle Insurance Company Ltd, as well as continuing current arrangements. Zurich has a 58.44 per cent holding in ZNFL, its joint venture with Capital Development and Investment Company Limited (a subsidiary of National Development Bank). In turn, ZFNL holds 87.2 per cent of Eagle Insurance, a composite insurance operation listed in the Colombo Stock Exchange. The strategic review is in line with Zurich's announcement last year to focus on its core Life and Non-Life insurance business, and to redeploy capital to its core markets. Zurich Financial Services is an insurance-based financial services provider with an international network that focuses on its key markets of North America, the United Kingdom and Continental Europe. Pramuka Merchant restructured as Sterling Merchant Investments Pramuka Merchant Corporation, a merchant banking company which commenced business in March has been restructured as Sterling Investments after being bought over by Mercury Investment Holdings (Pvt) Ltd. The company, with a network of 11 branches, was operating successfully, when it became an unfortunate victim of the Pramuka Bank saga due to its close business relationship with Pramuka Bank and Pramuka Group at the time. Mercury Investments, comprising high networth individuals, bought over the entire shareholding of the company's former Chairman Rohan Perera and Pramuka Holdings and the company was renamed Sterling Merchant Investments Limited from last month. The company's long-term business strategy is to emphasise on fee-based business while generating substantial income through fund-based products. Mercury Investments is the holding company of Sterling Merchant Investments and the Board of Directors are frank Irugalbandara (Chairman), Dayantha Fernando (Managing Director), Sarath Herath, Nela de Zoysa and Ranjan Mellawa (Director and General Manager). Low IDD rates for the season Lanka Internet Services Ltd., the pioneer of Internet-based Information and Communications Technology (ICT) in Sri Lanka, is conducting a special seasonal promotion for Voice line, its pre-paid International Calling Card. Voice line is offering International Direct Dialing (IDD) at Rs. 18 during Avurudu. Countries which fall into the Rs. 18 bracket include Canada, UK, USA, Singapore, Switzerland, Germany, Hong Kong, Italy, Japan and South Korea. There is also a substantial cost saving to most other destinations across American, European, Middle Eastern and Far Eastern regions. Voice line gives users the opportunity to make international calls from any where in the country at any time to over 200 countries around the world. The card can be used by anyone making a call from a land line, mobile or even a payphone. A flat tariff rate is applicable without peak and off-peak time belts. The cards are available island-wide through the company's dealer network. Corporate prepaid and postpaid accounts are also being offered. Lanka Internet is a Board of Investment - approved and licensed telecommunications services provider backed by Central Finance Co. Ltd., Lanka Ventures Ltd., Esjay Electronics (Pvt.) Ltd. and International Internet Services Inc. based in New York. It was the catalyst to inspire the Internet-based ICT revolution in the country by linking Sri Lanka to the information superhighway in April 1995. The company's products include local and global data, voice and video communication solutions incorporating Internet technology, web and e-commerce. Indian publisher opens Lanka office The Sri Lanka office of Durga Das Publications Pvt. Ltd, New Delhi, at the Colombo Plaza Hotel was declared open by Paddy Withana, Chairman Sri Lanka Tourist Board recently. The initial venture of this company would be the publication of a book titled 'Discover Sri Lanka - A Land Like No Other' The book would be launched at the opening of 'Destination Sri Lanka', the travel mart scheduled to be held from May 17 to 22 at the new Exhibition and Convention Centre at the BMICH. This quarterly publication will be distributed locally and internationally to all Sri Lanka Tourist Board and Sri Lankan Airlines offices overseas, travel trade fairs such as the World Travel Market in London and ITB Berlin, tour operators and travel agents presently sending visitors to Sri Lanka and to those who could be persuaded to send groups to the island. Change of ownership at Mercantile Leasing The National Development Bank (NDB) has sold a majority portion of its holding in Mercantile Leasing Limited (MLL) to a group of investors. NDB and one of the subsidiaries owned 66 per cent of the shares in MLL. After the divestiture, NDB will retain 10 per cent of the shares. Major shareholdings were purchased by the National Savings Bank (NSB) (19.5 per cent) and businessman M. M. Udeshi (29 per cent). MLL's financial statements for the year ended December 31, 2002 reflected a turnaround from the previous year in achieving a net profit of Rs. 47.4 million. Nihal Welikala, General Manager, NDB, explaining NDB's rationale for selling, said: "As most people are aware, NDB is presently working towards merging its business with the commercial banking business of NDB Bank Ltd, subject to regulatory and shareholder approval. As a matter of strategic focus, attention is being directed towards the merger, and hence NDB's decision to decrease its holding in MLL". He added that NDB will continue to be involved in MLL as a director. NSB and M. M. Udeshi will be represented on the Board. There will also be continuity at the Board level with MLL's Chairman A. N. U. Jayewardene continuing in the same capacity and R. Senathi Raja, A. Kathiruvelupillai and Nihal Welikala continuing to serve as non-executive directors. Scheme to assist 'Ready To Drink' tea exporters The Sri Lanka Tea Board has recognised from market forecasts and other information that there is a good potential for Ready to Drink (RTD) teas in the international markets, especially in developed countries. To capitalise on this opportunity, the Board has introduced a financial assistance scheme to encourage tea exporters to manufacture RTD teas in Sri Lanka. Ready to Drink tea as an iced beverage was first introduced in 1904 in the USA. Since then, the sector has recorded phenomenal growth as a new product, particularly in developed countries. Today, the iced tea market has made substantial progress in terms of volume, variation and profitability.The expansion of the RTD segment in the world tea market is due to its convenience, increasing focus on healthier drinks and its appeal to the younger generation. The highest growth segment of tea consumption in USA and Japan during the past several years has been RTD. The Tea Board has implemented the scheme to provide financial assistance by way of interest susbidy for the development of the RTD sector. Under this scheme the board will subsidise up to 50 per cent of the interest payable on loans obtained by registered tea exporters for the procurement of machinery required to manufacture RTD teas up to a period of five years. The maximum amount on which the interest subsidised will be Rs. 20 million. Point-blank : Scrambled egg on BoI's face Were investors skimming through the March issue of BoI's monthly bulletin titillated or flummoxed by this part of a scrambled headline "The Board of Investment of Sri Lanka's..." appearing just below the masthead 'The Investor'? And then, did they lose grip on their money bags meant for projects in sylvan glades when they tripped up on what followed "... Celebrates to Silver Jubilee and opens Economic Regional Commissions"? One can well imagine some seeing red when BoI loses face, what with all this egg on its face! Sniper |
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