Sri Lanka Financial News | Sundayobserver.lk

The financial meltdown that is currently roiling the globe can be traced to banking practices related to subprime mortgages.

The New York Times newspaper has argued that the laissez-faire economic model of "letting market forces run free has led to these [disastrous] consequences." Numerous academics and bankers have opined that the world needs an alternative banking model that allows investors and banks to split profits as well as risks. Islamic banking has shown that it is a viable alternative model by offering products and services that more equitably distribute risk and reward between banks and businessmen. In this current period of extreme financial volatility, Islamic banks are seen as bastions of stability. Indeed, the Dow Jones Islamic Market Indexes, benchmarks for Islamic investment-related categories, have been outperforming their non-Sharia compliant counterparts by 3 to 4 percent in key indexes.Justice is one of the most important concepts in Sharia Law, the body of Islamic legal principles on which Islamic banking is founded.

The payment of interest or fees for the renting of money for specific terms as well as the investment of funds in businesses that are run contrary to the tenets of Islam are prohibited in Sharia law.

Transactions that could be unjust for either the borrower or the lender are discouraged. The simplicity of Islamic finance is considered by many to be very appealing, especially given the context of the present global financial crisis which has been blamed, in part, on the use of complicated debt instruments.

Islamic finance prohibits transactions such as selling assets that one does not own, selling another party's debt, and engaging in speculative activities. Indeed, investors who did not invest in the conventional interest-based financial system were largely insulated from the ongoing financial crisis.

In Sri Lanka, the Amana Group has established itself as the pioneer in providing Islamic financial services, from merchant banking to insurance, to Muslims and non-Muslims alike. Incorporated in 1997, Amana Investments Limited (AIL), being the investment and financing arm of the Group, offers a range of Sharia-compliant financial solutions to its customers.

Since its inception, AIL has been working towards obtaining a commercial banking licence from the Central Bank of Sri Lanka (CBSL) which would allow it to expand its business activities and the breadth of its revenue sources by offering its numerous customers a wider range of Sharia-compliant services and products. In 2005, amendments were introduced to the Banking Act to include the provision of financial products based on the profit and loss sharing principle as permitted business for licensed banks, thereby paving the way for Islamic banking in Sri Lanka.

The Amana Group has reached another milestone in this journey with the granting of a Letter of Provisional Approval to establish a licensed commercial bank named Amana Bank Limited by the Monetary Board of CBSL. Consequent thereto, the Amana Group is currently taking steps to establish the first truly Islamic commercial bank in the country, i.e., Amana Bank Limited, which was incorporated on the 5th of February, 2009. Amana Bank has not yet been granted a licence to carry on banking business under the Banking Act, No. 30 of 1988 (as amended). Upon achieving certain conditions listed in the Letter of Provisional Approval such as the raising of a minimum capital requirement of Rs. 2.5 billion, Amana Bank expects to receive a banking licence from the CBSL that will enable it to begin commercial banking operations.

Seylan credit cardholders rewarded !

Seylan credit cardholders enjoy exclusive offers and privileges throughout the year. Starting this year, the winners of January and February credit card draws walked away with prizes such as computers and Seylan visa gift cards.

Cardholders who used their credit cards over 12 times each transaction being Rs. 2,500 or more from December 1, 2008 - January 15, 2009 had 25 per cent of their Finance Charge for the month of February 2009 waived off.

Apart from these offers there will be a New Year draw to select 3 lucky winners to have upto Rs. 50,000 of their Avurudu expenses paid. Loads of prizes await Seylan credit cardholders this year.

Moreover, Seylan Credit cardholders receive a Free Travel and Medical Insurance Cover upto 50,000 dollars when they travel. With the No Stamp Duty saving cardholders can indulge in purchasing goods without having to worry about additional levies.

Sampath now at Embuldeniya!

Caption:I. W. Senanayake - Chairman, Sampath Bank and G. L. H. Premaratne- Executive Director/Chief Executive Officer Sampath Bank cutting the ribbon at the auspicious moment at the opening of the branch while Ms. Preethi Senarathne-Branch Manageress, Aravinda Perera-Executive Director/Chief Operating Officer, Hemantha Marasinghe-Manager Engineering Services, Nimal Tillekeratne Deputy General Manager Operations and Commercial Credit Sampath Bank look on.

Sampath Bank reached another milestone in expanding their corporate network by opening their latest branch in Embuldeniya last week.

The new branch is the 114th of Sampath's electronically linked islandwide branch network that offers accessibility to the banking facilities from anywhere in the country.

True to their tagline "We Present Your Future", the branch is fully equipped with state-of-the-art technologies and well trained staff to provide cutting edge financial solutions and hassle free banking services to the customers in the locality.

Addressing the gathering at the opening ceremony, I. W. Senanayake - Chairman, Sampath Bank - assured that the bank will make every effort to deliver the highest level of customer service, cutting edge financial solutions, flexibility with a focus on customer needs and the technology of tomorrow, today.

The bank completed a successful year 2008 with a profit increase of 26.9% and is standing strong amidst the turbulent industry.

Affordable nourishment to the nation

Serendib Flour Mills Pvt Ltd, a member of the Al Ghurair Group of Companies, Dubai, UAE which launched its Sri Lanka operations in June last year, has revolutionised the local Atta Flour market by making it more affordable to the Sri Lankan public in the wholesale market.

CEO/Director of Serendib Flour Mills (Pvt) Ltd Sathak Abdul Kadar said, "Although Atta flour is a nutritious and healthy product with very high fibre, mineral and vitamin content, its high price has continuously barred it from reaching average Sri Lankan homes. In keeping with our promise to the Sri Lankan public, we are now proud to continue 'Nourishing the Nation' with our superior brand - "Seven Star Atta Flour".

"Seven Star" Atta Flour is very high in nutrition and yet the most economically priced flour in the wholesale market. Its high bran content makes it a fibre-rich food which can easily be digested by both young and old. Seven Star Atta Flour's unique composition enables one to make a variety of products such as rotti, naan, chapathi, parata, poori and pittu", Kadar added.

Studies have indicated that Atta flour was predominantly consumed in the Central, North Central and Northern areas of Sri Lanka. However with the number of health conscious urban Sri Lankans rapidly on the increase, the demand for Atta Flour in Colombo, its suburbs and the Southern areas is equally on the increase. Hence the Serendib Flour Mills decision to market its Seven Star Atta Flour islandwide in the wholesale market.

Chief Marketing Officer of the Company Suren R. A. Abeywickrema added that the 'Seven Star' brand of flours address different market groups. "Our All-Purpose Flour targets the thousands of bakers in this country while Household Flour and Atta Flour are essentially for households. The Seven Star Brand represents seven cardinal values. Each star represents an intrinsic value - Purity, innovation, quality, freshness, expertise, service and trust", he said.

"We have been providing different 'solutions' to the requirements posed by the industry - both bakery owners and the public. Atta flour is another addition. Our commitment to provide a far superior and fresher product delivered direct to distributors underscores our role as a responsible corporate citizen having the end user's interest at heart", Kadar concluded.

Abans Avurudu sale

Abans Nakath Vasi Avurudu Sale, now on at all Abans showrooms, promises to give their loyal customers real value for money with huge discounts of upto one-third the value slashed from the original selling price.

And that's not all, customers can also enjoy many other benefits like `Hatrick Offer', `Twenty-20 Offer', `Free Hit Offer' and a chance to be one of 10 lucky customers to win free air tickets to England for the World Twenty-20 Cricket Tournament in June 2009 with accommodation and match tickets to cheer our Sri Lankan cricketers.

And what's more, Abans "No Poli-More Jolly" interest free instalment terms are available to customers to help them shop to their hearts content without worrying about their budget. To celebrate LG's sponsorship of the World Twenty-20 Cricket, Abans, the sole agent for LG products in Sri Lanka, launched the Abans LG Twenty-20 Win Win promotion which coincides with Abans Naketh Vasi Sale.

A customer who buys any product for Rs. 5,000 or over will be entitled to a chance to win an Air Ticket to England with accommodation and match tickets for World Twenty-20. A total of Ten Air Tickets will be on offer for those who shop at Abans from March 15 to April 15, 2009.

Unique opportunity

Abans offer you the unique opportunity of being a multiple winner! When you buy a product from Abans, you are not only assured that you have purchased a world class product with a guarantee of quality and after-sales-service, but also excellent value for your money and the chance of a lifetime to visit England in summer and watch our world class cricketers participate in a world class tournament. Visit your nearest Abans showroom to view the wide range of LG's innovative energy saving appliances, and guaranteed quality appliances from the world's best brands.

The widest selection of refrigerators, televisions, washing machines, air conditioners, cookers, ovens, vacuum cleaners, floor polishers and more. Also affordable, fuel-saving scooters and motorcycles from Jialing, LML and Piaggio, with advanced Italian design and Honda technology.

Investor forum on investment and the private sector

ART Television Broadcasting Company (Private) Limited, a private Television Channel is organizing an Investor forum under the title of "The Next Step: Investment and the Private Sector".

It will be held on the 31st of March at Hilton Colombo, the forum will be addressed by Deputy Minister of Finance and Planning Dr. Sarath Amunugama, who will speak under the title of "Post conflict Sri Lanka, the Private Sectors role"; BOI Chairman Dhammika Perera; Governor of the Central Bank Ajith Nivard Cabraal; Director General of Public Enterprises Dr. B.M.S. Batagoda - Chairman of Sri Lanka Tourism Development Authority; Director General of Sri Lanka Telecommunications Bernard Goonetilleke Regulatory Commission Priyantha Kariyapperuma and - Managing Director of Sri Lanka Ports Authority Captain Nihal Keppetipola.

Edu Vision exhibition in Maldives

Edu Vision has grown significantly, establishing itself as the leading and most important higher education exhibition in the Maldives, organized by Maldives Exhibition & Conference Services (Pvt) Ltd., (MECS), the Maldivian counterpart of Lanka Exhibition & Conference Services (Pvt) Ltd, (LECS), both of whom are members of South Asia Exhibition Services Network (SAES), a multinational organization having representations in countries such as Malaysia, Singapore, Dubai, Sri Lanka, India, Maldives, Hong Kong, Thailand, Pakistan and Europe.

Largest operating theatre Nawaloka's latest venture

Nawaloka Hospitals, the leaders among private sector healthcare providers, who opened their new hospital complex in November last year at a cost of Rs. 1.5 billion, recently commissioned their state of the art operating theatre complex with 14 operating theatres at a construction cost of approximately Rs. 50 million per theatre.

The operating theatre complex was opened by Dr. P.R. Anthonisz, who the hospital sources said performed the first operation when Nawaloka Hospitals first opened its doors to the public in 1985.

Several distinguished surgeons and anaesthetists were present at the opening; among them being Professor A. H. Sherifdeen, Professor Harsha Seneviratne, Professor Mandika Wijerathne, Dr. Maiya Gunasekara, Dr Fred Perera and numerous others.

Electronic System

"Equipped with the latest technologically advanced equipment including the latest LED Operation Theatre lights, an electronic gas delivery system, an electronic Master Clock system which displays the same time throughout the hospital and is unique to Nawaloka Hospitals [a critical factor for births], this complex is any surgeon's dream" said Deputy Chairman Nawaloka Hospitals, Jayantha Dharmadasa."The most expensive item in the healthcare industry is the cost of introducing new equipment. The modern world is such that every day there is new technology coming into the industry, which makes even new equipment obsolete; however in order to keep our services up to date, it is essential to provide the latest technology in spite of the cost and with this end in view, Nawaloka Hospitals annually spends over Rs 200 million on new equipment alone", he said.

New shirts for old ones

Focuss, one of the nation's leading brands of casual wear, is urging all Sri Lankans to make the change. It has announced a novel new promotion, whereby customers can trade in an old shirt for a useful Rs. 250 discount on a brand new Focuss shirt. According to the Focuss spokesperson, any old shirt, t-shirt or kurtha top is welcome. It doesn't matter if it's faded, stained, or even torn. Similarly, the discount can be applied to any Focuss shirt. The Focuss range features a large and varied selection of casual shirts that are of the highest quality and latest style.

The promotion is timed to coincide with the upcoming festive season, and gives everyone the chance to have a new look for the New Year.This innovative offer is available at all Focuss dealers islandwide, but only while stocks last. Since it is a attractive offer and is expected to be immensely popular, Focuss advises all potential customers to grab the opportunity without delay.

Reputed dealers as agents for Olympus

Brown & Company PLC the sole agents for Olympus cameras in Sri Lanka introduced a new customer touch point through the appointment of reputed studios as authorised dealers for the brand.

The first such studio dealership was launched in Matale a few days ago when Crown Studio was appointed as an authorised dealer for Olympus cameras.

Sharing his views on this new channel CEO/GMD of the Browns Group Murali Prakash said " Due to the popularity of Olympus cameras as being a technologically advanced yet competitively priced product offer, the demand for these cameras has grown.

Therefore we believe that we need to have more customer touch points in different regions and reputed & trusted studios was an obvious choice".

Owner of Crown Studio Matale Priyantha Herath said " I am pleased to be appointed as an authorised dealer for Olympus cameras. Being professional in photography I have seen the technological advancements that Olympus has made in their digital product offerings and since there is a product portfolio for every type of user this product would do well in the region".

The establishment of a new dealership channel is also to facilitate customers to buy the genuine product from the Sole Agents which is Brown & Company and its authorised dealer.

Triumph Liberty Plaza

International lingerie giant Triumph, ‘has opened a new store at Liberty Plaza, Colombo’s first shopping complex.

The new store was opened by Shalindra Fernando, General Manager Triumph International Lanka Pvt. Ltd on Wednesday March 11. Commenting at the store opening, Shalinda said “This latest Triumph Store is approx 400 sq feet in size and has been designed incorporating the latest guideline set by Triumph International in Europe. The outlet is simple yet elegant, luxurious and will definitely deliver a memorable shopping experience to our loyal customers in Sri Lanka.”

Advertorial

Islamic banking viable