CIM Talking Point next month

One of Sri Lanka’s top business professionals Rohantha Athukorala will be featured by the Chartered Institute of Marketing at the first CIM TALKING POINT on the 2nd of February at 6pm at Galle Face Hotel. The programme is powered by HSBC.
Athukorala has a rare combination of over 15 years experience of working for the private and public sectors. In the private sector, he has worked in multinationals Lever, Reckitt’s and Johnsons in the areas of Brand Marketing, Demand Management and Sales Management and subsequently Country Management for Sri Lanka and Maldives winning twice the CIM Marketing Achiever Award when he was handling the Dettol Brand in Sri Lanka and there after a Business Achiever Award from PIM Alumnai, University of Sri Jayewardenepura and a Global business leadership Award from Johnson-Lever. The speaker has served the country as the 7th Chairman of Sri Lanka Export Development Board that revolutionized the export strategy of Sri Lanka and then appointed as the 1st Executive Director of the National Council For Economic Development(NCED) the key policy making body of the country when the country achieved a 7.4% GDP growth.
In 2007, Rohantha shouldered the pivotal position of Directing Economic Affairs for the Government Peace Secretariat(SCOPP) under the Presidential Secretariat during the height of the ground operation against the LTTE where he was instrumental in driving private sector trade to the North East. He was also instrumental in maintaining private sector business in the conflict effected North-East during this time as and managing the logistics to the people of the Vanni when it was under LTTE command. Athukorala was part of a larger team that supported the country when it finally liberated from terrorism in 2009. Mr. Athukorala now serves the International public sector - the United Nations Operations (UNOPS) as the National Portfolio Development Manager for Sri Lanka and the Maldives based in Sri Lanka whilst also serving the country on a honourary basis on key National economic growth committees of the Sri Lanka namely The Sri Lanka Tea Board, Ministry of Tourism and the Ministry of Industries whilst he was also appointed to the Presidential Committee on the development of the corporate Tea sector in Sri Lanka by His Execellency the President in 2009.
Due to his outspoken mentality and respect he has garnered in Sri Lanka he is a Guest columnist to the Financial Times and many other national newspapers and global media whilst being invited to represent Sri Lanka as a speaker in many international and local conferences including the Asian Development Bank(ADB) in Manila. Rohantha has a double degree in marketing and an MBA and is currently reading for a doctoral degree in Business Administration. He is a recipient of the GSE scholarship by Rotary International in the year 1997/8.

Former CB Governor passes away

The Central Bank with a deep sense of sorrow, wishes to announce the demise of Dr. H. N. S. Karunatilake, former Governor (1988-1992) of the Central Bank of Sri Lanka on January 24.
Dr. Karunatilake (1930-2010) has served the Central Bank for over 35 years in many different capacities.
Having won an entrance scholarship, he entered the University of Ceylon and graduated in 1952 with a B. A. in Economics. He obtained a M.Sc. in Economics from the London School of Economics, where his studies were sponsored by a Colombo Plan scholarship. Under a Fulbright Research Fellowship at the Harvard University, he obtained M.P.A. and M.A. in Economics. He obtained his Ph. D in Economics from the University of London.
Dr. Karunatilake was appointed as Director of Economic Research, Central Bank in 1975. While serving at the Central Bank, he had served on Boards of research institutions, Universities, financial institutions, Cabinet Sub-Committees and Commissions appointed by the Government and on several State sector organisations. He was promoted as Deputy Governor of the Central Bank in April 1978 and was appointed as Governor on 19 November 1988. He was President of the Society for International Development (Sri Lanka Chapter) and was the first Editor of the Sri Lanka Economic Journal. He was the President of the Sri Lanka Economic Association and President of the Royal Asiatic Society. Late Dr. Karunatilake has written 17 books on Economics and Banking in Sri Lanka and more than 150 articles published in local and foreign journals of repute to his credit.

Fitch affirms People’s Leasing at ‘A-(lka)’

Fitch Ratings has affirmed People’s Leasing Company Limited’s (PL) National Long-term rating at ‘A-(lka)’. The Outlook is Stable. At the same time, the agency has affirmed the ‘BBB+(lka)’ rating on the company’s LKR1bn subordinated debenture issue (which was to take place in 2008) and simultaneously withdrawn the issue rating.
The affirmation of PL’s National Long-term rating reflects its relatively good financial profile and dominant market position as one of the largest specialised leasing companies in Sri Lanka. The rating also reflects PL’s good access to institutional funding, underpinned by the strength of its parent, the state-owned People’s Bank (PB, ‘A(lka)’/Stable, which owns 100% of PL), and Fitch’s view that the cyclical weakening of the company’s asset quality since 2007 is likely to reverse over the medium-term. However, PL’s rating could come under negative pressure if the recovery of its profitability or asset quality lags that of its peers, or the sector as a whole.
The deterioration in PLC’s asset quality showed signs of easing in the quarter ending 30 September 2009 (Q210), subsequent to a peak in June 2009. Fitch expects the improvement in asset quality to continue, as the local economy recovers from a high inflation and high interest rate environment that prevailed over the 24 months to end-December 2008. While structural improvements to PLC’s monitoring and collection mechanism made in the recent past could help speed-up recovery, Fitch expects the company’s non-performing loans (NPLs) to remain high, at least through 2010, as compared to levels seen prior to 2008. This underscores the severity of the recent economic downturn, and it is in line with the agency’s expectations for the broader vehicle finance/leasing sector.
Profitability, as measured by return-on-assets (ROA), improved to an annualised 3.86% at end-September 2009 from a low of 2.75% at end-June 2009. This is brought on by a widening in net interest margins that outstripped credit costs and the NPL drag on interest yield, amid falling market interest rates during the period. Despite the improving trend at present, PLC’s ROA could remain pressured in 2010, dampened by credit costs and NPL drag.
PL’s mainstay is the provision of vehicle finance. As of 31 March 2009, PL’s group assets amounted to LKR25.5bn and accounted for over 23% of total sector assets. PL completed the acquisition of a 97% stake in People’s Leasing Finance PLC (PF, BBB-(lka)/Stable, formerly Seylan Merchant Leasing) on 3 July 2009. PF is a registered finance company, which can accept public deposits by virtue of its license. PL plans to diversify its consolidated funding profile and reduce cost of funds over the medium-term, via the acquisition of public deposits through PF.

“English as a life skill” to be launched

City & Guilds International along with its implementation partner Skills International under the “English As A Life Skill” project are bringing on board prestigious professional education institutions, in order to deliver the Internationally renowned City & Guilds English language qualifications. This project is part of an island wide initiative to promote English language teaching and will supplement the Communicative distance learning TV program “English as a life skill” to be launched later this year. The program initiated in Colombo will be rolled - out island wide with a commitment to certify over 10 000 learners by the end of 2010.
Skills International has been in the forefront of training students for City & Guilds examinations. They have wealth of experience conducting over three thousand examination for English. Aside from English training they are also involved in Technician education, Corporate training and providing consultancy services in several fields covering Educational, Vocational & Socio-Economic development with branches in Colombo and Pakistan. Mufthy Hashim (Country Manager City & Guilds) handed over MoUs to nineteen leading educational institutions in western province who have committed to promote City & Guilds English qualifications under the “English as a Life Skills” initiative at a press conference held at Hotel Renuka recently.