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No use increasing productivity if products are of low quality — Minister Gooneratne
by Chittaranjan de SilvaImproving productivity of the work force and raising quality standards of goods produced is vital to the country’s economic development, Minister of Industrial Development, C. V. Gooneratne said last Tuesday.
While addressing some of the country’s leading scientists and industrialists gathered at a seminar on ‘’National Quality Policy and Infrastructure development for Quality in Sri Lanka", he said" there is no use in increasing productivity if the products are of low quality," he said.
The seminar was organised by the National Chamber of Commerce and Industry (NCCI).
Raising productivity is also important in tackling the high cost of living, the minister noted.
Minister Gooneratne warned: "You cannot afford to have the luxury of being complacent when it comes to quality and productivity, you have to move with change, if you don’t you would be relegated to the backwaters of Asia’,.
He said that high public sector productivity should facilitate the growth in other subsidiary sectors and importantly the private sector.
Ministers C. V. Gooneratne and Batty Weerakoon , who attended the seminar expressed their gratitude to the Swedish Government for the generous assistance it provided in helping to form Sri Lanka’s "National Quality policy".
Though some excellent policies were developed in Sri Lanka earlier, some of these policies have not been implemented successfully, Mr. Gooneratne said, adding that policies, if not implemented are worthless.
"Environmental policy" and its management and implementation is of added importance, he added. The government understands the importance of productivity and has called the decade from 1996 -2005 the decade of productivity.
Minister Gooneratne told the First Secretary of the Swedish Embassy, Peter Troster present at the seminar, "when we asked for fish you provided us with a rod to fish".
Mr. Troster later said the focus on quality on all aspects, which would ensure customer satisfaction is essential for survival in today’s competitive world.
The Swedish International Development Corporation Agency (SIDA)’s assistance to the SLSI, with regards to the NQP, is mostly concerned on infrastructure development and training with technology transfer in some areas.
Chairman, Sri Lanka Standards Institution (SLSI), Dr. A. R. L. Wijesekera said one of NQP’s objectives is to improve living conditions in the community.
He said the NQP would also improve productivity through waste reduction and boost exports through improved quality and productivity NQP would provide a good image for Sri Lanka internationally as a symbol of quality, he added.
According to Director General of SLSI, C. D. R. A Jayawardena the final National Quality Policy statement with the action plan for implementation had been approved by the cabinet.
But the drafting of legislation to form the National Accreditation Board (NAB), which is vital in implementing the policy, had taken time and the cabinet paper for the establishment of NAB could be expected towards the end of this year.
Quality is essential to achieve goals in the economic sphere and in satisfying the customer. Today, there are over 100 organisations and individuals, apart from the SLSI, engaged in the issue of test reports, certification services and training services.
"Up to now, there is no National system to assess credibility of these organisations and individuals undertake various services related to quality for business and state sector," he said.
This would create problems at national international level such as when promoting goods services. He stressed the need for these procedures to be carried out according to international standards. According to Mr. Jayawardena, the proposed NAB, after it is established would function as the National system for accreditation of certification bodies and laboratories.
President of NCCI, Lal de Mel emphasised that concentrating on quality is vital to succeed in trade, which is also carried out through the internet.
"Buyers would look for certification such as ISO 9000 when buying products through the Internet," he said.
Industries would have to invest more on quality related activities, he said and added that building a good image for the country in relation to quality is of utmost importance.
World market– not the only cause for Gas price hike
by Chittaranjan de SilvaOfficials of Shell Gas Ltd, on Thursday admitted that the high world market price in gas is not the only reason for the shocking 28% price hike in Sri Lanka.
Answering a barrage of questions by local and foreign media, Managing Director, Shell Gas Ltd, Itris Jala said that a part of the price increase would be channelled to pay for the US $ 85 million terminal, the cost of which has increased in Rupee terms due to the depreciation of the local currency.
The construction cost of the new gas terminal at Kerawalapitiya had risen above expectations due to restructuring, he further said.
A huge slice of Rs.101.25 of the Rs.470.00 from the domestic gas cylinder is channelled to fund the `state of the art’ new terminal and filling plants along with the bowsers and wages to the employees, Jala explained.
According to him, the LP gas supplier gets Rs.250.96 from the Rs.470.00 the cost of the product.
When asked why Shell had remained in Sri Lanka while incurring losses throughout its five year stay in Sri Lanka, Jala said that the Shell officials saw ``light at the end of the tunnel" and knew that the government would allow the price increase, without which, Shell would have to leave had Sri Lankan shores in the same way it left China.
`` In China, the government did not allow us to raise prices when the world market prices increased and we had to leave China" he said.
``SGL had to increase the price because the government had stopped paying the subsidy" Jala explained.
Many a question was raised by reporters, whether the agreement the government had signed with Shell Overseas Investments authorises SGL to increase prices by more than 30%.
Shell Gas officials, who said that the agreement could not be disclosed, stressed that according to the it they could increase the price of gas in a month’s time if the world market price of gas had increased by more than 30%, which they claimed had occurred.
Jala insisted that the price hike had to be made at some stage because the world market gas price known as the `CP trend’ which stood in the range of US $ 150.00 in June 99 had increased above US $ 250 for the rest of the year which is over 30% increase in price.
He maintained that Shell gas Lanka Ltd had made huge losses during the period after July 99 and the Sri Lankan government had subsidised SGL by providing them with Rs. 400 million for the four month period from September to December.
He reiterated that Shell officials were constantly discussing with the government and that the government agreed to the price hike because it no longer intended to pay the subsidy to Shell gas in order to keep the price down.
``The government has not paid us the subsidy for this year and is in total agreement with us regarding the price hike. We have been discussing with government officials constantly" Jala said.
He declined to disclose the names of government officials who had discussions with officials of SGL.
Acting on representations made by the Sri Lanka Institute of Taxation, the Commissioner-General of Inland Revenue has appointed Mr. W. Jayawardena, Commissioner, Corporate Taxes to serve as an "in-house" Ombudsman, in the Department of Inland Revenue.
Any person desirous of making representations to the Ombudsman could do so to the above named official, the Inland Revenue Department has announced.
The Ombudsman can be contacted on 323964, Secretary to the Sri Lanka Institute of Taxation has announced.
This week the Plainer BOPs commenced at firm to dearer levels with interest from Tunisia and CIS and prices initially were above Rs. 100. Towards the end of the sale however, the demand weakened and prices dropped below Rs. 100. Plain BOPFs declined below Rs. 100 this week and the bottom of the market settled at around Rs. 95. For the brighter teas there was selective demand, hence very few invoices sold above Rs. 150. The fairly bright BOPFs initially sold at around Rs. 116 and Rs. 122 but towards the end of the sale, the demand improved and several invoices advanced sharply.
The CTC market received substantially less inquiry and many invoices of PF1 remained unsold for the want of a reasonable bid. The progressive decline of the Kenyan market and the very low prices in India may have contributed to same.
The Low Grown average fell below Rs. 140 last week and is expected to decline a little more in respect of the current Auction. Here, a widening of the price range between good teas and poorer invoices was again evident. The Off Grade and Dust markets have been declining progressively and a further weakening can be expected.
The South West Monsoon appears to be arriving at long last and hopefully, power cuts and water cuts could be avoided. In Kenya, the 12-hour power cuts have commenced and could hinder the production in estates where generators are not available. The Kenyan production for April has just been announced with the cumulative position showing a drop of 7.6 Mkg. It is likely that, the fall in tea prices in that country will now be arrested.
— John Keells.
CSE Investor Services Centre marks one year
The Investor Services Centre (ISC) of the Colombo Stock Exchange at Matara completes one year on 5th June 2000. The ISC was established on 4th June 1999 with a view to providing investors in areas outside Colombo with similar facilities as those enjoyed by investors in Colombo. Three stock broking firms namely, Forbes ABN Amro Securities (Pvt) Ltd., MMBL Phillip Securities Ltd. and Jardine Fleming HNB Securities (Pvt) Ltd. are represented at the ISC.
The ISC at Matara has provided investors access to on-line trading, real time information, stock broking services and other connected services.
There has been a tremendous amount of enthusiasm generated among investors in Matara and this is reflected in the performance of the ISC.
From the inception to date over 1,300 new accounts have been opened and the total turnover has been Rs. 301 Million. The ISC has averaged a daily turnover of Rs 1.2 Million for this period.
The Exchange also launched an aggressive awareness campaign in the Southern Province to introduce the ISC. Over 55 seminars for students, 36 seminars for focus groups and on staff of commercial establishments, planters/factory owners, small & media enterprises, the business community, etc. and 6 public seminars. These seminars were very well attended. A total of over 5,000 students, 1,400 members of such focus groups and over 650 members of the public participated at these forums. In addition the ISC also carried out two educational direct mail campaign to the public of the area.
The first anniversary will be celebrated on a simple note with religious observances taking precedence. The occasion will be graced by the investors of the area.
