India bans tea sales in domestic tariff areas Don Carolis’ furniture: notches 140 years excellence OPNION No free ride for Sri Lankan economy India bans tea sales in domestic tariff areas In an apparent bid to arrest the declining trend in domestic prices, the government of India has banned the sale of tea by export oriented units (EOUs) and units in the export processing zones (EPZs) in the domestic tariff area. This is a temporary measure and subject to review once the situation of falling domestic prices improves. These units had been permitted to sell up to 25 percent of their production in the domestic tariff area. The decision is said to have been prompted by an alleged diversion of tea originally intended for export, to the already over-supplied domestic market. This had aggravated problems for the small growers. There is, however, no estimate of how much of such diversion actually took place. Analysts have contended that the move would have little impact, apart from giving a psychological boost to sagging auction prices.. Tea prices at auctions had been falling continuously over the past two years, and this has been attributed to the fall in exports, leading to an over supply in the domestic market. The impact of dwindling export volumes on prices, mainly due to a lower off-take from Russia, has been felt more in the south of India, and in an attempt to tackle the situation the government has announced a price subsidy scheme for small tea growers. That subsidy had been increased recently, but it is not clear whether this move, ie., to ban domestic tariff area sales will improve the situation. Meanwhile the Sri Lanka Tea Board has released the tea production figure for June as approximately 27.8 mkg — an increase of 44.04% when compared with 19.3 harvested during the same period last year. Low Grown Pekoe and OP grades, which enjoyed better marketing conditions than most other grades, were discounted by buyers substantially last week. This, trade sources feel, is only a temporary set back and price levels should reverse in the coming sales. Stylish leafy varieties met with improved demand this week and this trend too is expected to continue. Tippy varieties were well sought after at this week’s auction and substantial price gains were recorded. The mostly dry weather conditions which prevailedover the past few weeks in the plantation sector has changed and localised showers with overcast conditions have been reported from the Western and Low Grown planting districts. The harvest should improve in the next few weeks, should more regular rainfall be reported from these areas. It is reported that the first tea processing plant in Pakistan will become operational in April next year. This will cost around Rs.20 million. It is being set up by the Pakistan Agricultural Research Council of Islamabad at its National Tea Research Institute in Mansehra.It is also reported that the government of Pakistan plans to stop tea imports to the country by the year 2005. ‘Teauction.com’ Don Carolis’ furniture: notches 140 years excellence The name "Don Carolis" is synonymous with high quality furniture. The company today celebrates its 140th birthday with a month long celebration "140th Anniversary Fiesta" offering generous discounts up to 40% on their entire range of furniture. It was way back in 1860 that Don Carolis furniture was first put on the drawing boards by its founding father Mudliyar Don Carolis Hewavitarana. The company fast gained a reputation for its range of artistically manufactured furniture turned out by master craftsmen. International recognition for Don Carolis came early, when the first order to Australia was secured in 1886. Before long, the company was exhibiting its expertise at many international locations, at the Indian Industry Exhibition in 1900, the St. Louis USA Exhibition of 1904 and at the Wembley Exhibition in 1935. The ultimate recognition to the company came when it was selected to supply a twenty eight piece Nedun; Bedroom Suite as Ceylon’s gift to Queen Elizabeth II on the occasion of her coronation. Today, in the 21st century, in an atmosphere of high technology and state-of-the methodology, the company still maintains the tradition of excellence, simultaneously upgrading its product facility by investing in modern machinery and computer aided design techniques. To many today, Don Carolis furniture is seen as too expensive, which is not surprising considering it is superior quality. However, Don Carolis furniture is yet affordable! The company having modernized its design techniques and sourcing its raw material from all over the world making good use of the economies of scale has been able to provide a quality product at a very reasonable price. Recognizing contemporary needs, Don Carolis manufactures and supplements its local range with imported furniture from Malaysia, Korea, Taiwan and China, to suit any apartment, house, office complex or bank. Whether elaborate or simple, striking or light and natural, each piece of furniture is unique and makes a stylist statement. Besides their standard range of furniture, Don Carolis manufacturers custom-built furniture to suit individual tastes and styles. A qualified team of designers, using high-powered computers have designed and furniture several high-rise apartments, office complexes and some of the major banks operating in Sri Lanka. As part of its 140th year celebrations, the company has newly refurbished its showrooms at Colpetty to international standards comparable to the best in Britain and USA. A visit to these showrooms is an opportunity one should not miss, especially during the 140th Anniversary Fiesta. OPNION No free ride for Sri Lankan economy by Dinesh Weerakkody Today while many South Asian countries have won back the hearts of investors, Sri Lanka has suffered neglect. Analysts say political strife and ongoing concerns over the pace of reforms have left Sri Lanka in the doldrums. As a result, the mettle of many of our private sector leaders have been tested as the prolonged slump in economic activity has resulted in deep falls in production and consumption of goods which now has the capacity to challenge the very existence of their companies. While some of our companies continue to slide due to the economic crisis, the banks continue to exert more pressure on the falling companies to collect their dues, spreading their margins further to avoid a drop in profitability. Today, like other companies banks also should be forced to find ways to save money and re-think the way they do business without being allowed to exert undue pressure on their borrowers in today’s dismal economic climate. A bank’s lending has to be more competitive if the engine of growth, the private sector is to survive this turmoil. After all, the financial sector can be described as the heart of modern economic life. Therefore, it is high time our leaders in the financial sector came forward to assist the government to promote macro economic development, because, it is companies that make up the economy. Leadership Whether in government or in business, effective business leaders in countries like Singapore, South Korea and Thailand have shown that the 1999 economic crisis was manageable without comprising on quality and moral. Political leaders, too, are proving that the crisis is manageable by holding firm and by sticking to clean government and free markets. Therefore, as investors regain their enthusiasm for venturing across Asia and the world becomes one market, Sri Lanka needs a new breed of political and business leaders who can articulate a clear vision, display an exeplary commitment to the law and deliver sound policies. It is obvious that only enlightened leaders can calm jittery markets, deliver sound policies and pull our nation together to cope with today’s challenges. In countries like Singapore and Thailand, leaders are proved beyond doubt that any crisis is manageable by sticking to clean governance. Businessmen On other hand our private sector too must have a core group of businessmen and professionals who can react swiftly to and exploit the series of economic disturbances and opportunities that are sweeping the region. These men and women who will direct our private sector and be responsible for our economic fortunes in the next millennium must embrace the fundamental change in business philosophy required to deal with these challenges. Our future business leaders, will be the people responsible for reshaping our private sector, our economic fortunes in the next century and even pull our nation together to cope with future challenges in the absence of sound political leadership. But for this transition to take place our business leaders need to project themselves beyond their customers. They must reach out to communicate and participate in public affairs. MNCs like Shell need to be in the forefront in creating this culture without engaging in unethical practices and misleading the public. Managerial Challenge More than ever before if the chief executives want to ensure that their businesses are growing through the downturn and is sustaining profitable growth over long periods, they need to cut costs and rationalize their business, while ensuring that changes are made with growth in mind. If firms want to survive managers more than ever before need to do more than work hard in today’s new economy. Today companies need to find ways to save money without compromising on quality and make their staff more productive while keeping morale high. The new economy has undoubtedly begun to affect our economy and as a result most companies have begun to experience the downside of the change and this has forced many companies to re-think the way they do business. But it seems in most instances our business leaders don’t seem to recognise that change is taking place in the corporate world at unbelievable pace. Today, Sri Lanka’s new generation of managers who are generally armed with western management theories may be better equipped to manage change. If change is not professionally managed, many of our firms will find it hard to compete. Effective management Perhaps visionary management on the part of CEOs could not only bring about important cultural change in organizations, but could also help them to live happier lives with fewer regrets. Hgwever, transforming the organization would require the CEO to communicate more closely with the employees, because if the employees understand the goals of the company they will focus on achieving them. Furthermore, effective management is only successful is productivity gains can be measured keeping the score. Modern management Modern management philosophy is that you unleash the innate creativity of people at all levels of the organization by helping them to set attainable goals, give them what they need to achieve the goals, then get out of the way while the innovative sparks fly. For the organisation, the results will be new ideas for products and services, better and more effective methods of generating greater productivity, higher quality at less cost, or whatever top management has determined before hand are the strategic goals for the business. On the other hand, for the employees, the pay off will be greater self fulfillment, a chance to progress and attain their personal goals, and a happier and smoother work place. It has been pointed out that, the goals which motivate people, in varying degrees and at varying times, are surprisingly few. Furthermore there are growth, achievement, wealth power, recognition, pleasure, creativity, love and health. When the business sets clear goals which the individual can attain and also provides the means of attaining them, the result can be enthusiasm, energy, excitement and creativity. Goals The business entity must clarify the goals, priorities and strategies which are appropriate for the company’s particular situation and the state of the economy. Perhaps, with this type of approach, people are a free to choose their own methods of work because they are no longer bound by a stream of directives from head office. Of course, no part of the business can operate independently of the whole. The teams should act as integrating devices, passing information on customers, products, markets, etc., up and across the organization, in the same way that goals and strategies are passed down. Job security Top down and bottom up approach is the familiar phrase these days. Further, meeting regularly in small groups, they define and brain storm emerging problems when the built-in evaluation and feedback mechanisms show that something is not working. Reasonable job security is important element in getting the team concept to work. The overriding rule is people are more willing to take risks, to innovate and to learn new skills if they know they will not be out of work for creativity. The Japanese have proved this with their long range vision and their full employment policies. At the plant level as the famous Hawthorne Studies have shown, it is probable that the increased interest shown by management in the workers will result in considerable gains in productivity. Whether this is substantial or not will probably depend on how well basic security needs are met and initiative is rewarded. Future By encouraging innovation, decentralization of authority and responsibility at the lowest possible level, business can create a new class of business leaders who may hold the key to the future. However, for these new leaders to emerge the present business leaders must focus on employee involvement rather than power and control and give people fresh ideas and greater control. Also, restructuring offers a unique opportunity to do more than assign names to project and also does not mean having to lose your key talent. Today it is said that adjusting to the new economy is like changing tyres on a massive 747 in the middle of landing. So it is the challenge of the future for our private sector to develop a core of business leaders who can provide leadership to manage the region’s explosive growth and the challenges thrown up as a result of globalization and also to respond effectively to those challenges the private sector will require the support of a determined and disciplined government and a mature society.