Free Essay

Sri Lanka News Bulletin - March 2016

In: Business and Management

Submitted By roshaanr
Words 4890
Pages 20
M ont hly Bullet in: M arc h 2 0 1 6

In Economic news:

• Sri Lanka to borrow another USD 3bn as govt runs out of options to bridge fiscal deficit.
• Taxes galore as govt struggles to make ends meet.
• Sri Lanka hit by Fitch downgrade and S&P lowering of outlook.
• Sri Lankan economy grows a slow 4.8% in 2015.
• Minimum wages for private sector workers comes into effect.
• Port City back on, its official.
• Sri Lanka happier in 2015, rises to 117th in the Happiness Index.
• Inflation rises 1.7% YoY in February.
• Rupee in March at 142.59/146.78 vs. USD (down 0.08% MoM).
• Stock market closes at 6,071.88 in March (-11.9% YTD).

In Business news:
• Tourist arrivals up 19.4% YoY in Feb 2016 to 197,697 as China replaces India as the premier tourist sourcing location.

In Consumer news:
• Nielsen consumer confidence index falls to 65 (-5 pts MoM).

• Vehicle registrations falls 25.4% YoY in Feb 2016.
• Tea production drops to 22.9m kgs in Feb 2016.
• CPC continues to make losses but LIOC rakes in mega profits; as Sri Lankan
Airlines’ going concern nose dives.
• Business sentiment index at 16 month low, 138 in Feb 2016.(-13 pts MoM).

• Prima wheat flour prices increased. • Nestlé launches “out of home’ beverage provider.
• Body Shop comes to Sri

M ont hly Bullet in: M arc h 2 0 1 6

In Economic news:
Sri Lanka to borrow another USD 3bn as govt runs out of options to bridge fiscal deficit. The

Central Bank of Sri Lanka (CBSL) is to issue sovereign bonds of about
USD 3bn in the international capital markets, as the government attempts to bring a worsening fiscal situation under control.

obligations falling due in 2016.
Issuing a statement CBSL says “The issuances in single or multiple tranches would be in US dollar and Chinese Renminbi (Panda/Dim
Sum) with a fixed coupon and medium to long term maturities where non-resident investors will be eligible to invest at the primary issuance.”
These funds are in addition to the government trying to obtain
USD 1.5bn from the International Monetary Fund (IMF) to avert a possible balance of payment crisis. It was only in late last year that the new government raised USD 2.15bn to pay off loan obligations and meet recurring expenses.

Summary of the budget (








Sri Lanka is impacted by a widening fiscal deficit caused by spiraling public sector wages, discovery of about Rs.1.1 trillion in unpaid bills and low tax revenue. Thus increasing reliance on debt to meet such expenses, and also to also pay down almost USD 4bn of loan


Total revenue and grants


Total expenditure

Budget deficit



Budget deficit as a % GDP

Source: Ministry of Finance and Gradient Alliance Analysis

Taxes galore as govt. struggles to make ends meet. In April 2016 the government is likely to increase Value

260bn and SriLankan Airlines Rs. 211bn.

A dire situation was made worse by the discovery of about
Rs.1.1 trillion in unpaid bills at state-owned entities, which were supposedly accumulated during the previous government.

According to Mr. Anushka Wijesinha, Chief Economist of the Ceylon
Chamber of Commerce, “The government is responding to an urgent revenue need. But ad hoc tax policy changes like these will hurt investor sentiment. The credibility of the Budget is lost.”

Added Tax (VAT), re-impose Capital Gains Tax (CGT), and double
Nation Building Tax (NBT) to boost state coffers.

Mr. Ranil Wickramasinghe, Prime Minister, noted that VAT would be increased to 15% from 11%, while CGT will be reintroduced.
The VAT increase is not imposed on electricity bills and essential goods. Previously VAT exempt sectors, telecoms, private education and the health sector are now liable. He further noted;
• The government now owes Rs. 9.5 trillion (USD 65.6bn) or 74.9% of GDP. The former regime had not included Rs. 1.04 trillion.
• Rs. 1.21 trillion debts to be paid this year.
• CPC is in Rs. 365bn of debt, Sri Lanka Ports Authority owes Rs.

• Sri Lanka Transport Board has failed to pay Rs. 23bn of provident funds while state departments and ministries have tacked up debt of Rs. 58.4bn. The Highways Ministry alone is Rs. 24 bn in debt.

On CGT, Vajira Kulatilaka, Chairman, CSE told the Daily FT
• People will definitely have a negative perception of this and that impact is going to be larger than the real impact of the tax and how much people will be taxed due to this,”
• “It was quite a surprise for us actually. They should not keep us in the dark and we cannot expect the CSE to calm down and trade as they are already distressed with the way markets are behaving. They should have also publicised the rates and the duration for which capital gains will be taxed.”

M ont hly Bullet in: M arc h 2 0 1 6

In Economic news:
Sri Lankan economy grows a slow 4.8% in 2015.

According to the Department of Census and Statistics the economy grew 4.8% year over year (YoY) in 2015.


Perhaps more significantly GDP in the fourth quarter of 2015 increased a paltry 2.5% YoY (vs. 9.9% in 4Q14) as tepid growth in services (+2.7% YoY) and industries (+1.9% YoY) offset a continuing decline in agriculture (-0.5% YoY).
For the full year 2015, the services sector (~62% of GDP) grew 5.3%
YoY driven by (i) Wholesale and retail trade, (ii) Transportation of






Agriculture, Forestry and Fishing GDP YoY%
Services GDP YoY%


Industries GDP YoY%

Source: Department of Census and Planning

paddy farmers, Rs.4bn to vegetable farmers and about Rs.2bn to tea and rubber farmers.

Gross Domestic Product of Sri Lanka






















GDP (Rs. m)
GDP YoY% Source: Department of Census and Planning

Significantly Accommodation, Food and beverage service activities, a wide barometer for tourism sector (domestic and foreign) declined 1.3% YoY.
Meanwhile industries (~26% of GDP) grew 3.0% YoY (vs.3.5% YoY in 2014) driven by Manufacture of food, beverages & Tobacco products offsetting a 0.9% YoY decline in construction.
Agriculture sector in 2015 grew 5.5% YoY (vs. 4.9% YoY in 2015) with rice and vegetable production increasing 23.3% YoY and 24.9%
YoY offsetting a 1.5% YoY decline in Marine fishing and Marine
























goods and passengers including Warehousing and (iii) Financial
Service activities and auxiliary financial services.



Agriculture, Forestry and Fishing
Services Source: Department of Census and Planning







Agriculture, Forestry and Fishing GDP per sector worker (Rs.)
Industries GDP per sector worker (Rs.)
Services GDP per sector worker (Rs.)
GDP per worker (Rs.) Source: Department of Census and Planning

Agriculture sector’s contribution to GDP continued to decline and is now is only 7.9% of GDP with GDP per agriculture sector worker persistently underperforming the national average. In 2016 as fertiliser subsidies the government will provide over Rs.37bn to


M ont hly Bullet in: M arc h 2 0 1 6

In Economic news:

Sri Lanka hit by double whammy as Fitch downgrades country rating and S&P lowers outlook. Fitch Ratings downgraded Sri Lanka’s Long-Term

Foreign- and Local-Currency Issuer Default Ratings (IDRs) to ‘B+’ from ‘BB-‘. A Negative Outlook is now assigned to the IDRs.
It cited country’s increased refinancing risks on account of high upcoming external debt maturities and a strained sovereign’s external liquidity position reflecting pressure on foreign exchange reserves. Moreover, Standard & Poor’s (S&P) lowered the outlook on Sri Lanka’s
‘B+’ long-term sovereign credit rating to “Negative” from “Stable” noting increasing fiscal imbalances and external challenges.
The CBSL governor, Mr. Arjuna Mahendran hopes the rating agencies’ negative view on Sri Lanka’s credit rating would change after negotiations this month over a USD 1.5bn IMF loan.
He notes “With the Government’s negotiation with the IMF, and once we have a programme for fiscal consolidation, these rating agencies will take a different point of view”.

National Minimum wages for private sector workers comes into effect. The government enacted

the National Minimum Wage of Workers Bill and Budgetary Relief
Allowance of Workers Bill setting the minimum monthly national wage at Rs. 10,000.
Moreover, the bill requires payment of Rs.1,500 per month as a budgetary relief allowance for trades and industries’ workers earning less than Rs.40,000 per month. A further Rs.1,000 has been made necessary for those receiving the budgetary relief allowance. According to the Employers’ Federation of Ceylon (EFC) Director
General Kanishka Weerasinghe, “In relation to the National
Minimum Wage Bill, we have always maintained the position that such interventions should be made after a careful study.
The EFC is not opposed to having national or industry-based minimum wage rates, but ideally we would like to see such rates linked to productivity. We also hope that these mechanisms are used only when it is essential and not based on political decisions.”


M ont hly Bullet in: M a rc h 2 0 1 6

In Economic news:
Port City back on, its official.

The government officially informed the CHEC Port City Colombo of its ability to resume construction of the Port City. The USD 1.4bn project has been suspended since March 2015 following accusations of non compliance to regulations and lack of a detailed environmental assessment. suspension affected ….is hereby withdrawn …”
The USD 1.4bn Colombo Port City is to be constructed between the Southern edge of the new Colombo South Port and the Fort
Lighthouse, slated to cover 269 hectares. The project includes a marina and yacht club, a central boulevard, a sea view apartment complex and a five-star hotel, shopping and entertainment centre, office space, a mini golf course, and many other modern facilities.
A Supplementary Environmental Impact Report (SEIA) for the
Colombo Port City was prepared covering a wider scope including environmental concerns.
According to Prime Minister Ranil Wickremesinghe Sri Lanka would have a “unique financial and business district” in Colombo when the
Port City resumed work.

According to a letter issued by the Ministry of Ports and Shipping “At its meeting held on 9 March, the Cabinet of Ministers has granted approval for the project to resume immediately. Accordingly the

Construction company, China Communications Construction
Company, estimated that the suspension to result in losses of more than USD 380,000 a day and sought permission from the Government to build a protective breakwater to maintain the already-reclaimed land. Sri Lankans happier than before, but compared to peers still relatively sad. Despite climbing 15 places to 117

in the 2016 World Happiness Report, the country’s position among
157 countries still says Sri Lankans are not an overly happy bunch.
The World’s Happiness Report is compiled by a group of international academics on GDP per capita, social support, healthy life expectancy, freedom to make life choices, generosity and perceptions of corruption. In South Asia, Sri Lanka was only ahead of India (118th) but well behind Bhutan (84th), Pakistan (92nd), Nepal (107th) and Bangladesh
(110th). As in most social indices Denmark topped the list followed by Switzerland, Iceland, Norway and Finland. Burundi was the least happy country.


M ont hly Bullet in: M arc h 2 0 1 6

In Economic news:
Trade deficit in 2015 expands to USD 8.4bn.
(+1.7% YoY). Exports in 2015 contracted 5.6% YoY to USD
10.5bn with imports also declining 2.5% YoY to USD 18.9bn.

Trade (USD Million)


Trade Deficit



also reduced, USD 2.3bn (-1.3% YoY)




Source: CBSL





• Investment goods imports were USD 4.5bn, up 10.0% YoY.
Imports of machinary and equipment were up (USD 2.3bn,+6.9%
YoY), building materials were USD 1.4bn (+3.3% YoY) and transport equipment were USD 930.9m (+31.6% YoY).

The resulting trade deficit was partly financed by USD 6.9bn
(-0.5% YoY) of worker remittances and USD 2.9bn from tourism earnings (+22.6% YoY). In 2015;

In a bid to grow exports, the Commonwealth Secretariat is engaged in enhancing export finance opportunities and developing the initial concept work for setting up an EXIM Bank for Sri Lanka.

• Agriculture exports (~22% of exports) were USD 2.4bn down
11.2% YoY as tea exports declined to USD 1.3bn (-17.7% YoY) due to political unrest in main Middle East markets and sea food exports reduced to USD 163.1m (-35.5% YoY) on EU export ban.

According to Dr. Rashmi Banga, Head of Trade Competitiveness,
Commonwealth Secretariat “Commonwealth Offices in London have given the first EXIM Bank concept paper to the Government of Sri Lanka and we are now ready to give technical assistance to

However spices exports had a remarkable year, rising to USD
377.4m, up 42.7% YoY.
• Industrial exports (~77% of exports) were USD 8.0bn down 3.5%
YoY as garments exports were only USD 4.5bn (-2.7% YoY) and rubber product exports dropped to USD761.2m (-14.5% YoY).

Exports (% of GDP)


• Consumer goods imports (~18% of imports) were USD 4.7bn, up 22.3% YoY, driven by motor vehicles (USD 1.4bn, +51.6% YoY), medical and pharmaceuticals (USD 459.8m, +20.8% YoY) and surprisingly vegetables (USD 396.4m, +39.6% YoY).
• Intermediate goods imports (~59% of imports) were USD 9.6bn, down 15.4% YoY, benefitting from lower global oil prices causing fuel imports to reduce to USD 2.7bn (-41.3% YoY). Textile imports


Source: CBSL






set it up.”


M ont hly Bullet in: M arc h 2 0 1 6

In Economic news:
Rupee ended March 2016 at 142.59/146.78
(down 0.08YoY%). Fiscal woes, foreign selling and lack of

Inflation at 1.7% YoY in February 2016. The national

India approved a USD 700m currency swap of dollars for Sri Lankan rupees until Sri Lanka receives an IMF loan. Also, SL is looking at a
USD 1.0bn worth currency swap agreement with China.

The change in the NCPI measured on an annual average basis decreased to 2.6% in February 2016 from 2.9% in January 2016.

policy direction caused the rupee to breach Rs.150 mark for the first time in history.

consumer price index (NCPI) in February rose 1.7% YoY. Year on year inflation of Food Group increased from -0.2% in January 2016 to 0.8% in February 2016 while Non-food Group increased 2.0% to
4.6% during this period.

LKR/USD Exchange Rate











J-15 F-15 M-15 A-15 M-15 J-15 J-15 A-15 S-15 O-15 N-15 D-15 J-16 F-16 M-16
Mid point (LKR per USD)


F-15 M-15 A-15 M-15 J-15

J-15 A-15 S-15 O-15 N-15 D-15 J-16






Inflation YoY%





Bid- ask spread (LKR per USD)

Source: CBSL

All Share Price Index




Source: CBSL

Stock market closes at 6,071.88, down 1.9%
MoM,-11.9% YTD. Best performing sectors in the month were stores & supplies (+8.6% MoM), footwear & textiles (+3.8%
MoM) and land & property (+0.6% MoM). Worst performing sectors in the month were services (-8.8% MoM), closed end funds
(-6.5% MoM) and trading (-6.2% MoM).


Source: CSE


For your fresh fruit requirements:
Mangoes (Karuthakolumban), Cashew Nuts, Pineapples
– free delivery within city limits

Coconuts – free weekly delivery to restaurants/caterers/hotels +94777508323 7

M ont hly Bullet in: M arc h 2 0 1 6

In Business news:
America traffic was
8,372 (+24.0% YoY).
• Middle East arrivals increased 4.8% YoY to

ln tourism news:

The Sri Lanka
Tourism Promotions
Bureau (SLTPB) is to spend Rs.3.4bn for marketing activities in
According to Mr.
Director, SLTPB,

Tourist arrivals up 19.4% YoY in Feb 2016. Tourist

arrivals in Feb 2016 was 197,697 up 19.4% YoY, as China replaced
India as the premier tourist source location. According to Sri
Lanka Tourism Development Authority,
• Indian arrivals were 26,559 (+32.8% YoY).
• Western Europe: U.K: 19,194 (+26.2% YoY), Germany: 14,426
(+10.5% YoY) and France: 14,602 (+14.6% YoY).
• China and Hong Kong 32,186 (+17.4% YoY).
• Russian arrivals increased 2.5% YoY to 6,958 while North
Tourist Arrivals '000'

“We are planning on spending Rs.200m on digital marketing and thinking of which platforms we should work on because in different countries their preferences are different.
We are not planning to do TV advertising because it’s very expensive and we still have balance payments to be made for advertisements we did last time.”
SLTPB is to spend Rs.1.5bn on country specific marketing which includes up to 22 countries. The top five countries which will get the bulk of the exposure from proposed promotions include
China, India, UK, France and the Middle Eastern countries. Rs.
800m would be allocated for these countries.
• Shangri-La is to open a Resort & Spa in Hambantota in June
2016. The 300-room Shangri-La Hambantota Resort & Spa spans
145 acres and will feature tropical gardens, an 18-hole golf course, an artisan village and an array of dining, event and entertainment options. • ZEN Rooms (powered by Rocket Internet) is to open operations in Thailand, Singapore, Sri Lanka and Philippines. ZEN Rooms will offer rooms from at USD 21 in Colombo, Kandy and DehiwalaMount Lavinia.









Source: Sri Lanka Tourism Development Authority






M ont hly Bullet in: M arc h 2 0 1 6

In Business news:
Vehicle registrations falls 25.4% YoY in Feb
2016. According to JB Securities total vehicle registrations fell to 31,330, -25.4% YoY. In February

600,000 and 70% LTV rule has increased the initial down payment to LKR 180,000 – a sum too large for most buyers. Many buyers view it as both a consumption and production asset, i.e. partly for their own use and partly to be used for hires to generate sufficient income to pay the monthly lease.”
• Motorcycle registrations were 21,487 (-14.6% YoY). “Hero market share declined from over 30% to 16.5%, Bajaj had regained its share to 34.1% in the month recovering from the mid-20s during the latter part of the year. Financing share increased to 60.2% one of the highest levels in the last 24 months.”
• Total truck registrations were 1,722 (-28.1% YoY). “In mini trucks
Tata the market leader recorded a share of 69.3% on lower volumes whilst Mahindra commanded a share of 26.6% a decline over 2015. Financing share remained a high 90.8%.”

Motor Vehicle Registrations (New/Used)

• Motorcar registrations were 2,897 (-30.0% YoY). “Brand new car regs. were 1,066 units (1,920 units in Feb 2015) with 523 Maruti units. Pre-owned car regs. were 1,831 units (2,218 in Feb 2015) while 37 premium cars were registered (104 in Feb 2015). Electric cars regs. were 155 units (13 units in Feb 2015), including 147
Nissan Leafs units and 2 Tesla Model S’.”


• 3 wheeler registrations were down to 2,990 (-62.7% YoY). “The combination of higher tariffs that increased the price to LKR

CPC continues to make losses but LIOC rakes in mega profits; as Sri Lankan Airlines’ going concern nose dives. According to Mr. Chandima
Weerakkody, Petroleum Minster, Ceylon Petroleum Corporation
(CPC) losses during January to November 2015 amounted to
Rs.13.2bn and that the marginal profit of Rs.17.13 per litre of diesel is not sufficient to cover this. Petrol is sold at cost.
He noted that “That is because same taxes are applied for CPC and Lanka IOC (LIOC). Only variation would be different purchase prices. CPC is importing oil based on Singapore Platts prices and in December, the price of a barrel of diesel was USD 48.80.
One diesel litre is about Rs. 44.00 at the point of unloading and
Rs.15.13 added as taxes while another 18.20 added as domestic charges”. However LIOC, a unit of Indian Oil Company, controlling about
20% of the Sri Lankan market generated a profit of Rs. 882 million during September to December 2015 from lower sales costs, up


M-15 A-15


Motor Cars, SUVs and Vans






O-15 N-15 D-15




Source: JB Securities

a staggering 45% YoY from revenue of Rs.18.1bn which fell 11%
YoY. However, in the nine months to December 2015 profits at
LIOC, fell 77% to Rs.680m.
It was revealed accumulated losses at SriLankan Airlines to March
2015 is a staggering Rs.128bn with outstanding debt amounting to
Tourist Arrivals appears to have continued
Rs.76bn. Despite such losses recruitment'000'
30% unabated with staff now numbering 6,987 up from 4,614 in 2009.
It is believed most were done through political recommendations.


According to Mr. Ranil Wickramasinghe, “SriLankan Airlines will
15% not 1,000 able to repay this debt (USD 1bn). We will have to take a be 800 decision on this.”


Moreover it was revealed that the USD 2.3bn deal signed by the previous government to purchase six 2014
A330-300s, four0%A350s
2015 and three additional A350s on lease delivery was expensive and

negotiated at a rate much higher than prevailing in the market.


M ont hly Bullet in: M arc h 2 0 1 6

In Business news:
Tea production drops to 22.9m kgs in Feb
2016. According to Forbes and Walkers Tea Brokers tea production in February 2016 fell to 22.9m kgs (-10.0% YoY), impacted by go-slow action of trade union workers and dry
Sri Lanka Tea Production and Exports
Tea Production (m kgs)


Tea Exports (m kgs)


Jul 14 Aug










Jun Jul 15 Aug







Source: Sri Lanka Tea Board

weather conditions.

A new wage structure is yet to be implemented as most trade unions are opposing a productivity based compensation package which the companies are insisting. Employees are demanding a daily wage of Rs.1,000 which employers say is

not affordable. Daily plucking averages in Sri Lanka is around
18kg per worker, while India’s average is close to 30kg and in
Kenya about 48kg.
In February, tea exports were 23.6m kgs, down 2.2% YoY as the country’s main markets in the Middle East continue to experience political unrest.

expect economic conditions to deteriorate in the medium term, whereas only 36% were as pessimistic in the prior month, with one businessperson remarking that “there does not seem to be any improvement in the economy, currently.”

LMD-Nielsen Business Confidence Index

J-14 A-14 S-14 O-14 N-14 D-14 J-15 F-15 M-15 A-15 M-15 J-15 J-15 A-15 S-15 O-15 N-15 D-15 J-16 F-16

Source: LMD

Business Confidence Index falls to 138, a 16 month low. Dropping a staggering 13 points MoM, the
LMD-Nielsen Business Confidence Index (BCI) reached 138 in
February 2016. According to Mr. Shaheen Cader ““concerns about the economy have continued to increase, along with future business prospects, causing a drop in the index. In this regard, some respondents have mentioned that plans for development and economic growth have yet to be actioned.”
THE ECONOMY: Less then 33% say the economy ‘will improve’ in the coming 12 months, compared to the 44% in January. 54%

BIZ PROSPECTS: Almost 33% (versus 29%, in January) expect sales volumes to remain as is in the next 12 months, while 52% continue to anticipate an improvement and a further 16% say biz prospects are likely to ‘get worse’ during this period.
A businessperson spoken to by the pollsters also remarks that “it seems as if the purchasing power of consumers will go down, which will affect our business.”
INVESTMENT: 44% view the current investment climate in a positive light – but this does mark an improvement in sentiment, compared to the previous month, when only 26% of BCI respondents were as enthusiastic.
In the words of one poll participant, “the current and future investment climate in the country seems very positive, due to the
Government’s foreign policy which will open up foreign markets for us.”

M ont hly Bullet in: M arc h 2 0 1 6

In Consumer news:
Prima wheat flour increased.

An increase in the import levy of wheat grain caused price of prima wheat flour to rise to Rs.97.20 from Rs.90.00. Finance Minister, Ravi
Karunanayake states that the decision of reducing import tax relief on wheat flour has been taken as a measure to safeguard the local paddy farmers.
Subsequently the price of a loaf of bread (450g) was increased by Rs.4 by the Bakery Owners’ Association.
Nestlé launches “out of home’ beverage provider. Nestlé
Professional, Nestlé’s ‘Out-of-Home’ food and beverage solutions provider, launched Sri Lanka’s first ever proprietary cool beverage dispenser made with advanced smart technology, NESTLÉ COOLPRO. This machine has been designed specifically for the Out-of-Home market such as restaurants, hotels and food chains, to help them make cold beverages. Body Shop comes to Sri Lanka. World renowed cosmetics company Body Shop, opened an outlet in Sri Lanka.
Known as the first cosmetics brand to be recognised under the Humane Cosmetics standard for their “Against Animal
Testing” policy.
Softlogic group holds the franchise for the new store.
According to Mr. Ashok Pathirage, CEO of Softlogic Group said,
“We are thrilled to associate with The Body Shop. In The Body
Shop, we have found our kindred spirit: thanks to the synergy of our values, vision and culture, we will have the opportunity to greatly accelerate the business in Sri Lanka.”

Nielsen consumer confidence declines further to 65 in February (-5 bps).

Nielsen Consumer Confidence Index

Source: LMD


Gradient Alliance
Helping to shape your Business

We are a management consultancy and financial advisory services provider.
Combining experience and comprehensive capabilities across many industries and business functions, we work with clients to achieve a higher level of excellence.
We carry out company and market research, develop company valuations and competitor analyses. Moreover we conduct market surveys, feasibility studies and construct business plans.

Mo n t h l y B u l l e t i n : March 2016

4A, Deal Place A,
Colombo 03
Sri Lanka
M: + 94 773 619800
P: + 94 11 5786787


Similar Documents

Premium Essay

Entrepreneurs in Sri Lanka

...for it to sell its games at a nominal price, therefore increasing its sales. Social: The social factors that influence the video game industry are population demographics, income distribution, lifestyle changes, social mobility, attributes to work, consumerism, level of education and consumer behaviour. Nintendo’s action to open the World of Nintendo showrooms was to attract and influence customers and show interest towards fulfilling the customers' needs. Also, games have an influence to the culture of people, bring aggression in children, etc all which have an impact on the industry. Technological: The role of technology is vital in this industry as it focuses on technological efforts for competitive advantage. Every new development uses new technology. Though there are restricted innovations in the gaming industry, the speed of technological transfer is very high. Nintendo’s role from playing cards to toys to video games and then with each console introduced, included many technological changes. Technological upgradation increased hardware costs and discouraged innovation. The online capability of Nintendo Wii was a major change in the technology of the video game industry. Environmental: The video game industry uses a lot of plastic resources. Playing games on television or computers does consume a lot of power. Nintendo therefore see to it that their games utilise low power. On the other hand protecting the environment and practicing a “green” lifestyle......

Words: 2936 - Pages: 12

Free Essay

Kinh Tế Sri Lanka

...1. Hệ thống kinh tế - Kinh tế Sri Lanka theo cơ chế nền kinh tế thị trường - Kinh tế nhiều thành phần: 2. Cơ cấu ngành 1. Cơ cấu ngành: Nông lâm ngư nghiệp: chiếm khoảng 12%, Công nghiệp: chiếm khoảng 28.5% GDP, Dịch vụ: khoảng 59.5% 2. Hiện trạng của một số ngành nội bộ ➢ Nông, lâm, ngư nghiệp: Ngành nông nghiệp chiểm tỉ trọng 12% trong cơ cấu GDP, 25% trong tổng số kim ngạch xuất khẩu và 30% trong nguồn lao động năm 2010. Sản phẩm chủ yếu: gạo, mía đường, ngũ cốc, hạt có dầu, gia vị, rau quả, chè, cao su… Nông nghiệp: Ba cây xuất khẩu chính truyền thống của Sri Lanka là chè, cao su và dừa. Thủy sản : Sri Lanka có tiềm năng đáng kể về thủy sản biển khơi, thủy sản nội địa và thủy sản nuôi trồng Chăn nuôi: Ngành chăn nuôi bao gồm chủ yếu là sữa và gia cầm.Tính đến năm 2009, sản xuất sữa ở địa phương bao gồm 33% nguồn tiêu thụ quốc gia.  ➢ Công nghiệp: Bao gồm bốn lĩnh vực chính: Công nghiệp khai khoáng,Sản xuất (tức là chế biến các sản phẩm nông nghiệp, công nghiệp…),Năng lượng (Điện, khí đốt và nước), Xây dựng Về công nghiệp khai khoáng: Sri Lanka được trời phú với nhiều loại khoáng sản: Đá quý,Dầu thô Về lĩnh vực chế biến: Thực phẩm, đồ uống, và thuốc lá, Dệt may, may mặc, da, hóa chất, dầu khí, cao su, và các sản phẩm nhựa. Về lĩnh vực xây dựng: Ngành công nghiệp xây dựng đã ghi nhận mức tăng trưởng 9,3% cùng với tăng trưởng kinh tế 8% của Sri Lanka trong năm 2010. Về lĩnh vực năng lượng: ➢ Dịch......

Words: 372 - Pages: 2

Premium Essay

Cinnamon Bey in Sri Lanka

...Exotic Oases beckons in new 5-star resort down South The newly launched five star resort , Cinnamon Bey, is the latest addition to the John Keells Hotel’s group under the umbrella of Cinnamon Hotels & Resorts . The hotel is the very first of its kind to offer an exotic private oases on the Golden Strip down south in Beruwala when it opens its door in October. (???when) The two hundred rooms located in sprawling ten acres was designed by master architect, Mr. Channa Daswatte. He had the intention to infuse the culture and influence of the pioneering Arab traders whose vessels inextricably linked this island nation to West Asia, North Africa, Morocco and the Persian Gulf in the tenth century. From the Mughal inspired bedrooms, Moroccan influenced Zillij terracotta tile work to the intricate Mashrabiya carved wood lattice are all works of art that speak of understated grandeur and contemporary comforts. The culmination of unique design elements and the myriad of influences extend unrestrained throughout the resort. These designs that are symptomatic of Islamic architecture, encapsulates the essence of cinnamon, the spice which was extensively traded across Sri Lanka’s shores. “Comfort, creativity and discovery are ingrained into the properties. The comfort is more than evident within the rooms, all of which are spacious and equipped with all requisites of the five star milieu” Mr. Daswatte explained.. Completely secluded from the main resort is the VIP wing...

Words: 392 - Pages: 2

Premium Essay

Law and Language Aspects of Language Conflict in Sri Lanka

...The Sri Lankan Civil War is one of the longest and bloodiest civil wars ever. It went on for more than 30 years and ended only after LTTE was defeated in 2009, after a full-on attack by Sri Lankan forces. The ethnic conflict in Sri Lanka has many root causes and consequences that are closely interlinked. But the main reason for this terribly prolonged war was the domination of the Sinhalese majority over the Tamil speaking minority. Sinhalese were pressing for such a dominant position for their language that the Tamils felt alienated and subordinated. The Sinhalese followed a systemic method of depriving the Tamils of their education, jobs etc. The Tamils saw a rapid deterioration in their living standards. This raised resentment among the Tamils and they started demanding parity of status for their own language. Through the course of my Research Paper I will be mainly looking into the linguistic aspects of the Sri Lankan Civil War. I will also look into the role law plays in times of such conflict. For example the 1956 Sinhala Only Act increased the animosity between the communities. I also try dealing with many other questions such as - Why does multi-lingualism become a problem? Why does language become the object for social and political conflict? Can two or more languages co-exist in a society? The war may be over in Sri Lanka but it is imperative to look into the issues behind the conflict. Every country (especially India with its diverse population) should take a......

Words: 2161 - Pages: 9

Premium Essay

Corporate Governance in Sri Lanka

...Unfortunately, is the management prepared to disclose all the sensitive matter to investors which they know it will affect the investors to make some decision in investment? This would be one of the aspects in corporate governance. Good corporate governance practices are not a new phenomenon in the world although recent collapses of several companies which were considered successful, have emphasized the need for good business practices and governance structures. These structures and processes are especially important for the success of business as it brings in better risk management practices through enhanced accountability and transparency. It also promotes the development of the community, the economy of the country and ensures a better relationship between the company, its shareholders, employees and the community. Throughout this assignment we had planned to gather a broader knowledge about the Corporate governance best practices which can be implemented in Sri Lankan context and to had take Two major companies in Sri Lanka to examine there Corporate governance best practices and to check whether those practices are comply with the best practices which are introduced by Institute of Chartered Accountants of Sri Lanka. Best Practices on Corporate Governance and Their Importance 1. Developing a Compliance Mentality As the executive director, or chief executive officer, of a company, you have the responsibility to your shareholders, creditors and to the public to......

Words: 6667 - Pages: 27

Free Essay

Passion Fruit Industry in Sri Lanka

...Case study 2 Sri Lanka Cargills Ceylon Ltd Total cost: Financier Year of initiation: NA Private company 2001 2010-2015, Possible partner under the IFAD-supported National Agribusiness Development Programme (NADeP) Relational chain, buyer-driven Value chain approach: Background. Cargills Ceylon Ltd (Cargills) is a supermarket chain called Food City in Sri Lanka. It has improved the efficiency of its operations by purchasing directly from producers, increasing the efficiency in the chain, thereby increasing its own income as well as the price paid to smallholders. Its intervention in the passion fruit chain provides an example of how Cargills improved the efficiency of the chain resulting in considerable benefits to the producers and increased sales of passion fruit through its retail outlets. In a normal fruit and vegetable chain in Sri Lanka (see Figure 11) there are many actors who usually tend to act in their best interests rather than operating as a coordinated chain, resulting in high operating costs. Some 30% of the market value accrues to the middlemen, post-harvest losses amount to about 40% and only around 30% of the final value accrues to the producer. Figure 1: Conventional supply chain for fruits and vegetables (SL/kg) In the generic chain there are many problems. Usually low quality planting material is used. In addition, premature harvesting and poor post-harvest practices contribute to inferior product quality entering the markets. Fresh produce is......

Words: 1253 - Pages: 6

Premium Essay

Solar Energy - a Presentation at the Insttution of Engineers Sri Lanka

... Customers with large generators being paid SLRs. 21.15 per unit for generating their own power . News two days before! Copper indium gallium (di)selenide (CIGS) verified by NREL to be as efficient as 14.6% in 2006, NANOSOLAR POWERSHEET THE NEW DAWN OF SOLAR Solar cell Price and production 2009=6700 MW 1234567 ON AVERAGE AROUND THE WORLD, SUNLIGHT DELIVERS A BARREL OF OIL OF ENERGY ON EVERY SQUARE METER OF LAND EVERY YEAR Incoming solar energy to Earth Sri Lanka gets at 6 kWh/m2/day 7000kWh/year Colombo Efficiency (Lumens/Watt) Kerosene Incandescent Bulb Light Emitting Diode (LED) .03 5-18 25-50 Rated Life (Hours) Supply of Kerosene 1000 50,000 Cost per 50,000 hours $1251 $175 $20 Buy power during the night CEB TARIFF Domestic effective from Nov 2008 Fuel Adjustment Charge 30% on all unit charges except DP & RP consumers consuming less than 90 units per month Residential tiered tariff 30.00X1.3=Rs39 25.00X1.3=Rs32.50 16.00X1.3=Rs20.80 Rs7.50 Rs4.70 Rs3.00 Rs 39 Rs39/kWh Technology transfer to rural Sri Lanka . . Annual Savings Before and After . 10000 . 8000 6000 4000 2000 . 20 0 0 1 2 3 4 5 Years 3 Accumulated Net Savings . RS 8000 6000 4000 2000 20 . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 YEAR How Storage will Help Smoothing of Out Put 1 2 3 4 5 6 7 8 9 101 Conversion......

Words: 1771 - Pages: 8

Free Essay

Sri Lanka

...Sri Lanka and its Caste Systems Outline Title: Sri Lanka and its Caste Systems Thesis: A vital part of the Sri Lankan culture is its caste systems. Introduction Paragraph Thesis - A vital part of the Sri Lankan culture is its caste systems. Sub Topic - What is a caste or caste system? A caste system is a system of which label a person’s ranking at birth based on a _____ scale. Sub Topic - How many caste systems are there in Sri Lanka? There are several caste systems in Sri Lanka, but the two most ones are the _____ and the _____ caste systems. Paragraph #1 Topic sentence – What are the different castes? There are ___ different castes: ____, _____, _____, _____…. Sub Topic – How is a person’s caste determined? A person’s caste is given to them at the moment of their birth. Their caste is decided considering _______________________. Sub Topic - What are the differences between the two most used caste systems? Paragraph #2 Topic Sentence – How is the caste system different from social class? Social class is determined by a person’s financial situation, job position, and education, and can change if any changes occur to the person’s financial situation, reputation, job position, etc. The difference social class has to a caste is ________________________. Sub topic - How are people with lower castes treated in comparison to people with higher castes? ...

Words: 912 - Pages: 4

Free Essay

You Are Here Home Lalith de Silva to Lead Sri Lanka Telecom as Its New Group Ceo

...Sri Lanka Telecom, the national telecommunications provider, proudly announces the appo­intment of Mr. Lalith De Silva as the new Group Chief Executive Officer with effect from 7th February 2013. De Silva’s position as the Group CEO will see him overlooking the SLT Group Companies excluding Mobitel (Pvt) Ltd. A veteran in IT & Telecommunications, Mr. De Silva has held the position of CEO of Mobitel (Pvt) Limited since 2011 and has also functioned as Director/CEO of Mobitel subsequent to Mobitel’s acquisition by SLT in 2002. He also served as an Advisor to the Chairman of SLT from 2002 to 2004 and thus possesses a deep knowledge of the group’s operations. Mr. De Silva is ideally positioned to chart the future course of one of Sri Lanka’s most valued brands going ahead. Commenting on his appointment to one of the most coveted and respected positions in Sri Lanka’s corporate sector, Mr. De Silva said: “I am delighted to serve my country as the first local CEO, post privatization in 1997, of our nation’s most trusted flagship telecommunication provider. I am committed to adding immense value in my new role to better serve my country and the ICT industry. SLT is perhaps one of the most dynamic and innovative companies in Sri Lanka and I am enthused by the challenge of taking it to the next level. The company’s 150-year-old heritage reflects its deep roots amongst the people of this nation and we hope to thank the people and our partners for their trust and loyalty by rolling......

Words: 436 - Pages: 2

Premium Essay

Sri Lanka Marketing Plan

... Boost Sri Lanka's Tourism Marketing Plan Table of Contents 1. Introduction 3 2. Planning and research 3 3. Marketing objectives 8 4. Target market 9 5. Activities and program 10 6. Timetable 12 7. Control and evaluation procedures and measures 13 8. Appendix 1 14 9. References 15 Introduction Sri Lanka is island country, which located in the Indian Ocean (CIA, 2014). It is well known as its natural beauty, cultural heritage, golden beaches, multiple wildlife, unique festivals and great people. Sri Lanka is generally known as “the pearl of the Indian ocean” it is attracting more and more international visitors including Chinese tourists to explore its natural beauty and splendid culture recent years. Despite of these all, a strong marketing campaign is required not only to stable its position in the tourist market but also for the promotion its tourist market. No doubt, this research and the marketing plan will prove to be the helpful to boost Sri Lanka’s Tourism Market by attracting Chinese market. Sri Lanka Tourism received 100,000th Chinese Tourist this year (Sri Lanka, 2014a). It will be helpful for appealing a new......

Words: 4214 - Pages: 17

Premium Essay

Cement Industry in Sri Lanka

...Industry Analysis Sri Lanka’s changing landscape with numerous projects which have enhanced and bloomed the construction industry. This will by default, increase the necessity of associated segments like the cement industry. Because cement has become one of the main and crucial ingredients which is used in these giant projects where infrastructure is being enhanced with a great scale. Post war situation of the country has result in this demand. Currently Sri Lanka has many companies or rather brands to bring the very same cement to the market at many different prices but the quality is subject to change with one brand to the other. Main suppliers for cement industry in current Sri Lankan market are as follows. 1) Tokyo Cement 2) Holcim Cement 3) Ultratech Cement Above mentioned companies are some of the companies operate in Sri Lankan market. Currently the maximum retail price of a 50 kg bag of cement is Rs. 785. This kind of market control mechanisms have been executed in the market because this market has become really very important to customers and have become a frequently required item. Sri Lanka is estimated to be consuming about 5.8 million tons of cement per annum. Sri Lanka is used to import 66 percent of its requirement either in the form of cement or clinker and it is important to note that this could go up to 75 percent. Mainly Sri Lanka imports cement from countries such as India, Vietnam, Pakistan, Malaysia, Indonesia and Thailand.......

Words: 649 - Pages: 3

Free Essay

Job Stress of Executive Level Employees: Case of Apparel Sector in Sri Lanka

...e-ISSN : 2347 - 9671, p- ISSN : 2349 - 0187 EPRA International Journal of Economic and Business Review Vol - 4, Issue- 1, January 2016 ISI Impact Factor : 1.259 (Dubai, UAE) Inno Space (SJIF) Impact Factor : 4.618(Morocco) JOB STRESS OF EXECUTIVE LEVEL EMPLOYEES: CASE OF APPAREL SECTOR IN SRI LANKA 1 Department of Human Resource Management, Faculty of Commerce and Management Studies, University of Kelaniya, Kelaniya, Sri Lanka Jayarathna, S. M. D. Y1 2 O MAS Intimates, Sri Lanka Rathnayake, L. R2 ABSTRACT ver the years,there has been a significant concentration on recognition and managing job stress as an important organizational problem. With this identification, organizations have enhanced their awareness towards this problem, as job stress contributes to a significant portion of health care cost, absenteeism, and turnover consequently reduces the employee performance and leads to productivity losses. The purpose of this study is to investigate the job stress level of executive employees. The data were collected from 88 employees of apparel sector manufacturing organizations in Sri Lanka. Data were collected through a self-administered questionnaire, which comprised of standard measures with five dimensions. They are working environment and communication, work/home conflict and social life, administration and goal achievement, problems with subordinates, and demands from subordinates and others. The level job stress of the......

Words: 2807 - Pages: 12

Free Essay

Un Intervention in Rwanda and Sri Lanka

...How has the United Nations performed as an agent of mediation and peace-brokering in ethnic conflicts? Answer with reference to the UN role in Rwanda and Sri Lanka. Dr. John O’ Brennan Founded in 1945 with lofty ambitions to advance prosperity and security in the world, the United Nations Organisation (UN) is best endowed to conduct preventive diplomacy by preventing disputes and conflicts arising from interstate and intrastate relationships. It may be argued that the UN currently possess the capability to prevent such conflicts and disputes from emerging and escalating into armed confrontation (Ododa Opiyo 2012:61). Having developed peacekeeping as a form of impartial interposition between belligerents during the Suez Crisis in 1956, the UN has continually broadened its sphere of action. The organisations first 15 years of activity entailed of 15 operations however, between 1988 and December 2012, the UN set up fifty-four such operations to restore or maintain peace. Those missions extended from “simple interposition, as in the case of UNIIMOG in 1988, to enforcement operations mandated by the UN Security Council in Resolutions 770 (1992) for the former Yugoslavia and 794 (1992) for Somalia” (Hatto 2013:497). These operations consisted of humanitarian assistance, election supervision, the repatriation of refugees, the disarmament, demobilisation and reintegration of former combatants, the restoration of a state's ability to maintain security out of respect for the rule of......

Words: 3488 - Pages: 14

Premium Essay

Sri Lanka Subcontract Gem Company

...Introduction After being designated the Sri Lankan market for our assignment we began in depth research as to what areas of their economy we could exploit. After further examination we decided upon the gem industry as we saw a lot of potential to combine with an Irish company, in this case Waterford Crystal. We chose an Irish company as a result of a rising cost base and lack of raw materials for Gems in Ireland, both of which are not a problem in Sri Lanka. By combining Waterford Crystals expertise and reputation with the natural resources of Gems in Sri Lanka, we found we could exploit the growing trends in exports of gems and jewellery which is currently worth $450million but has the potential to be a billion dollar industry in the country with Waterford Crystal to the fore. Why subcontracting in Sri Lanka? One of the key components in our research into Sri Lanka and the possibility of moving our operations to the country depended on how the operations would be structured in the Sri Lanka and also the viability of those structures. We have decided on a process where we will subcontract our operations out to a Sri Lankan company which basically means we will supply a local company with the technology and sophisticated components to manufacture our products and export them to foreign markets under our brand Waterford Crystal. However upon choosing this process of subcontracting in Sri Lanka it is important to remember that along with many advantages, there...

Words: 814 - Pages: 4

Premium Essay

Working Overview in Sri Lanka, Philippines, Indonesia

...An Overview of Working Conditions in Sportswear Factories in Indonesia, Sri Lanka & the Philippines April 2011 Introduction In the final quarter of 2010 the ITGLWF carried out research in major sportswear producer countries to examine working conditions in factories producing for multinational brands and retailers such as adidas, Dunlop, GAP, Greg Norman, Nike, Speedo, Ralph Lauren and Tommy Hilfiger (for a full list of the brands and retailers please see Annex 1). The researchers collected information on working conditions at 83 factories, comprising 18 factories in Indonesia, 17 in Sri Lanka and 47 in the Philippines. In Indonesia researchers focused on 5 key locations of sportswear production: Bekasi, Bogor, Jakarta, Serang and Tangerang. In Sri Lanka researchers examined conditions in the major sportswear producing factories, mainly located in Export Processing Zones, and in the Philippines researchers focused on the National Capital Region, Region III and Region IV-A. All of the factories covered are producing for export to the EU and North America, and many of those in the Philippines are also exporting to Japan. Collectively the 83 factories employed over 100,000 workers, the majority of whom were females under the age of 35. This report contains an executive summary of the findings, based on information collected from workers, factory management, supervisors, human resource staff and trade union officials. The research was carried out by the ITGLWF’s......

Words: 6059 - Pages: 25