By Hiran H.Senewiratne
The higher 30 per cent Corporate Tax proposed by the International Monetary Fund, to be unveiled in the upcoming 2023 budget, is likely to threaten the resilience and robust performance of the crucial export sector, especially in the case of high potential ICT services, CSE analysts warned yesterday.
The overall manufacturing export sector is taxed at a supportive 14 per cent and the IT services export sector is exempted as a special policy to boost investments, jobs and foreign exchange earnings and for tapping high growth potential, given the competence in our talent and Sri Lanka’s geographic location.
Therefore, manufacturing sector counters in the CSE will likely be affected due to the proposed 30 per cent corporate tax hike in the upcoming budget, analysts said.
The CSE began on a negative note due to heavy selling pressure noted in blue chip counters, especially Expolanka Holdings, Lanka IOC, LOLC and many other counters yesterday, stock analysts added.
Amid those developments both indices moved downwards. The All- Share Price Index went down by 304.9 points and S and P SL20 declined by 132 points. Turnover stood at Rs 3 billion with one crossing. The crossing was reported in JKH, which crossed 3.5 million shares to the tune of Rs 709 million, its shares traded at Rs 129.50.
In the retail market, seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 536 million (3.6 million shares traded), Lanka IOC Rs 319 million (1.5 million shares traded), CIC (Non Voting) Rs 170.7 million (2.5 million shares traded), ACL Cables Rs 113 million (1.2 million shares traded), Browns Investments Rs 110 million (18 million shares traded), CIC Holdings Rs 98.7 million (1.1 million shares traded) and JKH Rs 46.9 million (364,000 shares traded). During the day 91.3 million share volumes changed hands in 30000 share transactions.
CSE’s primary and secondary market transactions recorded a net inflow of foreign investments amounting to US$ 97 million during the eight months ending August 2022.
Gross official reserves stood at U$ 1.7 billion at the end of August 2022. This included the swap facility from the People’s Bank of China, equivalent to around US $ 1.4 billion, which is subject to conditionalities on usability.
Total foreign assets, which consist of gross official reserves and foreign assets of the banking sector, amounted to US$ 5.7 billion at end August 2022.
The exchange rate continued to remain stable through August 2022, following the introduction of daily permissible bands in mid-May 2022. Accordingly, during the year up to October 6, 2022, the rupee recorded a depreciation of 44.8 per cent against the US dollar.
Yesterday, as usual the Central Bank- announced US$ buying rate was Rs 359.23 and selling rate Rs 369.96.
Top agents from Kuwait visit Sri Lanka on familiarization tour
Eleven of Kuwait’s top tour operators and travel agents arrived in Sri Lanka this week on Jazeera Airways on a familiarization tour. Jazeera Airways currently operates three flights weekly to Sri Lanka connecting the leisure and labour markets. The familiarization tour was organized and sponsored by Jazeera’s General Sales Agent in Sri Lanka, Aitken Spence PLC.
The familiarization group travelled and enjoyed the highlights of Sri Lanka during their stay in Sri Lanka. Commenting on the tour, Travel agent P Mayur stated “We love the Sri Lankan people’s smile, hospitality and their humbleness” We heard lots of negative news prior to our arrival, and were wondering if we were making the right decision. However, when we came into the country, our experiences were nothing negative”. I am definitely coming back to this beautiful country to enjoy the beaches with my family and it won’t be too long” Another member of the group Sami Malik stated that “it’s amazing to see how Sri Lankan’s love and preserve their cultural values of the country. The rich history and heritage are something our clients would love to discover in Sri Lanka”
The Jazeera airlines familiarization tour concluded with an awards ceremony recognizing the airlines top agents. The event was graced by the Minister of Tourism and Land Harin Fernando and State Minister of Foreign Affairs Tharaka Balasuriya.
Jazeera airlines has good connections in the Middle East region and can contribute to the revival of tourism in Sri Lanka by connecting the middle east travellers to the country. The agent familiarization tour is expected to contribute towards promoting destination Sri Lanka. Jazeera now operates three flights per week from Kuwait to Colombo; however, the airline expects to raise its frequency of flights per week by early 2023. Jazeera Airways operates its best-in-class Airbus 320 Neo aircraft to Colombo, connecting more than 50 destinations across the continents.
Sysco LABS’ Managing Director, Shanil Fernando Emphasizes HR’s Role in Retaining Local Talent
Shanil Fernando, Co-Founder and Managing Director of Sysco LABS Sri Lanka, recently spoke at the ‘Employing Tomorrow’s HR Today: The CEO’s Perspective’ panel discussion organized by the Association of HR Professionals Sri Lanka (AHRP).Representing the ICT industry, Shanil shared his insights on retaining and developing talent, unique people initiatives at Sysco LABS, and how emerging technologies like AI are transforming HR processes.
An industry veteran with more than 25 years of experience in technology and innovation, Shanil highlighted the importance of HR’s role in transforming the workplace into a sanctuary that gives employees peace of mind to do their best work. Speaking about people challenges, he focused on the local tech industry’s current issue of attrition and emphasized the necessity for crafting a sound employee engagement and retention strategy that addresses both financial and mental well-being.
Alluding to the present economic crisis, he said: “The country’s key industries, including technology, are experiencing significant attrition at the moment. Collectively, retaining talent has become a major challenge. The primary reason for this migration is the socioeconomic impact of the current economic crisis. In order to mitigate this, the economic situation must be addressed urgently. High public taxes will also compound the problem. The government must take the necessary steps to reduce the burden put on the private sector by introducing significant reforms to non–performing State-Owned Enterprises, avoiding public funds being used to keep loss-making SOEs afloat. Privatization or listing such enterprises on the stock exchange will allow them to be scrutinized in the same manner as a well-run private company, ensuring true transparency and accountability. As organizations, what we can do is build mechanisms that insulate employees, as much as possible, from the impact of the current economic crisis. For example, if the company is at an advantage as a FOREX generator, they can share this advantage equitably with their employees.”
Shanil emphasized the importance of transforming modern-day HR professionals into strategic business partners who are creative, innovative and able to proactively deliver solutions. Elaborating on vital steps taken at Sysco LABS, to transform its people operations to be more strategic in identifying talent needs, he said: “We are a strong, culture-oriented company. The pandemic dampened our culture efforts in the last 2 years, but we’re now focused on rejuvenating this culture and HR must be a flexible change agent that works together with other business functions to enhance the workplace experience for everyone. At Sysco LABS, every associate is allocated an HR Business Partner who will support them throughout their entire journey at the company and ensure all their needs are met. This enables us to deliver a more wholesome work experience to our associates.”
Shanil also spoke about how emerging technologies like Artificial Intelligence (AI) can transform the HR function, noting that AI creates opportunities for greater efficiency and more intelligent decision-making. He suggested that HR leaders must adopt AI as it gives businesses a critical edge when gauging future talent needs and understanding how to better create a compelling people experience.
Summing up the impact of initiatives implemented at Sysco LABS, Shanil said, “Sysco LABS is impacting a Fortune 100 company and a trillion-dollar, global industry from here in Sri Lanka. Our people are our most precious resource, and we strive to make the workplace a sanctuary for all of them. We want our associates to feel supported and cared for, with our initiatives driving engagement and camaraderie reflecting that. It’s these initiatives that have enabled us to maintain a purpose-driven, world-class workspace exposing our associates to global experiences and opportunities.”
CICT pledges US$ 25,000 for sight-saving surgeries in Sri Lanka
Another group of Sri Lankans with correctable eye diseases and disorders will soon begin surgery to restore clearer vision, thanks to the latest phase of a community initiative of Colombo International Container Terminals (CICT) in partnership with the Nawaloka Hospital.CICT recently donated US$ 25,000 (Rs 9.25 million at current exchange rates) it has pledged for the project. The donation is part of CICT’s ‘C-Blue Restore Sight Project’ that the Company launched in 2015.
Nawaloka Hospital will procure, supply and utilise all the resources needed to implement the project, including providing professional medical staff, lenses, accessories, and other equipment to perform surgeries, under a Memorandum of Understanding (MoU) signed by the two organisations. The patients for these free surgeries will be selected from the waiting lists of several government hospitals in Sri Lanka, on the recommendations of the signatory organisations.
Commenting on CICT’s continuing support to this eye care programme, the Company’s General Manager – Administration and Corporate Social Responsibility Mr Grant Yang said: “The C-Blue Restore Sight Project was launched to enable access to eye care, especially for those living in impoverished conditions. The recent economic crisis in Sri Lanka has pushed many more beyond the poverty line, and often, non-emergency healthcare is one of the casualties on the list of priorities. With this latest phase of the project, CICT is reaffirming its commitment to the continuity of this initiative, despite the challenges faced by the business.”
Cataract surgeries, refractive surgeries that reshape the cornea (LASIK surgery), and Corneal Collagen Crosslinking (CXL) including squint correction and keratoplasty will be performed under this phase of the CICT ‘C-Blue Restore Sight Project.’ Additionally, selected patients requiring the Avastin injection for visual defects too will be accommodated. Plans to conduct eye camps in certain needy areas identified by CICT are also in the pipeline.
At a ceremony held recently at the Hospital, Mr Grant Yang presented a symbolic cheque to the Chairman and CEO of Nawaloka Hospitals Dr Jayantha Dharmadasa and the Hospital’s Director/General Manager Vidya Jyothi Emeritus Professor Lal G. Chandrasena. Thereafter, the CICT team visited some of the patients scheduled for surgeries. Since the launch of the ‘C-Blue Restore Sight Project’ in 2015, CICT has funded more than 450 cataract surgeries to restore sight, in collaboration with the National Eye Hospital.
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