Business
Technology Transfer Mission at Mahindra Ideal Lanka Pvt Limited, Welipenna
SL technicians set to roll over all stages of car assembly at the plant
An Indian Automobile Engineer, who was a plant head Mahindra Ideal Lanka Pvt Ltd. (MILPL), car assembly plant in Wellipenna of is due to leave the island after successfully completing this training mission. Post his movement, MILPL plant will be run by 100% Sri Lankan technical workforce.
Engineer Sadhasivam Durairaj told the media recently that he would be completing his two-year technology transfer mission and Plant Head role on January 31, 2021 and he had utmost confidence that Sri Lankan technicians have gained the knowledge and competency to create a product according to the specifications of Mahindra & Mahindra, India.
“In fact, I can assure that Sri Lankan car assembly technicians at MILPL can perform the duties and responsibilities such as diagnostic tests on the assembled product to ensure efficiency and conduct adjustments as needed on par with global standards,” he said.
“Assembly technicians must be knowledgeable about the technology and mechanical industry as well as have the ability to analyse designs as a guide for creating high-quality products. Sri Lankan technicians have now absorbed all these skills to perform the assembly operations with no supervision”.
“I trained around 50 technicians and found that working at an assembly plant producing a quality product had come naturally to them. That made my job easier and more enjoyable. In fact, when I first interviewed them, I had planned to ask them only the basic questions, but I was surprised that they were even able to answer questions on more complex things such as functions of car parts, Importance of automotive systems, root causes etc. That made me confident of producing global standard quality cars in Sri Lanka from day one. I saw that training was mainly required in areas such as standardization, plant safety, shop floor disciplines etc. Over the period, they learned quickly and they adhered to standards and specifications. I’d simply say that they were good learners and followers”.
Referring to personal attributes of his Sri Lankan technical staff, Sadhasivam said,” they showed a great deal of self-discipline, attention to detail, good problem-solving skills, passion for technology and focus on the end-user of the product; all of which led to functional excellence at the assembly line”.
“The global automotive industry supply chain adopts lean manufacturing concepts, our Mahindra Ideal Lanka plant is a venue for Lean Production. We procure around 30% parts locally – seat, exhaust, battery and tyre, the local value-added parts are ordered based on the monthly requirements and procured on Just-In-Time (JIT) basis. similarly, other consumables and Imported parts are procured based on our stock holding policy – this depends on the lead time which includes packaging, shipment and customs clearance”, he said.
“Mahindra vehicles are a strong line-up of great reliability. In India, we call it Scorpio company or Bolero company because it is well- known for its sturdy products. And Ideal Motors Sri Lanka is a well established network with its service centers, showrooms, logistics and customer care centres. That synergy will ensure customer delight like no other combination,” he said.
When asked about the assembly plant’s production capacity, Sadhasivam said,” the annual capacity is 5,000 units, now we produce 100+ cars per month and we will ramp up daily production as market demand increases. Presently we have assembled KUV100 Manual Petrol variants, and we have planned to add KUV100 AMT Diesel variants in the time to come”.
“Our technicians at MILPL plant are committed to ‘Zero Defect Manufacturing and doing it right the first time. The past two years of my life as Head of Vehicle Production Plant of Mahindra Ideal Lanka have been full of amazing experiences and a lot of professional satisfaction. I came across some of the most talented, experienced and friendly coworkers in Sri Lanka, I would miss being part of this great workplace and would say that anyone who gets the opportunity to work here will find it an energy-filled workplace”.
Sadhasivam is moving on to a new ‘challenging’ position in another automotive company in India next month.
Business
Sri Lanka reaches in principle agreement for restructuring sovereign debt with external commercial creditors
On the 19th of September 2024, Sri Lanka announced that it has reached Agreements in Principle on the restructuring of approximately USD$ 17.5 billion of external commercial debt (as of end 2023).
These agreements have been reached with holders of its International Sovereign Bonds, following negotiations with the Ad Hoc Group of Bondholders (“AHGB”), a representative group of international investors, and the Local Consortium of Sri Lanka (“LCSL”), a representative group of domestic financial institutions. Collectively, the two groups hold in excess of 50% of the Bonds.
Under the agreements, holders of the Bonds will be consenting to a present value concession of 40.3% in the baseline scenario, calculated with a discount factor of 11%. The agreements provide Sri Lanka with enhanced debt relief compared to the Joint Working Framework agreed in July 2024, including a further reduction in interest payments provided in the new agreement.
Sri Lanka also announced that it has finalized agreement in principle with China Development Bank (“CDB”) on the key financial terms of the restructuring of approximately US$ 3.3bn of sovereign debt.
As a result of the agreements already achieved with Eximbank of China and members of Sri Lanka’s Official Creditor Committee (“OCC”) as well as CDB and bondholders, Sri Lanka will have obtained over USD 17bn of debt service relief during the IMF program period (around USD 2.4bn from Eximbank of China, USD 2.9bn from the OCC, USD 2.5bn from CDB and USD 9.5bn from the bondholders).
His Excellency the President expressed his deep appreciation for all of Sri Lanka’s creditors who engaged in good faith throughout this process, and also for the International Monetary Fund and the OCC Secretariat for the continuous and constructive support.
The official announcement is available at: https://links.sgx.com/FileOpen/Sri%20Lanka%20%20Announcement%20of%20Agreement%20in%20Principle%20-%2019_09_2024.ashx?App=Announcement&FileID=819175
Business
Finance Ministry says it’s incorrect to claim foreign debt is not being repaid
The Central Bank repaid $522 million in 2023
By Sanath Nanayakkare
It is incorrect to claim that Sri Lanka is not repaying its foreign debt, the Ministry of Finance states on its official website in a document dated Sep 16, 2024.
Sri Lanka’s government and private borrowers serviced $2.58 billion in debt in 2023, following $2.48 billion in 2022 – the year the country defaulted on external debt – according to the report.
The report highlights that the Central Bank repaid $522 million in 2023, including $172 million to the IMF and $350 million in swaps.
Further clarifying the concerns in some quarters that foreign debt is not being repaid, the Ministry points out that, by 2023, the government made $1.043 billion in principal repayments and $405 million in interest payments.
“In 2022, central government principal repayments dropped to $1.236 billion from $2.377 billion in 2021 after the default, with interest payments falling from $1.187 billion to $465 million,” it states.
“Meanwhile, in the private sector, banks and corporations repaid $769 million in principal in 2022, down from $1.410 billion in 2021, while interest payments dropped from $394 million to $273 million.”
“In 2023, private entities paid $405 million in interest. The data excludes foreign reserve collections by both the central bank and private banks, which resemble debt repayments. Reduced imports of building materials and machinery were linked to domestic savings being used to repay debt instead of being invested locally,” the report states.
Business
Jayantha Gallehewa receives prestigious IFPSM President’s Award at World Summit, Mexico
At the World Summit International Federation of Purchasing and Supply Management (IFPSM) held in Cancún, Mexico, Jayantha Gallehewa, Hony. President of the Institute of Supply and Materials Management (ISMM) in Sri Lanka, was honored with the esteemed IFPSM President’s Award for 2024. This prestigious accolade recognizes his exceptional contributions to raising the standards of Sri Lanka’s Supply Chain Industry, as well as his significant efforts to advance the sector on a global scale. Remarkably, “Mr. Gallehewa is the only Sri Lankan to have received this prestigious award and the third Asian professional to ever win this honorable award within the last 10 years”.
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