[News - Local] - Drunk Cricket official misbehaves- loses mobile

A cricket employee, who is fast gaining notoriety for his bullish conduct, is reported to have misbehaved at the launch of the Sri Lanka-Pakistan series at the Taj Samudra Hotel on Monday.

The man is said to have been in an intoxicated state and lost his mobile phone which was the propriety of Sri Lanka Cricket (SLC).

He is called a “former Minister’s catcher” and was thrashed twice when he came into contact with the wrong people, according to an SLC source. He is also a tale-carrier and has been recommended for a possible promotion and his conduct at the Monday’s Press conference had been an embarrassment to SLC officials who were present in full force at the launch of the Pakistan-Sri Lanka series.

Meanwhile it has also been reported that at an emergency meeting it was discussed to shift the first Test from Galle to Dambulla due to wet conditions but the plan was shelved after some officials became worried that it would amount to a tribute to former SLC president Thilanga Sumathipala who built the stadium.

But SLC denied Dambulla was discussed. “We looked at options like the SSC but Dambulla was not one of them. The match will be played in Galle as originally scheduled”, said SLC secretary Nishantha Ranatunga.

[Carton]

[News - Business] - Inflation drops to its lowest level in more than five years

The rate of inflation in the country as measured by the point-to-point change in the Colombo Consumers' Price Index (CCPI) (2002=100), computed by the Department of Census and Statistics dropped sharply to a five year low of 0.9 per cent in June, 2009. The annual average inflation rate also continued to decelerate since November, 2008 to reach 12.5 per cent in June, 2009 compared to 14.7 per cent in the previous month. The CCPI increased by 1.3 per cent in June, 2009 over May, 2009. The contribution to the monthly increase in the Index arose mainly from sub category of food and non-alcoholic beverages (2.5 per cent). Sub categories such as clothing, housing, water, electricity, gas and other fuels, furnishing, household equipment and routine household maintenance together with miscellaneous goods and services also recorded slight increases.

Core inflation, on a point-to-point basis witnessed a sharp decline from 13.5 per cent in May, 2009 to 7.7 per cent in June, 2009. However, the monthly core index remained unchanged resulting in a marginal decrease in the annual average rate from 15.8 per cent to 15.2 per cent between the two months.

The containment of the inflation was mainly due to the lag effect of tight monetary policy stance pursued by the Central Bank and easing of commodity prices in the international market. However, it may move gradually upwards during the remainder of the year, while remaining at single digit levels throughout the period. Further, the annual average inflation rate will continue to decelerate reaching low single digit levels by the year end.

The prevalence of low inflation will be conducive to the growth prospects of the economy. Due to adverse developments that were in place during the last two quarters, it was estimated that the economy would grow around 2.5 per cent in 2009 under a pessimistic scenario. However, the economic prospects have improved significantly due to recent domestic and global developments. The end of the country's internal conflict will pave way to open up the Northern and Eastern Provinces for economic activities and the expectations of the global recovery towards the latter part of the year will provide further growth impetus to the economy which is, at present, projected to grow at a range of 3.5 to 4.5 per cent.

[News - Business] - Amba sees increased interest from International clients

The current global economic crisis has had its most significant impact on the financial services sector, which has historically driven much of the growth in the outsourcing industry. According to Sanjay Kulatunga, Director Amba Research, although this has resulted in some short-term impact on growth in the outsourcing industry, from which Amba Research has not been immune, the medium and longer-term outlook for the investment research outsourcing sector looks positive as outsourcing takes a more strategic position within the equity research and asset management industries.

The market crisis has forced the financial sector to re-examine its outsourcing strategies. In a white paper entitled “Black September: Fifteen emerging trends in capital markets” that was published by Amba Research in the midst of the crisis, it was highlighted that the structural changes caused by the downturn in the financial markets will result in more work being outsourced. We are now seeing significant interest from large potential clients, especially among institutional asset managers who seek to effectively maintain and expand their research programmes in the midst of shrinking coverage from the sell-side, stated Mr. Kulatunga.

One area of growth for Amba, contrary to the overall industry trend, has been in the quantitative services business. Amba’s ‘quants’ business which actively hires engineering, science, and mathematics graduates from Colombo and Moratuwa Universities, provides services in the areas of statistical modeling, trading strategy analysis, derivatives pricing and Risk management. According to Dr. Naveen Gunawardane, Head of Quantitative Research at Amba Research Lanka, Risk Management is an area which has come into particular prominence in the current environment.

Over the last five and a half years since Colombo was chosen as its first outsourcing location, Amba Research has become a leading provider of investment research support services to the global capital markets industry.

Amba works with clients in all the world’s major financial centers, working with over half of the major global investment banks, investment management firms, alternative asset managers, commercial banks and other financial services firms. Amba research is rated as the country’s foremost Knowledge Process Outsourcing provider in the financial services industry.

In its brief existence Amba has trained over 340 young Sri Lankan finance professionals in providing investment research to developed global financial markets. According to Dr. Kemal de Soysa, Country Delivery Head, staff training at Amba Research is based on the best practices followed by global investment banks and asset managers. Amba Research Lanka maintains very strong bonds with local educational institutions, such as the universities and professional educational bodies at which many of ARL’s all-Sri Lankan staff have been educated. We strongly encourage staff involvement in the continued development of financial studies at these institutions stated Dr. de Soysa

According to Mr. Kulatunga Amba’s growth prospects in Sri Lanka will get a significant boost as a direct result of the end of the war. This will in turn result in investor confidence in outsourcing more high-end financial services to Sri Lanka. “We believe that Amba will be able to significantly increase its operations in Sri Lanka and provide employment not only to local, financial professionals but young Sri Lankans returning back to the country looking for a career in the capital markets space” stated Mr. Kulatunga.

[Sports - Cricket] - Tasmania signs Malinga for Twenty20

Sri Lankan fast bowler Lasith Malinga will play for Tasmania in this summer's domestic Twenty20 competition.

He's the third major international signing for the competition after West Indian stars Chris Gayle (Western Australia) and Dwayne Bravo (Victoria) agreed to play.

Tigers coach Tim Coyle says Malinga is one of a few bowlers who can dominate Twenty20 cricket regularly with the ball.

Each state was been allocated $50,000 from Cricket Australia to help attract an overseas star to raise the competition's profile.

Malinga, 25, bowls pace with a distinctive, explosive action attracting the sobriquet `Malinga the Slinger'.

He's played 15 international Twenty20 matches and taken 19 wickets at an economy rate of 7.37, with best bowling figures of 3/11.

He played for the Mumbai Indians in the most recent IPL.

Malinga can bowl up near the 150km/h mark with his side-arm action and is renowned for yorkers.

He is expected to arrive in Hobart in December.

[Sports - Cricket] - I always think positive - Morton

Runako Morton has averaged 127 in the series thus far © AFP

Runako Morton, the West Indies opener, has impressed in the two ODIs against India in Kingston and has attributed his performance to his positive outlook. Morton followed up a fluent 51-ball 42 in the series opener, which the hosts lost by 20 runs while chasing 340, with an unbeaten 85, guiding his team to a comprehensive series-levelling win. Morton was not included in the West Indies squad for the ICC World Twenty20, but had no trouble settling into form against India.

"I always like to think positive and since I came back into the team I have been looking to put my best foot forward for the team," Morton said in St Lucia, the venue for the third ODI. "I don't want to get too much ahead of myself. I am taking the positives from those two knocks. From the start of the year I have been feeling quite relaxed at the crease and I am getting the results."

Morton has opened in each of his 52 ODIs and boasts a decent record, averaging 35.19 with two centuries and ten fifties. However, he started off batting at No.3 in the domestic circuit, but said he found no difficulty in adapting to the role of an opener in international cricket. "Being a No. 3 throughout my career there was not much of an adjustment to move up to open the batting with the captain," Morton said. "It is all about dedication and application and backing myself to do the job. I aim to stay positive."

With the series level at 1-1, West Indies will be keen to take an unassailable lead in the third game at St. Lucia and Morton made his intentions clear. "The series is level 1-1. As always I will be looking to win," he said. "We will be looking to put in another good team effort as we showed in Jamaica. Players are putting their hands up and putting in good performances and we are confident."

[News- Business] - 192,000 jobs lost in SL -1Q

The ongoing global economic downturn has forced 192,000 people to lose their jobs in Sri Lanka during the first quarter of this year.

This was revealed at the presentation of the findings of the International Labour Organisation (ILO), in a rapid assessment of the impact of the global economic crisis on employment and industrial relations in Sri Lanka.

Consultant, ILO, Dr. Ramani Gunatilaka, presenting her findings based on a study on employment in Sri Lanka, said that out of the total jobs lost, the industrial sector accounted for the loss of 96,000 jobs, the apparel sector lost 60,000 jobs and the construction sector lost 36,000 jobs.

“However, 203,000 new jobs were generated during the period in the agriculture and service sectors, adding 129,00 jobs. “Our observation on the data studied is that people have moved from one sector to another,” she said.

Presenting her report on closures and layoffs in BOI approved companies operating in the Free Trade Zones (FTZ) for the period commencing September 2008 to January 2009, she said a total of 11 firms had closed down, laying off 3,198 workers.

The reduction in orders and low demand were seen as the key factors for the closure of these firms.

According Dr. Gunatilaka, the garment industry is the worst affected sector in the economy due to the present crisis.

It has been found that the majority of workers losing their jobs are in the skilled, semi skilled and unskilled categories, rather than those in executive positions.

Besides retrenchment, closure is the last option of strategies employed by firms to deal with the crisis. There is evidence that many firms have begun to reduce labour absorption rates in a bid to cut costs, because of falling demand.

Dr. Gunatilaka also pointed out that most of the firms use cost cutting strategies like reduction in labour absorption, freezing recruitment, natural labour attrition, closure of production lines and rationalisation of factories.

“This also includes no overtime, reducing number of days of work and a five day working week. The situation is seen to be be bad in the plantation sector also. Other strategies implemented by firms included the elimination or reduction of special allowances and facilities such as food and travel , increments and bonuses.

A handful of firms have instituted wage cuts progressively. But in many firms the axe has fallen aggressively, with decision-making executive staff guarding their customary levels of remuneration and allowances while workers have had to bear the full brunt of the adjustment through wage and jobs cuts.

Highlighting the employers’ responses to the ongoing crisis, Dr. Gunatilaka pointed out that the employer’s response to the whole crisis seems to reactive rather than proactive. Their response appears to be focused primarily on cutting labour costs.

There is a lack of awareness of other ways to deal with the crisis and a tendency to follow the example of one’s peers who may also be ill-informed about the situation.

The ILO consultant pointed out the necessity of the employer to encourage a proactive approach among small and medium firms, by providing the necessary information either through the Chambers of Commerce, the industry, the banks or through NGOs involved in entrepreneur development.

Commenting on the government’s response, Dr. Gunatilaka pointed out the crisis has caught the government unawares and unprepared.

The government has responded to the crisis with stimulus packages for the exporters, efforts to reduce interest rates and increased liquidity, and by passing on most of the decline in oil prices to consumers.

“But it is not clear how effective these measures are due to certain macroeconomic policies that have made things even more difficult for exporters and producers.” she said.

In this backdrop, Dr. Gunatilaka pointed out three ways by which policy makers could stimulate demand in the domestic economy.

Firstly, pay the money that the government owes its contractors in the construction sector. Secondly, the end of the war that has enabled reconstruction and rehabilitation work to begin, will provide a Keynesian stimulus that will help mitigate the worst effects of the crisis.

Thirdly, the government will also need to shore up consumption but this would require an effective mechanism to transfer incomes to those likely to be worst affected by the crisis.