Academia, business community take up local graduates’ cause

"Why is it so difficult for graduates to get jobs when there is a brain drain in the country? Why should they be the ones protesting, sitting on the streets trying to make the government find employment for them. It must be very disappointing and demoralising for them not to be able to find jobs after studying hard to secure seats in universities, which are limited, and then going through financial difficulties to complete their education, as the majority often do as they are from poor families from rural areas." This was how David Griffiths, CEO HSBC Sri Lanka and Maldives, articulated the failure of our higher education system and the injustice our society continues to commit. He spoke at a workshop conducted by the Institute for Enterprise of Leeds Metropolitan University UK, The British Council, The Council for Business with Britain (an affiliation of Ceylon Chamber of Commerce) and the Ministry of Higher Education which brought together the academic and business community to find out ways to make the elusive employable graduate a reality. The workshop "Creating Graduate Excellence—Enterprising Graduates: routes to employability" was a fact finding mission about what the business community expected from graduates. Around 35 delegates representing the Apparel, Architecture, BPO/ICT, Education, Finance, Leisure, Human Resources and Services Sectors participated. Half of them represented the Education sector from several local universities. Studying the problem is the first step to solving the problem and that was what this workshop firstly intended to bring about. The dissemination of views, ideas and opinions of the delegates will be compiled into a detailed report commissioned by the Leeds Metropolitan University. The delegates demonstrated a tendency to agree or strongly agree on the following points; * Skills that will make graduates employable should be an outcome of higher education. * Students are not fully ‘work ready’ soon after graduation. * Students need to understand the ‘real world’ of the world of work. * Universities and businesses can work closer to support students in all subjects/disciplines which will make them employable. It was agreed that students needed to demonstrate a desire to change, be enterprising and have a sense of responsibility to the country. The academia asked the business community to provide opportunities for internships so that local graduates will be ‘work ready’ when their degrees are completed. Funding want hurt either. While it was acknowledged that various corporate organisations are funding students and faculties, there was a lack of awareness which, according to Prof. Lakshman Dissanayake, Dean, Faculty of Graduate Studies, University of Colombo, has led to the notion that the academia and the business community continue to work in isolation. Prof. Lakshman Ratnayake, Project Director, Improving Relevance and Quality of Undergraduate Education Project, Ministry of Higher Education said that University resources are stretched thin. "In the ‘50s and ‘60s, the government spent four percent of GDP on education. Today its two percent with only 0.4 percent of GDP spent on higher education. When ever the UGC requests the government for more funding, because education brings social benefits, the government stand is that higher education brings private benefits and so no additional funding is received," he said. Today, While the free education system benefits children from rural lower income families, higher education benefits students from the rich and upper middle class he said. "Students from rural areas, and the poor, cannot afford to enrol into schools with better facilities or pay for extra tuition and books which will help them compete for the limited seats available in the universities." The lack of good communication skills in the English language and social etiquette is also placing rural students at a disadvantage. English is the official language in many, if not all, business organisations in Colombo and if Sri Lanka aspires to be a hub of the global BPO and ICT sectors, prospective employees must be competent in the language. A command of the English language has other benefits too. "Out of a total of 129 CIMA graduates, 97 of them are from Colombo or close to Colombo and 32 from other districts and there is no unemployment among CIMA graduates," Ratnayake pointed out, highlighting the growing disparity between Colombo and rural areas. The business community wanted the universities to revolutionise their methods so that students did not end up book smart but become employable with a well balanced education, fortified with soft skills and a command of the English language. Ratnayake affirmed that "unless reforms are done, apart from the medical, engineering and businesses faculties, the graduates from all the faculties will always be unemployed. With regards to who was responsible, the government, private sector, the universities and the students and their families all shared the responsibility in varying degrees. Alison Price, Leeds Metropolitan University, said that the next step will be to compile a report which will be disseminated to the delegates. The report will put out recommendations on what needs to be done and who should be responsible and for what. Her report will be compared to similar reports compiled in the UK and other countries. Gill Westaway, British Council Country Director, said that this project, funded by the British government, will be closely monitored and together with Ministry of Higher Education, Universities and the confirmed private sector participants will build partnerships and lobby for reforms. "The problem of employability is a global issue, but it is accentuated in developing countries," she said. The British Council will host a similar policy dialogue in February, where six vice chancellors will share their experiences as to how universities can align themselves to requirements of the business world.

Iran asked to defend our GSP plus status

Minister of Enterprise Development and Investment Promotion Sarath Amunugama appealed to the Islamic Republic of Iran to help defend the country’s Generalised System of Preferences (GSP) plus status when it comes under review by the European Union later this year. At a meeting with the Iranian Minister of Commerce Dr. Massoud Mir Kazemi and his delegates last week, Amunugama said that Iran should defend her friend by lobbying for the EU to retain Sri Lanka’s GSP plus status. "GSP plus is very significant for us and it is important for us to defend it when it comes up for review. The garment industry in Sri Lanka is doing very well and even India is asking for our assistance. Two of our biggest garment exporters received 1000 acres each in India to set up facilities there," he said. Meanwhile, Iranian engineers have already been commissioned with estimating the cost required to construct an underground irrigation tunnel which will take water from the central highlands to the Hambantota District. "The Oma Oya project will be the biggest infrastructure project. It will be a 28km underground tunnel and it can be a good symbol of the friendship between the two countries if the Iranian government can help fund this project," Amunugama said. Massoud said the project is estimated at US$ 400 million and stressed that the project will ensure the transfer of science and technology from Iran. Farab, an Iranian company specialising in energy and water projects, will handle this project. A spokesman for Farab told The Island Financial Review that the company was ready to commence the project. "We have already contracted engineers and other related services. We are even willing to fund a part of the project. However, the two governments are still discussing the funding issues, so we will have to wait," he said.

Nature’s Secret goes global

Nature’s Beauty Creations Limited (NBCL), last week said, that its exotic herbal cosmetic line,Nature’s Secret, was already registered in 25 countries where the cosmetic products will be gradually introduced to by 2010. "Our products already occupy shelves in Bangladesh and the Middle East and we will soon export Nature’s Secret products to Russia, China and Pakistan," Samantha Kumarasinghe, Chairman/Managing Director NBCL said. Kumarasinghe said that Sri Lanka has the potential to tap into the US$ 240 billion global cosmetic market and is confident Nature’s Secret will be a global brand by 2020. "We are in a unique position to market our range of cosmetics because Sri Lanka has the natural resources in which to produce herbal cosmetics and being in the tropics, we can market our products as being truly exotic," Kumarasinghe said. Currently, the company’s exports amount to 10 per cent of its annual turnover and the company hopes to reverse this situation by 2010 when exports will contribute 90 per cent to its turnover. Kumarasinghe said the company will be carrying out extensive market research and marketing campaigns in order to establish itself as a global provider of herbal cosmetic products. Exports to India had to be suspended last year when the company experienced capacity constraints in production. To overcome this problem and to facilitate exports to more countries, a seven thousand sq. foot Rs.350 million factory complex at Horana was unveiled last week. The factory’s microbiology facilities employ European GMP standards and the complex is surrounded by a garden containing 350 varieties of herbs and plants. "The factory will increase our production capacity six times over," Kumarasinghe said. Since 1999, Nature’s Secret herbal cosmetics were produced in a-15 thousand square foot factory employing 140 staff. The new factory complex will increase staff to 225 strong. The entire production process, from taking plant extracts to delivery, will be centralised in the factory complex. "We are not interested in subcontracting any of our processors," Kumarasinghe said, stressing that that NBCL had to remain in control of the entire production cycle of Nature’s Secret in order to maintain high quality standards. "Our staff shares in the company’s profit," Kumarasinghe said with a flourish. "They are paid an incentive every month, the company makes a profit, irrespective of their contribution. And this is besides their salaries, overtime payments and the bonus they receive twice a year." NBCL is a subsidiary of Multichemi Group of Companies which enjoys a global presence through their detergent products, herbal cosmetics, herbal medicines, enzyme treatment for apparels and anti-soil erosion techniques.

First night of CCC Foundation brings Rs. 3 ml

The Courage, Compassion and Commitment (CCC) Foundation Inc. confirmed pledges amounting to Rs. 3 million on the very night it launched a fund raising campaign to build a transit home for cancer patients at the cancer hospital in Maharagama. The fund raising project was launched last Thursday in the presence of several representatives of corporate bodies among the attendees. "We received pledges amounting to Rs. 6.5 million out of which Rs. 3 million are already confirmed," Jetha Devapura, Chairman and Founder of CCC Foundation, said. The objective of the fund raiser is to build a transit home, which will be called CCC House, for cancer patients who require outpatient treatment such as radiotherapy and day chemotherapy and do not require intensive supervision. This will allow the cancer hospital to concentrate their stretched thin resources to serious cases. Currently the capacity of the National Cancer Institute, Maharagama, is 650 beds and inpatients amount to 800, so many patients occupy the floor along the corridors. Many of them come to the hospital from remote areas for one day treatment and have no way of reaching their homes. The condition of the hospital is not only painful to the patients, among them children, who suffer the most because their little bodies cannot take the painful treatment easily, but family members too become psychologically scared. Some parents have even committed suicide because they could not do any thing but look on, hopelessly, while their little ones suffered. "This is a very sad and depressing situation," Dr. Kanishka Karunaratne, Director, National Cancer Institute said, "Treatment for cancer is very expensive and the government cannot improve the infrastructure because it spends a lot on medicines." The hospital caters to the whole nation and according Dr. Karunaratne patients from the North and East found their way to Maharagama in shiploads through the ICRC even during the tense of times. Cancer is the fifth common cause of death in Sri Lanka. In 2003, the cure rate was 40 percent (which means that only four out of ten patients were cured). The CCC Foundation and the National Cancer Institute believe that it can improve to 80 percent by 2020 through the CCC House and other ongoing projects by the CCC to improve the lives of both patients and their families who suffer together in Maharagama. CCC Foundation was established in Australia and with its partners, the Royal Children’s Hospital and the Peter MacCallum Cancer Centre of Melbourne, is working closely with the National Cancer Institute to implement best practice oncology treatment and care for both children and adults through training visits of medical staff from Australia to Maharagama. The foundation has already raised funds for a paediatric ward in 2005 and a 14 bed children’s ward which was opened in 2006. The CCC House will be located at the rear of the Cancer Hospital and will provide accommodation for 140 outpatients. The estimated cost of the project is Rs. 175 million. How you can donate… Since the Cancer hospital opened its doors to the public, individuals and organisations have stepped in to dispense much needed aid and spend time with the patients. Many corporate organisations have even made a visit to the hospital an annual event in their CSR calendars, sharing some of their profits to improve conditions for the patients. For businesses, CSR is all about improving their corporate images no matter what they may say. But then again, intensions don’t matter when another human being is given a helping hand. Perhaps we should look through CSR projects ‘advertised in the press to boost PR’ and be grateful that someone is indeed doing something. After all, a corporate entity includes its human beings. Perhaps the greatest thing that comes out of a CSR project at the cancer hospital is when corporate employees spend time with the children, entertaining and playing with them. How happy they must be to laugh, or even smile, if only for a while? We can make a difference. So maybe you can ask your company to do something. Go ahead…try. Even if your company has other plans; there’s still you! Corporate establishments have the opportunity to sponsor a child’s room for Rs. 1 million, an adult cubicle for Rs. 0.6 million or even donate towards the expenses for furniture and fittings. Individuals can make their contributions with the option of volunteering to spend time with the children at the cancer hospital. For more information contact:CCC Foundation, 47 Alexandra Place, Colombo 7, 0777 675708, Email-info@cccfoundation.org.au, Web-www.cccfoundation.org.au

Market prices driven by cartels, monopolies

Senior statisticians of the Department of Census and Statistics said that market prices, to a great extent, do not depend on demand and supply, but that certain individuals were controlling the markets and manipulating prices. Oil prices, world food prices, bad weather, political instability affect price changes, but it is the demand and supply mechanism which determine prices on a daily basis. Over the years, they had noticed prices varying from 30 to 100 percent between the major market centres in the Greater Colombo area when they carried out surveys for the Colombo Consumers’ Price Index (CCPI). "It was shocking to see that certain varieties of fish were priced twice as much, say in Maradana, than for the same fish in Pettah on a single day," one statistician said. "It became clear to us in our surveys over the years that vegetables and other produce were haphazardly priced as well," he said. According to them, this trend still continues. Trade is controlled through a single party at the supply level, which means that local producers often part with their produce for a price much lower than that sold in Colombo. Why not go public with their findings? Being government servants, they said that they could not highlight these anomalies. But they said it was a well-known fact. Monopolists and cartels running the show from behind have political backing – another known fact, they said. Apart from inflation, these market racketeers add to the difficulties faced by consumers. These humble government servants cannot fight the system. But they do have some sound advice to offer: Consumers should pick and choose what to buy and when to buy. "We often see consumers paying a high price for fish and vegetables in one marketplace, while the prices may be less in another marketplace. This should not happen. If consumers wish to save, they should compare prices at different marketplaces," they said. But that is time-consuming, They said substituting is another tool consumers can use to their advantage. For example, if certain fish are priced too high, go for the cheaper varieties. Always look for a cheaper substitute. If carrots are too expensive, go for potatoes. "Consumers should make smart choices," statisticians said. These methods of selection will affect prices in markets where prices are abnormally high, and eventually force the manipulators to reduce their prices, in turn.

Laugfs Gas predicts price reduction amidst LPG price hike

Laugfs Holdings Ltd. predicts consumers will be able to enjoy reduced domestic cylinder prices from March or April this year. The company announced a price hike of Rs.212 last week bringing the price of Laugfs’ 12.5 kg domestic LPG cylinder to Rs.1460. This price revision was possible after a lengthy legal tussle with the Consumer Affairs Authority (CAA) ended with both parties recognizing a pricing formula which will enable the company to adjust its domestic prices according to world crude oil prices. "We predict world crude oil prices will decline around March or April and this benefit will be passed down to our consumers by way of reduced domestic LPG cylinder prices," said W. K. H. Wegapitiya, Chairman, Laugfs Holdings Limited at a media briefing recently. The company said it purchases LPG from two sources. 65 percent is purchased from the world market. The balance 35 percent is purchased from the refinery owned by Ceylon Petroleum Corporation—which is also priced at world LPG prices. The company said it had no choice but increase its prices in order to survive. According to the pricing mechanism agreed upon by Laugfs and the CAA, the pricing is pegged to the Saudi Aramco Contract Price (SACP) – the benchmark for international LPG prices – which will allow the company to set its prices every two months according to SACP movements. To the SACP is added ocean freight charges, insurance, CIF, terminal fees, the Port Authority levy and VAT. The company adds a 30 percent margin to cover overheads and profits. The SACP, which is set every month and is correlated to crude oil price movements, stood at US $ 548.5 per metric tonne in January 2007 and ended the year at US $ 877.5. It came down marginally by the new year and is currently set at US $ 873.5 per metric tonne for this month. Whenever world oil prices increase, prices of petroleum-based products in our country automatically follow suit. But never have domestic prices come down to reflect the downturn in world oil prices. If crude oil prices do come down, as predicted by Laugfs Holdings, for the first time consumers will enjoy the benefit of reduced prices as guaranteed by the CAA and Laugfs Holdings. Who will have the last laugh? Only time will tell. Kehelwela Estate registers record price At this week’s Tea Auction, which was the first one for the New Year, an All Time Colombo Tea Auction record price of Rs. 365/-, was established by Kehelwela Estate for an invoice of the Dust 1 grade. Several large buyers including multi nationals were actively biding for this tea, which was eventually sold to Ceylon Tea Marketing Ltd. The estate, which is one of the finest Low Grown plantations, is owned by the renowned Orthopaedic Surgeon Dr. Rienzie Peiris, who gets personally involved with offering advice on manufacture. The sale of all Kehelwela teas is handled exclusively by Lanka Commodity Brokers Ltd.CCI invites vendors to join the Trade Mission to Qatar Chamber of Construction Industry Sri Lanka which pioneered the promotion of export of construction related professional services and construction capacities is now inviting vendors of furniture and fittings and accessories and landscape architects to join its second trade mission which will take place during the period 8th to 14th February 2008 to the State of Qatar. This invitation is extended in view of the heavy demand for such goods and services that has been identified consequent to a needs assessment carried out by the Chamber. All reputed manufacturers and vendors of furniture, joinery and accessories are invited to express their interest to be considered for inclusion in the Trade Mission.