Showing posts with label news. Show all posts
Showing posts with label news. Show all posts

Monday, May 2, 2011

Sri Lanka HNB Assurance March net up 23-pct

May 02, 2011 (LBO) - Sri Lanka's HNB Assurance's profits in the March 2011 quarter rose 23 percent to 24.7 million rupees from a year earlier and gross written premium rose 27 percent to 684 million rupees interim accounts showed.


The firm reported earnings of 55 cents for the quarter. The first quarter numbers of insurers do not have profits from the life business, which is calculated at the end of each year.

It is also issuing rights to expand capital.

After 99.7 million rupees ceded to re-insurers (102 million rupees last year) the firm had 584 million rupees of net written premium.

The firm paid 198 million rupees in net claims and benefits net.

source - www.lbo.lk

Osama and Al Qaeda

The Long Road to Abbottabad




Details of each operation and the instructions on how to reorganize after success or failure provide fascinating insight into their training and understanding of guerrilla operations. Occasional glimpses of Sun Tzu and Che Guevara's teachings come through.
GUEST BY SHAUKAT QADIR

(May 02, Islamabad, Sri Lanka Guardian) Al Qaeda took birth in late 1982 (not 1988/89, as usually stated, because 1989 was when it actually acquired the militant traits it is now famous for) in Kuwait, the birthplace of Osama bin Laden’s (its founder; OBL) father, ostensibly as a charitable organization to assist Muslims suffering all over the world. Very quickly, however, OBL realized that the way to ‘help’ oppressed Muslims was to arm them to rebel against the oppressor(s). Since 1989 witnessed the Soviet invasion of Afghanistan and OBL was one source for funneling arms to Afghan freedom fighters, Al Qaeda suddenly began to receive massive funding from all over the Arab World. He also swiftly entered the arena of gun-running.

Many Americans have accused the CIA of training Osama. My view is that the accusation is not merited. However, there is little doubt that he received encouragement, support, funding and even arms for Afghan freedom fighters and that he was a CIA collaborator for some years.

OBL also actively collaborated by providing crucial intelligence obtained from Al Qaeda personnel in Kuwait, during ‘Desert Storm’. However, with continued American presence in Saudi Arabia, post Desert Storm, plus American arrogance demonstrated by their ignorance of, and lack of concern with, local customs and sensitivities were the beginning of the change in him. He began to find Americans offensive and the King (Abdullah) began to be viewed as an American lackey.

OBL began to gravitate towards the small group of dissidents who held the view that a King was un-Islamic and sought a return to the ancient Islamic democracy; the Khilafat. He became increasingly active with the passage of time and, when confronted with it, freely admitted to his activities. Due to his family connections, he was not imprisoned but his citizenship of Saudi Arabia revoked.

It was during his period in Sudan that he began focusing on the US as the object of his enmity. While his anti-US activities are on record, it is significant to note that there was considerable increase in contributions to Al Qaeda, including contributions by members of the royal family of Saud.

It was also in this period that OBL began to develop a strategic ‘world view’. He saw all governments of Muslim majority countries as American lackeys and referred to them as Kafirs (infidel). He began to think of himself as a man with a mission; he was going to bring revolutions in all Muslim countries to revert them into one united Caliphate and, simultaneously bring to its knees that giant of all Evil; the US.

It is important to point out that for any such strategic vision to work, it is essential to have undisputed control over a spatial territory; preferably a country. A nation state governed under strict and ‘true’ Islamic law, setting an example to the rest, a command, control, and communication infrastructure, where funds can flow in, where training can be provided for warriors to sally forth and instigate revolutions in other Muslim majority countries. He was going to be the Muslim Che Guevara. But how?

While he was considering his choice of country, fate took a hand and, without details irrelevant to this narrative, he found himself in Afghanistan for him; the Promised Land

How did Al Qaeda work?

In 1980, OBL offered to join the Afghan freedom struggle, but this was a stage when the Afghan struggle was still ‘pure’, unadulterated by non-Afghan fighters, except the Pashtun from Pakistan. Osama’s contributions in weapons and financial support were welcomed; he was not. Soon he began to realize that his person was too precious to waste. At some stage Abu Ayoub Al-Iraqi, joined Al Qaeda. He remained so far in the background that few know his name and few are aware of his contribution; but it was he who gave the practical shape to Al Qaeda’s role on Osama’s World Vision.

Al Qaeda’s function has been described as “centralized decision and decentralized execution”; I see it as a multi-national that has exported instability so as to create Caliphate(s) in Muslim majority countries through ‘outsourcing’. Al Qaeda has recruited Muslims from all parts of the world and sends out small bands of advisers; these could number from three to a dozen or so. While Osama retained the title of Amir, the leader, and was advised by a council, called Shoora, the real power has been wielded by the second tier leadership, responsible for planning and tasking. The second tier has traditionally been Arab, mostly Egyptians, with one known exception, the Pakistani, Khalid Sheikh Muhammed, credited with the 9/11 attack; but could he have planned it alone?.

9/11 as an example

Many journalists have written about the complications involved in planning this attack. Let us refresh our memory a little. Nineteen individuals from various Arab countries entered the US in four different groups. None of these groups were aware of the others or their role, except the coordinator, who also led one of the groups, Muhammed Atta.

For the attack(s) to create the impact envisioned, without a timely reaction, it was necessary to hijack four aircrafts taking off from different airports. The planes selected, had to take off within a total time interval not exceeding forty five minutes, from the first to the last, to preempt a timely response. For them to cause the destruction to the WTC, Pentagon, and (maybe) the White House, they had to be carrying a certain minimal payload of fuel otherwise the explosion would have been insufficient.

Khalid, the one credited with the 9/11 attack, was a mechanical engineer with a masters from North Carolina. He could certainly have helped work out the fuel payload requirements for the planes that were to turn into aerial bombs, but their flight direction, how far each could deviate from its flight path and for how long, before it would arouse suspicion, the level of training required in flying that would suffice for the hijackers, the kind of weapons that would get through the airport search machines all point to more than one ‘expert’; each one with the requisite knowledge of airport security, of flight schedules, flight paths and patterns, the time taken to arouse suspicion, the delay in scrambling aircrafts to respond to this threat.

There were so many factors to be vectored in for this attack to succeed that it is impossible for it not to have been planned by a group of at least three individuals, perhaps more whose variety of expertise could create the (near) perfect plan.

It is not only a probability but a virtual certainty that they never came together, nor did they provide the information knowing what it was for. They were all probably paid cash to provide bits and pieces from their own area(s) of expertise. And yes, with their help, even Khalid Sheikh could have masterminded the plan, though my gut feeling is still that the mastermind had to be a specialist and a purchasable commodity. But Khalid is claiming sole credit and, therefore, we will never know the truth.

But this isn’t an example of outsourcing! For that, we need to travel to Afghanistan and Pakistan. Examples could also be taken from other Muslim majority countries, but I will confine myself to the area I know.

Afghanistan

1996, when Osama landed in Afghanistan, Taliban was broke and also needed weapons. In early ‘90s, Eric Margolis reported that a kilo of paste fetched the Afghan farmer $ 1000. At Karachi it was worth $ 50,000, offshore New York, $ 250,000 and would be cut and recut to be sold in New York at a street value ranging from 3 to 5 million. Al Qaeda was already into gun running and moving into drug smuggling was no problem. Pakistan was, at that time, a staunch supporter and the CIA was also prepared to turn a blind eye, the US still had hopes of Taliban and UNOCAL with George H. W. Bush on its board was still investing in Taliban in hope of oil from Central Asia.

And so, Osama offered Taliban 50 per cent of the profits from drug smuggling and weapons at near cost price. Mullah Omer could not look a gift horse of this kind, in the mouth. In return, Osama got the country he had been craving for, an unchallenged base for Al Qaeda operations, and the country where stringent Islam would be practiced in letter and spirit, as a shining example for Muslim majority countries.

9/11 changed everything. Suddenly Pakistan became a US supporter, a US invasion was imminent and, when it came, Taliban, Osama, and Al Qaeda were on the run.

It might be of interest to draw the reader’s attention to some less well known facts. Post 9/11, the US demanded that Taliban hand over Osama, the Taliban reportedly refused, because when they asked the US to provide concrete evidence of Osama’s guilt, the US refused. The US refused, because there was no concrete evidence of his guilt. There never can be. Although Osama, in a video released to Al-Jazeera TV accepted responsibility for this attack, but that was in the future; and the video was never authenticated either, so no one is certain of his guilt.

Such operations are ordered through numerous cut-offs and conduits and if any of the hijackers had been captured alive, he certainly could not have gone beyond the curtain of Khalid Sheikh and Khalid has never pointed the finger at Osama. He claims sole responsibility. Most of the FBI and CIA knowledge of the functioning of Al Qaeda has come courtesy Jamal Al Fadl, a Sudanese who defected from Al Qaeda after embezzling $110,000, which he confessed before a court in the US. How much credence can be given to his testimony, is for the reader to judge

There were selective portions of al-Fadl's testimony that I believe was false, to help support the picture that he helped the Americans join together. I think he lied in a number of specific testimony about a unified image of what this organization was. It made al-Qaeda the new Mafia or the new Communists. It made them identifiable as a group and therefore made it easier to prosecute any person associated with al-Qaeda for any acts or statements made by bin Laden.[26]

What has gone virtually unreported is the fact that on a suggestion by a Pakistani official, Taliban agreed to hand over Osama to Saudi Arabia, but the King refused to accept him. The Taliban might even have agreed to hand him over to the International Criminal Court, but when the ‘war-time’ vacuous US president Bush was informed of the option, he just ordered the charge.

For the initial years Musharaf continued to play both sides against the middle but the US was pressing hard and something had to give. Periodically, he would throw the US a bone to keep them off his back for a while. One such ‘bone’ for the US was the murder of Nek Muhammed in 2004, a member of the Wazir tribe, a veteran of the anti-Soviet war, who rose to prominence as a leader of his tribesmen amongst the Afghan Freedom Fighters, fighting once again to reclaim their country from another army of occupation, their erstwhile ally, the US. (Those readers interested in what happened in Pakistan can look up “Understanding the insurgency in FATA” under ‘selected articles’ on www,shaukatqadir.info.

This turned out to be disastrous and instigated the revolt in our tribal areas. However, it was not till Musharaf, bedeviled by another self-created judicial crisis by filing a reference against the Chief Justice, which was unanimously rejected by the Supreme Court, created another crisis to divert the attention of the international community; the ‘Lal Masjid’ (Red Mosque) episode in Islamabad in 2007, when Osama announced that, “Al Qaeda’s enemy number one was no longer the US; it was now Pakistan”.

By this time, Afghan Freedom Fighters had embraced the title of Taliban. Forgetting the oppression they had suffered in the last years of the Taliban, Taliban became the symbol of the Muslim David to the American Goliath; however, Taliban had divided into numerous factions; all loosely linked to Al Qaeda but not fully subservient to the so-called ‘mother’ organization.

Consequently, without going into details of the causes, only two Pakistani factions of the Taliban; Maulana Fazlullah’s in Swat and Baitullah Mahsud’s in South Waziristan responded to Osama’s call, while none of the Afghan Taliban did.

Since Swat shared no borders with Afghanistan, it was South Waziristan that became the base for Al Qaeda’s anti-Pakistan operations; though Fazlullah also received considerable support since, if the area under Al Qaeda could extend to the boundaries of Swat, they would be virtually within spitting distance of Islamabad.

This is where the example of ‘outsourcing’ begins!

Anticipating that Afghan Taliban might not be tied to his apron strings after witnessing how their Afghan brethren turned against them for obeying Osama’s Islamic injunctions, Osama was looking at a home in Pakistan, preparatory to taking it over; the only Muslim nuclear capable country in Osama’s lap, what a prize to aspire to!

Very carefully, under the skillful guidance of Ayman Al Zwahiri (in all likelihood, Ayoub Al-Iraqi remains the strategic brain of the organization, while Zwahiri has assumed operational control), roles were divided between the two Pakistani factions. To Fazlullah, closer to Islamabad fell the task of guerrilla warfare. To this end, a team of ten, under a Jordanian known only as Jabber was dispatched to Swat and over 1000 Tajik and Uzbek veterans followed as reinforcements.

Baitullah formed the base camp. This was the operating HQ, the command, communication, and control center, the safe haven through which monies, weapons, and explosives flowed, and the training area for acts of terrorism. Volunteers, usually young students of Madrassas (seminaries) were indoctrinated and brought here for training, many of them from as far as Southern Punjab. To Baitullah were dispatched twenty advisers, the leader’s name remains a mystery, though he is described as a tall, educated Arab, with a towering personality.

It was soon discovered that the Al Qaeda representation in Baitullah’s region was overkill. Baitullah was the astute leader but he was ably assisted by three very capable henchmen; Qari Raees, Hakeemullah (who later succeeded him), and Waheed. Very soon these three had divided responsibilities of different training camps, and administration, indoctrination as well as recruitment. The leader of the Al Qaeda advisers left after six months or so, and left behind three representatives for advice on tricky operations.

Baitullah was a wily individual who is reputed to always hedge his bets. Among the Mahsuds, his tribesmen, he was reputed to be a CIA agent. They offer the following facts as evidence: a) he had far more ready cash in dollars than any other, but this is inconclusive; b) that he had very sophisticated communication equipment---a question mark; c) that for many months the US drones would hit only those Mahsud militants who operated against the US in Afghanistan and opposed Baitullah’s decision to attack Pakistan; and that those hit by drones had invariable been visited by Baitullah on a pacifying mission (these stupid tribesmen aren’t that stupid, even they know about homing devices). Finally, the ISI had, on numerous occasions provided accurate actionable intelligence on Baitullah to the CIA requesting a hit, which never materialized. Until finally, he outlived his usefulness and was wiped out, long with his wife, by a drone.

When the Pakistan army recaptured Swat from Fazlullah they captured diaries of some Taliban leaders; among them was a diary of Muslim Khan, the spokesman for Fazlullah, the leader of the Taliban in Swat. I managed to lay my hands on some of them, including a diary of someone who styled himself as "Khalid bin al Walid" - an obvious pseudonym. While most of the diaries typically related the events of the day, a portion of each diary was dedicated as a training manual. And this is what made them so interesting. The diaries contain detailed instructions on how to conduct urban and rural guerrilla warfare. They included instructions on carrying out an ambush, how to evade one if possible and how to fight through one. They listed combatants under loose command structures for certain operations. The diaries included analyses of the successes and failures of operations, with notes on the casualties taken and inflicted. They record why a commander has been changed, occasionally for his inefficiency, but more frequently to find the most appropriate individual for each task.

Details of each operation and the instructions on how to reorganize after success or failure provide fascinating insight into their training and understanding of guerrilla operations. Occasional glimpses of Sun Tzu and Che Guevara's teachings come through. But what the diaries resemble most are the "training manuals" captured from the rebel Contras that Nicaragua took before the International Court of Justice to present its case against the US.

While fascinating, the diaries might not be a cause for surprise; except to wonder how they received such detailed training. The remaining instructions contained in the diaries of leaders as well as "soldiers" is certainly cause for concern. These instructions are exquisite in their detail on how to make explosive devices; many with the most innocuous components like sugar, cooking oil, aluminium, Vaseline, coffee, charcoal, salt and even black seed. In each case, other explosive components are included and in each case all composites are spelt out in milligrams - frequently with diagrams. Instructions on the use of TNT, RDX, and plastique are also included with a ratio for each component.

Instructions also detail how improvised explosive devices (IEDs) can be triggered; methods range from conventional fuses to improvised ones from rope soaked in fuel, to those made from a hand-wound wrist watch, an alarm clock and even a mobile phone. Instructions also include which devices can be used for which type of IED. They include how charges can be shaped for maximizing effect in a given direction and even instructions on biological precautions if there is prolonged exposure to certain chemicals - when to drink a glass of milk or a quart of yogurt. Needless to say, instructions also include details on the sensitivity of each kind of IED, what might trigger each prematurely and its lifespan. Everything necessary has been covered in the minutest detail imaginable, many of which were unknown to me until I read the diaries.

While all this information is available on the internet, it requires a specialist to understand and synthesize it. Often the diaries necessitate knowledge of chemistry, physics and biology and a combination of that knowledge would be developed for a specific purposes: training people to operate behind enemy lines and make do with whatever is available. Such information could also be gathered by a scientist in the pay of an organization like al Qa'eda. But even a chemist would need to be pointed in the right direction to collect the relevant information on physics and biology. This information had to come from an intelligence agency.

Similar material was recovered from South Waziristan, though in far lesser quantity, since the Mahsuds managed to escape across the Durand Line in far greater numbers. All captured Taliban from both areas tell the same story: “These were brought by a handful of people from Afghanistan (Al Qaeda advisers), photocopied and distributed to us. Our day started with a recitation of the Holy Quran and was followed by a two hour training session in combat and weapons. The rest of the day we studied these books (training manuals) and practiced them as well.”

I am certain that CIA has been guilty of many dubious acts and I have frequently accused them of such acts. However, it is my considered opinion that the CIA would, under no circumstances release such documents to a terrorist organization. There are, however, numerous ex-CIA Black Ops personnel sitting unemployed who might be for sale. There are also ex-CIA Black Ops operatives employed by Private Security Agencies like Xe. And Xe is for sale to the highest bidder. Take your pick!

How relevant is Al Qaeda today and in the future?

It seems however, that events in the Arab countries have overtaken us. The fire is spreading and, while it can be suppressed by force but only for a breathing space. It seems that Arab peoples want their freedom and their own brand of representative government; which might not be the Anglo-Saxon democracy but one that suits their psyche.

With this storm rising, there appears to be a growing concern in the west and particularly in the US that this will give birth to Islamic extremism. After years of accusing Pakistan of harboring Al Qaeda (only months ago, Ms. Clinton made another damning accusation while in Islamabad), we now hear that it is back in force in Yemen, Bahrain, and Iraq! Only on Iraq, I must point out that, while Saddam was a Sunni despot, there was never any question of Al Qaeda taking root there during his rule. It is there indeed, but only post the US invasion.

Numerous other fears are being expressed in relation to the gathering storm among Arab nations: it could fuel a sectarian war; it could give birth to Islamic extremism, and most of all, where would our flow of oil come from?

All these apprehensions have some grains of possibility. It is entirely possible that Islamists could take over. It is also possible that Iran, watching all this with hungry eyes might grab an opportunity that could trigger sectarian strife all over the Arab turbulent region. And any turbulence will hinder the flow of oil, though not for long. Oil is their sole source of income.

However, in my view, if there is a real fear of an Islamists takeover, it is confined to Saudi Arabia; which is why King Abdullah has ordered an immediate intervention in Bahrain and is pleading with Jordan to turn down demands for reform to a democratic kingdom. Saudi Arabia has hordes of OBLs still in hiding!

In this emerging scenario, how relevant is Al Qaeda? After all, its raison d’etre was based on two premises: that the present governments in all Muslim countries, beginning with Arabs are un-Islamic/oppressive and that they are pro-US. The revolution(s) sweeping across Arabia and Africa are based on the same reasons and, whichever form of government emerges in each country; Islamic or some form of representative democracy, it is certainly not going to be opening doors to Al Qaeda.

Our Taliban in Pakistan will make us sweat for some years yet and, if (rather when) reformation finally does sweep across the region, there might be a reformative revolution in Pakistan as well.

It seemed to me that even before Osama’s elimination, Al Qaeda has been in its dying throes; because of forces beyond its control. All the more reason then, for the US to pack up and quit Afghanistan. Their basic apprehension that a Taliban return in Afghanistan might herald the return of Al Qaeda seems to have disappeared. Other ghosts and specters now loom on the American horizon. Time to go chase them!



Shaukat Qadir is a retired brigadier and a former president of the Islamabad Policy Research Institute. He can be reached at shaukatq@gmail.com

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Sri Lanka Talawakelle Tea buoyed by rubber, hydro power

May 02, 2011 (LBO) - Sri Lanka's Talawakelle Tea Estates said March 2011 quarter net profit rose nine percent to 72 million rupees from a year ago with lower tea earnings offset by gains from rubber and hydro power.


Total group revenue of the firm, part of the Hayleys conglomerate, rose five percent to 743 million rupees from a year ago, a stock exchange filing said.

The results showed a reduction in costs with finance costs being halved. Basic earnings per share for the March 2011 quarter were 3.47 rupees against 2.51 rupees a year ago.

Revenue from tea during the quarter was static at 683 million rupees while profit fell 17 percent to 102 million rupees, with bad weather affecting the quality of tea made during the period.

Revenue from the group's rubber estates almost doubled to 19 million rupees with profit soaring 164 percent to 13 million rupees as the firm made gains on the global commodities boom.

Profits from mini-hydro power soared 319 percent to 29 million rupees during the quarter from seven million.
 
source - www.lbo.lk

Impact of Bin Laden’s Death in South Asia



Iraqis in Baghdad watch a news broadcast on Arabic satellite news channel Al-Arabiya showing an image which has been circulating on the internet and allegedly show the body of Al-Qaeda mastermind Osama bin Ladan. Sabah Arar /AFP - Getty Images

by Rahul K. Bhonsle


(May 02, New Delhi, Sri Lanka Guardian) The American forces fighting the global war on terror have achieved the most significant counter terror success in a decade, targeting and eliminating Osama Bin Laden in his lair in Abottabad close to Pakistan’s capital, Islamabad. The North Western region of the Sub Continent, spanning Afghanistan and Pakistan has been long suspected to be harbouring Bin laden and his coterie including his number two Ayman al Zawahiri. While they may have had limited contact with the world after 9/11 except for videos streaming at regular intervals, the influence of Bin Laden on the violent Islamic extremist movement has been seminal. He has been the symbol of Salafi radicalism spread across the World and his dreams of a Caliphate has inspired many from Bali to London and New York resulting in the death of thousands.

The American pursuit of Bin Laden is truly extraordinary and is a new chapter in counter terrorism history. The credit must go to President Barack Obama as the White House release indicates, the President chaired no fewer than five National Security Council meetings from the middle of March -- March 14th, March 29th, April 12th, April 19th, and April 28th before giving the final order for the operation on April 29th.

This was a no doubt a high risk operation, memories of the one launched in Iran by President Jimmy Carter in the same month April in 1980 and had led to a humiliating failure with Carter losing the Presidential elections may have haunted Obama. He faces his own test in November 2012. However given that the nature of operation was different and American Special Forces combat capability has considerably increased, the assurance of success was higher. This classic operation will be studied many times over by analysts and historians alike

What is likely to be the impact of elimination of Osama from the terrorist landscape? Firstly the Al Qaeda movement has lost its inspirational head, while the group and subsidiaries will continue to carry out terrorist attacks particularly in West Asia and North Africa, the larger traction for establishing a Caliphate has lost sting with impact felt in the long term. Secondly terrorism and terrorist attacks will continue as there are other dimensions to this phenomenon which has assumed hydra headed proportions. Thirdly, terrorism in Af Pak will not be impacted given that the two main groupings Taliban in Afghanistan and Tehreek e Taliban in Pakistan are not dependent on the al Qaeda be it for support, sustenance or ideology. Fourthly Lashkar E Taiyyaba which has India as the main target is unlikely to shift track, thus New Delhi will have to remain vigilant. Finally the al Qaeda particularly Ayman Zawahiri will order a retaliatory attack on America not just the main land but also assets across the World at large.

How would it impact Pakistan’s take on terrorism? Here again there is unlikely to be a shift in Pakistani policy of running with the hare and hunting with the hounds, in fact the Army and the ISI may take this as a humiliation and continue to remain uncooperative with the United States. So Bin Laden is gone but the world and the region will not be a safe place, not at least immediately. We have a long fight ahead of us and cannot let down our guard, for unlike the death of Hitler at the end of the Second World Way after his military had been defeated Bin Laden's forces are still in being and will carry on the biddings of their former master, eternal vigilance will therefore continue to be the price of liberty.

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John Keells Tea Market Report: Record tea crop in March

Brighter Nuwara Eliya BOP/BOPFs although lower to previous week is well above an average Western BOP/BOPFs selling above Rs 400. The plainer Nuwara Eliya's however were of a much weaker market.

The Sri Lanka tea crop for March at 33.3 Mkgs. is the highest on record surpassing the previous best of 32.4 Mkgs. in 2008. High and Medium elevations have recorded increases of 80 percent and 72 percent respectively compared to the corresponding months of 2010 with Low Growns recording a 50 percent increase. The phenomenal crop increases in March has helped, recoup the crop deficit of 9.3 Mkgs, as at end February in addition to registering a 2.9 Mkgs. surplus to end March. The main contributory factor for the High crop intakes from the High and Medium elevations in March was on account of useful and frequent rains experienced in the first quarter of the year which is a period normally associated with dry weather. With such high crops presently being experienced it is unlikely that we would see a rush in the months of April, May.

In view of high crops in March the weekly auction quantities in April continued to rise with the Ex Estate sale of May 11, exceeding the 1.8 Mkgs. The large crops coupled with a drop in product quality have taken a toll on prices at last week's Ex Estate sale comprising of 1.6 Mkgs. Both Western High Grown BOP/BOPFs met with lower demand with prices declining Rs 20 to 30 on average. Brighter Nuwara Eliya BOP/BOPFs although lower to previous week is well above an average Western BOP/BOPFs selling above Rs 400. The plainer Nuwara Eliya's however were of a much weaker market. Uva's too were much lower declining Rs 20 to Rs 30 with a fair weight remaining unsold. Best CTC PF1s were firm to a little irregular, whilst others tended lower. High and Medium types too were Rs 15 to Rs 20 easier.

A large volume of 3.8 Mkgs. of Low Growns came under the hammer last week was the largest quantity on offer for 2011. There was widespread demand, however at lower levels. Hence prices declined Rs 5 to Rs 10 particularly for Pekoes and OPAs. Most BOP1s too declined at times fairly sharply. In the Small Leaf category the BOP SP continued to sell well, however the Below Best FBOPs and FBOPF1s and most Tippy varieties declined in value.

There was excellent demand from Russia, whilst Iran, Iraq, Libya, Syria and Saudi Arabia lent useful support.

Western Teas

Select Best BOPs declined Rs 20 to Rs 30, other good invoices shed Rs 10 to Rs 15, Below Best sorts eased Rs 10 to Rs 15 and more at times, plainer varieties shed Rs 10 to Rs 15 on average. Select Best BOPFs shed Rs 15 to Rs 20 on average, other good invoices declined Rs 10 to Rs 15 and more, Below Best sorts shed Rs 15 to Rs 20 and more as the sale progressed, plainer varieties eased Rs 15 to Rs 20 on average. Medium BOP/BOPFs declined Rs 20 to Rs 30 on average.

Nuwara Eliya Teas

Brighter BOPs declined Rs 20 to Rs 30, others were substantially lower. A few bright BOPFs sold well on special inquiry, most others declined substantially.

Uva Teas

BOPs declined Rs 15 to Rs 20 and more at times. BOPFs shed Rs 20 to Rs 30 on average. Udapussellawa BOPs eased Rs 20 to Rs 30 and more for the poor leaf sorts. BOPFs shed Rs 30 to Rs 40 on average.

CTC Teas

Select Best Low Grown PF1s were firm to marginally easier, others declined Rs 20. BP1s shed Rs 20 on average. High and Medium PF1s declined Rs 20 to Rs 25. BP1s eased Rs 10 to Rs 20 on average.

Low Growns

Fair demand. Select Best OP1s maintained last levels, selected clean invoices appreciated Rs 5 to Rs 10, Below Best and poor sorts were irregularly lower by Rs 5 to Rs 10 Select Best BOP1s shed Rs 20 to Rs 40, Best types were steady, Below Best and poor sorts were lower by Rs.5/- to Rs 10. Select Best OPs gained Rs 5 to Rs 10, however the Best and Below Best types declined Rs 5 to Rs 10 poor sorts declined Rs 10 to Rs 15. Select Best OPAs appreciated Rs 5 to Rs 10, Best types were mainly firm, Below Best and poor sorts were irregularly lower by Rs 5 to Rs 10. Select Best Pekoes appreciated Rs 10 to Rs 20 however the balance tended lower by Rs 5 to Rs 10. Shotty Pekoe1s eased Rs 10 on average, Best types too were lower by Rs 10 to Rs 15, Below Best and poor sorts were irregularly lower by Rs 5 to Rs 10. Select Best and Best BOP/BOP.SPs maintained last levels, Below Best and poorer sorts eased Rs 5 to Rs 10. A few well made wiry FBOPs advanced Rs 10 to Rs 15 and at times more, however the others remained firm. Best FBOPs gained Rs 5 to Rs 10, Below Best and poorer sorts met with irregular demand and were mostly lower by Rs 5 to Rs 10. Select Best FF1s maintained last levels, Below Best types eased Rs 5 to Rs 8, poorer sorts declined Rs 5 to Rs 10. Select Best tippy varieties met with good demand and advanced a few rupees above last, Below Best and Best types met with irregular demand, poorer sorts shed Rs 10 to Rs 20.

Off Grades

Select Best liquoring Fngs1s were lower by Rs 10 to Rs 15, while Below Best and poorer sorts depreciated by Rs 20 and more at times. Select Best and Best BMs depreciated Rs 5, while poorer sorts were lower by Rs 10 from last levels.

All BPs depreciated Rs 10 and more at times. All Low Grown Fngs depreciated Rs 10 to Rs 15. Select Best BOP1As along with the Best declined Rs 10 to Rs 15, Below Best too eased by similar margin, poorer sorts too were firm to lower by Rs. 10/- to Rs.20/-

Dust

Select Best Dust1s declined Rs 10 to Rs 15, while the Best Dust1s declined Rs 20 to Rs 30, Below Best types too declined Rs 30 to Rs 35, while the poorer sorts declined further. Clean secondaries shed Rs.25/- to Rs 30, while the balance declined further. Best Low Grown Dust / Dust1s eased Rs 20 to Rs 30, while the balance declined further.

source - www.dailynews.lk

The Ban Ki-moon conspiracy

by Izeth Hussain

(May 02, Colombo, Sri Lanka Guardian) Normally the use of the term "conspiracy" denotes that a writer has a penchant for the sensational and that he cannot be taken without reservations as a serious political analyst. But the plain truth is that conspiracies abound in the world of politics, and they certainly feature in international relations as well. The Ban Ki-Moon affair is pre-eminently one of which we can scarcely make sense except on the hypothesis of a conspiracy. The man was a bureaucrat for decades, and like outstandingly successful bureaucrats all over the world he had to be a conformist, an adept at toeing the line, incapable of thinking outside the box, and with inordinate respect for power and hierarchy. Furthermore, he was a South Korean diplomat for decades, which means that he would always have had to bear in mind that going up the ladder would have required that Washington had nothing against him. We must also bear in mind that after Boutros-Ghali the US resolved that no one would be tolerable as UN Secretary General unless he could be trusted to show respect for the power of the big big powers of the world, notably the US.

Ban Ki-Moon antics

How, then, has it come about that this little man has engaged in antics that have deeply upset us in Sri Lanka for several weeks? He may have been within his rights in appointing a three-member panel to advise him on alleged war crimes committed in Sri Lanka. But it is questionable whether he can go further, for which he has no UN mandate. Obviously, powerful forces are arrayed behind him, one of which is certainly the US as suggested by some seeming coincidences. Another is Britain, because it is known that where the American juggernaut goes, the British poodle follows. They are the forces in the conspiracy behind the Ban Ki-Moon antics, about which I believe there will be widespread agreement both within and outside Sri Lanka. But I want to go much further and suggest, heretically, that the other power involved in the conspiracy is India.

"  There are some things that we must bear in mind in relation to the Tamil Nadu factor in Delhi’s politics. India is not the conventional nation state which coheres for the most part around a major ethnic group. It consists of a huge multiplicity of ethnic groups, languages, religions, regional cultures etc, far more than in the case of Switzerland or any other country, so that Indian unity seems an anomaly. It has been plagued by what Indians used to call "  fissiparous tendencies"   right from the inception".
 ____________________________

At this point, I must state that no responsible Sri Lankan should do anything, particularly at this juncture, that could conceivably provoke anti-Indian hysteria in Sri Lanka. But, a realistic approach to the Ban Ki-Moon affair requires that India be regarded as a member of the conspiracy, at the very least as a possibility. We can take it that India has far more accurate and reliable information about what transpired in the final phases of the war than any other power. How, then, explain the thunderous silence over a long period from our most sympathetic, most reliable, and most powerful ally? The conclusion seems inescapable that India had found it politic to maintain that thunderous silence for reasons that it has chosen not to avow. I believe further that when those reasons are avowed, or they come to be understood, the international community as a whole – most certainly the Western powers – will regard the conspiracy as a benign one, with India’s role having behind it benign intentions towards Sri Lanka and the rest of the world.

The important point about the hypothesised partners to the conspiracy is that there is a convergence of interests that brings them together. All three are front-rank players in the new world order that is taking shape, together with Russia, China, Japan, Western Europe, and others such as notably Brazil to follow. Broadly speaking the new world order is to be established on democracy as the ideal form of governance, with a special focus on human rights. The problem about the new world order is that it has as its obverse side the new imperialism, a case which I have been arguing in earlier articles and which I cannot fully address here. In addition to being a front-rank player in shaping the new world order together with the US and Britain, India has a very special interest: it is to establish a stable and abiding political solution to Sri Lanka’s Tamil ethnic problem on the basis of devolution. We can take it that the US and Britain, as well as Western Europe, are deeply sympathetic towards that objective because it would be fully consistent with the new world order, while the others are probably ambivalent about it.

Human rights

I will now try to make sense of the Ban Ki-Moon affair in terms of the paradigm that I have very briefly sketched out above. The Westerners, who have been the most in earnest in improving human rights standards, have had much difficulty in utilising the UN for that and allied purposes, being sometimes forced to intervene in other countries without UN sanction. Russia and China can use their vetoes in the Security Council. Both countries have unsavoury human rights records, and both have serious minorities’ problems, Russia in particular having a grotesque record in Chechnya. In the Human Rights Council in Geneva also effective action can often be blocked by third world countries with unsavoury human rights records and which are not famous for fair and equal treatment of the minorities.

In that context, the Advisory Panel’s Report can be seen as a brilliantly successful outcome of a strategy aimed at circumventing the UN, at least to an important extent. True, the Report does not have a UN mandate behind it, but it is in the public domain and Sri Lanka has been effectively put in the dock. Other countries can make up their minds about the validity or otherwise of the supposed findings in the Report, taking into account of course the response of the SL Government. It is not clear what kind of action could follow. What is clear, however, is that it would be foolish to underestimate the power that can be deployed by the rich and powerful countries of the world, bearing in mind the economic and other vulnerability of many of the Third World countries, and bearing in mind also that Russia and China have to give priority to their own interests which may sometimes require compromises with the West. It does not seem excessive therefore to say that an eagle is poised over Sri Lanka prepared to swoop and strike.

International community

I come now to India’s very special interest to which I alluded above. It arises out of the fact that what happens to the Tamils in Sri Lanka – what happens in a negative sense – causes a fall-out in Tamil Nadu. It can cause restiveness there, or go further to the making of demands that Delhi intervene to safeguard the legitimate interests of the SL Tamils. It can go even further than that and theoretically lead to demands for a separate Tamil Nadu state, or - according to a recent statement by an influential Tamil Nadu politician – to the demand that India take action to break up Sri Lanka as happened to Pakistan. India can, therefore, claim a legitimate interest in what happens to the SL Tamils. Most Sri Lankans would refuse to recognise that claim, but evidently the international community accepts it as shown for instance by the fact that the 1987 air-drop did not lead to condemnation of India for violation of international law and aggression against Sri Lanka. Only Japan made a mild demur by stating that India had ‘transgressed’ international law. A recent development should illuminate us about the legitimacy of the Indian claim: as a consequence of the earthquakes in Japan we are now concerned that nuclear reactors in South India can leak with terrible fall-out in Sri Lanka. We, therefore, could have a legitimate interest in a development within India. Likewise, we should accept that India could have a legitimate interest in what happens within Sri Lanka.

Some Sri Lankans have in recent times come to believe that the Tamil Nadu economy is booming so gloriously that most of the people there have lost all interest in what happens to the Tamils here. It may well be so, but sometimes what counts is not what the people want but what the politicians want. At the moment Jayalalitha, Karunanidhi, and other TN politicians are making escalating statements against Sri Lanka with the polls in mind. What really matters however is that Delhi has perforce to engage in futurological exercises to guess what could happen if Sri Lanka’s ethnic problem remains politically unsolved. It is normal in futurological exercises to extrapolate past and present trends into the future, which is recognised as a legitimate procedure because usually what has been happening continues to happen. But sometimes the totally unexpected erupts with terrifying force. The best example is of course that of the collapse of Soviet and East European communism, and the break-up of the Soviet Union. All the experts were confounded, except for just two who – as far as I know – correctly forecast what was going to happen – Patrick Moynihan in the US and Emmanuel Todd in France.

There are some things that we must bear in mind in relation to the Tamil Nadu factor in Delhi’s politics. India is not the conventional nation state which coheres for the most part around a major ethnic group. It consists of a huge multiplicity of ethnic groups, languages, religions, regional cultures etc, far more than in the case of Switzerland or any other country, so that Indian unity seems an anomaly. It has been plagued by what Indians used to call "fissiparous tendencies" right from the inception. The Kashmir problem and the separatist struggles in the North East have persisted for decades. Obviously, Pakistan would like to see the break-up of India, and so may other powers in time to come. It has to be expected therefore that any sense of alienation in Tamil Nadu over the treatment of SL Tamils, and the perception that India is not responding adequately, is not something that Delhi can ever afford to ignore. We must face up to two facts. India has a legitimate interest in how Tamils are treated in Sri Lanka, which I believe is recognised by the international community as a whole – though of course that legitimate interest can morph into bullying and unwarranted interference. The second fact is that it is not just any legitimate interest that we are concerned with here, but – since it concerns India’s survival as a unity – a vital and primordial interest.

Conspiracy

According to the argument that I have been developing above it would be mistaken to give primary importance to Ban Ki-Moon, a dancing puppet, rather than to those who could be manipulating the strings. I have hypothesised a conspiracy in which the actors are the US, Britain, and India. The US has been known to be supportive of the Ban Ki-Moon Panel for several weeks, and according to The Island reports of yesterday and today, April 29, the US and Britain assert the identical position that accountability and ethnic reconciliation have to go together and that action should be taken in pursuance of the Report. Most important of all is the Delhi Foreign Ministry statement (The Island of April 28) which included the following, "The issues raised in the report need to be studied carefully. As a first step, we intend to engage with the government of Sri Lanka on the issues contained in the report." Russia has declared that it would use the veto should it become necessary, but apart from that there appear to have been no international governmental reactions to the Report.

It would be to labour the obvious to say that we should now move seriously towards a political solution of the ethnic problem, with the concurrence of India – something which has to be handled diplomatically to avoid rousing anti-Indian hysteria. The 13th Amendment still seems to be valid under international law. In any case India wants a solution on the basis of devolution, and that seems to be the problem because the Government has given the impression that it has developed an allergy to devolution. Modifications of 13A may be possible, and so might other options. But it is not necessary to discuss them here because what is crucial now is to establish that the Government is really serious about reaching a political solution. This is crucial because the Government has also given the impression of prevaricating by talking for two years about a home-grown solution without doing anything about it. Such a solution – or at least a basis for talks – is already available in the form of the year 2000 devolution proposal which got the concurrence of the major parties. That provides the basis for a home-grown solution because it was not formulated under pressure from India or anyone else.

Charges and recriminations

If the reading provided in this article is correct, we can expect the pressure for an international inquiry – or indeed for any serious inquiry – to ease or cease altogether once the Government establishes its credibility about really moving towards a political solution. There are two major reasons for this. One arises from the fact that any serious enquiry necessarily has to be a very protracted one, leading to charges and counter-charges and recriminations, and possibly rousing undying hatreds. All that will necessarily mean that a political solution and ethnic reconciliation will have to go into abeyance for many years. Can anyone in his right mind be really confident about the eventual outcome? It could well be a further bout of war. Does the international community, by which I mean the UN membership as a whole, really want that for Sri Lanka, a small country that is incapable of harming any one but itself? It would surely make better sense to go for a political solution now, and some measure of ethnic reconciliation before holding a serious enquiry.

The second reason why we could expect an easing of pressure if we are seen to be moving seriously towards a political solution is that while the Ban Ki-Moon conspiracy can be seen positively in the context of moves to promote a New World Order, it can also be seen negatively as an exercise in the New Imperialism. The Sri Lankan media and the public have been relentlessly making charges of double standards, and there has been no reply at all. The ugly truth is that there is one law for the rich and powerful, and another for the poor and weak, and that surely is at the foundation of all imperialism past and present. It cannot be at the foundation of a New World Order worth the name. So, while the rich and powerful can very effectively deploy their power against small vulnerable countries such as Sri Lanka, they cannot do so with an easy conscience, at least not in the present case.

In the present case, it is crucial to draw a distinction between two categories of war crimes and human rights violations. One consists of what was done in Rwanda, Kosovo, and Darfur, where they were of so outrageous an order that no one with an average moral sense could object to international preventive and punitive action. The other consists of war crimes and human rights violations that take place inevitably in every large scale war. We should bear in mind what the greatest authority on war, Clausewitz, has to say on war in general: "Philanthropic people can easily imagine that there is a way of contriving to disarm and defeat the adversary without shedding too much blood. … It is an error which should be eliminated … We cannot introduce a principle of moderation into the realm of war without committing an absurdity. War is an act of violence and there is no limit to the manifestation of that violence." Jean Bacon, in a brilliant book the title of which I am not competent enough to translate accurately, provides that quotation from Clausewitz and adds about the rules of war, "In the course of the last two world wars, every solemn undertaking given by the great powers has been violated, without exception." So, let not the great powers of today be overly censorious about alleged war crimes in Sri Lanka. Let them be content if Sri Lanka now moves seriously towards a political solution.

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HNB Assurance on capital expansion

Sanjeevi Jayasuriya


The market structure of the insurance industry is favourable for the policy holders and potential customers where large number of players compete for a growing market share.

The insurance industrialists need to focus their attention in market segmentation for better performance, HNB Assurance Managing Director Manjula de Silva said.

The insurance companies need to differentiate and this will lead to efficient market penetration supporting customer perspective, he said at the first ever investor forum of HNB Assurance held on Friday in Colombo.

The segregation of life and general insurance businesses will enable consolidation and thereby increase penetration. The insurance penetration has marginally increased last year compared to the year before from 10.4 percent to 10.9 percent.

It is important to change the mindset of potential customers regarding the concept of insurance where stressing the fact that it is a protection and not an investment.

Though an investment component is there, the core is a cover against risk, he said.

The company has a capital expansion plan in meeting the Insurance Board of Sri Lanka (IBSL) requirement and expect this to support faster growth.

The capital infusion will be utilized in branch expansion efforts, system upgrade and brand building.

The stated capital will be increased three fold from Rs 375 million to Rs 1.17 billion when this expansion plan is in place, he said.

“The company’s main focus will be the retail and small policy holders where higher return could be generated.

It is profitable to have this type of clients and we also will be looking at corporate clients in a selective way to contribute to the top and bottom line.

“We will emphazise on consistent performance in both top and bottom lines and acceleration of growth momentum,” de Silva said.

source - www.dailynews.lk

On the fast-track to disaster?

by Sumanasiri Liyanage

(May 02, Kandy, Sri Lanka Guardian) Sometime back I had a brief chat with a UPFA MP who was made a minister in the last cabinet reshuffle about the economic policies of the UPFA government. Although he claims to be a Marxist, the question he had posed to me was about the issue of how to reduce the budget deficit by increasing government revenue. Although political economists recognise the adverse consequences of persistent budget deficit, they do not, as neo-liberal economists do, analyse economic issues solely from the prism of budgetary management especially in an underdeveloped country. A recent IMF report on Sri Lankan economy gives the impression that the fundamentals of the Sri Lankan economy are sound and the only worry has been the inability of the government to maintain fiscal deficit at a reasonable level.

Let me paraphrase my answer to the question posed by the UPFA MP. I told him that although the broad contours of the economic policies underlined in Mahinda Chinthanaya were appropriate for post-war economic development, the UPFA government has no strategic plan to operationalize those policies. In the absence of such a strategic plan, I told him, the talks on the budget and how to increase revenue would be a futile discussion and broad ideas expressed in MC would eventually be reduced to mere rhetoric. He responded that there was a plan but it was known only to Dr. P. B. Jayasundara, Secretary to the Treasury. As I emphasised and reemphasized in my previous notes, the UPFA government runs the economy with the assumption that the day-to-day management of the economy would eventually produce economic development. I call this version of neo-liberal economics as it is expressed in Sri Lanka PBJconomics. Dr P B Jayasundara, the Secretary to the Treasury and to the Ministry of Economic Development may be a good fiscal manager, but definitely a bad development economist. Let me elaborate on my argument.




There are two motives behind this new tax structure.
First is, of course, the pressure of imports on the trade balance.
It has been forced to reverse its decision one year later.
 Second explanation is the linkage between commercial capital,
bureaucrats and politicians of the ruling coalition.
A good example for incorrect economic policies of the UPFA government is its recent announcement of tax on motor vehicle. The Island reported: "Taxes on certain imported vehicles have been raised less than a year since they were significantly slashed as the government comes to terms with an extremely challenging fiscal position and traders’ view that imports had ‘gone out of hand’" (April 26, 2011). When the tax on vehicle imports was slashed soon after the parliamentary election, I wrote that it was not only a reflection of the absence of an economic plan but also the susceptibility of the government to the pressure of second-hand vehicle importers. In that article, I also projected that the government would increase import tax on motor vehicle after importers of motor vehicles stockpile a substantial number of cars, vans and other vehicles in their yards. So, one may wonder whether the recent decision of the Treasury to increase duty is aimed at giving some windfall profit to the importers of motor vehicles. The Island notes: "An executive of a top vehicle importing firm, not wanting to be named, said vehicle imports had gone out of hand since taxes were slashed last June."There are too many vehicles coming in and our roads cannot absorb them all. After taxes were reduced last year, vehicle imports soared and kind of got out of hand and I think by increasing taxes the government is trying to attempt to apply the brakes. With prices increasing, middle-income groups maybe discouraged from purchasing vehicles," he said." So it was clear that the recent decision was taken with tacit consent on the vehicle importers.

What does this signify? In underdeveloped economies, one of the principal reasons why the economy remains underdeveloped is that in these countries the economies have been continuously dominated by commercial capital. As a result, both the political elites and bureaucrats entangle in series of networks and linkages with the class of commercial capitalists. The commercial capital and bureaucratic capital are intermingled and dominate the sphere of economy and society. The hegemony of commercial capital shows the short-term day-to-day character of the economic policies formulated by Dr. Jayasundara. And these policies focus not on economic development but on the condition of the budget office.

There is another significant difference as regards the new tax structure this time. Oftentimes, taxes are increased for all categories of vehicles. However, this time, tax was increased only on vehicles used by the middle class, professionals etc. "Petrol cars with engine capacities below 1,000cc would see total taxes increase from 95 percent to 120 percent while vehicles from 1000 to 1,600 cc will see total taxes increase from 119 to 128 percent, a statement from the Ministry of Finance and Planning said" (The Island). Moreover, import taxes on three wheelers were also increased. "Petrol three wheelers will see taxes increase from 38 percent to 50 percent while diesel three wheelers will see taxes increase to 60 percent." Politicians oftentimes talk about greener Sri Lanka. However, when the new vehicle tax structure was prepared, no concern was given to the environmental aspect of the issue. Hence, taxes on hybrid cars were significantly moved upward. "According to the Ministry of Finance and Planning, hybrid cars with engine capacities below 2,000cc will see total duties go up from 38 per cent to almost 50 per cent. Hybrids between 2,000 to 3000 cc will see total duties reach nearly 75 per cent and vehicles above 3,000 cc to100 per cent." The bias against middle class would adversely affect the electoral base of the UPFA government.

There are two motives behind this new tax structure. First is, of course, the pressure of imports on the trade balance. This, in fact, had to be taken into consideration when the Treasury decided to slash import taxes on vehicles. It has been forced to reverse its decision one year later. Second explanation is the linkage between commercial capital, bureaucrats and politicians of the ruling coalition. Of course, new space has been created in Sri Lanka for economic growth. However, to make that space available to economic development in proper sense, new policy formulation is imperative.


(Dr. Liyanage teaches political economy at the University of Peradeniya. He can be reached sumane_l@yahoo.com )


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Hotel sector to play wider role

The way forward of the tourism industry in Sri Lanka and the hotel sector’s growth prospects appear very promising, particularly in the short to medium term. The outlook on the industry has now completely turned around, and it is expected to play a wider role in Sri Lanka’s future economic development.


With tourist arrivals into the country recording a high of over 650,000 last year, the hotel sector recorded an average occupancy rate of nearly 70 percent. During peak periods, occupancy levels exceeded 90 percent. Increased demand has enabled hotel operators to elevate their room rates, leading to stronger revenues and broader margins for most establishments, the RAM Ratings Report on Hotel Sector said.

With tourist arrivals into the country recording a high of over 650,000 last year, the hotel sector recorded an average occupancy rate of nearly 70 percent.

There are several key challenges that have been identified the sector may face when attempting to capitalize on the opportunities presented by the tourism boom. While banks are willing to lend to established hotels that are part of larger diversified groups, stand-alone hotel owners, particularly small and medium-sized establishments, face funding constraints over the construction of new hotels and the refurbishment or upgrading of existing facilities.

An additional challenge lies in the area of human resource (HR). At present, employees in the hotel and tourism sector come up to around 300,000; industry experts estimate that close to 1.5 million employees would be required to cater to the government’s targeted tourist arrivals by 2016. Hence, the country needs an integrated framework for HR development in the hotel industry.

According to the report foreigners make up the majority of the patrons at Sri Lankan tourist hotels, contributing nearly 70 percent of their total room nights. In the first half of 2010, holidaymakers accounted for 79 percent of the country’s tourist arrivals, underlining Sri Lanka’s dependence on this segment that is highly vulnerable to global macroeconomic conditions and events.

Business travellers comprised around 17 percent of the tourists that arrived in the same period. Notably, striking a better balance between leisure and business travellers would enable hotels to smoothen out the seasonality factor in their revenue as the number of holiday makers typically peak in November and December. A tourist’s average stay in a hotel, meanwhile, came up to around 9 days in 2009. This has remained relatively unchanged in the past few years.

Hotels had primarily survived on domestic demand, which had somewhat compensated for the lack of tourist arrivals. In particular, domestic patrons had dominated room nights in supplementary establishments. Local demand had also supported hotels’ food and beverage revenue.

“According to plans already announced by local and foreign hotel operators, 1,000 rooms will be added over the medium term; however there is still insufficient rooms to cater to the expected influx of tourists. The completion of hotels for refurbishment could tighten supply further in the short term and against this backdrop, we believe that hotels will continue enjoying high occupancy levels and lucrative rates in the short to medium term,” the report said.

In line with the industry boom, many foreign and local hotel operators have already expressed their intention to build new properties in the country. Hong Kong-based Shangri-La Asia Ltd is building a 500-room luxury hotel in Colombo at a cost of US $ 500 million; China National Aero-Technology Import and Export Corporation is planning another US $ 500 million hotel development adjacent to the Shangri-la’s site.

Several local companies have also announced plans to build new properties as well as to increase their capacity and refurbish existing facilities; these include John Keells Holdings PLC, Aitken Spence PLC, Softlogic Holdings, Lanka Orix Leasing Company and Sierra Cables. On a related note, higher-quality accommodations are necessary for Sri Lanka to attract foreign big spenders; the SLTDA estimates that only around 6,000 of the currently available rooms are of medium to high quality. C de S

source - www.dailynews.lk

Pakistan says US conducted operation


(May 02, Islamabad, Sri Lanka Guardian) Pakistan on Monday confirmed the death of al-Qaeda chief Osama bin Laden in an “intelligence-driven military operation” conducted by the US army, in the early hours at Abbottabad.

A statement from the Foreign Office said the most wanted terrorist mastermind was killed in an operation “conducted by the US forces in accordance with declared US policy that Osama bin Ladin will be eliminated in a direct action by the US forces, wherever found in the world.”

The Foreign Office termed it “a major setback to terrorist organizations around the world.” The statement said President Obama telephoned President Zardari on the successful US operation which resulted in killing of Osama bin Ladin.

Osama bin Ladin’s death illustrates the resolve of the international community including Pakistan to fight and eliminate terrorism.

The Foreign Office statement said al-Qaeda had declared war on Pakistan. Scores of Al-Qaeda sponsored terrorist attacks resulted in deaths of thousands of innocent Pakistani men, women and children.

Almost, 30,000 Pakistani civilians lost their lives in terrorist attacks in the last few years. More than 5,000 Pakistani security and armed forces officials have been martyred in Pakistan’s campaign against Al-Qaeda, other terrorist organizations and affiliates.

Pakistan has played a significant role in efforts to eliminate terrorism.

“We have had extremely effective intelligence sharing arrangements with several intelligence agencies including that of the US. We will continue to support international efforts against terrorism.”

“It is Pakistan’s stated policy that it will not allow its soil to be used in terrorist attacks against any country. Pakistan’s political leadership, parliament, state institutions and the whole nation are fully united in their resolve to eliminate terrorism,” the statement said.

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Obama and Osama triumph: A Win-Win Outcome




New Yorkers react to news of the death of Osama bin Laden at the intersection of Church Street and Vesey Street at Ground Zero on the morning of May 2, 2011 in New York City. Bin Laden has been killed near Islamabad, Pakistan almost a decade after the terrorist attacks of Sept. 11, 2001 and his body is in possession of the United States.
by Michael Roberts

(May 02, Melbourne, Sri Lanka Guardian) The killing of Osama bin Laden is a major triumph for President Obama andUSA. It is a momentous symbolic victory. “Yes We Can” has been confirmed and underlined. It will boost Obama’s re-election chances immeasurably. The triumphalism displayed on the streets and in media outlets inUSAreveals the depths of patriotism as well as the hostility to extreme Muslim fundamentalism. Parenthetically and laconically one can note that there is no question of a war crimes charge being raised by Ban Ki Moon Incorporated against the US special forces responsible for the collateral killing of Osama’s “civilian” son and other civilians who may have died in the assault. The story of this commando strike is pictured as an “act of justice” not as an “outrage.”

This victory for Obama is also a victory for Osama. Having trod the path of mujahid in the path to Allah, he is now a shaheed at the feet of Allah. He is not fused with transcendental forces in the fashion secured by Tamil heroes/heroines past and present or Japanese kamikaze in wars past, but sits distinct as monad OSAMA bound in devotion to Allah.

He is thus immortal and his kinfolk will be mighty pleased by this sacrificial outcome – a perspective and philosophy which the vast majority of the people in the individuated West will never grasp.

This victory of the shaheed Osama will also generate repercussions and ramifications. There will be acts of vendetta directed atUSA, Americans and the West in general. The Salafi ideology will receive a boost and the failed Al Qaida objectives of overthrowing “the near enemy” and hurting “the far enemy” will receive another burst of energy as new buds spring forth in the form of Islamic youth — in the West, Middle East, Indian subcontinent, everywhere — attracted to the cause.

Salafi thinking is rhizomic (Handelman 2011) and does not require an Al Qaida fountainhead.

So, this fourth World War will simmer for decades to come.

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