Munchee Biscuit, brand of the year 2009.

Munchee biscuit brand won top place as brand of the year, while Panadol, a paracetamol product, bagged the gold for the international brand at the 8th annual Sri Lanka Institute of Marketing (SLIM) brand awards.

Ceylon’s Biscuits Limited’s Munchee also walked away with the award for the top export brand. Diva won silver and Tiara bagged bronze in the local category.

DIMO Batta, a half-truck manufactured by TATA Motors of India, distributed by Diesel and Motor Engineering Company (DIMO) won a silver in the international brand category.

Switch and bulb manufacturer Orange Electrics won Gold in Corporate Social Responsibility (CSR) brand of the year, while Munchee came in second place.

Celco’s, Mobitel and Dialog Telekom bagged gold in innovative brand of the year category. Ritzbury Chocolates, another Ceylon Biscuits brand, won the bronze in the category.

The Upahara package opened for state sector employees by Mobitel, a unit of Sri Lanka Telecom bagged gold in best new entrant of year award, while shoemaker DSI and Dialog news services, a text based new service, won silver.

Tigo name will be changed soon

The Tigo name will be changed. Emirates Telecommunication Corporation (ETC) will probably rename Tigo as Etisalat, which is their service brand name. The source further said that this re-branding exercise will be done with a large investment, but declined to comment on how much.

He said that the company is also slated to launch its 3G (third generation) network early next year. “A top Etisalat team is slated to visit the island this month and will discuss the plans for Sri Lanka,” he said, adding that the team visiting Sri Lanka will discuss mobile services and brand name together with its corporate identity change.

A Tigo source said that ETC a day after completing the sale with Millicom settled all the bank loans of Tigo, but he declined to comment on the amount that was settled.

Analysts said that Tigo’s new parent with an estimated US$ 9.1 billion net assets and a US$ 3 billion net cash inflow from operations boasts of a US$ 3 billion cash and cash equivalents at the end of this financial year. “With a parent company with such deep pockets we can assume that the tariff structure for Tigo’s operations going forward may not meet much pressure in the initial stages and could focus on capturing market share with low tariff schemes”.

Aero Sense Limited to manufacture aircraft components in Sri Lanka

BOI Sri Lanka granted investment approval for Aero Sense Limited to manufacture aircraft components for international aircraft and helicopter manufacturers. Mr. Dhammika Perera, Chairman / Director General signed the agreement on behalf of the BOI and formally presented the BOI Certificate of Registration to Mr. K. J Westman, Director of Flinth Industrial Park.

The company representing a US $ 1 million investment will manufacture 14 aircraft components for international aircraft and helicopter manufacturers. They will be establishing a state-of-the-art production facility at the Flinth Industrial Park at Kadawatha. Mr. Westman stated the main reason for Aero Sense Technologies to establish the production plant in Sri Lanka was because of the services offered by the Flinth Industrial Park.

The parent company to Aero Sense (Pvt) Limited, here in Sri Lanka is Aero Sense Technologies LLC, US. The US based Aero Sense Technologies is owned by Aero Sense Inc., US, Swedcord Development AB, Sweden and Sveritec Limited, UK.

Aero Sense Technologies capability and product technologies for the Aerospace Industry includes production of Position transducers for aircraft flight controls, Single and multi-channel linear and rotary position transducers, Inductive proximity transducers and sensors, Pressure transducers and switches for hydraulic controls, Transducers for servo systems, Force sensors for pilot control inputs, surface control and control rod load detection, Pressure transducers for fuel systems and steering and braking systems. Aero Sense provides complete transducer engineering design and development & support services. The company is dedicated in providing robust, cost effective, reliable and innovative engineering solutions

for the aviation industry. Aero Sense adherence to disciplined engineering and proven processes ensures creation of the best value and services for customers.

ODEL to go worldwide

ODEL is planning to expand it’s global presence soon.`We have expanded our business to the international arena also. At present we have a franchise agent in the Maldives and we have a good market in the Maldives. In the future we hope to expand ODEL worldwide,` ODEL officials said.

ODEL opened its newest branch at Mount Lavinia last week. ODEL CEO Otara Gunawardena said, `Opening a branch at Mount Lavinia is a milestone for ODEL and this is our eighth branch. It is the start of new phase of expansion and the first of several new stores planned to open islandwide in the immediate future. Our next branch will be opened at Moratuwa in the first week of December this year,` she said.

Gunawardena said, `ODEL always tries to support local suppliers as well and we always buy quality locally manufactured product from them.` The new store comprises more than 6,000 square feet on four floors and is packed with trendy, fast fashion for men, women and children.

The new store contains all the key departments of ODEL including Ladies, Men, Kids, and souvenir section and Backstage for glamour accessories. It also includes collections of apparel, jewellery, accessories and pet products, as well as the `Six Runs` selection for sports and casual wear and fun accessories.

`Apart from all our business activities, ODEL highly respects our community and we initiated some projects on the conservation of the environment and protection of animals`, Otara said.

Hotel Ceylon Continental up For Sale

The dominant controlling interest of the Hotel Ceylon Continental owned by business leader Nahil Wijesuriya is up for sale and a deal may be finalized within the next couple of months, he said.

“I am aggressively seeking to sell the property and hope to exit with a capital gain in about two months,” Wijesuriya said yesterday.

He strongly opposed the minimum rates enforced on star classed hotels under an Order under section 53 of the Tourism Act effective from yesterday urging that lumping all five-star hotels together and requiring them to sell their rooms at a minimum USD 75 per day was unfair and unworkable.

Wijesuriya argued that imposing the same minimum rate on newly refurbished glittering properties and old hotels like the Ceylon Continental was unfair saying “I’ll be able to sell a room only after the Cinnamon Grand and Cinnamon Lakeside are full.”

He had even sought a downgrading of the classification of his hotel in terms of the classifying criteria so that he could sell his rooms cheaper and attract custom on price, but this too has been turned down.

“I hope to exit soon and watch the scene from outside as a spectator,” he said.

Raj Rajaratnam, an equity investor charged in US for insider dealing case

Galleon group chief Raj Rajaratnam, a top equity markets investor in Sri Lanka, and five others have been charged in a 20 million US dollar insider dealing case in the United States.

Insider trading is the trading of a corporation’s stock or other securities by individuals with potential access to non-public information about the company.

Robert Moffat, a senior vice president at IBM, Rajiv Goel, an executive at Intel’s investment arm, Anil Kumar from, McKinsey & Co., a management-consulting firm, Danielle Chiesi and Mark Kurland of New Castle Partners were among others who got charged.

Tigo will be acquired by a Middle Eastern, Etisalat.

Millicom International Cellular will sell its Sri Lanka unit (Tigo) for 155 million US dollars to Etisalat, a Middle Eastern company, with the sale expected to be completed by October 20, the company said.

“We are very pleased to have agreed to sell our Sri Lanka operations to Etisalat,” Millicom chief executive Mikaek Grahne said in a statement. “Our management team there has performed very well in establishing a strong market position and I would like to thank all our employees in Sri Lanka for their contribution over the years.”

Millicom has decided to exit its Asian operations in Cambodia and Laos as well as Sri Lanka to focus on Latin America and Africa.

Colombo Five Star Hotels’ Rates Increased

With the positive response shown by foreign travelers towards Sri Lanka, Sri Lanka Tourism is set to jack up the prices of room rates in five star hotels in Colombo.

Following a discussion with the Minister of Tourism, Nandana Gunathilaka, Minister of Tourism Promotion, Faizer Mustapha and the President, the change to rates will come into effect at the end of the month. Consideration will be given to certain agreements already negotiated by the hotels.

Mr. Mustapha yesterday stated that foreign visitors to Sri Lanka increased by 28% in July. Visitors from Western Europe and South Asian markets showed a large increase compared to the year before. However, rates charged by mainstream hotels in Colombo are as low as $35, when compared to accepted international standards of $100 or more. These low rates have resulted in minimal foreign exchange being earned by the country.

“The low rates charged by the top hotels have a domino effect. The small entrepreneurs who run smaller hotels and inns are faced with no alternative to reduce their prices also to unrealistic and unprofitable levels.

According to a brochure prepared for a travel convention last November, single room rates vary from $50 to $65. “Single room rates at the Galadari were recorded at $60, the Taj Samudra at $60, Trans Asia at $50 and Cinnamon Grand $55. Double room rates were quoted at $65 for Galadari and Taj, and $60 for Trans Asia and Cinnamon Grand. These rates are too low, and have to be revised,” Mustapha said.

Binod Chaudhary to invest in SL Hotel Sector

Sri Lanka’s Jetwing leisure group is expanding abroad and building links with foreign partners, including Nepal’s Chaudhary conglomerate headed by businessman Binod Chaudhary, who is also investing in the island, a top Sri Lankan official said.

Chaudhary Group, through its unit Cinnovation, has already bought a 50 per cent stake in Royal Heritage Hotel, which owns the Jetwing nature reserve ‘Vil Uyana’ and a 49 per cent stake in Seashells Hotel, when Sri Lanka’s Hayleys group exited last month.

The Nepali conglomerate also has interests in power generation and food and beverages. Cinnovation has a presence in Sri Lanka through Taj Asia, which controls Colombo’s Taj Samudra hotel. Taj Asia is a joint venture between Cinnovation and India’s Tata connected Taj hotel division.

Jetwing is also starting the management of Indochina Hotel in Hanoi with Vietnamese partners. It has also been chasing an Indian hotel. But with the end of a 30-year war in Sri Lanka prospects at home are also looking up.

The mainstay of Sri Lanka’s leisure sector is Western European tourists. In June, tourist arrivals increased eight per cent. Britain has already relaxed the travel advisory to some parts of the war-torn island, according to the news report. “I am sure this winter will be excellent,” says Cooray. “Arrivals have increased. Our foreign partners are saying the bookings are better.”

Sril Lanka and Nepal are planning to restart direct air connection between Kathmandu and Colombo soon. The direct air link is expected to give a boost to the Nepali tourism sector as a majority of the Sri Lankans are Buddhists and love to visit Nepal — especially Lumbini — the birth-place of Lord Buddha.

Apollo Hospitals announced it’s new directors

Lanka Hospitals Corporation PLC (LHCL), the holding company of Apollo Hospitals announced its new directors to the Colombo Stock Exchange today.

Gotabhaya Rajapaksa (Defence Secretary), Pradeep Kariyawasam, Dr Nalaka Godahewa , Dr S S L Perera, Dr Ajith Amarasingh, Mr Asoka Nissanka Pathirane and Brigadier (Dr) Sanjeewa Heman Munasinghe are the new directors who will be representing Sri Lanka Insurance Corporation Limited at LHCL.

They replaced Ajit Mahendra De Silva Jayaratne, Don Harold Stassen Jayewardene (Harry Jayawardene), Lintotatge Udaya Damien Fernando, Cedric Royle Jansz, Ganearahchige Deshankar Chaminda De Silva, Kombala Withana Arachchige Udayasiri Kariyawasam and Suresh Malith Paranavithana