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PUBLISHED BY THE TIMES OF SRI LANKA IN TORONTO, CANADA VOLUME 15 – JANUARY 2012

FOREIGN DIRECT INVESTMENT (FDI) INFLOWS UP $205 MILLION IN 2011 Foreign Direct Investments (FDIs), including loans realized during the first half of 2011 had increased to US$ 413 million compared to US$ 208 million in the corresponding period of 2010. According to the report on “Recent Economic Developments” by the Central Bank of Sri Lanka, the FDI which declined during 2009 and 2010 due to the impact of the global financial crisis on foreign financial inflows, increased during the first half of 2011. The largest part of FDI inflows was attracted by the tourism sector, especially hotel and shopping complex projects. In terms of country-wise data, the highest FDI inflow amounting to US$ 135 million was from Mauritius followed by US$ 66 million and US$ 47 million from Hong Kong and India during the first half of 2011. FDI inflows, excluding loans, during the first half of 2011 also increased to US$ 378 million from US$ 178 million in the corresponding period of 2010, the report said. The value of outward FDI amounted to US$ 25 million during the first half of 2011. The value of investment commitment of the contracted projects increased in the first half of 2011 compared to the corresponding period of 2010, indicating the future prospects of the realization of new FDIs. Meanwhile, inflows to the private sector increased to US$ 71 million in the first half of 2011 from US$ 60 million in the corresponding period of 2010. The exchange control relaxation measures which enabled the private sector to borrow from foreign sources resulted in 14 private companies obtaining foreign loans amounting to US$ 197 million by mid September 2011 while the permission granted for foreign companies to open places of business resulted in 20 new foreign companies commencing business in Sri Lanka in the first nine months of 2011.

SRI LANKA WILL ATTRACT ONE MILLION TOURISTS IN 2012 Sri Lanka will attract around one million tourists by the end of this year which in international terms will be very good as the percentage increase will be over 15percent said Jetwing Group of Hotels and Pacific Asia Travel Association Chairman, Hiran Cooray. He said that Sri Lanka tourism is progressing well by adding new hotels improving the existing infrastructure. "I feel we will come close to the target of 2.5 million by 2016.Sri Lanka recorded 855,975 tourist arrivals last year compared to 654,476 in 2010." Arrivals from Western Europe were 315,210 accounting for a 36.8 percent of total arrivals. Most of the European visitors were from Britain. Another 237,647 or 27.8 percent arrived from South Asia, mainly from India. Tourist arrivals hit a record high in December 2011 with 97,517, Sri Lanka Tourism Development Authority (SLTDA) data revealed. “The economic recession in the west, Passenger levy introduced in the United Kingdom, increasing fuel prices, lack of adequate human resources, natural disasters continue to impact tourism”,Cooray said.Sri Lanka needs to be marketed and promoted continuously. Many of the Travelers are not aware of the continuous improvement of the hotel product in Sri Lanka. Due to this unawareness many guests feel that we have overpriced ourselves. “PATA is working on a strategic plan, which is focusing mainly on being relevant to our members. As an Association that has membership from Government Industry and the carriers, we are doing our best to help them grow their business. It is also important for us to increase our membership base”, the Association Chief said. PATA will also be providing an opportunity to Bhutan to host its first international Adventure Mart and Eco Tourism Conference in February 2012.

At the stroke of midnight, the New Year dawned on a happy note with people wishing each other and celebrating as this picture taken at Blast Thru 2012 at Hotel Ramada New Year’s Eve Dance . Pic by Mangala Weerasekera

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Growth Rate 03 Jan, 201211:33:24

SSrrii LLaannkkaa eeccoonnoommyy ttoo ggrrooww aatt 88--ppeerrcceenntt iinn 22001122,, nneeww ddeeaall wwiitthh IIMMFF:: CCBB GGoovveerrnnoorr Jan 03, 2012 (LBO) - Sri Lanka's economy is projected to grow at 8.0 percent in 2012 with a new deal in the offing with the International Monetary Fund, Central Bank governor Nivard Cabraal said. The island economy had grown at about 8.3 percent in 2011, he said. In 2012 Sri Lanka is targeting an inflation rate of between 5-6 percent, Cabraal said. Annual average inflation for 2011 was 6.7 percent compared with 6.2 percent the year before, according to a 12-month moving average. Cabraal said the economy had earlier been forecast to grow at nine percent in 2012. But the forecast was lowered as the global economic situation had changed with the debt crisis in Europe

and recession or low growth looming in key Western markets. Sri Lanka will also negotiate a follow up or surveillance programme with IMF for 2012, Cabraal said at the launch of the central bank's monetary policy road map for 2012.

The International Monetary Fund has so far given Sri Lanka 1.7 billion US dollars under its stand-by arrangement programme, Cabraal said. The IMF came in with a 2.5 billion US dollar bailout after Sri Lanka ran down its foreign reserves in a period of peg defence from around September 2008 to April 2009 triggering currency and banking crisis after a period of earlier loose monetary policy. Two tranches of about 400 million dollars remain to be given under a review in September 2011 that was put off and another in March 2012, and the program will formally end in May. In 2011 Sri Lanka's gross domestic product was estimated at 59 billion US dollars and per capita income at 2,830 US dollars, Cabraal said. Unemployment fell 4.3 percent in the first quarter of 2011 and labour productivity had improved, Cabraal said. Poverty is estimated to have fallen below the level of 8.9 percent in 2009. In 2011, the industry sector had grown the fastest, expanding by an estimated 10.1 percent and contributing 18 billion dollars or 30 percent of GDP. The services sector followed with 8.6 percent growth and contributing 34 billion dollars or a 58 percent share of GDP while agriculture grew two percent in 2011 and contributing seven billion dollars or 12 percent of GDP. The island's external sector was strong with imports at 51.6 percent of GDP in 2011, up from 44.4 percent in 2010. The share of exports in GDP was 17.7 percent in 2011 while the contribution of remittances to GDP rose to 8.8 percent from 8.3 percent the previous year.

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Sri Lanka Central Bank raised interest rates for the first time since 2007 to curb credit growth in the nation and ensure inflation stays low. The Central Bank of Sri Lanka CBSL Thursday raised the reverse repurchase rate to 9 percent from 8.5 percent and the repurchase rate to 7.5 percent from 7 percent, The Bank said that the consequent to the increased domestic economic activity, low interest

rates, as well as the unexpectedly high energy prices in the international market, the total expenditure on imports increased substantially to US dollars 18.4 billion during the first eleven month of 2011 widening the trade deficit. This was in spite of earnings from exports increasing by 22.2 per cent to US dollars 9.6 billion during the period. Increased earnings from tourism, increased workers’ remittances, and other inflows to the services account helped cushion the impact on the current account deficit, while the Central Bank had to intervene by supplying foreign exchange, on a net basis, to mitigate the undue pressure on the domestic foreign exchange market. "As a result, despite higher inflows of foreign direct investments and inflows to the Government, gross official reserves (excluding Asian Clearing Union balances) declined to US dollars 5.9 billion by end December 2011, representing the equivalent of 3.6 months of imports." the bank said in a statement Meanwhile, credit granted by commercial banks to the private sector increased by 34.5 percent, year-on-year, in December 2011, substantially exceeding projections. Provisional estimates indicate that within the credit extended to the private sector by commercial banks, trade related credit and credit driven by import related items such as motor vehicles and consumer durables increased significantly. Import related credit increased by over 34 per cent during 2011, while the increase in credit for export activity was only around 8 per cent during the year. Pawning also displayed a significant increase in 2011. In addition, credit granted to the Government and public corporations by commercial banks increased considerably, and in particular, a higher petroleum import bill and the inadequate adjustment to domestic petroleum prices led to increased borrowings by the Ceylon Petroleum Corporation (CPC).

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The clarification issued by the Central Bank of Sri Lanka on the Recent Media Reports on IMF-SBA Programme said that the IMF approved a Stand-By- Arrangement facility (SBA) of SDR 1.65 billion (equivalent to US dollars 2.6 billion) in 2009, which is equivalent to 400% of the country’s current quota with the IMF.

So far, Sri Lanka has received seven tranches amounting to US dollars 1.7 billion under the SBA and this is still lower than 300% of the quota. The applicable interest rate for the loan is SDR rate (SDR rate is calculated every week and published on IMF website, which is currently 0.1%) plus a fixed margin of 1% p.a. for disbursements up to 300% of the quota. Therefore, the interest charge for the present outstanding of US dollars 1.7 billion is 1.1% p.a. However, if the disbursements exceed 300% of the quota, a surcharge of 2% will be added on top of the present interest rate for the credit outstanding above 300%.

EExxppaattrriiaatteess,, cchhiieeff ccoonnttrriibbuuttoorrss ttoo SSrrii LLaannkkaa GGDDPP Remittances from Sri Lankans employed overseas have emerged as the foremost foreign exchange earner indicating a major shift in Sri Lanka’s external sector. The remittances estimated to be around 5.2 billion U.S. Dollars in 2011, is an increase of 27 percent from previous year. As a percentage it contributed 8.8 percent to the country’s Gross Domestic

Product (GDP). It also amounted to 18 percent of the total external receipts. The increase in remittances were mainly due to migration of skilled labour, successful negotiations carried out to increase average wages and working conditions, improved arrangements made to channel remittances through banking sources

and diversification in terms of employment destinations. Meanwhile, the services sector contribution to the growth of the country had been very significant last year. It has accounted for 8.7 percent of the growth for the first three quarters of 2011, exceeding the target set for 8.6 percent. Healthy growth in consumer demand for services that contribute to increase the real income level in the country, wholesale and retail trade, port operations, cargo and container handling, post and telecommunication, banking, insurance and real estate have continued to expand during the 2011. Transport and communication have increased its growth with gradual integration of Northern and Eastern Provinces with the rest of the country. It is estimated that the overall contribution to the economy for 2011 by the services sector will amount to 34 Billion U.S.Dollars representing 58 percent of the GDP.

SSRRII LLAANNKKAA:: JJaannuuaarryy iinnffllaattiioonn ddoowwnn ttoo 33..88 ppeerrcceenntt Sri Lanka's inflation has declined further in January. The inflation as measured by consumer prices in Colombo in January is 3.8%. This is the lowest inflation recorded for the last two years. Data released yesterday by

the Statistics Department of the Central Bank showed that the inflation has declined to 3.8 percent in January 2012 from 4.9 percent in December 2011 while the Colombo Consumer Price Index (CCPI) marginally increased by 0.3 percent to 154.8 points in January from 154.4 points in the previous month. As per the statistics, the annual average inflation decreased marginally to 6.5 percent

in January from 6.7 percent recorded in the previous month. Sri Lanka's Central Bank said it would only have to pay a higher interest rate for International Monetary Fund loans exceeding 300 percent of the country quota, and lower balances would only attract a rate of a little over 1.0 percent. Media reports quoted Central Bank Governor Nivard Cabraal to have said that Sri Lanka would have to pay as much as 3.1 percent for the full loan if all the money was drawn down and the island would not be taking the balance money.

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FOREIGN CURRENCY – EXCHANGE RATES Source: Central Bank of Sri Lanka as at January 31, 2012

CURRENCY

BUYING

SELLING BUYING RATE

30-DAYS BACK SELLING RATE

30-DAYS BACK Dollar - US 113.0100 114.8800 112.9300 114.8200 Dollar - Canadian 112.2900 115.8300 110.2600 113.3500 Dollar - Australian 119.8700 123.9000 114.0500 117.6100 Dollar - Singapore 89.9600 92.6800 86.6000 89.0500 Pound Sterling (UK) 177.9400 182.3000 146.7100 150.8700 Euro (EU) 147.4400 151.6800 176.2600 180.5800 Yen (Japan) 1.4735 1.5204 1.4442 1.4852 Franc (Switzerland) 122.0700 126.2000 120.1600 123.7300 Rupee (India) Indicative Rate Rs. 2.3228 Rupee (Pakistan) Indicative Rate Rs. 1.2593

CCeennttrraall BBaannkk ooff SSrrii LLaannkkaa uunnvveeiillss RRoobbuusstt RRooaaddmmaapp ffoorr 22001122 aanndd bbeeyyoonndd!!

Highly confident Central Bank outlines ambitious forecasts for 2012 and beyond

2011 GDP growth at record 8.3%; 2012 outlook revised to 8% from 9% previously

Eyes over $ 25 b inflows in 2011

Low interest rates helped to reduce Govt. expenditure by Rs. 15.5 b

CB profit transfers to Government over Rs. 46 b between 2006 and 2011

By Uditha Jayasinghe writing to Daily FT

A highly confident Central Bank on Jan.3 unveiled a robust roadmap for Sri Lanka for this year and beyond though with a rider that realization was subject to absence of any unforeseen supply side shocks. Governor Nivard Cabraal proudly told the ceremony attended by business leaders and media that the country in 2011 is estimated to have achieved its highest GDP growth of 8.3% thereby recording the second consecutive year of over 8% growth. “2011 was a challenging year but amidst tense global developments, the Sri Lanka’s economy was able to deliver the promised results,” Cabraal said in his roadmap presentation that covered key macroeconomic developments in 2011; developments in the financial system in 2011; Macroeconomic outlook and proposed monetary policy strategy for 2012 and beyond; proposed strategies for financial system stability for 2012 and beyond and

policies to strengthen the economy in 2012 and beyond.

The 8.3% GDP growth was marginally below targeted 8.5% figure whilst among other achievements included 4.9% year on year inflation as opposed to 4 to 6% target and debt to GDP ratio contained at 78% as against target of 79% and 82% in 2010. “We had controlled debt to GDP ratio at a time when other countries couldn’t,” he added. Among things which Central Bank couldn’t control was broad money growth 19.8% as of October high in comparison to the target of 14.5%. Whilst this was on account of sharp rise in private sector borrowing in tandem with post-war rebound and low interest rate regime, Cabraal however pointed to single digit inflation as a cushion and a key achievement. He also said Government expenditure was reduced by an estimated Rs. 15.5 billion due to the decline in interest rates.

Gross Official Reserves amounted to $ 6.0 billion by end 2011 compared to $ 6.6 billion by end 2010 and a high $ 8.2 billion in August. “We built up such high reserves so that they could be used when the need arose. When we entered into the International Monetary Fund (IMF) agreement the target was to have enough reserves for 3.5 months of imports,” the Governor added. He said that engagement with international monetary institutions will continue even though the IMF programme is due to end in the first quarter and that all key economic sectors contributed to high growth and the same resilience will help the country to achieve its third year of over 8% growth. However due to external shocks the 2012 forecast of 8% growth is a downward revision from 9% previously projected. “We have also posted the lowest unemployment rate of 4.3% and made a significant reduction on poverty,” he added.

A key highlight of his roadmap was estimating a whopping $ 25 billion in foreign inflows in 2012 inclusive of $ 12.5 billion via exports (up from $ 10.5 billion in 2011); $ 2 billion in FDI (up from $ 1 billion in 2011) and $ 6.5 billion via remittances as opposed to $ 5.2 billion last year and $ 1.2 billion from tourism up from $ 850 million in 2011. Included in the forecast was $ 500 million (Rs. 57.5 billion) net inflow to Colombo stock market notwithstanding the Rs. 19 billion outflow in 2011. With regard to the latter he said that it was offset by Rs. 25 billion increase in foreign inflows to Government securities in 2011. Cabraal also touched on success of fiscal management noting that Budget deficit in 2011 is estimated at below 7% of GDP down from 8% in 2010. Forecast for 2012 is a 6.2% fiscal deficit.

According to the Governor during 2006-2011 the Central Bank was able to appropriate Rs. 64 billion to the Government from surpluses generated by the Bank mainly from its international operations. In real terms based on 2006 prices this amounted to over Rs. 46 billion. Based on success achieved in the recent past, Cabraal said “Central Bank now has greater confidence in its ability to face new challenges and adopt new frameworks of monetary policy since it uses the new strengths.” He said the Bank can with greater confident target inflation in a broader sense hence from 2012 onwards it would start doing so parallel to its existing framework. “We will also give recognition to the major structural changes that have taken place in the economy and display a policy shift,” he added. He also said Sri Lanka’s macro economic

conditions and policies would be fashioned to support high growth in 2012. “We will be keen to accommodate the higher growth of economic activity although priority would be to check inflationary pressures in the economy,” he added.

“Today, Sri Lanka is on the threshold of a new era, where its economy is undergoing fundamental structural changes that are expected to provide a new platform that will pave the way for a robust future direction in the economy,” Cabraal said adding a cohesive and integrated monetary policy framework will be fashion whilst taking into new emerging policy environment. According to the Central Bank 2012 growth will be driven by agriculture sector (expected to expand at 7.3%, compared to 2.0% in 2011); Industry sector (expected to expand at 9.0%, compared to 10.1% in 2011); and services sector (expected to expand at 7.7%, compared to 8.6% in 2011). Cabraal also assured that the Central Bank will assist the Government and the private sector with the interventions necessary to move towards higher growth targets. “The wide range of goals as we have set for ourselves is not easy to achieve. And if we are to succeed, we will need total focus and diligent implementation of our policies and plans. We will also need to motivate and energize our fellow countrymen to realize the ambitious goals that have been endorsed by our people through their mandate for the “Mahinda Chintana – Vision for the Future,” Central Bank chief emphasized.

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TThhiirrdd SSrrii LLaannkkaa CCoonnssuullaattee iinn CChhiinnaa

The Government of the People’s Republic of China has given concurrence to Sri Lanka to set up a new Consulate General in Guangzhou, the capital of Guangdong Province of Southern China.Yu Hong, Vice Director General of the Consular Department of the Ministry of Foreign Affairs of China presented the formal agreement giving concurrence to the opening of the Consulate General on 18th January 2012 to Sri Lanka’s Ambassador to China Ranjith Uyangoda during a special meeting held in the Ministry of Foreign Affairs in Beijing. The Consulate General in Guangzhou will facilitate the expansion of bilateral relations between Sri Lanka and China in areas of economy, trade and tourism while further strengthening people to people contacts between the two countries. Sri Lanka Government has already appointed a Foreign Service Officer to the position of the Consul General in Guangzhou. This will be the third Sri Lankan Consulate Office in China, following the establishment of the Consulate General in Shanghai in 2007 and the Consulate in Chengdu in 2009. Guangzhou, popularly known as Canton, is the main manufacturing hub of the Pearl River Delta and one of China’s key

commercial and manufacturing regions. The China Import and Export Fair, also known as the ‘Canton Fair’ is held biannually in Guangzhou. Sri Lanka, with the increased number of companies, continues to participate at this trade fair. Trade Agreements: Sri Lanka concluded an agreement with the People's Republic of China on 11th July 1997 to facilitate the latter's accession to the Bangkok Agreement. Under this agreement China granted tariff concessions on several lines of products, which are of export interest to Sri Lanka. In January 2000, Sri Lanka signed a bilateral agreement with China in supporting the latter's accession to the WTO.

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111100 PPAARRLLIIAAMMEENNTT RROOAADD AAPPAARRTTMMEENNTT CCOOMMPPLLEEXX The 'Investment Phase' of the 110 Parliament Road ends on Jan 31st, after which the initial sales of the project will be closed. Sales will reopen at a higher price in the general phase. The lead contractor Sanken Lanka (Pvt) Ltd has mobilized on the site and is completing the ground floor base. The entire complex is expected to be ready-for-occupation by the end of 2014. 110 Parliament Road is the latest project to be underway in Rajagiriya and is expected to be the biggest landmark in the area with its new age design and sleek silhouette. Architect Narayan and Associates of India is the lead designer on the project and are working hand in hand with locally renowned Habitat Chartered Architects and Engineers of Sri Lanka. Founded in 1995 Narayan and Associates are a premier name in high rise construction in Mumbai and Dubai. They view the high rise market in Colombo as an exciting space with scope for rapid growth. Narayan and Associates' design projects have included boutique hotels, luxury apartments and high rises in India. By offering their services in Sri Lanka, Narayan and Associates will be able to bring their design expertise to a commercial clientele in need of interior and architectural design. Meanwhile Habitat Chartered Architects and Engineers of Sri Lanka led by Lalit de Silva, former Board Member at the UDA are renowned for their design work for over 25 years. Both parties pride themselves in offering design solutions resulting from an intimate

dialogue between the client, the design firm and the site itself. This allows for an exquisitely suitable design solution enhancing the existing attributes of the location while reflecting the needs and desires of the client. The project management consultants for this project is Multimedia Consultants, Ahmedabad, India, who have been responsible for some the most complex engineering and infrastructure construction projects in India's booming infrastructure sector.

FFOOOOTTWWEEAARR AANNDD LLEEAATTHHEERR FFAAIIRR TTAAKKEESS PPLLAACCEE AATT BBMMIICCHH IINN FFEEBBRRUUAARRYY The Footwear and Leather Fair is scheduled to take place from February 10 to 12 at the BMICH, Colombo. During the exhibition, the Indian Footwear Component Manufacturers Association (IFCOMA) will have a special pavilion named the IFCOMA Pavilion, India. Twenty five exhibitors from IFCOMA-India will be showcasing their products including footwear components and accessories for the footwear and leather goods industry in Sri Lanka.

The way forward for the Sri Lankan footwear Industry is to have more exposure with regard to technology, designs and trends in the global environment. The local market has seen a steady growth and the footwear industry could become a significant player in the export sector with right inputs. The talents in the industry need to be showcased to attract orders and become a vibrant industry, Footwear Advisory Council Chairman Rangith Hettiarachchy told Daily News Business. It is necessary to provide training to craftsmen to develop skills and harness potential to improve quality and quantity. The industry could be developed with trained human capital to cater to high end of the market, he said. The industry will showcase its capabilities with the staging of the Footwear and Leather Goods Fair for the 4th Consecutive year from February 10 to 12. This event has already become a most looked after event in our industry calendar. This year our fair has attracted 25 exhibitors from the Indian Footwear Components Manufacturers Association. Among these exhibitors there are some leading footwear component manufacturers in India. As Indian footwear industry has reached world standards this will be a very valuable opportunity for our industrialists to establish business relationships. As Sri Lankan government has given all the support for local footwear producers to get them establish in the local market, an exhibition of this nature is encouraging. In return the local industrialist has reciprocated by up lifting there quality and fashion levels. With the encouragement from the Export Development Board, the Ministry Of Industries and Industrial Development Board, all footwear industrialists will explore possibility to establish Sri Lanka as a leading destination for quality shoes at present. The Finance Ministry will provide all support to commence a degree course in footwear designing. In addition already plans are in place to set up a footwear training centre with amalgamation of textile training Institute. With this action plan we hope as footwear industrialists this year will be a launching year to expand our exports. Already our industrialist has saved valuable foreign exchange by catering to all segments of the footwear industry. As we have a limited market now it is time to get into exports, Hettiarachchy said.

BBIIAA NNEEWW TTEERRMMIINNAALL TTOO AACCCCOOMMMMOODDAATTEE 66MMIILLLLIIOONN PPAASSSSEENNGGEERRSS Sri Lanka’s Bandaranaike International Airport has embarked on a rapid expansion plan with a view to becoming a dominant force in the international aviation market. Under the second phase of the BIA expansion project, a new aerodrome which has the ability to land nine airplanes is being put up. Once the second stage of the second phase of the BIA expansion plan is completed, BIA will be converted into a fully fledged international airport with a higher passenger handling capacity. Plans are also afoot to complete the second stage of the second phase of the BIA expansion project by 2016. Accordingly, a new terminal which can handle six million passenger movements per annum will be build. With this, the total passenger handling capacity at BIA will be increased up to 12 million in the future. This new terminal will have the capability to provide facilities for arriving and departing passengers individually and it will also consist of 16 aerobridges with eight departure lounges and a pier. In addition, the departure lounge will consist of hotels, duty free shops, restaurants, 52 airline service counters and 24 immigration counters and the arrival lounge will consist of Custom counters, emigration counters and other amenities. To address the congestion at the airport, the main entrance and the main road leading to the airport will be modernized. In the wake the of the tourism boom in the country; BIA saw a 20 % growth in passenger capacity in 2011. Air Port and Aviation Services (Sri Lanka) Ltd has embarked on projects to further facilitate passengers at the BIA and managed to surpass the BIA annual maximum passenger handling capacity of six million in 2011.

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LLOOTTUUSS TTOOWWEERR WWIILLLL BBEE SSOOUUTTHH AASSIIAA’’SS TTAALLLLEESSTT AANNDD VVIISSIIBBLLEE TTOO IINNDDIIAA AANNDD BBAANNGGLLAADDEESSHH Sri Lanka is set to build the tallest tower in the South Asian region, which will be 26-metres taller than the Eiffel Tower and 17.4 meters taller than the 332.6-metre high Tokyo Tower. The 350-metre high tower building, the promoters claim, will be visible to India and Bangladesh, said the Khaleej Times. Estimated to cost more than $104 million, the "Lotus Tower" will provide facilities for 50 television services, 50 broadcasting services and 10 telecommunication providers. In addition to its primary function, the tower podium, which is proposed to be four storey’s high, will accommodate a telecommunications museum, food courts, offices, conference hall and exhibition spaces. Two floors of the 11-storyed multi-faceted tower is also planned to be developed with luxury hotel accommodation, a revolving restaurant accommodating 600 guests on the fourth floor and a banquet hall for over a thousand guests. Planned to be built in a three hectare land in the heart of Colombo, the Lotus Tower is one of Sri Lanka's many development projects designed to help the country's rapidly growing tourism industry. Since the end of its three-decade conflict, the country is emerging as one of the most popular tourist destinations of the region. The project, through its telecommunication infrastructure, also aims at eliminating high-powered TV and FM antennae perched atop buildings around Colombo as part of the Government's Colombo beautification plan. The tower mast, fixed upon the tower head, is arranged to provide a base for antennae of service providers in telecommunication, telecasting, broadcasting, and defence-related transmissions with an antenna installed 350 meters above ground. The Director-General of the Telecommunication Regulatory Commission, Anusha Pelpita said there will be a significant development in the television and telecommunications fields. The Lotus Tower will be the tallest building in South Asia and the 19th tallest building in the world. The Tokyo Sky Tree with a height of 634 meters, presently being constructed and scheduled to be completed in February, will be the tallest tower in the world followed by the Canton Tower of China with a height of 600 metres.The construction of the Lotus Tower is planned to be completed in 30 months and is funded by EXIM Bank of China.

RREEVVOOLLVV IINNGG RREESSTTAAUURRAANNTT WWII LLLL BBEE PPAARRTT OOFF TTHHEE LLOOTTUUSS TTOOWWEERR Construction of the Lotus Tower in Colombo for multi functional purposes including telecommunication needs and entertainment will commence early third week this month. It will be the tallest tower in South Asia and will be 350 meters in height. The proposed tower with an investment of US $ 100 million will comprise an entertainment centre and will be constructed at the Beira Lake water front in Colombo. The multi functional telecommunication tower and an entertainment centre at the Lotus tower will be completed within next 30 months. The tower while facilitating telecommunication activities will house a telecom museum, a revolving restaurant and facilities for recreation activities. The tower will provide for telecommunication and leisure activities and will facilitate relaying of at least 50 separate broadcasting and telecasting services, provide facilities for over 20 service providers in telecommunication and relaying of defence signals. The tower podium will have a telecommunication museum, food courts, administrative offices, exhibition spaces and corresponding amenities. The construction of South Asia’s tallest multi-functional Tower ‘Lotus Tower’ will commence on January 20. The proposed tower with an entertainment centre will be constructed at the Beira Lake water front in Colombo and the total height of the tower is 350 meters, a statement issued by the Sri Lanka Telecommunications Regulatory Commission (TRCSL) said yesterday. TRCSL is planning the construction of a multi-functional telecommunication tower and an Entertainment Centre which has been approved

by the Cabinet. The proposed tower will be constructed on a plot of land of 3.06 hectares, and it will be situated between the Eastern Beira Lake and D R Wijewardena Mawatha. It is destined to be a striking city symbol and an important landmark by being the tallest Tower in South Asia. It will be a free -standing tower with a four-storey high podium; a concrete tower shaft of moderate diameter; eight storied tower head; and a steel framed antennae mast surmounted at the top. The Tower will provide for Telecommunication and Leisure activities, and will facilitate the relaying of at least 50 separate broadcasting and telecasting services; provide facilities for about 20 service providers in telecommunication; and relaying of defence signals, and in addition indirectly contribute to the riddance and removal of high power TV & FM antenna innumerably located at various buildings in the Colombo City. Apart from facilities related to multi-functional telecommunication activities, the tower podium will also accommodate a telecommunication museum, food courts; administrative offices; exhibition spaces and corresponding amenities. The Tower shaft will be a hollow concrete cylinder accommodating high-speed lifts and stairs for vertical circulations, and ducts for various types of building services. The Tower head will comprise of eight floor levels accommodating an Observation Deck; Revolving Restaurant; Banquet Hall for 1,000 guests; and, two floors of super luxury hotel accommodation along with facilities for building services, which will include fire detection, fire fighting, overhead storage tanks and telecommunication instruments/ equipment etc. The tower mast, surmounted on the tower head will provide a base for antennae of service providers in telecommunication, telecasting, broadcasting, and defence related transmissions etc. The Antennae will be installed at a height of between 250 and 350 meters above ground level, and they will cater to a range of different frequencies. The TRCSL will finance and implement the project, with technical assistance obtained from the Faculty of Architecture, University of Moratuwa. A Team of consultants led by Emeritus Prof Nimal de Silva, Prof Samita Manawadu and Prof Chitra Weddikkara of the Faculty of Architecture, University of Moratuwa have provided professional advice on design, cost planning and cost control of the project. The cost of the Project is US$ 104.3 million. A Chinese conglomerate comprising China National Electronics Import and Export Corporation (CEIEC) and Aerospace Long-March International Trade Co. Ltd (ALIT) will complete the project on a Turnkey Basis, using the concept and preliminary design drawn by local architects. The Signing Ceremony of the Construction Contract between TRCSL and the Chinese conglomerate was held yesterday at the TRCSL premises. A party of 13 Chinese high ranking officials including GuoZhaoping (President, ALIT) Chen Xu (President, CEIEC), and Lin Changhai (Chief Designer) among others, and Lalith Weeratunga (Chairman, TRCSL and Secretary to the President) was present at the Signing Ceremony. World class communications tower in Colombo to be named “Lotus Tower” Cabinet approval has been granted to construct a multifunctional TV and telecommunication tower approximately 350 meters in height which could be used by 50 telecasting services 10 telecommunication services and 50 radio broadcasting services. It will be named the as 'Colombo Lotus Tower Project' and it has been proposed to locate it in a central tourist zone in Colombo. The proposal was made by President Rajapaksa. Sri Lanka has renamed and plans to relocate its proposed multifunctional communication tower to the Center of Colombo city, from the earlier planned location of Peliyagoda. The cabinet of Ministers has given the approval to rename the tower as the “Colombo Lotus Tower Project” and also have decided to shift the project to a central tourist zone in the center of Colombo. The 350 meter tall tower, once completed will have the capacity to cater to 50 telecasting services, 10 telecommunications services and 50 radio broadcasting services. A leisure park also will come up in the land, which the proposed tower is expected to be built. The project, which comes under the Telecom Regulatory Commission is financed by China’s EXIM Bank who is providing a loan little over US$ 100 million. The Colombo Lotus Tower (or Lotus Tower) is a proposed 350 meters tall tower located in Colombo, Sri Lanka. It was first proposed to be built in Peliyagoda Town but later the Government of Sri Lanka decided to shift the location.[1] The lotus-shaped tower will be used for communication and observation. Construction will cost $100 million, funded by EXIM Bank of Peoples' Republic of China.[2] After the completion in 2013 the tower will be the tallest building in South Asia and the 19th tallest tower in the world A 350-metre high telecommunications tower with a viewing platform, a rotating restaurant, a 24-room luxury hotel and other leisure facilities is to be built at D. R. Wijewardene Mawatha in Colombo, a top official said yesterday. Telecommunication Regulatory Commission (TRC) Director General Anusha Palpita said a seven-acre plot of land where the Transport Ministry was now located would be utilized for this showpiece project which would be taller than even the Eiffel Tower, one of the world’s wonders. The project estimated to cost US$ 104 million (Rs. 11.9 billion) would be completed in 30 months, he said. Mr. Palpita said this government-funded project was earlier planned to be built in Peliyagoda, but the location was shifted to Colombo to attract more tourists. He said that at the bottom of the tower there would be a leisure park and a shopping mall among other entertainment facilities. The TRC would charge about US$ 50 from foreigners and Rs. 1,000 from Sri Lankans for entry to the tower. .

An artist's impression of Lotus Tower

Artist’s impression of proposed revolving restaurant at Lotus Tower

Editor’s Note: Talking of “Towers” – Toronto’s CN Tower is a communications and observation tower in Downtown Toronto, Ontario, Canada. Standing 553.33 metres (1,815.4 ft) tall, it was completed in 1976, becoming the world's tallest free-standing structure and world's tallest tower at the time. It held both records for 34 years until the completion of Burj Khalifa and Canton Tower. It remains the tallest free-standing structure in the Western Hemisphere, a signature icon of Toronto's skyline, and a symbol of Canada, attracting more than two million international visitors annually. In 1995, the CN Tower was declared one of the modern Seven Wonders of the World by the American Society of Civil Engineers. It also belongs to the World Federation of Great Towers, where it holds second-place ranking.

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A quote from Albert Einstein, “”Creativity is contagious, pass it on”. TradeWinds e-Magazine is an independent digital e-publication launched in 2010, and published monthly in Toronto, Canada by “The Times of Sri Lanka” – Division of Ad-Bri Enterprises Inc. The editorial team comprise of free lance journalists and business analysts mainly from Canada and Sri Lanka. Research, Advertising and Circulation matters are handled by local recruits. Production of the magazine including typesetting, layout and design is credited to our creative graphic designers at Ad-Bri Enterprises Inc. Our mission is to publish quality content that is newsworthy, informative and accurate. We hope to capture news from Sri Lanka, Canada and the world - from a wide spectrum of topics that include trade, tourism, investment, business, economy and industrial development. “Sharing information for success”, is our tag line. The magazine enjoys an estimated national circulation of 7000 readers’ in Canada. It has a global circulation and mailed electronically to our readers’ in Sri Lanka, U.S.A., U.K., Germany, Italy, The Middle East, New Zealand, Australia, within the European Union and a few other countries. Recent surveys conducted by us estimate over 20,000 people read TradeWinds e-Magazine round the world. Reader feedback has been generous….which is truly encouraging. Many readers have contacted us via e-mail and telephone, with their thoughts that the magazine is creative, well laid out, informative and easy to read. Others talk about the ‘added value’ it provides to the reader. We are aware that the scope of this e-magazine is unlimited. On an ongoing basis, we value the input of many who stimulate our thoughts on what they like to see in the magazine. Surround yourself with other creative’s, sharing ideas breeds’ new ways of thinking and presents alternate points of view on the same subject. We know that a few marketing vehicles can match the power of a high-content, free electronic email digital newsletter delivered monthly to our subscribers’ “inbox”. We hope to fill this void and build a reputation that is credible. TradeWinds editorial team will faithfully work within the confines of accepted journalistic standards. Our vision is to be a leader in digital e-publishing in Canada. We strongly believe that “Every news organization has only its credibility and reputation to rely on.” We hope to build and maintain ours! My personal regards to all our readers’!

Upali Obeyesekere Editor, TradeWinds e-Magazine Publisher: The Times of Sri Lanka

E-mail (Advertising) timeslanka@rogers.com E-mail (Personal) upaliobey@rogers.com Telephone: 416-445-5390/416-418-2207

Ask not what your country can do for you – ask what you can do for your country.

The immortal words of JOHN F. KENNEDY

Truly inspiring……. Editor, TradeWinds

Geography has made us neighbours History has made us friends Economics has made us partners, and Necessity has made us allies. Those whom God has so joined together, let no man put asunder.

JOHN F. KENNEDY

TTTrrraaadddeeeWWWiiinnndddsss eee---MMMaaagggaaazzziiinnneee CCCOOOMMMMMMEEERRRCCCIIIAAALLL AAADDDVVVEEERRRTTTIIISSSIIINNNGGG RRRAAATTTEEESSS FFFOOORRR 222000111222

Publication Dates: 12 monthly Issues – end of each every month from January to December 2012

CONTRACT ADVERTISING RATES FOR 12 ISSUES

(Packaged price 12 insertions Jan-Dec 2012) Full Page $1,000 for 12 x insertions Half Page $600 for 12 x insertions Quarter Page $300 for 12 insertions Business Card $160 for 12 x insertions In U.S Dollars

Contract Advertising Rates for 06 Issues (Packaged price for 6 insertions Jan-Dec 2012) Full Page $600 for 6 x insertions Half Page $300 for 6 x insertions Quarter Page $150 for 6 x insertions Business Card $90 for 6 x insertions In U.S. Dollars

NOTE TO ADVERTISERS: Artwork for the advertisement may be sent via electronic mail or snail mail. A ‘proof’ will be sent before publication. Payment for advertising is accepted by Cheque, Wire Transfer to “TradeWinds e-Magazine” Corporate Account held in Toronto, Canada. If advertisers wish to pay in local currency in Sri Lanka, our Local Representative will manage this transaction.

ONE INSERTION ADVERTISING RATES PER ISSUE

Full Page $250 per insertion Half Page $150 per insertion Quarter Page $90 per insertion Business Card $25 per insertion In U.S. Dollars

MMMaaannnyyy pppeeeooopppllleee,,, eeessspppeeeccciiiaaalll lllyyy iiigggnnnooorrraaannnttt pppeeeooopppllleee,,, wwwaaannnttt tttooo pppuuunnniiissshhh yyyooouuu fffooorrr ssspppeeeaaakkkiiinnnggg ttthhheee tttrrruuuttthhh,,, fffooorrr bbbeeeiiinnnggg cccooorrrrrreeecccttt,,, fffooorrr bbbeeeiiinnnggg yyyooouuu... NNNeeevvveeerrr aaapppooolllooogggiiizzzeee fffooorrr bbbeeeiiinnnggg cccooorrrrrreeecccttt,,, ooorrr fffooorrr bbbeeeiiinnnggg yyyeeeaaarrrsss aaahhheeeaaaddd ooofff yyyooouuurrr ttt iiimmmeee... IIIfff yyyooouuu’’’rrreee rrriiiggghhhttt aaannnddd yyyooouuu kkknnnooowww iii ttt,,, ssspppeeeaaakkk yyyooouuurrr mmmiiinnnddd... SSSpppeeeaaakkk yyyooouuurrr mmmiiinnnddd eeevvveeennn iii fff yyyooouuu aaarrreee aaa

mmmiiinnnooorrriiitttyyy ooofff ooonnneee... TTThhheee tttrrruuuttthhh iiisss sssttt iii lll lll ttthhheee tttrrruuuttthhh... MMMOOOHHHAAANNNDDDAAASSS GGGAAANNNDDDHHHIII

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PP..DD.. FFEERRNNAANNDDOO –– AAPPPPOOIINNTTEEDD DDIIRREECCTTOORR--GGEENNEERRAALL,, DDEEPPTT OOFF CCOOMMMMEERRCCEE A veteran public servant, P.D. Fernando has been appointed Director-General of Sri Lanka’s Department of Commerce. Mr. Fernando succeeds Gomi T. Senadhira, who has retired from the department after 32 years service. P D Fernando holds a Bachelors Degree in Commerce from the Sri Jayewardenapura University and a Masters in International Relations from The Centre for Study of International Relations –Brussels. He served in Sri Lanka Customs from 1976 – 1979 and joined the Department of Commerce in 1979. The new DG has over 32 years of experience in the department. His overseas postings include Sri Lankan Missions in Karachi, Japan, Germany, and Brussels as a trade commissioner, and in Dubai and Sydney as Sri Lanka Consul General.

Minister Rishad Bathiudeen welcomed the new Director General of Commerce, who assumed duties on Monday, January 2. Outgoing DG, Gomi T. Senadira served the Department of Commerce steadfastly and retired in November 2011. The Department of Commerce commenced its work for the year 2012 today, with all officers taking the government servants’ oath to provide an efficient and comprehensive service to the public at all times. Addressing staff in a ceremony marking the beginning of work in the New Year, Hon. Rishad Bathiudeen, Minister of Industry and Commerce, said that the department has a major responsibility to contribute towards Sri Lanka achieving high export target and trade development this year, and encouraged officers to do their utmost to achieve this goal. Mr. P.D. Fernando, the new Director General of Commerce, also assumed duties today, and addressed the gathering highlighting the importance of rendering a dedicated service to the public. He also led the staff in thanking Mr. G.T. Senadira, former Director General of Commerce for his service to the Department over the past 32 years, and presented him with a souvenir from the staff. The former Director General of Commerce, Mr. Senadhira also addressing the occasion, expressed his sincere thanks for the valuable cooperation given to him by the staff.

GGLLOOBBAALL CCOOMMMMEERRCCEE EEXXCCEELLLLEENNCCEE AAWWAARRDD FFOORR CCEEYYLLOONN CCHHAAMMBBEERR OOFF CCOOMMMMEERRCCEE

The Ceylon Chamber of Commerce was recently awarded a Global Commerce Excellence Award at a ceremony in recognition of its contribution and support towards global commerce in Sri Lanka during the past three decades since liberalizing the economy. The Ceylon Chamber of Commerce CEO/Secretary General Harin Malwatte said, “During its 172 year old history, the Ceylon Chamber of Commerce has been in the forefront of contributing to business and economic development of the country. Not only during the three decade long war but also prior to that in the past, during the world wars as well as during the difficult period our country went through during the unrests that adversely affected our economy and business during the 1971 insurgency and 1983 and 1989 riots, the Ceylon Chamber of Commerce remained relevant and effective.” He noted that over the years the CCC has carefully worked out the priorities to be in line with the needs of the times and doing the right thing at the right time as required by the country. Malwatte received the award from the chief guest of the event, Secretary to the President Lalith Weeratunga in the presence of Central Bank of Sri Lanka Governor Ajith Nivard Cabraal.

The Ceylon Chamber of Commerce is the oldest and one of leading business chambers in Sri Lanka. The Ceylon Chamber of Commerce was established on March 25, 1839, when Sri Lanka was known as Ceylon under British rule. Rt. Hon. J A Stewart Mackenzie, then Governor of Ceylon, was instrumental to found the Ceylon Chamber of Commerce as he was keenly interested in promoting agriculture and trade in Ceylon. A meeting was held on February 20 1839 by a considerable number of the mercantile community favourable to the establishment of a Chamber of Commerce in the island of Ceylon. It was unanimously resolved as a preliminary measure that five of the gentlemen present should be requested to form a Committee for framing an estimate and drawing up certain rules and regulations, which when submitted and approved might form the ground work of the institution. The General Meeting of thirteen representatives of the mercantile community was held on March 25, 1839 at the Corner House of Prince Street. With the adoption of the rules and regulations of the Ceylon Chamber of Commerce, the first Chamber was established in Sri Lanka. Subsequently in 1895 the Chamber was incorporated by the then Legislative Council under the Ceylon Chamber of Commerce Ordinance No. 10 of 1895.

TTOOPP AAPPPPAARREELL MMAANNUUFFAACCTTUURREERR IINNVVEESSTTSS UUSS $$55 MMIILLLLIIOONN IINN 22 FFAACCTTOORRIIEESS Timex & Fergasam expands to Mannar

The first BOI apparel manufacturer to enter Mannar, Timex and Fergasam Group (T&FG), is investing US$ 5 million on two factories in the region. The foundation stone laying ceremony for T&FG’s manufacturing facilities will take place today (Jan. 07) at the Mannar Industrial Zone. "The two new garment factories, once built, will also provide employment for more than 2,000 at its full capacity," said Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka on 03 January. "This is the first BOI apparel venture to venture into Mannar." Bathiudeen said this after he met with the top officials of Times and Fergasam Group, the US$ 60 million apparel manufacturer in Sri Lanka. According to the officials of the group, the apparel producer is within the top five apparel manufacturers in the country today. T&FG has won the 2006 NCE Export Award and the All Star Award 2007. Officials of Timex and Fergasam said that the upcoming factories will be the 17th and 18th manufacturing facilities to be set up by the apparel group. According to

them, the project will be in two phases; the first factory will provide employment for 1,200 and the second, for 800. The group currently employs more than 8,000 across its 16 manufacturing facilities across the gloabe with offices in UK and Hong Kong. The Times and Fergasam officials also revealed that the first Mannar factory to start production will begin operations by mid-October 2012. Among the clients of Timex and Fergasam Group are top labels such as Marks & Spencer, Victoria’s Secret, House of Frazer, Diesel, H&M and SUZI Chin.

AAWWEESSOOMMEE SSHHOOPPPPIINNGG EEXXPPEERRIIEENNCCEE AATT CCOOTTTTOONN CCOOLLLLEECCTTIIOONN FFLLAAGGSSHHIIPP SSTTOORREE IINN CCOOLLOOMMBBOO 77

“So proud to have places like this in Colombo”, RAMANI FERNANDO – RAMANI SALON

Cotton Collection

143 Dharmapala Mawatha, Colombo 7

Cotton Collection opened its new flagship store on December 12th in Colombo 7. Its brand identity promotes a culture of care-free, youthful and spirited fashion; one that infused global fashion trends with local pride. The culture created at Cotton Collection is one that strives to keep up with the momentum of current trends whilst at the same time never losing sight of why it started – to make fashion spirited.

CEO/SG Harin Malwatte with Secy. To the President Lalith Weeratunga and Central Bank Governor Nivard Cabraal

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JJAANNAAKKII KKUURRUUPPPPUU –– CCHHAAIIRRMMAANN,, SSRRII LLAANNKKAA TTEEAA BBOOAARRDD Business leader Susantha Ratnayake steps down to make way for Janaki Kuruppu who becomes the first woman Chairperson of the all important Sri Lanka Tea Board. The newly appointed chairperson brings with her varied business and international marketing experience in both the private and public sectors and more recently served as Advisor on Food Security at the President’s office. She also held the position of Chairperson, Mother Sri Lanka Trust. Ms. Kuruppu enjoyed a distinguished career spanning over 20-years in numerous private sector companies specializing in research and consultancy, food manufacturing, retailing, banking, media and engineering and was director of Commercial Bank PLC., Sathosa, Cargills Ceylon PLC., and Managing Director of The Nielsen Company. She is also a member of the global steering committee of AgriFin which is an agriculture finance fund set up by World Bank and the Bill & Melinda Gates Foundation to support the activities of financing for agriculture, particularly for smallholder farmers. Located at 574 Galle Road, Colombo 3, The Sri Lanka Tea Board is the apex body for the Tea industry in positioning Ceylon tea to be the “Preferred Beverage” in the global market by the year 2015. The Sri Lanka Tea Board was established on the 1st January, 1976. The objectives of the Tea Board under this Acts are development of the tea industry in Sri Lanka and promotion of Sri Lanka Tea (Ceylon Tea) globally. It is the authority responsible for regulating the activities of the tea industry, viz. production, cultivating new area and replanting, rehabilitating old gardens, the establishment of factories and their operation. It also regulates the conduct of the auctions, monitors quality standards and regulates the sales, export brokerage, warehousing and shipping of tea. It also regulates controls and directs all institutions and organizations engaged in the management of tea estates and in the production and marketing of Tea.

DDiinneesshh WWeeeerraakkkkooddyy -- CChhaaiirrmmaann,, CCoommmmeerrcciiaall BBaannkk

KKuummuuddiinnii KKuullaattuunnggaa––CChhaaiirrppeerrssoonn,, LLaannkkaappuutthhrraa BBaannkk The Lankaputhra Development Bank will continue to play its role as a development bank while positioning for a dynamic return to a higher profitability in the coming year, the newly appointed chairperson of the bank Kumudini Kulatunga said. She said that the bank has made Rs 2.2 million profit in 2010 and expect better results in 2011 in keeping with the expectations of all stakeholders. Ms. Kulatunga hoped her longstanding knowledge and experience in the banking sector could be utilized to bring the bank to greater heights in the coming years. She said that lending will be increased this year as the bank caters to the development of agricultural and industrial sectors of the rural economy. Lankaputhra Bank, General Manager Lasantha Amarasekera said the bank has so far given Rs 2.5 billion worth of loans to rural economy. He said that a five year corporate plan is in progress and with the implementation of that this year is going to be a turning point. The lending growth was slow during the last year but it will disperse Rs 2 billion worth of loans next year, he said. The chairperson Ms. Kulatunga counts over three decades of service with the Bank of Ceylon in many areas in the country.

““EEXXCCEELLLLEENNCCEE AAWWAARRDD”” TTOO MMAAHHAAWWEELLII RREEAACCHH

Jayanthan Panabokke, MD-Mahaweli Reach receives “Excellence” Award from Central Province Governor Tikiri Kobbekaduwa

The Mahaweli Reach Hotel was the recipient of a premier award for large scale businesses in the services category at the recently concluded star awards 2011 conducted by the Ministry of Industries of the Central Province for businesses that "have demonstrated excellence whilst contributing to the economic progress of the region". "This award is all the more significant in view of the fact that Mahaweli Reach is a indigenous brand which continuously strives for excellence in service standards and has always promoted the rich cultural heritage of the Central Province and in particular one of its most enduring traditions - hospitality," a statement from the hotel company said. Tucked away in Kandy, the lush green hill capital of the island, the Mahaweli Reach Hotel will captivate your imagination no sooner you enter its elegant setting. The smiles of our people will not only complement the warmth of our hotel, but will also add to the personal level of luxurious service that each and every one of our guests is given. Mahaweli Reach Hotel is situated in the city of Kandy, which is located a little over two hour’s journey from Colombo. The trip will take one through some breathtaking mountain scenery. The Hotel acquires its name due to its unique location along Sri Lanka’s longest river, the great Mahaweli. It is located only a few minutes away from the city of Kandy and is the perfect location as it gives access to the city. Mahaweli Reach has the honour of being the first hotel in Kandy to obtain five star rating and continues to be the benchmark for hotels in the city.

PPRRAASSAADD GGAALLHHEENNAA -- CChhaaiirrmmaann,, NNaattiioonnaall GGeemm && JJeewweelllleerryy AAuutthhoorriittyy Prasad Galhena assumed duties as the Chairman of National Gem and Jewellery Authority on January 3. He holds a Bachelor of Business Administration first class honours degree from the Colombo University and MBA honours from Colombo University. He is also a fellow member of CIMA and past finalist of the Institute of Chartered Accountants Sri Lanka. He has an ambitious plan to develop the country's gem and jewellery sector as a key export contributor to the national income. Having a proven track record of turning around several state institutions, he brings in a wealth of experience in management with the view to making a positive impact on the development of the industry, the authority said in a statement announcing the appointment. As Director Finance of government owned Associated Newspapers of Ceylon Ltd the incurring loss of Rs. 12 million per week was turned around to a profit of Rs. 8 million per week. He was later appointed the Chairman of Laksala which at that time was on the verge of closure and it soon became a profitable venture with the introduction of several new divisions and branches during his tenure. New product lines were also introduced and all outstanding payments to craftsman were settled. As the Chairman of the Shipping Corporation during a period of 18 months several new divisions were added and profitable ventures were undertaken. The ferry service, feeder service for vessels for India and Bangladesh, the freight logistics division, personal baggage handling, the transportation of coal for the Norochcholai power plant are among some ventures initiated by him. Among other projects initiated and in the pipeline are the acquiring of an oil tanker and three bulk cargo vessels. At the point of taking over the Ceylon Shipping Corporation, the turnover which was around Rs. 120 million has now matured to a value of Rs. 7 billion. Prasad Galhena is BBA (Hon) 1st Class and MBA (Hon) graduate from the University of Colombo, a Fellow of the Chartered Institute of Management Accounting (CIMA - UK) and past finalist of both the Chartered Institute of Accountants Sri Lanka and the Charted Institute of Marketing UK. OOMMAANN AAIIRR AAPPPPOOIINNTTSS CCEEOO

The Board of Directors of Oman Air has appointed Wayne Pearce as its Chief Executive Officer with effect from January 3, 2012. Announcing the appointment, Oman Air’s Chairman Darwish Bin Ismail Bin Ali Al Bulushi said, “On behalf of the Board of Directors, I am extremely pleased to welcome

Wayne Pearce to Oman Air. We are confident that his experience and expertise will enable the airline to reach even greater heights of excellence and confirm it as one of the leading airlines and beyond.”

From L to R: Prime Minister D.M. Jayaratne, Archbishop of Colombo, Cardinal Malcolm Ranjith, Opposition Leader Ranil Wickremesinghe, Central Bank Governor Nivard Cabraal and Dinesh Weerakkody. Photo taken at private reception held by newly appointed Chairman, Commercial Bank Dinesh Weerakkody to mark his appointment.

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Central Bank Governor Ajith Nivard Cabraal unveiling the plaque at the foundation laying ceremony of the Yalpanam Dairy Limited in Kilinochchi on Wednesday. Bank of Ceylon Chairman Dr. Gamini Wickramasinghe was also present. The Yalpanam Dairy Limited is a joint venture between Bank of Ceylon and Cargills to promote milk production and living standards of milk farmers. Picture by Sumanachandra Ariyawansa

OOffffiicciiaallss ooff TTooaassttmmaasstteerrss IInntteerrnnaattiioonnaall vviissiitt SSrrii LLaannkkaa

A top level delegation of Toastmasters International (TMI) including the organization's Executive Director, Daniel Rex, Managing Director - Communication and Development, Sally Cohen, District Governor of Japan, Bunzo Suzili, District Governor of Taiwan, Grace and DTM LGM, Joy Tsai visited Sri Lanka recently. The foreign delegation and the International Director for Region 13 - South Asia, DTM Arunasalam Balraj were welcomed on their arrival to the island at the Katunayake Bandaranaike International Airport by the District Governor DTM Zameen M Saleem and a team of Sri Lankan toastmasters. During a brief stay in the island, Daniel Rex and Sally Cohen also addressed a gathering organized by Ralph Toastmasters Club held at the Grand Oriental Hotel Colombo. Toastmasters International is the global leader in communication and leadership development. Headquartered in Rancho Santa Margarita, California, the organization has members in 116 countries with a membership that is currently standing at 270,000. Since 1924, Toastmasters helped people around the globe to become confident individuals through its communication and leadership tracks and presently there are 70 Toastmasters Clubs in Sri Lanka.

HHAAMMEEEEDDIIAA LLOOOOKKSS TTOO 22001122 WWIITTHH ZZEEAALL After successfully completing an event-filled 2011, Sri Lanka's leading men’s' wear specialist, Hameedia has embarked on a journey to further strengthen its position as The total fashion solutions provider for all Sri Lankan males and significantly expand its reach across the country and region with an unparalleled product offering. Led by the Deputy Managing Director, Hussain Sadique (in photo) and the top management, Hameedia staff started work for the New Year following tradition with multi-religious observances at

the head office at Borupana, Ratmalana. Taking a bottom-up approach the management has revised the Company's 'Vision and Mission', and established its corporate values. These were unveiled on the first day of work. Hameedia Managing Director Fouzul Hameed has been the driving force along with his brother Hussain Sadique in creating new fashions and making the company a customer focused outfit and leader in Men’s fashions in Sri Lanka.

SSAANNJJIIKKAA PPEERREERRAA JJOOIINNSS SSEERREENNDDIIBB LLEEIISSUURREE Serendib Leisure appointed Sanjika Perera as Director, Projects and Business Development for the group’s hotels with effect from January 9. An accomplished Chartered Marketer and FCIM, Sanjika Perera brings a wealth of experience in sales and marketing expertise earned in Sri Lanka and abroad, namely the United Kingdom. As Director-Projects, he will spearhead the Serendib Leisure Group's ambitious refurbishment and expansion plans. He has a career spanning 17 years with local conglomerates such as Browns Group, Hayleys Group and joined HSBC Sri Lanka where he went on to become Head of Sales - Personal Banking. He was appointed Country Manager - Sri Lanka and the Maldives for Kodak Singapore PTE Ltd in 2005. At this point in his career, Sanjika Perera made a decisive entry into the field of hospitality in 2008 as Director - UK and Ireland for Sri Lanka Tourism. Under his dynamic leadership, Sri Lanka Tourism UK won the CIM UK Marketing Excellence Awards 2010 in the hotels/leisure/tourism sector in the UK. Further, Sri Lanka Tourism UK office was shortlisted as one of the Best Tourist Board offices in UK by the Travel & Trade Gazette (TTG magazine) for two consecutive years (2009 and 2010). Holding a Master of Business Administration (MBA) degree from The Postgraduate Institute of Management, Sri Jayewardenepura University. He also possesses a Postgraduate Professional Diploma in Marketing - CIM (UK) and an Advanced Diploma in Business Administration - ABE (UK).

DDOOLLPPHHIINN HHOOTTEELL WWIINNSS TTHHEE PPRREESSTTIIGGIIOOUUSS IITTSS RREEDD SSTTAARR IINNTTEERRNNAATTIIOONNAALL AAWWAARRDD

Sri Lanka’s Club Hotel Dolphin has won the prestigious ITS Red Star International Award. This is the first time that a Sri Lankan Hotel has been nominated for this prestigious Award. The ITS brand has the largest selection of hotels amongst the Tour Operators of the Travel and tourism division of REWE Group. The focus of the ITS program is

on three-to-four star hotels. The ITS Red Star Award is awarded to the best and most popular 60 hotels worldwide. The selection for the award mainly focuses on three key factors - referrals from their guests, consistent high standards of service delivery, and high levels of guest satisfaction. By winning this award, Club Hotel Dolphin has been recognized as the very best in the country. This club-concept hotel is located in the seaside hamlet of Waikkal and is just a half hour’s drive from the international airport and 90 minutes north of Colombo. This hotel has total of 150 rooms including 98 deluxe main rooms, and 50 individual cottages. The hotel has two pools – one of which is the largest pool in Sri Lanka. The hotel also offers to its guests a wide choice of activities such as tennis, squash, volleyball, badminton, darts, archery, croquette and mini golf. The animation team keeps guests occupied with activities such as water aerobics, a club dance, bingo nights, karaoke evenings, fire limbos and animation shows. For those who prefer something more tranquil, a relaxing spa treatment or a lazy afternoon by the ‘quiet pool’ is available. Guests can also take an interesting tour of the Negombo churches that were built during the colonial period, or opt to visit Colombo on a shopping spree. The REWE Group which presents this Award is a multi-national company and a diversified retail and tourism group based in Germany. Its current turnover is around 50.91 billion Euros, and it operates in 14 European countries and employs over 325,000 people in its trading and travel divisions.(niz)

SSUURREENN GGOOOONNEEWWAARRDDEENNEE AAPPPPOOIINNTTEEDD CCEEOO,, AAIIRRTTEELL Bharti Airtel, a leading global telecommunications company with operations in 19 countries across Asia and Africa, announced the appointment of Suren Goonewardene as CEO of its operations in Sri Lanka. He worked previously with Dialog Telekom and Lanka Bell (as Managing Director) and counts over 16 years work experience in areas of finance, sales, marketing and operations. At Dialog Telekom - he managed the Fixed Telecom Services and Television portfolio, and successfully drove the television business to market leadership position with Suren as Chief Operating Officer. Announcing the appointment, Sanjay Kapoor, CEO - India and South Asia, Bharti Airtel said, "Suren brings with him rich domain experience of telecom industry and has an exceptionally strong track record of business successes in each of his previous roles. Given Suren's vast experience, sharp focus on business goals and able leadership - we are confident that Airtel's Sri Lanka team will move from strength to strength and deliver on our aggressive growth plans for the country." Bharti Airtel Lanka (Pvt) Ltd is a subsidiary of Bharti Airtel that commenced commercial operations of services in Sri Lanka in January 2009, and grew to become the fastest operator to reach the one million customer milestone in the country.

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SSRRII LLAANNKKAA:: YYEEAARR--EENNDD TTOOUURRIISSTT AARRRRIIVVAALLSS HHIITT PPEEAAKK OOFF 885555,,997755 FFOORR 22001111 The following charts illustrate gradual growth in tourist arrivals to Sri Lanka. Chart 1 – displays comparative numbers of tourist arrivals in 2011 as compared to 2010 with a 30.8 percent increase. Chart 2 – displays a 5-year breakdown of annual tourist arrivals to Sri Lanka. It is clear that the last two years (2010 & 2011) have been good years for Sri Lanka tourism, as a revenue earner.

CCHHAARRTT DDEESSIIGGNN AANNDD GGRRAAPPHHIICCSS:: AADD--BBRRII EENNTTEERRPPRRIISSEESS IINNCC..

2011 was a banner year for tourism in Sri Lanka. The original target for tourist arrivals was set at 750,000 for 2011, but the actual ended up with a record 855,975 arrivals for the year. The second chart shown below designed by TradeWinds e-Magazine shows the growth trend for the last five years. 2011 year-end figures show a 30 percent increase over 2010 ushering a new era in tourism in Sri Lanka. Considering the fact that Sri Lanka was co-host of the 10th Cricket World Cup from 19th February – 2nd April, 2011, it was a bonus year as the mega event draws 50,000 to 75,000 Cricket fans from around the world. It is interesting to note where the tourists actually originated from during the year. Tourists from The Middle East, China, India, Germany, France and Russia led the pack in this regard. As a marketing tool, “sports tourism” is a big draw and the fact that Sri Lanka has more International Cricket Grounds in the island augurs well for future cricketing events of international stature. The types of ‘Water sports’ that attract enthusiastic people range from ‘in the water’ and ‘under water’ activities such as Swimming, Snorkeling, skurfing (where the participant “skurfs” behind a boat on a surfboard), Water Skiing, Boating, Canoeing, Jet Ski, Rafting, Rowing, Sailing, Surfing, White Water Rafting, Windsurfing, and Yachting. The areas of ‘sports tourism’ and ‘water sports’, creates a niche market that Sri Lanka can build on bye and bye – a market that comes year in year out if they are satisfied with what they got in their first visit to the island. Judging by tourist arrival statistics released by Sri Lanka Tourist Board, the Western European market showed a growth of 25.5 percent up to November last year where arrivals increased from 226,000 to 281,484. The growth in the Nordian countries of the Western European market such as Sweden and Finland showed an appreciable increase. Global recession was a factor that contributed to a stagnant U.K. market – which recorded only 1 percent increase. Germany and France came in at remarkable numbers of 22 percent and 60 percent growth, for the year respectively. The Eastern Europe market recorded a tremendous growth of 38 percent, chief contributor been Russia that accounted for a 46 percent increase. The Middle East showed an impressive 50 percent increase. India led the South Asian market with an impressive 38.5 percent growth. The entire South Asia market recorded a 38 percent growth. Due to the large number of Chinese involved in Sri Lanka’s industrial development projects, tourist arrivals from the People’s Republic of China showed a 67.1 percent increase during the year. It is forecasted that over 30 percent of this year’s tourist arrivals will be from China. International tourist arrivals grew by over 4% in 2011 to 980 million, according to the latest UNWTO World Tourism Barometer. With growth expected to continue in 2012, at a somewhat slower rate, international tourist arrivals are on track to reach the milestone one billion mark later this year. International tourist arrivals grew by 4.4% in 2011 to a total 980 million, up from 939 million in 2010, in a year characterized by a stalled global economic recovery, major political changes in the Middle East and North Africa and natural disasters in Japan. By region, Europe (+6%) was the best performer, while by sub region South-America (+10%) topped the ranking. Contrary to previous years, growth was higher in advanced economies (+5.0%) than in emerging ones (+3.8%), due largely to the strong results in Europe, and the setbacks in the Middle East and North Africa. “International tourism hit new records in 2011 despite the challenging conditions,” said UNWTO Secretary-General, Taleb Rifai. “For a sector directly responsible for 5% of the world’s GDP, 6% of total exports and employing one out of every 12 people in advanced and emerging economies alike these results are encouraging, coming as they do at a time in which we urgently need levers to stimulate growth and job creation,” he added. The world tourism industry recorded 953 million and US $ 1 trillion revenue. Its daily earnings reached $ 3 billion. Tourism industry is the highest employment generator where 280 billion people are involved at present. The industry growth for 2010 and 2011 were 4 to 5 percent and 3 to 4 percent respectively. According to the World Tourism Organization the tourism industry has 3 to 4 percent growth projections for the next ten years. The Asian region recorded a 13.4 percent growth last year where arrivals increased from 180 million to 204 million. It anticipates a 10.11 percent growth this year. There will be significant growth in the Asian countries and Sri Lanka should focus on tourism to generate economic growth. Sri Lanka could offer compact, diversify and authentic product unlike in high growth countries. Though Sri Lanka is predominantly a beach destination, it could offer culture, nature, agro, community, religious and spiritual attractions.

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2010 2011

50757

74197

57300

65797

52352

75130

38300

63,835

35213

48,943 44730

53,636

63339

83,786

55898

72,463

47339

60,219 52370

69,563 72251

90,889 84627

97,517

SRI LANKA TOURIST ARRIVALS - COMPARATIVE ANALYSIS: 2010 Vs. 2011

January February March April May June July August September October November December

2007

2008

2009

2010

2011

0

200,000

400,000

600,000

800,000

1,000,000

Arrivals

494,008

438,475

447,890

654,476

855,975

2007

2008

2009

2010

2011

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AARRCCAADDIIAA LLUUXXUURRYY VVEESSSSEELL aarrrriivveess wwiitthh 22110000 ppaasssseennggeerrss Sri Lanka Tourism Promotion Bureau, along with the officials of Sri Lanka Port Authority, welcomed the vessel ‘Arcadia’, at a brief ceremony held in the Colombo harbour. This luxury carrier, owned by the UK based company Carnival PLC, had more than 2100 tourists on board, consisted of the British, Australia, New Zealand and Brazil nationals. The British owned Arcadia” cruise ship has arrived in Sri Lanka with 2100 tourists onboard. The Cruise ship is currently being berthed at the Colombo Port and is expected to leave to Thailand, its next destination. The Cruise ship Arcadia has 11 decks inclusive of a state-of-the-art swimming pool, an auditorium, a gym and a restaurant. “Having set sail from the UK on the 3rd of January this year, the vessel was berthed at Cochin, India, just before resuming its journey to Colombo” added the statement issued by the SLT.

Sri Lanka is expecting more than 20 luxury ships to arrive in the Island during this year. Sri Lanka Tourism Promotion Bureau, along with the officials of Sri Lanka Port Authority, welcomed the vessel ‘Arcadia’ yesterday at a brief ceremony held in the Colombo harbour. This luxury carrier, owned by the UK based company Carnival PLC, had more than 2,100 tourists on board, with British, Australian, New Zealand and Brazil nationals. The local excursion tour operator Gemini Tours and Travels was thereafter busy with taking tourists in the ship to the prearranged destinations; Kandy, Pinnawala and Colombo City Tour. By 11 p.m. today, the vessel is scheduled to leave for Thailand, its next destination. Arcadia has 11 decks inclusive of a state-of-the-art swimming pool, an auditorium, a gym and a restaurant. Having set sail from the UK on the 3rd of January this year, the vessel was berthed at Cochin, India, just before resuming its journey to Colombo. According to the SLPA officials, more than 20 such luxury carriers, coordinated by the Shipping Agency Services (Pvt) limited, had already been programmed to tie up in Colombo by the end of 2012. This good news to those who are involved in the tourism sector is also vital to the economic development of the island, which has high expectations to boost the number of tourist arrivals to 950,000 by the end of the year. The Island nation is planning to attract 950,000 tourists in 2012, a record figure, if achieved.

FFOORRMMEERR DDUUTTCCHH HHOOSSPPIITTAALL -- CCoolloommbboo''ss nneeww ""SShhooppppiinngg PPrreecciinncctt"" Colombo, Fort is filled with beautiful old buildings, but many are crumbling and falling into disuse, or have been taken over by banks and commercial ventures. So, it is a pleasant sight to see the Dutch Hospital restored and already filling with people. Make sure to make a pit stop there, next time you’re in Fort. Located opposite the World Trade Centre, the Dutch Hospital is said to have been built around 1681, according to Christopher Schweitzer, a German national serving in Sri Lanka. It went through some serious redevelopment before being reopened on December 2. The first things you’ll notice are the mustard-coloured walls, the wooden windows, the teak roof beams and the old school terracotta roofing tiles. You walk through the large entry arch into a stone courtyard. It is light, airy, and filled with office workers from the nearby World Trade Centre. This heritage site has now been transformed into a shopping complex, with several restaurants included. The courtyard is a place for people to meander; it has several stone tables set out invitingly. Leading off from the central courtyard are the entrance to several shops. ODEL is here, but this outlet sells Sri Lankan themed clothing rather than the usual merchandise. There is also Shilpa, a handicrafts shop selling unique items, everything from a tiny gold knife at Rs. 350 to a traditional devil mask (at around Rs. 11,000). Spa Ceylon and Natures Secrets are also tucked in unobtrusively at the back of the premises, should you be in the mood for some pampering.

Most of the other outlets are restaurants. There is the Harpos run Colombo Fort Cafe, which was unopened when we visited this Tuesday. The cheerful blue furniture gave an earthy, home-like feel to this place. There is “Work In Progress” which serves sandwiches and Dutch-themed food for between Rs. 650 to Rs. 1000. This place was already bustling with clientele. There were some cheaper pastries as well, for those on a budget. There’s the up-market Ministry of Crab, selling juicy, export-quality crabs starting at Rs. 2780. Staff at the restaurant said it would be open on Monday, serving just dinner at first. The Heladiv tea cafe serves iced teas for around Rs. 250 and cake (and vanilla meringue cupcakes!) for around Rs. 450. This has a “lounge” feel to it, and the reasonable prices should ensure its popularity. The shops and restaurants are all different, yet somehow tie together thanks to the decor. A new shopping precinct at the former Dutch Hospital of Colombo opened for public today, (02 Dec) as the latest tourist attraction in the city. An effort of Tourism Development Authority and Urban

development Authority has resulted in much awaited launch of the former Dutch Hospital of Colombo as a shopping precinct. The opening ceremony was graced by the Minister of Economic Development, Hon Basil Rajapaksa and Secretary to the Ministry of Defence and Urban Development Mr. Gotabaya Rajapaksa. Initially, the Tourism Authority took over this property and developed with a view to converting it into a tourist attraction while retaining its original Dutch architecture. Later, the Urban Development Authority under the direction of Defence Secretary took expeditious steps to complete the renovation to make a center for tourists. During the renovation process of the building, special attention was paid not to change the original structure of the building while it was modernized with state-of-the-art facilities. The shopping precinct, which consists of 12 stalls including a restaurant, jewelers, textile and handicraft stalls, was declared open as a high end tourist centre. As per records, the hospital was built during the rule of the Dutch from 1656 to 1796. A Dutch map drawn in 1732 shows the hospital at its present site. However, the hospital had excited since 1681 according to a description by Christopher Schweitzer, a German national who was in Sri Lanka serving the Dutch from 1676 to 1682. In the colonial era, the Dutch hospital was established to cater to medical requirements of the staff of the Dutch India Company. It was located close to the harbour as it was convenient to transport patients from the ship. This would be a unique centre. Centrally located surrounded by city hotels, Dutch Architecture that was retained to be witnessed by visitors into Sri Lanka and a place to shop and dine, contributes to the efforts of authorities to make Colombo a vibrant city which is a part of the Tourist Strategy developed under the guidance of Hon. Basil Rajapaksa.

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YYaallaa NNaattiioonnaall PPaarrkk

Yala National Park is the most visited and second largest national park in Sri Lanka. Actually it consists of five blocks, two of which are now open to the public; and also adjoining parks. The blocks have individual names also, like Ruhuna National Park for the (best known) block 1 and Kumana National Park or 'Yala East' for the adjoining area. It is situated in the southeast region of the country,

and lies in Southern Province and Uva Province. The park covers 979 square kilometres (378 sq mi) and is located about 300 kilometers (190 mi) from Colombo. Yala was designated as a wildlife sanctuary in 1900, and, along with Wilpattu it was one of the first two national parks in Sri Lanka, having been designated in 1938. The park is best known for its variety of wild animals. It is important for the conservation of Sri Lankan Elephants and aquatic birds. Sri Lanka’s Yala National Park is recognized of having one of the highest densities of leopard population in the world. The leopards prefer hunting at night but also active during dawn and desk and daytime hours. Like most cats, these leopards are pragmatic in the choice of diet which can include small mammals, birds, reptiles as well as larger animals. The animal also preys on sambur, barking deer, wild boar and monkeys. The cat has been known to tackle almost fully grown buffalos. The Sri Lankan leopard hunts like other leopards, silently stalking its prey until it is within striking distance where it unleashes a burst of speed to quickly pursue and pounce on its victim. The prey is usually dispatched with a single bite to the throat. There are six national parks and three wildlife sanctuaries in the vicinity of Yala. The park is situated in the dry semi-arid climatic region and rain is received mainly during the northeast monsoon. Yala hosts a variety of ecosystems ranging from moist monsoon forests to freshwater and marine wetlands. It is one of the 70 Important Bird Areas (IBAs) in Sri Lanka. Yala harbours 215 bird species including six endemic species of Sri Lanka. The number of mammals that has been recorded from the park is 44, and it has one of the highest leopard densities in the world. The area around Yala has hosted several ancient civilizations. Two important pilgrim sites, Sithulpahuwa and Magul Vihara, are situated within the park. The 2004 Indian Ocean tsunami caused severe damage on the Yala National Park and 250 people died in its vicinity. The number of visitors has been on the rise since 2009 and a tour to the wildlife sanctuary is one of the highlights of a tourist visit to Sri Lanka.

LLOOLLCC aannnnoouunncceess kkeeyy RRss..1100 bbiilllliioonn aaccqquuiissiittiioonn

‘Location! Location! Location!’ was how an emerging heavyweight in the country’s hospitality industry announced a major acquisition amounting to a little more than Rs. 1 billion. LOLC Leisure on Tuesday (Jan. 03) in a jubilant press release announced the strategic acquisition of Dickwella Resort in the deep south of Sri Lanka. Located at the southern-most tip of Sri Lanka, Dickwella Resort is universally acknowledged as having the most stunning location of all beach properties in the island. LOLC Leisure purchased a 100 percent stake in the resort for a consideration of Rs. 1,014 million. LOLC Leisure is owned by LOLC and Browns Investments with a holding of 70% and 30% respectively. Ishara Nanayakkara, Deputy Chairman, LOLC Group, the holding company of LOLC Leisure, commented: "We are proud to have acquired this beachside property situated at such a prized location. This acquisition marks another milestone in our leisure holdings and propels us into the forefront of the hospitality industry. Dickwella Resort will be another key offering in our bouquet of hotel properties along the western coast of Sri Lanka. The resort has already carved out a distinctive niche for itself on the global tourist map and we intend to upgrade the luxury facilities and enhance the room capacity in the months ahead to catapult it further into a multi-star category hotel that offers a holiday experience of a lifetime.

The Southern Expressway, now operational, has succeeded in drastically reducing travel time to the resort. "In time to come, the completion of the Colombo-Katunayaka Highway will reduce travel time to Dickwella Resort even more. LOLC Leisure remains committed to consolidating its leisure business in the years ahead and we remain in pursuit of acquiring resorts in unique stunning locations, such as Dickwella Resort, that instantly set

them apart for their sheer natural beauty. We are extremely bullish about prospects for tourism in the country and our substantial holding of uniquely located properties will ensure they become the preferred choice in the local and global tourists’ itinerary." Situated on a promontory that projects outwards into the ocean, the resort is surrounding by the sea on all three sides and has a rich pioneering history behind its origins. In 1975, Italian entrepreneur Enzo Azzola ventured out into the untouched south coast of Sri Lanka. Unable to believe his luck on discovering a beautiful location so reminiscent of the Italian Riviera, he built Dickwella Resort on this spot and introduced the ‘club’ concept for the first time in Sri Lanka, in vogue in Milan at the time. The Italian collaborated with local artists and blended traditional Sri Lankan architectural styles with contemporary design, imparting a unique character to the resort. Today, Dickwella is a dream getaway for tourists seeking peace and relaxation. Celebrated sci-fi author, Sir Arthur C. Clarke has famously called Dickwella Beach "the best beach in Sri Lanka". Significantly, its equidistant location from the eastern and western shores of Sri Lanka enables tourists there to get a sensational view of sunrises and sunsets with a timeless appeal. And yet, the resort also offers guests recreational options such as water sports, diving instruction, shipwreck sites, canoeing, etc., to choose from. The resort boasts of a world class luxury spa managed by French wellness expert, Yves. Located close to Dondra, the resort offers easy access to world famous tourist sites such as Yala, Kirinda, Mirissa beach, dolphin and whale-watching excursions and so on. However, many tourists might find it impossible to tear themselves away from the poetic beauty of the location of the 76 beautifully designed villas of Dickwella Resort, preferring perhaps to soak in the majestic splendour of the sweeping vistas of ocean, beach, blue skies and feeling of peace and serenity. LOLC Leisure intends to leverage on the vast property to expand the room capacity to 100 plus in the immediate future. The diversified conglomerate, LOLC Group, forayed into the leisure sector with LOLC Leisure acquiring Confifi Group hotels in 2010, namely, Hotel Riverina, Club Palm Bay and Eden Resort & Spa. The two former hotels are closed for extensive renovation and will be reopened in 2013. Operating under LOLC Leisure management, Eden Resort & Spa has just completed the most successful year of operations since its inception in 2010/11. LOLC Leisure has also acquired Tropical Villas, previously owned by Jetwings and Hayleys, located alongside the other three properties, and which is also under extensive refurbishment. Once reopened in 2013, these hotels will be managed by a reputed hotel management brand and reflect 4-star plus luxury at its best. Demonstrating its commitment to acquiring land or property situated in valuable locations, LOLC Leisure has bought another beautifully located 30-acre swath of land in Passikudah, which is surrounded by the sea, river and lagoon, offering tremendous potential as an exotic resort in the near future. All in all, LOLC Leisure now holds 626 rooms in the country’s ‘Golden Mile’ on the western coast and in Dickwella in the Deep South. The extent of room capacity makes LOLC Leisure one of the largest resort-owning companies in Sri Lanka, the company said.

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CCHHAAAAYYAA TTRRAANNZZ HHIIKKKKAADDUUWWAA UUNNDDEERR CCOONNSSTTRRUUCCTTIIOONN

Chaaya Tranz Hikkaduwa, the latest addition to the Chaaya Hotels and Resorts was launched last November. Economic Development Minister, Basil Rajapaksa, opened the newly refurbished Chaaya Tranz on Saturday, together with Deputy Minister Lakshman Yapa Abeywardana, John Keells Group Chairman and CEO Susantha Ratnayake, John Keells Group Deputy Chairman Ajit Gunewardene, CEO and Sector Head of Sri Lankan Resorts Jayantissa Kehelpannala, MP and General Manager of Chaaya Tranz Mario Stanic. This avant-garde property is a celebration of the liberal lifestyle of Hikkaduwa with vibrant interiors and luxurious spaces which both draw inspiration from and showcase the local flavours of Hikkaduwa. A total investment of US$ 12 million has been utilised for the transformation of Chaaya Tranz Hikkaduwa. The 150 room resort will house superior and deluxe rooms and suites: all with direct sea views. The facilities of the resort will ensure a fully refurbished main restaurant, specialty crab restaurant, Mediterranean restaurant, bars and lounges as well as a roof top spa. Moreover, the Group will make Chaaya Tranz its base for Whale Watching in Mirissa. The unique features of the hotel were highlighted laying emphasis on the art wall, which promotes local talent and carries the colourful illustrations of amateur artist Vajira Gunawardana. The event was a gastronomic adventure with food stations being spread out throughout the property and the invitees were spoilt for choice with the selection of seafood BBQ, Mediterranean, Sushi and Sashimi corner, Indian and Thai corners and a room dedicated to desserts and a variety of chocolates was a definite point of attraction. The entertainment for the night was specially flown in from Norway, ‘Kohinoor’ the six member band played music, which is a mix between world music and dance hall with a touch of the Rasta philosophy.

BBEENNTTOOTTAA BBEEAACCHH HHOOTTEELL OOWWNNEEDD BBYY JJOOHHNN KKEEEELLLLSS

With the expected boom in the tourism Industry in the country the John Keells Leisure Group owned Bentota Beach Hotel initiated a project to place Sun beds with mattresses, towels and umbrellas on the sandy beach of Bentota to provide a unique value addition to guests. "Being a

beach holiday resort, this initiative provides a unique beach experience to our guests and beach operators too would benefit from this initiative which would strengthen the mutual understanding between the formal and informal entities of the industry. They were trained for more than eight months by the Hotel in collaboration of LINC Project of Responsible Tourism Partnership funded by the Travel Foundation of UK, with the coordination of Bentota-Beruwala Hoteliers Association," the company said.

JJEETTWWIINNGG BBLLUUEE NNEEGGOOMMBBOO IISS WWOORRTTHH AA VVIISSIITT The sands of the famed Negombo beach carry memories with the wind; seeing much change over the years, such as the former Blue Oceanic Hotel being magically transformed into a property of luxury and elegance, The sands of the famed Negombo beach carry

memories with the wind; seeing much change over the years, such as the former Blue Oceanic Hotel being magically transformed into a property of luxury and elegance, renamed the Jetwing Blue. The product of a massive re-creation exercise undertaken on the Negombo sea front, transforming the Blue Oceanic to the ethereal blue that is now Jetwing Blue was no small task. A tireless effort spanning several months was completed last April. The new layouts are so designed that upon entry, one straightaway sees the idyllic stretch of sand and beyond it the azure expanse of the Indian Ocean. The once 6 room hotel now boasts 112 exquisite rooms including 06 skyline suites which redefines the phrase ‘heaven on earth’ and underwrites the thought of tranquility blending with elegance. With every imaginable luxury being at your finger tips, Jetwing Blue will offer an experience as opposed to a mere hotel stay. Dining is unique to say the least, with the Show Kitchen encompassing the main restaurant. Each menu preparation is meticulously prepared, with finesse and flair by star class chefs operating gleefully from separate action stations offering different cuisine. Backed up by the finest equipment, Jetwing Blue is a feast for the tongue, a true taste bud extravaganza. Other facilities include two swimming pools, as well as a SPA on the second floor bringing that exquisite view of the Indian Ocean while the indulgence of a variety of treatments is yours to enjoy! Jetwing Blue is in the process of completing its crown jewel, the 600 seat Conference and Banquet Hall which will be the largest of its kind in the Negombo area. Whether it is for weddings or important business meetings, the Hall promises to be the ideal, best equipped, best located Conference & Banquet facility with a 20 minute access to the Katunayake International Airport. To the international as well as local traveler, what the Jetwing Blue thus offers is an excellent opportunity to engage in one’s business and yet enjoy a corner of the world that continues to retain a charm of its own.

GGRRAANNDD OORRIIEENNTTAALL HHOOTTEELL TTOO UUNNDDEERRGGOO MMAAJJOORR FFAACCEELLIIFFTT Grand Oriental Hotel (GOH), one of the oldest hotels in Colombo adjoining the Colombo Harbour is expected to see a major facelift with strategic investments to be made in the coming months. Speaking to Daily News Business, Grand Oriental Hotel Chairman Diyanath Rohan Jayasinghe said discussions are under way to add another 100 rooms to the hotel before the end of 2013. It is too early to quantify the total investment of the project or the main investor parties involved in the project since project suggestions are still under review. According to Jayasinghe, the Bank of Ceylon would probably have a major share of investment for the proposed hotel development project as BOC owns 90% stake of Grand Oriental hotel. The hotel has been neglected for a long period of time and what we want is to regain our past glory with making the hotel as a star class hotel in Sri Lanka. The hotel has also seen a significant growth rate in terms of occupancy level and revenues. At present, the Grand Oriental Hotel boasts of 100 rooms, of which 76 are operational and 25 being upgraded. Sources said that the investment is assumed to be over Rs one billion. One of the leading hotel chains in Singapore, Raffles has also held discussions with the senior management of the GOH on the improvement of the hotel.

CCHHIINNAA BBAAYY TTAANNKK FFAARRMM IISS AA ‘‘TTOOUURRIISSTT AATTTTRRAACCTTIIOONN’’

R.K. RADHAKRISHNA A unique oil tank farm that has survived the ravages of war and peace. By end 2011, more than 8.5 lakh tourists would have passed through the gates of Sri Lanka's gateway, the Bandaranaike International Airport. A majority of them will head south to the popular tourist destinations — Bentota, Hikkaduwa, Unawatuna, Galle and Arugam Bay. A few thousands will head north-east to enjoy the still untouched beaches near Batticaloa (Pasikuda) and Trincomalee. But it is highly unlikely that even a handful will see one part of the island's history that is so well hidden in Trincomalee — the tank farm. One of the most unique sights in this part of the world is a tank farm. Yes, it is exactly what the phrase means — a collection of tanks that makes the area look like a farm! During the Second World War, Trincomalee was an important port and played host to the biggest oil tank farm in the British Empire. When the war raged, a desperate Japan tried to strike at the oil farm, in a bid to cripple the war effort. In 1942, a Japanese fighter plane with its armament intact, tried to crash-land in a bid to blow up the tank farm. But the design of each of the 99 tanks was so unique that there was no conflagration. Just the one tank that the fighter landed into was destroyed. There was no damage in any of the other 98 tanks! The China Bay Tank farm is the largest one located between West Asia and Singapore. The tank farm connects to the Trincomalee harbour, which is the fifth largest all-weather, non-tidal natural harbour in the world, with a 56-km shoreline, making this tank farm most effective for fuel receipt, storage and supply. The tank farm, formerly operated by Ceylon Petroleum Corporation, is now being maintained by the Lanka Indian Oil Corporation, a fully-owned subsidiary of IOC. Currently, only 15 of these tanks are operational.

NNEEWW FFOOOODD CCOOUURRTT AATT WWOORRLLDD TTRRAADDEE CCEENNTTRREE

The World Trade Centre is Sri Lanka’s Best Business Address and a busy place. With over 750,000 square feet of prime office and retail space, the World Trade Center, Colombo is an international business complex on par with premium grade buildings in

major cities around the world. Built to the highest standards, this impressive landmark comprises two 39 storey towers connected by a 4 storey retail block. It has attracted prestigious local, international and multinational companies as tenants, making it the most sought after business address in Sri Lanka. Besides the arcade of shops, the iconic building also houses numerous government departments, private companies and banks. On any given working day, there is a lot of traffic that flows into the building. For this multitude of people walking in and out of the building, a Food Court on the main floor was a dire need since the last one closed down many years back. With this backdrop, it is welcome news that a new food court recently opened at the World Trade Center, Colombo. The food court - ‘Café De World’ is serving a variety of foods with multiple cuisines ranging from Sri Lankan, Indian Chinese, Thai and Continental with a choice between set menus as well as a la carte, a news release issued in this connection said. A salad bar and a choice of sandwiches, cakes and other baked goods are also on offer with a wide range of beverages and desserts. The food court will further enhance the offerings at what is claimed as the country’s ``best business address’’ housing over 200 companies and 10,000 employees whilst catering to over 5,000 visitors on a daily basis. Located in the central business district, the multifaceted twin towers are complete with multiple F&B outlets, local and international banks, airlines and travel operators, telecommunication providers and on-site parking on nine levels making WTC a one-stop-shop for all its tenants and visitors alike. The food court is now open for breakfast, lunch and dinner from Monday through Friday and for breakfast and lunch on Saturdays, the release said.

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Tourism projects in the pipeline…… SSUUNN CCIITTYY TTOO IINNVVEESSTT $$ 880000 MMIILLLLIIOONN OONN KKAATTAANNAA TTOOUURRIISSTT PPRROOJJEECCTT

South Africa's Sun City resort will invest $800 million in a tourism project in Sri Lanka, the head of the island nation's state-run Tourism Board said on Friday. Sun City resort is run by South African gaming and hotels group Sun International Ltd (SUIJ.J). It will be the largest ever investment in the country's leisure sector, which is booming since the end of a 26-year war in May 2009. "Sun City of South Africa is now going to make an $800 million investment in a 200-acre private property," Nalaka Godahewa - Chairman, Sri Lanka Tourism Board told Reuters in an interview. That decision is finalized. That is one of the biggest investments." Elanza Joubert, Sun City Resort's deputy inventory manager at events and entertainment department, said in an e-mail response to Reuters questions that the company would not comment on the plan until the new year. The investment will be made on Sri Lanka's hotel city in Katana, a coastal town located 15 km north of the commercial capital, Colombo, he said. The government expects at least $1.5 billion in foreign investment

in a proposed "tourist city" that includes four five-star hotels, shopping and a convention centre in Katana.

Sun City is considered one of South Africa's most popular gaming resorts, drawing thousands of visitors each year to

its four hotels, which incorporate the five star Palace of the Lost City and The Cascade Hotels. The famous Southern African 'gambling Mecca' boasts two casinos, both of them open daily. The Jungle Casino boasts 250 slot machines, while the Sun City Hotel Casino has 330 machines in both smoking and non smoking venues. In addition, the casinos offer blackjack, poker, punto banco and American Roulette.

SSOOFFTTLLOOGGIICC TTOO BBUUIILLDD LLUUXXUURRYY RREESSOORRTT IINN PPAASSIIKKUUDDAAHH Softlogic Holdings PLC is to invest Rs 200 million to build a luxury resort with 40 rooms and 20 luxury villas in Pasikudah. Softlogic Holdings PLC had entered into an agreement with the shareholders of Ominga International Private Ltd for the construction of the luxury resort and luxury villas. Softlogic would own 66.66 percent. The investment will be made in tranches upon the Board making calls based on the funding requirements of Ominga for the construction. Construction of the luxury resort and luxury villas will commence next month and is scheduled to be completed by next year. The luxury resort and luxury villas in Pasikudah will initially employ about 75-100 people from the area. The government has already taken measures to develop some places of attraction, such as, Pasikudah with the expected boom in the tourism industry. More than 350 luxury rooms are being built with Malu Malu Resort

in Pasikudah already been opened. Commencing operations in 1991 as a software development company with only twelve employees and an annual turnover of over US $ 25,000, Softlogic is today a highly diversified group of companies with over 4,800 employees in Sri Lanka, Pakistan and Australia and an annual turnover of approximately US $ 150 million. With a diversified portfolio of businesses that profit from Sri Lankan opportunities, the Softlogic Group is one of the most exciting, diversified, investor-friendly conglomerates in the country. We have built strong, sustainable market-leading positions in a range of high-growth sectors, including IT, Telecommunications, Healthcare, Retail, Financial Services, Automobiles and Leisure.

US$122 M investment by Anilana Hotels includes eight hotel projects First ever five star resort at Nilaveli in the East Coast Anilana Hotels and Properties Ltd, a group controlled by entrepreneur and frontline Asset Manager Asanga Seneviratne and his family, will shortly launch eight hotel and property development projects with investments totaling to US$ 122 million. The group successfully raised capital through a private placement of US $ 70 million early last year, will apply for a listing on the Colombo Stock Exchange end January, Seneviratne said. The former boutique hotel chain moved out of the "small hotel " category in 2010 and invested heavily in property, mainly in the East coast and now will open the first ever five star resort on the world famous Nilaveli stretch in Trincomalee and another project in Passikudah, both in April, he said yesterday. "The stunning 70 - suite five star resort at Nilaveli boasts of state of the art technology and design and has two 30-metre swimming pools , an open kitchen, two restaurants , roof top dinning and Spa’s designed by a world renowned specialist. The 60 room five star Resort in Passikudah is similar in style and the chalets are a few metres away from the ocean,’’ he said. Two other properties are under construction in Dambulla and Panichankerni and are set to open early 2013. The developments under design are Blue Lagoon in Trincomalee , Vakarai, Kalkudah and Colombo, he said. The Chairman of the Group is Peter Amerasinghe who heads the Aristons Group of Companies and its Board comprises leading hotelier and promoter Prassana Jayawardene and former Bank of Ceylon Chairman Gamini Wikramanayake. The group COO in charge of the hotels operations is British National Trevor Burton who counts over 23 years of experience with the Grand Hyatt Group of Hotels and has launched many Hyatt properties around the world. The construction operations are headed by Gihan Zoysa who successfully built over 800 houses in the east coast after the tsunami. Anilana Hotels will invest Rs1.4 billion constructing its first two hotels which will accept guests next year. The first, built on a six acre property on lease from the government for 50 years, is the first block on the famous Pasikuda bay, where other up market chains are also planning hotels. The five acre property at Nilaveli where the former ‘Nightjar’ hotel stood, already a popular tourist beach because of the shallow beach, jewel-blue water and a natural coral reef created pool, is where the second 70 room hotel will be constructed. “These areas are virgin territory and offer some of the finest beaches in the world,” he claims. Mano Ponniah Associates, a leading architectural partnership which has won awards for hotels it conceived in the Maldives like Adaaran Prestige Water Villas, are the designers for the project. Together with ‘related investors’ Seneviratne had purchased 80 acres of the best beachfront land over the last eight years. He transferred ownership of this real-estate to Anilana, a firm he owned and which used to manage five boutique hotels, for his controlling stake. Following the private placement Anilana is valued at Rs2.5 billion. Seneviratne forecasts that value to quadruple in a couple of years when he plans to take the firm public. The property at Pannichankerni, to be developed in Anilana’s second phase, is located on a spectacular six acre beach head surrounded by a green algae filled soft sandy shoreline near a fishing village and bordering the Trincomalee Natural Reserve while in Pasikuda its hotel will be surrounded by calm blue water and a coral meadow thriving with bird-life. “I believed the war was going to end at some stage and actually hoped it would finish sooner than it did,” he said during an interview with LBR magazine at Anilana’s office at Colombo’s Reid Avenue. “We plan to keep acquiring land. We have earmarked a couple of big blocks for purchase.” In an offer document for the private placement the firm disclosed its intention to bid for land on the North Western coast under the government’s Kalpitiya Tourism Development Initiative and further claims it has ‘identified additional property on the Eastern Province for acquisition’. Foundations have already been laid for the first two hotels to be financed by the cash raised in the private placement. Private villas which are being presold at between Rs35 to 55 million each to finance construction are also part of the first phase. The response to the sale of 50 villas has been encouraging. “When you offer a new product, in a country people haven’t visited or an area they haven’t visited I believe there is going to be an influx,” Seneviratne says confidently. He is also counting on the over one million Sri Lankans living abroad, “60 to 70% of them haven’t even visited Sri Lanka for the last 5 or 10 years,” he says. Hotel earnings are forecast at Rs: 717 million in the first year of full operations in 2013 by Seneviratne’s TKS Securities which will handle the private placement when all six hotels are operating. If forecasts are accurate the two year forward PER for investors in the private placement would be 3.4 times, a lot more attractive than the market’s two year forward PER of 12 to 23 forecast by analysts. Four of the hotels in Trincomalee, Vakarai, Pannichankerni and Dambulla will be built during the firm’s second phase of expansion which will also include more private villas. “The model is within three hours of road travel to have six resorts,” he contends. TKS Securities is forecasting the firm will need, in addition to the billion in new equity which has already been raised, Rs1.8 billion in debt and Rs2.5 billion in villa sales proceeds to complete all six hotels and villas.

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CINNAMON LAKESIDE LAUNCHES COLOMBO’S FIRST FLOATING LEISURE FACILITY Cinnamon Lakeside Colombo is launching its latest venture – 8° (degrees) on the lake, a floating hotel venue for private events which is the first by a 5-star hotel. The 70’ by 30’ vessel which is in its final stages of construction will be the first of its kind on the Beira Lake. It will consist of an air conditioned lower deck and an open upper deck with a clear ceiling for protection and will accommodate 100 passengers, the hotel said. The vessel offers a unique setting for exclusive, high profile events with its minimalistic chic interiors designed by Nayantara Fonseka of Taru fame. The layout and choice of décor is intended

to capture the essence of its natural surroundings, it said. “The Beira Lake creates a beautiful setting to our hotel but it is time that it became more than just a view,” explains Denis Gruhier, General Manager of Cinnamon Lakeside Colombo. “8° on the lake was conceptualized as a means of extending the guest experience beyond the expected. Although Cinnamon Lakeside Colombo is situated in the heart of Colombo with every convenience a business traveler would enjoy, when a guest steps

into the hotel they could easily forget they are in the city. Aboard 8° on the lake, the bustling city of Colombo will be a distant memory.” The hotel has already received several requests for bookings. Malcolm Thomas, Banquet Sales Manager at Cinnamon Lakeside Colombo foresees the venue lending itself to cocktail parties, gourmet meals, candle-lit dinners, champagne brunches, high teas, weddings, engagements parties, bachelor and bachelorette parties, birthdays and anniversary parties.

COLOMBO HOTELS ASKED TO HOLD ON TO THEIR “STARS” Downgrading five stars to attract more guests would hurt SMEs Colombo City Hoteliers Association President M. Shanthikumar said that no five star hotels should attempt to have the property downgraded to four stars as it would adversely affect the four stars. When a hotel with five star facilities is marketed at four star rates it would be a distinct disadvantage to the existing four stars and they also will be forced to seek permission to be downgraded to the next category from the relevant

authorities, he said. (Please see The Island Financial Review of Wednesday 25, January: Galadari sinks, mulls shedding status to stay afloat – Treasury holding it down with 13% EPF stake). Shanthikumar was of the opinion that it will have a detrimental effect on all other hotels and hence it should not be done."If it is done, the move will badly affect Small and Medium Enterprises in Tourism and kill that segment of the industry," he warned. The veteran hotelier asked what would happen to the four stars, they would then have to down grade to three stars and the three stars to two stars and where would the lowest category be placed. "If a hotel is not doing well with its occupancy it will lead to loss of revenue and the hotel will have to launch an effective and aggressive marketing campaign," he said.

The current minimum room rates for City Hotels are as follows - If this trend would be followed it would become a precedent and eventually the country would not be able to achieve the expected 2.5 million tourist arrivals target in 2016, he said.

2 – Star 3 – Star 4 – Star 5 - Star Minimum Room Rate US $55 ++ US $75 ++ US $95 ++ US $125 With applicable taxes US $70 (Approx.) US $96 (Approx.) US $121 (Approx.) US $159 (Approx.)

CCHC President Shanthikumar said that the City Hotels are enjoying an average of 75 percent occupancy this month and it would be 70 percent in February. The highest number of visitors is from India, followed by UK and Germany. When asked whether the government has no plans to launch an aggressive marketing campaign at this hour, Shanthikumar answered in the affirmative and said that Treasury Secretary P.B.Jayasundara has planned to promote the country with the help of stakeholders such as Sri Lanka Tourism,Sri Lankan Airlines, SriLanka Tea Board, Sri Lanka Export Promotion Board, Sri Lanka Gem and Jewellery Authority etc. and said it is a good move. Leading international chains Shangrilla and Sheraton will construct two five stars at the Galle Face which together would have a total of around 800 rooms he said. "Shangrilla will be a five star and not a seven star as speculated by some," he stressed. In addition a four star by the well known hotel chain Movenpick and a three star by John Keells-Sanken Lanka, both in Colombo -03 is being constructed. The building constructed by Ceylinco at the Cornels Super market for the proposed five star Hyatt Regency has been taken over by the Urban Development Authority and would decide on the fate of it, he said. "There would be more two and three star hotels coming into operation in the coming months in the metropolis and the latest trend is that some entrepreneurs are investing on apartments for tourists where the latter could hire them for week or a longer period," Shanthikumar, pointed out. It is heartening to note that some five stars are upgrading the properties investing large sums of money as they are confident of the future. This augurs well for Sri Lanka’s tourism industry said the veteran hotelier.

CINNAMON LAKESIDE BARGE -lower deck

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“CEYLON TEA CAN BE VIEWED AS EMULATING SUCCESS ROUTE OF APPAREL INDUSTRY”, ROHANTHA ATHUKORALA “Ceylon Tea can be viewed as emulating the success route of the 3.8 billion dollar Apparel Industry of Sri Lanka and the results would be seen in years to come, even though the two industries work on a totally different business dynamic environment”, said Rohantha Athukorala addressing the 20th Global Session of the FAO Inter Government Group on Tea hosted by the Sri Lanka Tea Board. Athukorala, who was the 8th Chairman of the Sri Lanka Export Development Board and the pivotal policy making body The National Council For Economic Development (NCED) under the Presidential Secretariat, looked back at the apparel industry that began operations in the early 80’s. At the time, apparel industrialists were referred to as mere ‘contract manufacturers ‘and some even used to refer to them industry s tailors. After some strategic thinking by the industry, it gave leadership to the world by making Sri Lanka the fashion apparel of the world for Ethically manufactured clothing.

"This has given teeth t o the industry in competing with price savvy merchandise coming in from Cambodia, China and Bangladesh and the apparel industry must be complimented," said Athukorala. Today this industry is targeting 5 billion dollars plus in export revenue by making Sri Lanka an Apparel Hub in Asia for R&D, technology sharing for fast fashion which is a case study to the world," opinioned the Guest Speaker, who heads National Portfolio Development for Sri Lanka & Maldives of the United Nations Office For Project Services(UNOPS). Then focusing on Ceylon Tea he showed how the Tea Industry of Sri Lanka, with strong leadership was slowly but surely taking the same route with Sri Lanka being the 1st ozone friendly certified Tea producing nation of the world. Athukorala then tracked back and showed to the eminent gathering how Ceylon Tea had carved out its current strong position globally with some key strategic moves in the last thirty years even, with all the challenges that a commodity can be up against. Starting from the times that the Plantation industry was nationalized in the 1970’s when it came under government control, it went on in the 1980’s to make a bold decision to make the Colombo auction control the Global demand chain by breaking away from the great London auction system which has held ground for many years. "The Colombo auction commands the highest values for tea globally, a testament to the fact that this decision was correct," Athukorala said. Thereafter in the 1990’s the supply chain was privatized to management company’s which gave the opportunity for new thinking to be introduced to the industry with strong R&D power and capital infusion that resulted in Sri Lanka demonstrating the best performing country globally for value addition at a commanding 43% "Today, we see that Ceylon Tea has taken the high ground with some focused decisions on conforming to global standards on MRL levels and has gone further by developing a new standard for Tea that has resulted in Ceylon Tea being the 1st certified ozone friendly tea globally that no other tea producer has received which the industry must be complimented for," said Athukorala. Given that tea was classified globally as a food/beverage, the ozone friendly proposition makes Ceylon Tea a cut above the rest, even though there are many challenges for the local Industry with catapulting cost of production (COP) that needs to be managed. "Hence we see the similarity between the Apparel and Tea Industry even though the industry dynamics are totally different." he said. Sri Lanka needs to give leadership to supply chain sustainability, given that the wage increase between the time period of 1991-2011 is a staggering 986%, said Athukorala. Sri Lanka’s daily wage rate is 137% of the average auction price in the last year whilst the other producing nations like India are at 93% and Kenya at a healthy 79%. "What the country requires now is strengthen the demand chain by launching the Ceylon Tea campaign under the Ethically manufactured proposition, whilst the ozone friendly badge supporting this claim will give teeth to the campaign," said Athukorala. "Which once again makes Sri Lanka giving leadership to the world on the ‘Ethically’ manufactured route just like the Apparel industry of Sri Lanka voiced Athukorala."

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Sri Lanka raises rates, slows spending Central Bank of Sri Lanka (CSBL) raised its key interest rate for the first time in five years and asked commercial banks to reduce lending in the face of a worsening trade deficit. CSBL hiked its benchmark lending rate by 50 basis points to 9.0 percent, the first rise since February 2007 when the rate was upped to 12.0 percent from 11.50 percent. The bank also asked commercial banks to rein in lending, arguing that much of it financed the country's surging import bill, owing to higher oil costs and cheap credit that drew a flood of foreign-made vehicles into the country. The Indian Ocean nation's trade deficit hit a record $8.83 billion in the first 11 months of last year, shrinking its foreign currency reserves. The bank has spent more than $2 billion in recent months in direct market interventions to buttress the Sri Lankan rupee against the dollar as the trade deficit heaped pressure on the local currency. The bank said Sri Lanka's foreign currency reserves fell to $5.9 billion at the end of 2011, compared with $8.1 billion in July 2011. Among measures to discourage imports and encourage exporters, the country devalued its currency by 3.0 percent in November. Central Bank governor Nivard Cabraal said earlier this week that the bank misjudged the credit expansion, as well as Sri Lanka's growing trade deficit. "Imports were bigger than we expected and the credit growth was also something that we did not anticipate," Cabraal told reporters Tuesday. The latest interest rate increase came despite the government announcing that inflation had moderated to 3.8 percent year-on-year in January, compared to 4.9 percent a month earlier. Three years ago, the government was forced to negotiate a $2.6-billion bailout by International Monetary Fund at the end of the country's bloody decades-long civil war. The government has since drawn down $1.8 billion, but announced earlier this week that it did not need the final tranche.

Credit Brake - Sri Lanka monetary tightening welcomed by IMF - Update

A hike in rates and a credit ceiling to rein in loan growth would help narrow a widening external deficit in Sri Lanka, but exchange rate flexibility should be part of the policy package, the International Monetary Fund said. Strong credit growth put pressure on Sri Lanka's peg with the US dollar and the central bank hiked policy rates by 50 basis points Friday and slapped an 18 percent ceiling for credit growth for 2011. Banks could increase growth to 23 percent with foreign borrowings. In 2011 commercial bank credit go business alone was around 35 percent. "I think there is a common understanding that this challenge should be addressed," IMF mission chief Brian Aitken said. "There was a strong policy response. We feel a more flexible exchange rate should be part of the package." Sri Lanka's active policy rate shifted from 7.0 percent at which money is drained from the banking system to 8.50 percent at which money is injected when liquidity dried up from forex market interventions. With Friday's rate hike, policy rates have effectively risen 200 basis points from mid 2011. Higher interests can reduce consumption, increase deposits available to banks to loan out and also cut total credit demand, rebalancing the economy. A currency depreciation trims consumption by destroying the purchasing power of salaries and lifetime domestic currency denominated savings especially of old people. It can also destroy capital available for future investments. But a prolonged interest rate defence of the peg, where rate rises are slow and painful can also create a banking crisis and reduce what statisticians measure as 'economic growth'. Aitken said he would not speculate on the likely economic growth for 2012 if a purely interest rate defence was mounted to keep the dollar peg. The strong credit growth and imports in 2011 came partly from a post war recovery. "The widening in imports came from a post-war boost in confidence and consumer and investment goods imports, increasingly rapidly," Aitken said. "The challenge comes out of economic success." Last year Sri Lanka is estimated to have grown around 8.0 percent. Aitken said credit growth was unexpectedly high in the last quarter of 2011. "We had hoped to see a slowdown in credit growth and a narrowing of the trade deficit. It has not happened." Analysts have said that part of the credit growth came from liquidity injections made by the central bank to sterilize its interventions in the forex markets from September onwards. Sri Lanka 'devalued' the rupee in November against the US dollar from 110 rupees to 113.90 in the spot market but there was no clean float to break the sterilized intervention cycle. On Friday the peg was nominally devalued by 20 cents to 114.10 rupees An IMF standby loan for Sri Lanka was suspended in mid 2011 after authorities insisted on defending a peg with the US dollar, resulting in more than a quarter of Central Bank's forex reserves being lost in the past two quarters. The IMF has suspended its last two tranches with Sri Lanka missing foreign reserve target and the lender has not been able to 'complete its review' to release the tranches.

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Stroke is preventable By Dr Harold Gunatillake – Health Writer domiciled in Sydney, Australia When you see a disabled person after having a stroke, my mind goes to think how unfortunate that person has been in life to suffer in that manner. If one reads material on health issues, discipline once life to lead a healthy one, with proper diet and exercise, a stroke is a far -off possibility or specifically impossibility unless you are born with congenital defects of the arteries in your brain, such as berry aneurysms, etc. A stroke is a sudden partial loss of brain functioning usually caused by a clot that stops the flow of blood to a part of the brain. The damage is really not sudden as was thought before, now it is known that it develops over many years.

The risk factors or conditions that might lead to stroke include; • high blood pressure, • excessive smoking, • Heart disease, obesity, stress and diabetes. • The risk of stroke increases with an increase in age and its rate fairly high in Sri Lanka

Dr. Martin J. O'Donnell and Dr. Salim Yusuf of McMaster University in Hamilton and colleagues analyzed data from 3,000 stroke patients and 3,000 controls without stroke of the same age and gender in 22 developed and developing countries from March 2007 to April 2010. "Our findings suggest that 10 risk factors are associated with 90 per cent of the risk of stroke," the study's authors concluded.

10 Stroke risk factors • High blood pressure • Smoking • Waist-to-hip ratio or abdominal obesity • Diet • Lack of Physical activity • Too much of Lipids or fats in the diet • Type 2 diabetes • Alcohol intake • Stress and depression. • Heart disorders. (Irregular heartbeat, Transient ischemic attacks (TIA),)

Going through the above list of factors causing stroke, it is clear that stroke is preventable. There are many factors that can increase your chance of having a stroke. Some of these, such as age, gender and a family history of stroke, cannot be controlled. However, there are a number of risk factors for stroke which you can control, as detailed above. Taking steps to control these risk factors can lower your chance of having a stroke. Quitting smoking, limiting alcohol, eating healthy and being physically active would be the most important factors in addition to the others mentioned, to reduce your chances of having a stroke. Diabetes is also a risk factor so if you are diabetic, talk to your doctor.

Early signals of stroke • Facial weakness - Check their face. Has their mouth drooped? • Arm weakness - Can they lift both arms? • Sudden numbness or weakness of the body, especially on one side • Speech difficulty - Is their speech slurred? Do they understand you? • Sudden vision changes in one or both eyes, or difficulty swallowing • Sudden , severe headache with unknown cause • Sudden problems with dizziness, walking or balance. • Sudden confusion

Stroke is a medical emergency that causes damage or death to your brain cells. It is the second biggest killer in most countries,

next to heart disease. Statistics show that stroke kills more women than breast cancer and more men than prostate cancer. The older you are the more likely you are to have a stroke: 20% of strokes occur in those under 50 years. The mortality rate for stroke has been on the decline since the mid1960s in the developed countries of Asia, such as Australia, New Zealand, and Japan, with some improvement in Singapore, Taiwan and Hong Kong, some areas of China and Malaysia about 15 years later. In India, China, Philippines, Thailand, Sri Lanka, Iran, Pakistan, Nepal, there has been a rapid increase in stroke mortality and prevalence of hypertension. The prevalence of hypertension according to new criteria (>140/90 mm Hg) varies between 15-35% in urban adult populations of Asia. In rural populations, the prevalence is two to three times lower than in urban subjects. Hypertension and stroke occur at a relatively younger age in Asians and the risk of hypertension increases at lower levels of body mass index of 23-25 kg/m2. Overweight, sedentary behavior, alcohol, higher social class, salt intake, diabetes mellitus and smoking are risk factors for hypertension in most of the countries of Asia. (Ref: Journal of Human Hypertension: Vol 14, Number 10/11, October 2000). As mentioned earlier a tiny clot can cause damage to your brain tissue beyond, and the doctors call the dead cells an ‘infarct’. This clot can come from the heart, carotid arteries supplying the brain, and then we call them embolic clots. Another cause is a rupture of an artery in the brain (haemorrhagic stroke) causing damage to the brain tissue fed by that artery. This occurs when a weakened blood vessel in the brain bursts. The result is bleeding inside the brain that can be difficult to stop. Because of the immediate brain cell damage, it is necessary to get to hospital quickly by ambulance. TIA This happens when the blood supply to the brain is interrupted for a short period of time. This is mainly caused from a blood clot from a ruptured plaque in the carotid arteries. Hence, they are referred to as “Transient Ischemic attacks”. This too is an emergency situation where you should be rushed to the hospital. With blood thinning medication you almost recover totally in most situations.

Stroke foundation in Australia has detailed the following steps to prevent stroke. There are 6 steps people can take to reduce the risk and the Danger of stroke These are: 1. Know your personal risk factors: high blood pressure, Diabetes, and high blood cholesterol – Know your numbers 2. be physically active and exercise regularly 3. Avoid obesity by keeping to a healthy diet 4. Limit alcohol consumption 5. Avoid cigarette smoke. If you smoke, seek help to stop now 6. Learn to recognize the warning signs of a stroke, and act FAST. A chronic annoying headache could be an early sign. Reduce the risk for stroke by managing these risk factors and learn to recognize the warning signs of a stroke. This may help reduce the risk of stroke in your family

Dr. Harold Gunatillake

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CCoouurrtteessyy:: The Huffington Post Bianca Bosker

We knew Facebook was big -- you don't get to 800 million users without making a few bucks -- but until today, we didn't know just how big.

Facebook filed papers for an initial public offering on Wednesday, pulling back the curtains on the inner workings of the world's largest social networking site and opening a new phase in the company's ambitious plan to compile, and make money off of, our personal information. Facebook seeks to raise $5 billion in an IPO that looks likely to be the largest by a web company since Google in 2004 and could place the social network's value as high as $75 billion to $100 billion.

The portrait of Facebook that emerges in Facebook's over 150-page S-1 filing with the Securities and Exchange Commission is of a mature company -- by Silicon Valley standards -- already enjoying robust revenues thanks to a vast, active userbase churning out data for the site. Facebook CEO and co-founder Mark Zuckerberg also enjoys the use of a private plane, the filing revealed, and earned a base salary of $500,000 last year, more than triple the salary of Google co-founders Larry Page and Sergey Brin when Google filed for its IPO.

Facebook looks more seasoned than many of its Silicon Valley peers had when they announced plans to go public. According to the prospectus it filed with the SEC, Facebook has been profitable for the past three years. The company reported revenues of $3.7 billion last year, an 88 percent increase over the prior year, and earned a $1 billion profit, more than Google's total revenue the year it debuted on public markets. Facebook's income also dwarfs that of other internet companies that recently completed their IPOs. Zynga's profits totaled $90.6 million in 2010, for example, while LinkedIn had barely flirted with profitability when it filed for its IPO and Pandora was still hundreds of millions of dollars short of breaking even. Advertising comprises a full 85 percent of Facebook's revenues, down from 98 percent in 2009. Zynga alone accounts for 12 percent of Facebook's total revenues, as the social gaming company must pay Facebook a cut of purchases made in Zynga's Facebook games.

Facebook revealed impressive statistics about its growing and active userbase, which totals 845 million members, more than half of whom, or 483 million, return to the site daily. These hundreds of millions of users have shared more than 100 petabytes (100 quadrillion bytes) of photos and videos with Facebook, and produced an average of 2.7 billion "likes" and comments a day in the final three months of 2011.

The company's stunning growth will prove difficult, if not impossible, to sustain, however. Facebook has reached a 60 percent penetration in the U.S. and U.K., according to the company's own estimates, and Facebook warned investors to expect its expansion to slow.

"We anticipate that our active user growth rate will decline over time as the size of our active user base increases, and as we achieve higher market penetration rates," Facebook wrote. "To the extent our active user growth rate slows, our business performance will become increasingly dependent on our ability to increase levels of user engagement in current and new markets."

Facebook users could also be wooed away by the very features the social network introduced, Facebook noted. The company has made a push to grow its platform and attract third-party app developers, such as the Washington Post and Spotify, to build apps that run on Facebook. But, the filing cautioned, "[o]ur efforts to expand the Facebook Platform may result in users increasingly engaging with our Platform developers' Facebook-integrated websites instead of engaging on Facebook, which may negatively affect our advertising revenue

and harm our business."

Mark Zuckerberg might dress the part of low-key Silicon Valley startup CEO, but the tech visionary has already made a mint, has a private plane at his disposal, and stands to make tens of billions of dollars off of Facebook's IPO.

Facebook's filing provides a glimpse into the scores of cash being accumulated by the company and doled out to its investors and employees. Zuckerberg's base salary, which amounted to $500,000 in 2011, was the highest of any employee at Facebook. By contrast, Google co-founders Larry Page and Sergey Brin earned a salary of $150,000 each when Google filed for its IPO in 2004.

Facebook chief operating officer Sheryl Sandberg and chief financial officer David Ebersman tied for second place, with a base salary of $300,000 each. Yet Sandberg's total compensation in 2011, or $30,873,579, made her the highest paid of any Facebook employee, followed by Facebook's vice president of engineering Mike Schroepfer, who took home $24,727,128. Zuckerberg owns 28 percent of the company, which could be worth $28 billion following the IPO, and the 27 year-old CEO plans to take a $1 per year salary beginning in 2013, much like former Apple CEO Steve Jobs did while at the helm of Apple.

Being CEO of Facebook comes with a few perks. The filing noted, "[o]ur compensation committee has also authorized our CEO and COO to use private aircraft for business purposes," and continued, "Mr. Zuckerberg may use private aircraft for personal purposes in connection with his comprehensive security program. On certain occasions, Mr. Zuckerberg may be accompanied by family members or others when using private aircraft.". In his letter to investors, Zuckerberg included a manifesto entitled "The Hacker Way" that spelled out the company's priorities and focus on delivering features first and improving later. "Done is better than perfect” is painted on Facebook's walls, Zuckerberg wrote.

"The Hacker Way is an approach to building that involves continuous improvement and iteration. Hackers believe that something can always be better, and that nothing is ever complete. They just have to go fix it -- often in the face of people who say it’s impossible or are content with the status quo," wrote Zuckerberg. "Hacking is also an inherently hands-on and active discipline. Instead of debating for days whether a new idea is possible or what the best way to build something is, hackers would rather just prototype something and see what works. There’s a hacker mantra that you’ll hear a lot around Facebook offices: 'Code wins arguments.'"

"We don’t build services to make money," Zuckerberg added. "We make money to build better services."

Take a look at the slideshow (below) to view what Facebook thinks are the biggest threats to its future success.

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OTTAWA MONTREAL VANCOUVER TORONTO

By Martin Wolf - Financial Times - Posted on January 25, 2012

Global economy: Another year of living dangerously

What can we see in the world economy in 2012? Risks galore, is the answer. The debt crisis of the high-income countries is already four and a half years old. Yet it shows no sign of abating, particularly in the euro zone. While emerging and developing countries are in reasonably robust condition, they would be vulnerable to an intensification of the crisis, which could hit them via several channels: trade, finance and remittances. Many countries -- both high-income and developing -- are in a weaker condition than they were in 2008 and would, accordingly, find it harder to respond effectively. The January, 2012, consensus of forecasts for this year is lower than it was in January, 2011, for all the world’s significant economies, including even fast-growing China and India. The cuts for euro zone countries are dramatic: euro zone growth is now forecast at -0.3 per cent this year, against 1.6 per cent a year earlier; German growth is forecast at 0.5 per cent, down from 1.8 per cent; French growth is forecast at zero, down from 1.7 per cent; and Italian growth is forecast at -1.3 per cent, down from 1.1 per cent.

Anybody who imagines fiscal outcomes will improve against such a grim background is living in a fantasy world. Improvements in structural deficits will be largely -- if not entirely -- offset by deterioration in the cyclical balances. Among high-income countries, the bad news is not restricted to Europe. But it is much worst there. U.S. growth in 2012 is now forecast at 2.2 per cent, a small improvement on the October consensus of 1.9 per cent, but still well below last January’s 3.3 per cent. Japan’s forecast has fallen least, from 2 per cent to 1.9 per cent, though that is largely because of the recovery from the impact of the tsunami.

The U.S. and Japan have their own vulnerabilities, both economic and political. Huge U.S. structural fiscal deficits and the extreme partisanship in Washington are causes for concern. But the euro zone is the epicentre of current fragility, because of the inability of its members to halt and reverse the dire interaction between financial and fiscal turmoil in a rapidly growing number of vulnerable countries. What makes this stage of the long-running debt crises even more difficult to manage is that sovereign creditworthiness has deteriorated substantially. The more vulnerable sovereigns -- including those of Italy and Spain -- could not easily rescue their banks, should they need to do so. Even in countries whose sovereign borrowing costs remain low, such as the U.S., U.K. and Germany, it is not clear that governments would be willing -- or be permitted by domestic politics -- to intervene as aggressively, in support of their financial systems, as in 2008. These vulnerabilities bring substantial downside risks. As the World Bank’s latest Global Economic Prospects argues: “While contained for the moment, the risk of a much broader freezing up of capital markets and a global crisis similar in magnitude to the Lehman crisis remains. In particular, the willingness of financial markets to finance the deficits and maturing debt of high-income countries cannot be assured. Should more countries find themselves denied such financing, a much wider financial crisis that could engulf private banks and other financial institutions on both sides of the Atlantic cannot be ruled out.”

In sum, the world is certain to live for years with the consequences of the private and public debt accumulations in the high-income countries in the years up to 2007, which were themselves in part the result of the huge global macroeconomic imbalances of that era. But the economic, financial and political defects of the euro zone have hugely exacerbated the fragility. The members of the euro zone are unable either to dissolve their union or eliminate its structural frailties.

What does this actual and potential turmoil in high-income countries mean for the world economy as a whole? In response the Institute for International Finance argues in its most recent Capital Markets Monitor that “the key question for 2012 is whether the resilient parts of the global economic and financial system -- the emerging market economies and the non-financial corporate sectors -- are robust enough to cushion the potential impact of high credit risk in the mature economies”.

In its latest Global Economic Prospects, the World Bank forecasts a slowdown in world trade, with the volume of growth forecast at 4.7 per cent, down from 6.6 per cent last year. It forecasts a decline in net private capital flows to developing countries, from $1,055.5-billion in 2010 and an estimate of $954.4-billion in 2011 to $807-billion this year. It has also downgraded the forecast for economic growth in developing countries to 5.4 per cent, from 6.2 per cent forecast in June 2011. On the face of it, none of this looks too serious. Over all, that judgment is probably right. But we can identify at least two important qualifications to such comforting optimism. First, averages conceal as much as they reveal. Even such deterioration in external conditions would pose a substantial problem for many developing countries. Many countries have large current account

deficits. Many also have substantially worse fiscal positions than in 2008. All such countries are vulnerable to even modest interruptions in the flow of global finance and the buoyancy of receipts from exports and remittances. Some of these vulnerable countries are important: Turkey, with a forecast current account deficit of around 10 per cent of gross domestic product this year, is a good example.

Second, the shocks in high-income countries might be far bigger than those in the baseline scenarios. At worst, these shocks could be as big as they were in 2008. A collapse in commodity prices, to take an example, would devastate the finances of many emerging and developing countries. Yet there is likely to be a far smaller capacity to combat such shocks in both the high-income and the emerging and developing countries than at that time. In sum, as the World Bank argues, “developing countries need to prepare for the worst”. Unfortunately, that is precisely what the non-financial corporate sector and solvent households of the high-income countries have now been doing for some years. The result has been private sector austerity in these countries and so what might best be described as a “contained depression”. But containing that depression has depended on support from huge fiscal deficits and highly expansionary monetary policies. This is going to remain true in 2012. If governments cannot - or will not - persist with providing such support, a true depression remains possible. Everybody would then be affected, including the most vigorous emerging economies. These remain difficult times: 2012 will not be the end of them.

Bouncing back from recession, Toronto leads Canada’s growth – By tavia grant - Globe and Mail Update Published Thursday, Jan. 19, 2012 11:10AM EST

For the second quarter in a row, the city with the most bustling economy in the country is Toronto. It tallied Canada’s fastest economic momentum in the third quarter of last year, according to CIBC’s ranking of the country’s 25 largest municipalities. Edmonton is second, followed by the tech hub of Kitchener, Ont. The recession slammed Canada’s largest city harder than elsewhere, resulting in steep job losses. But in recent years, Toronto has also shown a quicker recovery, to a point where economic momentum is running at its highest level in more than a decade. In fact – other than the recession in 2009 – the city has been in the top five in the rankings for the past six years. “The consistently strong performance of Toronto reflects the growing diversity of the city’s economic engine,” wrote the bank’s deputy chief economist Benjamin Tal. Though the labour market “is showing signs of fatigue, the quality of employment continue to improve.”

Several measures point to strength. The city’s population has risen 3.9 per cent since bottoming out in the third quarter of 2009, outpacing the 2.5-per-cent growth in the country as a whole. Employment has climbed 4.6 per cent, led by full-time positions, more than the 3.4-per-cent average. Personal and business bankruptcies fell much faster in Toronto than elsewhere, and housing starts rose more quickly. Edmonton lands in second place, thanks to robust population growth and job growth that is leading the rest of the country. Kitchener is in third place because of its population growth, high quality of employment and growth in construction activity. Halifax, Vancouver and Ottawa are also seeing strong economic activity. Cities with the most lacklustre economic momentum are concentrated in Central Canada. They are Windsor, Ont., Saguenay, Que. and, in last place, Thunder Bay, Ont. CIBC compiles the index by tracking changes in nine macroeconomic variables, including employment, home sales, bankruptcies and population growth.

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VISITORS TO CANADA FROM ASIA PACIFIC REGION - 2006 - 2010

Asia Pacific tourist arrivals in Canada in 2010 increased from the level in 2009. Tourism had picked up in 2005 to 2008 following the setbacks of SARS, the Iraq war and a weak global economy in 2003. Since then, however, the level of arrivals has stagnated. Still, there has been considerable difference in performance among various source countries. Arrivals from China has continued to rise steadily, while the numbers from Japan – Canada’s main source market – declined sharply in each of 2008 and 2009 and rose again in 2010. Source: “Asia Pacific Visitors to Canada” adapted from the Statistics Canada Notes: *Other Asia Pacific includes: Bangladesh, Bhutan, Brunei, Cambodia, North Korea, Laos, Macau, Maldives, Mongolia, Myanmar, Nepal, Sri Lanka, and Vietnam.

Asia Pacific Visitors to Canada - (000s) %Change

09 to 10

2006 2007 2008 2009 2010

Australia 206.5 228.7 248.7 213.7 244.0 14.3

China 147.9 155.8 165.8 166.2 200.0 20.4

Hong Kong, SAR 111.9 115.6 132.4 111.8 119.4 6.8

India 90.0 105.2 115.0 111.6 132.2 18.5

Indonesia 12.4 11.8 11.0 11.5 12.9 12.1

Japan 401.1 343.5 287.2 205.6 243.0 18.2

Malaysia 11.4 11.1 13.2 9.0 11.5 28.9

New Zealand 39.2 43.6 48.1 42.7 47.2 10.5

Pakistan 15.6 16.3 15.3 17.7 18.7 5.3

Philippines 50.5 58.8 62.3 62.7 56.6 -9.8

Singapore 24.3 24.8 25.6 21.9 25.6 16.9

South Korea 201.8 212.6 196.6 144.1 170.0 17.9

Taiwan 94.9 82.5 63.5 51.6 54.4 5.5

Thailand 12.9 13.7 13.5 11.7 13.5 15.6

Other Asia Pacific* 16.0 16.3 18.5 16.9 20.3 20.2

Total 1,436.4 1,440.2 1,416.8 1,198.7 1,369.6 14.3

Sri Lanka

Bangladesh

Pakistan

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

224,829

145,255

350,664

230,304

343,213

421,665

369,024

269,227

515,671

292,964

549,479

357,836

338,512

578,074

533,393 2006

2007

2008

2009

2010

5-YEAR ANALYSIS OF EXPORTS FROM CANADA TO SRI LANKA/BANGLADESH/PAKISTAN FOR PERIOD 2006 – 2010 Data obtained from Statistics Canada and the U.S. Census Bureau (U.S. Department of Commerce)

CHART PREPARED BY: AD-BRI ENTERPRISES INC.

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