ATTN: ANNIKA

RUNDOWN

THE STATE OF BUSINESS – 24TH JAN, 2008

RESERVE MONEY VTR SASHIKA

TOURISM VTR NISHANI

BOC VTR NILANTHA

EMPLOYMENT VTR NISHANI 01.30

ADD STATE OF BUSINESS BRIDGE

BANKERS VTR RAVI

ADD CORPORATE BRIDGE

APPLE SODA VTR ANOUK

ADD STOCK WATCH BRIDGE

STOCK UPDATE CARDS 01.30

CURRENCY CARDS 00.20

LINE UP EDITOR: ANOUK/ NISHANI

ANCHOR: NISHANI
HEADLINES
SEGMENT:MAIN
AIRED:
SHOT:
REPORTER:NISHANI
SLUG:EMPLOYMENT

THE INTERNATIONAL LABOUR ORGANIZATION SAYS THAT GIVEN THE

LABOUR FORCE GROWTH IN SOUTH ASIA, CREATING DECENT JOBS IN
FUTURE HAS BECOME THE MAJOR CHALLENGE FOR THE REGION.

IT FURTHER STATES THAT SOUTH ASIA STILL HAS AN ENORMOUS

DEFICIT IN DECENT WORK WITH TOO MANY PEOPLE IN VULNERABLE
EMPLOYMENT SITUATIONS AND TOO MANY STILL WORKING AND LIVING
IN POVERTY.

THESE FACTS WERE DISCLOSED IN THE GLOBAL EMPLOYMENT TRENDS

2008 REPORT RELEASED TODAY BY THE INTERNATIONAL LABOUR
ORGANIZATION.

ROLL VTR

’EMPLOYMENT TRENDS’
VOICE OVER/NISHANI/EMPLOYMENT/23RD JAN

WITH DECENT WORK FOR ALL BEINGS INTRODUCED AS A NEW TARGET

UNDER THE MILLENNIUM DEVELOPMENT GOALS IN A BID TO HALVE
THE SHARE OF PEOPLE LIVING IN EXTREME POVERTY BY 2015 SOUTH
ASIA FACES THE CHALLENGE OF CREATING MORE INCLUSIVE FORMAL
LABOR MARKETS.

GLOBAL EMPLOYMENT TRENDS 2008 SAYS THIS SHOULD BE SPECIALLY

TARGETED AT THE POOR, THE WOMEN, YOUNG PEOPLE AND ALSO THE
ENORMOUS POPULATION OF ILLITERATES IN THE CURRENT LABOR
FORCE IN SOUTH ASIA WHO ARE OFTEN TRAPPED IN DEAD END JOBS.

THE GLOBAL EMPLOYMENT TRENDS 2008 REPORT RELEASED BY THE

ILO RECOMMENDS INVESTING IN EDUCATION AND OTHER FORMS OF
HUMAN CAPITAL TO SET THE PRECONDITIONS FOR THE POOR TO
OBTAIN BETTER JOBS.

THE ANALYSIS ON GLOBAL EMPLOYMENT TREND SHOWS THAT IT IS

ALSO IMPORTANT FOR THE REGION TO PUT SOCIAL PROTECTION
MECHANISMS IN PLACE TO MAKE SURE THAT PEOPLE DO NOT FALL
BACK INTO POVERTY.

ACCORDING TO THE SRI LANKA LABOUR FORCE SURVEY CONDUCTED BY

THE DEPARTMENT OF CENSUS AND STATISTICS BY THE THIRD
QUARTER OF 2007 SRI LANKA’S LABOUR FORCE STOOD AT 7.5
MILLION PEOPLE.

61% OF TOTAL EMPLOYMENT IS IN THE INFORMAL SECTOR WHILE 82%

OF AGRICULTURE SECTOR EMPLOYMENT IS IN THE INFORMAL SECTOR.

ABOUT 52% IS IN THE NON AGRICULTURE SECTOR.

ENDS/
SEGMENT: CORPORATE
DATE: 24TH JAN 08
REPORTER: ANOUK
SLUG: APPLE

ELEPHANT HOUSE SAYS IT HAS INVESTED OVER 900 MILLION RUPEES

OVER THE LAST 18 MONTHS TO UPGRADE THEIR EXISTING BEVERAGE
FACILITIES.

THIS WAS REVEALED AT THE MEDIA CONFERENCE HELD YESTERDAY TO

ANNOUNCE THE LAUNCH OF ITS NEW SOFT DRINK, ELEPHANT ‘APPLE
SODA’.

ROLL VTR

SUPERS

Jit Gunaratena – President

Consumer Foods & Retail Group (JKH)

S. Srikanth
Head of Beverages
Ceylon Cold Stores

TAG

‘ELEPHANT APPLE SODA’

VOICE OVER/ 24TH JAN 08/ APPLE/ ANOUK

A SPECIAL ATTRIBUTE OF THE NEW ELEPHANT APPLE SODA IS THAT

IT EMANATES AN AROMA OF APPLE AS SOON AS THE BOTTLE IS
OPENED.

ELEPHANT HOUSE SAYS THAT THE PRODUCT WHICH WAS TEST-

MARKETED, PRIOR TO ITS LAUNCH ISLAND-WIDE WAS RECEIVED WELL
BY CONSUMERS, WHICH INDICATED THAT THE DRINK WILL DO WELL
IN THE MARKET.

VOICE CUT- SRIKANTH

(7:30)
WE’RE LAUNCHING IT ON THE 1.5 LITRE PET BOTTLES, WE’RE
LAUNCHING IT IN THE 400 ML GLASS BOTTLE, WE’RE LAUNCHING IT
IN A TRADITIONAL 250 ML GLASS BOTTLE, AVAILABLE AT THE
NORMAL PRICE, NOT A HIGHER PRICE, NOT AT A PREMIUM PRICE
(7:50)

THE SOFT DRINKS GIANT IS ALSO LOOKING AT MORE INNOVATIONS

IN FUTURE WITH MONEY ALREADY BEING INJECTED INTO UPGRADING
ITS FACILITIES.

VOICE CUT- JIT

(9:18)
WE HAVE INVESTED OVER 900 MILLION RUPEES OVER THE LAST 18
MONTHS UPGRADING OUR EXISTING FACILITY, ADDING NEW CAPACITY
TO SEE THAT WE’RE A STRONG PLAYER IN BEVERAGES (9:35)

ENDS/
SEGMENT : MAIN
DATE : 24/01
REPORTER : RAVI
SLUG : INTEREST RATES - VTR

NOW IT’S OUR SPECIAL SEGMENT – BANKERS VIEW, WHICH WILL

BRING YOU THE VIEWS, OPINIONS AND SUGGESTIONS OF LOCAL
BANKERS ON THE CURRENT ECONOMIC SITUATION.

ROLL THEME

LOCAL BANKERS POINT OUT THAT THE CONTINUATION OF THE HIGH

INTEREST RATES REGIME WHICH PREVAILS AT THE MOMENT WILL
CAUSE PROBLEMS BY INCREASING THEIR COSTS AND RISKS.

THIS CLAIM COMES FROM TWO TOP BANKERS AMIDST THE CENTRAL
BANK ANNOUNCING LAST WEEK THAT THE INTEREST RATES IN THE
DOMESTIC MARKET ARE ON A DECLINING PATH.

ROLL VTR

Nihal Fonseka
Director/CEO
DFCC Bank

Mahendra Fernando
Director/CEO
Union Bank

‘SOARING INTERESTS’

The WAYR of 91 day bills for

this week is 19.25%

Total value of loans taken

in Dec. ’07 is…………

Total value of NPV’s

in Dec. ’07 is…………
VOICE OVER – INTEREST RATES – 24 /01 – RAVI

LAST MONTH THE WEIGHTED AVERAGE YIELD RATES OF THE 91 DAY

T-BILLS GALLOPED TO 21.3 PERCENT WHICH IS AMONG THE HIGHEST
RATES REACHED IN RECENT TIMES.

HOWEVER, FROM THE BEGINNING OF THIS YEAR INTEREST RATES IN

THE GOVERNMENT SECURITIES MARKET HAVE SEEN SIGNS OF
DECLINING WITH THE WAYR OF THE 91 DAY BILLS REDUCING
SIGNIFICANTLY BY 1.18 POINTS COMPARED TO THE FIRST WEEK OF
THIS YEAR.

BUT NIHAL FONSEKA THE CEO OF DFCC BANK SAYS INTEREST RATES
ARE STILL FAR FROM WHERE IT SHOULD BE.

Vc - FONSEKA
19:06
WHILE THE REDUCING TREND IS WELCOME ITS STILL A HIGH RATE.
SO I WOULD THINK WE CANT EVEN TALK OF INTEREST RATES BEING
LOW, UNTIL WE GET AT LEAST TO SINGLE DIGITS. THIS IS WHAT
THE SITUATION WAS ABOUT 3-4 YEARS AGO. 19:34

BANKERS SAY HIGH INTEREST RATES ARE NOT CONDUCIVE FOR

GROWTH AND ULTIMATELY IMPACT THE CONSUMER AND THE BORROWER
IN ADDITION TO THE BANKS.

VC – UNION
18:08
HIGH INTEREST RATES MEAN THAT PEOPLE GET INTO DIFFICULTIES
FOR WHAT THEY’VE ALREADY BURROWED OR THEY GET DISCOURAGED
BECAUSE THEY CANT PAY BACK HIGH RATES. THOSE WHO FEEL THAT
THEY CAN BORROW AND PAY THERE RATES PASSES IT TO THE
CONSUMER AND HE HAS TO PAY IT. SO ALTOGETHER ITS NOT
CONDUCIVE FOR GROWTH AND TO BANKS HAVING GOOD RISK
PROFILES. BUT IT’S SOMETHING THERE AT THE MOMENT. 18:43

WHENEVER INTEREST RATES REACH HIGHER LEVELS THE REPAYMENT

OF LOANS BECOMES HARDER FOR BORROWERS WHICH LEADS TO A HIGH
AMOUNT OF NON-PERFORMING LOANS.

CARD.

ACCORDING TO THE CENTRAL BANK THE NON-PERFORMING LOANS

RATIO FOR LAST MONTH HAVE BEEN 5.1%

THIS IS AN INCREASE OF RS……

HOWEVER, FONSEKA SAYS THAT STILL THE SITUATION HAS NOT
CAUSED TOO MUCH OF A WORRY FOR DFCC.

VC – FONSEKA
23:12
IN OUR LEASING AREA WE HAVE HAD SIGNS OF STRESS. ON THE
LOANS HAVEN’T SEEN TOO MUCH OF AN ISSUE. OVERALL THE
SITUATION DOES NOT CAUSE US TOO MUCH OF WORRY. BUT I’M
CONCERNED IF THESE INTEREST RATES CONTINUE TO BE IN THESE
HIGH LEVELS FOR A PROLONGED PERIOD THEN WE CAN HAVE
PROBLEMS. 23:44

DESPITE THE HIGH INTEREST RATES THAT THEY HAVE TO BEAR,

FONSEKA SAYS THAT THERE HAVE BEEN NO SIGNS OF DRAW BACK BY
THE INVESTORS SO FAR.

VC – FONSEKA
25:05
OUR CREDIT PIPELINE FOR LARGE PROJECTS IS STILL QUITE GOOD,
WHICH WE MONITOR. BUT IT WAS SLIGHTLY LESS THAN LAST YEAR.
BUT NOT SIGNIFICANTLY, BUT I DON’T THINK THERE’LL BE A
CREDIT GROWTH WHICH IS AS HIGH AS LAST YEAR. 25:34

THESE INTEREST RATES IN THE DOMESTIC MARKET WILL HAVE TO

FURTHER DECLINE TO PROMOTE MORE INVESTMENT IN THE COUNTRY.

BUT ANALYSTS SAY THAT WITH THE HIGH INFLATION PREVAILING IN

THE COUNTRY THE INTEREST RATES ARE VERY UNLIKELY TO COME
DOWN ANYTIME SOON.

END
Card.

Total value Total Value of

of Loans Non-performing Loans

July ‘07
Aug ‘07
Sep ‘07
Oct ‘07
Nov ‘07
Dec ‘07
SEGMENT: MAIN
DATE: 24/01/08
REPORTER: NK
SEGMENT: LOCAL

ONLINE FRAUD AND IDENTITY THEFT HAVE BECOME MAJOR HEADACHES

FOR BANKS TODAY AND IT HAS ALSO LED TO SIGNIFICANT
FINANCIAL LOSES WHILE INFLICTING DAMAGE TO THE REPUTATIONS
OF FINANCIAL INSTITUTIONS.

AS SUCH IN AN EFFORT TO MOTIVATE CUSTOMERS TO TAKING ON

INTERNET BANKING WHICH IS EASIER FOR EVERYONE CONCERNED,
THE “BANK OF CEYLON” – HAS DEPLOYED ADVANCED IDENTITY
PROTECTION SERVICES FROM “VERISIGN” INC.

ROLL VTR

TAG

‘ONLINE PROTECTION’

VeriSign provides services to the

40 largest banks in the world

VIP services linked to eBay, PayPal

& Charles Schwab

SUPER

Shekhar Kirani
Vice President
VeriSign
Voice over – boc

THE BANK OF CEYLON LAUNCHING ITS ONLINE PROTECTION PROGRAM,

ATTEMPTS TO STEP UP THE SRI LANKAN BANKS’ FIGHT AGAINST
INTERNET IDENTITY THEFT AND ONLINE FINANCIAL FRAUD.

IN DEPLOYING VERISIGN IDENTITY PROTECTION SERVICES TO

STRENGTHEN THE AUTHENTICATION OF THE BANK’S INTERNET
BANKING FACILITY FOR ITS CUSTOMERS, THE BOC HAS ADDED A KEY
LAYER OF PROTECTION TO SECURE ITS CUSTOMERS’ DIGITAL
IDENTITIES.

V/C

ADDRESSING THE MEDIA, THE BOC’S HEAD OF INFORMATION

TECHNOLOGY NISSANKA JANARATNE SAID THE BANK WILL BE
INITIALLY OFFERING THE SECURITY SOLUTION TO HIGH USAGE HIGH
NET-WORTH INTERNET BANKING CUSTOMERS, BUT WILL EVENTUALLY
BE EXTENDING THE SOLUTION TO ALL ACTIVE INTERNET BANKING
CUSTOMERS.

ENDS/