Dilanka Rattan in Global Market

Dilanka Rattan Crafts that manufactures high Quality furniture, baskets and home-ware made out of rattan , wrought iron and water hyacinth (sea grass) has successfully broken into the world market with exports to Germany, Netherlands and the Maldives Islands. Managing Partner Deepthi Wickremasinghe told The Kandy News that the success of his Thannekumbura based company is attributable to the attractive designs that they create and meticulous attention that is paid to maintain the highest quality standards. Mr. Wickremasinghe (48), who is an alumnus of Kingwood College worked as a banker for the People's Bank and the Sampath Bank before he took up furniture manufacturing. He says that his wife Kalani who is an Attorney-at-Law is also very much involved in developing the business.

Mr. Deepthi Wickremasinghe at a Trade Fair in Chennai

In the past few years Dilanka has participated in several international training and quality standards programs in the furniture industry including Furniture Industry Development Program by SIDA in Sweden and Germany, Export to Japan Study Program by Jetro in Tokyo, Japan, and the Handicraft Development Program by Fair Trade in Netherlands and Germany. Dilanka plans to attend the “Exporting to EU Countries Marketing Program” in the Netherlands and Germany later this year.

Dilanka has become the preferred supplier of furniture to many five star tourist hotels in Sri Lanka including the Hilton, Cinnamon Grand and Amangalla and Amanwella that belong to the Aman Resorts of Singapore. They also supply high end tourist shops, the UN offices and embassies in Colombo.

Mr. Wickremasinghe speaking of some of the problems he faces in improving his business, says that one of the obstacles is getting good raw material since most countries other than Singapore have banned the export of raw rattan. Lack of good craftsmen is another barrier. “We have an acute shortage of skilled craftsmen in this field. Those who possess such skills are usually reluctant to share their knowledge with anyone outside their families as rattan weaving is a traditional craft that has come down from father to son. We also have to pay them very high wages that increases our costs” he says.

To resolve this problem he suggests that the government steps in and 'imports' craftsmen from the Philippines, Indonesia and Malaysia where the quality of rattan furniture is very high, so that they could train a few master craftsmen who can in turn train others. “This would be a good investment as this is a labour intensive industry” he notes.

Mr. Wickremasinghe says that his company has launched an aggressive campaign to expand the export market. In the past one year Dilanka has participated in the Tendence Life Style trade fair in Frankfurt, Germany, and the Chennai International Trade Fair in India. The company has accepted an invitation from CBI of the Netherlands to participate in the Ambiente 2008 International Trade Fair in Frankfurt, Germany.

Mr. Wickremasinghe invites Kandy customers to visit the Dilanka factory and showrooms at 10/3 Thannekumbura (Tel: 081-492-2854).

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KMC Rushes Tenders to Utilise Money at the Last Moment

Last month the KMC approved fifty eight separate contracts for small construction projects and rehabilitation projects. Thirty four of the projects were funded with money that Kandy area members of parliament have channeled to the KMC from their respective decentralized budgets. The balance 24 are funded by the KMC from its own resources. KMC sources say that as in the past the Council rushed through the tender procedure because if the money is not spent before December 31st which is the end of the financial year, the Treasury gets back the unspent funds.

The Kandy News has found out that only thirteen of the tenders were awarded at the rates that the tenderers specified in their respective bids. The other forty-five were awarded with a 12.5% add on for inflation that was made on the recommendation of the municipal works engineer. With the inflation premiums totaling Rs 1.5m the value of the forty-five tenders totalled Rs. 15.1m.

The municipal commissioner in a statement made to The Kandy News defended the inflation premium as a necessary step to utilize the money speedily for the benefit of the Kandy public. However, another KMC official who spoke to us on condition of anonymity believes that such additions are a violation of tender procedure and serve as a source of corruption.

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KMC Gives Break for Sirasa Ads

Responding to an appeal from Sirasa TV KMC has agreed to reduce the assessed annual rent for ten Sirasa billboard advertisements to be displayed in the Kandy town. KMC originally assessed a total rent of Rs 180,133. Sirasa that apparently had spent about Rs 3 million on the preparation of the billboards had requested the Council to limit its fee to the display charge of Rs 8635. That request has been turned down. However, the Council has accepted the recommendation of its Chief Accountant who reviewed the appeal of Sirasa and suggested that the total annual charge could be reduced to about Rs 100,000 per year. Some officials in the KMC are unhappy about the decision claiming that this has set a bad precedent and would jeopardize KMC's future earning from billboards. But the Chief Accountant defends his recommendation on the grounds that the Sirasa billboards were relatively small in size and that the space that is saved could be rented to other advertisers.