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vol.01, Aug.04 |vol. 02,Nov.04|vol.03,Feb.05|vol.04, May 05
The Treasurer
SRI LANKA FOREX ASSOCIATION
Bulletin 2004/2005 – volumce 01, August 2004
Thoughts from our President
It gives me great pleasure to deliver a message to the forex community through our very own bulletin “The Treasurer”. The current year promises to be a volatile one in terms of both global, regional and our very own market. The profits for our industry posted positive numbers with the declining interest and exchange rate scenarios last year. A challenge faces us in making the same profits within a rising interest and exchange rate scenario and an uncertain economic and political environment. The skill level of our community will be severely tested in the coming months in generating revenues from a difficult market climate. My committee and I are committed to continue the effort to develop our dealers in terms of skills and knowledge to face the competition ahead.
In the current year we plan to train two batches of candidates to complete the ACI Dealing Certificate Examination that is a benchmark examination in the treasury world. We also plan to hold training programs for our risk management and back office colleagues whose skills are tantamount to the overall development of the industry. We will join hands with the Bankers Association and the Primary Dealer Association in addressing common issues in the market.
Whilst education and the competencies are the key items on our plan of action for the year we have not forgotten to plan many events to foster fellowship among the fraternity. We have lined up a selection of social events included in which are the annual trip and dinner dance, which will be held on an even grander scale than ever before.
Our dialogue with Central Bank will continue on the development of the market and we look forward to activating the monthly treasurers meetings to discuss our issues with the regulatory authorities.
I wish all success to the continuance of the bulletin.
Disclaimer The material contained has been obtained from sources believed reliable but not necessarily complete and cannot be guaranteed. Any opinion is subject to change without notice. Neither the information nor any opinion expressed constitutes a representation by us or a solicitation to purchase or sale of any financial instruments. The SLFA does not assume any responsibility, whatsoever in this regard.
The following is the 1st part of a contribution by Our Founder President Mr. Freddie Jayarajah on how it all began (The Forex Club
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THE FORMATIVE YEAR – SRI LANKA FOREX CLUB
With Sri Lanka moving away from a fixed exchange rate to a managed floating rate in November 1977 and a unified exchange rate with the cost of FEEC (Foreign Exchange Entitlement Certificate) added to the new exchange rate and the abolition of FEEC the foreign exchange and money market activities among the banks picked up with a considerable volume of operations in the late seventies and eighties. There was increasing forex sophistication than before. With the increase in volumes banks too increased their dealing cadre. There was enthusiasm and responsiveness from the dealers readily willing to learn the tricks of the trade.
It is at this stage that one sunny evening in January 1982, a few dealers from the banks met at the right place and time over a ‘spread of good cheer’ and by the time good byes were exchanged, an informal meeting was arranged for the 29th January 1982 at the HSBC officer’s mess with the kind courtesy of Mr. Sarath Piyaratne of his bank. If I remember right 16 of the 22 banks attended the meeting. It was unanimously decided to form a forex club and a 7 member pro-tem committee was appointed to draft the constitution and set up the club. Mr. Freddie Jayarajah served as pro-tem chairman.
The committee met regularly at the HSBC mess and after much deliberation and correspondence with banks locally and overseas, and keeping in constant touch with the Secretary General ACI (Association Cambiste Internationale) Mr. Geoffrey Munn drew up the draft constitution for approval at the Inaugural meeting of the dealers. This draft constitution was unanimously adopted at this meeting held at the then Hotel Taprobane on 6th August 1982 with the kind courtesy of the Bank of Ceylon. All dealers nominated by banks attended this meeting.
Mr. A Kathiravelupillai (Bank of Ceylon) was elected the Pro-tem Chairman and steered the adoption of the constitution and the election of the 1st President of the club who was elected unanimously and so were the other members of the committee of management. Whose names are as follows
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President
First VP
Second VP
Hon. Secy.
Hon. Treasurer
Comm. Members
Hon. Auditor
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Mr. Freddie Jayarajah
Mr. Sanjiva Senanayake
Mr. T.Nishakaran
Mr. Basil B Loduwick
Mr. H. Walter Fernando
Mr. Sarath Piyaratne
Mr. A.L.Alagappan
Mr. M.Neelakandan
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Bank of Ceylon
Citibank
Hatton National Bank
Banque Indosuez
Peoples Bank
HSBC
Indian Overseas Bank
Dubai Bank Ltd.
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The committee decided to hold the official inauguration of the club on 22nd January 1983.
To be continued in our next issue – look forward to read how our club took off during its initial years
The new CBSL Governor, Did you meet him?
we did.Our President and Secretary had a very brief meeting with Mr. Sunil Mendis the new Governor, but details of market activities were not discussed at length, however a monthly Treasurers meeting may be on the cards soon
WHERE IS OUR LANKAN RUPEE HEADED?
A quick glance at the Dollar Rupee Rate movement from the year we started the Forex Association up to end July 2004
[Back to Top]
The events that brought us to where we are now in the Payments and Settlements System in Sri Lanka
Dec. 1974 |
The CBSL Joined The ACU |
Jun. 1986 |
Introduction of ATMs |
Mar. 1988 |
Establishment of SLACH |
Feb. 1989 |
Introduction of Credit Cards By Commercial Banks |
Mar. 1994 |
Introduction of Electronic Funds Transfer Point of Sale (EFTPOS) |
Jun. 1994 |
Joined The S.W.I.F.T |
Aug. 1994 |
Introduction of SLIPS |
Mar. 1997 |
Introduction of Debit Cards |
Mar. 1999 |
Introduction of Internet Banking |
Apr. 2002 |
Lanka Clear (Pvt.) Ltd Commenced Clearing Operations |
Sep. 2003 |
Real Time Gross Settlement (RTGS) System Went Live |
Feb.2004 |
Scrip less Securities Settlement System (SSSS) Went Live |
Next in line |
Image Based Cheque Clearing System |
Soucre CBSL |
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Some Food For Thought
Going in line with the ACI Model Code are we ?
Using mobile phones for official business, except in an emergency or disaster recovery (Chapter 5.5)
Segregating the Front office and Back office in terms of location and duties/reporting (Chap- 3.1)
Gambling or betting amongst market participants. (Chap- 2.3)
Holding brokers unreasonably for a price where a dealer has called ‘off’ . (Chap – 7.2)
Quoting reciprocal prices at all times or at most of the times (Chap – 7.6)
Question Are we adopting the correct market practice when it comes to the ‘month end rule’ or the ‘end end convention’…….
Think about it …… e.g. trade date 25.02.2004, spot date 27th Friday , what should be the 1 month date? Is it 29th March or 31st March?,
if you had done any deals to similar to this example please send me a mail(to dealer@seylan.lk )- thanks in advance for your time - Channa
Wish to contact us?Then here is something for your quick address book
President
1st Vice President
2nd Vice President
Secretary
Assistant Sec.
Treasurer
Asst. Treasurer
Member
Member
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Wije Dambawinna
Kenneth De Zilwa
Palitha Narangoda
Manohari Gunawardhena
Sarath Jayasuriya
Nirupan Wijeyanathan
Dudeepa Ratwatte
A Shakthitharan
Channa Dayaratne
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2300146
2421697
2421831
2446994
2445785/7
2308919
2436395
2307853
2452513/4
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Mail to Wije
Mail to Kenneth
Mail to Palitha
Mail to Manohari
Mail to Sarath
Mail to Nirupan
Mail to Dudeepa
Mail to Shakthi
Mail to Channa
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This was successfully held From 20th to 22nd August…
More details and photographs to follow
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 18th DecemberReserve Your Tickets Early And Avoid Disappointments
As The Dance Committee Is
Going Full Swing With The
Arrangements.
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We are trying to organize a trip/outing soon, but due to rising costs and non-availability of adequate rooms in Hotels this may not work out in which case we are planning to organize a beach party, however your suggestions are most welcome in this regard
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FOREX DIRECTORY
Gathering of information for the new directory has begun…have you sent in your contact details? if not please advise us soon than be sorry later
Are you interested in sitting for an exam?
Is it the
Dealing Certificate
Settlement Certificate (for back office)
The Model Code Test
Diploma
The SLFA is hoping to have another training course on the Dealing Certificate by September/October and a course for the Diploma in early 2005 of course with the help of the Central Bank and First Initiative.
So do keep in touch
We are very happy that we were able to revive the Forex bulletin once again. The EXCO decided the bulletin be circulated to members via email in order to reduce the cost of printing, however we will send copies to members who do not have access to email. We have endeavored to put this out with as much information as possible using the minimum number of pages, with topics we thought would interest you, however we would like to have your responses/criticisms so that we could improve next time as the saying goes ‘We Learn By Mistakes’
Channa Dayaratne
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