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The habit of saving and investment should be encouraged from
childhood by parents. It has the following advantages.
1. It helps to reduce unnecessary spending.
2. A uniform level of life could be maintained. That is to save when
you earn more at the earlier stage and spend when your income reduces.
3. It provides funds for a scheduled event/time.
4. A proper plan for a bright future could be achieved.
It should be ensured that the savings are properly invested so that
it would be safe and increases in value. Savings should never be
utilised for a non-constructive expenditure (entertainment etc.) but
only for enhancing assets. The following methods are available for
savings.
1. Chit Funds - This was in practice in the 1960’s in rural areas.
Some families get together and contribute a sum every month. A
contributor can take a loan from the fund and the interest received is
shared by all contributors. This system helped to purchase jewellery,
furniture etc. However, this system had failed due to frauds committed
by some members. Further, introduction of savings accounts had also made
this chit fund system to cease.
2. Till Box - This is an interesting system for children, who are
given till boxes. They deposit coins, as and when they make a saving and
when the till box is broken, the entire amount is used for a special
purpose.
3. Postal Savings - This is also an ideal system for small children.
They can deposit money even in small amounts as and when they are
available and feel proud to carry a pass book.
4. Gold Coins - The value of gold is always on the increasing trend
and therefore the regular purchase of gold coins is a good investment.
This collection could be utilised for the purchase of jewellery etc.
5. Life Insurance - Rarely people understand that insurance premia
paid on life policies is an investment. This not only gives a cover
against contingencies, but results in valuable investments at maturity.
At present, there are several Insurance Companies in competition and
attractive offers are made.
Every earning member should maintain a bank account and an insurance
policy.
6. Treasury Bills - This is a commendable investment which is risk
free. Further, the income is also tax free for individuals. The rates
are also attractive when compared to other deposit rates. There was a
time when the operations of Treasury Bills was difficult, and was
availed only by educated persons. People had to forward their bid to the
Central Bank and pay if it was successful. That too only on Fridays. If
the bid is rejected, one had to wait for one week losing interest.
Presently, with the repurchase system, one can invest on any working
day. Applications are sent to primary dealers and banks, which are
rendering a very good service at present. Once funds are deposited,
bankers will advise the investor pertaining to reinvestment, withdrawal
of funds partially or full encashment etc.
7. Savings and Call or Term Deposits - Funds could be invested in
Savings, Call or Term Deposits maintained by Bank. However the interest
is liable for 10 per cent withholding tax (exemption could be claimed if
total income is less than Rs. 300,000). Normally, these rates are lower
than Treasury bill rates. However some banks offer attractive prizes on
Savings Accounts to the depositors.
It is better to allocate the funds so that one qualifies for the
prizes while maximising income (capital rationing).
8. Unit Trusts - This system is now popular in India and could be
operated with proper professional advice. In the case of unit trusts,
you enjoy dividend income in addition to capital gain on sale of
investments; of course capital losses may also be incurred.
9. Securities - One could purchase shares in public quoted companies.
Sri Lankan share market is fairly strong at present. On the other hand,
securities could be kept as long term investments and the investor could
enjoy dividend income and increase in share value. Investors could also
roll their money in the share market which requires professional advice.
10. Immovable properties - Purchase of land and houses are valuable
investments. Savings together with borrowings as necessary could be
utilised to invest in immovable property. Settlement of loan is also a
saving at the end and one would have his or her own house for a bright
future.
One important thing to remember is not to deposit all savings in one
investment. Diversification will avoid any material risk i.e.
One should not have all eggs in one basket.
S. R. BALACHANDRAN The National Chamber of
Commerce of Sri Lanka
Although the Chief MOH of the Dehiwala-Mt. Lavinia Municipal Council
informed all householders through notices that garbage will be collected
on Mondays, Thursdays and Saturdays, the garbage division has ignored
his instructions.
Presently garbage is collected only once in a week. This shows that
the garbage collectors don’t give two hoots to the authority of the CMOH
and garbage is collected at the whims and fancies of the garbage
collectors.
Due to their laxity and indifference, garbage gets collected in
households and also on road sides. In addition through disgust and due
to garbage uncollected for days giving off a terrible stench, some
people throw it on to any roadside. If there is a stricter check by
supervisory officers, garbage will be collected three times a week. Or
is the supervisor being ‘looked after’, as they say, by the labourers?
Would the Mayoress of the DMMC kindly look into this matter?
VERNIE Dehiwala
Francis D’ Almeida in his message states that it took almost forty
years after that concert Serata Italiana for Sogni Romani to come on the
boards of the Bonjean Hall of St. Joseph’s College, Colombo. That
certainly is a long period to wait. But, the performance by St.
Cecilia’s Choir of St. Joseph’s College on August 21 and 22 made the
wait the worthwhile.
The lilting melodies of Italian and Latin favourites rendered by the
mellifluous voices, the haunting voices of the boy sopranos, the harmony
of the Altos, the smooth rendering by the Tenors and the Bass voices
giving depth and body as it were to the songs was indeed something any
school choir could be justly proud of.
The College Choir has not been afraid to venture into a production of
this nature is very commendable. The decor lighting and the costumes
suited the theme and gave it the perfect setting.
To single out one of the soloists would be unfair since their
performances were equally good. This performance was meant to be a
performance by the entire choir, so be it. Yet, who could forget those
golden oldies ‘Sanctus’, ‘Hossana’ and ‘Laudate’ of Mozart, ‘Adoramus
Te’ by Palestrina, ‘Anvil Chorus’ - Verdi and then the lighter numbers O
Sole Mio, ‘Santa Lucia Funiculi Funicula’ which had the audience asking
for more.
The tremendous effort of training the boys must go to the Choir
Director, Francis D’ Almeida, whose brainwave this concert was, the
Priest in Charge of the Choir, Rev. Fr. Joseph Indika and the guidance
and encouragement of the Rector, Rev. Fr. Sylvester Ranasinghe.
This was a bold stride taken by them. The Choir justified this
decision by a wonderful and memorable performance, if the show was meant
to be a Roman Dream the all I could say is that “We came, we heard and
we were enthralled. Encore.”
A.W. Dehiwala
The Annual Budget will be presented to Parliament for approval
sometime in November and it is necessary to point out to the Minister of
Finance that the present Personal Income Tax slab of Rs. 300,000 per
annum is unrealistic in today’s context and that he considers revising
the bottom slab upwards to suit the present High Cost of Living.
Needless to state that prices of goods and services have sky-rocketed
mainly due to:
a) High fuel prices
b) High cost of flour
c) High cost of milk prices
Due to these increases, the importers, distributors and retail
traders have gone to town indiscriminately increasing prices with no
bearing on the cost to them. They have ignored the measures Government
has taken to buffer the impact by waiving of Customs duties on certain
essential items of food but these benefits have not been passed on to
the customer.
We recall the 10 per cent waiver of Customs dues on certain essential
items during the Christmas period of 2007 which only benefited the
traders who pocketed this money which was meant to be passed on to the
customer who did not receive a cent by way of reduced prices.
We see that the Government is having a running battle with these
unscrupulous and ruthless business barons who are bent on going to town
increasing prices with only profit as their consideration.
They are exploiting the system of Capitalism which dictates that
market forces must prevail and they have today gone beyond this concept
by surreptitiously forming themselves into cartels to fleece the poor
customers on items that are essential for their survival.
Under this Capitalistic system, the Government is helpless in the
face of this disgraceful plunder of the poor. Price control is anathema
to the Capitalists system so the robber barons plunder the poor freely.
A case in point is the recent increase in the price of rice. The
people were stunned that these barons went on a gay spree increasing
prices merrily with no apparent reason and artificially causing a
shortage of the supply of rice with the intention, perhaps of
embarrassing the Government.
Thanks to the timely action of the Minister of Consumer Affairs who
brought them down to earth with a thud by stipulating a ceiling for the
prices of rice and sanity has since prevailed.
With the above scenario the man on the street and the middle income
earner is going through great difficulty in making ends meet.
It is therefore incumbent on the Government to give relief to the
wage earner and the retired personnel by at least, adjusting the bottom
Tax slab according to the present cost of commodities, cost of travel,
cost of house rents and the increase in energy rates which have more
than doubled recently.
RANGA RANDENIYA Hokandara
At Fort hiring vehicles are not allowed to ply along B.O.C. Mawatha
as it is a high security zone. Consequently the aged senior citizens who
have to visit the banks or the offices in the Ceylinco House on business
are greatly inconvenienced as they have to trek the entire length of
B.O.C. Mawatha on foot and also walk back or walk upto the old
Parliament to get a trishaw.
A shuttle service van if provided between B.O.C./Ceylinco House and
the entrance to B.O.C. Mawatha could be of great help.
While in other countries more and more measures are introduced for
the benefit of senior citizens, it is sad to note that in our country
they receive cavalier treatment.
T.S.C. Wattala
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