Bankers discuss international trade opportunities

The public seminar organized by the Trade Finance Association of Bankers on "Increasing opportunities in international trade - Are you risk covered?" was held recently in Colombo.

The seminar was conducted to fulfill one of the objectives of the Association, to engage in educational activities for trade practitioners. The seminar targeted importers, exporters and bankers engaged in trade services and financing and businessmen who are eager to venture into International Trade in a new economic order presented after the Global meltdown and the local post conflict scenario.

Assistant Vice President - Trade Services, NDB Bank, Azam Omardeen spoke on Trade Contracts. He stressed the importance of having a properly drawn out Trade Contract to create a better understanding between the Buyer and the Seller and help resolving disputes even in a court of law. He also explained some of the provisions of ICC's Incoterms2000 and how they could be used to avoid lengthy Trade Contracts whilst including a number of obligations of the buyer and of the seller to it.

Consultant, Sampath Bank, President of the Trade Finance Association of Bankers (former Deputy General Manager, Sampath Bank), Parama Dharmawardene, made a presentation on Documentary Credits and Collections by using a number of interesting case studies to bring out the learning points on the subject. He explained the obligations of the Issuing and Confirming banks, the role of the nominated bank, issues relating to the issuing / confirming bank's undertaking, the repercussions of incorporating various clauses in LCs. He discussed issues relating to documentation and valid or invalid reasons for refusal.

Head of Corporate Credits DFCC Vardhana Bank Mrs. Shanthi Gooneratne - handled the Financing of Imports and exports and explained the need for financial discipline by importers / exporters and how a package of financial facilities should be structured in order to ensure that an importer / exporter can carry out his business without running to financial difficulties.

Senior Deputy General Manager (Risk and Compliance), Peoples Bank, Sabry Ibrahim explained the products available to manage Foreign Exchange Risks and the strategies that could be adopted in managing these risks. General Manager, Sri Lanka Export Credit Insurance Corporation, Dilruk Ranasinghe explained the export credit insurance facilities offered to the exporters and the commercial banks by SLECIC. Senior Manager, Marine Cargo Claims Sri Lanka Insurance Corporation, Jayantha Silva discussed the marine insurance risks, the different types of cover available and the risks covered by the different Cargo Clauses. General Manager Documentation, Mitsui OSK Lines Lanka (Pvt.) Ltd. Mrs. Anoma Ranasinghe - made a comprehensive presentation on Shipping Risks and transport documents.

A Panel Discussion was held as the last session of the seminar at which DGM International, Commercial Bank of Ceylon, Jegan Durairatnam shared his experience by his contribution. The Moderator was Senior Banking Consultant, former DGM, Bank of Ceylon, A. Kathiravelupillai.