Organization of Professional Associations

Questions and Answers

Colombo Stock Exchange - Default Board

Question: The Colombo Stock Exchange list of Companies published in the papers indicate three categories i.e. Main Board, Second Board and Default Board.

I wish to know what it means, since I hold shares of a Company categorised Default Board.

Ravi Prakash
Colombo 5

Answer: Yes in the Colombo Stock Exchange all the listed (Public Quoted) Companies are published in the Daily News papers under the three categories indicated by you in your question with details of the previous days share transaction. Quantity of shares sold and the price, along with previous price and such details.

Main Board

This includes Companies which have issued and paid up capital of Sri Lanka Rupees 75 million and over.

Such companies should have at least 25% of their shares with the public. Further they should have made profit in the past three years.

Second Board

This includes Companies which have issued and paid up capital of Sri Lanka Rupees 5 million and above but less than Rs. 75 million. The minimum 25% shares with the public and the profit for past 3 years rules do not apply to Companies in this Board.

Default Board

Any of the Companies in the above two Boards, if they fail to submit annual accounts or the Quarterly Accounts within the stipulated time get transferred to the Default Board. Once the accounts are submitted they get transferred back to their original Board.

Also a Company in the main Board if the public share holding drops below the 25% or if they don’t make profit in any of the past three years get transferred to the Default Board.

3G Superline connection - Dialog Telecom

Question: I am a long-standing customer of Dialog Telecom and have been on a Rupees three hundred package. My package was recently converted to a senior citizen package with a considerable reduction in the monthly rental.

The Company recently advertised and offered a 3G Superline but when I went to get this dual line facility I was told that I am not entitled to this new facility. Why do they in the first place mislead people and secondly deprive people of certain package. Can you please check on this and publish the answer.

Disappointed Dialog Customer, Colombo

Answer: We checked with Dialog Telecom and according to them this 3G Superline facility is only available to certain package users.

They are the Super 500, Rs. 300/- 3 minutes incoming free and the Lite 100 with 3 minutes incoming free packages.

This facility is not available to senior citizens who enjoy several other privileges such a lower call rates and friends and family facility at very low rates.

Therefore if you wish to enjoy the 3G Superline facility you have to change your package to one of the above three.

ESL membership, OPA Member List and Private Sector appointments

Question: I would appreciate if you would kindly answer the following questions:

1. In the IESL, so far how many Engineers have got Charter through the mature candidate route?

2. Who is monitoring private companies (manufacturing/trading/contracting etc) in Sri Lanka? Are there any laid down rules and regulations regarding appointments with reference to qualifications/experience required for various jobs in the private sector?

3. Is there a Register of Professionals, indicating the field of specialization of each member, available at the OPA apart from lists available at various member organisations ? Is it available in the website of OPA?

S. Sripadmanaban
Narahenpita

Answer: (1) So far IESL has granted charter membership to twenty (20) members through the mature candidate scheme.

(2) If your question is only in relation to appointments in the private sector. Well there is no Authority to monitor the qualifications required for appointments.

However it is self regulatory and often quite transparent through Newspaper advertisement and internal advertisements. The Board of Directors have the right to decide on such matters but the suitability of and the duties of Company Directors are now regulated by the New Companies Act.

(3) Yes the OPA has a register of all Annual and Life members both in the order of Registration and alphabetical order, along with the relevant details. However only the professionals who have registered with the OPA are available.

It is expected of all professionals to register as an Annual or Life Member of the OPA through their respective professional Association.

Merging of EPF Accounts

Question: I have worked for five different Companies where I maintained separate EPF Accounts. Now I am at the Sixth employer where another new EPF Account was opened on my behalf. I shall be thankful to you if you could let me know the procedure of transferring the individual EPF Accounts into one Account at my present employer.

A P Ranasinghe-Kadawatha

Answer: Yes this can be done through the relevant District Labour Office. Since you are living in Kadawatha and if your work place is in Greater Colombo you should go to the Labour Secretariat at Kirula Road, Narahenpita.

You will be issued a Form “G” by the Labour Department EPF section which you have to complete and hand over along with all your pass five EPF numbers and the “B” Card issued by your employers, as well as the present EPF number and “B” card.

This will take about 3 months for the EPF department to complete the exercise and bring it all into one account. For any further clarification the Deputy Commissioner of Labour Mr. Godamunne has kindly offered his assistance.

He can be contacted on Tel. 2368502 at the Labour Secretariat, Narahenpita.

Delay in the Results of Act 16 (ERPDS) Exam

Question: I am a foreign qualified Dental Surgeon. I sat for the Act 16 (ERPDS) Exam of the Sri Lanka Medical Council.

They take over 2 months to release the results whereas the corresponding Medical Exam ERPM the results are released in one week. What is the reason for this discrimination?

Foreign qualified Dental Surgeon

Answer: We contacted the Sri Lanka Medical Council as well as the Faculty of Dental Science, Peradeniya.

The ERPM Examination is conducted by the SLMC themselves and they are geared to release the results within one week as the entire process is handled in one place in Colombo and it is automated with the aid of scanning equipment and computers.

This is only a theoretical examination. Whereas, the ERPDS Examination is held in Peradeniya and conducted by the Faculty of Dental Science. This exam includes both theory and practical.

The Board for this Examination comprises both the Faculty and the Ministry of Health.

The Board has to meet in Peradeniya to finalise the results.

Some of the members of this Board have to travel to Peradeniya from Colombo on a date convenient to all concerned.

However this process usually takes about 4 weeks and very rarely it would have taken longer (2 months) due to various problems at the University of Peradeniya as explained by the Faculty of Dental Services.

Use of Visa stamped on Passport now expired

Question: Since my USA visa, valid for 5 years, was issued in July 2006, I have had to obtain a new passport as the old one had exhausted all the pages.

Is it in order if I staple both passports together for my intended visit to the USA shortly or has anything else to be done regarding this?

Rajan, Colombo 3

Answer: This happens often where visas are issued for 5 years and the passport becomes invalid subsequently due to expiry or as in your case due to non availability of pages.

Although you have obtained a new Passport, your new passport will carry the reference (Passport Number) of your old Passport. All you have to do is to produce both your Passports first to purchase a ticket and for emigration clearance at your departure.

On arrival too you have to produce both Passport stapled together as stated by you. You will have to explain this at every point in order to avoid inconvenience to both parties.

Local Authority approved building contravening Street Line

Question: We commenced construction of a four storied building in 2000 for which the building plan was duly approved by the Local Authority, the Dehiwela-Mount Lavinia Municipal Council. On completion the Certificate of Conformity was issued in 2003.

A few days ago some officers, said to be from the Road Development Authority, had demarcated a street line for widening of the main road leading to the entrance of our building.

If the road is to be widened now this will lead to the demolition of the building. We have already lodged with the RDA our objections to the proposed road widening on the above grounds.

I shall be glad if you would clarify our position.

1. Should not the Local Authority have been aware of the proposed road widening plans of the RDA in which event they should not have approved the plan unless the building was shifted to be away from the proposed street line.

2. If the widening of the road was a subsequent decision of the RDA would we be entitled to compensation to the value of the building and land at the market value prevailing at the time of acquisition?

3. If the RDA were to hold the Local Authority responsible for approving the plan will we be in a position to claim damages from the Local Authority.

J. Peiris, Dehiwela.

Answer: We have no information to verify the facts stated by you. Therefore our reply is entirely based on the information provided by you as our reply would not be correct if the circumstances are different.

It is the responsibility of the Local Authority to check or advise you to check on the street line and get a certificate also from the same Local Authority. Further the Local Authority has issued a certificate of conformity.

Therefore the Local Authority is responsible if in case the street line was already there.

Alternatively if this street line is a new one introduced by the Road Development Authority, then the RDA will arrange for compensation based on the value of the building and the land at the prevailing market rate.

If there was an error by the Local Authority although they are liable for the damages it may be a long legal battle.

Exempt Income for Withholding Tax

Question: I refer to you Questions and Answers given in the Ceylon Daily News of October 04th.

In your reply under the heading - Inclusion of Pension for calculating withholding tax you have stated as follows:

For the Tax year 2007/2008 total INTEREST income upto Rs. 300,000 is tax free. INTEREST income between Rs. 300,000 and Rs. 600,000 will attract 2.5% tax... (highlighting is mine)

I have been issued a copy of a notice issued by the Sri Lanka Banks’ Association (Guarantee) Limited and also a letter from a private Finance Company in which it is stated that - ASSESSABLE income (total income including interest but excluding exempt income) for the year of assessment...

There is therefore a need for me to clarify as to which version is correct.

A reply either direct to me or through your column will be greatly appreciated.

J. A. H. Fernando

Answer: Yes it is correct that for the Tax year 2007/2008. Total interest income upto Rs. 300,000 (except Income) is tax free and interest income between Rs. 300,000 to Rs. 600,000 will be taxed at 2.5% as withholding tax. Beyond Rs. 600,000 it will attract 10%.

The question of assessable income includes all the income, not only interest income but includes income from all or any other source.

From the total income you are allowed to deduct the above referred to Rs. 300,000 as exempt income, in order to arrive at the assessable income. It is the same Rs. 300,000 allowed as tax free for withholding tax is referred to exempt income.

Either if your interest income is over Rs. 300,000 or interest income plus any other income is over Rs. 300,000 you are liable for Withholding Tax to be deducted at the source of your interest income based on your declaration.

Route No. 5 Colombo-Kurunegala (VIA Minuwangoda) Bus Service

Question: Herewith I send my request which addressed to the Minister of Transport. I am a daily traveller from Divulapitiya to Wattala. It is the out put that I under go daily, morning and evening specially after office from 4.30 p.m.

Mainly on Fridays I have being standing at the Wattala bus halt for hours time. Either No. 5 bus does not stop or else not a single route no 5 bus moves towards Minuwangoda side.

On October 9th again I tried to contact the Transport Ministry at about 10.30 a.m. on telephone No. 2669307, but failed. Operator immediately confirmed that all the public relation officers are at a meeting. Therefore I was requested to call after another one hour on my account. Then I informed how many times I tried and unable to contact etc.,

I explained my requirement and he informed me that one name called “Supun” is in charge of this particular route and he transferred the call after about 7 minutes.

The person who answered from that end immediately informed that “Supun” is on leave, as I tried to explain the No. 5 route problem he purposely cut off the line. It is another agony to call the Ministry of Transport, worse than travelling by the route No. 5 buses.

I am prepared to give evidence on these incidents to anybody at your request.

Kindly look in to this matter at your earliest. We are so helpless.

Mrs L. Weerasinghe

Answer: We have inquired about your complaint from the Ministry of Transport. They informed that it is a matter to be dealt by the National Transport Commission.

The NTC requested that the complaint be sent to the Director General National Transport Commission, 241, Park Road, Colombo 5. (Tel 2587372). We have forwarded your complaint to the NTC today as requested by them.

OPA public seminar

An OPA sponsored public seminar “Feasible Alternative Energy for Sri Lanka including Dendro, Solar, Wind and Ocean Thermal Energy Conversion (OTEC)” at the OPA Auditorium on Thursday, December 13 from 4 p.m. to 6 p.m.

Presentations: “Solar, Wind and Introduction of OTEC” by Maj. Gen. Kamal Fernando, “Frequently Asked Questions About OTEC” by Kumar R. S. Soysa and “Dendro Power” by Parakrama Jayasinghe, OPA members and the public are invited.

Send in your questions

“The Organisation of Professional Associations of Sri Lanka (OPA) will cover questions in all professions and subjects of common interest to the public in the “Daily News OPA at Your Service” page every Thursday.

Please make your question brief.

Questions can be directed to OPA on e-mail,opaorg@dynanet.lk or opa@sltnet.lk, Fax: 2559770 or write to the Professional Centre, 275/75, Prof. Stanley Wijesundera Mawatha, off Bauddhaloka Mawatha, Colombo 7.