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Wednesday, August 15, 2018

Effective Information Communication Technology Education in Rural Schools of Sri Lanka


ICT has been used as a model for education in many parts of the world. At the end of the conflict in 2009, the Government of Sri Lanka embarked on an e-Sri Lanka initiative aimed at introducing ICT across several sectors. The education sector received substantial investment in ICT however only a section of this sector was targeted. This study explores the barriers of introducing and implementing ICT education in the rural areas of Sri Lanka and how these barriers could be overcome.
The study was pursued by reviewing published literatures of authors to identify barriers of introducing and implementing ICT and also looked into suitable options for ICT implementation and further focused on the sustainability of these models.
Given the unique characteristics of the secondary education sector in Sri Lanka and in particular those in the rural areas, the study required a focused data gathering process to understand the factors that affect ICT in the rural schools. A set of questions were developed using the literature review and three schools were assessed.This data was used to develop into three unique case studies in order to understand the unique characteristics that affect ICT in these rural schools and if they fall in line with the variables identified in the literature review.
The analysis of the case studies together with the variables identified from the literature review provided the basis for developing the conceptual framework for the study. The target population for this study were Teachers and Principals in the rural schools of Trincomalee representing the rural population in Sri Lanka. A combined sample of 70 teachers and principals were considered for this survey across 20 schools in the district. A questionnaire was developed in line with the identified variables to understand the prevailing context in the rural schools. The data gathered was processed using SPSS Software. The results indicate that internet access, resources, personnel and security are essential for introducing and implementing ICT education in the rural areas.
The artefact was designed in line with the results and tested at random and results are presented.

Background to the Research

Sri Lanka’s education sector is catered to by a mixture of nation-wide network of state supported, private and international schools. Primary enrolment of boys and girls is well above 90 per cent and secondary enrolment rate stands at over 80 per cent making the country one of the more successful nations in providing educational opportunities to all segments of its population (World Bank, 2011). However these statistics largely belie the severe vulnerability students’ face in some of the more rural areas of the country.
For nearly three decades the country was plagued by a bitter civil war that claimed the lives of thousands and destroyed the livelihoods of many. In 2004, several coastal areas of the country were shattered by the Indian Ocean Tsunami that further worsened the economic conditions of the people.
In May 2009, the Sri Lankan Government declared the end to the conflict with nearly 300,000 civilians being housed in temporary camps waiting to be resettled back in their homes. The end of the war saw aid pouring into the island, creating a platform for post war development.
Since then the Government has embarked on mega infrastructure development projects; constructing roads, harbours and airports with a view to increasing economic development. In line with his election manifesto; the Mahinda Chinthanaya, (Department of National Planning Ministry of Finance and Planning, 2006) the President declared the year 2009 as the Year of English and IT as part of encouraging the creation of a knowledge society in Sri Lanka (Ministry of Education, 2009).
The Government introduced the e-Sri Lanka Initiative together with the Information and Communication Technology Agency (ICTA) of Sri Lanka to develop the economy of Sri Lanka, reduce poverty and improve the quality of life of the people (ICTA, 2009). Several projects were implemented under this initiative under various sectors.
The ‘Nenasala’ (Knowledge Centre) Project implemented by the Government together with the ICTA aims to provide Rural Knowledge Centres, e-Libraries, Distance and e-Learning Centres and Tsunami Camp Computer Kiosks. The initial phase of the project was implemented in 13 districts across the island. However this particular project had a selection criterion; where the selected division of the village needed to have a population of between 2000-5000 people, presence of a market with at least 15 wholesale vendors, presence of electricity and a type 2 school with at least 300 students (Nenasala, n.d.).
This meant that nearly 50 per cent of the schools (4,910) were not eligible to participate in the programme as they had less than 300 students (Ministry of Education, 2006).
The Ministry of Education together with the Asian Development Bank (ADB) implemented the Secondary Education Modernization Project (SEMP) aimed at connecting most of the secondary education schools and other related organizations on a wide-area network (WAN). The initial phase of the project was to connect 1000 schools, set up 100 computer resource centres and 8 provincial ICT centres. The services offered included IP-VPN technology, bandwidth connections, web hosting and filtering etc.
However in order for a school to join the project they needed to have the most basic infrastructure such as computers. This meant that most rural schools which did not possess this infrastructure were not part of the project.
Therefore a large number of rural schools lack not only the basic infrastructure for ICT education but basic educational requirements itself, such as teachers. Through the use of ICT these gaps can be fulfilled to a large extent depending on the type and nature of the problem at hand.
ICT has been used as a model for education in many parts of the world. Despite the developed countries exploiting its use exponentially, third world countries have been unable to keep up with the pace. (Valentine & Holloway, 2001) state that the potential of ICT to alleviate rural marginality is also recognized in education funding initiatives. The literature also suggests that ICT has been used in a variety of areas and to suit different purposes and needs of the culture (Vorakulpipat et al., 2010).
However the barriers vary from region to region and sometimes from country to country. Despite this the application and use of ICTs, have tremendous potential for improvements in every sector including education(Mansotraet al., 2009). On a broader perspective, researchers have found a few underlying reasons for the lack of ICT in the rural areas

AN ANALYSIS OF THE CHALLENGES AND BARRIERS IN BUILDING TRUST TOWARDS POPULARIZATION OF MOBILE BANKING IN THE CORPORATE SECTOR IN SRI LANKA


AN ANALYSIS OF THE CHALLENGES AND BARRIERS IN BUILDING TRUST TOWARDS POPULARIZATION OF MOBILE BANKING IN THE CORPORATE SECTOR IN SRI LANKA

 Introduction

In this evolving world the major technological innovations and improvement helped almost all kind of industries to gain competitive advantage in the specialized industrial field. The banking industry introduced Internet Banking which helped to do bank related transactions from anywhere with the use of a computer connected to the internet. The telecommunication industry introduced mobile internet (3G) which helped the consumer to use the internet with no use of a computer. With the introduction of internet banking customers didn’t have to stay and wait in queues for their turn to do their bank related transactions; it was just a click away. However, any new technology has constrains and limitations. In the case of internet banking, the biggest limitation is the requirement of a computer with an internet connection. This may not look a big obstacle if viewed from US and the European countries prospective, but is a definite obstacle for developing countries such as Sri Lanka and most of the other Asian countries.  Mobile banking addresses this fundamental limitation of Internet Banking, as it reduces the customer requirement to just a mobile phone. The term mobile baking comes from m-commerce which characterizes a business transaction carried out through a mobile phone connected to any mobile network which consist internet.
Mobile banking transactions could be done through Short Message Service (SMS), Wireless Access Protocol (WAP), mobile internet or through General Pocket and Radio Service (GPRS). 
Mobile banking has now become a global phenomenon. Almost every banking institution all over the world has embraced this technological system of banking due to the numerous benefits it brings both to the banks themselves and their clients or customers notable among them are convenience and time-saving in doing transactions. Mobile banking is now being considered as a strategic weapon and will revolutionize the way banks operate, deliver and compete against one another, especially when competitive advantages of traditional branch networks are eroding rapidly.
However, the issue of adoption behavior or pattern by final consumers seems to be an essential issue in the successful implementation of Mobile banking which has benefited people from jurisdiction to jurisdiction and from country to country. In some countries, Mobile banking has proven to be very reliable, effective and efficient whilst in some others, they are found to be extremely dormant due to adoption behavior. Thus, there is the need to study critically the adoption behavior of existing customers. Adoption behavior patterns depend on many variables such as educational level, attitude towards innovation, trust, feelings of security, among others.
It is mobile telephones that have transformed the Sri Lankan telecommunications sector beyond recognition. Mobile services have experienced exponential growth, from 71,000 subscribers in 1996 to 4,284,256 subscribers in June 2006 (TRCSL 2006). These growth rates did not dip even when the overall economy went through periods of lean or zero growth. The number of mobile phones surpassed the number of land phones in 2002 and by end 2005, three out of every four phone connections in Sri Lanka were mobile (CBSL 2006). Mobile banking is not that much of hype in Sri Lanka. According to the CBSL Annual report (2010) there are 22 licensed commercial banks in Sri Lanka and out of the total 22 licensed commercial banks 7 domestic (PVT) licensed commercial banks providing mobile banking. Therefore this study is mainly focus on what are the challenges and barriers in building trust for popularizing mobile banking in the corporate sector in Sri Lanka and how to overcome these barriers?
Even though Mobile banking is now a common technological phenomenon or development associated with almost every bank in the world, Sri Lanka as a country is still being saddled with a number of challenges and barriers when it comes to this system of banking. The lack of trust and security has generally reduced use of mobile banking as customers distinguish it as not being safe to do their transactions through mobile.
In general context, Sri Lankans are considered to have a positive attitude towards the concept of tangibility of goods and services provided by the service provider through tangible channels. Therefore the usage of mobile banking is comparatively low as customers have not been much keen in using mobile banking. As several studies have indicated that mobile bankers are the most profitable and prosperous segments of banks. Therefore conducting a study would help identifying the challenges and barriers of building trust which would facilitate popularization of mobile banking and solutions for the barriers in popularization of mobile banking in corporate sector in Sri Lanka.
Mobile banking has gained significant popularity in the banking sector in western countries but not in Sri Lanka. This study is being conducted to analyze the barriers and challenges faced in building trust as a key element to popularize mobile banking to corporate sector in Sri Lanka. Building trust for mobile banking would prove great benefits to internal and external stake holders and also would also be one main channel to popularize this system.
·         Licensed commercial banks
This study would be most significant for licensed commercial banks operating in Sri Lanka especially the banks which cater to the corporate banking sector. The management would have a clear identity of the long term benefits towards the bank with the build of trust in popularizing mobile banking. This would clearly identify the challenges and barriers which prevails in the current context and would enable the bank management to identify the obstacles and how to overcome this to improve their services.
·         Mobile service providers
This study would be most significant to mobile service providers in Sri Lanka which provides mobile banking as a service within their networks. The mobile service providers could identify where to improve them self and what should be improved when facilitating new technology to the country.
·         Software developing companies
This study would also be significant to software developers who are engaged in developing software’s for banking institutions and mobile service providers. This study would clearly show the level of expectation from the service provider to the end consumer. This report would also illustrate the overall requirement from the system which would enable the developer to add or altered features in mobile banking.
·         Corporate customers
The findings of this study would be beneficiary to the corporate customers who are already engaged in mobile baking and to the customers who feel it’s not safe to do mobile banking. This study would build the level of trust and confidence towards mobile banking and would result in behavioral changes of corporate customer from internet banking to mobile banking.
·         Government
This study would enable the government to measure the level of technology improvement in the banking sector and telecommunication sector, therefore provide funds to conduct study and development of this new technology which would increase the income level of the county and would help further country’s development.
·         Future studyes
Information gathered from conducting this study would help and benefit future studyers which would enable them to identify gaps and reduce them with less consumption of resources and time.

Discussion


This section presents an overview on preceding literature congregated on building trust in mobile banking. Various related study articles have been studied and is given in a summarized description which lay out in order to obtain the factors which represent the problems to conduct this study and the conceptualization could be drawn as a result.

Many studies have identified the significant impact which is created by the volatile information technology towards the banking industry around the world. Kannabiran and Naravan (2005) stated that the improvement in information technology is becoming a significant element in the future development of the banking industry.  According to Turban et al, (2006 cited in Gu, 2009) With the improvement of mobile technologies and devices, mobile banking has been considered as a salient system because of such attributes of mobile technologies as ubiquity, convenience and interactivity.”

Bradmore (1996), has noted the demanded for management information continuous to grow as organisation’s become more complex in scale and scope, as the environment becomes more uncertain as the rate of change of key business-not least technology itself accelerates (Earl, 1989:14) Competitive advantage involves providing better service through deeper knowledge of customer. The idea is that Banks have developed or learned information about their customers' needs and process can serve that customer better than their competitor can. The above studies conducted analyses on how technology has had a significant impact on the banking industry

Tuesday, July 31, 2018

Annual Report Analysis Sri Lanka Telecom PLC


Sri Lanka Telecom PLC (‘SLT’ or the ‘Company’) is Sri Lanka’s national Information and Communications Technology (ICT) provider. Also considered as the leading broadband and backbone infrastructure services provider in the country. Throughout the decades of operations, SLT has been delivering cutting edge and sophisticated solutions to customers.


Ratio Analysis
Liquidity & Efficiency (all amounts in Sri Lanka Rupees million)







2011
2012
2013
2014
2015
2016
Current assets
22,320
22,907
17,039
20,492
14,768
18,473
Current liabilities
14,074
18,418
15,809
19,643
22,265
34,259
Current ratio
1.585903
1.243729
1.077804
1.043222
0.663283
0.539216

1.59:1
1.24:1
1.08:1
1.04:1
0.66:1
0.54:1

According to above ratios over 2011-2016 represents the company’s ability to payback its liabilities with its assets. In a nutshell, current ratio reflects the company’s financial health. It considers about current assets to current liabilities. If current assets are greater than current liabilities, it’s a favorable condition. In 2011 assets are greater than liabilities. 2012, 2013 & 2014 has that favorable condition but decreases the asset amount per 1Rs. liability. But in 2015 & 2016 current assets are less than current liabilities which means, the company’s ability to pay its obligations are unfavorable. It reveals SLTs decrement of financial health over time.


2011
2012
2013
2014
2015
2016
Current assets
22,320
22,907
17,039
20,492
14,768
18,473
Inventory
1,465
2,396
1,918
282
561
1,146
Quick assets
20,855
20,511
15,121
20,210
14,207
17,327
Acid test ratio
1.48181
1.113639
0.95648
1.028865
0.638087
0.505765

1.48:1
1.11:1
0.96:1
1.03:1
0.64:1
0.51:1

Acid-test ratio is a strong indicator of weather a firm has sufficient short term assets to cover its immediate liabilities. According to above calculations 2011 & 2012 has short term liabilities more than 1 per 1Rs. of liability but decreases over time. In 2013 short term assets are less than current liabilities but in 2014 short term assets are greater than current liabilities. And also 2015 & 2016 has the same unfavorable condition when paying immediate obligations.   



2011
2012
2013
2014
2015
2016
Revenue
32,291
34,719
36,781
38,950
40,565
43,131
Trade receivable
9,985
12,189
10,870
12,728
13,091
16,162
Average trade receivable

11087
11529.5
11799
12909.5
14626.5
Accounts receivable turnover

3.131505
3.190164
3.301127
3.14226
2.948826

This ratio measures the company’s ability to covert its receivable in to cash every year. And also measure how efficiently a firm uses its assets. Comparing above years, 2014 has the highest accounts receivable turnover & lowest turnover at 2016. Seems SLT has a poor collection process, a bad credit policy or none at all.


2011
2012
2013
2014
2015
2016
Cost of sales
22,294
25,433
26,821
29,559
30,421
33,228
Inventory
1,465
2,396
1,918
282
561
1,146
Average inventory

1930.5
2157
1100
421.5
853.5
Merchandise turnover

13.17431
12.4344
26.87182
72.17319
38.93146

Merchandise turnover shows how many times a company’s inventory is sold and replaced over time. High turnover means nothing unless the company is making a profit on each sale. According to above calculations, merchandise turnover fluctuates, in 2012 high turnover, in 2013 decreases again 2014 rapid increase again 2015 more increase but in 2016 drastic decrease.


2011
2012
2013
2014
2015
2016
Net revenue
32,291
34,719
36,781
38,950
40,565
43,131
Accounts receivable
9,985
12,189
10,870
12,728
13,091
16,162
Days' sales uncollected
112.865
128.1427
107.8696
119.2739
117.7916
136.7724

Above ratio measure the approximate time period required to collect the receivable. Unusually high figures imply the inadequate collection process within the company. According to above calculations over time, 2016 has an unusually high figure to collect receivables which means an unfavorable condition.


2011
2012
2013
2014
2015
2016
Ending inventory
1,465
2,396
1,918
282
561
1,146
Cost of sales
22,294
25,433
26,821
29,559
30,421
33,228
Days' sales in inventory
23.98515
34.38603
26.10156
3.482188
6.731041
12.58848

Days’ sales in inventory reflects how long will it take a firm to convert its inventory in to sales.  According to above calculations, SLT shows fluctuations where year 2014 shows the best DSI and 2012 shows the worst DSI.


2011
2012
2013
2014
2015
2016
Revenue
32,291
34,719
36,781
38,950
40,565
43,131
Total assets
73,666
83,383
83,090
99,017
103,061
118,117
Average total assets

78524.5
83236.5
91053.5
101039
110589
Total asset turnover

0.442142
0.441885
0.42777
0.401479
0.390012

Total asset turnover measures the firm’s sales or revenues generated relative to the value of its assets. According to above calculations year 2012 has the highest total asset turnover rate. For every 1Rs generates 0.44 Rs of sales. Even though SLT has asset turnover rates less than 1, which is typical for firms in the telecommunication industry. Since these companies have large asset bases, it is expected that they would slowly turnover their assets through sales. We could justify that throughout the calculation period, total asset turnover rate does not show any major fluctuations.

Solvency (all amounts in Sri Lanka Rupees million)








Above ratio measures the portion of a company’s assets are contributed by creditors. According to above calculations year 2016 has the highest debt ratio. But the overall debt ratio is in favorable range. 


2011
2012
2013
2014
2015
2016
Total shareholders' equity
51,850
53,617
57,103
58,577
58,702
59,000
Total assets
73,666
83,383
83,090
99,017
103,061
118,117
Equity ratio
70.38525
64.30208
68.72427
59.15853
56.9585
49.95047

Equity ratio measures what portion of a company’s assets are contributed by the owners. According to above calculations year 2011 has the highest equity ratio. From 2011 to 2016 we can see overall decrement with certain fluctuations which means investors seems reluctant to invest within the company. From 2011 to 2016 imply an unfavorable condition for the investment within the company. 


2011
2012
2013
2014
2015
2016
Profit before tax
4,488
4,682
5,014
4,859
2,795
2,643
Finance cost
58
534
371
49
30
25
Profit before tax+ Finance cost
4,546
5,216
5,385
4,908
2,825
2,668
Times interest earned
78.37931
9.76779
14.51482
100.1633
94.16667
106.72

Times interest earned ratio measures the ability of an organization to pay its debt obligations. According to above calculations year 2016 has the highest times interest earned ratio. From 2011 to 2016 SLT has a favorable times interest earned which is greater than 1. That implies the ability to service debt is not a problem for a borrower.   

Profitability(all amounts in Sri Lanka Rupees million)








Above ratio measures the company’s ability to earn a net income from sales. According to above calculations year 2011 has the highest profit margin. From 2011 to 2016 profit margin has a decrement which is an unfavorable condition.

2011
2012
2013
2014
2015
2016
Revenue
32,291
34,719
36,781
38,950
40,565
43,131
Cost of sales
22,294
25,433
26,821
29,559
30,421
33,228
Gross profit
9,997
9,286
9,960
9,391
10,144
9,903
Gross margin
30.95909
26.74616
27.0792
24.1104
25.00678
22.96028

This ratio measures how profitable a company sells its inventory or merchandise. In year 2011 has the highest gross margin and the year 2016 has the lowest gross margin. According to above calculations SLT has an unfavorable gross margin from 2011 to 2016.


2011
2012
2013
2014
2015
2016
Profit for the year
3,340
3,361
3,635
3,324
1,728
1,725
Total assets
73,666
83,383
83,090
99,017
103,061
118,117
Average total assets

78524.5
83236.5
91053.5
101039
110589
Return on total assets

4.280193
4.367075
3.650601
1.710231
1.55983

Above ratio measures the overall profitability of the company. In 2013 SLT has the highest return on total assets ratio. In 2016 has the lowest return on total assets ratio. From 2012 to 2016 return on total assets ratio has been decreased. Above figures imply that overall profitability of the company has been decreased over time.

2011
2012
r2013
2014
2015
2016
Profit for the year
3,340
3,361
3,635
3,324
1,728
1,725
Total equity
51,850
53,617
57,103
58,577
58,702
59,000
Average total equity

52733.5
55360
57840
58639.5
58851
Return on common shareholders' equity

6.373558
6.566113
5.746888
2.946819
2.931131

Above measure indicates how well the company employed the owners’ investment to earn income. From 2012 to 2016 return on common shareholders’ equity has been decreased which means the way that the company has been employed the owners’ investment seems unfavorable.

2011
2012
2013
2014
2015
2016
Total equity
51,850
53,617
57,103
58,577
58,702
59,000
Number of shares
1,805
1,805
1,805
1,805
1,805
1,805
Book value per common share
28.72576
29.70471
31.63601
32.45263
32.52188
32.68698

28.73:1
29.70:1
31.64:1
32.45:1
32.52:1
32.69:1

Above ratio measures liquidation at reported amounts. Year 2016 has the highest book value per common share. Which is a favorable for liquidation at reported amount. 


2011
2012
2013
2014
2015
2016
Profit for the year
3,340
3,361
3,635
3,324
1,728
1,725
Number of shares
1,805
1,805
1,805
1,805
1,805
1,805
Basic earnings per share
1.850416
1.86205
2.01385
1.841551
0.957341
0.955679

Above measure indicates how much income was earned for each share of common stock outstanding.  Year 2013 has the highest basic earnings per share and year 2016 has the lowest basic earnings per share.
Market(all amounts in Sri Lanka Rupees million)







According to above calculations, year 2015 & 2016 has the highest price earnings ratio which means the company has the opportunity to growth compared with previous years.

2011
2012
2013
2014
2015
2016
Dividend per share
0.85
0.85
0.85
0.89
0.89
0.89
Market price per share
28
28
28
28
28
28
Dividend yield
3.035714
3.035714
3.035714
3.178571
3.178571
3.178571

According to above calculations year 2014, 2015 & 2016 has the highest dividend yield and seems to be have a favorable condition. 

  Vertical Analysis

Common-size percent %

2011
2012
2013
2014
2015
2016
Assets






Non-current assets






Property, plant and equipment
47.47238
50.94324
57.2259
60.81885
67.99953
69.0197
Intangible assets
0.638015
1.590252
1.941269
1.339164
1.051804
0.744177
Financial Prepayments
0
0
0
0
0
0
Investments in subsidiaries
18.23229
17.02026
17.03695
14.32986
13.79765
12.03891
Other investments
0.137105
0
0
0
0
0
Deferred tax assets
0.077376
0
0
0
0
0
Other receivables
3.14392
2.974227
3.289204
2.816688
2.82163
2.557634
Total Non-current assets
69.70108
72.52797
79.49332
79.30456
85.67062
84.36042
Current assets
0
0
0
0
0
0
Inventories
1.988706
2.873487
2.30834
0.2848
0.544338
0.970224
Trade and other receivables
13.55442
14.61809
13.0822
12.85436
12.70219
13.68304
Current tax receivable
0.215839
0.461725
0.270791
0.083824
0
0.123606
Other investments
12.52545
8.471751
3.854856
6.460507
0.621962
0.596866
Assets classified as held for sale
0
0
0
0
0
0
Cash and cash equivalents
2.014498
1.046976
0.990492
1.011947
0.460892
0.265838
Total Current assets
30.29892
27.47203
20.50668
20.69544
14.32938
15.63958
Total assets
100
100
100
100
100
100

  Conclusion
After analyzing 5 years of annual reports from Sri Lanka Telecom PLC, revenue has been raised in past 5 years. But from 2011 to 2016 SLT shows unfavorable financial conditions when analyzing current ratios.  After analyzing accounts receivable turnover, the conclusion would be, SLT has a poor collection process, a bad credit policy or none at all.  After analyzing equity ratio, derivable conclusion would be, investors are reluctant to invest within the company. From 2011 to 2016 imply an unfavorable condition for the investment within the company. Even though equity ratio reflects unfavorable conditions, times interest earned ratio has been derived some favorable conditions. From 2011 to 2016 SLT has a favorable times interest earned which is greater than 1. That implies the ability to service debt is not a problem for a borrower. Ultimate conclusion would be, SLT does not maintain a stable position within the telecommunication industry & need to consider about their existing credit policy also.

JAT Holdings PLC

  ABSTRACT   This report presents a comprehensive analysis of five consecutive annual reports of JAT Holdings PLC, a leading company...