Sri Lanka Keeps Interest Rates Unchanged to Support Growth

Sri Lanka’s central bank kept its benchmark interest rates unchanged for a fourth straight month to support economic growth as the nation emerges from a 26-year civil war.

The Central Bank of Sri Lanka left the reverse repurchase rate at 9 percent, the lowest level since November 2004, and the repurchase rate at 7.25 percent, according to a statement on the Colombo-based bank’s website today.

‘Learn from President’s leadership style’ HNB Chairman tells UNP

By Azhar Razak
Two of Sri Lanka’s veteran corporate leaders, who are currently heading two listed private conglomerates, shared some valuable insights on leadership and management with some young MPs from Sri Lanka’s main opposition party.

Walkers Piling wins Rs 400m Colombo deals

Walkers’ Piling (Pvt) Ltd, a 100% owned subsidiary of MTD Walkers and one of the largest piling contractors in Sri Lanka has secured contracts amounting to LKR 400 million to carry out piling work on two major projects: the Department of Labour and the Census & Statistics buildings in Colombo.

Electricity tariff hike may hurt hotel sector trade growth

By Azhar Razak
Sri Lanka’s industry association representing tourist hotels, Tourist Hotels Association of Sri Lanka (THASL), has raised concerns over the future of the industry if the recently proposed electricity tariff hikes for hotels are implemented.
According to THASL President Anura Lokuhetty, the island’s leisure industry would not be able to sustain such substantial increases in electricity tariffs, which has been proposed to be implemented from next year to June 2011.

Poultry group denies shortage

Imports of chicken and eggs will hit farmers, says association

The All Island Poultry Association (AIPA) has criticised the government’s recent decision to import 2,000 tonnes of chicken and 50 million eggs, a move which they opine as ‘hasty’ and one that could badly hit the local poultry industry.
According to All Island Poultry Association (AIPA) chairman Dr D D Wanasinghe, there is a monthly surplus of around 2,000 metric tonnes of chicken at present in the market proving that the shortage of chicken is a clear misconception although there is a marginal shortage of eggs.

Diana Group plans IPO

Diana Group, manufacturers of biscuits and chocolates based in Matale, has plans to go for an Initial Public Offering, probably in the latter part of 2011with a view to expanding its business and possibly venturing into export business.
According to a senior official of the firm, the group is presently receiving a lot of interest from foreigners who are encouraging the firm to venture into exports.

New strategy to promote tourism from next year

By Azhar Razak
Sri Lanka is to adopt a different tourism promotion strategy next year by focussing on key sectors during each month.
The move is in line with the year being declared as ‘Visit Sri Lanka Year’.
According to a top official, the new proposal should help the industry to attract more tourists to the island as it aims to concentrate on specific aspects of tourism each calendar month.

Colombo City Development Plan

Full text of the Sujata Jayawardena memorial speech delivered by Secretary Defence Mr. Gotabaya Rajapaksa at the Sri Lankan Foundation Institute.

I am grateful to the Alumni Association of the University of Colombo for having invited me to deliver this year's Sujata Jayawardena Memorial Oration. I am well aware of the service rendered to the University by Mrs. Jayawardena. In addition to her many contributions to the arts and her outstanding work on behalf of many charities, she is warmly remembered for her efforts to develop a closer relationship between the University, its undergraduates and its alumni.

IFRS has many challenges but is critical for progress

By Azhar Razak
Although Sri Lanka’s national accountancy body, Institute of Chartered Accountants of Sri Lanka (ICASL), is planning to harmonise Sri Lanka Accounting Standards (SLAS) in line with International Financial Accounting Standards (IFRS) beginning 2012, a local tax expert opines otherwise.

Special city council for proposed ‘Port City’

A special city council is to be set up to manage the proposed port city project in the Galle Face undertaken by the Sri Lanka Ports Authority.
Delivering the Sujatha Jaywardena memorial oration last week, Defence Secretary Gotabhaya Rajapaksa who has been given the responsibility to develop the Colombo city said that as this 400 acre reclaimed land would need a separate authority to look into the matters special to it.

Elephant House plans to introduce new Cola drink

By Indika Sakalasooriya
Sri Lankan fizzy drinks market is to get another local cola brand with one of Sri Lanka’s leading beverage producers, Ceylon Cold Stores, a subsidiary company of listed John Keells Holdings, planning to introduce one shortly, The Bottom Line learns.
Elephant House, as the company is popularly known among the public, is currently in the process of re-launching its beverage portfolio with a massive island wide promotional campaign.

Colombo City Centre set for major revamp

By Indika Sakalasooriya
 
The historic Colombo City Centre, which had long been a ‘no entry region’ since it was located in a high security zone in the Fort area, is to be developed into a bustling tourist attraction, dotted with restaurants, luxury hotels and other recreational centers, a top government official said.
Defence Secretary and Urban Development Authority Chairman Gotabhaya Rajapaksa said at a recent function that the Colombo Fort area is to be rationalised under the Colombo City Development Prgramme.

Singer Finance to add branches after IPO launch

Singer Finance Lanka Ltd intends to increase its current network of six branches and six service centres to a total of 24 in view of the expected economic growth of the country, the resulting demand for debt financing and to provide a better service to its existing and potential customers. 

Sri Lankan Accountants Lure Global Outsourcers

The New York Times - Southern China has its assembly plants. India has customer support centers, research laboratories and low-cost lawyers. And Sri Lanka’s contribution to global outsourcing? Accountants — thousands of them, standing ready to crunch the world’s numbers.

Global fixed broadband connections to hit 720 mln by 2015

The total number of fixed broadband connections worldwide will pass 500 million by the end of this year and will continue to grow to 720 million by the end of 2015, according to a study by Analysys Mason. Fixed broadband will account for 62 percent of the 1.16 billion broadband connections available worldwide by the end of 2015.

Outotec to build EUR70m water treatment plant in Sri Lanka

Finnish construction and engineering company Outotec Oyj said today the government of Sri Lanka has awarded it a contract of more than EUR70m to build a water treatment plant that will supply drinking water. The company will build the facility in Ampara district on the eastern coast of Sri Lanka under a project for the provision of treated pipe-borne water to more than 75% of the district. Outotec completed the first and second phase of the project in 1999 and 2002, respectively. The completion of the current phase three is expected in November 2013.

Highlights of proposals in the Budget 2011

Please find below the highlights of the Budget 2011 speech presented by Sri Lanka President, Mahinda Rajapaksa in Parliament on November 22, 2010. The new budget proposals are given below.

40 People Who Changed the Internet

The world has become tightly connected since the internet. The web itself has replaced the practice of reading newspaper. Most of us now communicate through e-mails instead of paper and pen. We now watch networks or movies online, it has even become a wide business venture, so much so we can now make purchase and pay our bills through the internet. The web has also transformed friendships through various social media. It also provides us the possibility to reconnect with people from our childhood and it can be a life changing event.

Sri Lanka Exports More Pepper In 2010: IPC

Up to September 2010, export of pepper from Sri Lanka to India has reached 9,073 mt as against 3,710 mt in the same period last year. In 2010, Sri Lanka is estimated to produce around 16,700 mt and it is expected that more than 10,000 mt is for export.

Sri lanka cuts bank taxes but hikes tax on stock trading

Sri Lanka has cut a series of taxes on banks in a bid to increase banking activities, but raised a tax on stock trading, President Mahinda Rajapaksa said presenting the budget for 2011 in parliament.

A debit tax on withdrawals from banks would be lifted and a so-called financial value added tax would be cut from 20 to 12 per cent, Rajapaksa said. 

Sri Lanka overhauls telecom taxes

Sri Lanka has changed the taxes for telecommunications services and also imposed regulatory licence fee of 2 percent of revenues. While high tech telecommunications equipment imports will not be charged VAT, the government has imposed a LKR 2 per minute tax on outgoing calls. The 20 percent tax replaces the VAT, a mobile subscriber levy, and an economic service charge, The Lanka Business Online reports. 

Deepa Mehta to shoot Midnight's Children in Sri Lanka

Oscar nominated director Deepa Mehta and multi-award-winning author Salman Rushdie's screen adaptation of his extraordinary multi award-winning international bestselling novel Midnight's Children will commence shooting in Sri Lanka in January 2011.

Shabana Azmi, Irrfan Khan, Soha Ali Khan, Nandita Das, Chandan Roy Sanyal and Seema Biswas will star in the English language film.

Facebook to add own e-mail service - report

Facebook is expected to unveil a revamped set of communications services that will include an e-mail system in which users will have addresses with the facebook.com suffix, two people briefed on Facebook's plans told the New York Times. Facebook has invited reporters to a press conference on 15 November, but has refused to say what it plans to announce. The company declined to comment on any unannounced communications services.

West cannot defeat al-Qaeda, says UK forces chief

The West can only contain, not defeat, militant groups such as al-Qaeda, the head of the UK's armed forces has said. General Sir David Richards, a former Nato commander in Afghanistan, said Islamist militancy would pose a threat to the UK for at least 30 years.

But he told the BBC's Andrew Marr Show a clear-cut victory over militants was not achievable. The BBC's Frank Gardner said the comments reflect a "new realism" in UK and US counter-terrorism circles.

Private Leisure International Enters Sri Lanka

Private Leisure International is now ready to establish its presence in Sri Lanka. To fill up its portfolio, the company is now inviting villa owners to list their villa. However, acceptance is subject to strict quality control.

Colombo under water after record rain

COLOMBO, Thursday 11 November 2010 (AFP) - Floods following the heaviest rains in 18 years brought parts of Sri Lanka's capital to a standstill on Thursday, officials said.

Boats were deployed by the navy to help marooned residents and police said thousands of houses were under water but there were no immediate reports of casualties.

Leading mobile phone makers lose market share

The Galaxy S from Samsung (right)
and Apple's iPhone 3G,
being demonstrated in South Korea

The world's leading mobile phone makers are losing market share to non-brand manufacturers, according to research. Analysts at Gartner say smaller, Asian companies accounted for a third of worldwide handset sales in July, August and September. Nokia is still the biggest seller of mobiles, followed by Samsung and LG.

Meanwhile, Google's Android operating system has sharply increased its share and is now the second most popular mobile operating system after Symbian.

SRI LANKA CO-HOSTS ICC WORLD CUP 2011

In 2011 Sri Lanka will host the world’s most prestigious event in the cricket calendar, the International Cricket Council World Cup. The games played in February and March will take place in stadiums located in the colonial capital, Colombo, the Southern coastal city of Hambantota and the ancient capital, Kandy. Sri Lanka is currently 2nd in the world cup rankings, closely followed by England in 5th place. As potential favourites to go through to the Quarter and Semi Finals, the England cricket team may have the opportunity to play at one of these venues.

Airtel posts $370 Million 2Q profit but misses estimates

Bharti Airtel Ltd., India’s largest mobile-phone operator, reported profit fell 27 percent after the company cut calling rates to compete in the world’s second- largest wireless market.

Second-quarter net income dropped to 16.6 billion rupees ($374 million) in the three months ended Sept. 30, compared with 22.6 billion rupees a year earlier, New Delhi-based Bharti said today. That lagged behind the 17.8 billion rupee average of 27 analyst estimates compiled by Bloomberg.

Confusion over 5 SIMs or 25 SIMS per person?

Despite media reports that said Sri Lanka’s Defense Ministry had limited use of Mobile SIMS to 5 per person an official from country’s telecom regulator said that the rule has only restricted a person to have 5 SIMS per mobile operator in the country. 

India, Sri Lanka to sign agreement on ferry service soon

India and Sri Lanka would soon sign an agreement to commence ferry service between Tamil Nadu and the island nation, a step towards promoting tourism between the two countries.
"The proposal would go to the Cabinet soon for approval and after that Memorandum of Understanding can be signed for the same," a shipping ministry official told PTI.

Sri Lanka poised to legalise gambling

Sri Lanka's parliament is set to pass a controversial law to legalise gambling today, which the opposition opposes on the grounds that it will increase prostitution.
The government is rushing through legislation that will empower President Mahinda Rajapakse, who also acts as the minister of finance, to grant licences to set up gambling establishments in specified areas.
Casinos and horse-racing bookies have been operating in Sri Lanka for decades, exploiting loopholes in the law to avoid an official ban on gambling.

Sri Lanka move ahead of India in ODI rankings

With the countdown towards the ICC Cricket World Cup 2011 reaching the 100-day mark, Sri Lanka have laid down a marker to the other 13 teams by claiming second place in the Reliance Mobile ICC ODI championship after a confidence-boosting series win over table-topper Australia.

Lankan 'pornographers' outed in police crackdown

The faces of dozens of people accused of appearing in pornographic films, in violation of anti-obscenity laws, have been published by Sri Lankan media.

They appeared in a Sinhala-language paper, with a police notice asking the public to help trace those pictured.

Skyscanner Travel Trends October 2010

Canaries overtake Costa Del Sol as Tenerife knocks Malaga from top spot

For the first time ever since Skyscanner’s Travel Trends began, Malaga has been knocked off its number one position. It was a close call, but the immensely popular Spanish city has been replaced by rival destination Tenerife. Located in the Canary Islands, Tenerife is much further south than Malaga meaning it maintains a pleasant year-round climate, which likely explains its rise in popularity with British travellers as we move into autumn and winter. 

Iran exports $520m technical services to Sri Lanka

TEHRAN – Iran carried out $520 million of technical and engineering services in Sri Lanka, the Iranian Commerce Minister Mehdi Ghazanfari said here on Monday.

During his meeting with the Sri Lankan Foreign Affairs Minister Gamini Lakshman Peiris, Ghazanfari declared Tehran’s readiness to boost economic cooperation with Colombo, IRNA News Agency reported.

Shell to finalise operations

By Jithendra Antonio
Although the Government sealed the agreement on Shell this week by buying back 51 percent of Shell Gas Lanka Ltd. and 100 percent of Shell Terminals Lanka Ltd. (STLL) for US $ 63 million, the actual deal will only be finalised by November 15, a top official said
“Shell and the Government of Sri Lanka hope to complete the deal as soon as possible, and this is expected by November 15,” said outgoing chairman/managing director of Shell Gas Sri Lanka (SGLL), Walter Sanchez, responding to a question by The Bottom Line.

BoI allays fears over licences

The Board of Investment (BoI) will continue to issue licences during the run-up to the upcoming Budget-2011 despite rumoured otherwise.
It is highly speculated that following the budget, concessions under BoI Act will be strictly limited for thrust sectors or other strategic investments over RS. 500 million.

CPC to insist on Rs20bn payback

Subsidised fuels: Furnace oil alone incurs Rs780m loss monthly
State-run Ceylon Petroleum Corporation (CPC) is to request the Treasury to pay back fuel oil subsidy dues running into over rupees twenty billion incurred during the last 24 months.
The Bottom Line learns that a memorandum of cabinet is in the process of being formulated by the Petroleum Resources and Petroleum Resources Development Ministry, appealing either to reimburse losses incurred since November 2008, due to non-payment of subsidy by the Treasury or to set off against taxes due from the CPC.

BSkyB reaches target of 10 million customers

British Sky Broadcasting has reached its target of 10 million customers. As of 30 September, the pay-TV operator had a total of 10 million customers, including 3.15 million Sky+ HD customers, 2.80 million Sky Broadband and 2.55 million Sky Talk customers.

Tune Hotels to welcome 2011 with 2 New Hotels

12 sen promotional rate for all Tune Hotels in Malaysia
Petaling Jaya, 09 November 2010 – To cater to the increasing demands and travel needs from tourists and business travellers, Tune Hotels has opened booking for its 2 new hotels in Bintulu, Sarawak that is slated for opening on 3 January 2011, and Kota Bharu, Kelantan that will open for business on 23 January 2011.

SLT reaches 200,000 ADSL Broadband customer milestone

Sri Lanka Telecom (SLT), the nation’s number one integrated telecommunications service provider and the leading broadband services provider in the country is proud to announce that 200,000 Sri Lankan homes and businesses (including entrepreneurs, small, medium & large organizations) now access broadband services via ADSL 2+ technology on SLT’s island wide Broadband network. This achievement represents more than 70% of Sri Lanka’s total broadband consumer base and over 20% of SLT Megaline (PSTN/wireline) telephone customer base.

Gold climbs to all-time highs above $1,400/oz

Gold powered to an all-time high above $1,400 an ounce on Monday, despite a bounce in the dollar, as investors sought an inflation hedge from the Federal Reserve's massive bond-buying programme.

Gold has risen almost 6 percent since just before the Federal Reserve detailed its plans last Wednesday to buy $600 billion worth of Treasuries to revive the economy.

Govt should use mobile phones to tackle poverty: UNCTAD

By Azhar Razak
Governments and policymakers in developing countries should take full advantage of Information and Communication Technologies (ICTs) to combat poverty reduction, a recent research report has highlighted.

Mihin Lanka eyes more destinations with new plane

By Azhar Razak
Sri Lanka’s low cost carrier Mihin Lanka, which currently services five destinations, is planning to add three more destinations, following the lease of a new aircraft expected to come on-board in November 2010.

Keppel Land in town

By Indika Sakalasooriya
A team of officials from Keppel Land, the property arm of the Keppel Corporation, Singapore, one of Asia’s premier property companies, has visited several Sri Lankan blue chips last week, including, Hayleys PLC, Aitken Spence and John Keells, The Bottom Line learns.

Elephant House to introduce ‘ground-breaking’ product

While planning to give a new look to its fizzy drink products following its recent rebranding efforts, Elephant House (Ceylon Cold Stores PLC) is getting ready to launch a new product which would be something ‘ground-breaking’, a source attached to the company said.

Ailing IFL to be recapitalised

The troubled Industrial Finance Limited will be re-capitalised within the next three months, thereby redeeming the nearly 50-year-old institution in danger of going bust, Central Bank Governor Ajith Nivard Cabraal said.

DEBENTURE ISSUE TO PARTLY FUND ‘PORT CITY’ PROJECT

By Azhar Razak

Following the example set out by the Urban Development Authority (UDA), Sri Lanka Ports Authority (SLPA) is likely to opt for a debenture issue to fund the much exaggerated ‘Port City’ project, which plans to change Sri Lanka’s map.

External Sector Performance – August 2010

Earnings from exports increased by 7 per cent to US dollars 760 million in August, recording the highest monthly value thus far in 2010. Cumulative earnings from exports during the first eight months of 2010 increased by 11 per cent to US dollars 5,040 million compared to the corresponding period of 2009. Expenditure on imports increased by 36 per cent to US dollars 1,143 million in August 2010 reflecting substantial increases in all major categories of imports. Cumulative expenditure on imports during the first eight months of 2010 increased by 37 per cent to US dollars 8,670 million compared to the corresponding period of 2009.

Apple launches online shop in China

Apple introduced the Apple Store in China (apple.com.cn), an online shop for Apple products including the iPhone 4 and iPad. Apple's online store in China features free shipping, free personalized engraving on any iPod or iPad, and the ability to custom configure any Mac with just a few clicks.

India to start MNP testing in Haryana

India's Department of Telecommunications (DoT) will begin mobile number portability (MNP) testing for the Haryana circle on 8 November and will go live on 25 November, reports the Business Standard.

Bharti Airtel to launch 3G services this year

Indian communications firm Bharti Airtel will launch its 3G services this year.The company successfully bid for 3G spectrum in thirteen telecom circles across India and is rolling out networks in these geographies.

Bharti Airtel outsources African customer service

Indian operator Bharti Airtel has inked contracts with IBM, Tech Mahindra and Spanco to outsource its customer service operations across 16 African countries.

Cabinet Decisions taken recently

 The following Cabinet decisions were taken on 20.10.2010 under the Chairmanship of President Mahinda Rajapakse :

New hydropower project in N' Eliya

The Ceylon Electricity Board (CEB) will soon commence construction on the Broadland hydropower complex in the Nuwara Eliya district with a total investment of US$ 82 million.

TVS unit enters Sri Lanka´s solid tyre industry

Sun Tyre & Wheel Systems, part of India´s TVS Group, has acquired Watts Lanka Pvt. Ltd., a solid industrial tyre maker in Colombo.

Nafeek's death sentence confirmed

RIYADH: The Supreme Court in Riyadh has endorsed the death sentence given to a Sri Lankan maid who murdered a Saudi infant in 2005

BCCI and SLC fight over Raina's bookie issue

Mumbai, Oct 24 (IBNS) The Indian cricket board has denied a news story that Sri Lanka Cricket had reported against Suresh Raina on association with illegal bookmakers

Sri Lankan gold medalist at CWG fails drug test

72 year gold wait doesnt end......
Colombo, Oct 24 (DPA) Sri Lankan boxer Manju Wanniarachchi has failed a doping test at the Commonwealth Games in New Delhi where he won a gold medal earlier this month

Aussie Bayliss to quit as Sri Lanka cricket coach

SYDNEY - Australian Trevor Bayliss will quit as coach of the Sri Lankan team after next year's World Cup, reports said on Monday.

Sri Lanka raises defence spending by six percent

COLOMBO — Sri Lanka announced Tuesday it would raise defence spending by six percent in 2011

World Cup tickets to go on sale in Lanka this week

Tickets for the 12 games of World Cup 2011 in Sri Lanka, which will take place between 20 February - 29 March, will go on sale on Thursday (October 21)

Wayamba's sex enhancer advert under probe

It is being reported that the sex-enhancing drug promoted by Sri Lanka Cricket’s Wayamba team at the recent Champions League in South Africa, has come under fire from the Indian Consumer Guidance Society

Indian Bank gets nod for branch in Jaffna

NEW DELHI: State-owned Indian Bank has got approval from the Reserve Bank India to open a branch in Jaffna, Sri Lanka, and expects the branch to be functional by the end of December.

Lanka hailed as destination for Film Producers by Movie 'Location Guide'

Sri Lanka has earned a rave review as a destination for movie and broadcast productions in the 2011 edition of The Location Guide, the film industry's bible for selecting movie and commercial production locales.

Central Bank maintains policy rates unchanged

In its latest monetary policy review, the Central Bank of Sri Lanka has decided to keep policy rates unchanged.

Linde offers to acquire major stake in Ceylon Oxygen

Linde AG on Saturday announced an offer to acquire all the shares in privately-held Ceylon Oxygen Limited in Sri Lanka, and the acceptance of the offer by the major shareholder, Europium Limited

Tata Motors plans small car to take on Alto

MUMBAI: Tata Motors is planning to launch a new car that will be positioned between the Nano and the Indica.

Conducive biz climate vital to double per capita income

By Azhar Razak
The Sri Lankan government should lay out a very conducive business environment to attract greater private sector investment, if the island is to achieve its ambitious medium term per capita income target

Loss of GSP+ shrinks SAGTs domestic volumes

The recent decline in domestic container throughput volumes at private-run port-terminal, South Asia Gateway Terminals (SAGT) may have been partly due to the recent loss of GSP+ concessions

Leopard Sri Lanka Fund to close in Jan 2011

By Azhar Razak
Leopard Capital Sri Lanka, which postponed its self-imposed deadline of launching two funds in Sri Lanka earlier in the year, after failing to raise the required funding, is now targeting to launch one of its funds by early 2011.

UK to introduce new business visa

UK to introduce a new business express visa program for companies tofacilitate their staff, who travel regularly to the UK.

Govt. Commences Construction Of Largest Saltern In SL

The government has commenced the construction of the largest saltern in the country at Kurumpity in Trincomalee.

Sri Lankan Airlines to acquire seven more aircraft by 2011 end

Sri Lankan Airlines will acquire its first brand new aircraft in more than a decade, among the seven aircraft it plans to take delivery of by the end of 2011.

One Shot arrested

UNP MP Ranjan Ramanayake was arrested by the Police a short while ago in Kandy for allegedly giving a woman false hopes of marrying her...

Microfinance needs re-evaluation to achieve financial inclusion - Experts

There is a broad international agreement on the importance of Financial Inclusion as a policy goal for all governments, including the developing countries of Asia.

Sri Lanka wins boxing gold

Heartbreak for Wales's Sean McGoldrick, who is narrowly beaten by Sri Lanka's Manju Wanniarachchi on countbacks following a 7-7 thriller after three rounds. That's Sri Lanka's first gold medal in 72 years at the Commonwealth Games.

Where is the Bourse heading?

Rumours are that the Colombo Bourse is on the verge of a collapse stemming from a predicted market correction although analysts say the present downslide could only be temporary.

MR to be a guest at C'wealth closing ceremony

Sri Lanka President Mahinda Rajapaksa is set to be the guest of honour at the closing ceremony of the Commonwealth Games in India, on Thursday night.

Tata Housing to launch projects in Sri Lanka

Tata Housing, a unit of Tata Sons, is foraying into international markets with the launch of projects in Sri Lanka and Maldives in the current quarter

Microsoft unveils first Windows Phone 7 handsets

Microsoft yesterday unveiled the first phones based on its Windows Phone 7 operating system. The first nine handsets are from Dell, HTC, LG and Samsung and all run on the Qualcomm Snapdragon processors. 

Airasia named the Best Asian Low-Cost Carrier

AirAsia was named the Best Asian Low-Cost Carrier by TTG, Asia Pacific’s leading travel news publisher.AirAsia was unanimously named Best Asian Low-Cost Carrier by the readers of TTG Asia, TTG China, TTGmice, TTG-BTmice China and ttgasia eDaily who cast 48,000 votes in a poll held from June to August this year.  The award reflects the airline’s popularity among travel trade insiders and the traveling public.

Sri Lankans arrested in major illegal immigration investigation

In one of the largest enforcement operations ever undertaken, the UK Border Agency and police officers undertook a series of raids on twenty-one locations in Sussex, Surrey and Kent at the end of September.

Fishing ban lifted

Sri Lanka has lifted all restrictions for fishing imposed due to LTTE terrorism making the country's territorial waters free and open for fishing.

Labour Federation opposes amendment to EPF Act

The Ceylon Federation of Labour (CFL) has filed a strong objection against the proposed amendments to the Employees Provident Fund (EPF) Act.

Tourism stakeholders concerned over promotion curbs

Tourism stakeholders in Sri Lanka have expressed their concern over a recent policy change advocated by the tourism authorities to halt promotional campaigns for the next two years.

Laugfs IPO ‘may fund Shell takeover’

By Azhar Razak

Local petroleum gas distributor Laugfs Gas Holdings (LAUGFS) is hoping to utilise funds raised through its forthcoming Initial Public Offering (IPO) to partly fund a possible acquisition of a 49 percent stake in Shell Gas Lanka Ltd (SGLL), a top company official said.

What is there to burst bubble?

By Indika Sakalasooriya

The idea of a possible bubble forming in the Colombo bourse, the world’s second best performing market at the moment, has been cast aside by local market analysts

Distributors ask payout from Royal Dutch Shell

By Jithendra Antonio

In the wake of the governments’ sky high promises to offer LPG at lower prices to consumers after the buyback, The Bottom Line reliably learns that Royal Dutch Shell PLC has faced serious criticism from its distribution channel in Sri Lanka and talks are on to compensate its distributors

Fitch Upgrades Sri Lanka's Dialog to 'AAA(lka)', Outlook Stable

Rating Action & Commentary by Fitchratings

Fitch Ratings-Colombo/Mumbai/Singapore-08 October 2010: Fitch Ratings has today upgraded Sri Lanka's Dialog Axiata PLC's (Dialog) National Long-term rating to 'AAA(lka)' from 'AA(lka)',

Apparel exports to EU rise as Colombo loses tariff benefit

Bangladesh  is enjoying the benefits of the EU decision to withdraw zero-tariff from Sri Lanka,

Lanka’s official reserves exceed US dollars 7 bn

The gross official reserves of the country surpassed the US dollars 7 billion level on 4^th October 2010, a press communication by the Central Bank said.

People’s Bank gets new CEO/Gen. Manager

People’s Bank today announced that former CEO/General Manager Mr. P. V. Pathirana has retired from his position and Mr. H. S. Dharmasiri has been appointed as the new CEO/GM of the bank according to the board's decision.

Things happening reverse?

Zimbabwean man drugged, raped by gang of women

A Zimbabwean man has accused a gang of three women of kidnapping, drugging and raping him in the fifth sexual attack targeting male victims in under a year

Fitch upgrades Sri Lanka rating, sees GDP at 7 % in 2010-2012

Fitch Ratings said on Wednesday it has affirmed Sri Lanka’s Long‐Term Issuer Default Ratings (IDRs) at ‘B+’ and has revised the Outlooks on both ratings to Positive from Stable, saying it see GDP growth reaching 7.2% in 2010-2012.

Sri Lanka to buy out Shell gas for US$63mn

The Government of Sri Lanka is to purchase the balance 51 percent stake of Shell Gas Lanka from Royal Dutch Shell plc (RDS) for 63 million US dollars, the government's information office said.

Sri Lanka’s Exports to Rise 12 Percent This Year, Official Says

Oct. 6 (Bloomberg) -- Sri Lanka’s exports are likely to rise as much as 12 percent in 2010, a central bank official said, allaying concerns growth is slowing after the island in July reported the smallest increase in shipments this year.

Sri Lanka imports more vehicles

Car imports to Sri Lanka have risen sharply in the last 3 months, with some 500 vehicles being cleared daily through customs.

Laugfs Gas IPO to raise Rs. 2.5 bn

Sri Lankan liquid petroleum gas supplier Laugfs Gas is seeking to raise 2.5 billion rupees in an initial public offer opening on November 04, 2010, a stock exchange filing said.

Insurance boost....

Amana Takaful unveils Sri Lanka’s first insurance web portal

Amana Takaful recently made history in the Sri Lankan insurance industry by launching a web portal that is meant to empower its customers and prospective clientele. The launch event took place in the presence of a select number of Amana Takaful Life clients who registered their accounts symbolising the launch of the portal.

Sri Lanka In A Sweet Spot - Prakriti Sofat

Watch the CNBC interview with Pakriti Sofat right at the BOTTOM of this page.

Prakriti Sofat, regional economist at Barclays Capital, speaks to CNBC's Oriel Morrison about the country's bond market and ratings outlook.
Sri Lanka is Asia's best performing equity market year-to-date. 

Flying back..

Gulf Air flies again to Sri Lanka

Gulf Air is to fly again to Sri Lanka following many internatinal airlines who re-commenced their operations in Sri Lanka with the end of the war that plagued the country for 25 years.
 

Expect gold to cross $2,000/ounce in next 5-10 years: Jim Rogers

Jim Rogers, chairman, Rogers Holdings, spoke with ET Now on a range of issues including the global economy, emerging markets, equities and his current contrarian bets Excerpts:

Cargills eyes beer biz?

By Indika Sakalasooriya

Speculation is rife that Cargills Ceylon PLC (CARG) is eyeing the soft liquor business through the acquisition of McCallum Breweries, the manufacturers of niche market beers, 3 Coins and Irish Dark Riva, The Bottom Line reliably learns.

A bubble building?

Super-rich investors buying gold in tonne to dodge economic worries

GENEVA: The world's wealthiest people have responded to economic worries by buying bars of gold, sometimes by the tonne, and moving assets out of the financial system , bankers catering to the very rich said on Monday. 

Racing ahead

India's auto exports to escalate 

Automobile exports from India are expected to shoot up to $12 billion by 2014 from $4.5 billion in the last fiscal, according to a news report. 

Casino entry..

Indian magnate plans casinos in Sri Lanka

 

Billionaire Rakesh Jhunjhunwala- backed Delta Corp. plans to open casinos in Sri Lanka in the next six months 

Games bid no-show 'unbelievable'

Gold Coast Mayor Ron Clarke says Sri Lanka's failure to present its bid to the Commonwealth Games Federation over the weekend raises questions about its commitment to hosting the 2018 Games.

Enthiran fever grips Lanka

Sri Lanka is in the grip of Enthiran fever, with the Rajnikanth-Aishwarya starrer running to packed houses in Tamil-speaking parts of the nation, including Colombo and northern and eastern provinces.

“So far, 12,000 people have seen the film in our complex,” said an administrator of Cinecity multiplex here, which has four theatres, each running four shows a day. The management was finding it difficult to cope with the heavy demand, he added. The film carries sub-titles in English to attract non-Tamil speakers.

Chellam theatre in Chengaladi, Batticaloa, is running a continuous show and the house is always full, according to a theatre official. “Even the heavy rain on Saturday night did not deter fans,” he said.

On the opening day (October 1), the first ticket was bought by eastern province Chief Minister S Chandrakanthan alias Pillayan.

The film has received a similar response in Jaffna. The scene is slightly different in Trincomalee, where a Nelson theatre spokesman said the fight scene at the end of the film did not go down well with the audience.

Kingdom slaps ban on recruitment from Lanka

The National Recruitment Committee has called upon all private recruitment offices in the Kingdom to sign no further contracts for the employment of Sri Lankan nationals from abroad.

The “extremely urgent” call followed disputes between the Sri Lankan Labor Union (ALFIA) and the Sri Lankan Labor Office, which could lead to delays in the arrival of workers to the Kingdom. 

It is also a response to the Sri Lankan media’s negative portrayal of the memorandum of understanding (MoU) between the National Recruitment Committee and ALFIA which was due to come into effect on Sep.10.

The MoU signed with ALFIA set recruitment charges at a maximum of SR5,500 for housemaids.

The Sri Lankan Ministry of Labor reportedly backtracked on the pretext that the MoU will deprive the Lankan economy of an additional income of over $50 million.

Recruitment offices in the Eastern Province said Sunday that most of them had already put the suspension into effect, and that with the situation currently “unclear” it would remain in force.

“Most offices are now turning to Indonesia as a viable alternative,” said one office representative. “Indonesia remains committed to the MoU it signed and which came into effect early Ramadan.”

The MoU with Indonesia sets recruitment costs at SR6,000, with visa fees on top.

– Okaz/Saudi Gazette __

Tata Comm to acquire Sri Lanka's Suntel

NEW DELHI: Tata Communications (TCL) is set to acquire Sri Lanka’s second-largest land-based telephone company Suntel. TCL (formerly VSNL), which was acquired by the Tatas following the government’s divestment in 2002, has received the approval of the government, which still owns 26% stake in the company, for the proposed acquisition.

The Indian firm had submitted the bid last month and is in advanced negotiations with Suntel, a senior government official familiar with the development said. According to documents available with ET, the acquisition will be routed through the company’s wholly-owned subsidiary Tata Communications Lanka. “TCL intends to acquire 100% of Suntel, Sri Lanka, with a view to providing domestic data services wireless network and to access local customer business,” says the company’s business plan.

One of the key reasons for the proposed acquisition is the change in the business plan by TCL. The company, which has till now been in inbound voice business, plans to enter the outbound voice traffic and data business. The Indian company is also looking for enterprise businesses, said a person familiar with TCL’s business plan. TCL also has long-distance and internet service provider licences in Sri Lanka.

In 2008, TCL attempted to buy for $90 million, but it was outbid by other players. State-owned Mahanagar Telephone Nigam Ltd (MTNL), which had submitted an aggressive bid (around $180 million), withdrew it in 2009 due to pending legal issues and high liabilities.

Although the exact valuation is not known, a senior official familiar with the development said this time, the bid would be smaller than the previous one since the company’s performance has not been in line with growth projections in the last couple of years.

“This time, the deal size is likely to be much lower than the previous bid amount as the Sri Lankan company has not grown according to the projection in the last two years,” a person familiar with the transaction said. TCL spokesperson declined to comment. Suntel is the second-largest fixed-line telecom provider in Sri Lanka with about 20 % market share, an MTNL official, who was involved in the process last time, said. Suntel, which caters to nearly 550,000 homes and offices in Sri Lanka, is the largest land-based telephone competitor to incumbent Sri Lanka Telecom (42% market share). Its services include a range of voice, data, ISDN, dedicated packet solutions and internet services.

Suntel is currently owned by a joint venture between Swedish telecom giant , Metrocorp, Townsend of Hong Kong, National Development Bank, and International Finance Corporation (IFC), a member of the World Bank Group. (ET)

Update on Price band - Oct 1

As at Friday October 1, a 10% price band is presently applicable for SEVEN listed securities.
 

Vallibel Finance (Sep 23 to Oct 13), Lake House Printers and Publishers PLC (Sep 24 to Oct 14), Bogawantalawa Plantations (Sep 29 to Oct 19), Metropolitan Resource Holdings Plc (Sep 29 to Oct 19), East West Properties PLC (Sep 30 to Oct 20) , Coco Lanka PLC (Sep 30 to Oct 20) and
Colombo Land & Development Company Plc (Oct 1 to 21 Oct), a CSE filing made on Oct 1 stated.

BoC Selects Misys BankFusion Universal Banking to provide application software

Bank of Ceylon (UK) Ltd has chosen Misys BankFusion Universal Banking, the global application software and services company for trade finance processing, Message Manager for payments and messaging and the innovative Misys Personal Finance Portal for its consumer customers.

Bank of Ceylon in the UK was an international branch of the Sri Lanka state-owned Bank of Ceylon until early 2010 when the bank was granted a UK licence. The business will be the hub for the bank's expansion programme both in volumes and new geographies to service overseas Sri Lankans.

US businessmen to meet in Sri Lanka

Washington, Oct 1 (IANS) A second annual conference to attract US investment to Sri Lanka will be held in Colombo Oct 12-14, giving business executives a chance to expand businesses in the island. The conference is organised by the Sri Lankan embassy here and the Office of the US Trade Representative, the US Department of Commerce, the US embassy in Colombo and the Sri Lanka Trade Ministry. 'Our first conference last year gave people a good look at Sri Lanka, and the potential for businesses there,' said Jaliya Wickramasuriya, Sri Lanka's ambassador to the US. 'Now some of those businesses are planning to begin operations in Sri Lanka. We want to make sure that business people know the advantages of investing here,' he said. Sri Lankan President Mahinda Rajapaksa met US investors during a business development luncheon last week. He explained to them the benefits of doing business with Sri Lanka. Those benefits include Sri Lanka's free trade agreements with India and Pakistan that gives US businesses duty-free access to those large markets, as well as relaxed foreign investment regulations.

World's most attractive employers

Google is the "world's most attractive employer" based on a survey of 130,000 career seekers with an education in business or engineering, according to Universum, a consulting firm that focuses on employer branding. Google retained its position for the second consecutive year, while rival Microsoft was rated the 7th most attractive employer.

In the overall business ranking, Google is seeing a challenge from the "Big Four" auditing firms -- KPMG, Ernst & Young, PricewaterhouseCoopers and Deloitte -- who rounded out the top five.

The sixth-most attractive business to work for is Procter & Gamble. After Microsoft in 7th place, Coca-Cola, J.P. Morgan and Goldman Sachs round out the top 10.

The rankings were compiled from a survey of "nearly 130,000 students at top academic institutions," who "chose their ideal companies to work for." The survey was first conducted in 2009.

Sky taxi

SriLankan Air Taxi takes to the skies again

SriLankan Airlines is set to re-launch its domestic floatplane service – SriLankan Air Taxi – starting this December in time for the winter tourist season, a statement by the airline said.

SriLankan’s Head of Worldwide Sales Mohamed Fazeel said: “We are delighted to announce that we will shortly be adding a new dimension to domestic travel, enabling all types of travelers to reach most parts of the island within 40 minutes. International visitors arriving in Sri Lanka can go straight on to their destinations with convenient connections.”

The National Carrier is planning to acquire two Twin Otter aircraft for the operation, each with a capacity of up to 15 passengers. These twin-engined aircraft are currently being sourced.

Bond Success

Sri Lanka extends yield curve with $1 billion issue

Sri Lanka comes to market with its largest and longest-dated sovereign ever, achieving the objective of extending its yield curve to 10 years.

The Democratic Socialist Republic of Sri Lanka has sold $1 billion of fixed-rate senior unsecured 10-year bonds -- the largest and longest-dated sovereign from the South Asian island nation ever. The notes pay a 6.25% coupon and were re-offered at par for the same amount of yield. 

On a spreads basis that translated into 373.1bp over 10-year Treasuries.


The market has seen credit spreads tighten and yields rally recently and as a result, demand for emerging market paper and longer-dated notes has picked up. Sri Lanka's new credit took advantage of both those trends.


A single-B credit doesn’t appeal to everybody, but it is included in the emerging market bond index, which helps and [hence it] appeals to emerging market-based funds globally," said a banker, noting that such funds were a key target as the country went on the road to meet up with key investors.


Sri Lanka was on the road throughout the course of last week, speaking with investors and selling a story not only of an emerging market sovereign credit, but of improved fundamentals surrounding the economy that led to a ratings upgrade by Standard and Poor’s earlier this month.


Following that upgrade, the new 2020 bonds received a B+ rating from both S&P and Fitch.


Based on the strong reception received from investors, the borrower went straight to the market with a yield guidance of 6.5%. The guidance was left unchanged throughout Hong Kong trading day on Monday, and by midday New York time, after US accounts had had a chance to look at the trade, the lead managers confirmed a final guidance of 6.25% to 6.375%. By then, they had already secured an order book of over $3 billion.


By the time the order books closed, the demand totalled $6.5 billion from 310 accounts. Incidentally, this equalled the size of the order book for Sri Lanka's $500 million 2015 sovereign issue last year, which was used as the most comparable benchmark for this deal.


During the Hong Kong trading session yesterday the bonds reached a high of 101.00 on a cash price basis. By the end of the day they had fallen slightly to 100.75 for a yield of 6.15%.


“At 10bp tighter (on a yield basis) this is a very solid performance without leaving too much value on the table for investors,” said one banker familiar with the deal.


The notes were issued under the 144A/Reg-S format and attracted strong interest from US-based accounts, which took 52.5% of the bonds.


“It was an asset that suited investor preferences in the US extremely well,” said one source. “Leading into the trade, there was a strong bid for 10-year assets in the US,” he added.


Europe bought a quarter of the notes offered and Asia took the remaining 22.5%. 

There were mixed reactions to the allocation with one source commenting that some accounts in Asia were asking why it was heavily skewed towards US accounts.


What it came down to, explained another source, was that the US was able to provide good quality orders, particularly through asset and fund managers.


Indeed, the bonds saw a strong bid from real money accounts, and fund managers and asset managers received 85% of the bonds, while the remainder was evenly distributed between pension and insurance funds, private banks and commercial banks.


Bank of America Merrill Lynch, HSBC and the Royal Bank of Scotland were joint lead managers for the offering.

(FinanceAsia)