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.