Sri Lanka Equity News: April 2016

Friday, April 29, 2016

Sri Lanka market update ASPI crosses 6500 mark, Turnover Rs.1.5bn

The Colombo Stock Exchange (CSE) ended trading on a positive note today, with the All Share Price Index (ASPI) crossing the 6,500 mark. The ASPI surged 73.73 points to close at 6,516.26. The day’s trading recorded a turnover of 1,530,337,624.80 rupees in 9,427 trades.

The index has been making consistent gains over the month of April. In 2016, the ASPI recorded a dip of 14.97% in comparison to the start of the year, but has since gained 9.48%recording an upward trend. (Apr 29, 2016 4.30 p.m)

ASPI trading at 6,502.97, up 60.44 points or 0.94 percent with gains across the board following statement from IMF that Sri Lanka has reached a technical agreement with the International Monetary Fund for 1.5 billion dollars, brokers said. The loan program will need approval by the IMF’s executive board, which is due to consider it in early June. (Apr 29, 2016 1.30 p.m)

USD/LKR spot-next quoted at 146.50/60 Friday, up from 146.30/40 on Thursday, dealers said. ” There seems to be interest in rupee bonds.” (Apr 29, 2016 10.30 a.m)

Shares in most Asian stock markets edged lower Friday, with gains capped by disappointment over the Bank of Japan holding back on additional stimulus and worries about global economic growth. China’s Shanghai Composite Index was little changed at 0.31 percent while Hong Kong’s Hang Seng Index was down 1.48 percent.. Elsewhere in Asia, Korea’s Kospi was down 0.54 percent and Australia’s S&P/ASX 200 was up 0.29 percent. Japan’s stock market was closed in observance of a public holiday. (Apr 29, 2016 08.30 a.m)

Sri Lanka's deal with IMF has 3 benefits for external financing profile: Moody's

Apr 29, 2016 (LBO) – Sri Lanka’s 1.5 billion US dollars deal announced today with the IMF will have three benefits for Sri Lanka’s external financing profile, issuing a statement Moody’s Investors Service said.

Marie Diron, Senior Vice President, Sovereign Risk Group, Moody’s Investors Service, and the lead sovereign analyst for Sri Lanka highlighted the three points as reproduced below.

Firstly, program disbursements together with forthcoming multilateral and bilateral loans will provide external liquidity to ease immediate financing pressures.

Secondly, the financing will likely be at more favorable terms than Sri Lanka can avail of through the market, which alleviates debt servicing cost pressures.

Thirdly, if the agreement restores investor confidence in Sri Lanka’s policy framework, it could ultimately support more stable private external inflows, such as FDI.

The agreement comes as Sri Lanka’s sovereign credit profile is increasingly under pressure from its large fiscal deficits, high debt levels and poor debt affordability.

“If the program supports Sri Lankan authorities’ efforts to boost tax revenues and better manage state owned enterprises, it would address constraints on economic growth and reduce fiscal imbalances, thus improving the sovereign’s credit profile,” Diron said.

“However, we expect bumps in the fiscal consolidation path due to difficulties in implementing revenue raising measures and the possible crystallization of some contingent liabilities.”

Sri Lanka sealed a three year agreement today to borrow 1.5 billion US dollars from the International Monetary Fund.

Colombo inflation accelerates 3.1-pct in April 2016

Apr 29, 2016 (LBO) – Consumer prices in Sri Lanka's capital Colombo has accelerated 3.1 percent in April 2016 from a year earlier, up from 2.0 percent in March 2016 with the inflation index gaining 1.3 percent in the month, the state statistics office said.

The Year on Year inflation of Food Group has increased from 1.4 percent in March 2016 to 4.9 percent in April 2016 while Non‐food Group decreased by 2.5 percent to 1.7 percent during this period.

For the month of April 2016, on year to year basis, contribution to inflation by food commodities was 2.29 percent and the contribution of Nonfood items was 0.89 percent.

The CCPI for all items for the month of April 2016 was 184.1 and it records an increase of 2.4 index points or a percentage of 1.33 compared to the month of March 2016 for which the index was 181.7.

CEYLON COLD STORES - DIVIDEND ANNOUNCEMENTS

CEYLON COLD STORES PLC
Company ID: - CCS
Date of Announcement: - 29.Apr.2016
Rate of Dividend: - Rs. 10.00 per share /Final Dividend
Financial Year: - 2015/2016
XD: - 11.May.2016
Payment: - 20.May.2016
Share Transfer Book Open

KEELLS FOOD PRODUCTS - DIVIDEND ANNOUNCEMENTS

KEELLS FOOD PRODUCTS PLC
Company ID: - KFP
Date of Announcement: - 29.Apr.2016
Rate of Dividend: - Rs. 8.00 per share /Final Dividend
Financial Year: - 2015/2016
XD: - 11.May.2016
Payment: - 20.May.2016
Share Transfer Book Open

Thursday, April 28, 2016

Oil hits 6-month high, speculation on OPEC-Russia deal

Apr 28, 2016 (LBO) – Oil prices hit six month highs before dipping slightly on mixed reports about inventories.

Brent Crude hit a high of 47.05 dollars, but is currently down 0.55 percent at 46.92 dollars per barrel.

Oil has risen in recent weeks from market optimism that OPEC and Russia will freeze production at current levels, while U.S. production levels off, although the oil meeting ended in a stalemate.

“With crude inventories building and the Saudis still pumping at record levels, we feel the recent run-up has been mainly fueled by the weakness on the dollar,” said Tariq Zahir, trader and portfolio manager at Tyche Capital Advisors in New York.

The American Petroleum Institute said late Tuesday that U.S. oil inventories fell by 1.1 million barrels last week, giving the commodity a jolt in early trading Wednesday, according to USA Today.

But the U.S. Energy Information Administration said U.S. commercial crude oil inventories rose 2 million barrels last week, confusing markets.

Oil giant ExxonMobil on Tuesday lost its AAA credit rating from Standard & Poor’s in a reflection of the market’s sharp downturn.

Sri Lanka market update Asian stocks mixed, BoJ policy steady

The Bank of Japan’s (BOJ) decision to keep monetary policy steady caused sharp swings in Japanese markets Thursday, with the yen rallying sharply and stock futures pointing to steep losses.Nikkei 225 futures in Chicago fell 4.41 percent to 16,780 after the BOJ decision, while the dollar/yen pair fell 2.06 percent to 109.14. Australia’s ASX 200 was up 0.64 percent in morning trade. In Korean the Kospi wavered between positive and negative territory before trading down 0.3 percent while in Hong Kong, the Hang Seng was up 1.28 percent. Chinese mainland markets were mostly flat, with the Shanghai composite up 0.08 percent, while the Shenzhen composite dropped 0.09 percent. (Apr 28, 2016 08.30 a.m)

No reason to keep exporter's money abroad: Central Banker

Apr 28, 2016 (LBO) – Sri Lankan exporters do not have a clear reason to keep their money abroad as the Central Bank has already removed restrictions on foreign currency withdrawals from foreign currency accounts, a senior official said.

Deputy Governor of the Central Bank Nandalal Weerasinghe speaking at an event said the exporters will have a higher return bringing in money here.

“Earlier the exporters had a concern over bring in money into Sri Lanka,” Weerasinghe said.

“Even they retain them in foreign currency accounts they wouldn’t be able to use it for any purpose without the approval of Central Bank. Now we have done away with that.”

Earlier foreign currency withdrawals were limited for activities like education or medical purposes.

“With that facility I don’t see a clear reason why they won’t bring money here,” he said.

“Because if you bring money here in foreign currency account, it will have a higher return and the same time they don’t have a restriction at all for them to keep that money.”

The Finance Ministry recently issued a gazette notification requiring the repatriation of funds from exports that are retained abroad.

It contained three clauses:
1) Repealing the exemption granted in respect of payment for goods exported from Sri Lanka in the Extraordinary Gazette Notification No. 759/15 dated 26 March 1993.
2) Requiring repatriation of any such payment retained abroad as at 01 April 2016 to Sri Lanka not later than 01 May 2016.
3) Requiring any such payment received on or after 01 April 2016 to be repatriated to Sri Lanka within 90 days from the date of exportation of goods.

The gazette said these proceeds may be credited to any Foreign Currency Account maintained in the name of the exporter in the Domestic Banking Unit of a Licensed Commercial Bank or sold to a LCB.

Sri Lanka projected economic growth 5.4-pct in 2016; 5.9-pct in 2017: UNESCAP

Apr 28, 2016 (LBO) – Sri Lanka’s economic growth is projected to gain further momentum, at 5.4 percent in 2016 and 5.9 percent in 2017, newly released 2016 UNESCAP report said.

The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) report further said private consumption in Sri Lanka will likely remain the key growth driver amid greater urbanization and rising demand for housing.

As per the report, one immediate policy challenge is to ensure a strong fiscal position and debt sustainability.

Public debt reached 72 percent of GDP in 2014. The 2016 budget suggests that the fiscal deficit would remain large at 5.9 percent of GDP.

The fiscal shortfall is due to both limited revenue collection, with the tax revenue-to-GDP ratio having been only 10.2 percent in 2014, and the country’s large expenditure burden.

The report highlights that unless tax reforms and expenditure rationalization are implemented, fiscal conditions are unlikely to improve significantly.

UNESCAP also points out that one of the medium-term challenges is to transform Sri Lanka into a competitive export-led economy.

To achieve this, the report recommends the Government to foster public-private partnerships and promoted liberalization of the services sector.

“The need to enhance labour skills, diversify export markets, restructure loss-making State-owned enterprises and reduce infrastructure deficiencies will remain important,” the report said.

“Development in these areas would help the country to attract more FDI and employment.”

The report also highlights that youth employment in Sri Lanka is 10 times higher than overall employment, the largest difference in the Asia-Pacific region.

Wednesday, April 27, 2016

Sri Lanka market update Asian stocks mixed, oil hovers near 2016 high

Asian stocks showed mixed performances ahead policy decisions from the Federal Reserve and the Bank of Japan. The MSCI Asia Pacific Index dropped 0.5 percent to 131.69 while Japan’s Topix index lost 0.8 percent. Australia’s S&P/ASX 200 Index gained 0.8 percent. South Korea’s Kospi index and New Zealand’s S&P/NZX 50 Index both slid 0.2 percent. Singapore’s Straits Times Index fell 0.5 percent. Hong Kong’s Hang Seng Index lost 0.1 percent, while the Hang Seng China Enterprises Index of mainland stocks traded in the city rose 0.2 percent. The Shanghai Composite Index was little changed. (Apr 27, 2016 07.30 a.m)

In oil – crude oil prices hovered near 2016 highs with U.S. crude traded at USD44.52 a barrel, not far from USD44.83, the highest since early November scaled on Tuesday.

Fastest population shift in history, opportunity or threat to Asia?

Apr 27, 2016 (LBO) – If countries do not start planning for the rapid Asian demographic change, they will miss out on a unique opportunity to boost growth and investments for the future, a UN report said.

The United Nations Development Programme (UNDP) in its latest Regional Human Development Report says that Asia-Pacific countries now have more working-aged people and fewer dependents than at any point in history, providing a springboard for growth.

Some economists, however, argue that steady state principles would lead to sustainable outcomes and less competition for limited resources, although this is a point of contention among economists.

Region-wide, 68 percent of people are of working age and only 32 percent are dependents.

“When countries have a greater share of people who can work, save and pay taxes, they have the potential to transform their economies and power investments in healthcare, education and other building blocks of future prosperity,” said Thangavel Palanivel, lead author of the report.

The report calls for immediate responses and outlines “9 Actions for Sustainable Development”. These are concrete policies tailored to the demographic profile of individual countries.

For states with a large working-aged population, UNDP is calling for the creation of decent jobs to match the growing workforce, equal employment for women, and ways to turn savings into investments inside the region.

For countries with young populations, there is a need to invest in education and healthcare, smooth the transition from school to work and encourage youth participation in public life, it said.

In older countries, governments have to design fair, sustainable pension systems, support active ageing and promote appreciation for the value of older citizens. This includes making sure that older people who want to work can bring their skills and experience to the market.

“The window of opportunity to increase productivity, invest in growth and save for the future is between now and 2050,” said Haoliang Xu, UN Assistant Secretary-General and UNDP Director for Asia and the Pacific.

“If countries in Asia-Pacific do not create optimal employment conditions, the regional economy will begin to slow down by 2050 as the current working-aged population begins to retire.”

With 58 percent of all the working people on earth, what happens in Asia-Pacific will affect countries far beyond the region.

“Growth, employment and migration in the west are inextricably linked to what happens in the east,” said Haoliang Xu. “The sun rises here, but its effects are soon felt on the other side of the world.”

According to the report there is no one solution for every country, but the region’s diversity provides room for south-south cooperation.

“Governments need to share experiences on long-term fiscal planning, including the sustainable use of tax revenue. Cooperation can also encourage safe migration from younger to older countries within the region and reduce the desperate flight of migrants to Europe.”

Sri Lankans named in Panama Papers expected in May

Apr. 27, 2016 (LBO) – The International Consortium of Investigative Journalists said they will release on May 9th a searchable database with information on more than 200,000 offshore entities that are part of the Panama Papers investigation.

The data comes from the Panamanian law firm Mossack Fonseca, one of the top players in the offshore world, and includes information about companies, trusts, foundations and funds incorporated in 21 tax havens, from Hong Kong to Nevada in the United States, the ICIJ statement said.

“It links to people in more than 200 countries and territories,” ICIJ said.

Sources told Lanka Business Online that the names could be expected on May 9th.

Central Bank Governor Arjuna Mahendran speaking on Tuesday said that the authenticity of the documents will have to be established and an investigation will take place.

He said they was waiting for the names to is revealed, and they were in touch with partner organizations regarding this.

It is not yet clear whether the Panama Papers would reveal individuals who have minimized their tax liabilities in low-tax jurisdictions or those who have broken laws and avoided paying tax.

When the data is released, users will be able to search through the data and visualize the networks around thousands of offshore entities, including, when possible, Mossack Fonseca’s internal records of the company’s true owners.

The statement said that the interactive database will also include information about more than 100,000 additional companies that were part of the 2013 ICIJ Offshore Leaks investigation.

BIMPUTH FINANCE - DIVIDEND ANNOUNCEMENTS

BIMPUTH FINANCE PLC
Company ID: - BLI
Date of Announcement: - 27.Apr.2016
Rate of Dividend: - Rs. 1.50 per share (Subject to dividend tax of 10%) /Interim Dividend
Financial Year: - 2015/2016
XD: - 09.May.2016
Payment: - 16.May.2016
Share Transfer Book Open

UNION CHEMICALS - DIVIDEND ANNOUNCEMENTS

UNION CHEMICALS LANKA PLC
Company ID: - UCAR
Date of Announcement: - 27.Apr.2016
Rate of Dividend: - Rs. 9.00 per share / Final Dividend
Financial Year: - 2015
Shareholder Approval: - Required
AGM: - 30.May.2016
XD: - 31.May.2016
Payment: - 08.Jun.2016
Share Transfer Book Open

HARISCHANDRA MILLS - DIVIDEND ANNOUNCEMENTS

HARISCHANDRA MILLS PLC
Company ID: - HARI
Date of Announcement: - 27.Apr.2016
Rate of Dividend: - Rs. 40.00 per share /Interim Dividend
Financial Year: - 2015/2016
XD: - 09.May.2016
Payment: - 16.May.2016
Share Transfer Book Open

Tuesday, April 26, 2016

Sri Lanka holds rates unchanged after policy meeting

Apr 26, 2016 (LBO) – Sri Lanka’s monetary board held interest rates unchanged after a monthly policy meeting to allow time for recent tightening to take its course.

“Considering the fact that the Central Bank has already adopted measures to tighten monetary policy by raising the Statutory Reserve Ratio (SRR) and policy interest rates, and that the impact of these measures is yet to be reflected in monetary conditions in full,” the board said maintaining rates was appropriate.

The full statement is below:

Headline inflation, as measured by the Colombo Consumers’ Price Index (CCPI, 2006/2007=100), declined to 2.0 per cent on a year-on-year basis in March 2016 from 2.7 per cent in February 2016, mainly due to the decline in food inflation. On an annual average basis, CCPI based headline inflation edged up to 1.1 per cent in March 2016 from 0.9 per cent in the previous month.

Year-on-year headline inflation, based on the National Consumer Price Index (NCPI, 2013=100), was 2.2 per cent in March 2016 compared to 1.7 per cent in the previous month, and was 2.4 per cent on an annual average basis. Meanwhile, the CCPI based core inflation, which reflects underlying demand pressures in the economy, declined to 4.5 per cent in March 2016 from
5.7 per cent in the previous month, on a year-on-year basis.

In the monetary sector, broad money (M2b) recorded a year-on-year growth of 19.8 per cent
in February 2016, compared to 19.1 per cent in the previous month, driven by the expansion in
domestic credit aggregates. Credit granted to the private sector by commercial banks, which is the
largest category of domestic credit, increased by 26.5 per cent in February 2016, on a year-on-year
basis, compared to 25.7 per cent in January 2016, while in absolute terms, credit granted to the
private sector grew by Rs. 53.7 billion during the month of February 2016. Meanwhile, market
interest rates have risen reflecting the tight monetary conditions in the economy. Going forward, a
gradual slowdown in money and credit expansion is expected in the period ahead, as the recent
monetary policy measures are expected to have an impact on the economy with some time lag.

In the external sector, the decline in expenditure on imports in February 2016 has been greater than the decline in earnings from exports, thereby narrowing the deficit in the trade account by 11.7 per cent, year-on-year. Earnings from tourism are estimated to have increased by 22.8 per cent in March 2016, while workers’ remittances recorded a healthy increase of 8.3 per cent in February 2016. Gross official reserves are estimated to have stood at US dollars 6.2 billion by end March 2016 compared to US dollars 6.6 billion at end February 2016, and the Sri Lanka rupee remained broadly unchanged against the US dollar thus far during 2016.

Considering the fact that the Central Bank has already adopted measures to tighten monetary policy by raising the Statutory Reserve Ratio (SRR) and policy interest rates, and that the impact of these measures is yet to be reflected in monetary conditions in full, the Monetary Board, at its meeting held on 26 April 2016, was of the view that the current monetary policy stance is appropriate and decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank unchanged at 6.50 per cent and 8.00 per cent, respectively.

A new political culture will be introduced after May 01: President

Apr 26, 2016 (LBO) – Sri Lanka’s President Maithripala Sirisena says he will introduce a new political programme in the country after May 01 and take several new political decisions for the betterment of the country and its people.

“These decisions will help to prevent the corrupt forces, who used state powers and assets in an erroneous way, regaining the power in the country another time,” he said.

“It will also help to protect the democracy and freedom of the public while taking the country forward without corruption and fraud.”

He made these comments following at a public rally following a ceremony to vest the Medirigiriya Water Supply Project – Phase I & II with the public, Monday.

The also emphasized that he will not allow any room to disappoint the expectation of the people who voted to bring this new government into power with the aim of creating a clean political culture and building a free country.

“Even though various criticisms were leveled against the government in an environment where the freedom of expression is secured, the government has implemented a strong strategy to uplift the living standard of the people while developing the economy of the country,” he said.

“Today, the development process of Sri Lanka has received utmost international support, and for the first time in the history of the country the Head of State of Sri Lanka has been invited to attend the G7 summit.”

The President further said that a prominent business delegation from Germany, including it’s economic affairs Minister will visit Sri Lanka in the next month to explore business opportunities in the country and said that the Government of Iran also has extended an invitation for him to visit there to find ways how Iran could assist for the development of Sri Lanka.

Swedish Foreign Minister, companies meet Sri Lankan businesses

Apr 26, 2016 (LBO) – Swedish Foreign Minister Margot Wallström met Sri Lankan government and business representatives together with representatives of several top Swedish companies at a discussion on cooperation for sustainable urban development on Monday.

Swedish companies such as ABB, Axis Communications, Ericsson, Icomera, Saab, Scania and Volvo were represented, while officials of several Sri Lankan companies and trade chambers were present.

Sri Lanka has urban areas growing faster than other countries in the region and there were opportunities for investment in urban infrastructure and urban services with a focus on sustainable technologies, officials pointed out.

“Companies represented today are all global providers of state of the art technologies in their respective fields,” Anna Liberg, trade commissioner for South Asia, Business Sweden, said.

“Areas of particular interest are engineering and services for infrastructure which accounts for significant share of Sweden Sri Lanka trade,” she said.

Sri Lanka wanted cooperation in areas such as water supply, desalination, swerage, water metering and in transportaton such as rapid bus transit, electrification of railway and monorail, officials said.

Lakshaman Jayasekara, project director for Western Region Megapolis Planning Project, pointed out that there were several opportunities in the transportation sector and the six-million strong Western region needed sustainable technologies to drive growth.

“We have believed in Sri Lanka even in troubled times, and I still believe,” Leif Ohlson, the secretary general of the Sweden-Sri Lanka Business Council, said speaking to the audience.

He said Sri Lanka has a good road network, and offers excellent flight connections for international investors.

Sri Lanka has several high quality products that are yet to enter the Swedish market, and Stockholm is yet to have a Sri Lankan restaurant, Ohlson added.

Sri Lanka market update Asian stocks defensive on Fed announcement, Oil down

Asian stocks fell for a third day ahead of a US Fed rate announcement. The MSCI Asia Pacific Index slipped 0.3 percent to 132.41. Japan’s Topix index lost 0.6 percent as the yen traded at 111.04 per dollar while South Korea’s Kospi index fell less than 0.1 percent. Australia’s S&P/ASX 200 Index was little changed while New Zealand’s S&P/NZX 50 Index slipped 0.2 percent. Both markets resumed trading after Monday’s holiday. Futures on the FTSE China A50 Index and the Hang Seng Index were both up 0.1 percent while the Shanghai Composite Index declined 0.4 percent. (Apr 26, 2016 07.30 a.m)

In Oil – Oil prices lost steam following a rally to five-month highs last week with Brent crude LCOc1 traded at USD44.71 per barrel, down 0.9 percent so far this week, off its five-month high of USD46.18 hit last week but West Texas Intermediate crude climbed 0.8 percent early Tuesday after sliding 2.5 percent on Monday. (Apr 26, 2016 07.30 a.m)

Sri Lanka inflation accelerates 2.2-pct in March 2016

Apr 25, 2016 (LBO) – Sri Lanka’s consumer prices as measured by National Consumer Price Index rose 2.2 percent in March from the 1.7 percent inflation reported a month earlier on year-on-year basis, data from the state statistics office showed.

The National Consumer Price Index has been compiled as 110.0 for March 2016 and shows a decrease of 0.8 index points or a percentage of 0.72 compared to the previous month’s index of 110.8.

This change is due to the value change decrease of food items by 0.73 percent and value change increase of non-food items by 0.07 percent.

The value change of food commodity group has decreased by 0.73 percent in March compared to previous month and the value change of non food commodity group has increased by 0.07 percent.

National Consumer Price Index is the latest Consumer Price Index released by the Department from October 2015 with a time lag of 21 days.

Demand for infrastructure finance shows no sign of slowing: ADB

Apr 25, 2016 (LBO) – The demand for finance for major infrastructure and development projects in Asia and the Pacific shows no sign of slowing as regional economies seek ways to address moderating economic growth, inequality, and significant environmental risks, says the Asian Development Bank (ADB)’s 2015 Annual Report.

As ADB marks its 50th year of operations in 2016, the latest annual report, shows that total operations surged to 27.17 billion dollars in 2015—the highest in ADB’s history. The total included 16.29 billion dollars in approvals for loans and grants, 141 million dollars for technical assistance, and 10.74 billion dollars for cofinancing, which increased by a record 16 percent.

Disbursements, a key factor in improving aid effectiveness, also hit a new record of 12.22 billion dollasr in 2015, an increase of 22 percent over the previous year. Private sector operations, a major focus of ADB’s long-term strategy for boosting growth in the region, jumped to $2.63 billion from $1.92 billion in 2014.

These figures update the provisional operations numbers released by ADB in January. “Our record performance in 2015 reflects a growing demand from the Asia and Pacific region for ADB’s development assistance,” said ADB President Takehiko Nakao in his 2015 AR message.

“Poverty persists despite the region’s impressive growth, and infrastructure and other development needs are monumental.” ADB estimates that the region needs about $800 billion for infrastructure investments annually, amounting to about 6% of gross domestic product, compared with current investments of about 2%-3% in many countries in Asia and the Pacific. The funding deficit is a key cause of constraints on economic growth and poverty reduction in the region.

2015 AR focuses on ADB’s response to help the region address these challenges and to implement the ambitious new development agenda adopted by the international community in 2015. ADB has committed to playing a central role in financing the Sustainable Development Goals, signed in September 2015, and supporting the new climate deal forged during the 21st Conference of the Parties on climate change in Paris in December, the 2015 AR says.

To deliver on this commitment, ADB in 2015 announced it was significantly scaling up its capacity to provide more financing through a merger of its concessional Asian Development Fund loan portfolio with its ordinary capital resources balance sheet. Starting from January this path-breaking reform will almost triple ADB’s equity base and allow it to increase assistance to developing member countries by up to 50%, and to its poorest members by up to 70%.

In September, ADB became the first multilateral development bank to commit to a sizeable climate finance target by announcing it would double its annual climate financing to $6 billion by 2020. Tackling climate change is critical in Asia and the Pacific, where rising sea levels, melting glaciers, and weather extremes like floods and droughts are increasingly costing jobs and lives. ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.

US expected to hold rates this week

Apr 25, 2016 (LBO) – The U.S Federal Reserve is widely expected to hold interest rates when its policy makers meet this week.

More important than the actual rate decision at this week’s (26th-27th) Fed meeting will be the language of the policy statement, analysts say.

“The market for Fed funds futures seems to be assigning a low probability to an interest rate hike,” a Reuters report said.

US Fed chair Janet Yellen had spoken extensively about global risks after the previous policy meeting and it remains to be seen whether she signals that these risks have receded somewhat in recent weeks.

The Fed raised its policy interest rate last December for the first time in a decade when market volatility finally subsided in the wake of a scare over China’s economy.

The Fed meeting will be flanked by similar policy meetings in Europe and Japan.

The European Central Bank promised last week to keep monetary policy loose while a meeting of the Bank of Japan is expected to do the same.

This should provide some relief to the financial markets that have regained some of the ground lost earlier in the year, the report said.

Sri Lanka exporters protest gazette on repatriation of funds

Apr 25, 2016 (LBO) – Sri Lankan exporters have begun to protest after the Finance Ministry issued a gazette notification requiring the repatriation of funds from exports that are retained abroad.

“As part of current policy measures taken to improve the foreign exchange inflows to the country, the Hon. Minister of Finance has issued the Gazette Notification (Extraordinary) No: 1960/66 dated 01 April 2016,” the notfication said.

It contains three clauses:
1) Repealing the exemption granted in respect of payment for goods exported from Sri Lanka in the Extraordinary Gazette Notification No. 759/15 dated 26 March 1993.

2) Requiring repatriation of any such payment retained abroad as at 01 April 2016 to Sri Lanka not later than 01 May 2016.

3) Requiring any such payment received on or after 01 April 2016 to be repatriated to Sri Lanka within 90 days from the date of exportation of goods.

These proceeds may be credited to any Foreign Currency Account maintained in the name of the exporter in the Domestic Banking Unit of a Licensed Commercial Bank or sold to a LCB, the notification states.

Without amounts specified in the notification, this amounts to a general decree to exporters, some expoters said, while others point out that that there is a lack of consistency in policy.

With continued pressure on foreign reserves, analysts say Sri Lanka is tightening its procedures with exporters to increase fund inflows into the island and tackle the problem of money stashed outside the country.

HOUSING DEVELOPMENT FINANCE CORPORATION BANK OF SRI LANKA - DIVIDEND ANNOUNCEMENT

HDFC BANK
Company ID: - HDFC
Date of Announcement: - 26.Apr.2016
Rate of Dividend: - Rs. 0.75 per share / Final Dividend
Financial Year: -2015
Shareholder Approval: - Required
Dates to be notified

INDO MALAY (INDO) - CORPORATE DISCLOSURE

http://www.cse.lk/cmt/upload_cse_announcements/3011461669959_.pdf

SHALIMAR (MALAY) (SHAL) - CORPORATE DISCLOSURE

http://www.cse.lk/cmt/upload_cse_announcements/6071461669917_.pdf

GOOD HOPE (GOOD) - CORPORATE DISCLOSURE

http://www.cse.lk/cmt/upload_cse_announcements/3061461669760_.pdf

SELINSING (SELI) - CORPORATE DISCLOSURE

http://www.cse.lk/cmt/upload_cse_announcements/4971461669313_.pdf

TOKYO CEMENT COMPANY (LANKA) (TKYO) - CORPORATE DISCLOSURE

http://www.cse.lk/cmt/upload_cse_announcements/1731461643885_.pdf

AMANA TAKAFUL (ATL) - RIGHTS ISSUE 1 for 5

http://www.cse.lk/cmt/upload_cse_announcements/5441461582435_.pdf

CHEVRON LUBRICANTS LANKA (LLUB) - SUB-DIVISION OF SHARES 1 for 2

http://www.cse.lk/cmt/upload_cse_announcements/3261461578782_.pdf

Saturday, April 23, 2016

Interview: Sri Lanka wants infrastructure that generate revenue, says Niroshan Perera

Apr 22, 2016 (LBO) – Sri Lanka will move ahead with development projects that generate revenue while strengthening accountability of state institutions to Parliament, a government minister said.

State Minister for National Policies and Economic Affairs, Niroshan Perera, spoke to Lanka Business Online on several aspects of policy.

Projects such as the Mattala airport and Hambantota harbour will be developed to generate revenue, he said.

“If you take large-scale infrastructure projects such as the Mattala airport and the Hambantota harbour, we have to tie them to income generating activities. So, that is why we have talked with the Chinese,” Perera said.

“We are in the process of having a large industrial zone in the Hambantota area. With that zone, connecting the airport for cargo as well as Chinese tourists and other tourists will be a boost to the Sri Lankan economy.”

Sri Lanka’s current government, which took office last year, appears to have better plans to improve accountability of state enterprises and increase transparency compared with its predecessor. This could be a crucial step in improving public information and stemming losses at state enterprises.

Nevertheless, senior-most politicians of this government are often long on plans and hurling accusations, and short on evidence to back it up, which does not improve public dialogue.

Accountability to Parliament
Perera believes there is a firm push to improve accountability of state enterprises.

“We have to rectify some of the large number of institutions that are bleeding. In terms of responsibility we have presented all these things to Parliament,” Perera said.

“COPE and COPA have been strengthened,” he added, referring to the Committee on Public Enterprises, and Committee on Public Accounts, which have members of the opposition sitting in them.

Rather than report to Parliament every two years, some heads of state institutions have been called frequently to report on progress, he said.

Although the State Minister didn’t provide details, he said Sri Lanka’s debt may be as high as 10.5 trillion rupees. This likely includes debt of state enterprises.

Given that the island’s state enterprises have always been in debt, it isn’t immediately clear whether this adversely impacts the government’s debt ratios.

Restructuring SriLankan
The loss leader is Sri Lankan Airlines, and Perera said a review is taking place of orders placed for aircraft.

Some of the new aircraft could manage long haul flights to North America, while the longest routes SriLankan managed previously were to Europe.

“There is a review going on whether we need that type of aircraft. Based on that the government will take a decision. Ultimately we are competing with other more efficient airlines,” he said.

A private investor is one of the options they were considering in terms of restructuring it, he added.

“As a new government we are faced with restructuring all these institutions, we have to transfer the debt. Even if you are going for a private-public partnership, I don’t think private sector institutions will take the debt.”

A flagship project will be the Port City, and the government is putting the finishing touches on an agreement.

“We are still negotiating what the exact size is going to be, next month we will have a new agreement with the company which is doing the Port City. It won’t be expanded,” he said.

Raising tax revenue
In terms of government revenues, Perera said essential items would be exempt in a planned VAT increase to 15 percent in May, and they would try to minimize the impact on the public.

A slowdown in exports had affected government revenue, but there were plans to increase revenue over the next few years.

“We believe that the high society should pay their fair amount of taxes,” Perera said. Sectors such as tourism had potential to provide more revenue to the government, he added.

Another source of revenue could be money hidden abroad.

“Individuals have been taking money out of the country. First thing to do is have very good anti-corruption measures. We need those institutions. We hope especially Parliament will take a lead in this.”

“The Prime Minister’s decision is to make the Parliament the key area where all these decisions will be made public.”

Friday, April 22, 2016

SANASA DEVELOPMENT BANK - SCRIP DIVIDEND ANNOUNCEMENT

SANASA DEVELOPMENT BANK PLC
Company ID: - SDB

SCRIP DIVIDEND
Date of Initial Announcement: - 29.Mar.2016
Proportion: - One (01) share for every 21.9467 existing shares held
Qty Offered: - 1,833,838
Financial Year: - 2015
Shareholder Approval: - Required
AGM: - 31.May.2016
XD: - 01.Jun.2016
Share Transfer Book Open

SANASA DEVELOPMENT BANK - CASH DIVIDEND ANNOUNCEMENT

SANASA DEVELOPMENT BANK PLC
Company ID: - SDB

CASH DIVIDEND
Date of Initial Announcement: - 29.Mar.2016
Rate of Dividend: - Rs. 2.50 per share (Subject to dividend tax of 10%) / Final Dividend
Financial Year: - 2015
Shareholder Approval: - Required
AGM: - 31.May.2016
XD: - 01.Jun.2016
Payment: - 09. Jun.2016
Share Transfer Book Open

Wednesday, April 20, 2016

Seylan Bank to sell Rs5bn in listed debt

Apr 20, 2016 (LBO) – Seylan Bank will sell up to five billion rupees in listed debt, the bank said in a statement.

“The Bank’s board has approved to issue three billion rupees of debt with a further option to sell another two 2 billion rupees,” a stock exchange filing said.

The debentures will be issued for tenures of five and seven years and have a coupon on 100 rupees. “The interest rates options will be announced prior to the opening of the issue,” the statement added.

Sri Lanka tea sees better demand for high grown small leafs

Apr 20, 2016 (LBO) – Sri Lanka’s tea at auction offerings saw good demand all round with better demand for high grown small leaf teas, Forbes & Walker Tea Brokers said in their latest report.

“Consequent to the smaller volume on offer coupled with the absence of an auction last week on account of Sinhala/ Tamil New Year there was good demand all round,” the report said.

“Indeed an encouraging sale for the high grown small leaf teas.”

The full report follows;

15^th sale of the year was concluded which had on offer a relatively small quantity totalling 4.9M/kgs. In comparison, the corresponding sale in 2015 had on offer a volume of 7.4M/kgs. Consequent to the smaller volume on offer coupled with the absence of an auction last week on account of Sinhala/ Tamil New Year there was good demand all round.

Ex-Estate offerings totalled a 0.9M/kgs which met with excellent demand. Overall quality of teas on offer from the Western Planting districts showed no significant change whilst Nuwara Eliya’s recorded a sharp decline in quality. Uva/Udapussellawa’s in general showed an improvement on last. Best Western – Select coloury invoices were substantially dearer whilst the others were firm and Rs. 10-20/- per kg dearer. Corresponding BOPF’s gained Rs. 20-40/- per kg. In the below best category select coloury teas gained Rs. 10-20/- per kg and more following airmail inquiry whilst the others together with the plainer sorts appreciated Rs. 10/- per kg on average. Corresponding BOPF’s gained Rs. 10-40/- per kg. However, lighter liquoring teas were neglected. Nuwara Eliya’s were sharply lower following quality. Uva/Udapussellawa BOP/BOPF’s gained Rs. 10-20/- per kg. High and Medium Grown CTC teas were often Rs. 10-20/- per kg dearer. Low Grown BP1’s were Rs. 10-20/- per kg lower whilst the corresponding PF1’s gained Rs. 20-30/- per kg. Liquoring leafy teas met with lukewarm demand and sold at irregular rates following airmail inquiry. Consequently, prices for these teas ranged between Rs. 450 – 800/- per kg.

Majority of Off Grades on offer gained Rs. 10-20/- per kg whilst Dust varieties witnessed a firm to dearer trend.

Indeed an encouraging sale for the High Grown small leaf teas.

Low Growns comprised of approximately 2.1M/kgs in the Leafy/ Tippy catalogues, a slightly smaller volume compared to the preceding sale. In the Leafy catalogue select best OP1/BOP1’s were firm to irregularly dearer. Others however gained Rs.10-20/- per kg. OP/OPA’s too were fully firm to Rs.10/- per kg dearer. Barring the bold PEK’s which were irregular all other PEK/PEK1’s too were fully firm to irregularly dearer. In the Tippy catalogue too FBOP’s together with FF1’s gained Rs.10-20/- per kg. At the lower end too prices gained particularly in respect of the cleaner types. In the Premium catalogue too, a selection of better teas gained whilst others were fully firm to irregularly dearer. At this week’s sale shippers to Dubai, CIS, Turkey, Saudi Arabia, Iraq together with Kuwait were active.

Sri Lanka market update ASPI close up 0.55-pct, net foreign inflow Rs.92.4Mn

ASPI closed at 6,423.13, up 35.28 points or 0.55 percent with gains in index heavy stock like John Kells Holdings and Ceylon Tobacco Company, brokers said. The day’s turnover was 577 million rupees with 94 stocks making gains and 49 ending negative. Over 2.1 million shares of Asiri Hospitals was traded during the day with the stock closing at 26.50 rupees, up 0.60 rupees. Top contributory counters towards the day’s turnover were ACL Cables 81.5million rupees , John Keells Holdings (Voting) 81.3million rupees. Foreign purchases amounted to LKR 173.8mn (USD 1,197.7k), whilst foreign sales amounted to 81.3 million rupees. This resulted in a net foreign inflow of 92.4 million rupees being recorded at the end of the day’s trading. Apr 20, 2016 04.30 p.m

Asian stocks were trading up on Wednesday at a four-month high boosted U.S. equities. Nine of the 10 industry groups on the MSCI Asia Pacific Index gained, led by raw-materials producers, media reports said.The Japan’s Topix index climbed 0.7 percent while benchmarks in Australia and South Korea advanced 0.3 percent. However, Hong Kong’s Hang Seng Index lost 0.5 percent and the Shanghai Composite Index was little changed. Apr 20, 2016 07.30 a.m

In oil – Oil fell as much as 2.2 percent after Kuwait workers said they would end a strike that disrupted output in OPEC’s fourth-largest producer, a feregin media report said. “Crude oil slipped 1.8 percent to $40.34 a barrel in New York, having gained 3.3 percent on Tuesday amid a three-day labor strike that reduced Kuwait’s output by as much as 1.7 million barrels a day.” Brent crude lost 58 cents to $43.44 a barrel. Apr 20, 2016 7.30 a.m

Tuesday, April 19, 2016

Sri Lanka's President opposes planned VAT hike

Apr 19, 2016 (LBO) – Sri Lanka’s President Maithripala Sirisena, in a public address on Monday, said he would not support tax increases that burden the people.

The Value Added Tax (VAT) rate is scheduled to be increased to 15 percent from May 2nd, according to the Finance Ministry, and will include the telecommunications sector.

The new government is people friendly, Sirisena pointed out, speaking to a gathering in Polonnaruwa.

Sri Lanka is currently in talks with the IMF for a 36-month facility of at least one billion dollars to support the island’s foreign reserves. During these discussions the IMF has rightly pointed out that fiscal consolidation is necesssary.

State Minister of National Poicies and Economic Affairs Niroshan Perera told reporters on Monday that the plan to increase the VAT rate was not due to pressure by the IMF.

“There is no IMF pressure, Sri Lanka makes decisions as a sovereign nation,” he said.

“If there is a challenge we must take steps to address it. Our debt burden is higher than expected, and that is why this decision is being taken,” he added.

Perera said: “We expect that, within a short period of time and with a strengthened economy, we can return concessions to the people.”

Sri Lanka market update ASPI trading up at 0.1-pct, Banking & finance sector up

ASPI trading at 6,391.03, up 8.72 points or 0.14 percent with gains in some Banks and Finance sector stocks, brokers said. Gains were seen on Commercial bank, Seylan bank and Commercial Leasing. Active trading was also seen in Ceylon Tobacco and Dialog Axaita. Turnover is at 150 million rupees.up

Monday, April 18, 2016

Central Bank sees monetary policy stance as appropriate

Apr 18, 2016 (LBO) – Sri Lanka’s Central Bank, in response to an opinion column, states that its monetary policy stance holding interest rates unchanged on March 29 was appropriate.

WA Wijewardena, a former deputy governor, in an article in the Daily FT alleged that the Monetary Board should have tightened monetary policy “based on the logical economic choice which the Board would have made to lift the economy out of the prevailing foreign exchange crisis.”

But the Central Bank’s response is that it has tightened monetary policy, first by raising the Statutory Reserve Requirement (SRR) in January 2016, followed by increasing the main policy interest rates by 50 basis points in February 2016.

This was in addition to the “imposition of a loan to value (LTV) ratio on motor vehicle related credit facilities, the allowing of the exchange rate to depreciate, and the changes introduced to vehicle import duties,” during the last quarter, the statement said.

“The decision of the CBSL in March 2016 to maintain the monetary policy stance unchanged after two consecutive months of tightening is a logical step in allowing sufficient time for the market to respond to monetary policy actions while allowing room for the already increased market interest rates to stabilise.”

Crucially, the Central Bank believes interest rate tightening alone would be insufficient to address external sector pressures.

“In the midst of the balance of payments crisis in 2000/01, the CBSL unsuccessfully attempted to prevent the exchange rate from depreciating by raising policy interest rates. Specifically, the Reverse Repurchase rate of the CBSL was increased from 13.48 percent in June 2000 to 23 percent by January 2001.”

“In addition to the free-fall WA has discussed in his article, the end result was the disastrous growth outcome in 2001, where the country registered its only negative annual real GDP growth rate since independence.”

The CBSL is of the view that a blend of policy measures, including fiscal and monetary policy measures, is more appropriate, rather than solely relying on interest rates to correct the imbalances in the external sector.

In the meantime, the CBSL will continue to emphasise the need to implement necessary structural reforms to strengthen the fiscal and external sectors on a sustainable basis, it said.

This month, Sri Lanka may announce a support facility from the IMF after a decline in foreign reserves due to debt service payments and the supply of foreign exchange to cover foreign investor sales of government bonds.

A key factor is leading the market rather than following it, and the Central Bank’s decision to increase policy interest rates by 50 basis points in February 2016 surprised the market, the statement added.

Sri Lanka among Asia's top 10 FDI hotspots: US think tank

Apr 18, 2016 (LBO) – IHS Global Insight, a United States-based think tank, has listed Sri Lanka as one of the top 10 foreign direct investment (FDI) destinations in Asia.

The other Southeast Asian countries projected to be the FDI hot spots in the region, are China, India, Bangladesh, Indonesia, Vietnam, Myanmar, Malaysia, The Philippines and Thailand.

“Over the next decade, Asia Pacific is forecast to be the fastest growing region of the global economy and the region that offers the biggest potential gains for foreign direct investment,” IHS said in a release.

“A key source of strength for Asia Pacific is the rapidly growing size of the economic region, which now accounts for around one-third of world GDP, generating strong intra-regional trade and investment flows.”

Amongst the South Asian economies, Sri Lanka and Bangladesh are expected to show rapid growth over the next decade, it said.

According to the think tank, the new Sri Lankan government has embarked on sweeping economic reforms, with its first budget containing considerable economic liberalization measures.

The Sri Lankan economy is projected to grow at an average annual pace of 5.6 percent a year over 2016-2020 while key growth industries are expected to include logistics, tourism, agricultural products, IT-BPO industries and construction.

Sri Lanka market update ASPI close at 0.3-pct

ASPI closed at 6,382.31, down 19.01 points or 0.30 percent with losses in some finance and banking sector stocks like Commercial Leasing Company and Lanka Orix Leasing and DFCC Bank,brokers said. Turnover was 674 million rupees.Top contributory counters towards the day’s turnover were John Keells Holdings (Voting) LKR 153.9mn (USD 1,063.2k, +0.8%), Hatton National Bank (Voting) LKR 105.9mn (USD 731.2k, -0.2%), LB Finance LKR 83.4mn (USD 576.1k, -0.6%) Tess Agro (Voting) LKR 63.2 (USD 436.3k, +6.3%), Namal Acuity Value Fund LKR 60.0mn (USD 414.7k, -3.3%). · Foreign purchases amounted to LKR 48.1mn (USD 332.1k), whilst foreign sales amounted to LKR 269.5mn (USD 1,862.0k). This resulted in a net foreign outflow of LKR 221.5mn being recorded at the end of the day’s trading. · Market capitalization stood at LKR 2,719.5bn. YTD performance of the ASPI is -7.4%. (updated)

Asian stocks kicked-off the week on a bearish note, as failed Doha meeting to reach an oil output freeze deal combined weighed heavily on the market’s. Negotiations in Doha over the first global oil deal failed to reach an agreement on Sunday. The Japanese benchmark Nikkei dropped 3.03 percent to 16,342 points, while USD/JPY sinks -0.78 percent to 107.90. The Australian markets – The benchmark S&P/ASX 200 index drops -0.25% to 5,144. The Chinese equities also followed suit and kept losses, with the benchmark Shanghai Composite index dropping 1.39 percent, the CSI300 index slides -1.15 percent, while Hong Kong’s Hang Seng lost 0.92 percemt to trade around 21,140 levels. Apr 18, 2016 08.30 a.m

Brent crude futures tumbled about 4.6 percent to 41.10 US dollars while U.S. crude slid about 5.2 percent to 38.26 US dollars. Apr 18, 2016 08.30 a.m

PIRAMAL GLASS - DIVIDEND ANNOUNCEMENT

PIRAMAL GLASS CEYLON PLC
Company ID: - GLAS
Date of Announcement: - 18.Apr.2016
Rate of Dividend: - Rs. 0.35 per share /First & Final Dividend
Financial Year: - 2015/2016
Shareholder Approval: - Required
AGM: - 30.Jun.2016
XD: - 01.Jul.2016
Payment: - 12.Jul.2016
Share Transfer Book Open

Tuesday, April 12, 2016

Three member committee to streamline Chinese projects in Sri Lanka

Apr 12, 2016 (LBO) – Sri Lanka’s Prime Minister Ranil Wickremesinghe has pledged to China to appoint a three-member high powered committee to streamline and expedite Chinese projects and investments in Sri Lanka.

Special Assignments Minister Dr. Sarath Amunugama, Development Strategies and International Trade Minister Malik Samarawickrama and Economic Affairs Ministry Consultant R.Paskaralingam will be appointed to the committee.

Prime Minister Ranil Wickremesinghe met Chinese President Xi Jinping and premier Li Keqiang last week.

During the discussions Chinese President has said that Chinese government only considers policies and people of Sri Lanka when supporting and not political parties or individuals.

Sri Lanka's Hilton gets new board

Apr 12, 2016 (LBO) – Krishantha Cooray has been appointed Chairman and Non Executive Director of Hotel Developers Lanka (Hilton Hotel), a statement said.

Following Non-Executive Directors too have been appointed: Athula Senanayake, Tehani S. Mathew, Dinouk Colombage, Sonali Liyanamana, Dhanushka R. Samarasinghe and M.Shezmin Manzoor, according to a filing to the Stock Exchange.

Sri Lanka economy adjusting, may receive USD1-1.25 bln from IMF: CB

Highlights from press conference:

* GDP grew 4.8 pct in 2015, vs 4.9 pct 2014
* Sri Lanka may receive around USD 1-1.25 billion IMF support: Governor
* USD500 mln renminbi bonds may be issued in coming months: Governor
* Worker remittances fell 0.5 pct to USD6.9 bln in 2015
* Official reserves at USD6.2 bln end of March

Apr 12, 2016 (LBO) – Sri Lanka’s Central Bank said the economy grew at 4.8 percent in 2015 versus 4.9 percent in 2014, with growth this year expected in the range of 5-5.5 percent.

Governor Arjuna Mahendran said monetary adjustments to the economy last year were having a positive impact. He was speaking at a press conference on the state of the economy.

“Imports are showing signs of plateauing,” he said, referring to monetary policy efforts to discourage imports.

Commenting on discussions with the IMF, Mahendran said he was hopeful around 1 billion to 1.25 billion dollars support may be on the cards.

The IMF said on Monday Sri Lanka had made significant progress towards concluding an IMF facility, and further discussions would be held on the sidelines of Spring Meetings in Washington D.C. this week.

“We hope we can conclude this in the next two weeks,” said Mahendran.

In terms of interest rates, the IMF has suggested that further credit tightening would support the economy, but Mahendran said that might not be necessary.

“I would say that that is not necessary if the economy continues to achieve a soft landing, if the economy goes according to plan. The Central Bank however reserves the right to increase rates,” he said.

Sri Lanka has sought IMF support to tide over an outflow of foreign investments from the bond market due to external factors as well as irresponsible government finances.

Mahendran said Sri Lanka needs to raise around 2.5 billion dollars for its government funding requirement this year, and would look at Chinese renminbi bonds as well as dollar bonds in coming months.

The renminbi bonds would initially target venture capital investors, and this was the beginning in establishing a long term benchmark for the island, he said.

Commenting on the rupee, Mahendran said pressure on the currency was easing.

“If you look at the real effective exchange, rupee at 150 was not on the cards. I think the rupee is settling.”

Sri Lanka market update ASPI close up 1.2-pct

ASPI closed at 6,353.20, up 77.58 points 1.24 percent with gains in John Keels Holdings and Hemas Holdings, brikers said. S&P SL20 index moved up 35.84 points for the day. Interest was evident on banks during the day, with Seylan Bank securing the top slot turnover wise with a contribution of 26 percent. The transaction was aided by a single negotiated deal on the stock at LKR 93. Price gainers outnumbered price losers 174 to 14. Foreigners were net sellers for the day posting a net foreign outflow of LKR 31mn.

ASPI trading at 6,292.49, up16.87 points or 0.27 percent.08

RE-IMPOSITION OF SHARE TRANSACTION LEVY (STL)

Apr 12, 2016 (LBO) – Sri Lanka will re-impose the share transaction levy at the rate of 0.3 percent from 15 April, 2016, the Colombo Stock Exchange said.

The levy would be charged from every buyer and seller on the turnover of every share trading transaction done on the CSE.

The share transaction levy was removed from January 1, 2016olombo.

http://www.cse.lk/cmt/upload_cse_announcements/5241460446832_.pdf

Monday, April 11, 2016

Ceylon Dollar Bond Fund records 8.82 percent dollar return

Apr 11, 2016 (LBO) – The Ceylon Dollar Bond Fund (CDBF) that invests in Sri Lanka Dollar Sovereign Bonds and Bank Bonds has recorded an 8.82 percent per annum annualized return (10.60 percent in Rupee terms) during the first quarter of 2016, its managers said.

The dollar denominated fund in Sri Lanka is managed by Ceylon Asset Management, while Deutsche Bank is Trustee and Custodian of the fund. The fund has been awarded a B+ rating by Fitch Ratings that mirrors Sri Lanka’s country dollar rating.

“The tax exempted Unit Trust is operated out of Colombo and Singapore. The fund is open to investment exclusively for Sri Lankans living or working overseas, BOI companies and all foreign nationals and companies. The fund is open to retail investors from US$ 1,000 upwards, as well as institutional investors who can invest via Singapore or Colombo,” a statement said.

“The open-ended fund structure enables investor’s easy exit whenever they please, without being locked-in for a fixed deposit. The fund has invested in dollar denominated Sovereign Bonds issued by the Government of Sri Lanka, and Dollar Bonds issued by Bank of Ceylon, National Savings Bank and DFCC Bank.”

Ceylon Asset Management’s Economic Advisor and Director, Rainer Michael Preiss in Singapore says “The CDBF has been able to capitalize on high interest rates available in Sri Lankan bonds following the US Federal Reserve raising interest rates last December, and Sri Lanka’s rating downgrade.”

Preiss went on to note that as Sri Lanka’s economy gains momentum, the high interest rates will decline as the country’s rating is potentially upgraded once again.

“The Fed is unlikely to raise interest rates again in the near future. Therefore, investors should take advantage of the current interest rate scenario and a strong US dollar by investing in the CDBF sooner than later.”

“The returns on the Ceylon Dollar Bonds are attractive, compared to regional and international fund returns” Preiss said, upbeat on Sri Lankan government plans to increasingly engage in international Capital Markets. “The fund will surely attract foreign investor capital into Sri Lanka bonds,” he said.

Managing Director of Ceylon Asset Management, Dulindra Fernando says “the Ceylon Dollar Bond Fund has the potential to begin what Non-Resident Indians have done for Indian capital markets”.

“We believe it is time for Sri Lankan Diaspora as well as Lankans living abroad, to begin investing in Sri Lankan capital markets due to attractive valuations available,” said Fernando.

The Ceylon Dollar Bond Fund has been approved for investment by the Central Bank of Sri Lanka, while it is the first dollar denominated Unit Trust licensed by the Securities and Exchange Commission of Sri Lanka. Ceylon Asset Management is an associate company of Sri Lanka Insurance Corporation Ltd and Commercial Credit & Finance PLC.

Sri Lanka PM wants equity swap for USD8 bln debt to China

Apr 11, 2016 (LBO) – Sri Lanka’s Prime Minister Ranil Wickremesinghe has asked China to swap part of the 8 billion dollars it owes the nation into equity in infrastructure projects, and has offered to sell stakes in Sri Lankan companies.

Wickremesinghe spoke to reporters in Beijing, China on Saturday, media report said.

“We’ve been talking with some companies and also the government of China about the possibility of some infrastructure projects becoming public-private partnerships, in which part of the debt will become equity held by the Chinese companies,” he said.

International trade minister Malik Samarawickrama said Sri Lanka would also like additional funds from China, though they had not asked for a specific amount.

“We want to reduce the current debt by inviting Chinese companies, Chinese investors, to look at some of the enterprises in Sri Lanka, the state-owned enterprises, with a view to taking at least part of that equity over,” he said.

“Then we can reduce the current debt that we have and open up the opportunity for us to take more funds from Chinese banks.”

State-owned China Communications Construction Company (CCCC) sought compensation from the government for around 125 million dollars for delays in starting a 1.4 billion dollar Colombo Port City project last year, after the government called for a review.

“The company has asked for additional compensation in view of the fact they say there has been a delay,” Wickremesinghe said. “But I think we can talk and settle it.”

Prime Minister said Port City is not going to be a Sri Lanka- China venture. “It’s an opportunity for everyone to make money. That’s what we do in Asia.”

He said in addition to China and Sri Lanka, Singaporeans and many Indians have also shown interest.

“Already some of the Indian businesses have told me they are interested in coming in to port city. It will be a joint venture, there will be the Chinese companies and Sri Lankan companies, and we want to put 40 percent out into the Stock market because we intend to give Indian companies the opportunity to invest in this Sri Lankan venture,” Wickremesinghe said.

“I will be going to India, Bangladesh, Middle East, East Africa, South East Asia and ask everyone to join in including Japan and China. We want to make this an Asian area. Where Asians can deal in the Indian Ocean and even go to the European Union.”

IMF supports negative policy rates to spur economies

Apr 11, 2016 (LBO) – IMF supports negative policy rates by some central banks given the significant risks to the outlook for growth and inflation, a blog by IMF staffers states.

Six central banks, including the European Central Bank and the Bank of Japan, have taken the unprecedented step to spur their economies.

“Although the experience with negative nominal interest rates is limited, we tentatively conclude that overall they help deliver additional monetary stimulus and easier financial conditions,” three top officials at the International Monetary Fund wrote in a blog.

It comes ahead of the IMF’s annual Spring Meetings this week in Washington.

Whilst admitting such bold police are unprecedented and could have limited benefits, and it’s effect varies from country to country, negative rates aim to encourage the private sector to spend more and support price stability by further easing monetary and financial conditions.

An analysis by three IMF staffers – José Viñals, Simon Gray, and Kelly Eckhold – has led to a tentative conclusion that overall negative policy rates help to deliver additional monetary stimulus and easier financial conditions, which support demand and price stability .

IMF observes that real negative rates prevalent in number of countries in the past but the nominal negative rate is a newer phenomenon.

Six central banks – Danish National Bank, European Central Bank, Swiss National Bank, Swedish Riksbank, Bank of Japan and National Bank of Hungary – so far have introduced negative rates that apply to some amount of the cash balances commercial banks hold with the central bank.

“Moving policy rates negative aims to lower money market rates and push down the yield curve, and boost portfolio substitution effects, thereby increasing the potency of monetary policy. In fact, negative deposit rates tend to have more bite when a large amount of commercial banks’ reserves are priced at the negative rate,” the researchers stated.

As for the unintended consequences the commentators have focused on the potential negative impact of negative rates on bank profitability. Banks appear to have been unwilling or unable to reduce retail deposit rates to negative territory, and their net interest margins may have been squeezed.

The commentators also warned against over reliance on both conventional and unconventional monetary policy toolkit.

The researchers state in their paper, “Monetary policy cannot be the only game in town. It should be part of a balanced and potent approach that also includes well-designed structural reforms, growth-friendly and supportive fiscal policies, and prudential policies that enhance the resilience of the financial sector.”

Sri Lanka market update ASPI close flat

ASPI closed flat at 6,275.62 with a turnover of 815 million rupees. JKH, aided by two block deals, recorded the highest turnover for the day, contributing 43percemt to the total market turnover. Foreign investors aligned to the buying side following seven sessions of net foreign sales, recording a net foreign inflow of LKR 76mn. Negative contributors outnumbered the positive contributors by 70 to 62. ASPI trading down at 6,266.17, down 9.45 points or 0.16 percent with losses in John Keells Holdings and Richard Peiris , brokers said. Apr 11, 2016 10.30 a.m

Asian stocks fell, ahead of Chinese data while Japanese shares also retreated. The MSCI Asia Pacific Index dropped 0.4 percent while global stocks fell last week amid concern over the potency of central bank stimulus efforts and a selloff in Japanese equities.Japan’s Topix index declined 1 percent after a report showed machine orders dropped in February. South Korea’s Kospi index slipped 0.1 percent. Australia’s S&P/ASX 200 Index was little changed and New Zealand’s S&P/NZX 50 Index added less than 0.1 per cent. Hong Kong’s Hang Seng Index were down 0.2 per cent. Apr 11, 2016 08.30 a.m

Sri Lanka makes progress towards IMF facility: IMF mission

Apr 11, 2016 (LBO) – Sri Lanka has made significant progress toward reaching an International Monetary Fund (IMF) support facility, which could get approval within the next two weeks, an IMF review mission said concluding its visit.

A staff team led by Todd Schneider visited Colombo during March 31-April 11 to hold 2016 Article IV consultation discussions and to discuss the authorities’ request for a fund supported arrangement.

“The mission made significant progress toward a staff level agreement with the government on an economic program that could be supported by a 36-month Extended Fund Facility (EFF),” a statement said.

“Program discussions will continue in Washington DC on the margins of the Spring Meetings of the IMF and World Bank, with the objective of concluding a staff-level agreement with the authorities, subject to approval by IMF Management and the Executive Board, in the next two weeks.”

Schneider said macroeconomic performance in 2015 reflected a mix-of positive underlying growth momentum, the impact of domestic policies, and an increasingly difficult external environment.

The fiscal deficit expanded, public debt increased, while the balance of payments position deteriorated despite an improvement in the terms of trade. Real GDP growth in 2016 is expected to remain around 5 percent and inflation in the low single digits, he said.

“Over the medium term, there is potential for growth to rise closer to Sri Lanka’s estimated
potential output level, but prospects will hinge on a policy upgrade in the near term and removing bottlenecks to trade and investment,” he said.

“The authorities’ proposed economic program aims to achieve high and sustained levels of inclusive economic growth, restore discipline to macroeconomic and financial policies, and rebuild fiscal and reserve buffers.”

“Key objectives underlying the reform agenda include: (i) improving revenue administration and tax policy; (ii) strengthening public financial management; (iii) state enterprise reforms; and, iv) structural reforms to enable a more outward-looking economy, deepen foreign exchange markets, and strengthen financial sector supervision.”

“A durable reduction of the fiscal deficit and public debt through a growth-friendly emphasis on revenue generation is the main priority for fiscal policy. In this context, the mission welcomed the cabinet’s decision to reduce the 2016 fiscal deficit to 5.4 percent of GDP, and advised to move quickly on tax and expenditure policy decisions endorsed by the Cabinet.”

“Other near-term steps include a clear strategy to define and address outstanding obligations of state enterprises, start broadening the tax base by reducing tax exemptions, and introduction of a new Inland Revenue Act. The medium-term revenue effort will be based on further reform of tax and expenditure policies, supported by modernizing revenue administration and public financial management (including implementation of key IT systems (RAMIS, ITMIS, and ASYCUDA ++).

The mission welcomed the recent tightening of monetary policy given the steady increase in core inflation and high private credit growth, the statement said.

“Given the long lags in monetary transmission and continued increase in core inflation and private credit growth, however, the Central Bank of Sri Lanka (CBSL) should be prepared to tighten policies further if these trends continue. The mission also recommends the CBSL take active steps to rebuild non-borrowed reserve buffers.”

The financial system appears well capitalized and liquid, but the authorities should nevertheless remain vigilant to the risk of a potential rise in non-performing loans, it said.

The mission welcomed steps toward supervision on a consolidated basis and shifting to Basel III and concurs with continued efforts needed to strengthen the legal framework for crisis preparedness and resolution.

“Achieving medium-term growth and reserve objectives and building greater resilience to external shocks will require a renewed effort toward greater integration into regional and global supply chains, higher levels of foreign direct investment, and enhancing prospects for private sector investment. To boost trade and private sector development, the mission recommends addressing protectionism by reviewing tariffs and para-tariffs.”

The mission welcomed ongoing efforts to enhance competitiveness through other means, including removal of the EU fisheries import ban, and the reinstatement of Generalized System of Preferences Plus status.

“Further steps are needed to increase the efficiency of trade facilitation (including through full implementation of use of electronic customs documentation), remove barriers to foreign investment entry and establishment, enhance access to finance, and strengthen financial market infrastructure.”

The mission met with Prime Minister Wickremesinghe, Finance Minister Karunanayake, Minister of Development Strategies and International Trade Samarawickrame, Governor of the Central Bank of Sri Lanka Mahendran, other public officials, and representatives of the business community, civil society and international partners.

OVERSEAS REALTY (CEYLON) - RIGHTS ISSUE

http://www.cse.lk/cmt/upload_cse_announcements/1911460371865_.pdf

Friday, April 8, 2016

Sri Lanka's govt. sets standard for appointing boards of SOE's

Apr 08, 2016 (LBO) – Sri Lanka’s cabinet has decided to approve a set criteria for consideration for appointing of chairmen and board of directors of State Owned Enterprises in the island.

“Lack of a clear-cut policy directives with regard to management of Public Enterprises, failure to delegate decision-making to senior management, absence in commercial consideration in business decisions, political interference in appointment if staff have been identified as some of the key constraints to improve performance of Public Enterprises,” a statement on approved cabinet decisions said.

“Hence, it is a timely need to adopt a formal and transparent method in such appointments.”

The proposal was made by Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs.

The new criteria will adhere to an individual’s professional and management experience, maximum age limits, provisions for prevention of conflicts of interest and disqualifications.

Sri Lanka market update ASPI close up 0.7-pct, T/O 746 Mn

ASPI close up 6,275.62, up 45.43 points or 0.73 percent with gains seen in Commercial Bank, Carson and Cumberbatch and Distileries Company, brokers said. Turnover was recorded at 764 million rupees, with 111 stocks ending positive and 53 negative. Apr 08, 2016 03.30 p.m

Asian stocks were down on Friday following a dip in the US markets. The MSCI Asia Pacific Index was down 0.8 percent while Japan’s Topix lost as much as 1.7 percent . Hong Kong’s Hang Seng Index retreated 0.8 percent. Australia’s S&P/ASX 200 Index down 0.4 percent. The Kospi index in Seoul dropped 0.7 percent, while New Zealand’s S&P/NZX 50 Index was down 0.5 percent. Apr 08 09.00 a.m

China grants 500mn Yuan symbolizing Sino-Lanka friendship

Apr 08, 2016 (LBO) – Chinese Premier Li Keqiang has pledged a grant of 500 million Yuan to Sri Lanka symbolizing Sino-Lanka friendship, the Prime Minister’s office said.

Chinese Premier has told the Sri Lankan delegation that the Free Trade Agreement is expected to be signed soon reducing the trade gap between the two countries.

Keqiang has also pledged to support the development of the second stage of Hambanthota Port.

Following an invitation extended by Sri Lanka’s PM, the Chinese Premier is expected to visit Sri Lanka next year.

In addition to bilateral discussions held with the Chinese Premier, several agreements were also signed.

– Minister Malik Samarawickrama signed an MoU between the Ministry of Commerce of China and the Ministry of National Policy and Economic Development on fully promoting investment, economic and technical corporation between the two countries.

– Foreign Minister Managala Samaraweera signed the treaty between China and Sri Lanka on extradition.

– Governor, Central Bank Arjuna Mahendran signed the Comprehensive Corporation agreement between China Development Bank and the Monetary Board of the Central Bank.

– Prof Sirimali Fernando, on behalf of National Science Foundation, signed an agreement with the China National Science Foundation for research funding.

– Karunasena Kodituwakku, Sri Lankan Ambassador to China, signed an exchange of letter for a kidney mobile screening vehicle project between China and Sri Lanka.

THREE ACRE FARMS - DIVIDEND ANNOUNCEMENTS

THREE ACRE FARMS PLC
Company ID: - TAFL
Date of Announcement: - 08.Apr.2016
Rate of Dividend: - Rs. 2.10 per share / First and Final Dividend
Financial Year: - 2015
Shareholder Approval: - Required
AGM: - 19.May.2016
XD: - 20.May.2016
Payment: - 30.May.2016
Share Transfer Book Open

CEYLON GRAIN ELEVATORS - DIVIDEND ANNOUNCEMENTS

CEYLON GRAIN ELEVATORS PLC
Company ID: - GRAN
Date of Announcement: - 08.Apr.2016
Rate of Dividend: - Rs. 1.10 per share / First and Final Dividend
Financial Year: - 2015
Shareholder Approval: - Required
AGM: - 19.May.2016
XD: - 20.May.2016
Payment: - 30.May.2016
Share Transfer Book Open

Thursday, April 7, 2016

Sri Lanka market update ASPI close up 1.0-pct

ASPI close at 6,230.19, up 65.08 points or 1.06 percent with gains in John Keells Holdings and Commercial Bank, brokers said. Total turnover for the day stood at 804 million rupees. Top contributory counters towards the day’s turnover were People’s Leasing & Finance 162.2 million rupees, DFCC Bank 127.8 million rupees, AEL Engineering 81.4 million rupees and Hatton National Bank (Voting) 52.6 million rupees. Foreign purchases amounted to 71.7 million rupees whilst foreign saless amounted to 269.2 million rupees and this resulted in a net foreign outflow of 197.4 million rupees being recorded at the end of the day’s trading. Apr 07, 2016 3.30 p.m

ASPI trading at 6,182.05, up 16.94 points or 0.27 percent with gains in Telcos, brokers said. Apr 07, 2016 10.15 a.m

Asia stocks were up on Thursday, after U.S. markets showed gains after a positive Fed meeting. Australia’s ASX 200 was up 0.48 percent, while in South Korea Kospi was also trading up 0.26 percent. Japan’s benchmark Nikkei 225 however wavered in early trade before trading up 0.72 percent. China’s Shanghai was don at 0.68 percent and Hong Kong’s Hang Seng Index was marginally higher at 0.03 percent. Apr 07, 2016 08.15 a.m

In Oil – U.S Crude futures was up 5.2 percent at $37.75 a barrel, while global benchmark Brent added $1.97 to $39.84. Apr 07, 2016 08.15 a.m

Prime Minister and delegation in China to enhance bilateral relations

April 07, 2016 (LBO) – Sri Lankan Prime Minister Ranil Wickremesinghe left for an official visit to China on Wednesday, the Foreign Ministry said.

This is Wickremesinghe’s first visit as the prime minister to China since the government of President Maithripala Sirisena was formed in January last year.

On the April 6-9 visit, he will be holding high-level discussions with Chinese leaders to advance bilateral relations to a new level, his office said.

“The Sri Lankan PM will be negotiating the 125 million US dollar penalty that a Chinese state firm is seeking for suspending work on a big port development project,” a media report said.

The island new government elected in January 2015 ordered a review of the 1.4 billion US dollar Colombo port city project last year, citing irregularities in the award of the contract to state-owned China Communication Construction Company (CCCC) by a previous government.

However last month, the government gave the go ahead to resume work on the port city.

Wickremesinghe’s delegation includes Foreign Minister Mangala Samaraweera and Minister of Development Strategies & International Trade Malik Samarawickrema among others.

Sri Lanka to sign MOU with China to enhance market liquidity

Apr 07, 2016 (LBO) – Sri Lanka’s Prime Minister Ranil Wickremesinghe who is currently on an official visit to China is to sign an MOU in view of maintaining financial stability of the country by enhancing liquidity of the market.

The cabinet nod has been given to the above proposal yesterday at the weekly cabinet meeting.

Prime Minister revealed Parliament recently that Sri Lanka is currently looking at one billion US dollars worth currency swap agreement with China.

Sri Lanka received a 700 million US dollars currency swap from the Indian Central Bank earlier last month.

The expected MOU will also cover the development of agriculture and infrastructure in Sri Lanka, the cabinet said.

We don't want to see companies getting delisted: Securities Regulator

Apr 07, 2016 (LBO) – Sri Lanka’s securities regulator has invited listed companies to send their suggestions on the minimum public float rule as they seem to be struggling meet the rule.

Director General of Securities and Exchange Commission Vajira Wijegunawardane speaking at a forum on the minimum public float said they are flexible in terms of their guidelines.

“We actually don’t want to see companies getting de-listed. The commission is flexible in terms of guidelines,” Wijegunawardane said.

“But we have to understand that these rules are there for a reason. So we would like companies to comply and in terms of timelines, companies might encounter difficulties,”

“So if there is any issue or proposal that you want the SEC to consider please let us know in writing so that we have time to take recourse.”

Wijegunawardane further stated that if a company is willing to comply with guidelines, the commission may look at giving an extension to those companies.

“But if the company is not willing to comply unfortunately it would lead to a de-listing.”

Currently the Colombo Stock Exchange is transferring non-compliant listed companies to its defaults board.

But the ultimate repercussion would be de-listing though the regulator is currently giving a further 9 months extension period on struggling listed companies on a case by case basis.

Speaking at the forum SEC Chairman Thilak Karunaratne said Sri Lanka need a regulation on minimum public holding to compete with other countries.

“20 percent rule for me is quite reasonable. If an extension is needed we can look at it,” Karunaratne said.

“But we are talking about bringing in foreign investments. In fact all the countries are looking for foreign investments. But we have to show something special to foreign investors to attract.”

He added that the government has given them some breathing space by delaying the capital gains tax.

PROPERTY DEVELOPMENT - DIVIDEND ANNOUNCEMENTS

PROPERTY DEVELOPMENT PLC
Company ID: - PDL
Date of Announcement: - 07.Apr.2016
Rate of Dividend: - Rs. 3.00 per share /First & Final Dividend
Financial Year: - 2015
Shareholder Approval: - Required
AGM: - 30.May.2016
XD: - 31.May.2016
Payment: - 08.Jun.2016
Share Transfer Book Open

SMB LEASING - DIVIDEND ANNOUNCEMENTS

SMB LEASING PLC
Company ID: - SEMB
Date of Announcement: - 07.Apr.2016
Rate of Dividend: - Rs. 0.02 per share (Voting & Non-Voting) Interim Dividend
Financial Year: - 2015
XD: - 20.Apr.2016
Payment: - 03.May.2016
Share Transfer Book Open

Wednesday, April 6, 2016

Sri Lanka govt approves compensation for Rathupaswala victims

Apr 06, 2016 (LBO) – President Maithripala Sirisena has given his approval to provide 4.68 million rupees as compensation for 33 victims of Rathupaswala incident, a statement said.

The President will present the compensation money to 24 persons, who are fully disabled or partially disabled or who are admitted to hospitals for treatment in the Gampaha Divisional Secretariat and 9 persons belongs to the Mahara Divisional Secretariat, on April 08.

During the last few weeks the President paid special attention on providing the justice to those who got injured in the incident in Rathupaswala with a committee headed by Secretary of Gampaha District appointed to provide recommendations.

The compensations were provided according to the recommendations of that committee.

The people of Rathupaswala in Gampaha were severely affected last year, as a result of pollutants released from a factory and people had to go to great lengths to resolve the problem, lives too were sacrificed.

Sri Lanka market update ASPI close up 0.1-pct

All Share Price Index gained 6.1 points to close at 6,165.1 while the S&P SL20 Index gained 1.3 points to close at 3,254.7 (+0.0%). Total turnover for the day stood at 616.4 million rupees and the volume traded for the day was 18,179 against the 12-month average daily volume of 43,085. ASPI gained marginally due to price increases in stocks such as Commercial Bank, Cargills Ceylon,Trans Asia Hotels, Commercial Credit and Finance and Commercial Leasing & Finance. Foreign purchases amounted to 188.3 million whilst foreign sales amounted to 379.2 million rupees.This resulted in a net foreign outflow of 191.0 million rupees being recorded at the end of the day’s trading.

ASPI trading at 6,156.86, lower 2.16 points or 0.04 percent, with some loses in Hemas Holdings and John Keells Holdings.

Asian stocks were trading mixed on Wednesday. The MSCI Asia Pacific Index fell less than 0.1 percent to 124.34 in early morning trade while Japan’s Topix index fluctuated as the yen traded near a 1 1/2-year high. South Korea’s Kospi index added 0.4 percent, while Australia’s S&P/ASX 200 Index rose 0.2 percent. Markets in China and Hong Kong have yet to start trading. Apr 06, 2016 07.15 a.m

In Oil – U.S. crude rebounded with contracts for May delivery up 2.5 percent on Wednesday trading at $36.74 per barrel. International Brent futures were up 1.7 percent at $38.50 a barrel. Apr 06, 2016 07.15 a.m

S&P and CSE Sector and Industry Group Indices launched

Apr 06, 2016 (LBO) – S&P Dow Jones Indices, one of the world’s leading index providers, and the Colombo Stock Exchange today jointly announced the launch of the S&P/CSE Sector and Industry Group Indices.

The comprehensive index series is designed to measure the performance of various sectors and industry groups within the Sri Lankan equity market, as defined by the Global Industry Classification Standard.

The S&P/CSE Sector and Industry Group Indices were developed based on the universe of common stocks listed on the CSE.

Featuring a transparent, rules-based methodology, all indices are weighted by their total market capitalization.

The index family includes the following sector indices, which are further divided into industry group indices.

· S&P/CSE Energy Sector Index
· S&P/CSE Materials Sector Index
· S&P/CSE Industrials Sector Index
· S&P/CSE Consumer Discretionary Sector Index
· S&P/CSE Consumer Staples Sector Index
· S&P/CSE Health Care Sector Index
· S&P/CSE Financials Sector Index
· S&P/CSE Information Technology Sector Index
· S&P/CSE Telecommunication Services Sector Index
· S&P/CSE Utilities Sector Index

“Sri Lanka is a unique economy with numerous opportunities left untapped and we have seen growing interest in Sri Lankan equities from both domestic and international investors in recent years”, said Alka Banerjee, Managing Director, Product Management at S&P Dow Jones Indices.

“With the launch of the S&P/CSE Sector and Industry Group Indices, we are proud to introduce to the investment community a comprehensive set of benchmarks that effectively measure Sri Lanka’s economy.”

Vajira Kulatilaka, Chairman of CSE, commented “We are excited to elevate the visibility of the Sri Lankan equity market through the launch of this benchmark series by leveraging S&P Dow Jones Indices’ expertise in index development and governance.”

“We are confident that the launch of the S&P/CSE Sector and Industry Group Indices will further increase the sophistication of the financial market in our country,” said Rajeeva Bandaranaike, CEO of CSE.

S&P DJI and CSE started their collaboration in 2012 when they jointly introduced the S&P Sri Lanka 20, an investible index comprised of the 20 largest and most liquid stocks listed on CSE.

The launch of this latest index series signifies the deepening relationship between the two parties and S&P DJI’s significant expansion in Sri Lanka.

Subscribe to: Posts (Atom)