Sunday, January 31, 2010


                                                                                                                  See Report on Plantations Horana Plantation mainly engage in the Business of Tea & Rubber. Very recently they have announced that they have plans to develop its first mini hydro plant and is developing its bungalows for tourism as well . (see report)

The company is 80% owned by Ceylon theatres group.

Horana has reported an improved profits for the nine months ending 31/12/2009 YOY as a result of the improved Tea prices & Rubber prices fetched  in the world market. This was clearly reflected in their last quarter profits.(Oct-Dec 09) .

Net assets per share was Rs 27.99 as at 31/12/2009 up from Rs 26.48 reported for the same period in 2008.
Horana share price was at Rs 25/- on 29/01/2010. There all time high price is Rs 46.25 .

--------------------- SUNDAY BUSINESS NEWS ARTICLES ------------------

                                                                                                     BUY PLANTATION STOCKS              

            SUNDAY TIMES

                  SUNDAY OBSERVER

                  Saturday, January 30, 2010


                  SECTOR           -     PLANTATIONS

                  SECTOR P.E.    -    12.50

                  MARKET P.E.   -    17.75

                  Plantation companies in the Colombo Stock Exchange are mostly undervalued at present. Specially if you take past couple of months, Plantation companies as a Sector substantially  under performed to the Overall market.

                  • High Cost of Sales [ Labour cost,Fertilizer cost. etc]
                  • Volatility in Commodity prices in the market.
                  • Unpredictable weather conditions.
                  • Increasing Oil prices in the world market paved the way to increase the demand for Natural Rubber Products & Palm Oil products.
                  • Commodity prices are on the rebound presently.
                  • Most of Plantation companies are diversified.
                  • Sector which is substantially under performed to the market.
                  • Most of other sectors in the Colombo Stock Market are over heated now.
                  • Best strategy is to move away from heated speculative counters & to invest in plantations.
                  • Most of the share prices of other companies in the Colombo Stock Market are @ their highest levels reported for the past 5 to 7 years. But not the Plantations.
                  There are 18 plantation companies listed in Colombo Stock Market up to now.

                  Main income generating crops are
                  • Tea
                  • Rubber
                  • 0il palm
                  Apart from these core income generating sectors, many of listed plantation companies have diversified their business interest to the following areas as well.
                   * Hydro power   * Tourism   * Forestry   *Investments   *Other cultivations  [Coconut, Perennial crops etc.]

                   Note - * December Companies +
                              * Profits including all other details of  HORANA & WATAWALA  Plantations were as at  31/12/09

                  BEST BETS IN THE MARKET
                  • Balangoda Plantation                                                                             
                  • Malwatte Plantation 
                  • Watawala Plantation
                  • Kotagala Plantation
                  • Namunukula
                  • Kegalle
                  • Kelani Valley
                  • Agalawatte
                  • Hapugastanne
                  • Maskeliya


                  Watawala plantations one of Sri lanka's top plantation company reported an impressive nine months profits as at 31/12/2009, despite the 40% wage hike over the period.
                  High tea prices, Rubber prices & High Palm oil prices in the world market contributed for the improved bottom line of the company.
                  The company is in a position to continue with the profitability in future as well through out diversification strategy, encompassing multiple crops, value addition,brand building etc.

                  The net assets per share as at 31/12/2009 reported Rs 77.90 as against Rs 67.74 reported for the same period in 2008.

                  Watawala share traded at Rs 120, its peak level in its history  at Colombo Stock Exchange on 29/01/2010.

                  We strongly believe that these type of improved profits can  expect from the other plantation companies as well in future.

                  Friday, January 29, 2010


                  We selected  following companies listed in the Colombo stock exchange which were represented top price gainers list for the past week (25/01/2010 to 28/01/2010) to give you a basic idea of the value of investing in shares at Colombo Stock Exchange, which was rated as Asia's best performing stock  market & World's second best performing stock market in year 2009.


                  Thursday, January 28, 2010


                  28/01/2010 - Colombo Stock Market gets the election heat today. It was down by more than 1.8% during  early hours [where some investors bought shares previously expecting a Govt change sold their stakes] & closed with a positive note up by 1.25% at the end. Today's market behavior was a very good lesson to the panicked investors who have no idea what so ever  about the political stability created after the Presidential elections in the Country.This was clearly mentioned by the Dr.Mark Mobius chairman Templeton Assets Management Ltd, who oversees 34 b.n. USD fund to the Bloomberg news wires. This was also published in SRI LANKA STOCK PICKS site today morning under the heading "President's re-election adds some degree of stability".

                  ASI was up 45.43 points to close at record high of 3636.41 surpassing its previous all-time high of 3610.74, hit on Tuesday.& Millanka index was closed at 4181.79 up by 5.84 points.

                  Colombo Stock Market has risen 7.4 percent so far this year after being one of the world's best-performing markets in 2009, jumping 125.2 percent.

                  Turnover for the day was Rs1.9 b.n.

                  Local buyers were active today.They purchased shares to the value of Rs 1.7 m.n. & sold Rs 1.3 m.n. worth of shares. Foreign purchases were at Rs160 m.n. & Foreign sales were at Rs 575 m.n. Net foreign out flow was Rs 415 m.n.

                  There were 85 gainers as against 52 negative contributors.

                     DIVIDEND ANNOUNCEMENTS

                     CROSSINGS FOR THE DAY

                       TOP FIVE GAINERS FOR THE DAY                             TOP FIVE LOSERS FOR THE DAY


                  A US $100 million project to produce the largest ever cement silos in the country commenced early this month in Colombo, according to officials.“About two weeks ago the construction of the plant at D.R. Wijewardena Mawatha, in Colombo for the joint venture between Lanka Cement Ltd. (LCL) and the UK based AML products Ltd began,” Sisira Paranagama, Chairman LCL told the Business Times.
                  He noted that production in this plant which is on a one acre land will commence by the end of the year, while the expected output for a month is 10,000 metric tones of silos. “This is only for the first stage. We plan to enhance the capacity in the medium term,” he added. Mr. Paranagama noted that the silos will especially be used for Uthuru Wasanthaya - the Northern development programme which aims to develop the North and the East.
                  “Road development, canals and bridge building will be concentrated at first (in the Northern development) with the initial production from this plant,” he said, explaining that this project will facilitate a large cost savings to businessmen in Colombo and the North.
                  “This is mainly because we can price this product at a concessionary rate. We will decide the price when the production begins, depending on the macro situation at the time, but it will be priced at a lower rate than the price (at the time),” he said.

                  source -


                                             COLOMBO STOCK EXCHANGE                                                               RUMORS     

                   SRI LANKA STOCK PICKS exclusive: Through this we have decided to convey the CSE Rumors for all of our visitors,which have many times found to be unknown to small investors or when they become  aware, prices of particular shares may have had increased substantially. Hence our simple effort is just to give you  / convey these rumors where most of top investors are well aware of. However please note that there is a high risk involved in share trading. We do not take responsibility for any lose or damage arising out of stated information in this post. You have to take your own decisions. (Do your own research, Do 
                  not follow others , Stick to fundamentals, Buy shares when other are selling & sell when others are buying.)


                  By Anusha Ondaatjie and Jay Shankar - Rajapaksa Has ‘Lot to Do’ to Lure Mobius After Sri Lanka Vote
                   Jan. 28 (Bloomberg) -- Sri Lankan President Mahinda Rajapaksa will need to use the platform of the biggest election victory in 16 years to heal the wounds left by a civil war and lure the investment he needs to rebuild the economy.

                  Rajapaksa won 58 percent of the vote in the Jan. 26 election, defeating his former army chief Sarath Fonseka. As troops ringed Fonseka’s downtown Colombo hotel and the opposition alleged voting irregularities, the president sought to woo the 40 percent of voters who backed his estranged rival. “I am everybody’s president and will be broadminded in carrying out my tasks,” Rajapaksa, 64, said.

                  As he plots a second term, the challenge remains to craft a political settlement for minority Tamils and rebuild a country blighted by 26 years of fighting that killed more than 100,000 people. Meeting pledges to build roads, railways and power plants may help speed the process, bringing jobs and economic growth to the island.

                  “It’s positive to hear that the incumbent will be re- elected because it adds some degree of stability,” said Mark Mobius, who oversees $34 billion in emerging markets funds as chairman of Templeton Asset Management Ltd. “We’re not rushing in” to the stock market on the back of the result, Mobius said. “There’s a lot to be done.”

                  Rajapaksa must find a way to triumph in a long battle against inflation that topped 20 percent in the first 10 months of 2008, while sustaining growth. His purse strings will be tight after the island negotiated a $2.6 billion bailout package from the International Monetary Fund in July. In return, Sri Lanka agreed to reduce its budget deficit to 5 percent of GDP by 2011, from an estimated 7 percent in 2009.

                  Rapid Development

                  Rajapaksa, who says he will submit proposals for a political solution to ethnic divisions after talks with all parties, has vowed to spend $4 billion, or almost 10 percent of Sri Lanka’s gross domestic product, rebuilding roads and power plants in the north.

                  “Hopefully it’s going to be rapid implementation,” said Mobius. “Infrastructure is in really bad shape.”

                  San Mateo, California-based Templeton doesn’t hold any Sri Lanka stocks, which need to drop at least 15 percent to be attractive, he said.

                  Sri Lanka’s benchmark is Asia’s second-best performing this year after more than doubling in 2009. Markets were closed yesterday.

                  Rajapaksa’s re-election campaign was propelled by a government propaganda blitz that championed his defeat of Tamil Tiger rebels. State-owned media showered voters with images of the war triumph. The president’s face appears on a 1,000 rupee note, with pictures of victorious soldiers on the reverse side.

                  Devolution Hopes

                  Tamils want to see real proposals for devolution of powers to the northern and eastern regions where the Tigers fought for an independent homeland.

                  The president can move to heal the rift between the two communities if he wishes, said Paikiasothy Saravanamuttu, director of the Centre for Policy Alternatives. “There has been a constitutional provision for devolution of powers to the north and eastern provinces for two decades,” he said.

                  Rajapaksa won almost 58 percent of the 10.4 million votes cast in the Jan. 26 poll, the election commission said, compared with 40 percent for Fonseka. The opposition disputed the results. “The government is being blatantly anti-democratic,” said Anura Kumara Dissanayake, Fonseka’s spokesman.

                  ‘Clear Mandate’

                  Fonseka’s alliance of ideologically opposed parties had worried investors who saw it leading to unstable government.

                  “It’s a clear mandate,” said Rajendra Theagarajah, chief executive officer of Hatton National Bank Plc, Sri Lanka’s second-biggest non-state lender by assets, said in a telephone interview from Colombo. “The people have given the incumbent the direction to lead,” he said. “Uncertainty has now been taken out of the equation. The message will give upward momentum to investment.”

                  The president and Fonseka, 59, worked to bring about the May victory over the Liberation Tigers of Tamil Eelam. They fell out after the president moved the general to a ceremonial post and accused him of plotting a coup.

                  Fonseka fared better in the Tamil-dominated Jaffna district, where voter turnout was far lower. Tamils comprise 12 percent of the population, with Sinhalese accounting for 74 percent.

                  “An emphatic win will make Rajapaksa very strong at the parliamentary election,” to be held by April, said Murtaza Jafferjee, managing director at JB Securities Pvt. in Colombo. Still, during campaigning, both candidates “made so many promises that it will be extremely challenging to contain the budget deficit,” said Jafferjee. The rising cost of the public sector will “bring in a greater threat of inflation, put pressure on interest rates and weaken the currency.”

                  source -

                  Wednesday, January 27, 2010


                  Below given are the members & trading members (Brokers) of Colombo Stock Exchange.We have 15 Member firms & 06 trading members currently attached to CSE. Foreign investors & local investors who are new to Colombo Stock Exchange can now directly contact any of below mentioned members or trading members to commence their share trading activities.

                  MEMBER FIRMS

                  Bartleet Mallory Stockbrokers (Pvt) Ltd

                  Level "G ", "Bartleet House", 65, Braybrooke Place, Colombo 2.
                  Tel.5220200, Fax: 2434985
                  Mr. R. Muralidaran - Managing Director

                  Acuity Stockbrokers (Pvt) Ltd.

                  Level 6, Acuity House, No. 53, Dharmapala Mawatha, Colombo 3.
                  Fax: 2206298/9
                  Mr. Devapriya Ellepola -CEO/Managing Director

                  John Keells Stockbrokers (Pvt) Ltd.

                  130, Glennie Street, Colombo 2.
                  Tel. 2326003, 2338066/7, 2342066/7, 2446694/5, 2439047/8, 4-710721-4
                  Fax:Â 2342068, 2326863
                  Mr. Tivanka Ratnayake - CEO

                  Asha Phillip Securities Ltd.

                  Level 4, "Millennium House", 46/58, Navam Mawatha, Colombo 2.
                  Tel. 2429100,

                  Fax: 2429199
                  Mr. Dimuthu Abeysekera - Director /CEO

                  DP Global Securities (Pvt) Ltd.

                  3rd Floor, "Forbes & Walker Building", 46/38, Navam Mawatha, Colombo 2.
                  Tel. 4700111, 2307366

                  Fax: 4700112,2307365
                  Mr. Deepta Ekanayake - Managing Director

                  Somerville Stockbrokers (Pvt) Ltd.

                  137, Vauxhall Street, Colombo 2.
                  Tel. 2329201-5, 2332827, 2338292-3
                  Fax: 2338291,
                  Ms. Shalini Dias - Director

                  J B Securities (Pvt) Ltd.

                  150, St. Joseph Street, Colombo 14.
                  Tel. 2490900, 077-2490900, 077-2490901
                  Fax: 2430070, 2446085, 2447875
                  Mr. Murtaza Jafferjee - Chairman & Managing Director

                  Lanka Securities (Pvt) Ltd.

                  228/2, Galle Road, Colombo 04.
                  Tel. 4706757, 2554942
                  Fax: 4706767
                  Mr.Kosala Gamage - Managing Director

                  Asia Securities (Pvt) Ltd.

                  Level 21, West Tower, World Trade Centre, Echelon Square, Colombo 1.
                  Tel. 2423905, 5320000
                  Fax: 2336018
                  H.L.L.M.Nanayakkara - Managing Director

                  Ceylinco Stockbrokers (Pvt) Ltd.

                  Ceylinco House, Level 9, 69, Janadhipathi Mawatha, Colombo 1.
                  Tel. 4-714300, 4-714388, 4-714389, 077-891871, 0777-896064
                  Fax: 2387228
                  Mr. Sriyan Gurusinghe - Director / General Manager

                  Capital Trust Securities (Pvt) Ltd.

                  42, Mohamed Macan Markar Mawatha, Colombo 3.
                  Tel. 5-335225,
                  Fax: 5-365725
                  Mr. Tushan Wickremasinghe - Mnaging Director

                  S C Securities (Pvt) Ltd.

                  2nd Floor, 55 D.R. Wijewardena Mawatha, Colombo 10.
                  Tel. 4711000,
                  Fax: 2394405
                  Mr. Harsha Fernando - Director / Chief Executive Officer

                  CT Smith Stockbrokers (Pvt) Ltd.

                  4-14, Majestic City, 10, Station Road, Colombo 4.
                  Tel. 2552290 - 4
                  Fax: 2552289
                  Mrs. Cecilia Muttukumaru - Managing Director

                  DNH Financial (Pvt.) Limited.

                  Level 16, West Tower, World Trade Center, Colombo 01.
                  Tel. 5732222
                  Fax: 5736264
                  Mr. Seedantha Kulatilake - Genaral Manager / CEO

                  NDB Stockbrokers (Pvt) Ltd.

                  5th Floor, NDB Building, 40, Navam Mawatha, Colombo 2.
                  Tel. 2314170 to 2314178
                  Fax: 2314180
                  Mrs.Prasansini Mendis - Chief Executive Officer

                  TRADING MEMBERS

                  Capital Alliance Securities (Pvt) Ltd.

                  Level 5, "Millennium House", 46/58 Navam Mawatha, Colombo 2.
                  Tel: 2317777
                  Fax: 2317788
                  Mr.Harinlal Aturupane -Managing Director / CEO

                  SMB Securities (Pvt) Ltd.

                  No. 47, Dharmapala Mawatha, Colombo 3.
                  Tel: 5539593
                  Fax: 5510750
                  Mr. Nandun Jayatillake - Chief Executive Officer

                  First Guardian Equities (Pvt) Ltd.

                  32nd Floor, East Tower, World Trade Centre, Echelon Square, Colombo 1.
                  Tel: 5884400 (Hunting)
                  Fax: 5884401
                  Mr.Rohan Goonewardene - Managing Director / CEO

                  Taprobane Securities (Pvt) Ltd.

                  second floor,
                  No. 10, Gothami Road,
                  Colombo 08.
                  Tel: 94-11-5231000
                  Fax: 94-11-5328177
                  Mr.Ashan Dassanayake - Chief Execuive Officer

                  Amana Securities Ltd.

                  532/4 F, Srikotha Lane, Galle Road, Colombo-03.
                  Tel: 2372561-4
                  Fax: 2372565
                  Mr. Ahmed Ishrath Mohideen - Acting Chief Executive Officer

                  SKM Lanka Holdings (Pvt) Ltd

                  377/3, Galle Road, Colombo 3
                  Tel: 0112372413-4
                  Fax: 0112372416
                  Mr. Khalil Masood - Chairman / CEO

                  source -


                  Given below are several benefits of investing your hard earned money in shares,which we believe wil be beneficial for our visitors, 

                  Capital Gains
                  Ø  This is when a share’s selling price exceeds its initial purchase price. If the selling price falls beyond the purchase price, you would make a capital loss. Capital gains are free of tax.

                  Ø  Invest in the market with a long term view to mitigate any Capital losses.

                  Ø  A company may decide to payout a portion of its earnings to shareholders.
                  Ø  High dividend paying companies in the market are CTC, NEST,LLUB, COMB (X)  HNB(X) etc.
                  Ø  The company may extend this privilege to existing share holders to buy shares at specified & usually discounted price. This is normally in proportion to the number of shares already owned.
                  Ø  Shares quoted on a stock market are generally liquid. There for, they can be sold easily & you can get your money back in a few days.
                  Ø  Invest in companies which have more liquidity.
                  Higher Returns
                  Ø  In the longer term, shares have ensured a higher return to investors.
                  Hedge against inflation
                  Ø  Shares are a good investment in an inflationary environment, since share prices increase to protect investors from the effects of the inflation.
                  Ø  You may also use your shares as collateral against loan facilities to banks. 
                   source -

                  Tuesday, January 26, 2010


                  26/01/2010 - Colombo Stock Exchange was up today where gains were recorded at the final half an hour of trading. Market was closed at 12.00 noon today  due to the Presidential elections. ASI was up by 36.93 points to close at 3591.98 surpassing its previous all-time high of 3586.68, hit on Jan. 18. Millanka index was up by 58.05 points to close at 4124.95.
                  Turn over for the day was healthy Rs 883 m.n. & this was  reported only for two & half hours of trading. Turn over was supported by local investors.Foreign participation was at low levels, where foreign purchases were Rs 125 m.n. & foreign sales were at Rs 251 m.n.
                  There were 95 positive contributors as against 34 negative contributors.
                  Buying interest was seen in most of Blue chip counters led by Banks.
                  Colombo  bourse has risen 6.08 percent so far this year after being one of the world's best-performing markets in 2009, jumping 125.2 percent as a result of the eradication of the 30 year old civil war.

                         TOP FIVE GAINERS FOR THE DAY                             TOP FIVE LOSERS FOR THE DAY

                       CROSSINGS FOR THE DAY


                                               COLOMBO STOCK EXCHANGE 

                   SRI LANKA STOCK PICKS exclusive: Through this we have decided to convey the CSE Rumors for all of our visitors,which have many times found to be unknown to small investors or when they become  aware, prices of particular shares may have had increased substantially. Hence our simple effort is just to give you  / convey these rumors where most of top investors are well aware of. However please note that there is a high risk involved in share trading. We do not take responsibility for any lose or damage arising out of stated information in this post. You have to take your own decisions. (Do your own research, Do 
                  not follow others , Stick to fundamentals, Buy shares when other are selling & sell when others are buying.)


                  By Anusha Ondaatjie - SRI LANKA 'STABILITY' HELP STOCKS EXTEND RALLY, SAYS NDB

                  Jan. 26 (Bloomberg) -- Sri Lankan stocks are poised to extend last year’s record gain no matter who wins today’s election, as the end of the 26-year civil war and rising corporate profits bolster the economy, according to the nation’s largest non-government investment fund.

                  NDB Aviva Wealth Management Ltd. predicts the Colombo All- Share Index will advance 25 percent this year after a gain of 125 percent in 2009, the best performance among equity indexes tracked by Bloomberg worldwide after Russia’s RTS. Sri Lanka’s market, with a value of $9.94 billion, is the smallest among 16 major economies in Asia, data compiled by Bloomberg show.

                  “There may be some volatility in sentiment over any election result, but strong earnings will help the market catch up on lost momentum,” said Bimanee Meepagala, who helps manage the equivalent of about $250 million at NDB in Colombo. “Political stability should prevail whoever wins. The biggest overhang was the war and that has been taken away.”

                  Voters in Sri Lanka, located off the southern tip of India, are choosing between President Mahinda Rajapaksa and former army chief Sarath Fonseka, who quit in November. Rajapaksa, 64, called the poll two years early to capitalize on last May’s defeat of Tamil Tiger rebels who had fought for a homeland in the north and east of the country.

                  The economy may grow 7 percent in 2010, the fastest pace in four years, spurred by corporate investment and the building of new roads, ports and power plants, Central Bank of Sri Lanka Governor Nivard Cabraal said Jan. 4.

                  Low Interest Rates

                  Earnings may increase about 30 percent in the year ending December 2010 with tourism, banks, diversified groups and construction-related companies leading gains in Sri Lankan equities, Meepagala said.

                  Banks will benefit as interest rates at five-year lows spur demand for credit, while hotel shares may climb as companies build resorts, she said. Cabraal has kept interest rates unchanged for two straight months. December’s inflation rate of 4.8 percent was less than half that in January 2009.

                  Mark Mobius, who oversees $34 billion of developing-nation assets at Templeton Asset Management Ltd., said on Jan. 7 the country’s stocks have “gone up a little bit too high and we would like to see a correction from where we are now.”

                  The benchmark index has risen 4.8 percent this year, pushing up the price-earnings ratio to 30.4 times reported earnings, compared with 7.61 times at the same time last year. according to data compiled by Bloomberg.

                  Policy Environment

                  The index may decline 10 percent from current levels in the first quarter on concern over how the election winner will steer the post-war economic recovery, said S. Jeyavarman, who manages the equivalent of $35 million as chief executive officer of National Asset Management Ltd. in Colombo.

                  “The market will move more cautiously this year as investors watch the policy environment,” Jeyavarman said in an interview. “The pace of development will depend on how the economy is run.”

                  Rajapaksa has vowed to spend $4 billion, or almost 10 percent of Sri Lanka’s gross domestic product, building roads, railways and power plants in the north. His government has called on western nations to help it rebuild after the war and stop raising issues of human rights abuses and the speed of settling civilians held in transit camps.


                  Fonseka, 59, the candidate for the main opposition parties Janatha Vimukthi Peramuna, or the People’s Liberation Front, and the United National Party, has pledged to eradicate corruption, keep a check on government spending and cut corporate and personal taxes.

                  “Foreign investors don’t really care who wins,” said Roman Scott, the chairman of Singapore-based Calamander Group Ptd., which last year set up the first private equity fund focused on Sri Lanka. “What they crave is stability above all, followed by the implementation of sound economic policies and proper investment.”

                  source -


                  Presidential polls will hardly have an impact in the market - according to market analysts.

                  Yadhavan Jeyaram, Manager Sales Bartleet Stockbrokers said that Presidential elections will not have an outcome on the market, but the next few days after the elections will see some sluggishness. “As the major factor was the war which is over I am certain the market will be heading towards an upward trend,” he said.

                  Arjuna Dassanayake, Vice President Acuity stockbrokers noted that the election results will be much clearer than the general perception currently prevailing in the capital and therefore it may not lead to much violence as was seen in the 2005 Presidential elections.

                  He said that it is expected that the market will settle down and the current volatility will reduce as the election results are announced by the end of the week. “The institutional and foreign trading will commence more actively once the results are clear. The key factor is the investors will learn to look at the sound management and growth potential of the companies and eliminate the political element that exists currently.

                  In short common sense and reality will prevail over and above the risk of speculation,” he added. An analyst said that once the ‘weak hearted players’ complete their exit from the market the indices may pick up sharply on Monday, which is a day closer to the Presidential election.

                  Charuka Suchendra, Research Analyst Asha Phillip noted that the election will not make any significant negative impact on stock market sentiments though there will be violence. “There might be a maximum of marginal drop in indices due to election violence if it occurs. In general investors are more confident about the Sri Lankan future as we are into a post conflict environment,” he said.

                  source -

                  Monday, January 25, 2010


                  25/01/2010- Colombo Stock Exchange commenced a fresh week on positive note. ASI  was up by 22.72 points to close at 3554.45 & more liquid Millanka index was up by 22.07 points to close at 4066.90. The turnover for the day was Rs 1.5 b.n which was supported by local buying as usual. Foreigners were net sellers for the day where foreign purchases amounts Rs 157 m.n. & sales were at Rs 647 m.n.
                  There were 85 positive contributors as against 52 negative contributors.
                  The Colombo bourse has risen 4.99 percent so far this year after being one of the world's best-performing markets in 2009, jumping 125.2 percent on post-war optimism.

                  JKH PROFIT UP  - John keels holdings Sri lanka's largest conglomerate reported Rs 1.13 b.n profit for the Dec 09 quarter up by 49% . However for nine months period profit was Rs 2.36 b.n. a negative growth of 9% YOY.  EPS for the quarter was Rs 1.86 against Rs 1.20 reported year earlier. EPS for the period was Rs 3.86 as against Rs 4.10 in year 2008. NAVPS was up to Rs 76.51 as at 31/12/2009 up from Rs 69.72.

                  Third quarter profit up was supported by
                  • Transportation Sector - PBT increased by 46%
                  • Leisure Sector - PBT increased by 174%
                  • Property Sector- PBT decreased by 22%
                  • Consumer Food & Retail - decreased by 23%
                  • Financial services Sector- increased by 159%
                  • IT Sector - improved profits reported.
                  • Other Areas  - improved profits reported.
                          TOP GAINERS FOR THE DAY                                    TOP LOSERS FOR THE DAY

                       CROSSINGS FOR THE DAY


                  Colombo Dockyard PLC (CDPLC) in Sri Lanka has secured repeat business from Van Oord, and says the trailing suction hopper dredger Volvox Olympia is currently repairs at the yard.
                  This is the second Van Oord vessel to utilize Colombo’s repair facilities after the split hopper vessel Costa Blanca was successfully attended to in November last year.
                  Colombo Dockyard has provided services to many international dredger owners in the recent past such as Dredging International, Dredging Corporation of India and Royal Boskalis Westminster.

                  source -


                  Jan 25, 2010 (LBO) - Marawila Resorts a listed Sri Lankan hotel will settle a loan of 55 million rupees due to Lankem Ceylon, another listed firm through a placement of new shares, the company said.
                  Lankem will get 11 million shares of Marawila Resorts at five rupees each to off set a 55 million rupee loan as at October 31, 2009, the firm said in a stock exchange filing.

                  Marawila Resorts has a stated capital of 701 million rupees.

                  Marawila Resorts opened Monday flat at 6.00 rupees per share, while Lankem Ceylon opened trading at 46.50 rupees, down 1.75.

                  Sri Lankan hotel sector is recovering after being hit a 30 year civil war.

                  source -

                  Sunday, January 24, 2010


                  First capital holdings a member of Janashakthi  group  reported a phenomenal growth for the first 09 months ending 31/12/2009 at group level. However at company level it reported an increased loss due to sharp increase in direct expenses for the same period.

                  This reflects a profit growth of 832% YOY. At company level reported loss for the 09 months ending 31/12/2009 was Rs (16,434) as against a loss of Rs (7,395) an increase of 122%. EPS Stands for the period (.49) as against (.22).
                  At group level Net Asset Per Share stands as Rs 29.71 as at 31/12/2009 .

                  The stated Capital of the company was Rs 227.5 m.n. as at 31/12/2009.Earlier the Company's stated capital was  Rs 387.5 m.n. & a capital reduction was took in place in October 2009.


                  We selected  following companies listed in the Colombo stock exchange which were represented top price gainers list for the past week (18/01/2010 to 22/012010) to give you a basic idea of the value of investing in shares at Colombo Stock Exchange which was rated as Asia's best performing stock  market & World's second best performing stock market in year 2009.



                  By Azhar Razak
                  Sri Lanka’s newly established Leopard Fund, set to launch next month is expected to be a little cautious in the short-term with elections in the corner, but bullish over the longer term, an official said. Leopard Capital plans to start fundraising from February 1 for Leopard Sri Lanka Value Fund (for public equity) while fundraising for Leopard Sri Lanka Fund (for private equity) is to start from April 1.
                  “There is interest among investors but everybody wants to wait until the elections are over as there are concerns among investors due to the recent developments in the political arena,” Nirosh de Silva, one of the Managing Partner at Leopard Sri Lanka said.
                  However, he said that there was a lot of interest from institutional investors who are bullish on Sri Lanka and were eyeing on a long-term perspective.
                  “There have been quite a few investors who have done their due diligence already and are looking forward to it,” de Silva said.
                  The Leopard Sri Lanka Fund has a fundraising target of US $100 million and a 10-year lifespan. The fund, advised by a council headed by Marc Faber, publisher of the Gloom Boom & Doom Report, will invest in unlisted companies in Sri Lanka, typically taking minority positions.
                  “The fund aims to help fund the post-war development of Sri Lanka’s economy by investing in sectors such as tourism, consumer goods, seafood processing, agriculture and manufacturing,” de Silva said.
                  It is an open-ended fund with an initial fundraising target of $30 million. It will invest in a diversified portfolio of companies listed on the Colombo Stock Exchange that the manager considers under-priced by fundamental measures, including under-researched smaller companies.
                  Meanwhile, the Cayman Islands-based firm recently closed the Leopard Cambodia Fund, its debut product, to new money after receiving $34.1 million from over 100 investors.
                  Clayton founded Leopard Capital in 2007 to invest in Asian frontier markets. It is a partnership of financial professionals with substantial investment experience in Asian emerging markets. The firm has affiliated offices in Hong Kong, Phnom Penh and Colombo.

                  source -


                  Horana Plantations PLC (HPP), owning nearly 7,500 hectares (Ha) of land is in the process of obtaining approvals from the Central Environmental Authority (CEA) to develop its first mini hydro plant and is developing its bungalows for tourism, according to an official.

                  “We have got a Letter of Intent (from the government) to build a 1 mega watt (MW) plant in Maskeliya,” Rajiv Casie Chitty, Managing Director/CEO HPP told the Business Times. He said this is Rs.150 million plant and the company will build another 1MW plant in time to come in the same stream that they are building the first plant in. “We should start construction of the first plant by the middle of the year,” he added.

                  He said that HPP has 4,000 Ha in planting the main crops whereas the rest are unutilized. “We have opportunities in tourism, diversified crops, mineral resources in the lands which are still not utilized,” he added. Mr. Casie Chitty said that HPP will rent about two bungalows for tourism. “We put in about Rs. 6 to Rs. 7 million for these two bungalows and we are progressively investing to upgrade other bungalows – especially with the potential increase in tourism,” he said.

                  He said that the Tempo Bungalow of Neuchatal Estate, Neboda and the Tillcountry Bungalow in Lindula are now fully functional holiday bungalows available to both local and foreign holidaymakers and tourists looking for uniquely Sri Lankan experience.

                  He said HPP manages these bungalows and the company wants to increase the number of bungalows to a critical mass to get better returns. “We are looking at an internal rate of return (IRR) of more than 20% in terms of returns from this project,” he said.

                  He said that the company achieved a post tax profit of Rs. 55.23 million in 2008/9. “Although this is lower than the figure of Rs. 151.98 million recorded in the previous year, the performance was satisfactory given the challenges experienced during the year. In the third quarter of the year the company and the industry experienced a collapse of the commodity market following the global economic downturn.

                  The situation was worsened by a severe drought that prevailed during the last quarter of the financial year, resulting in a sharp decline in output,” he added.

                  source -


                  By Duruthu Edirimuni Chandrasekera

                  Sri Lanka’s largest dairy plant is gearing to launch a public share issue early next month, according to an official. “We will come out with an Initial Public Offering in the first week of February and will list about 20% of the company,” Ariyaseela Wickramanayake, Managing Director Pelwatte Dairy told the Business Times.

                  He said the company, a subsidiary of Pelwatte Sugar Industries, is presently carrying out trial production in its Rs 1.8 billion worth, brand new, state of the art plant in Pelwatte. He noted that Pelwatte Dairy is the first private sector dairy plant located in a 25 Hectare land extent. “It has a complete range of dairy products, ranging from milk, milk powder, cheese, yoghurt, butter, flavoured milk and all sorts of ice creams,” he said.

                  He said the plant, which has the latest Danish technology will start production by the end of February.
                  Mr. Wickramanayake noted that the main reason to list the company is that they want Sri Lankans to feel that the company belongs to them and also partake in its success. “We want all our countrymen to be partners of this company. We lose US$ 300 million a year from importing milk. this is the money required to build Hambantota harbour. This company will be a huge cost saving to the country,” he added.

                  He said the money raised through the IPO will be utilised for future expansion. “The IPO is mainly aimed at making the Sri Lankans owners of this firm,” he added.

                  source -

                  Saturday, January 23, 2010


                  SECTOR                          -     BANKING & FINANCE  

                  MARKET P.E. RATIO       -     17.23                                                             

                  SECTOR P.E. RATIO       -     10.60 

                  SHARE PRICE                -     RS 17.00

                  Lanka ventures plc was originally owned by DFCC & HNB two leading banks in Sri lanka. However owner ship of the Lanka ventures changed last week where it was purchased by ACUITY PARTNERS a joint venture between two giant banks  in Sri lanka once again its DFCC & HNB. ( 50% each owned by  them.) The purchased price was @ Rs 18/- per share. This transaction by ACUITY PARTNERS results in a mandatory offer for the remaining shares of LVEN @ Rs 18/-share.

                  The following are the  subsidiaries of Acuity partners - 
                  •  Acuity Stock Brokers (pvt) ltd 
                  •  Acuity Securities (pvt) ltd           
                  Acuity partners now owns 78.31 % of the issued & paid up Ordinary Share Capital of Lanka Venture PLC.                       

                  The principal activity of the company is to provide financial assistance through equity /equity related instruments for the companies that have future growth prospects.They have significant investments in the areas of health care & hydro power generation presently. Lanka ventures investments to those two areas represents  more than 80% of its total portfolio.

                  Lanka ventures reported a profit of Rs 52 m.n. as  against a loss of Rs 93 m.n YOY as at 30/09/2009. There current assets position was Rs 231 m.n. & current liabilities were Rs 346,000 as at 30/09/2009. Net assets per share was Rs 14.85 as at 30/09/2009.

                  The stated capital of LVEN is comprises of 50 m.n. ordinary shares. 

                  It has a tract record of paying high dividends in the past except for the financial year 2008 where the company has to faced for a tax problem which resulted an out flow of over Rs 100 m.n. Still they have not declared any dividends for the financial year 2009 which ends 31/03.2010. Hence we can expect a cash payment by way of a dividend in near future on back of their improved performances.

                  During the past couple of months LVEN clearly under performed to the market.

                  Further we expect LVEN to perform better in the future with new opportunities available in the country after the end of 30 year old civil war.There main income generates from the following areas,
                  • Dividend income from investments.
                  • Investment securities.
                  • Sale of investments. 
                  The low interest rates scenario in the country is a negative factor to the company at present. 

                  There for we believe that the investors are in a position to get a guaranteed return (This is the minimum return) as mentioned below from  investing in the company shares & by accepting  the mandatory offer by ACUITY PARTNERS @ Rs 18/- without waiting for long term returns if necessary or can wait for above average return in future.

                  (Please note that the trading price of Lven share was @ Rs 17/- & the closing price was also @ Rs 17 on 22/01/2010.) 
                  We believe that LVEN is a good share to invest in the event of any price drop in the future.

                  WE  RECOMMEND  LANKA VENTURES  -  BUY  


                  Friday, January 22, 2010


                  22/01/2010 - Colombo stock exchange was up to day with a turn over of Rs 1.6 b.n. ASI was up by 12.02 points to close at 3531.73 & the more Liquid Millanka index was up by 3.93 points to close at 4044.83. As usual turnover was supported by local investors.Foreign participation was at minimum levels,where foreign purchases were 124 m.n. & foreign sales  were Rs 586 m.n. recording a net foreign out flow of Rs 462 m.n.
                  There were 74 gainers as against 68 losers.
                  Today lankem group of companies purchased 56% stake in C.W.Mackie for Rs 712 m.n.@ Rs 35 / share. Denmark based Aarchus United A/S & Ceylon Trading Company were the sellers.This acquisition results in a Mandatory offer as per the take overs & mergers code. Lankem ceylon purchased 36.71% of Mackie & Kotagala plantation another Lankem group company bought 19.85% of Mackie.

                  C.W.Mackie group distributors Sunquick branded products & another famous product in Sri lanka - Jumbo peanut.

                  Investing firm CFVF was the top gainer to day where investors are confident of strong earnings by the company in future.

                         TOP GAINERS FOR THE DAY                                         TOP LOSERS FOR THE DAY

                      CROSSINGS FOR THE DAY


                  Jan 22, 2010 (LBO) - Ceylon Tea Brokers, a dedicated tea brokering firm is going for a second board listing in February to raise 28 million rupees from the public by selling down 12 percent of the firm.

                  The Colombo Stock Exchange said it had approved the sale of 14 million shares through subscription at two rupees each. The firm would be listed on the 'Diri Savi' second board of the exchange.

                  Ceylon Tea Brokers is 96 percent controlled by Capital Alliance Holdings, which is involved in or has units specializing stock brokering, structuring and trading in corporate debt and dealing in government securities.

                  "We want to show that small companies can easily access capital markets through the Diri Savi board," managing director of Capital Alliance Holdings Ajith Fernando said.

                  "Small companies should come to the capital markets. There is enough money provided you have proper corporate governance."

                  Capital Alliance Holdings owns about 96 percent of the firm.

                  The stock exchange said offer documents would be made available on February 03 and the subscription list would open on February 16.



                  On Monday we told you why we approved of Sri Lanka as the New York Times' pick as the number one place to go in 2010, which sparked a debate among our readers.

                  Today Daily Candy, a lifestyle web resource, also voiced its support of Sri Lanka's ranking on the list.

                  It was praised as "the best place" that Daily Candy writers had ever been, offering a host of places to go, things to see and where to stay. The article was sure to mention the elephant in the room - the war - but it was sure to include that "Sri Lanka is now stable and safe - and as beautiful, tropical, and friendly as ever."

                  What Our Readers Are Saying

                  We always like when our stories spur discussions from our readers. This article in particular was a popular outlet for them. While most of the comments sang Sri Lanka's praises, concerns around the country's military and government troubles were still voiced. Jack Maddox wrote:
                  This country has engaged in human rights abuses for sometime now. Their leaders have been accused of war crimes. Few miles from your place of enjoyment the army holds thousands of people against their will in camps and prisons.  NYT should be ashamed of itself.

                  DEVONECO fought back, posting:
                  ...I don't believe you will ever be able to prejudice any normal person from agreeing that Sri Lanka is the Top Tourist Destination as named by the New York Times. Whatever you have said will not deter anyone from going there to enjoy its beauty and friendly people...

                  And the most ubiquitous opinions expressed can best be summed up by Nille, who shared:
                  Sri Lanka is absolutely one of the most beautiful islands in the world. The people are just so friendly. One of the best things we could do for these people now when the war is over, is to go there. I have been there countless times, and I hope to go there this year again. Recommended!

                  By: Meagan Drillinger   Our Readers Weigh in on Sri Lanka
                  source -


                  According to the Sri Lanka Tea Board, the total reported production of tea in Sri Lanka increased during December 2009 by 29.6 percent amounting to 25,195,732 kg as against 19,448,448 kg, produced during the corresponding month in 2008.

                  The tea production in the High Grown category amounted to 5,917,943 kg in the month of December 2009 as against 5,396,974 kg produced during the corresponding month in 2008.

                  The reported production of tea in the Medium Grown category was also on the increase amounting to 3,242,651 kg in December 2009 as against 2,537,040 kg produced during the corresponding month in 2008.

                  The Low Grown category too had an increase in production in December 2009 amounting to 16,035,139 kg as against 11,514,435 kg produced during the corresponding month in 2008.

                  The total Orthodox tea reported an increase of production amounting to 23,895,566 kg in December 2009 as against 17,950,202 kg produced during the corresponding month in 2008.

                  The green tea also reported a growth 158,707 kg as against 131,391 kg produced during the corresponding month in 2008.

                  source -

                  Thursday, January 21, 2010


                  21/01/2010 - Colombo share market was down today due to profit taking before presidential elections which is scheduled for 26 th January 2010. ASI was down 12.70 points to close at 3519.71 & Millanka index was down by 30.18 points to close at 4040.90.Turn over for the day was Rs 728 m.n.There were 55 gainers as against 69 losers. Foreign participation at minimum levels . Foreign purchases were Rs 35 m.n. & Foreign sales were Rs 120 m.n.
                  John keels hotels announced a rights issue for its ordinary shares at the ratio of 1 for 3 @ Rs 10/-

                      CROSSINGS FOR THE DAY

                           TOP GAINERS FOR THE DAY                                 TOP LOSERS FOR THE DAY

                      INTERIM FINANCIAL STATEMENT 31/12/2009 (NINE MONTHS)


                  Jan 21, 2010 (LBO) - The leisure unit of Sri Lanka's John Keells Holdings group is making a 3.6 billion rupee cash call to spruce up its hotels and build new ones as the country expects a surge of tourists after the end of a 30-year war.
                  The company said it was issuing 364 million new shares at 10 rupees each to shareholders in proportion of one for every three shares held.

                  "The proceeds of the Rights Issue will be utilised to fund the refurbishment of hotels in Sri Lanka as well as for new hotel projects and for the acquisition of land for new resort hotels," the group said in a statement.

                  JKH has earlier said it was planning to invest nearly 6.0 billion rupees during the next three years to refurbish its hotels and build new ones.

                  It is planning a 190 room hotel in Beruwela on which design work would be finished by next April.

                  The hotel is expected to cost around 1.7 billion rupees, and will be a 4-star rated hotel coming under the group's mid-market 'Chaaya' brand.

                  JKH has a 10-acre long stretch in Beruwala, after it bought land from Sri Lanka's Confifi group next to an existing property. JKH's Beach Hotel Bayroo, in Beruwala was damaged during the 2004 Indian Ocean Tsunami.

                  JKH closed its 80 room Club Oceanic Hotel in the Eastern coast of Trincomalee, to refurbish it at a cost of 400 million rupees as a 4-star rated property.

                  Bentota Beach Hotel, would also be refurbished towards the end of next year at cost of 800 million rupees. The 115 room property would be 5-star rated.

                  "If tourism arrivals increase we will be ready with rooms," Gunewardene told a forum organized by Leopard Capital, a private equity group in Colombo last year.

                  "Cambodia saw an exponential growth after the unrest ended. Arrivals grew from 557,000 in 200 to 2.1 million in 2008".

                  Sri Lanka’s annual visitors in 2009 grew from 447,890 as opposed to the 438,000 visitors from the year earlier.

                  By 2011 JKH would be ready to start a 100 room 5-star hotel at its existing land in Ahungalle in the south west coast. The project may cost 1.6 billion rupees.

                  It could also build another 4-star 120 room hotel in the East Coast on its existing or acquired property. JKH had access to property in Kuchchaveli as well as in Nilaveli.

                  source -


                                             COLOMBO STOCK EXCHANGE 

                  SRILANKA STOCK PICKS exclusive: Through this we have decided to convey the CSE Rumors for all of our visitors,which have many times found to be unknown to small investors or when they become  aware, prices of particular shares may have had increased substantially. Hence our simple effort is just to give you  / convey these rumors where most of top investors are well aware of. However please note that there is a high risk involved in share trading. We do not take responsibility for any lose or damage arising out of stated information in this post. You have to take your own decisions. (Do your own research, Do not follow others, Stick to fundamentals, Buy shares when other are selling & sell when others are buying.)


                  Treasury Secretary Dr P.B. Jayasundara said the clothing industry has consolidated with the economy. Sri Lanka's total exports amounts to US$ 7.2bn out of which clothing accounts for US$ 3.3 bn which is about 46 percent of the total exports, Dr Jayasundera told a seminar.

                  The seminar on "Insight to efficiency optimization to elevate the Sri Lankan garment industry to meet the global competition was held at the Galadari hotel recently. This was organized by the Textile Institute, Sri Lanka section in collaboration with A&E Lanka Ltd.

                  He further said that Sri Lanka imports $ 10.5 bn per year thus having a net importer value of US$ 3.3 bn. Dr Jayasundara inquired from the industry whether this could be reversed so that Sri Lanka could have surplus exports.

                  He said the government will address the imports whilst the industry to increase the export value. To make this a reality, the entire industrial sector will have to increase at least US $ 3.3 bn in exports and he requested the clothing industry to contribute about US $ 1.6 bn in the next 3-5 years.

                  This is the challenge he posed at the industry. In order to materialize this concept, the clothing industry will have to find new markets in addition to the traditional markets. Among the new markets, it would be necessary to identify global niche markets, was his opinion.

                  Textile Institute, Sri Lanka Section Chairman Dr Rohana Kuruppu and Brandix College of Clothing Technology made a presentation on global trends in the clothing industry and its impact on Sri Lanka's industry. He argued that the global economy in the context of clothing business is not with negative growth but with opportunities for those who can make use of it. He emphasized that markets in US and EU are sluggish but countries like Vietnam and Bangladesh have made significant progress in 2008.

                  He explained that SAARC and ASEAN countries have become leading suppliers to US and EU clothing markets. Dr Kuruppu pointed out that price of imports to US stood at average US$ 1.85 per square meter equivalent (sme) but SAARC countries have maintained at US$ 1.69 per sme during 2008. Surprisingly, the average price of imports from ASEAN countries was at US$ 2.68 per sme during the same period, lamented Dr Kuruppu.

                  This means, the price within the SAARC countries is very competitive and there may be good reasons for ASEAN countries to fetch 37 percent more than South Asian countries to US market.

                  At the same time, he presented statistics to confirm that prices rose in the EU market too. The average price of imports from Vietnam rose by a significant 49 percent during 2008.

                  These data suggests that US and EU markets have potential growth and left to individual countries to plan their strategy to increase their market share.

                  Open University Senior Lecturer Dr Anbahan Ariyadural suggested that qualifications and training have not correlated with efficiency and therefore, it is necessary to study variables that cause ineffectiveness in training.

                  source -


                  The civil war is mostly over, and Sri Lanka is now stable and safe — and as beautiful, tropical, and friendly as ever. The conflict was primarily in the north, and our itinerary will have you roaming the south for adventure (elephant safaris), history (colonial fort towns, old Buddhist temples), rain forests (and mountains and tea plantations), and gorgeous beaches. It’s pretty much the best place we’ve ever been.
                  i'll take a king coconut to go!GPS
                  The island is far from everywhere, so you’ll want to stay about ten days. Jet Airways flies from the U.S. to India and connects to Colombo. (And why don’t all airlines serve curry?) For the best weather and the calmest seas, go between December and April. August and September fall between the monsoon seasons, but our October rainstorms lasted only a few minutes (and made for great photos). Small roads means it takes a while to get around, but the passing scenery is entertaining and captivating: water buffalo in rice paddies, men biking in plaid sarongs, palm trees as small as you and as tall as buildings. When you get thirsty, stop at a grubby lean-to along the road and get the guy to machete open a king coconut. Everyone says it’s the best hangover cure. (Check out our Sri Lanka photo gallery.)
                  walla walla!Kandy Whirls
                  To decompress from the flights, spend a night near the airport at The Wallawwa. Otherwise, head inland to the Kandy District and The KandyHouse, the eight-room hotel that was once the 1800s home of a ruling family, to spend a few days visiting the too-cute Pinnawela Elephant Orphanage, the bird-rich Peradeniya Botanic Gardens, and the brilliantly named Temple of the Sacred Tooth Relic.
                  tea thrills!Tea for Two
                  Next stop, the mountains of tea country. Until 2004, Sri Lanka was the world’s biggest tea exporter (cuppa Ceylon, indeed), and touring a plantation is really interesting and beautiful. Rest your head at Dilmah’s Tea Trails, a hotel of four colonial bungalows that used to house estate managers. Castlereagh has the best views; Tientsin has the most beautiful gardens.
                  mulgirigala statues!You’re Wella-come
                  Now you can go to the beach. The swank Amanwella compound consists of bungalows scattered across a coconut grove outside Tangalle. The service is Amanawesome, but prices are more affordable than Aman’s usual rates (a rare civil war perk). Force yourself away from the blissful beach to visit Udawalawe National Park. You’ll see monkeys and peacocks, but elephants are the main event. Please tip your guides well: They’re all volunteers. Also great is the ancient Mulgirigala Buddhist temple complex. Brave the ascent up the mountain and you’ll be rewarded with insane views and a blessing from one of the monks in residence on the way down. Farther west around Weligama Bay, Mirissa Hills is a gorgeous art-filled home in the hills on a working cinnamon estate.
                  taprobane!The Tap of the World
                  Sri Lanka is incredibly chic, very India meets Vietnam. (You’ll hear architect Geoffrey Bawa’s name a lot.) But the most breathtaking place to stay is Taprobane, a five-bedroom house on a tiny private island just off the coast. There’s no ferry: You wade through the Indian Ocean, carrying your clothes above your head (yes, really). The mythology speaks for itself: Founded by a descendant of a Napoleonic general, it used to be the residence of Paul Bowles, as well as fashion icon Isabella Blow. Now it’s part of the chic hotel chainlet Taprobane Collection, which also includes The Sun House and The Dutch House in Galle. If you don’t stay at the hotels, at least go for dinner and be on the lookout for Henri Tatham, the fabulous manager.
                  good galla!Good Galle
                  Walled fort town Galle was colonized by Arab traders, then the Portuguese, then the Dutch — and all left their mark. Amangalla may be the ultimate colonial fantasy, you’ll note, as you sip arrack sours on a rattan lounge chair at sunset, in recovery from the Ayurvedic consult and baths treatment at the exquisite spa. If the delicious hoppers at breakfast get you in the culinary mood, take a cooking lesson (click here for an easy curry recipe). And spend time with Olivia Richli, the kind and gorgeous general manager (who helped us plan this amazing itinerary), and ask for stories about Nesta Brohier, the grand dame who used to live in the hotel (with her much younger lover), and about taking in hundreds of locals left homeless by the tsunami. Richli can also help arrange a tour of Handunugoda Tea Estate, where you can watch glove-clad women clip white tea leaf by leaf with small scissors and learn how it is harvested, dried, and aged. Handunugoda brews make great souvenirs, as do bottles of arrack, but for something longer lasting, pick up handwoven napkins and coconut shell serving spoons at Barefoot. Galle Fort Hotel is a more budget option, but the perks at Amangalla are worth the splurge.

                  Really, there's only one down side to Sri lanka : eventually you have to leave.

                  This article was published on daily under the heading of  Sri you around - Daily candy goes to Sri lanka

                  source -