Ascot Holdings (ASCO) yesterday crossed new territory as its share hit a lifetime high of Rs.196.30 during the day with 38 percent of the company trading.
Brokers said that although no sellers were on the board for ASCO at the close of trading, there were 1.4 million buyers and 88, 800 buyers at Rs.195 and 196.30 on the board respectively.
The share started trading at Rs.130 and shot up 50 percent to a record high of Rs.196.30 and closed at the same price. ASCO also became the number one turnover contributor for the day with Rs.537 million.
The number of shares traded was 3.07 million and no crossings were recorded. In fact, the largest single trade that was executed was 47, 700 shares.ASCO has 8 million shares in issue and high net worth investor Nimal Perera had 17.7 percent stake as at June 30, 2011. After the trading hours, the share was slapped with regulator’s 10 percent price band.
source - www.dailymirror.lk
Friday, September 30, 2011
AAIC hits Rs.350
Shares of Asian Alliance Insurance PLC (AAIC) continuing its dramatic upswing hit another record high of Rs.350.70 yesterday, breaking all previous records.
The share opened trading at Rs.235 and closed at just 10 cents below the all time high.
The total number of shares traded during the day was 787, 700 and only one crossing of 100, 000 shares at Rs.250 was recorded. The total turnover contribution was Rs.234 million.
According brokers, this was the highest volume of AAIC traded since Softlogic Holdings and/or Softlogic Capital divested 1.5 million shares at Rs.121, which was not yet disclosed the Colombo Stock Exchange.
After trading hours, the regulator’s 10 percent price band was imposed on AAIC.
source -www.ft.lk
The share opened trading at Rs.235 and closed at just 10 cents below the all time high.
The total number of shares traded during the day was 787, 700 and only one crossing of 100, 000 shares at Rs.250 was recorded. The total turnover contribution was Rs.234 million.
According brokers, this was the highest volume of AAIC traded since Softlogic Holdings and/or Softlogic Capital divested 1.5 million shares at Rs.121, which was not yet disclosed the Colombo Stock Exchange.
After trading hours, the regulator’s 10 percent price band was imposed on AAIC.
source -www.ft.lk
Ray appointed to AAIC board
The CEO & MD of Acuity Partners, Ray Abeywardena has been appointed to the board of directors of AAIC with effect from yesterday, subject to the approval of the Insurance Board of Sri Lanka.
Abeywardena has over 25 years work experience in capital markets in Sri Lanka, initially in the stock broking and subsequently in investment banking.
He was the Managing Director of DFCC Stockbrokers before it was named Acuity Stockbrokers, when the firm was ranked the number one stock brokers in Sri Lanka in 2008.
Abeywardena earned his MBA from University of Wales and Post Graduate Diploma in Marketing from CIM-UK.
source - www.dailymirror.lk
Abeywardena has over 25 years work experience in capital markets in Sri Lanka, initially in the stock broking and subsequently in investment banking.
He was the Managing Director of DFCC Stockbrokers before it was named Acuity Stockbrokers, when the firm was ranked the number one stock brokers in Sri Lanka in 2008.
Abeywardena earned his MBA from University of Wales and Post Graduate Diploma in Marketing from CIM-UK.
source - www.dailymirror.lk
The Fortress to global spotlight with int’l tourism award
Sri Lanka’s iconic The Fortress Resort and Spa based in Koggala was again thrust into the global spotlight when it won a brace of trophies at the coveted World Luxury Hotel Awards 2011, held in Croatia last week which included the accolade for world’s Best Luxury Coastal Hotel. It also walked away with the premier Luxury Coastal Hotel in Sri Lanka award at the star-studded event. The fiercely-contested prizes were received on behalf of The Fortress by its General Manager, Jan van Twest, at the glamorous red-carpet gala held at the Regent Esplanade Zagreb Hotel which paid host to an ensemble of guests from the international hotel industry.
Established in 2006, the WLHA are viewed by many as the world’s most prestigious awards insofar as only exceptional hotels, lodges and resorts operating within a luxury niche market are allowed to participate.
Award winners within its various categories are deemed to be setting the benchmark in terms of their world class facilities and service excellence, and they act as a stamp of confidence and assurance within what is an increasingly competitive global market.
According to Sumith Adhihetty, Managing Director-The Fortress, “This international recognition for the Fortress Resort reinforces the Sri Lankan luxury sector as amongst the best in the world. We are profoundly honoured to receive these awards - especially considering that The Fortress is still relatively young. It confirms our ongoing and passionate response to the demands of our evolving clientele.”
This was a reference to The Fortress’ other recent initiatives, the first being the launch of a Butler Service which saw a batch of 15 internationally-trained butlers placed on the service menu following a gruelling four week programme held by the Australian Butler School. The second saw nearby Koggala Lake effectively transformed into a landing spot for the SriLankan Air Taxi Service through whom The Fortress has arranged exclusive flights on behalf of its guests.
“It is also a wonderful recognition for our dedicated team of hospitality professionals, who are providing a world class service, Sri Lankan-style,” continued Adhihetty.
Indeed, the hotel is fashioned in the style of a powerful fortress. Rising next to the beach, the resort’s walls enclose verdant gardens and water features, a spa featuring Ayurvedic treatments, a freeflow swimming pool, wine cellar, restaurants, boutiques and exquisitely appointed rooms, lofts and residences. The resort’s architecture forges historic Dutch and Portuguese styles with the motifs of Sri Lanka.
It will be of no surprise, then, that the Fortress Resort and Spa has been a frequent contender at the World Travel Awards, having been nominated in the ‘Indian Ocean’s Leading Hotel’ and ‘Indian Ocean’s Leading Luxury Resort’ categories for three consecutive years. It is one of just six hotels in Sri Lanka recognised by ‘Small Luxury Hotels of the World’ and is also a member of The Kiwi Collection, an exclusive list of high-end locations aimed at the insightful wayfarer.
Marinique Truter, Manager-WLHA stated: “I firmly believe that a World Luxury Hotel Award is the highest accolade that a hotel can receive, because it says more about the property than any brochure can communicate, any pictures can portray and any personal testimonial can express.”
“Outstanding hotels are those that surprise the guest with unexpected experience bonuses, experiences that are more about recognition of the guest than about any thread count,” said Truter.
This was a view reinforced by Dhammika Perera, Chairman-The Fortress Resorts PLC and the Vallibel Group, who stated: “Sri Lanka’s potential for luxury tourism is indisputable and our innovative services essentially reflect a competitive effort on the part of this fine hotel to win brand loyalty. Our latest travel awards are a strong testament to this, and are also a challenge for us to ensure that The Fortress never fails in its efforts to raise the bar even further.”
source - www.dailymirror.lk
Established in 2006, the WLHA are viewed by many as the world’s most prestigious awards insofar as only exceptional hotels, lodges and resorts operating within a luxury niche market are allowed to participate.
Award winners within its various categories are deemed to be setting the benchmark in terms of their world class facilities and service excellence, and they act as a stamp of confidence and assurance within what is an increasingly competitive global market.
According to Sumith Adhihetty, Managing Director-The Fortress, “This international recognition for the Fortress Resort reinforces the Sri Lankan luxury sector as amongst the best in the world. We are profoundly honoured to receive these awards - especially considering that The Fortress is still relatively young. It confirms our ongoing and passionate response to the demands of our evolving clientele.”
This was a reference to The Fortress’ other recent initiatives, the first being the launch of a Butler Service which saw a batch of 15 internationally-trained butlers placed on the service menu following a gruelling four week programme held by the Australian Butler School. The second saw nearby Koggala Lake effectively transformed into a landing spot for the SriLankan Air Taxi Service through whom The Fortress has arranged exclusive flights on behalf of its guests.
“It is also a wonderful recognition for our dedicated team of hospitality professionals, who are providing a world class service, Sri Lankan-style,” continued Adhihetty.
Indeed, the hotel is fashioned in the style of a powerful fortress. Rising next to the beach, the resort’s walls enclose verdant gardens and water features, a spa featuring Ayurvedic treatments, a freeflow swimming pool, wine cellar, restaurants, boutiques and exquisitely appointed rooms, lofts and residences. The resort’s architecture forges historic Dutch and Portuguese styles with the motifs of Sri Lanka.
It will be of no surprise, then, that the Fortress Resort and Spa has been a frequent contender at the World Travel Awards, having been nominated in the ‘Indian Ocean’s Leading Hotel’ and ‘Indian Ocean’s Leading Luxury Resort’ categories for three consecutive years. It is one of just six hotels in Sri Lanka recognised by ‘Small Luxury Hotels of the World’ and is also a member of The Kiwi Collection, an exclusive list of high-end locations aimed at the insightful wayfarer.
Marinique Truter, Manager-WLHA stated: “I firmly believe that a World Luxury Hotel Award is the highest accolade that a hotel can receive, because it says more about the property than any brochure can communicate, any pictures can portray and any personal testimonial can express.”
“Outstanding hotels are those that surprise the guest with unexpected experience bonuses, experiences that are more about recognition of the guest than about any thread count,” said Truter.
This was a view reinforced by Dhammika Perera, Chairman-The Fortress Resorts PLC and the Vallibel Group, who stated: “Sri Lanka’s potential for luxury tourism is indisputable and our innovative services essentially reflect a competitive effort on the part of this fine hotel to win brand loyalty. Our latest travel awards are a strong testament to this, and are also a challenge for us to ensure that The Fortress never fails in its efforts to raise the bar even further.”
source - www.dailymirror.lk
Ace play on ASCOT, Asian Alliance triggers regulatory check
Hectic trading on and sharp rise in share prices of Asian Cotton Mills and Asian Alliance Insurance yesterday dominated the Colombo Bourse triggering regulatory action.
The duo accounted for 27% or Rs. 771 million of the day’s turnover of Rs. 2.8 billion and topped the list of gainers. Their meteoric rise landed both under the SEC’s price band. For Asian Alliance it was a repeat after being released from its first ever price band on Tuesday.
ASCOT saw over 3 million of its shares traded before closing at Rs. 188.90 (up 45.3%) after hitting a 52-week high of Rs. 196.30. Asian Alliance saw only 0.78 million shares traded but rose by Rs. 116.80 or 50% to close at Rs. 350.60 which was its highest as well.
Both stocks net asset value are fraction of the prices at which they are currently trading. Play by high networth investors triggered a retail rally, analysts said. Some even suspected a pump and dump scenario but this could only be confirmed if the parties concerned had sold mid-way.
The blind and speculative play on these stocks were midst the more fundamental shares remaining depressed relatively though some lost early gains at close of trading.
Overall the All Share Index posted a welcome gain of 0.5% whilst Milanka was almost flat.
“Renewed interest in speculative stocks was witnessed while Ascot Holdings helped boost the turnover.
Institutional or high networth investor participation was rejuvenated to a certain extent,” NDB Stockbrokers said.
Interest was witnessed in Regnis (Lanka) and Radiant Gems.
The share price of Regnis (Lanka) increased by Rs.23.40 (5.90%) and closed at Rs. 420.30.
Foreigners continued to be net sellers with foreign selling worth of Rs. 221.39 million whilst foreign
buying was only Rs. 87.3 million, resulting in a net foreign outflow of Rs. 134 million.
“Retail involvement in the less liquid counters continued to heighten with today’s trading being mostly taken up by the speculative counters taking the lead in terms of turnover whilst dominating the price gainers’ assemblage with new levels of 52-week highs,” Arrenga Capital said.
Heavy index, John Keells Holdings registered two crossings counting to 373,400 shares in total with each block being crossed off at Rs. 205.0 and Rs. 207.9 price levels. Accumulation was evident in Vallibel One as it saw a parcel containing 2.9mn shares being dealt at Rs. 27.4. Other finance sector players, Ceylinco Insurance too witnessed a parcel of 137,000 shares being traded at Rs. 780 with Union Bank registering a one million block at Rs. 22.0.
“Despite the few large deals drawn on the fundamentally steady counters, prices of such counters registered dips,” Arrenga added. Citrus Leisure along with its Warrant 0017 continued to see some interest with Convenience Foods continuing to register a further gain of 8.3%.
source - www.ft.lk
The duo accounted for 27% or Rs. 771 million of the day’s turnover of Rs. 2.8 billion and topped the list of gainers. Their meteoric rise landed both under the SEC’s price band. For Asian Alliance it was a repeat after being released from its first ever price band on Tuesday.
ASCOT saw over 3 million of its shares traded before closing at Rs. 188.90 (up 45.3%) after hitting a 52-week high of Rs. 196.30. Asian Alliance saw only 0.78 million shares traded but rose by Rs. 116.80 or 50% to close at Rs. 350.60 which was its highest as well.
Both stocks net asset value are fraction of the prices at which they are currently trading. Play by high networth investors triggered a retail rally, analysts said. Some even suspected a pump and dump scenario but this could only be confirmed if the parties concerned had sold mid-way.
The blind and speculative play on these stocks were midst the more fundamental shares remaining depressed relatively though some lost early gains at close of trading.
Overall the All Share Index posted a welcome gain of 0.5% whilst Milanka was almost flat.
“Renewed interest in speculative stocks was witnessed while Ascot Holdings helped boost the turnover.
Institutional or high networth investor participation was rejuvenated to a certain extent,” NDB Stockbrokers said.
Interest was witnessed in Regnis (Lanka) and Radiant Gems.
The share price of Regnis (Lanka) increased by Rs.23.40 (5.90%) and closed at Rs. 420.30.
Foreigners continued to be net sellers with foreign selling worth of Rs. 221.39 million whilst foreign
buying was only Rs. 87.3 million, resulting in a net foreign outflow of Rs. 134 million.
“Retail involvement in the less liquid counters continued to heighten with today’s trading being mostly taken up by the speculative counters taking the lead in terms of turnover whilst dominating the price gainers’ assemblage with new levels of 52-week highs,” Arrenga Capital said.
Heavy index, John Keells Holdings registered two crossings counting to 373,400 shares in total with each block being crossed off at Rs. 205.0 and Rs. 207.9 price levels. Accumulation was evident in Vallibel One as it saw a parcel containing 2.9mn shares being dealt at Rs. 27.4. Other finance sector players, Ceylinco Insurance too witnessed a parcel of 137,000 shares being traded at Rs. 780 with Union Bank registering a one million block at Rs. 22.0.
“Despite the few large deals drawn on the fundamentally steady counters, prices of such counters registered dips,” Arrenga added. Citrus Leisure along with its Warrant 0017 continued to see some interest with Convenience Foods continuing to register a further gain of 8.3%.
source - www.ft.lk
Syria shock for tea
By Uditha Jayasinghe
Reeled by the overall crisis in the Middle East, the country’s tea industry has got a fresh jolt with Syria banning imports in value added form though the Government is cautioning undue panic was unwarranted.
As part of a national policy Syria has banned all imports carrying a tariff of over 5% and tea in packets and bags come under the move.
Industry sources said that Syria is by far the biggest market for Sri Lanka’s export of tea in packets. Exports to Syria are estimated at 28 million kilos of which over 12 million kilos are shipped in value added form.
In the first eight months of this year, tea exports to Syria amounted to 18.6 million kilos of which 86% were in packeted form.
A considerable share of exports to Syria is transported to Turkey and other countries making Syria a captive market for Ceylon tea in addition to it commanding a 90% market share.
Analysts said that following the ban a larger quantity of tea might get shipped in bulk form thereby reducing earnings. Owing to widespread unrest and other problems in the Middle East, prices for tea have been depressed especially in recent months.
Midst exporter concerns, Sri Lanka Tea Board cautioned the tea industry not to panic.
“There are two types of Sri Lankan tea exports to Syria, one that is a package of 3kg or above and one package type that is 3kg or below.
It is the second kind that has a tariff of 10% that could fall under this ban,” Tea Board Promotions Director Hasitha de Alwis told the Daily FT.
“However, there is no need to panic yet,” he stressed adding that the Syrian business community has retained the support of the government despite the political unrest engulfing the country. “We are hopeful that this matter will be sorted out and are so far confident that the appeals of the Syrian traders and businessmen will be listened to by their government,” de Alwis said.
Syria shock…
The business community and chambers of Syria have made representations to the Minister of Economy and Trade Mohammad Nidal Al-Shaar to remove this ban and de Alwis insisted that reports indicate that these appeals are being met favourably.
Minister Mohammad Nidal Al-Shaar has also insisted that the ban will be “temporary.”
source - www.ft.lk
Reeled by the overall crisis in the Middle East, the country’s tea industry has got a fresh jolt with Syria banning imports in value added form though the Government is cautioning undue panic was unwarranted.
As part of a national policy Syria has banned all imports carrying a tariff of over 5% and tea in packets and bags come under the move.
Industry sources said that Syria is by far the biggest market for Sri Lanka’s export of tea in packets. Exports to Syria are estimated at 28 million kilos of which over 12 million kilos are shipped in value added form.
In the first eight months of this year, tea exports to Syria amounted to 18.6 million kilos of which 86% were in packeted form.
A considerable share of exports to Syria is transported to Turkey and other countries making Syria a captive market for Ceylon tea in addition to it commanding a 90% market share.
Analysts said that following the ban a larger quantity of tea might get shipped in bulk form thereby reducing earnings. Owing to widespread unrest and other problems in the Middle East, prices for tea have been depressed especially in recent months.
Midst exporter concerns, Sri Lanka Tea Board cautioned the tea industry not to panic.
“There are two types of Sri Lankan tea exports to Syria, one that is a package of 3kg or above and one package type that is 3kg or below.
It is the second kind that has a tariff of 10% that could fall under this ban,” Tea Board Promotions Director Hasitha de Alwis told the Daily FT.
“However, there is no need to panic yet,” he stressed adding that the Syrian business community has retained the support of the government despite the political unrest engulfing the country. “We are hopeful that this matter will be sorted out and are so far confident that the appeals of the Syrian traders and businessmen will be listened to by their government,” de Alwis said.
Syria shock…
The business community and chambers of Syria have made representations to the Minister of Economy and Trade Mohammad Nidal Al-Shaar to remove this ban and de Alwis insisted that reports indicate that these appeals are being met favourably.
Minister Mohammad Nidal Al-Shaar has also insisted that the ban will be “temporary.”
source - www.ft.lk
Harris to lead Cargills’ banking venture
Gives quit notice as MD at Sampath Bank, to take up new post from 1 January
Proven industry leader Harris Premaratane is to head the country’s newest entrant to the financial services sector, Cargills Agriculture and Commercial Bank, from 1 January 2012.
The move follows Premaratne giving quit notice to Sampath Bank yesterday from his current post as Managing Director by end this year.
Daily FT learns Premaratne will be the Managing Director and CEO of Cargills Agriculture and Commercial Bank, which early this month received provisional approval from the Central Bank.
Its promoters are diversified blue chip CT Holdings Plc and FMCG specialist Cargills (Ceylon) Plc. The approval is subject to fulfilling routine terms and conditions, with which the promoters are currently busy.
Premaratne joined Sampath Bank as CEO designate in October 2008 and was inducted to the Board in November the same year, before being appointed Managing Director from January this year.
Some industry analysts have credited the recent revival in Sampath Bank to the leadership of Premaratne, who had previously had a long career at the country’s biggest private sector bank, Commercial.
An Associate Member of the Chartered Institute of Bankers, London, Premaratne was a Senior Deputy General Manager Corporate Banking at Commercial Bank Plc when he retired. He has 42 years of overall banking experience with expertise in the areas of trade services, trade finance, corporate credit, corporate finance, recoveries and correspondent relations.
He was a Director of the Sri Lanka Credit Information Bureau and was the Chairman of the Technical Advisory Committee of the Sri Lanka Banks’ Association.
Premaratne is the present Chairman of the Sri Lanka Banks’ Association (Guarantee) Ltd. and Chairman of the Financial Ombudsman Sri Lanka (Guarantee) Ltd. He is a Director of the Asiri Hospital Group of Companies. He also held the position of Director of Softlogic Group of Companies.
source - www.ft.lk
Proven industry leader Harris Premaratane is to head the country’s newest entrant to the financial services sector, Cargills Agriculture and Commercial Bank, from 1 January 2012.
The move follows Premaratne giving quit notice to Sampath Bank yesterday from his current post as Managing Director by end this year.
Daily FT learns Premaratne will be the Managing Director and CEO of Cargills Agriculture and Commercial Bank, which early this month received provisional approval from the Central Bank.
Its promoters are diversified blue chip CT Holdings Plc and FMCG specialist Cargills (Ceylon) Plc. The approval is subject to fulfilling routine terms and conditions, with which the promoters are currently busy.
Premaratne joined Sampath Bank as CEO designate in October 2008 and was inducted to the Board in November the same year, before being appointed Managing Director from January this year.
Some industry analysts have credited the recent revival in Sampath Bank to the leadership of Premaratne, who had previously had a long career at the country’s biggest private sector bank, Commercial.
An Associate Member of the Chartered Institute of Bankers, London, Premaratne was a Senior Deputy General Manager Corporate Banking at Commercial Bank Plc when he retired. He has 42 years of overall banking experience with expertise in the areas of trade services, trade finance, corporate credit, corporate finance, recoveries and correspondent relations.
He was a Director of the Sri Lanka Credit Information Bureau and was the Chairman of the Technical Advisory Committee of the Sri Lanka Banks’ Association.
Premaratne is the present Chairman of the Sri Lanka Banks’ Association (Guarantee) Ltd. and Chairman of the Financial Ombudsman Sri Lanka (Guarantee) Ltd. He is a Director of the Asiri Hospital Group of Companies. He also held the position of Director of Softlogic Group of Companies.
source - www.ft.lk
Insurance growth
The insurance sector has recorded an overall Gross Written Premium (GWP) income of Rs. 38.59 billion during the first half of 2011, which is a growth rate of 23.38% compared with the corresponding period of 2010, the Insurance Board of Sri Lanka (IBSL) states.
Overall GWP income of General Insurance businesses for the first half of 2011 amounted to Rs. 21.56 billion when compared with Rs. 18.18 billion during the same period last year.
In the meantime, overall GWP income of Long Term Insurance Businesses (Life) for the first half of 2011 amounted to Rs. 17.04 billion over the Rs. 13.12 billion in 2010.
Total Assets of the insurance companies have increased to Rs. 241.86 billion at the end of the first six months of 2011 from Rs. 222.24 billion at the end of year 2010.
IBSL further stated that during the first half of 2011, companies engaged in Long Term Insurance invested 51.86% of total assets in government securities as against 50.96% in 2010 whilst companies involved in general insurance invested 25.7% of total assets in government securities as compared with 24.65% in 2010.
The amounts invested by both segments of the industry into government securities is above the amount legally required. Long Term Insurance companies and General Insurance Companies should invest 30% and 20% respectively.
“The investment in Government Securities represents 51.86% (1st Half 2010: 50.96%) of the total assets of Long Term Insurance Business and 25.70% (1st Half 2010: 24.65%) of the total assets of General Insurance Business at the end of 2nd quarter of 2011. This is in excess of the required amount of investment in Government Securities by the Act” IBSL said,
The intermediary Insurance Broking Companies also made a significant contribution, as the total GWP income from both General and Life insurance business amounted to Rs.4.94 billion during the fist half of 2011.There are currently 20 insurers registered with the IBSL. Of these, 12 are composite companies dealing with both General and Long Term Insurance Businesses, while 6 are registered to carry out General Insurance Businesses and 2 are solely engaged in Long Term (Life) Insurance Business.
The figures pertaining to the Overall GWP Income, Total Assets and Investment in Government Securities represent all insurance companies except National Insurance Trust Fund (NITF) and Ceylinco Takaful Limited.
source - www.dailymirror.lk
Overall GWP income of General Insurance businesses for the first half of 2011 amounted to Rs. 21.56 billion when compared with Rs. 18.18 billion during the same period last year.
In the meantime, overall GWP income of Long Term Insurance Businesses (Life) for the first half of 2011 amounted to Rs. 17.04 billion over the Rs. 13.12 billion in 2010.
Total Assets of the insurance companies have increased to Rs. 241.86 billion at the end of the first six months of 2011 from Rs. 222.24 billion at the end of year 2010.
IBSL further stated that during the first half of 2011, companies engaged in Long Term Insurance invested 51.86% of total assets in government securities as against 50.96% in 2010 whilst companies involved in general insurance invested 25.7% of total assets in government securities as compared with 24.65% in 2010.
The amounts invested by both segments of the industry into government securities is above the amount legally required. Long Term Insurance companies and General Insurance Companies should invest 30% and 20% respectively.
“The investment in Government Securities represents 51.86% (1st Half 2010: 50.96%) of the total assets of Long Term Insurance Business and 25.70% (1st Half 2010: 24.65%) of the total assets of General Insurance Business at the end of 2nd quarter of 2011. This is in excess of the required amount of investment in Government Securities by the Act” IBSL said,
The intermediary Insurance Broking Companies also made a significant contribution, as the total GWP income from both General and Life insurance business amounted to Rs.4.94 billion during the fist half of 2011.There are currently 20 insurers registered with the IBSL. Of these, 12 are composite companies dealing with both General and Long Term Insurance Businesses, while 6 are registered to carry out General Insurance Businesses and 2 are solely engaged in Long Term (Life) Insurance Business.
The figures pertaining to the Overall GWP Income, Total Assets and Investment in Government Securities represent all insurance companies except National Insurance Trust Fund (NITF) and Ceylinco Takaful Limited.
source - www.dailymirror.lk
Sri Lanka Fund invests in EXPO
The Sri Lanka Fund (SLF) managed by Guardina Fund Management Limited said that it has invested in Expolanka Holdings PLC, a diversified conglomerate with main interest in logistics.
To fund the investment, SLF has disposed 6 percent of its pre-disposal stake in John Keells Holdings PLC, another diversified conglomerate with main interest in logistics and tourism.
The latest fact sheet of the fund also said that during the month of August, the indices of the Colombo Stock Exchange were mainly driven by investor speculation on penny stocks, and the fund underperformed the market by 300 basis points.
The size of the SLF as per August 2011 was US$ 2.87 million. The top five holdings of the fund were John Keells Holdings PLC (16.34%), Cargills Ceylon PLC (11.55), Distilleries PLC (10.30%), Tokyo Cement Company (Lanka) PLC (10.34%) and Lanka Floor tiles PLC (8.94%).
SLF is a an open-ended fund incorporated in the Cayman Island in October 21, 1993.
source - www.dailymirror.lk
To fund the investment, SLF has disposed 6 percent of its pre-disposal stake in John Keells Holdings PLC, another diversified conglomerate with main interest in logistics and tourism.
The latest fact sheet of the fund also said that during the month of August, the indices of the Colombo Stock Exchange were mainly driven by investor speculation on penny stocks, and the fund underperformed the market by 300 basis points.
The size of the SLF as per August 2011 was US$ 2.87 million. The top five holdings of the fund were John Keells Holdings PLC (16.34%), Cargills Ceylon PLC (11.55), Distilleries PLC (10.30%), Tokyo Cement Company (Lanka) PLC (10.34%) and Lanka Floor tiles PLC (8.94%).
SLF is a an open-ended fund incorporated in the Cayman Island in October 21, 1993.
source - www.dailymirror.lk
Fiat ready to begin business in SL
By Channa Fernandopulle
The Fiat brand has been re-introduced into the Sri Lankan market through authorized dealers, Speed Italia, a company under LOLC umbrella.
The first batch of exports to the country consisted of 72 Fiat Linea cars of which 50 were allotted to Sri Lanka Air Force. The car market in the country currently sees around 20,000 units per annum and according to Fiat India, the company aims to capture a 5% market share during the first year.
“As an initial step, we have set up the main Speed Italia showroom in Colombo which will showcase Fiat’s latest brands. Moving forward, we will be setting up a number of showrooms in strategic locations around the country, making the brand widely available to the public” said Kapila Jayawardena, Group Managing Director/CEO of LOLC. Fiat, which conducts manufacturing operations in both Italy and India, are manufacturers of the Punto, Fiat 500, Fiat Bravo and the Fiat Linea, with the latter being among the vehicles manufactured in India.
Jayawardena further stated that after-sales service is a top priority for the company and can be obtained via the LOLC Group’s eco-friendly workshop in Rajagiriya.
“We have established facilities especially on after-sales services to ensure that maximum care is given to our customers. We are well equipped to address the individual requirements of our customers quickly and efficiently. We are confident that the introduction of the new brands will offer new and exciting opportunities to Sri Lankan customers,” added Jayawardena.
Fiat, which is the 7th largest car manufacturer in the world, has made a move towards more eco-friendly vehicles, with its vehicles recording some of the lowest levels of carbon emissions for the fourth year running.
source - www.dailymirror.lk
The Fiat brand has been re-introduced into the Sri Lankan market through authorized dealers, Speed Italia, a company under LOLC umbrella.
The first batch of exports to the country consisted of 72 Fiat Linea cars of which 50 were allotted to Sri Lanka Air Force. The car market in the country currently sees around 20,000 units per annum and according to Fiat India, the company aims to capture a 5% market share during the first year.
“As an initial step, we have set up the main Speed Italia showroom in Colombo which will showcase Fiat’s latest brands. Moving forward, we will be setting up a number of showrooms in strategic locations around the country, making the brand widely available to the public” said Kapila Jayawardena, Group Managing Director/CEO of LOLC. Fiat, which conducts manufacturing operations in both Italy and India, are manufacturers of the Punto, Fiat 500, Fiat Bravo and the Fiat Linea, with the latter being among the vehicles manufactured in India.
Jayawardena further stated that after-sales service is a top priority for the company and can be obtained via the LOLC Group’s eco-friendly workshop in Rajagiriya.
“We have established facilities especially on after-sales services to ensure that maximum care is given to our customers. We are well equipped to address the individual requirements of our customers quickly and efficiently. We are confident that the introduction of the new brands will offer new and exciting opportunities to Sri Lankan customers,” added Jayawardena.
Fiat, which is the 7th largest car manufacturer in the world, has made a move towards more eco-friendly vehicles, with its vehicles recording some of the lowest levels of carbon emissions for the fourth year running.
source - www.dailymirror.lk
CICL to hand over land transfer deeds
By Channa Fernandopulle
Ceylinco Investment Cooperation Ltd (CICL), a fully owned subsidiary of Nation Lanka Finance PLC (NLF), announced that it will be handing over more than 300 land transfer deeds which had been purchased prior to the Ceylinco crisis.
The announcement was made during a special ceremony on October 5, at the Wayamba Provincial Council Auditorium in Kurunegala under the patronage of Central Bank Governor Ajith Nivard Cabraal.
Four hundred and twenty deeds in total had been paid for in full, but due to financial and legal problems caused by the collapse of the Ceylinco group, which CICL was previously a part of; the deeds were never handed over.
According to Nalin Jayetileke, Director CICL, issues regarding the registration of remaining 120 deeds will mean a delay of approximately another two weeks before the remainder too will be handed over.
Additionally, it was announced that 52 investors who had invested a sum below
Rs.100,000 would also be given investment certificates at the ceremony.
Explaining the rationale behind this decision, Jayetileke said: “Most of these investors come from the middle-lower income group. They had put in their EPF money to these investments. The board of directors therefore decided to settle the dues of the 52 people on the same day.”
CICL received funds to release 914 plots of mortgaged land, through a loan facility of Rs 109 million from Asanga Seneviratne, Director, NLF
Jayetileke stated that as soon as payment on the land in question, which had been proceeding along easy payment terms was completed, the company would hand over deeds to those plots of land as well.
Nation Lanka AGM today
NLF will hold its 24th Annual General Meeting today, at the Auditorium of the Institute of Chartered Accountants.
The company, which has undergone a restructuring process after it was acquired by investor Access Equities Pvt Ltd, a company headed by Asanga Seneviratne, has performed well this year largely due to profit after tax of Rs 59million being recorded by its subsidiary, Nation Lanka Equities (Pvt) Ltd, formerly Ceylinco Stock Brokering.
source - www.dailymirror.lk
Ceylinco Investment Cooperation Ltd (CICL), a fully owned subsidiary of Nation Lanka Finance PLC (NLF), announced that it will be handing over more than 300 land transfer deeds which had been purchased prior to the Ceylinco crisis.
The announcement was made during a special ceremony on October 5, at the Wayamba Provincial Council Auditorium in Kurunegala under the patronage of Central Bank Governor Ajith Nivard Cabraal.
Four hundred and twenty deeds in total had been paid for in full, but due to financial and legal problems caused by the collapse of the Ceylinco group, which CICL was previously a part of; the deeds were never handed over.
According to Nalin Jayetileke, Director CICL, issues regarding the registration of remaining 120 deeds will mean a delay of approximately another two weeks before the remainder too will be handed over.
Additionally, it was announced that 52 investors who had invested a sum below
Rs.100,000 would also be given investment certificates at the ceremony.
Explaining the rationale behind this decision, Jayetileke said: “Most of these investors come from the middle-lower income group. They had put in their EPF money to these investments. The board of directors therefore decided to settle the dues of the 52 people on the same day.”
CICL received funds to release 914 plots of mortgaged land, through a loan facility of Rs 109 million from Asanga Seneviratne, Director, NLF
Jayetileke stated that as soon as payment on the land in question, which had been proceeding along easy payment terms was completed, the company would hand over deeds to those plots of land as well.
Nation Lanka AGM today
NLF will hold its 24th Annual General Meeting today, at the Auditorium of the Institute of Chartered Accountants.
The company, which has undergone a restructuring process after it was acquired by investor Access Equities Pvt Ltd, a company headed by Asanga Seneviratne, has performed well this year largely due to profit after tax of Rs 59million being recorded by its subsidiary, Nation Lanka Equities (Pvt) Ltd, formerly Ceylinco Stock Brokering.
source - www.dailymirror.lk
Bourse looks up with some stock at record heights
Ascot, Regnis, Asian Alliance and Radiant Gems shine
The Colombo bourse looked up yesterday on a turnover of Rs.2.8 billion, up from the previous day’s Rs.1.5 billion, with the All Share Price Index gaining 37.24 points (0.55%) although the Milanka edged down marginally by 1.13 points (0.02%) with 123 gainers strongly outpacing 77 losers.
"Some stocks like Ascot, Asian Alliance Insurance, Regnis and Radiant Gems moved up strongly on decent volumes," Prashan Fernando of Acuity Stockbrokers said. "Most of them were at all time highs with Ascot gaining Rs.58.90, Asian Alliance Rs.116.80 and Regnis Rs.23.40. Radiant Gems too was up Rs.5.40."
Ascot posted the day’s highest turnover of Rs.537.2 million with nearly 3.1 million shares traded between Rs.130 and Rs.196.30 with the counter closing at Rs.196.30.
Asian Alliance saw nearly 0.8 million shares done between Rs.224 and Rs.350.70 closing at Rs.350.70 while Regnis with over 0.2 million shares done between Rs.408 and Rs.439 closed at Rs.420.10. Radiant Gems closed at Rs.213 on over 0.6 million shares done between Rs.201.50 and Rs.241.50.
Among highly traded stocks, 100,000 Asian Alliance was crossed at Rs.250 and two parcels of JKH, one of 273,400 crossed at Rs.205 and another of 100,000 crossed at Rs.207.90.
Union Bank saw a million shares crossed at Rs.22, Vallibel One nearly 2.9 million shares crossed at Rs.27.40 and Ceylinco Insurance 137,000 shares crossed at Rs.780.
Blue Diamonds too saw heavy trading gaining Rs.1.20 to close at Rs.10.40 on over 12.6 million voting shares traded between Rs.8.90 and Rs.10.50 and nearly 21 million non-voting shares traded between Rs.4.10 and Rs.5 with the counter gaining 80 cents to close at Rs.5.
Brokers said that Singer Sri Lanka too began to move up in tandem with its subsidiaries, Regnis and Singer Industries, gaining Rs.3.60 to close at Rs.126 on nearly 0.6 million shares done between Rs.121.20 and Rs.138.30. Singer Industries was up Rs.44.90 to close at Rs.318 on over 0.2 million shares done between Rs.265 and Rs.328.90.
RPC Plantation Management announced it has increased its stake in Kegalle Plantations to 68.97% by buying 54,800 shares at a total cost of Rs.8 million.
Mr. Ray Abeywardena has been appointed to the board of Asian Alliance Insurance subject to approval by the Insurance Board of Sri Lanka. He is CEO of Acuity Partners and has a 25-year career first in the stockbroking industry and subsequently in investment banking since 2009.
He was MD of DFCC Stockbrokers (now Acuity Stockbrokers) and is currently Group MD/CEO of Acuity Partners, a joint venture investment bank owned in equal share by the DFCC Bank and HNB.
source - www.island.lk
The Colombo bourse looked up yesterday on a turnover of Rs.2.8 billion, up from the previous day’s Rs.1.5 billion, with the All Share Price Index gaining 37.24 points (0.55%) although the Milanka edged down marginally by 1.13 points (0.02%) with 123 gainers strongly outpacing 77 losers.
"Some stocks like Ascot, Asian Alliance Insurance, Regnis and Radiant Gems moved up strongly on decent volumes," Prashan Fernando of Acuity Stockbrokers said. "Most of them were at all time highs with Ascot gaining Rs.58.90, Asian Alliance Rs.116.80 and Regnis Rs.23.40. Radiant Gems too was up Rs.5.40."
Ascot posted the day’s highest turnover of Rs.537.2 million with nearly 3.1 million shares traded between Rs.130 and Rs.196.30 with the counter closing at Rs.196.30.
Asian Alliance saw nearly 0.8 million shares done between Rs.224 and Rs.350.70 closing at Rs.350.70 while Regnis with over 0.2 million shares done between Rs.408 and Rs.439 closed at Rs.420.10. Radiant Gems closed at Rs.213 on over 0.6 million shares done between Rs.201.50 and Rs.241.50.
Among highly traded stocks, 100,000 Asian Alliance was crossed at Rs.250 and two parcels of JKH, one of 273,400 crossed at Rs.205 and another of 100,000 crossed at Rs.207.90.
Union Bank saw a million shares crossed at Rs.22, Vallibel One nearly 2.9 million shares crossed at Rs.27.40 and Ceylinco Insurance 137,000 shares crossed at Rs.780.
Blue Diamonds too saw heavy trading gaining Rs.1.20 to close at Rs.10.40 on over 12.6 million voting shares traded between Rs.8.90 and Rs.10.50 and nearly 21 million non-voting shares traded between Rs.4.10 and Rs.5 with the counter gaining 80 cents to close at Rs.5.
Brokers said that Singer Sri Lanka too began to move up in tandem with its subsidiaries, Regnis and Singer Industries, gaining Rs.3.60 to close at Rs.126 on nearly 0.6 million shares done between Rs.121.20 and Rs.138.30. Singer Industries was up Rs.44.90 to close at Rs.318 on over 0.2 million shares done between Rs.265 and Rs.328.90.
RPC Plantation Management announced it has increased its stake in Kegalle Plantations to 68.97% by buying 54,800 shares at a total cost of Rs.8 million.
Mr. Ray Abeywardena has been appointed to the board of Asian Alliance Insurance subject to approval by the Insurance Board of Sri Lanka. He is CEO of Acuity Partners and has a 25-year career first in the stockbroking industry and subsequently in investment banking since 2009.
He was MD of DFCC Stockbrokers (now Acuity Stockbrokers) and is currently Group MD/CEO of Acuity Partners, a joint venture investment bank owned in equal share by the DFCC Bank and HNB.
source - www.island.lk
ECL invests Rs. 150mn for diversification
E-channelling PLC (ECL) is investing Rs. 150 million in a subsidiary which would diversify in to several sectors, the company said in a stock exchange filing.
Shareholders had decided at an extraordinary general meeting on Thursday (29) to invest Rs. 150 million in the company’s subsidiary ECL Soft (Pvt) Ltd in order to fund projects such as leisure, consultancy and training, media and advertising, financial services, international marketing of the ECL group, BPO in the healthcare sector and strategic investments, ECL said.
source - www.island.lk
Shareholders had decided at an extraordinary general meeting on Thursday (29) to invest Rs. 150 million in the company’s subsidiary ECL Soft (Pvt) Ltd in order to fund projects such as leisure, consultancy and training, media and advertising, financial services, international marketing of the ECL group, BPO in the healthcare sector and strategic investments, ECL said.
source - www.island.lk
Sri Lanka stocks end up 0.5-pct
Sept 29, 2011 (LBO) - Sri Lankan stocks closed firmer Thursday and turnover also rose with an insurer whose ownership changed hands recently being brought under a price band after a sharp rise in its price, brokers said.
The main All Share Price Index rose 0.55 percent (37.24 points) to 6,747.91, while the more liquid Milanka index fell 0.02 percent (1.13 points) to close at 5,998.15, according to stock exchange figures.
Turnover was 2.8 billion rupees.
Ascot Holdings was the most actively traded stock and second highest gainer, closing at 188.90 rupees, up 58.90 or 45 percent, with three million shares changing hands and accounting for the biggest turnover.
Asian Alliance Insurance was the day's biggest gainer, closing at 350.60 rupees, up 116.80 or almost 50 percent, with 787,700 shares traded.
There was a crossing or off-market private deal of 100,000 AAIC shares at 250 rupees each.
Softlogic Holdings group last monh brought control of the insurer, buying a 73.5 percent stake for 3,308 million rupees at 120 rupees per share.
The Softlogic group's stake had risen to 98.6 percent after the close of a mandatory offer under stock exchange rules when the Richard Pieris group accepted the offer and sold their stake at 120 rupees a share.
Analysts said that Softlogic is then believed to have sold at least 1.5 million Asian Alliance Insurance shares at 121 rupees a day after the mandatory offer closed.
The sharp rise in the prices of Ascot Holdings and Asian Alliance shares Thursday prompted the markets regulator to bring them under the 10 percent price restricting daily price movements from September 30 to October 6.
Trading in Regnis (Lanka) accounted for the third highest turnover with the stock closing at 420.30 rupees, up 23.40, after hitting a high of 429.
There were two crossings of John Keells Holdings, one of 273,400 shares at 205 rupees each, and the other of 100,000 shares at 207.90 rupees each. JKH closed at 205 rupees, down 3.10, after hitting a day's high of 208.20.
source - www.lbo.lk
The main All Share Price Index rose 0.55 percent (37.24 points) to 6,747.91, while the more liquid Milanka index fell 0.02 percent (1.13 points) to close at 5,998.15, according to stock exchange figures.
Turnover was 2.8 billion rupees.
Ascot Holdings was the most actively traded stock and second highest gainer, closing at 188.90 rupees, up 58.90 or 45 percent, with three million shares changing hands and accounting for the biggest turnover.
Asian Alliance Insurance was the day's biggest gainer, closing at 350.60 rupees, up 116.80 or almost 50 percent, with 787,700 shares traded.
There was a crossing or off-market private deal of 100,000 AAIC shares at 250 rupees each.
Softlogic Holdings group last monh brought control of the insurer, buying a 73.5 percent stake for 3,308 million rupees at 120 rupees per share.
The Softlogic group's stake had risen to 98.6 percent after the close of a mandatory offer under stock exchange rules when the Richard Pieris group accepted the offer and sold their stake at 120 rupees a share.
Analysts said that Softlogic is then believed to have sold at least 1.5 million Asian Alliance Insurance shares at 121 rupees a day after the mandatory offer closed.
The sharp rise in the prices of Ascot Holdings and Asian Alliance shares Thursday prompted the markets regulator to bring them under the 10 percent price restricting daily price movements from September 30 to October 6.
Trading in Regnis (Lanka) accounted for the third highest turnover with the stock closing at 420.30 rupees, up 23.40, after hitting a high of 429.
There were two crossings of John Keells Holdings, one of 273,400 shares at 205 rupees each, and the other of 100,000 shares at 207.90 rupees each. JKH closed at 205 rupees, down 3.10, after hitting a day's high of 208.20.
source - www.lbo.lk
Thursday, September 29, 2011
Sri Lanka DFCC Bank 'AA(lka)' rating confirmed
Sept 29, 2011 (LBO) - Fitch Ratings Lanka has confirmed DFCC Bank's (DFCC) National Long-Term Rating at 'AA(lka)' with a stable outlook.
The rating agency has also confirmed DFCC's senior debentures at 'AA(lka)' and subordinated debentures at 'AA-(lka)', a statement said.
"The ratings are driven by DFCC's strong capitalisation, supported by its sustained solid profitability on the back of an improving economic and operating environment.
"The ratings also factor in DFCC's high exposure to risky long-term project finance, reliance on long-term bilateral and multilateral funding sources and the consequent need for higher capitalisation, relative to peers."
The full ratings report follows:
Fitch Ratings-Colombo/Singapore-29 September 2011: Fitch Ratings Lanka has affirmed DFCC Bank's (DFCC) National Long-Term Rating at 'AA(lka)' with a Stable Outlook. The agency has also affirmed DFCC's senior debentures at 'AA(lka)' and subordinated debentures at 'AA-(lka)'.
The ratings are driven by DFCC's strong capitalisation - consolidated Tier 1 capital adequacy ratio of 24.2% as of end-June 11, supported by its sustained solid profitability on the back of an improving economic and operating environment. The ratings also factor in DFCC's high exposure to risky long-term project finance, reliance on long-term bilateral and multilateral funding sources and the consequent need for higher capitalisation, relative to peers.
A sustained weakening in credit quality or profitability could stress DFCC's capital base and may place downward rating pressure. In addition, Fitch expects that as DFCC's commercial banking subsidiary - DFCC Vardhana Bank Limited (DVB, a 99.1% stake) - grows to account for a larger share of group assets, there could be a shift in the group's risk profile which could place pressure on DFCC's ratings. DVB accounted for 36% of DFCC group assets at end-June 2011 (March 2010: 35%, March 2009: 29%).
Taking into account the inherent risks in DFCC's business model, Fitch sees limited scope for an upgrade.
Project finance accounted for 72% of DFCC's advances (55% of group advances) at end-March 2011.
Project lending is long-term in nature and largely funded by long-term borrowings from institutional lenders. Institutional borrowings accounted for 40% of total bank funding (group: 27%) with DFCC also having a high proportion of equity funded assets (25%). Group concentration to project finance has decreased due to growth at DVB.
Consolidated non-performing advances (NPA) fell 23% from March 2010-June 2011, supported by greater recovery efforts at DFCC and DVB, and as DFCC borrowers' credit profiles benefited from an improving economic environment. Lower NPAs, together with the bank's prudent provisioning policy and a higher capital base, resulted in net NPAs falling to 6.4% of equity at end-June 2011 (end-March 2010: 14.6%) which compares well with local peers.
Total advances at the group level expanded 14.6% in the financial year ended March 2011 (FY11), driven largely by loan growth at DVB. Credit growth was slower to pick up pace at DFCC as project finance lending tends to lag improvements in the economy. However, as increased volumes of facility approvals in FY11 are being converted into disbursements Fitch expects growth to accelerate in FY12. Loans expanded 3.3% in the quarter ended June 2011.
Consolidated profits were boosted by a one-off gain of LKR3bn (post tax) from the sale of DFCC's stake in an associate in FY11. Of the gain, LKR1.8bn was paid out in dividends and another LKR1.1bn invested in DVB. Part of the income was also used to shore up loan loss reserves. Return on assets (adjusted for the gain) fell to 2.3% in FY11 (FY10: 3%) as associate contribution to profits fell and operating costs increased. Nevertheless, profitability remained strong compared to local peers'. Fitch expects core profitability to improve as net interest margins widen with loan growth and incremental provisioning costs reduce with improving asset quality.
DFCC is a licensed specialised bank and Sri Lanka's only development finance institution.
source - www.lbo.lk
The rating agency has also confirmed DFCC's senior debentures at 'AA(lka)' and subordinated debentures at 'AA-(lka)', a statement said.
"The ratings are driven by DFCC's strong capitalisation, supported by its sustained solid profitability on the back of an improving economic and operating environment.
"The ratings also factor in DFCC's high exposure to risky long-term project finance, reliance on long-term bilateral and multilateral funding sources and the consequent need for higher capitalisation, relative to peers."
The full ratings report follows:
Fitch Ratings-Colombo/Singapore-29 September 2011: Fitch Ratings Lanka has affirmed DFCC Bank's (DFCC) National Long-Term Rating at 'AA(lka)' with a Stable Outlook. The agency has also affirmed DFCC's senior debentures at 'AA(lka)' and subordinated debentures at 'AA-(lka)'.
The ratings are driven by DFCC's strong capitalisation - consolidated Tier 1 capital adequacy ratio of 24.2% as of end-June 11, supported by its sustained solid profitability on the back of an improving economic and operating environment. The ratings also factor in DFCC's high exposure to risky long-term project finance, reliance on long-term bilateral and multilateral funding sources and the consequent need for higher capitalisation, relative to peers.
A sustained weakening in credit quality or profitability could stress DFCC's capital base and may place downward rating pressure. In addition, Fitch expects that as DFCC's commercial banking subsidiary - DFCC Vardhana Bank Limited (DVB, a 99.1% stake) - grows to account for a larger share of group assets, there could be a shift in the group's risk profile which could place pressure on DFCC's ratings. DVB accounted for 36% of DFCC group assets at end-June 2011 (March 2010: 35%, March 2009: 29%).
Taking into account the inherent risks in DFCC's business model, Fitch sees limited scope for an upgrade.
Project finance accounted for 72% of DFCC's advances (55% of group advances) at end-March 2011.
Project lending is long-term in nature and largely funded by long-term borrowings from institutional lenders. Institutional borrowings accounted for 40% of total bank funding (group: 27%) with DFCC also having a high proportion of equity funded assets (25%). Group concentration to project finance has decreased due to growth at DVB.
Consolidated non-performing advances (NPA) fell 23% from March 2010-June 2011, supported by greater recovery efforts at DFCC and DVB, and as DFCC borrowers' credit profiles benefited from an improving economic environment. Lower NPAs, together with the bank's prudent provisioning policy and a higher capital base, resulted in net NPAs falling to 6.4% of equity at end-June 2011 (end-March 2010: 14.6%) which compares well with local peers.
Total advances at the group level expanded 14.6% in the financial year ended March 2011 (FY11), driven largely by loan growth at DVB. Credit growth was slower to pick up pace at DFCC as project finance lending tends to lag improvements in the economy. However, as increased volumes of facility approvals in FY11 are being converted into disbursements Fitch expects growth to accelerate in FY12. Loans expanded 3.3% in the quarter ended June 2011.
Consolidated profits were boosted by a one-off gain of LKR3bn (post tax) from the sale of DFCC's stake in an associate in FY11. Of the gain, LKR1.8bn was paid out in dividends and another LKR1.1bn invested in DVB. Part of the income was also used to shore up loan loss reserves. Return on assets (adjusted for the gain) fell to 2.3% in FY11 (FY10: 3%) as associate contribution to profits fell and operating costs increased. Nevertheless, profitability remained strong compared to local peers'. Fitch expects core profitability to improve as net interest margins widen with loan growth and incremental provisioning costs reduce with improving asset quality.
DFCC is a licensed specialised bank and Sri Lanka's only development finance institution.
source - www.lbo.lk
JL Morison sale: Deal or no deal?
CORPORATE circles were abuzz with an alleged bizarre development of first a deal and then no deal between J.L. Morison Sons and Jones (Ceylon) Plc controlling shareholders and prospective buyer United Motors Lanka Plc.
Market talk was that the two had signed a Sales and Purchase Agreement at Rs. 4,300 per share but when the transaction was due for execution, the seller had backed out.
If stories doing the corporate rounds are true, then neither of the listed parties had disclosed the first development concerning the signing of the sales and purchase agreement irrespective of whether the deal was on or not subsequently.
J.L. Morison which has 580,829 voting shares in issue last traded on Monday at Rs. 3,400 whilst its all time high is Rs. 4,500. Last week the share price closed at Rs. 3,300, down by Rs. 401. It also has 174,249 non-voting shares in issue which traded yesterday at Rs. 2,400, down by Rs. 245 from its previous close.
source - www.ft.lk
Market talk was that the two had signed a Sales and Purchase Agreement at Rs. 4,300 per share but when the transaction was due for execution, the seller had backed out.
If stories doing the corporate rounds are true, then neither of the listed parties had disclosed the first development concerning the signing of the sales and purchase agreement irrespective of whether the deal was on or not subsequently.
J.L. Morison which has 580,829 voting shares in issue last traded on Monday at Rs. 3,400 whilst its all time high is Rs. 4,500. Last week the share price closed at Rs. 3,300, down by Rs. 401. It also has 174,249 non-voting shares in issue which traded yesterday at Rs. 2,400, down by Rs. 245 from its previous close.
source - www.ft.lk
JKH revamps leisure footprint with Chaaya Tranz, Chaaya Wild
■Hotels to be open for business on 1 Nov after US$ 16 m upgrade
By Marianne David
Top blue chip John Keells Holdings (JKH) yesterday formally announced the revamp of its footprint in the leisure sector with the opening of Chaaya Tranz Hikkaduwa and Chaaya Wild Yala from 1 November.
The former Coral Gardens and Yala Village have been completely refurbished with an investment of over US$ 16 million and will be operated under the ‘Chaaya Hotels & Resorts’ brand.
“Today, as we celebrate World Tourism Day, we are excited and proud to launch two products, which are very distinctly different and very exciting properties for us. We believe the two products will be the beginning of new tourism products for Sri Lanka and that we will be at the cutting-edge of development with them.
Our philosophy is to be the trendsetter in the hotel trade,” JKH Deputy Chairman and President of the Leisure group Ajit Gunewardene told the media yesterday.
The key drivers of the two new properties are Mario Stanic, who is the General Manager at Chaaya Tranz Hikkaduwa and Teddy Roland, Manager at Chaaya Wild Yala.
Showcasing the local flavours of Hikkaduwa, Chaaya Tranz Hikkaduwa would best be described as a “celebration” of the liberal lifestyle there, boasting vibrant interiors and luxurious spaces. The group has infused a total investment of US$ 12 million to transform the property, which is a 150-room resort, and will also make Chaaya Tranz its base for whale watching in Mirissa.
Sector Head – Sri Lankan Resorts of the John Keells Hotels Sector Jayantissa Kehelpannala said: “Chaaya Tranz truly transforms the very concept of tourism in the exciting seaside location. We’ve gone four star definitely, but we’ve maintained a subtle flavour of nostalgia that the old Coral Gardens evoked, while introducing our legendary standards and service. We have also created our very own brand of music, endemic to the property, by renowned composer Chris Dhason.”
The Architect behind the transformation, Channa Daswatte said: “Inspired by the party life Hikkaduwa is famed for, the old Coral Gardens which is part of Sri Lanka’s tourism history is being transformed into a resort that will face the rest of the century. We have gutted the hotel down to the structure and reworked its spatial configurations.”
Presenting an epic adventure into the wild, the former Yala Village turned Chaaya Wild is being re-launched as a world-class game lodge with an old world atmosphere which simultaneously boasts cutting-edge aspects, Daswatte added.
Chaaya Wild is certain to be a nature enthusiast’s dream come true, with the 66-chalet lodge placed in what could best be described as an extension of the Yala National Park with open boundaries to the surrounding wildlife.
“The team at Keells, together with Channa, set about transforming the former Yala Village into one that blends with the true concept of the wild… What have through Chaaya Wild is a unique proposition, a four star ‘game lodge’ which sits in the centre of all this wildlife activity, adding an aspect of luxurious creature comforts, which you would surely agree makes for a calming and relaxing time in the wild,” Kehelpannala said.
The resort’s offerings stem from responsible tourism practices aimed at conserving and being one with its precious environs. A roof top observation deck and bar would be a key attraction, offering a 360 degree view of the surrounding wilderness, while ‘Nature Trails,’ the dedicated naturalist team, will offer unique experiences that are wild and personal.
Both Chaaya Wild and Chaaya Tranz are set to offer very special excursions, as explained by Keells Hotel Management Services Head of Eco Tourism and Special Projects Chitral Jayatilake, who walked the audience through detailed presentations of wildlife experiences that guests could encounter at the properties.
The investments in the two properties come hot on the heels of the group’s large investment in the east coast in opening Chaaya Blu last year. With a combined investment of over US$ 16 million, the two new and distinctly unique properties are certain to enrich the country’s overall tourism offering.
The group has three Chaaya Hotels operating in Sri Lanka at present – Chaaya Village Habarana, Chaaya Citadel Kandy and Chaaya Blu Trincomalee – in addition to three in the Maldives. With the two new launches, Chaaya Hotels & Resorts, the group’s home-grown resort brand created in 2006, will now become the largest Sri Lankan resort brand with five unique properties in Sri Lanka and three in the Maldives.
For John Keells Group, tourism is a year‐long celebration, asserted Gunewardene, noting that the Leisure sector receives the largest capital commitment of the group, amounting to a near 40%. “We will continue to invest not only in increasing the size and reach of our hotel portfolio but in adding unique and districts properties to enhance Sri Lanka’s overall tourism offering,” Gunewardene asserted.
Concurring with his views, Kehelpannala said: “We want to contribute towards the national vision in developing tourism, to meet its goal of attracting 2.5 million tourists by 2016. We intend to put Sri Lanka on the global tourism map as a destination that practices sustainable tourism in its absolute form, while ensuring that we deliver on expectations.”
Commenting on the group’s initiative to empowering its leisure group staff with training from the world-renowned Jumeirah Group-linked Emirates Academy of Hospitality Management (EAHM) in Dubai, Gunewardene said that it was not only investing in hardware but also in software, which he described as the most important aspect in terms of developing a cutting-edge product.
The initiative entails an investment of Rs. 40 million, with a further Rs. 50 million to be channeled for training and development by the end of this year.
source - www.ft.lk
Nimal, Dilith appointed to George Steuart Board
Top high net worth investors and shareholders Nimal Perera and Dilith Jayaweera have been appointed to the Board of Directors of George Steuart and Company Ltd.
The appointment by the Board on Tuesday was ratified yesterday at the company’s Annual General Meeting where the two new directors were also present.
Nimal and Dilith collectively own around 43% stake in George Steuart, which is considered as the oldest corporate in Sri Lanka with a 176 year history.
At the AGM certain conditions prevalent hitherto on transfer and sale of shares were withdrawn following amendments to the Articles of Association. This is likely to facilitate Nimal and Dilith’s planned acquisition of additional stakes in George Steuart when other holdings are available for sale.
Chairman Jayantha Wimalagooneratne, former Chairmen Scott Direckze and S. Skandakumar sold their stakes in George Steuart to Nimal and Dilith early this month whilst a further 30% stake is held by Group Managing Director Dubsy Kanagaratnam.
Via 12 subsidiaries GS Group’s business interests include export of tea, distribution of pharmaceuticals, travel and ticketing, airline representation, property development, assembly of telephones and other electronic products, freight forwarding, financial services, insurance broking and higher education.
source - www.ft.lk
The appointment by the Board on Tuesday was ratified yesterday at the company’s Annual General Meeting where the two new directors were also present.
Nimal and Dilith collectively own around 43% stake in George Steuart, which is considered as the oldest corporate in Sri Lanka with a 176 year history.
At the AGM certain conditions prevalent hitherto on transfer and sale of shares were withdrawn following amendments to the Articles of Association. This is likely to facilitate Nimal and Dilith’s planned acquisition of additional stakes in George Steuart when other holdings are available for sale.
Chairman Jayantha Wimalagooneratne, former Chairmen Scott Direckze and S. Skandakumar sold their stakes in George Steuart to Nimal and Dilith early this month whilst a further 30% stake is held by Group Managing Director Dubsy Kanagaratnam.
Via 12 subsidiaries GS Group’s business interests include export of tea, distribution of pharmaceuticals, travel and ticketing, airline representation, property development, assembly of telephones and other electronic products, freight forwarding, financial services, insurance broking and higher education.
source - www.ft.lk
Rs. 120 m Trade Finance and Investment IPO oversubscribed
Trade Finance and Investment said yesterday its Initial Public Offering (IPO) for six million shares was oversubscribed on the opening day.
The IPO at Rs. 20 each was to raise Rs. 120 million. The Company said Rs. 20 million of the proceeds of the IPO will be used to expand the branch network enabling the company to generate more customers and expand its deposit base. The company will also expand its head office in Union Place using 1000 square feet office space adjoining its premises.
The company plans to open two to three branches a year and will begin by opening a branch in Kilinochchi. By doing so it will expand its loan book which is 99 % tied up in the vehicle sector to micro financing aiding farmers who have been resettled in these areas by providing loans at low interest rates.
The company hopes to tie up 70 % of its loan portfolio in the vehicle sector and 30 % in micro finance in the future.
The company will cater to groups of 10 to 12 people through government agents in providing micro finance loans.
Trade Finance and Investment saw Net Interest Income grow 18 % over the same period last year to Rs.41 million in the four months ending July 2011.Profits in this period grew 50 % to Rs.32 million. However, in the year ending 31 March 2011 Interest Income declined 0.04 % to Rs.134 million as interest expenses rose 9 % to Rs.37 million. Profits in the year ended 31 March grew 29% to Rs.63 million. The company’s Net Asset Value per share is Rs.7.90. Annualised Earnings Per share for 2011/12 was Rs.3. The company’s Return on Capital Employed in the FY 2010/11 was 16.4 %. (DG)
source - www.ft.lk
The IPO at Rs. 20 each was to raise Rs. 120 million. The Company said Rs. 20 million of the proceeds of the IPO will be used to expand the branch network enabling the company to generate more customers and expand its deposit base. The company will also expand its head office in Union Place using 1000 square feet office space adjoining its premises.
The company plans to open two to three branches a year and will begin by opening a branch in Kilinochchi. By doing so it will expand its loan book which is 99 % tied up in the vehicle sector to micro financing aiding farmers who have been resettled in these areas by providing loans at low interest rates.
The company hopes to tie up 70 % of its loan portfolio in the vehicle sector and 30 % in micro finance in the future.
The company will cater to groups of 10 to 12 people through government agents in providing micro finance loans.
Trade Finance and Investment saw Net Interest Income grow 18 % over the same period last year to Rs.41 million in the four months ending July 2011.Profits in this period grew 50 % to Rs.32 million. However, in the year ending 31 March 2011 Interest Income declined 0.04 % to Rs.134 million as interest expenses rose 9 % to Rs.37 million. Profits in the year ended 31 March grew 29% to Rs.63 million. The company’s Net Asset Value per share is Rs.7.90. Annualised Earnings Per share for 2011/12 was Rs.3. The company’s Return on Capital Employed in the FY 2010/11 was 16.4 %. (DG)
source - www.ft.lk
The Fortress scoops prestigious global luxury hotel award
Sri Lanka’s iconic The Fortress Resort and Spa based in Koggala was again thrust into the global spotlight when it won a brace of trophies at the coveted World Luxury Hotel Awards 2011 held in Croatia last week, which included the accolade for ‘World’s Best Luxury Coastal Hotel’.
It also walked away with the premier ‘Luxury Coastal Hotel in Sri Lanka Award’ at the star-studded event. The fiercely-contested prizes were received on behalf of The Fortress by its General Manager Jan van Twest at the glamorous red-carpet gala held at the Regent Esplanade Zagreb Hotel, which paid host to an ensemble of guests from the international hotel industry.
Established in 2006, the WLHA are viewed by many as the world’s most prestigious awards insofar as only exceptional hotels, lodges and resorts operating within a luxury niche market are allowed to participate. Award winners within its various categories are deemed to be setting the benchmark in terms of their world class facilities and service excellence, and they act as a stamp of confidence and assurance within what is an increasingly competitive global market.
The Fortress Managing Director Sumith Adhihetty said: “This international recognition for the Fortress Resort reinforces the Sri Lankan luxury sector as amongst the best in the world. We are profoundly honoured to receive these awards – especially considering that The Fortress is still relatively young. It confirms our ongoing and passionate response to the demands of our evolving clientele.”
This was a reference to The Fortress’ other recent initiatives, the first being the launch of a Butler Service which saw a batch of 15 internationally-trained butlers placed on the service menu following a gruelling four-week programme held by the Australian Butler School. The second saw nearby Koggala Lake effectively transformed into a landing spot for the Sri Lankan Air Taxi Service through whom The Fortress has arranged exclusive flights on behalf of its guests.
“It is also a wonderful recognition for our dedicated team of hospitality professionals, who are providing a world class service, Sri Lankan-style,” continued Adhihetty.
Indeed, the hotel is fashioned in the style of a powerful fortress. Rising next to the beach, the resort’s walls enclose verdant gardens and water features, a spa featuring Ayurvedic treatments, a free-flow swimming pool, wine cellar, restaurants, boutiques and exquisitely appointed rooms, lofts and residences. The resort’s architecture forges historic Dutch and Portuguese styles with the motifs of Sri Lanka.
It will be of no surprise, then, that the Fortress Resort & Spa has been a frequent contender at the World Travel Awards, having been nominated in the ‘Indian Ocean’s Leading Hotel’ and ‘Indian Ocean’s Leading Luxury Resort’ categories for three consecutive years. It is one of just six hotels in Sri Lanka recognised by ‘Small Luxury Hotels of the World’ and is also a member of The Kiwi Collection, an exclusive list of high-end locations aimed at the insightful wayfarer.
WLHA Manager Marinique Truter stated: “I firmly believe that a World Luxury Hotel Award is the highest accolade that a hotel can receive, because it says more about the property than any brochure can communicate, any pictures can portray and any personal testimonial can express.”
“Outstanding hotels are those that surprise the guest with unexpected experience bonuses, experiences that are more about recognition of the guest than about any thread count,” said Truter.
This was a view reinforced by The Fortress Resorts PLC and Vallibel Group Chairman Dhammika Perera, who stated: “Sri Lanka’s potential for luxury tourism is indisputable and our innovative services essentially reflect a competitive effort on the part of this fine hotel to win brand loyalty. Our latest travel awards are a strong testament to this, and are also a challenge for us to ensure that The Fortress never fails in its efforts to raise the bar even further.”
The World Luxury Hotel Awards accounts for all categories in the Luxury Hotel industry. Award winners set the benchmark for luxury hotels in achieving recognition for their world class facilities and service excellence.
source - www.ft.lk
It also walked away with the premier ‘Luxury Coastal Hotel in Sri Lanka Award’ at the star-studded event. The fiercely-contested prizes were received on behalf of The Fortress by its General Manager Jan van Twest at the glamorous red-carpet gala held at the Regent Esplanade Zagreb Hotel, which paid host to an ensemble of guests from the international hotel industry.
Established in 2006, the WLHA are viewed by many as the world’s most prestigious awards insofar as only exceptional hotels, lodges and resorts operating within a luxury niche market are allowed to participate. Award winners within its various categories are deemed to be setting the benchmark in terms of their world class facilities and service excellence, and they act as a stamp of confidence and assurance within what is an increasingly competitive global market.
The Fortress Managing Director Sumith Adhihetty said: “This international recognition for the Fortress Resort reinforces the Sri Lankan luxury sector as amongst the best in the world. We are profoundly honoured to receive these awards – especially considering that The Fortress is still relatively young. It confirms our ongoing and passionate response to the demands of our evolving clientele.”
This was a reference to The Fortress’ other recent initiatives, the first being the launch of a Butler Service which saw a batch of 15 internationally-trained butlers placed on the service menu following a gruelling four-week programme held by the Australian Butler School. The second saw nearby Koggala Lake effectively transformed into a landing spot for the Sri Lankan Air Taxi Service through whom The Fortress has arranged exclusive flights on behalf of its guests.
“It is also a wonderful recognition for our dedicated team of hospitality professionals, who are providing a world class service, Sri Lankan-style,” continued Adhihetty.
Indeed, the hotel is fashioned in the style of a powerful fortress. Rising next to the beach, the resort’s walls enclose verdant gardens and water features, a spa featuring Ayurvedic treatments, a free-flow swimming pool, wine cellar, restaurants, boutiques and exquisitely appointed rooms, lofts and residences. The resort’s architecture forges historic Dutch and Portuguese styles with the motifs of Sri Lanka.
It will be of no surprise, then, that the Fortress Resort & Spa has been a frequent contender at the World Travel Awards, having been nominated in the ‘Indian Ocean’s Leading Hotel’ and ‘Indian Ocean’s Leading Luxury Resort’ categories for three consecutive years. It is one of just six hotels in Sri Lanka recognised by ‘Small Luxury Hotels of the World’ and is also a member of The Kiwi Collection, an exclusive list of high-end locations aimed at the insightful wayfarer.
WLHA Manager Marinique Truter stated: “I firmly believe that a World Luxury Hotel Award is the highest accolade that a hotel can receive, because it says more about the property than any brochure can communicate, any pictures can portray and any personal testimonial can express.”
“Outstanding hotels are those that surprise the guest with unexpected experience bonuses, experiences that are more about recognition of the guest than about any thread count,” said Truter.
This was a view reinforced by The Fortress Resorts PLC and Vallibel Group Chairman Dhammika Perera, who stated: “Sri Lanka’s potential for luxury tourism is indisputable and our innovative services essentially reflect a competitive effort on the part of this fine hotel to win brand loyalty. Our latest travel awards are a strong testament to this, and are also a challenge for us to ensure that The Fortress never fails in its efforts to raise the bar even further.”
The World Luxury Hotel Awards accounts for all categories in the Luxury Hotel industry. Award winners set the benchmark for luxury hotels in achieving recognition for their world class facilities and service excellence.
source - www.ft.lk
All-new Kia Picanto arrives in Sri Lanka
Revolutionary motoring design combined with superlative performance has raised the bar in the local compact ‘City Car’ segment with the launch of the new generation ‘Kia Picanto,’ the new global automotive sensation from the top Korean car manufacturer.
Stand-out styling that exudes solidity and maturity, consistent with Kia’s description of a ‘small car all grown up,’ has been backed up with advanced safety features, eco-friendly technology and an array of class-leading personalised options in the completely re-designed and re-engineered new five-door Picanto.
Available with either five-speed manual or four-speed automatic transmissions according to customer preferences, the new Picanto, complements other aspects with solid performance credentials. Its Kappa 1.0 MPI engine is structured to generate an optimum blend of power and economy and delivers a maximum of 69 ps at 6,200 rpm and enhanced fuel economy of 20.2 km/l.
In terms of design, for which the new Picanto has received rave reviews from fans around the world, highly individual styling and differentiated elements based on distinct modernity give the new model a unique appearance with a dignified and confident view from the front and a rear view with an edgy style that conveys wide proportional stability.
Strong emphasis on harmony is also evident in the new Picanto’s distinctive flowing lines which have been extended to its headlamps. The radiator grille and air dam have been blended to the overall design through well-balanced proportions. This distinct design has also been extended to its interior which has also been structured to ensure maximum comfort of occupants through the use of ergonomics.
Kia’s Chief Design Officer, Peter Schreyer, has said of this latest automotive sensation: “In profile, the 2012 Kia Picanto features significant sculpting and a very prominent rising character line. The result is a layering of light and shadow and this breaks up the height, giving the car a more sure-footed stance.”
Apart from extensively enhancing its appearance, the re-engineering of the new Picanto has further strengthened its safety credentials. The new Picanto has been awarded a Four Star rating from the European New Car Assessment Programme (Euro NCAP), a voluntary vehicle safety rating system recognised by motoring and consumer organisations in every EU country.
In addition, the strength of the body and frame of the new Picanto has been increased for steering stability, to absorb energy better and to provide protection in the event of a collision.
In the sphere of eco-friendliness too the new Picanto possesses strong credentials. It has been certified with an Environmental Certificate by TÜV Nord, an independent technical inspection organisation and has received ISO 14040 Life Cycle Assessment (LCA), as have Kia’s new Rio and Optima.
“The new Picanto is the ultimate compact urban car with its sporty design, strong performance, cutting edge personalised options and flexibility and is true value-for-money,” said Mahen Thambiah, Managing Director of Kia Motors (Lanka) Limited. “It is an exceptional vehicle that seamlessly blends great form and functionality and has the potential to raise the profile of users and the compact car segment.”
“The new Picanto is about being stylish without being excessively so and we are confident that its sophisticated appeal will be extremely well received in Sri Lanka,” he added.
The new Picanto’s vastly enhanced design however has not been achieved at the expense of functionality, or substantial storage space. The 60/40 split rear seat back can also be folded providing customers with much needed flexibility if and when the storage space at the back is insufficient.
For the convenience of occupants a range of standard features including high-tech options are available in the new Picanto. These include iPod AUX and USB connectivity, electric folding outside mirrors, Bluetooth hands free, power and tilt steering system, an audio system with a radio, CD, MP3 player and six speakers, LED side repeaters, safety sunroof, full auto temperature control, ISOFIX child seat anchor, a high-mounted stop lamp and a security indicator.
The Picanto experience can be customised further with a choice of striking interior packages and 10 body colours, clear white (solid), bright silver (metal), lemon grass (metal), alice blue (solid), titanium silver (metal), honey bee (metal), milky beige (metal), café mocha (metal), signal red (metal) and galaxy black (metal). In addition, customers also have the choice between 13,” 14” steel, 14” or 15” alloy wheels.
The new Picanto which made its debut at the Geneva Motor Show this year, will be offered at Rs. 1.65 million upwards (exclusive of VAT) and a 3 year/100,000 km warranty.
KIA Motors (Lanka) Limited, a wholly-owned subsidiary of Colonial Motors, has represented the KIA brand in Sri Lanka since 1995.
source - www.dailymirror.lk
Stand-out styling that exudes solidity and maturity, consistent with Kia’s description of a ‘small car all grown up,’ has been backed up with advanced safety features, eco-friendly technology and an array of class-leading personalised options in the completely re-designed and re-engineered new five-door Picanto.
Available with either five-speed manual or four-speed automatic transmissions according to customer preferences, the new Picanto, complements other aspects with solid performance credentials. Its Kappa 1.0 MPI engine is structured to generate an optimum blend of power and economy and delivers a maximum of 69 ps at 6,200 rpm and enhanced fuel economy of 20.2 km/l.
In terms of design, for which the new Picanto has received rave reviews from fans around the world, highly individual styling and differentiated elements based on distinct modernity give the new model a unique appearance with a dignified and confident view from the front and a rear view with an edgy style that conveys wide proportional stability.
Strong emphasis on harmony is also evident in the new Picanto’s distinctive flowing lines which have been extended to its headlamps. The radiator grille and air dam have been blended to the overall design through well-balanced proportions. This distinct design has also been extended to its interior which has also been structured to ensure maximum comfort of occupants through the use of ergonomics.
Kia’s Chief Design Officer, Peter Schreyer, has said of this latest automotive sensation: “In profile, the 2012 Kia Picanto features significant sculpting and a very prominent rising character line. The result is a layering of light and shadow and this breaks up the height, giving the car a more sure-footed stance.”
Apart from extensively enhancing its appearance, the re-engineering of the new Picanto has further strengthened its safety credentials. The new Picanto has been awarded a Four Star rating from the European New Car Assessment Programme (Euro NCAP), a voluntary vehicle safety rating system recognised by motoring and consumer organisations in every EU country.
In addition, the strength of the body and frame of the new Picanto has been increased for steering stability, to absorb energy better and to provide protection in the event of a collision.
In the sphere of eco-friendliness too the new Picanto possesses strong credentials. It has been certified with an Environmental Certificate by TÜV Nord, an independent technical inspection organisation and has received ISO 14040 Life Cycle Assessment (LCA), as have Kia’s new Rio and Optima.
“The new Picanto is the ultimate compact urban car with its sporty design, strong performance, cutting edge personalised options and flexibility and is true value-for-money,” said Mahen Thambiah, Managing Director of Kia Motors (Lanka) Limited. “It is an exceptional vehicle that seamlessly blends great form and functionality and has the potential to raise the profile of users and the compact car segment.”
“The new Picanto is about being stylish without being excessively so and we are confident that its sophisticated appeal will be extremely well received in Sri Lanka,” he added.
The new Picanto’s vastly enhanced design however has not been achieved at the expense of functionality, or substantial storage space. The 60/40 split rear seat back can also be folded providing customers with much needed flexibility if and when the storage space at the back is insufficient.
For the convenience of occupants a range of standard features including high-tech options are available in the new Picanto. These include iPod AUX and USB connectivity, electric folding outside mirrors, Bluetooth hands free, power and tilt steering system, an audio system with a radio, CD, MP3 player and six speakers, LED side repeaters, safety sunroof, full auto temperature control, ISOFIX child seat anchor, a high-mounted stop lamp and a security indicator.
The Picanto experience can be customised further with a choice of striking interior packages and 10 body colours, clear white (solid), bright silver (metal), lemon grass (metal), alice blue (solid), titanium silver (metal), honey bee (metal), milky beige (metal), café mocha (metal), signal red (metal) and galaxy black (metal). In addition, customers also have the choice between 13,” 14” steel, 14” or 15” alloy wheels.
The new Picanto which made its debut at the Geneva Motor Show this year, will be offered at Rs. 1.65 million upwards (exclusive of VAT) and a 3 year/100,000 km warranty.
KIA Motors (Lanka) Limited, a wholly-owned subsidiary of Colonial Motors, has represented the KIA brand in Sri Lanka since 1995.
source - www.dailymirror.lk
Trade Finance IPO oversubscribed
The Initial Public Offering of Trade Finance & Investments Limited has been oversubscribed before the scheduled date October 18, 2011.
The Registrars to the issue, Corporate Services (Pvt) Limited in a Stock Exchange disclosure said that since the issue is oversubscribed, the subscription list was closed at 4.30 pm yesterday.
Trade Finance and Investments offered six million ordinary voting shares at Rs. 20 each to be listed on the ‘Diri Savi board.According to the prospectus, the company plans to raise Rs.120 million from the IPO which would be used to enhance the company’s stated capital, enabling TIFL to expand its lending portfolio, the company has said.
The funds would also be used to open new branches in order to expand the firm’s deposit base.
source - www.dailymirror.lk
The Registrars to the issue, Corporate Services (Pvt) Limited in a Stock Exchange disclosure said that since the issue is oversubscribed, the subscription list was closed at 4.30 pm yesterday.
Trade Finance and Investments offered six million ordinary voting shares at Rs. 20 each to be listed on the ‘Diri Savi board.According to the prospectus, the company plans to raise Rs.120 million from the IPO which would be used to enhance the company’s stated capital, enabling TIFL to expand its lending portfolio, the company has said.
The funds would also be used to open new branches in order to expand the firm’s deposit base.
source - www.dailymirror.lk
Dilith, Nimal appointed to George Steuart board
By Indika Sakalasooriya
High net worth investors Nimal Perera and Dilith Jayaweera were able to better the rest who made failed bids for the Sri Lanka’s oldest commercial establishment, George Steuart group, as the duo was appointed as directors to the company’s board yesterday at the company’s Annul General Meeting (AGM).
According to Nimal Perera, shareholders of the George Steuart yesterday officially adopted the model articles under the new Company’s Act, casting aside all the provisions that restricted him and Dilith acquiring shares of the company.
The duo was appointed to the board seats vacated by the retirement of former George Steuart Chairman Scott Direckze and resignation of non-executive director A.A.M. Illiyas.
With this development, Nimal and Dilith gained the control of George Steuart despite the 30 percent stake with group’s Managing Director Dubsy Kanagaratnam, the acquisition which needs legal clearing.
Nimal and Dilith currently have about 42 percent of George Steuart and the rest with Dubsy Kanagaratnam and a company trust, which the duo would indirectly control. The current breakdown of acquisition shows that Divasa had acquired the holding of former Chairman Scott Dirckze (18%) and two other directors amounting to a total of 21% while Nimal had acquired stakes of current Chairman Jayantha Wimalagooneratne (13.2%) and former Chairman S. Skandakumar (8%), totaling 21%. After the full acquisition goes through, Nimal is expected to have around 30% stake in George Steuart while Dilith’s investment vehicle under which he is doing the investment, Divasa Equity will hold the controlling 51% stake.
George Steuart Company, with a history of over 175 years has witnessed the contemporary mercantile history of Sri Lanka which started with the coffee traded. Currently the company is involved in a number of businesses including tea exports, pharmaceuticals, travel and ticketing, airline representation, property development, assembly of telephones and other electronic products, freight forwarding, insurance and higher education.
The company is also one of the leading recruitment agencies in the country. According to analysts, the major attractions of the company to Nimal and Dilith would have been diverse business interests, legacy and the land bank it owns in the Colombo Fort area.
source - www.dailymirror.lk
High net worth investors Nimal Perera and Dilith Jayaweera were able to better the rest who made failed bids for the Sri Lanka’s oldest commercial establishment, George Steuart group, as the duo was appointed as directors to the company’s board yesterday at the company’s Annul General Meeting (AGM).
According to Nimal Perera, shareholders of the George Steuart yesterday officially adopted the model articles under the new Company’s Act, casting aside all the provisions that restricted him and Dilith acquiring shares of the company.
The duo was appointed to the board seats vacated by the retirement of former George Steuart Chairman Scott Direckze and resignation of non-executive director A.A.M. Illiyas.
With this development, Nimal and Dilith gained the control of George Steuart despite the 30 percent stake with group’s Managing Director Dubsy Kanagaratnam, the acquisition which needs legal clearing.
Nimal and Dilith currently have about 42 percent of George Steuart and the rest with Dubsy Kanagaratnam and a company trust, which the duo would indirectly control. The current breakdown of acquisition shows that Divasa had acquired the holding of former Chairman Scott Dirckze (18%) and two other directors amounting to a total of 21% while Nimal had acquired stakes of current Chairman Jayantha Wimalagooneratne (13.2%) and former Chairman S. Skandakumar (8%), totaling 21%. After the full acquisition goes through, Nimal is expected to have around 30% stake in George Steuart while Dilith’s investment vehicle under which he is doing the investment, Divasa Equity will hold the controlling 51% stake.
George Steuart Company, with a history of over 175 years has witnessed the contemporary mercantile history of Sri Lanka which started with the coffee traded. Currently the company is involved in a number of businesses including tea exports, pharmaceuticals, travel and ticketing, airline representation, property development, assembly of telephones and other electronic products, freight forwarding, insurance and higher education.
The company is also one of the leading recruitment agencies in the country. According to analysts, the major attractions of the company to Nimal and Dilith would have been diverse business interests, legacy and the land bank it owns in the Colombo Fort area.
source - www.dailymirror.lk
Capital market to get stakeholder consultative committee
Conceding to requests from various stakeholders, the regulator of the country’s capital market, the Securities and Exchange Commission (SEC), says it would create a ‘Capital Market Industry Consultative Committee’ which would bring together representatives from the range of stakeholders who would meet on a quarterly basis.
"The current positive economic and political environment in the country has emphasised the need for a capital market which can adapt to meet new challenges. Furthermore, the SEC’s task in determining policy has increased in complexity," the capital market watchdog said in a statement.
"A key recommendation which was put forward by industry participants at the recently concluded Capital Market Development Workshop was to establish a well represented Capital Market Industry Consultative Committee, which will take into account the views of various stakeholders that will have an impact on the capital market of Sri Lanka. This was to ensure that a more robust and inclusive development of the industry as well as to make recommendations for formulation of policy.
"The SEC at its 283rd meeting gave its concurrence to establish a Capital Market Industry Consultative Committee comprising of the following: Chairperson – SEC, Commission Member – SEC, Director General – SEC, A Deputy Governor of the Central Bank of Sri Lanka, Chairman - Colombo Stock Exchange, Chief Executive Officer - Colombo Stock Exchange, President - Colombo Stock Brokers Association or his nominee, President - Unit Trust Association of Sri Lanka or his nominee, President - Margin Provider’s Association, President – CFA, Debt Market Specialist, Equity Market Specialist, Equity Market Legal Specialist and an Investor Representative.
"It is believed that the expertise and experience of a well represented Committee will benefit the entire capital market of Sri Lanka and this committee is expected to meet on a quarterly basis," the SEC said.
source - www.island.lk
"The current positive economic and political environment in the country has emphasised the need for a capital market which can adapt to meet new challenges. Furthermore, the SEC’s task in determining policy has increased in complexity," the capital market watchdog said in a statement.
"A key recommendation which was put forward by industry participants at the recently concluded Capital Market Development Workshop was to establish a well represented Capital Market Industry Consultative Committee, which will take into account the views of various stakeholders that will have an impact on the capital market of Sri Lanka. This was to ensure that a more robust and inclusive development of the industry as well as to make recommendations for formulation of policy.
"The SEC at its 283rd meeting gave its concurrence to establish a Capital Market Industry Consultative Committee comprising of the following: Chairperson – SEC, Commission Member – SEC, Director General – SEC, A Deputy Governor of the Central Bank of Sri Lanka, Chairman - Colombo Stock Exchange, Chief Executive Officer - Colombo Stock Exchange, President - Colombo Stock Brokers Association or his nominee, President - Unit Trust Association of Sri Lanka or his nominee, President - Margin Provider’s Association, President – CFA, Debt Market Specialist, Equity Market Specialist, Equity Market Legal Specialist and an Investor Representative.
"It is believed that the expertise and experience of a well represented Committee will benefit the entire capital market of Sri Lanka and this committee is expected to meet on a quarterly basis," the SEC said.
source - www.island.lk
Sentiment stays dull on Colombo bourse
In another day of lackluster trading, the Colombo bourse continued to dip on a modest turnover of Rs.1.5 billion, up from the previous day’s Rs.1.39 billion, with both indices down – the All Share by 27.01% (0.40%) and the Milanka by 28.21 points (0.47%) with 72 gainers trailing 126 decliners.
"There was no improvement in sentiment," Prashan Fernando of Acuity Stockbrokers said. "The market was stronger during early trading and weakened later in the day."
An unusually large quantity of 208,000 Nestle, dominantly controlled by the foreign parent, was crossed yesterday at a price of Rs.875 per share. The counter which saw a total 234,800 shares traded closed Rs.14.30 down at Rs.880 generating the day’s top turnover of Rs.205.5 million.
"A foreign shareholder seems to have been the seller," Fernando of Acuity said. "Not many other than the parent have quantity and in addition to the parcels crossed there was a biggish parcel of 18,500 and another of 5,000 traded on the floor at the same Rs.875 price."
One other crossing of 50,000 Bukit Darah at Rs.1,070 was also posted yesterday with the counter gaining Rs.15.30 to close at Rs.1,070. Outside the big parcel there was one trade of 1,400 and several in smaller quantities.
Regnis continued to fly clearing the Rs.400 barrier closing Rs.56.20 up at Rs.401 with nearly 0.5 million shares done between Rs.345 and Rs.403 while Colombo Land was also up 50 cents to close at Rs.65.90 on 2.7 million shares done between Rs.65.50 and R.69.
Both Asian Alliance Insurance and Tess edged down, Asian down 20 cents to Rs.239.90 on over 0.4 million shares and Tess down 30 cents to Rs.5.60 on nearly 10.5 million shares.
Radiant Gems was down 90 cents to Rs.204 on nearly 0.3 million shares.
Among the blue chips, both JKH (83,700 shares) was down 90 cents to Rs.209 and Commercial Bank down Rs.1.30 to Rs.111.
source - www.island.lk
"There was no improvement in sentiment," Prashan Fernando of Acuity Stockbrokers said. "The market was stronger during early trading and weakened later in the day."
An unusually large quantity of 208,000 Nestle, dominantly controlled by the foreign parent, was crossed yesterday at a price of Rs.875 per share. The counter which saw a total 234,800 shares traded closed Rs.14.30 down at Rs.880 generating the day’s top turnover of Rs.205.5 million.
"A foreign shareholder seems to have been the seller," Fernando of Acuity said. "Not many other than the parent have quantity and in addition to the parcels crossed there was a biggish parcel of 18,500 and another of 5,000 traded on the floor at the same Rs.875 price."
One other crossing of 50,000 Bukit Darah at Rs.1,070 was also posted yesterday with the counter gaining Rs.15.30 to close at Rs.1,070. Outside the big parcel there was one trade of 1,400 and several in smaller quantities.
Regnis continued to fly clearing the Rs.400 barrier closing Rs.56.20 up at Rs.401 with nearly 0.5 million shares done between Rs.345 and Rs.403 while Colombo Land was also up 50 cents to close at Rs.65.90 on 2.7 million shares done between Rs.65.50 and R.69.
Both Asian Alliance Insurance and Tess edged down, Asian down 20 cents to Rs.239.90 on over 0.4 million shares and Tess down 30 cents to Rs.5.60 on nearly 10.5 million shares.
Radiant Gems was down 90 cents to Rs.204 on nearly 0.3 million shares.
Among the blue chips, both JKH (83,700 shares) was down 90 cents to Rs.209 and Commercial Bank down Rs.1.30 to Rs.111.
source - www.island.lk
CICL to get Rs. 1bn infusion for operational activities
* Company settles outstanding issues as it makes recovery
* 914 land buyers not received transfer deeds=164 depositors waiting for Rs. 116mn
By Mario Andree
After the strategic investment of Rs. 109 million at an eight to nine percent interest rate made by Investor Access Equity headed by Asanga Seneviratne to resolve longstanding issues of Ceylinco Investment Cooperation Limited (CICL), it is expected to receive another Rs. 1 billion to commence operations.
Seneviratne told The Island Financial Review that his company had loaned Rs. 109 million to CICL, a subsidy of Nation Lanka Finance PLC, with no security from the company at a low interest rate and expects to invest another Rs. 1 billion within six months for its operations, which according to him, has a bright future.
With the infusion of Rs. 109 million in March this year CICL, has been able to address several issues and hoped to transfer deeds to 420 out of 914 buyers next month who had paid the amounts in full.
According to the company investors have been waiting for more than three years to receive their deeds even after making the payments in full.
Also, CICL would settle 52 investors who had invested less than Rs. 100,000 in full with no interest component. There are 164 investors who made deposits at CICL valued at Rs. 116 million.
Answering a query raised by The Island Financial Review, CICL Director Nalin Jayetileke said the land value of the 420 deeds which would be released was Rs. 195 million
The other 494 buyers had been requested to continue making their payments after a sudden backdrop and according to Jayetileke 90 percent of them have reactivated payments. However, the company has failed to attract any new investors so far.
He said the company has identified several free hold plots of land worth Rs. 300 million mortgaged in banks which they hoped to release soon.
So far, the company has released land worth Rs. 450 million which will be given to the buyers.
source - www.island.lk
* 914 land buyers not received transfer deeds=164 depositors waiting for Rs. 116mn
By Mario Andree
After the strategic investment of Rs. 109 million at an eight to nine percent interest rate made by Investor Access Equity headed by Asanga Seneviratne to resolve longstanding issues of Ceylinco Investment Cooperation Limited (CICL), it is expected to receive another Rs. 1 billion to commence operations.
Seneviratne told The Island Financial Review that his company had loaned Rs. 109 million to CICL, a subsidy of Nation Lanka Finance PLC, with no security from the company at a low interest rate and expects to invest another Rs. 1 billion within six months for its operations, which according to him, has a bright future.
With the infusion of Rs. 109 million in March this year CICL, has been able to address several issues and hoped to transfer deeds to 420 out of 914 buyers next month who had paid the amounts in full.
According to the company investors have been waiting for more than three years to receive their deeds even after making the payments in full.
Also, CICL would settle 52 investors who had invested less than Rs. 100,000 in full with no interest component. There are 164 investors who made deposits at CICL valued at Rs. 116 million.
Answering a query raised by The Island Financial Review, CICL Director Nalin Jayetileke said the land value of the 420 deeds which would be released was Rs. 195 million
The other 494 buyers had been requested to continue making their payments after a sudden backdrop and according to Jayetileke 90 percent of them have reactivated payments. However, the company has failed to attract any new investors so far.
He said the company has identified several free hold plots of land worth Rs. 300 million mortgaged in banks which they hoped to release soon.
So far, the company has released land worth Rs. 450 million which will be given to the buyers.
source - www.island.lk
Wednesday, September 28, 2011
Sri Lanka markets watchdog forms consultative body
Sept 28, 2011 (LBO) - Sri Lanka’s Securities and Exchange Commission (SEC) has formed a consultative body that includes regulators, stock brokers and an investor representative to ensure a wide range of views in policy making.
The markets watchdog at its latest meeting gave its concurrence to establish a Capital Market Industry Consultative Committee, a statement said.
A committee was a key recommendation put forward by industry participants at a recent capital market development workshop held by the SEC.
The recommendation was for a consultative committee "which will take into account the views of various stakeholders that will have an impact on the capital market of Sri Lanka," the statement said.
"This was to ensure that a more robust and inclusive development of the industry as well as to make recommendations for formulation of policy."
The Capital Market Industry Consultative Committee comprises of the SEC chairperson, commission member and director general, a central bank deputy governor, chairman of the Colombo Stock Exchange and its chief executive among regulator participation.
It includes the Colombo Stock Brokers Association president, president of the Unit Trust Association, president, Margin Provider’s Association, president of the Chartered Financial Analyst programme, and specialists on debt and equity markets, an equity market legal specialist and an investor representative.
"It is believed that the expertise and experience of a well represented Committee will benefit the entire capital market of Sri Lanka and this committee is expected to meet on a quarterly basis," the SEC statement said.
source - http://www.lbo.lk/
The markets watchdog at its latest meeting gave its concurrence to establish a Capital Market Industry Consultative Committee, a statement said.
A committee was a key recommendation put forward by industry participants at a recent capital market development workshop held by the SEC.
The recommendation was for a consultative committee "which will take into account the views of various stakeholders that will have an impact on the capital market of Sri Lanka," the statement said.
"This was to ensure that a more robust and inclusive development of the industry as well as to make recommendations for formulation of policy."
The Capital Market Industry Consultative Committee comprises of the SEC chairperson, commission member and director general, a central bank deputy governor, chairman of the Colombo Stock Exchange and its chief executive among regulator participation.
It includes the Colombo Stock Brokers Association president, president of the Unit Trust Association, president, Margin Provider’s Association, president of the Chartered Financial Analyst programme, and specialists on debt and equity markets, an equity market legal specialist and an investor representative.
"It is believed that the expertise and experience of a well represented Committee will benefit the entire capital market of Sri Lanka and this committee is expected to meet on a quarterly basis," the SEC statement said.
source - http://www.lbo.lk/
Sri Lanka stocks end down 0.4-pct
Sept 28, 2011 (LBO) - Sri Lankan stocks closed weaker Wednesday after being stagnant for two days on rather thin turnover, brokers said.
The main All Share Price Index fell 0.40 percent (27.01 points) to 6,710.67, while the more liquid Milanka index fell 0.47 percent (28.21 points) to close below the 5,000 mark at 5,999.28, according to stock exchange figures.
Turnover was 1.5 billion rupees.
Nestle Lanka accounted for the day's highest turnover, closing at 875.70 rupees, down 14.30 with 234,800 shares traded, the bulk in three crossings or off-market private deals all at 875 rupees a share.
HVA Foods was the third biggest loser, falling 4.90 rupees to close at 54.50 with 522,600 shares traded.
Colombo Land & Development Company was the most actively traded stock, closing at 65.90 rupees, up 50 cents with over 2.7 million shares changing hands.
Fridge maker Regnis (Lanka) which had been pushed up by speculators, closed at 396.90 rupees, up 56.20, after hitting a high of 403 rupees.
source - www.lbo.lk
The main All Share Price Index fell 0.40 percent (27.01 points) to 6,710.67, while the more liquid Milanka index fell 0.47 percent (28.21 points) to close below the 5,000 mark at 5,999.28, according to stock exchange figures.
Turnover was 1.5 billion rupees.
Nestle Lanka accounted for the day's highest turnover, closing at 875.70 rupees, down 14.30 with 234,800 shares traded, the bulk in three crossings or off-market private deals all at 875 rupees a share.
HVA Foods was the third biggest loser, falling 4.90 rupees to close at 54.50 with 522,600 shares traded.
Colombo Land & Development Company was the most actively traded stock, closing at 65.90 rupees, up 50 cents with over 2.7 million shares changing hands.
Fridge maker Regnis (Lanka) which had been pushed up by speculators, closed at 396.90 rupees, up 56.20, after hitting a high of 403 rupees.
source - www.lbo.lk
Sri Lanka Dialog in deal with StarHub
Sept 28, 2011 (LBO) - Sri Lankan mobile operator Dialog Axiata has struck a deal with Singapore's StarHub mobile firm to offer customized international connectivity solutions to customers.
"The partnership is focused on delivering the lowest cost connectivity solutions with strict service levels between Sri Lanka and Singapore using each other’s network," a statement said
"Pre-activated bandwidth between Dialog and StarHub will enable faster roll out times for any connectivity solutions."
The firms will provide single point of service delivery for voice, data, video and TV requirements.
Kevin Lim, Vice President of Business Solutions, StarHub, said it will offer businesses in Singapore alternative routing capability to Sri Lanka as well as interconnection to other key South Asian countries such as Bangladesh and Pakistan.
"We are confident that those companies in Singapore with operations in southern Asia will benefit from this link which provides high-speed Internet access, business data exchange, video-conferencing and other forms of telecommunication services.”
Suresh Sidhu, Dialog Axiata’s Chief Officer-Enterprise and Global Business said Dialog continues to expand its international footprint with the partnership with StarHub.
source - www.lbo.lk
"The partnership is focused on delivering the lowest cost connectivity solutions with strict service levels between Sri Lanka and Singapore using each other’s network," a statement said
"Pre-activated bandwidth between Dialog and StarHub will enable faster roll out times for any connectivity solutions."
The firms will provide single point of service delivery for voice, data, video and TV requirements.
Kevin Lim, Vice President of Business Solutions, StarHub, said it will offer businesses in Singapore alternative routing capability to Sri Lanka as well as interconnection to other key South Asian countries such as Bangladesh and Pakistan.
"We are confident that those companies in Singapore with operations in southern Asia will benefit from this link which provides high-speed Internet access, business data exchange, video-conferencing and other forms of telecommunication services.”
Suresh Sidhu, Dialog Axiata’s Chief Officer-Enterprise and Global Business said Dialog continues to expand its international footprint with the partnership with StarHub.
source - www.lbo.lk
Sri Lanka KIA unit mulls more service stations, show rooms
Sept 28, 2011 (LBO) - The Sri Lankan agency for South Korea's KIA Motors is to set up three more service stations within the Colombo metropolitan region and then go outside the capital as sales soar.
KIA Motors (Lanka) has said it is to invest about a billion rupees in the next three years to expand its service facilities.
Mahen Thambiah, managing director KIA Motors Lanka, said their second service station is now being built at the Battaramulla, Pelawatta suburb at a cost of 250 million rupees and will open by June 2012.
"The facility will be able to repair 80 vehicles at a time," he told Vimasuma.com, our sister news website.
The firm has a service station now at Union Place in the heart of Colombo.
Thambiah said three more service stations will be set up in the suburbs of Peliyagoda, Ratmalana and Kalubowila with negotiations now underway to acquire land.
"In the second stage of our expansion we will go outside Colombo with service stations and show rooms in the towns of Kandy, Kurunegala and Matara," he said.
The firm has so far sold about 2,000 KIA vehicles and expects to end the year with sales of 2,500, around 200 percent more than 2010, he said.
source - www.lbo.lk
KIA Motors (Lanka) has said it is to invest about a billion rupees in the next three years to expand its service facilities.
Mahen Thambiah, managing director KIA Motors Lanka, said their second service station is now being built at the Battaramulla, Pelawatta suburb at a cost of 250 million rupees and will open by June 2012.
"The facility will be able to repair 80 vehicles at a time," he told Vimasuma.com, our sister news website.
The firm has a service station now at Union Place in the heart of Colombo.
Thambiah said three more service stations will be set up in the suburbs of Peliyagoda, Ratmalana and Kalubowila with negotiations now underway to acquire land.
"In the second stage of our expansion we will go outside Colombo with service stations and show rooms in the towns of Kandy, Kurunegala and Matara," he said.
The firm has so far sold about 2,000 KIA vehicles and expects to end the year with sales of 2,500, around 200 percent more than 2010, he said.
source - www.lbo.lk
Janashakthi wins ‘Business Innovation Award’ at Asian Leadership Awards
Janashakthi Insurance PLC was last weekend crowned with the acclaimed ‘Business Innovation Award’ at the prestigious Asian Leadership Awards held at the Taj Palace Hotel in Dubai.
The ALA Awards recognises achievers, super achievers and future business leaders and showcases the best of the best from Asia. It highlights, recognises and rewards their ability to steer their businesses through turbulent times, applying the best of business modules to manage and keep their missions afloat.
Janashakthi’s Head of Marketing Paddy Weerasekera said: “This superlative achievement is no doubt a result of our breakthrough New Product Developments, innovative channel developments and service enhancements which have set new standards in the insurance industry. Needless to say we’re both elated and humbled by this accolade where we have been lauded by an international jury.”
He said that Janashakthi was particularly honoured by this recognition. “Here is a fully home-grown brand winning from among top international brands. This international recognition has been due to our aggressive marketing and brand management strategies which were harnessed to secure market share and thereby enhance customer and shareholder value,” he added.
The ALA Awards are hosted by Asian Confederation of Businesses and supported by Stars of the Industry Group. Its strategic partners are CMO Asia, CMO Council and World Brand Congress.
The ALA Awards is dedicated to high level knowledge exchange through thought leadership and peer networking among decision makers across industry segments in Asia. Nearly 150 senior leaders and decision makers attended the gala awards ceremony besides bureaucrats from various countries and government officials, thus enabling sharing of knowledge and experiences.
Last month Janashakthi clinched top honours at the recent second CMO Asia Awards for Excellence in Branding and Marketing with the ‘Award for Brand Excellence’ in the Banking, Financial Services and Insurance category.
It also holds the singular honour of becoming the only Sri Lankan insurance company to be recognised in this category at the CMO awards which were recently held for the second consecutive year and was represented by several countries across Asia spanning from Australia to the Middle East.
Janashakthi clinched triple honours at the glittering SLIM Awards 2010, thus becoming the only insurance company in Sri Lanka to win the highest number of awards in the service category at this event.
Continuously winning an array of local and global awards, Janashakthi continues to create value for customers in its trail blazing path in Sri Lanka’s insurance industry.
Good corporate governance has established the image of Janashakthi as a socially responsible entity, delivering greater and consistent value to customers, employees, shareholders and the country at large during the sixteen years of its service to the nation.
source - www.ft.lk
The ALA Awards recognises achievers, super achievers and future business leaders and showcases the best of the best from Asia. It highlights, recognises and rewards their ability to steer their businesses through turbulent times, applying the best of business modules to manage and keep their missions afloat.
Janashakthi’s Head of Marketing Paddy Weerasekera said: “This superlative achievement is no doubt a result of our breakthrough New Product Developments, innovative channel developments and service enhancements which have set new standards in the insurance industry. Needless to say we’re both elated and humbled by this accolade where we have been lauded by an international jury.”
He said that Janashakthi was particularly honoured by this recognition. “Here is a fully home-grown brand winning from among top international brands. This international recognition has been due to our aggressive marketing and brand management strategies which were harnessed to secure market share and thereby enhance customer and shareholder value,” he added.
The ALA Awards are hosted by Asian Confederation of Businesses and supported by Stars of the Industry Group. Its strategic partners are CMO Asia, CMO Council and World Brand Congress.
The ALA Awards is dedicated to high level knowledge exchange through thought leadership and peer networking among decision makers across industry segments in Asia. Nearly 150 senior leaders and decision makers attended the gala awards ceremony besides bureaucrats from various countries and government officials, thus enabling sharing of knowledge and experiences.
Last month Janashakthi clinched top honours at the recent second CMO Asia Awards for Excellence in Branding and Marketing with the ‘Award for Brand Excellence’ in the Banking, Financial Services and Insurance category.
It also holds the singular honour of becoming the only Sri Lankan insurance company to be recognised in this category at the CMO awards which were recently held for the second consecutive year and was represented by several countries across Asia spanning from Australia to the Middle East.
Janashakthi clinched triple honours at the glittering SLIM Awards 2010, thus becoming the only insurance company in Sri Lanka to win the highest number of awards in the service category at this event.
Continuously winning an array of local and global awards, Janashakthi continues to create value for customers in its trail blazing path in Sri Lanka’s insurance industry.
Good corporate governance has established the image of Janashakthi as a socially responsible entity, delivering greater and consistent value to customers, employees, shareholders and the country at large during the sixteen years of its service to the nation.
source - www.ft.lk
JKH revamps leisure footprint with Chaaya Tranz, Chaaya Wild
■Hotels to be open for business on 1 Nov after US$ 16 m upgrade
By Marianne David
Top blue chip John Keells Holdings (JKH) yesterday formally announced the revamp of its footprint in the leisure sector with the opening of Chaaya Tranz Hikkaduwa and Chaaya Wild Yala from 1 November.
The former Coral Gardens and Yala Village have been completely refurbished with an investment of over US$ 16 million and will be operated under the ‘Chaaya Hotels & Resorts’ brand.
“Today, as we celebrate World Tourism Day, we are excited and proud to launch two products, which are very distinctly different and very exciting properties for us. We believe the two products will be the beginning of new tourism products for Sri Lanka and that we will be at the cutting-edge of development with them.
Our philosophy is to be the trendsetter in the hotel trade,” JKH Deputy Chairman and President of the Leisure group Ajit Gunewardene told the media yesterday.
The key drivers of the two new properties are Mario Stanic, who is the General Manager at Chaaya Tranz Hikkaduwa and Teddy Roland, Manager at Chaaya Wild Yala.
Showcasing the local flavours of Hikkaduwa, Chaaya Tranz Hikkaduwa would best be described as a “celebration” of the liberal lifestyle there, boasting vibrant interiors and luxurious spaces. The group has infused a total investment of US$ 12 million to transform the property, which is a 150-room resort, and will also make Chaaya Tranz its base for whale watching in Mirissa.
Sector Head – Sri Lankan Resorts of the John Keells Hotels Sector Jayantissa Kehelpannala said: “Chaaya Tranz truly transforms the very concept of tourism in the exciting seaside location. We’ve gone four star definitely, but we’ve maintained a subtle flavour of nostalgia that the old Coral Gardens evoked, while introducing our legendary standards and service. We have also created our very own brand of music, endemic to the property, by renowned composer Chris Dhason.”
The Architect behind the transformation, Channa Daswatte said: “Inspired by the party life Hikkaduwa is famed for, the old Coral Gardens which is part of Sri Lanka’s tourism history is being transformed into a resort that will face the rest of the century. We have gutted the hotel down to the structure and reworked its spatial configurations.”
Presenting an epic adventure into the wild, the former Yala Village turned Chaaya Wild is being re-launched as a world-class game lodge with an old world atmosphere which simultaneously boasts cutting-edge aspects, Daswatte added.
Chaaya Wild is certain to be a nature enthusiast’s dream come true, with the 66-chalet lodge placed in what could best be described as an extension of the Yala National Park with open boundaries to the surrounding wildlife.
“The team at Keells, together with Channa, set about transforming the former Yala Village into one that blends with the true concept of the wild… What have through Chaaya Wild is a unique proposition, a four star ‘game lodge’ which sits in the centre of all this wildlife activity, adding an aspect of luxurious creature comforts, which you would surely agree makes for a calming and relaxing time in the wild,” Kehelpannala said.
The resort’s offerings stem from responsible tourism practices aimed at conserving and being one with its precious environs. A roof top observation deck and bar would be a key attraction, offering a 360 degree view of the surrounding wilderness, while ‘Nature Trails,’ the dedicated naturalist team, will offer unique experiences that are wild and personal.
Both Chaaya Wild and Chaaya Tranz are set to offer very special excursions, as explained by Keells Hotel Management Services Head of Eco Tourism and Special Projects Chitral Jayatilake, who walked the audience through detailed presentations of wildlife experiences that guests could encounter at the properties.
The investments in the two properties come hot on the heels of the group’s large investment in the east coast in opening Chaaya Blu last year. With a combined investment of over US$ 16 million, the two new and distinctly unique properties are certain to enrich the country’s overall tourism offering.
The group has three Chaaya Hotels operating in Sri Lanka at present – Chaaya Village Habarana, Chaaya Citadel Kandy and Chaaya Blu Trincomalee – in addition to three in the Maldives. With the two new launches, Chaaya Hotels & Resorts, the group’s home-grown resort brand created in 2006, will now become the largest Sri Lankan resort brand with five unique properties in Sri Lanka and three in the Maldives.
For John Keells Group, tourism is a year‐long celebration, asserted Gunewardene, noting that the Leisure sector receives the largest capital commitment of the group, amounting to a near 40%. “We will continue to invest not only in increasing the size and reach of our hotel portfolio but in adding unique and districts properties to enhance Sri Lanka’s overall tourism offering,” Gunewardene asserted.
Concurring with his views, Kehelpannala said: “We want to contribute towards the national vision in developing tourism, to meet its goal of attracting 2.5 million tourists by 2016. We intend to put Sri Lanka on the global tourism map as a destination that practices sustainable tourism in its absolute form, while ensuring that we deliver on expectations.”
Commenting on the group’s initiative to empowering its leisure group staff with training from the world-renowned Jumeirah Group-linked Emirates Academy of Hospitality Management (EAHM) in Dubai, Gunewardene said that it was not only investing in hardware but also in software, which he described as the most important aspect in terms of developing a cutting-edge product.
The initiative entails an investment of Rs. 40 million, with a further Rs. 50 million to be channeled for training and development by the end of this year.
source - www.ft.lk
By Marianne David
Top blue chip John Keells Holdings (JKH) yesterday formally announced the revamp of its footprint in the leisure sector with the opening of Chaaya Tranz Hikkaduwa and Chaaya Wild Yala from 1 November.
The former Coral Gardens and Yala Village have been completely refurbished with an investment of over US$ 16 million and will be operated under the ‘Chaaya Hotels & Resorts’ brand.
“Today, as we celebrate World Tourism Day, we are excited and proud to launch two products, which are very distinctly different and very exciting properties for us. We believe the two products will be the beginning of new tourism products for Sri Lanka and that we will be at the cutting-edge of development with them.
Our philosophy is to be the trendsetter in the hotel trade,” JKH Deputy Chairman and President of the Leisure group Ajit Gunewardene told the media yesterday.
The key drivers of the two new properties are Mario Stanic, who is the General Manager at Chaaya Tranz Hikkaduwa and Teddy Roland, Manager at Chaaya Wild Yala.
Showcasing the local flavours of Hikkaduwa, Chaaya Tranz Hikkaduwa would best be described as a “celebration” of the liberal lifestyle there, boasting vibrant interiors and luxurious spaces. The group has infused a total investment of US$ 12 million to transform the property, which is a 150-room resort, and will also make Chaaya Tranz its base for whale watching in Mirissa.
Sector Head – Sri Lankan Resorts of the John Keells Hotels Sector Jayantissa Kehelpannala said: “Chaaya Tranz truly transforms the very concept of tourism in the exciting seaside location. We’ve gone four star definitely, but we’ve maintained a subtle flavour of nostalgia that the old Coral Gardens evoked, while introducing our legendary standards and service. We have also created our very own brand of music, endemic to the property, by renowned composer Chris Dhason.”
The Architect behind the transformation, Channa Daswatte said: “Inspired by the party life Hikkaduwa is famed for, the old Coral Gardens which is part of Sri Lanka’s tourism history is being transformed into a resort that will face the rest of the century. We have gutted the hotel down to the structure and reworked its spatial configurations.”
Presenting an epic adventure into the wild, the former Yala Village turned Chaaya Wild is being re-launched as a world-class game lodge with an old world atmosphere which simultaneously boasts cutting-edge aspects, Daswatte added.
Chaaya Wild is certain to be a nature enthusiast’s dream come true, with the 66-chalet lodge placed in what could best be described as an extension of the Yala National Park with open boundaries to the surrounding wildlife.
“The team at Keells, together with Channa, set about transforming the former Yala Village into one that blends with the true concept of the wild… What have through Chaaya Wild is a unique proposition, a four star ‘game lodge’ which sits in the centre of all this wildlife activity, adding an aspect of luxurious creature comforts, which you would surely agree makes for a calming and relaxing time in the wild,” Kehelpannala said.
The resort’s offerings stem from responsible tourism practices aimed at conserving and being one with its precious environs. A roof top observation deck and bar would be a key attraction, offering a 360 degree view of the surrounding wilderness, while ‘Nature Trails,’ the dedicated naturalist team, will offer unique experiences that are wild and personal.
Both Chaaya Wild and Chaaya Tranz are set to offer very special excursions, as explained by Keells Hotel Management Services Head of Eco Tourism and Special Projects Chitral Jayatilake, who walked the audience through detailed presentations of wildlife experiences that guests could encounter at the properties.
The investments in the two properties come hot on the heels of the group’s large investment in the east coast in opening Chaaya Blu last year. With a combined investment of over US$ 16 million, the two new and distinctly unique properties are certain to enrich the country’s overall tourism offering.
The group has three Chaaya Hotels operating in Sri Lanka at present – Chaaya Village Habarana, Chaaya Citadel Kandy and Chaaya Blu Trincomalee – in addition to three in the Maldives. With the two new launches, Chaaya Hotels & Resorts, the group’s home-grown resort brand created in 2006, will now become the largest Sri Lankan resort brand with five unique properties in Sri Lanka and three in the Maldives.
For John Keells Group, tourism is a year‐long celebration, asserted Gunewardene, noting that the Leisure sector receives the largest capital commitment of the group, amounting to a near 40%. “We will continue to invest not only in increasing the size and reach of our hotel portfolio but in adding unique and districts properties to enhance Sri Lanka’s overall tourism offering,” Gunewardene asserted.
Concurring with his views, Kehelpannala said: “We want to contribute towards the national vision in developing tourism, to meet its goal of attracting 2.5 million tourists by 2016. We intend to put Sri Lanka on the global tourism map as a destination that practices sustainable tourism in its absolute form, while ensuring that we deliver on expectations.”
Commenting on the group’s initiative to empowering its leisure group staff with training from the world-renowned Jumeirah Group-linked Emirates Academy of Hospitality Management (EAHM) in Dubai, Gunewardene said that it was not only investing in hardware but also in software, which he described as the most important aspect in terms of developing a cutting-edge product.
The initiative entails an investment of Rs. 40 million, with a further Rs. 50 million to be channeled for training and development by the end of this year.
source - www.ft.lk
Sri Lanka tea crop seen unlikely to match last year’s output
Sri Lanka’s tea production is unlikely to match last year’s levels given a continuing decline in crops owing to bad weather, a broker said.
August tea production fell eight percent to 23.9 million kilos from last year with the worst hit being the higher elevations, Asia Siyaka Commodities said.
Bad weather in September means crops are unlikely to match the September 2010 production of 25.5 million kilos.
“Based on the poor weather conditions experienced up country so far in September it looks unlikely that national production this year will match last year’s output,” the brokers said.
Even though tea crops in the first quarter were high, the subsequent drop in output has resulted in the cumulative total production to August dropping to 220.8 million kilos from 222.6 million kilos a year ago.
In August production of high grown teas - at high elevations on the eastern and western slopes of the central hills - fell 20 percent to 4.2 million kilos from a year ago.
“Mediums have declined 23 percent from 4.3 million kilos to 3.3 million kilos this year,” Asia Siyaka Commodities said in a report.
But production of low grown teas, cultivated mainly by small farmers in the south, has been maintained at a similar level to a year ago.
“The estates in the higher elevations have been hit hard by high wages, low crop and a weak market,” the brokers said.
“Continual overcast conditions and rain together with hot dry spells has restricted production from these elevations.
“This is the fifth consecutive month that Sri Lanka tea production has been lower than the previous year.”
The brokers said that a review of the main growing regions revealed that the high grown crop loss has come primarily from the eastern slopes.
“The main growing regions of Udapussellawa, Demodara, Hali Ella, Badulla, Madulsima and Malwatte have all reported lower production during the period January – August compared with a year ago,” the report said.
“In the mid grown areas on the eastern side, Namunukula and Passara, and Linugalla, and on the western slopes Kandy, Matale, Kurunegala and Madulkelle have recorded highest crop losses.” (LBO)
source - www.dailymirror.lk
August tea production fell eight percent to 23.9 million kilos from last year with the worst hit being the higher elevations, Asia Siyaka Commodities said.
Bad weather in September means crops are unlikely to match the September 2010 production of 25.5 million kilos.
“Based on the poor weather conditions experienced up country so far in September it looks unlikely that national production this year will match last year’s output,” the brokers said.
Even though tea crops in the first quarter were high, the subsequent drop in output has resulted in the cumulative total production to August dropping to 220.8 million kilos from 222.6 million kilos a year ago.
In August production of high grown teas - at high elevations on the eastern and western slopes of the central hills - fell 20 percent to 4.2 million kilos from a year ago.
“Mediums have declined 23 percent from 4.3 million kilos to 3.3 million kilos this year,” Asia Siyaka Commodities said in a report.
But production of low grown teas, cultivated mainly by small farmers in the south, has been maintained at a similar level to a year ago.
“The estates in the higher elevations have been hit hard by high wages, low crop and a weak market,” the brokers said.
“Continual overcast conditions and rain together with hot dry spells has restricted production from these elevations.
“This is the fifth consecutive month that Sri Lanka tea production has been lower than the previous year.”
The brokers said that a review of the main growing regions revealed that the high grown crop loss has come primarily from the eastern slopes.
“The main growing regions of Udapussellawa, Demodara, Hali Ella, Badulla, Madulsima and Malwatte have all reported lower production during the period January – August compared with a year ago,” the report said.
“In the mid grown areas on the eastern side, Namunukula and Passara, and Linugalla, and on the western slopes Kandy, Matale, Kurunegala and Madulkelle have recorded highest crop losses.” (LBO)
source - www.dailymirror.lk
SL steps in to tap int’l rubber surge
Sri Lanka is looking forward to promote value-added rubber exports and also reduce rubber imports to the country.
“Considering the increase in price of natural rubber in the international market, the cess on export of raw rubber, has been increased from Rs. 8 to Rs. 12 per kilo gram,” said Industry and Commerce Minister Rishad Bathiudeen. “The cess imposed on rubber exports will serve as a measure to channel more resources to the value added industry by discouraging exports in raw, unprocessed forms,” he added.
The Minister was addressing Parliament on the amendment made to the Sri Lanka Export Development Act No. 40 of 1979. The Amendment, by an Extraordinary Gazette Notification No. 1712/23 dated July 01, 2011 increases the cess on export of raw rubber, and was tabled on September 21 for ratification by the House. The order under the Sri Lanka Export Development Act was passed by the House on the same day.
The statement tabled by Minister Bathiudeen said: “In recent times, the prices for natural rubber have been in the upward trend in the international market. The price of a kilo gram of rubber, which was around Rs. 348 in January 2010, has increased to Rs. 611 in January 2011. While there is an increasing trend in the export of natural rubber, the government has given priority to the promotion of exporting finished rubber products as a policy. Considering the increase in price of natural rubber in the international market, the cess on export of raw rubber, has been increased from Rs. 8 to Rs. 12 per kilo gram or 2% of the F.O.B price whichever is higher. In fact, Sri Lanka Association of Manufacturers and Exporters of rubber products has, in a letter addressed to me recently, urged to revise the cess on export of natural rubber to Rs. 24 per kilo gram. Rubber manufacture is a major component of the Sri Lanka’s economy.
“As the world’s seventh largest natural rubber producing country, we offer many types and grades of rubber such as RSS, pale crepe, sole crepe, technically specified rubber and specialty rubber. Our rubber products are exported to sophisticated markets such as Europe and USA and do not have any problem in adhering to international standards. The range of products covers industrial products such as solid tyres, auto components, conveyor belts, hoses and tubes, while latex based products include industrial, household and surgical gloves. General rubber products include, doormats, rubber bands, sports goods, footwear and footwear components.”
The shortage faced by the industry has compelled the importation of raw rubber. Sri Lanka imported raw rubber to the value of US$ 101 million in 2010 and to the value of US$ 105 million from January to July this year. Last year, Sri Lanka exported rubber in raw form to the value of US$ 170 Million and rubber finished products to the value of US$ 567 million. Therefore, clearly, local raw rubber channelled to the industry will save valuable foreign exchange, it was noted.
source - www.dailymirror.lk
“Considering the increase in price of natural rubber in the international market, the cess on export of raw rubber, has been increased from Rs. 8 to Rs. 12 per kilo gram,” said Industry and Commerce Minister Rishad Bathiudeen. “The cess imposed on rubber exports will serve as a measure to channel more resources to the value added industry by discouraging exports in raw, unprocessed forms,” he added.
The Minister was addressing Parliament on the amendment made to the Sri Lanka Export Development Act No. 40 of 1979. The Amendment, by an Extraordinary Gazette Notification No. 1712/23 dated July 01, 2011 increases the cess on export of raw rubber, and was tabled on September 21 for ratification by the House. The order under the Sri Lanka Export Development Act was passed by the House on the same day.
The statement tabled by Minister Bathiudeen said: “In recent times, the prices for natural rubber have been in the upward trend in the international market. The price of a kilo gram of rubber, which was around Rs. 348 in January 2010, has increased to Rs. 611 in January 2011. While there is an increasing trend in the export of natural rubber, the government has given priority to the promotion of exporting finished rubber products as a policy. Considering the increase in price of natural rubber in the international market, the cess on export of raw rubber, has been increased from Rs. 8 to Rs. 12 per kilo gram or 2% of the F.O.B price whichever is higher. In fact, Sri Lanka Association of Manufacturers and Exporters of rubber products has, in a letter addressed to me recently, urged to revise the cess on export of natural rubber to Rs. 24 per kilo gram. Rubber manufacture is a major component of the Sri Lanka’s economy.
“As the world’s seventh largest natural rubber producing country, we offer many types and grades of rubber such as RSS, pale crepe, sole crepe, technically specified rubber and specialty rubber. Our rubber products are exported to sophisticated markets such as Europe and USA and do not have any problem in adhering to international standards. The range of products covers industrial products such as solid tyres, auto components, conveyor belts, hoses and tubes, while latex based products include industrial, household and surgical gloves. General rubber products include, doormats, rubber bands, sports goods, footwear and footwear components.”
The shortage faced by the industry has compelled the importation of raw rubber. Sri Lanka imported raw rubber to the value of US$ 101 million in 2010 and to the value of US$ 105 million from January to July this year. Last year, Sri Lanka exported rubber in raw form to the value of US$ 170 Million and rubber finished products to the value of US$ 567 million. Therefore, clearly, local raw rubber channelled to the industry will save valuable foreign exchange, it was noted.
source - www.dailymirror.lk
AAIC shares hit another record high
The shares of Asian Alliance Insurance PLC (AAIC) yesterday hit another record high of Rs.234.60, surpassing the previous high of Rs.221.60.The share opened trading at the previous day’s closing/highest price of Rs.221.60 and closed at Rs.233. The lowest price it traded during the day was Rs.215.10.
In contrast to the previous day’s trading, where the single largest trade was only 5, 000 shares, there were two crossings of 100, 000 shares and 98, 900 shares, both at Rs. 234.
Total volume of shares traded was 355, 300. The 10 percent price band imposed on the share will be removed today.
Following Richard Pieris group divesting 25 per cent stake at the mandatory offer, Softlogic Holdings PLC and Softlogic Capital PLC together held 98.59 per cent of AAIC.
On September 20, 1.8 million AAIC shares traded with two crossings of 750, 000 shares, each at Rs.121, which were believed to have bought by investor Dilith Jayaweera.
source - www.dailymirror.lk
In contrast to the previous day’s trading, where the single largest trade was only 5, 000 shares, there were two crossings of 100, 000 shares and 98, 900 shares, both at Rs. 234.
Total volume of shares traded was 355, 300. The 10 percent price band imposed on the share will be removed today.
Following Richard Pieris group divesting 25 per cent stake at the mandatory offer, Softlogic Holdings PLC and Softlogic Capital PLC together held 98.59 per cent of AAIC.
On September 20, 1.8 million AAIC shares traded with two crossings of 750, 000 shares, each at Rs.121, which were believed to have bought by investor Dilith Jayaweera.
source - www.dailymirror.lk
SEC to take legal actions against five investors
Securities and Exchange Commission of Sri Lanka (SEC) yesterday said that it will be taking legal action against five investors who have allegedly engaged in actions that falls under insider dealings provisions.
According to the SEC media statement, the five investors to whom notices of action were issued are SMB Leasing PLC employees.
The evidence following an investigation conducted by SEC has suggested that the aforesaid employees cum investors had allegedly purchased shares of SMB Leasing prior to information pertaining to rights issue of shares with attached warrants relating to SMB was disseminated to the Colombo Stock Exchange.
“The evidence elicited during the course of the above investigation suggested that the aforesaid investors, being employees of SMB, had been privy to the unpublished price-sensitive information pertaining to the Rights Issue of shares with attached warrants or at least regarding a new issue of shares relating to SMB at the time purchases in the said shares had been executed in their respective securities accounts,” the SEC statement said.
“As a result, a decision was reached that the purchase of SMB shares by the aforesaid investors as referred to above, fall within the Insider Dealing provisions contained in Section 32 of the SEC Act as amended,” it further noted.
source - www.dailymirror.lk
According to the SEC media statement, the five investors to whom notices of action were issued are SMB Leasing PLC employees.
The evidence following an investigation conducted by SEC has suggested that the aforesaid employees cum investors had allegedly purchased shares of SMB Leasing prior to information pertaining to rights issue of shares with attached warrants relating to SMB was disseminated to the Colombo Stock Exchange.
“The evidence elicited during the course of the above investigation suggested that the aforesaid investors, being employees of SMB, had been privy to the unpublished price-sensitive information pertaining to the Rights Issue of shares with attached warrants or at least regarding a new issue of shares relating to SMB at the time purchases in the said shares had been executed in their respective securities accounts,” the SEC statement said.
“As a result, a decision was reached that the purchase of SMB shares by the aforesaid investors as referred to above, fall within the Insider Dealing provisions contained in Section 32 of the SEC Act as amended,” it further noted.
source - www.dailymirror.lk
PCH mandatory offer for OGL not accepted
The mandatory offer extended by S.H. M Rishan and PCH Holdings for the remaining shares of Orient Garments PLC (OGL) concluded yesterday with no shareholders acceptance.
Currently Rishan and PCH hold 29.95% and 21.05% of OGL respectively.
As reported by the Mirror Business yesterday, majority of the valuation methods utilized by the independent advisor concluded that the offer price of Rs.28 was not attractive. However they also said that according to the net assets of OGL, the offer price was at a significant premium.
source - www.dailymirror.lk
Currently Rishan and PCH hold 29.95% and 21.05% of OGL respectively.
As reported by the Mirror Business yesterday, majority of the valuation methods utilized by the independent advisor concluded that the offer price of Rs.28 was not attractive. However they also said that according to the net assets of OGL, the offer price was at a significant premium.
source - www.dailymirror.lk
Bourse closes flat in dull day’s trading
The Colombo bourse closed virtually flat yesterday on a turnover of Rs.1.39 billion, down from the previous day’s Rs.1.42 billion, with both indices edging up marginally – the all Share by 1.66 points (0.02%) and the Milanka by 1.68 points (0.03%) with 106 decliners leading 88 gainers.
"The indices were up during early trading, at one stage by 30 points, but moved down by the close of trading in what was essentially a dull day," Prashan Fernando of Acuity Stockbrokers said. "Some counters like Regnis and Colombo Land that had been doing well recently moved up."
HVA Foods was the day’s top turnover generator gaining 80 cents to close at Rs.57 on 3.2 million shares traded between Rs.56 and Rs.62.80 contributing Rs.194.5 million to turnover. A couple of large parcels at Rs. 60 a share were among the trades.
Regnis followed, up Rs.22.30 to Rs.342.50 on over 0.3 million shares done between Rs.318.40 and Rs.342.90. Radiant Gems saw some volume but lost Rs.2.60 to close at Rs.204.10 on nearly 0.4 million shares done between Rs.203.10 and Rs.206.50.
Asian Alliance Insurance continued to gain, closing Rs.20.70 up at Rs.233 on nearly 0.4 million shares traded between Rs.215.10 and Rs.234.60. Colombo Land too was up Rs.3.20 to close at Rs.65 on nearly a million shares done between Rs.62.70 and Rs.66.90.
Other shares that showed volume included Tess Agro down 60 cents to close at Rs.6 on 10 million shares, Blue Diamonds, up 20 cents to close at Rs.8.90 on 6.7 million shares, Lanka Orix Finance up 30 cents to close at Rs.10.80 on 4.7 million shares and Blue Diamonds (non-voting) up 10 cents to close at Rs.4.10 on nearly 9 million shares.
Brokers said there was a considerable focus on what was described as ``punting stock’’ and no crossings had been posted.
Kandy Hotels announced a final dividend of Rs.0.16 per share for 2010/11 after shareholder approval at an AGM on Sept. 27. The share will trade XD on Sept. 28 with payment on Oct. 6
source - www.island.lk
"The indices were up during early trading, at one stage by 30 points, but moved down by the close of trading in what was essentially a dull day," Prashan Fernando of Acuity Stockbrokers said. "Some counters like Regnis and Colombo Land that had been doing well recently moved up."
HVA Foods was the day’s top turnover generator gaining 80 cents to close at Rs.57 on 3.2 million shares traded between Rs.56 and Rs.62.80 contributing Rs.194.5 million to turnover. A couple of large parcels at Rs. 60 a share were among the trades.
Regnis followed, up Rs.22.30 to Rs.342.50 on over 0.3 million shares done between Rs.318.40 and Rs.342.90. Radiant Gems saw some volume but lost Rs.2.60 to close at Rs.204.10 on nearly 0.4 million shares done between Rs.203.10 and Rs.206.50.
Asian Alliance Insurance continued to gain, closing Rs.20.70 up at Rs.233 on nearly 0.4 million shares traded between Rs.215.10 and Rs.234.60. Colombo Land too was up Rs.3.20 to close at Rs.65 on nearly a million shares done between Rs.62.70 and Rs.66.90.
Other shares that showed volume included Tess Agro down 60 cents to close at Rs.6 on 10 million shares, Blue Diamonds, up 20 cents to close at Rs.8.90 on 6.7 million shares, Lanka Orix Finance up 30 cents to close at Rs.10.80 on 4.7 million shares and Blue Diamonds (non-voting) up 10 cents to close at Rs.4.10 on nearly 9 million shares.
Brokers said there was a considerable focus on what was described as ``punting stock’’ and no crossings had been posted.
Kandy Hotels announced a final dividend of Rs.0.16 per share for 2010/11 after shareholder approval at an AGM on Sept. 27. The share will trade XD on Sept. 28 with payment on Oct. 6
source - www.island.lk
Five to be charged for insider dealing
The country’s capital market watchdog the Securities and Exchange of Commission of Sri Lanka (SEC) is to charge five employees of SMB Leasing PLC for alleged insider dealing.
Often criticised for being a ‘toothless’ regulator, this major clampdown on irregular market activities follows hot on the heals of two other major actions; one which resulted in a Rs. 10 million fine for non-disclosure and the other where several brokers were cautioned against suspect behavior with one investment advisor being charged for market manipulation.
SEC Director General Malik Cader issuing a statement yesterday said investigations in to certain share transactions of SMB Leasing had revealed that these five employees with access to unpublished price sensitive information had invested in shares or warrants of the company which contravened the SEC Act.
"The SEC by virtue of the powers vested in it under the provisions of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 (SEC Act) as amended, conducted an investigation pertaining to purchases made in the shares of SMB Leasing PLC (SMB) by five employees of the company prior to information pertaining to a Rights Issue of shares with attached warrants relating to SMB was disseminated to the Colombo Stock Exchange on 17thAugust 2010," the SEC statement said.
"The evidence elicited during the course of the above investigation suggested that the aforesaid investors, being employees of SMB, had been privy to the unpublished price sensitive information pertaining to the Rights Issue of shares with attached warrants or at least regarding a new issue of shares relating to SMB at the time purchases in the said shares had been executed in their respective securities accounts. As a result a decision was reached that the purchase of SMB shares by the aforesaid investors as referred to above, fall within the Insider Dealing provisions contained in Section 32 of the SEC Act as amended.
"In the above circumstances, the Members of the Commission, at its 286th Meeting, held on 7th September 2011, having considered the findings of the investigation pertaining to suspected Insider Dealing in the shares of SMB decided to issue Notice of Action to the five investors referred to above, intimating that proceedings will be instituted against them in terms of the provisions of the SEC Act as amended.
Consequently, Notices of Action were issued on the aforesaid investors in respect of having engaged in Insider Dealing in contravention of Section 32 of the above Act," the SEC said.
Earlier this month the SEC said it was filing action against one investment advisor for market manipulation which is an offence under the SEC Act and sent letters of caution to five other investment advisors, including a trainee, representing three stockbroker firms and two investors on suspicion for the same offence of market manipulation.
The action taken by the SEC was the imposition of fines totaling nearly Rs. 10 million on members of the Board of Directors of Environment Resources Investment PLC, this was in relation to offences of non-disclosure being compounded ‘without the admission of guilt’.
source - www.island.lk
Often criticised for being a ‘toothless’ regulator, this major clampdown on irregular market activities follows hot on the heals of two other major actions; one which resulted in a Rs. 10 million fine for non-disclosure and the other where several brokers were cautioned against suspect behavior with one investment advisor being charged for market manipulation.
SEC Director General Malik Cader issuing a statement yesterday said investigations in to certain share transactions of SMB Leasing had revealed that these five employees with access to unpublished price sensitive information had invested in shares or warrants of the company which contravened the SEC Act.
"The SEC by virtue of the powers vested in it under the provisions of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 (SEC Act) as amended, conducted an investigation pertaining to purchases made in the shares of SMB Leasing PLC (SMB) by five employees of the company prior to information pertaining to a Rights Issue of shares with attached warrants relating to SMB was disseminated to the Colombo Stock Exchange on 17thAugust 2010," the SEC statement said.
"The evidence elicited during the course of the above investigation suggested that the aforesaid investors, being employees of SMB, had been privy to the unpublished price sensitive information pertaining to the Rights Issue of shares with attached warrants or at least regarding a new issue of shares relating to SMB at the time purchases in the said shares had been executed in their respective securities accounts. As a result a decision was reached that the purchase of SMB shares by the aforesaid investors as referred to above, fall within the Insider Dealing provisions contained in Section 32 of the SEC Act as amended.
"In the above circumstances, the Members of the Commission, at its 286th Meeting, held on 7th September 2011, having considered the findings of the investigation pertaining to suspected Insider Dealing in the shares of SMB decided to issue Notice of Action to the five investors referred to above, intimating that proceedings will be instituted against them in terms of the provisions of the SEC Act as amended.
Consequently, Notices of Action were issued on the aforesaid investors in respect of having engaged in Insider Dealing in contravention of Section 32 of the above Act," the SEC said.
Earlier this month the SEC said it was filing action against one investment advisor for market manipulation which is an offence under the SEC Act and sent letters of caution to five other investment advisors, including a trainee, representing three stockbroker firms and two investors on suspicion for the same offence of market manipulation.
The action taken by the SEC was the imposition of fines totaling nearly Rs. 10 million on members of the Board of Directors of Environment Resources Investment PLC, this was in relation to offences of non-disclosure being compounded ‘without the admission of guilt’.
source - www.island.lk
Tuesday, September 27, 2011
Sri Lanka hires India bourse for DVP
Sept 27, 2011 (LBO) - The Colombo Stock Exchange (CSE) plans to introduce a delivery verses payment and risk management system by mid-2012, minimising risk by ensuring both ownership transfer and payment for securities occur simultaneously.
The CSE said it has hired the National Stock Exchange of India (NSE) to act as a consultant to implement the system for the settlement of all secondary market transactions in equity securities traded on the bourse.
"Delivery versus Payment (DVP) (provides for) a link between a securities transfer system and a funds transfer system that ensures that delivery occurs if, and only if, payment occurs," a stock exchange statement said.
"For the successful completion of the process brokers and other participants would have to take steps to convert to the new settlement mechanism and risk management practices," it said.
"This would entail meeting necessary technical requirements, streamlining of back office operations, participating in related training and adopting of certain procedures in particular with respect to the maintaining of liquid assets for margining requirements."
The CSE said its strategy for implementation of risk plans at the bourse envisions an extensive consultation process with market participants, custodians, investors and regulators.
CSE chairman Krishan Balendra said the introduction of a progressive risk management model will help modernise the CSE.
"In addition to size and liquidity, post-trade risk mitigation features prominently on leading market index selection criteria.
"As a frontier market, our transition to the more accepted emerging market level depends on these enhancements."
The statement said DVP is one of the best practices advocated by the International Organization of Securities Commissions and currently has been implemented in all leading bourses.
NSE, India's largest exchange by daily turnover and number of trades for both equities and derivative trading, would be acting as a consultant throughout the implementation process.
The NSE, based in Mumbai, is also the third largest stock exchange in the world in terms of the number of trades in equities.
NSE joint managing director Chitra Ramkrishna said NSE has a long-standing relationship with the Colombo Stock Exchange.
"We will assist CSE in setting up market infrastructure and implementing global best practices that enables CSE to further strengthen market safety and integrity."
source - www.lbo.lk
The CSE said it has hired the National Stock Exchange of India (NSE) to act as a consultant to implement the system for the settlement of all secondary market transactions in equity securities traded on the bourse.
"Delivery versus Payment (DVP) (provides for) a link between a securities transfer system and a funds transfer system that ensures that delivery occurs if, and only if, payment occurs," a stock exchange statement said.
"For the successful completion of the process brokers and other participants would have to take steps to convert to the new settlement mechanism and risk management practices," it said.
"This would entail meeting necessary technical requirements, streamlining of back office operations, participating in related training and adopting of certain procedures in particular with respect to the maintaining of liquid assets for margining requirements."
The CSE said its strategy for implementation of risk plans at the bourse envisions an extensive consultation process with market participants, custodians, investors and regulators.
CSE chairman Krishan Balendra said the introduction of a progressive risk management model will help modernise the CSE.
"In addition to size and liquidity, post-trade risk mitigation features prominently on leading market index selection criteria.
"As a frontier market, our transition to the more accepted emerging market level depends on these enhancements."
The statement said DVP is one of the best practices advocated by the International Organization of Securities Commissions and currently has been implemented in all leading bourses.
NSE, India's largest exchange by daily turnover and number of trades for both equities and derivative trading, would be acting as a consultant throughout the implementation process.
The NSE, based in Mumbai, is also the third largest stock exchange in the world in terms of the number of trades in equities.
NSE joint managing director Chitra Ramkrishna said NSE has a long-standing relationship with the Colombo Stock Exchange.
"We will assist CSE in setting up market infrastructure and implementing global best practices that enables CSE to further strengthen market safety and integrity."
source - www.lbo.lk
Sri Lanka stocks becalmed
Sept 27, 2011 (LBO) - Sri Lankan stocks were becalmed for the second day Tuesday with turnover also lower than usual amind continued trade in shares that had drawn speculators, brokers said.
The main All Share Price Index rose 0.02 percent (1.43 points) to 6,737.45, while the more liquid Milanka index rose 0.03 percent (1.77 points) to close at 6,027.58, according to stock exchange figures.
Turnover was 1.3 billion rupees.
HVA Foods was the most actively traded stock, with over 3.2 million shares done, and closing at 59.40 rupees, up 80 cents.
Radian Gems International was also actively traded with 380,500 shares done, closing at 209.70 rupees, down 2.60, after hitting a high of 226.50.
Active trading was also seen in fridge maker Regnis (Lanka) which closed at 340.70 rupees, up 22.30.
Asian Alliance, which has been acquired by the Softlogic group, closed at 234 rupees, up 20.70
Meanwhile, Sri Lanka Insurance Corporation said in a stock exchange filing it bought 29.3 million shares of Tess Agro or a 16.29 percent stake for between 3.90 rupees and 5.80 rupees a share.
source - www.lbo.lk
The main All Share Price Index rose 0.02 percent (1.43 points) to 6,737.45, while the more liquid Milanka index rose 0.03 percent (1.77 points) to close at 6,027.58, according to stock exchange figures.
Turnover was 1.3 billion rupees.
HVA Foods was the most actively traded stock, with over 3.2 million shares done, and closing at 59.40 rupees, up 80 cents.
Radian Gems International was also actively traded with 380,500 shares done, closing at 209.70 rupees, down 2.60, after hitting a high of 226.50.
Active trading was also seen in fridge maker Regnis (Lanka) which closed at 340.70 rupees, up 22.30.
Asian Alliance, which has been acquired by the Softlogic group, closed at 234 rupees, up 20.70
Meanwhile, Sri Lanka Insurance Corporation said in a stock exchange filing it bought 29.3 million shares of Tess Agro or a 16.29 percent stake for between 3.90 rupees and 5.80 rupees a share.
source - www.lbo.lk
Govt. seeking investor for KKS
String of other PPPs in the pipeline; Paranthan to also restart next year and Rs.1.2 b investment offered
Getting enthusiastic on Public-Private Partnerships, the Sri Lankan Government is planning to resume operations at the Kankesanthurai (KKS) cement factory with private sector investments by next year after the current renovation work is completed.
The State Resources and Investment Promotions Ministry is seeking a private sector investor for the venture and is hopeful that the matter can be settled before the end of the year.
The Paranthan chemical factory is also expected to restart operations with private investment next year. These will be the first two large scale factories beginning operations in the north if plans work out as expected.
The Sri Lanka Cement Corporation has already commenced restoring the KKS cement factory while taking action to assess the quality of the stock of clinker available within the premises.
Sri Lanka Cement Corporation Chairman Sisira Paranagama noted that the corporation was currently looking at several options to resume cement production.
The factory ceased operations in 1990 when the war between the security forces and the LTTE intensified. Despite hostilities ending two years ago, the factory has remained without private investment.
The corporation had imported 36,260 metric tonnes of ordinary Portland cement in 2010 under the ‘Kankesan’ brand and sold it at prices below market prices in order to supply quality cement at affordable prices, Paranagama said.
Construction industry experts have called on the factory to be restored to full capacity to reduce dependence on imports and provide cement at reasonable prices. They insist that the venture would provide encouragement to Sri Lanka’s Rs. 250 million building industry.
The State Resources and Investment Promotions Ministry is also planning a string of other PPPS including an Rs. 600 million Australian investor for the Embilipitiya paper factory.
A total of Rs. 1.2 billion has been offered for four loss-making State-owned enterprises that the Government is hoping to restructure with the help of private investors. The Government is in the process of restructuring 23 State enterprises and the first phase included four enterprises.
The Embilipitiya Paper Corporation, Kantale Sugar Company, Sri Lanka Rubber Products and Exports Company and the Ceylon Ceramics Corporation are the four institutions to be restructured.
The Ministry is currently in the process of studying the Expressions of Interest (EoIs) sent by private investors for the Kantale Sugar Company, Sri Lanka Rubber Products and Exports Company and the Ceylon Ceramics Corporation.
source - www.ft.lk
Getting enthusiastic on Public-Private Partnerships, the Sri Lankan Government is planning to resume operations at the Kankesanthurai (KKS) cement factory with private sector investments by next year after the current renovation work is completed.
The State Resources and Investment Promotions Ministry is seeking a private sector investor for the venture and is hopeful that the matter can be settled before the end of the year.
The Paranthan chemical factory is also expected to restart operations with private investment next year. These will be the first two large scale factories beginning operations in the north if plans work out as expected.
The Sri Lanka Cement Corporation has already commenced restoring the KKS cement factory while taking action to assess the quality of the stock of clinker available within the premises.
Sri Lanka Cement Corporation Chairman Sisira Paranagama noted that the corporation was currently looking at several options to resume cement production.
The factory ceased operations in 1990 when the war between the security forces and the LTTE intensified. Despite hostilities ending two years ago, the factory has remained without private investment.
The corporation had imported 36,260 metric tonnes of ordinary Portland cement in 2010 under the ‘Kankesan’ brand and sold it at prices below market prices in order to supply quality cement at affordable prices, Paranagama said.
Construction industry experts have called on the factory to be restored to full capacity to reduce dependence on imports and provide cement at reasonable prices. They insist that the venture would provide encouragement to Sri Lanka’s Rs. 250 million building industry.
The State Resources and Investment Promotions Ministry is also planning a string of other PPPS including an Rs. 600 million Australian investor for the Embilipitiya paper factory.
A total of Rs. 1.2 billion has been offered for four loss-making State-owned enterprises that the Government is hoping to restructure with the help of private investors. The Government is in the process of restructuring 23 State enterprises and the first phase included four enterprises.
The Embilipitiya Paper Corporation, Kantale Sugar Company, Sri Lanka Rubber Products and Exports Company and the Ceylon Ceramics Corporation are the four institutions to be restructured.
The Ministry is currently in the process of studying the Expressions of Interest (EoIs) sent by private investors for the Kantale Sugar Company, Sri Lanka Rubber Products and Exports Company and the Ceylon Ceramics Corporation.
source - www.ft.lk
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