Sri Lanka's NDB, DFCC hire Boston Consulting to advice on merger June 17, 2014 (LBO) - Sri Lanka's National Development Bank and DFCC Bank has engaged Boston Consulting Group (India) Pvt Ltd, to advice on a planned merger.The two banks are merging under a regulatory move to create a bigger entity. The banks said in a joint stock exchange filing that no final decision has been made on the merger.
298 on board crashed Malaysian flight, 154 Dutch: airline KUALA LUMPUR, July 18, 2014 (AFP) - There were 298 people, including 154 Dutch nationals, on board the Malaysia Airlines flight that crashed in strife-torn eastern Ukraine, the carrier said on Friday.The flight "was carrying a total number of 298 people -- comprising 283 passengers including three infants of various nationalities and 15 crew of Malaysian nationality," the airline said in an emailed statement.
There also were 43 Malaysians, including the crew and two infants, and 27 Australians, it said, updating earlier figures as the airline worked to verify passenger nationalities.
Twelve were Indonesians including an infant, nine were British, four were German, three were from the Philippines and one was Canadian.
The airline said four were Belgian but the Belgian foreign minister said five Belgians were on board.
Malaysia Airlines said the nationalities of 41 passengers remained unconfirmed.
Air traffic control lost contact with the Boeing 777-200 around 14:15 (12:15 GMT) near the Russian-Ukrainian border, Malaysia Airlines has said.
The flight took off from Schiphol airport in Amsterdam shortly after noon Thursday and was supposed to land in Kuala Lumpur at around 6:10 am Friday local time.
Malaysia Airlines will send a team to Ukraine on Friday to help with the investigation.
Another plane will also be made available to grieving relatives wanting to visit the crash site, an official said.The crash is the Netherlands' second-largest air disaster to date.
The country's largest happened in March 1977 when 238 Dutch citizens died at Tenerife in the Canary Islands when two Boeing 747s crashed with the loss of 582 lives.
The crash is a fresh blow to the flag carrier which, along with the Malaysian government, is still struggling to provide answers on the disappearance of flight MH370 on March 8 with 239 people aboard.
Benefits to Sri Lanka banks from pawning guarantee temporary: S&P July 17, 2014 (LBO) - Benefits from a state guarantee for gold-backed loans (pawning) will be temporary, a report by Standard & Poor's, a rating agency said."The credit guarantee for pawning loans will provide only brief respite to Sri Lanka's banking industry, which is still struggling to overcome the effects of declining gold prices," said Standard & Poor's credit analyst Deepali Seth-Chhabria said in a statement.
"The banking industry will remain vulnerable to the volatility in gold prices, given that pawning loans form a significant part of banks' loan books, unless essential structural and regulatory changes are implemented."
The guarantee encourages banks to lend up to 85 percent of the value of gold instead of around 60 percent.
Banks that loaned money when gold prices were around 1,700 US dollars an ounce, were hit by defaults when prices fell to 1200 to 1,300 dollars an ounce.
Banks then cut back on total pawning loans in 2013 and so far in the first quarter of 2014.
Standard & Poor's expects the overall volume of pawning loans to increase with new loans.
But a cap on interest rates could lower margins along with a premium that has to be paid to the Central Bank.The full statement is reproduced below:-
Sri Lanka's Loan Guarantee Will Benefit Its Banks, But Only For A While
SINGAPORE (Standard & Poor's) July 15, 2014--Sri Lanka's decision to guarantee pawning (gold-backed) loans could be a blessing for the country's troubled banks. But the reprieve is unlikely to last too long. That's according to a report titled "Sri Lanka's Pawning Loan Guarantee Could Temporarily Cushion Banks' Flagging Performance," that Standard & Poor's Ratings Services published today.
"The credit guarantee for pawning loans will provide only brief respite to Sri Lanka's banking industry, which is still struggling to overcome the effects of declining gold prices," said Standard & Poor's credit analyst Deepali Seth-Chhabria. "The banking industry will remain vulnerable to the volatility in gold prices, given that pawning loans form a significant part of banks' loan books, unless essential structural and regulatory changes are implemented."
The Sri Lankan central bank's credit guarantee scheme for pawning loans aims to increase funding to sectors that are important for economic development. Growth in funds to such sectors slowed last year as banks cut back on pawning loans following an increase in nonperforming loans (NPLs) in the pawning segment as gold prices declined. The scheme encourages banks to once again divert funds toward pawning--a segment that is already vulnerable to gold price volatility--and that too at higher loan-to-value ratios. Banks scaled back in both these areas last year as gold prices fell and NPLs rose.
"Banks may put off tightening their risk management systems to ensure limited losses in the pawning segment because the guarantee would provide a cushion against the losses," said Ms. Seth-Chhabria. "We believe that while relatively relaxed underwriting standards and regulations in the pawning segment resulted in strong loan growth in 2009-2012, they also contributed to the higher defaults thereafter."
Standard & Poor's expects the overall volume of pawning loans to increase as banks offer incremental credit under this scheme and the ones that had curbed lending in 2013 begin issuing new pawning loans. Nevertheless, the scheme could lower banks' margins on pawning loans because of a cap on the interest rate on loans offered under the scheme. In addition, operating costs for the pawning segment will likely increase because banks will have to pay the central bank a premium under the guarantee. But the reduction in credit costs should offset this increase.
Sri Lanka jails killers of British tourist COLOMBO, July 18, 2014 (AFP) - A Sri Lankan ruling party politician and three accomplices were Friday sentenced to 20 years in jai for murdering a British holidaymaker on Christmas Eve and raping his Russian partner.The Colombo High Court said town council chief Sampath Vidanapathirana was guilty of killing 32-year-old Khuram Shaikh, an International Red Cross aid worker, who had tried to stop a brawl at a southern beach resort on December 24, 2011.
After 33 days of hearing evidence, judge Rohini Walgama told a packed court house that Vidanapathirana, a member of President Mahinda Rajapakse's Freedom Alliance, and three others were guilty of all the charges. Two others were discharged.
All six of them were indicted in December after repeated allegations that there was an unnecessary delay in bringing the case to court, leading to suspicions they were being shielded by their political connections.
Britain's Prime Minister David Cameron had cited the murder of Shaikh, who was beaten then shot in the head, as an example of Colombo's failure to deliver justice.
Shaikh was holidaying in Sri Lanka during a break from his job in the Palestinian territory of Gaza where he was fitting prosthetic limbs.
Hotel manager Tharanga Peiris told the court earlier this year that she tried to stop him going to the aid of another hotel guest who was being beaten by the politician and his gang.
Peiris, manager of the Nature Resort in southern Sri Lanka, said she had a clear view of Vidanapathirana and his men during the attack.
Another hotel guest said that the attackers had "behaved like animals" and went on a rampage smashing plates, glasses, car windows and toppling a three-wheel taxi parked outside.
Shaikh's girlfriend, who was knocked unconscious after a brutal assault, returned to Sri Lanka this year to give evidence and identified one of her attackers in court.
She was not seen on Friday, but Shaikh's brother Nasir listened to the judgement being delivered in a packed courtroom.
The case was initially heard in the southern town of Tangalle, the hometown of the main accused, but shifted to the capital Colombo last year following allegations that the suspects were intimidating witnesses."There was a lot of media attention on this case," judge Walgama said while sentencing the four men. "This is an important case in our legal history and I was able to conclude the trial in just over three months of hearings."
It was not immediately clear if the men would appeal the verdict and the 20-year jail sentences. Two more accused in the case were discharged.
Sri Lanka shares close down 0.3-pct July 17, 2014 (LBO) - Sri Lanka's shares closed 0.31 percent lower on Thursday despite net foreign buying, brokers said.
The Colombo benchmark All Share Price Index closed 20.69 points lower at 6,721.87, down 0.31 percent. The S&P SL20 closed 13.58 points lower at 3,747.47, down 0.36 percent.
Turnover was 926.45 million rupees, down from 1.21 billion rupees a day earlier with 75 stocks closed positive against 124 negative.
John Keells Holdings closed 10 cents higher at 245.00 rupees with market transactions of 279.10 million rupees contributing 30 percent of the turnover.
JKH’s W0022 warrants closed 1.20 rupees higher at 65.90 rupees and its W0023 warrants closed 40 cents lower at 73.70 rupees.
HNB closed 1.30 rupees lower at 169.10 rupees with an off-market transaction of 21.93 million rupees changing hands at 173.00 rupees per share contributing 2 percent of the turnover.
E-Channelling closed 1.10 rupees higher at 16.80 rupees, attracting most number of trades during the day.Foreign investors bought 189.13 million rupees worth shares while selling 26.49 million rupees worth shares.
Sri Lanka Telecom closed 1.20 rupees lower at 55.00 rupees, contributing most to the index drop.
Lion Brewery Ceylon closed 13.90 rupees lower at 659.90 rupees and Distilleries closed 1.10 rupees higher at 204.90 rupees.
Ceylon Tobacco Company closed 2.50 rupees higher at 1,102.50 rupees and Hemas Holdings closed 70 cents higher at 48.90 rupees and.
BBC News to cut 400 jobs in austerity drive LONDON, July 17, 2014 (AFP) - The BBC said on Thursday it will cut 415 jobs from its news department in the latest cost-cutting measures by the world's largest public broadcaster.Director of News James Harding said the cuts over the next two years were part of savings needed as a result of a freeze in the licence fee, which all British households with a television must pay.
"It will be a testing time of uncertainty and change," the British Broadcasting Corporation quoted Harding as telling staff in a briefing at its headquarters in London.
But he said the BBC would create 195 new posts in the news division as part of a restructuring plan, meaning a net reduction of 220 full-time jobs overall.
BBC workers are set to go on strike on July 23 during the opening of the Commonwealth Games in Glasgow, Scotland over the layoffs.British Prime Minister David Cameron's coalition government froze the licence fee for six years in 2010 as part of sweeping austerity measures to cut a record deficit.
The BBC also announced 2,000 job cuts in November 2011.
BBC News currently employs around 8,400 people, including around 5,000 journalists, the corporation said.
China picks site for BRICS bank: reports SHANGHAI, July 17, 2014 (AFP) - China has already chosen a site for the future Shanghai headquarters of the BRICS development bank, state media said Thursday just two days after its creation.At a summit in Brazil, the BRICS group of emerging economic powers -- which also includes Russia, India, China and South Africa -- on Tuesday created the New Development Bank to finance infrastructure projects.
After drawn-out negotiations over the bank's location, BRICS leaders agreed to put its headquarters in China's commercial hub of Shanghai, which is seeking to become an international financial centre.
Shanghai will place the headquarters in the former site of the 2010 World Expo in the city's premier Pudong development zone, in the section where the old China Pavilion -- now an art museum -- was located, along with those of several Asian and Middle Eastern countries, local television reported.
The city cleared a five-square-kilometre (two-square-mile) site for the six-month expo and large plots are now unused, though some of the area has been redeveloped.
Chinese state media said the BRICS bank aims to reduce Western dominance of the global financial system, while criticising multi-lateral agencies like the World Bank and the International Monetary Fund.
"The old pattern in which the World Bank and the International Monetary Fund dominated the field will face competition from now on," the Global Times newspaper said in an editorial on Thursday.
"The launch of the BRICS bank with Shanghai as its headquarters is a testament to China's national strength, diplomatic capabilities and strategic position," said the newspaper, known for its nationalistic editorial stance.The Chinese government took a less strident tone. China's finance ministry said the bank would help the global recovery and drive long-term economic growth, according to a report by the official Xinhua news agency.
The BRICS grouping will base an Africa Regional Centre in South Africa, after Johannesburg lost out to host the headquarters
Cricket: Sri Lanka contain Proteas after de Kock's 50 GALLE, July 17, 2014 (AFP) - Rookie batsman Quinton de Kock hit a maiden half-century as South Africa moved to 331-7 at lunch on the second day of the first Test against Sri Lanka on Thursday.De Kock, playing his second Test after making his debut in February, hit six fours in his promising 90-ball innings after South Africa resumed at their overnight score of 268-5.
Left-hander Jean-Paul Duminy was batting on 22 with Vernon Philander on three at the break.
It turned out to be a mixed session for the visitors who added 63 runs off 30 overs while losing two wickets in hot and humid conditions at the Galle International Stadium.
Sri Lanka did well to contain the Proteas, especially since they were one bowler short with a split webbing almost ruling out pace spearhead Shaminda Eranga from the rest of the game.
Eranga had bowled just nine overs when he hurt his bowling hand while fielding on day one. The injury required eight stitches, according to the Sri Lankan media officials.
South Africa lost an early wicket when nightwatchman Dale Steyn (three) was foxed by a straighter one from paceman Suranga Lakmal (3-50) that crashed onto his stumps. De Kock, who scored a match-winning 128 in the recent third and final one-dayer against Sri Lanka in Hambantota, carried his form into the match, negotiating both the fast bowlers and spinners with ease.
A smashing cover-drive off slow bowler Dilruwan Perera (3-128) and another through point that raced to the boundary were the highlights of his innings.
But Perera earned his revenge when he sent back De Kock with a sharp turning delivery that the batsman edged in the slips to give Mahela Jayawardene his 198th catch.
Philander took 25 deliveries to get off the mark while Duminy also looked tentative at best during his 81-minute stay at the wicket.Hello Kitty designer defends cute character as cat turns 40 HONG KONG, July 17, 2014 (AFP) - The flamboyant designer of Japanese cartoon and global mega-brand Hello Kitty defended the cute cat against new rivals Thursday as the character prepares to celebrate her 40th birthday.Speaking on the sidelines of the Hong Kong Book Fair, Yuko Yamaguchi took the concept of life imitating art to another level, wearing a Kitty-style strawberry dress with dyed auburn hair piled into two buns topped with a red ribbon -- the cat's signature accessory.
As Kitty enters her next decade, she faces increasing competition from more cutting-edge cartoons like Brown and Cony, the bear and rabbit mascots of Tokyo-based messaging app LINE, which has taken Asia by storm in recent months.
But Yamaguchi insisted Kitty would cope with growing older in a digital age.
"There are new cartoon characters that are coming out daily... (but) I think Hello Kitty is the only one that can adapt to the changes in the world," Yamaguchi said.
The moon-faced mouthless white cat first appeared in 1974 on a coin purse in Japan and has since built up a worldwide fanbase, appearing on everything from handbags to sex toys.
Her image is licensed by Japanese company Sanrio, which says on its website that it makes more than US$5 billion dollars in retail sales each year. Hello Kitty is its flagship brand.
Yamaguchi, at the Hong Kong fair to tie in with its new Japan Pavilion, has been the lead designer of Hello Kitty since 1980 and promotes herself as the character's best friend.
"She is very motivated and open and wants to face the future," she says of the character.
There are plenty of detractors of Hello Kitty's sweetness -- entire blogs are dedicated to tearing down the cute icon, with online spoofs depicting her like a horror movie character.But Yamaguchi insists her appeal can endure.
"There are already three generations of fans that like Hello Kitty, so I hope that there will be more fans like that in the future, like people in a family loving Hello Kitty together," she said.
The main Hello Kitty 40th birthday celebrations will take place later this year, including the first ever fan convention, hosted in Los Angeles at the end of October.
The Codex Alimentarius Commission, the top global decision-making body for food standards, issued the decision at its ongoing annual meeting in Geneva.
"Arsenic is an environmental contaminant. It occurs naturally and is taken up by plants from the water and soil when they're growing, in particular rice," said World Health Organization food safety coordinator Angelika Tritscher.
The commission set a maximum of 0.02 milligrammes of arsenic per kilo of polished race -- the product that is traded and consumed.
"The main driver for Codex standards is trade. But when we talk about safety standards, the main purpose is clearly to protect the health of consumers," said Tritscher.
Arsenic occurs in the Earth's crust. Some of the heaviest concentrations are in Asia, where rice is a mainstay.
A key problem is paddy fields irrigated with water pumped from shallow wells containing arsenic-rich sediments.
Heavy rice consumption has been found to compound the impact of arsenic in drinking water.
"Since rice is a very important stable food for many countries and many regions of the world, a significant part of the global population is affected," Tritscher said.
Bangladesh has been a top concern, with tens of millions of rural dwellers exposed via wells drilled in the 1970s in "access-to-water" programmes.
Parts of Cambodia, China, India and Vietnam have also been affected.
Long-term exposure can cause cancer and skin lesions, Tritscher said. It is also linked to heart disease, diabetes and damage to the nervous system and brain.
Arsenic rarely grabs headlines in the same way as other food crises.
"It's not like you have an immediate, acute effect like you have with a salmonella outbreak," said Tritscher.
- No safe exposure level -
The 186-nation Codex commission is run by the WHO and fellow UN agency the Food and Agriculture Organization (FAO).
Its standards must be set down into national laws to take effect.
"We all expect our food to be safe and of good quality. We don't expect to get sick from our food," said senior FAO food standards officer Tom Heilandt.The rice decision followed years of research which fed into a policy-making process helmed by China and Japan.
"One of the core principles of Codex standards is that they are science-based," Tritscher said.
"The outcome of the assessments was that you cannot define a safe exposure level. The consequence is that you have to try to reduce exposure as much as possible," she added.
"We operate on the 'alara' principle -- as low as reasonably achievable -- which balances how low you can go without having to discard the majority of the food supply."
The commission also set out ways to reduce arsenic levels.
They include growing crops in raised beds instead of flooded fields, drying out paddies before harvest, and regular checks on water supplies.
Sri Lanka's Commercial Bank to buy Indra Finance July 17, 2014 (LBO) - Sri Lanka's Commercial Bank of Ceylon said it will acquire Indra Finance, a finance company linked to a top vehicle retailer for 870 million rupees.Indra Finance had 507 million rupees in equity 73 million rupees in profits and 2.0 billion rupees in assets according to the last balance sheet date.
Commercial Bank group had 587 billion rupees in assets.
Indra Finance does not have public deposits and is linked to Indra Traders, a top distributor of unregistered used vehicles imported mainly from Japan.Analysts say with lower cost funds from a bank, Commercial Bank could potentially gain a bigger share in around the 2,000 vehicles sold each year by Indra with leases averaging three million rupees.
The acquisition is part of a bank and finance company consolidation process mandated by the Central Bank to reduce the amount of finance and banking companies in the country, which is expected to make the sector stronger and easier to regulate.
Sri Lanka's Piramal Glass sees slight demand pick up July 16, 2014 (LBO) - Piramal Glass Ceylon Plc said domestic demand rose 8 percent in the June 2014 quarter from a year earlier and recurring profits were up with interest costs coming down.Recurring profit after tax rose to 86 million rupees in the June 2014 quarter from 61 million rupees a year earlier, helped by a 41 percent reduction in interest costs to 32 million rupees, the firm said.
The firm reported earnings of 9 cents per share for the quarter. Amid a rise in costs the gross profit margin declined marginally to 21 percent from 22 percent a year earlier.
Last year June quarter profits rose to 358 million rupees helped by a 296 million rupees capital gain from a land sale.
The firm said it had also repaid most of its long term loans.
Sri Lanka is recovering from a balance of payments crisis triggered by a credit bubble worsened by bank loan funded energy subsidies by the state, where an interest rate rise was resisted by the Central Bank through sterilized forex sales.
The subsequent adjustments which also involved currency depreciation and a rate hike, hit domestic demand and credit, slowing activity.
Revenues rose to 1.244 million rupees from 1223 million rupees despite a fall in export sales by 19 percent to 251 million rupees.
The firm said exports to India had been hurt for several quarters due to currency depreciation in that country but were now recovering.
Domestic demand had also begun to pick, Piramal Glass said rising 8 percent to 994 million rupees.
Sri Lanka trade deficit down amid weak credit in May July 14, 2014 (LBO) - Sri Lanka's exports rose 11.1 percent to 882.1 million US dollars in May 2014 from a year earlier led by apparel exports that rose 14.5 percent to 365.1 million US dollars, official data showed.Agriculture exports rose 21.1 percent to 239.9 million US dollars with tea up 9.7 percent to 140.6 million US dollars.
Imports fell 17.6 percent to 1,275.5 million US dollars with investment goods down 25.2 percent to 279.9 million US dollars and fuel imports down 35.4 percent to 208.4 million US dollars.
Rising exports would usually trigger more imports, but Sri Lanka is currently experiencing weak credit growth resulting savings of some market participants not being spent through the banking system.
In the five months to May exports rose 15.7 percent to 4.4 billion US dollars and imports fell 1.5 percent to 7,467.9 million US dollars.
The trade deficit was down 19.3 percent to 3,014.7 million US dollars.Sri Lanka has a trade deficit because domestic agents spend dollars flowing from outside the merchandise trade account especially such as from remittances (exports of labour) and borrowings (exports of debt).
The central bank said worker remittances rose 10.5 percent to 2.7 billion US dollars and tourism earnings were up 35.1 percent to 901 million US dollars. Gross inflows to government were up 33.3 percent to 3,201 million US dollars.
China's growth accelerates to 7.5-pct in second quarter: govt BEIJING, July 16, 2014 (AFP) - China's economic growth hit 7.5 percent year-on-year in April-June, official data showed Wednesday, ahead of expectations as the world's second-largest economy was boosted by government stimulus.The second-quarter figure announced by the National Bureau of Statistics compared with growth of 7.4 percent in the previous three months and exceeded the median forecast of 7.4 percent in a survey of 17 economists by AFP.
"Generally speaking, China's economy showed good momentum of stable and moderate growth in the first half-year," the NBS said in a statement.
"However we should keep in mind that the domestic and international economic environment is still complicated and the national economy still faces many challenges."The NBS also said China's economy expanded 7.4 percent in the first half of the year.
The results came after Beijing introduced a series of policies in April in response to concerns over slowing growth, including tax breaks for small enterprises, targeted infrastructure spending and the encouragement of lending in rural areas and to small companies.
Separately, the NBS said China's industrial production, which measures output at factories, workshops and mines, rose 9.2 percent year-on-year in June.
Retail sales, a key indicator of consumer spending, increased 12.4 percent in the same month, while fixed asset investment, a measure of government spending on infrastructure, rose 17.3 percent on-year in the first six months.
Cricket: Sri Lanka plan memorable farewell for Jayawardene GALLE, July 15, 2014 (AFP) - Sri Lanka are planning to give star batsman Mahela Jayawardene a fitting farewell by winning his remaining matches, captain Angelo Mathews said ahead of the first Test against South Africa starting Wednesday.On Monday, Jayawardene announced he will retire from the longest format of the game in August, after the two-Test rubber against South Africa followed by two matches against Pakistan (Aug 6-18).
The 37-year-old right hander will only be available for one-day internationals, having also retired from Twenty20 cricket in April this year.
"We need a player like him in the team, but he (Jayawardene) has decided to say goodbye," Mathews said at a pre-match press conference in Galle on Tuesday.
"If we can send him off by winning all four Tests it will be great."
Jayawardene has been the batting mainstay for Sri Lanka since his debut against India in 1997 and has amassed 11,493 Test runs over a career spanning 145 Tests.
With 33 hundreds and 48 fifties in his kitty, he is the joint sixth-highest run-getter in Test cricket along with teammate Kumar Sangakkara (11,493).
Mathews conceded it would be tough for his team to fill the shoes of Jayawardene.
"He's been tremendous for us in the past 15 years or so, scoring so many runs. His contribution to the team has been unbelievable. So it's difficult to replace him.
"But that is the challenge we face in the future... new players should accept this challenge and play well," the all-rounder said.
The immediate task at hand for the home team is to get the better of South Africa who won the recent one-day series 2-1 with an emphatic 82-run win in the decider last Saturday at Hambantota.
It was the first one-day series victory for South Africa on the island.
The visitors have a new skipper in Hashim Amla, who is set to become South Africa's first non-white player to lead the side permanently as it goes through a rebuilding phase after the retirements of Test greats Graeme Smith and Jacques Kallis.
Mathews said South Africa had the players who could make the absence of stalwarts count for little.
"They've still got these very good players in the team and they are a very strong team to beat whether you play them at home or away as they showed us in the one-day series," he said."They are a very balanced team and we have to be at our best to beat them, it's a huge challenge," said Mathews who has been in top form since being named the captain last February.
The second and final Test will be played in Colombo from July 24-28.
Sri Lanka stocks close up 0.6-pct July 14, 2014 (LBO) - Sri Lanka's stocks closed 0.56 percent higher on Monday extending the gains of food, beverages and tobacco sector amid low foreign participation, brokers said.
The Colombo benchmark All Share Price Index closed 37.63 points higher at 6,699.03, up 0.56 percent. The S&P SL20 closed 13.07 points higher at 3,721.23, up 0.35 percent.
Turnover was 597.19 million rupees, down from 1.67 billion rupees last Friday with 114 stocks closed positive against 68 negative.
DIMO closed 29.90 rupees higher at 564.10 rupees with an off-market transaction of 50.05 million rupees changing hands at 550.00 rupees per share contributing 8 percent of the turnover.
Sierra Cables closed 10 cents lower at 2.10 rupees and FLC Hydro Power closed flat at 6.30 rupees, attracting most number of trades during the day.
Foreign investors bought 84.99 million rupees worth shares while selling 56.65 million rupees worth shares.
Lion Brewery Ceylon closed 89.10 rupees higher at 684.20 rupees, contributing most to the index gain.
Dialog Axiata closed 30 cents higher at 11.20 rupees and Sri Lanka Telecom closed 10 cents higher at 56.10 rupees.
Ceylon Tobacco Company closed 5.60 rupees higher at 1,107.30 rupees and Ceylon Tea Services closed 17.50 rupees lower at 700.50 rupees.Aitken Spence closed 1.10 rupees lower at 107.00 rupees and John Keells Holdings closed 30 cents higher at 240.30 rupees.
JKH’s W0022 warrants closed 20 cents lower at 63.90 rupees and its W0023 warrants closed 40 cents lower at 73.90 rupees.
Netherlands sees expanding trade and investments with Sri Lanka Aug 15, 2014 (LBO) - Netherlands is seeking more trade and investment links with Sri Lanka in agriculture, water and health seen as growth areas, with funding also available, officials said."We are actively looking for new trading partners around the world," visiting Dutch Vice-Minister for Foreign Trade Simon Mits, who led a trade mission to Colombo told reporters.
"We are of the firm belief that trade is a two way street that it is definitely a win-win. We want to explore new opportunities."
Netherlands had an ageing population where it developed expertise in diagnostics and non-communicable diseases which was a challenge also faced by Sri Lanka.
Netherlands also had expertise in water, dealing with floods and seawater and Sri Lanka was also seeking to improve drinking water and sanitation islandwide.
Mits said bi-lateral trade with Sri Lanka was 200 million US dollars a year and was growing at 10 percent year.
Several companies in the Dutch trade delegation already had relationships with Sri Lanka.
Van De Knaap group of companies had factories in Sri Lanka producing and exporting cocopeat employing around 500 people, director Gerard van Dieen said.
Enraf-Nonius was which was in healthcare was providing turnkey solutions to two hospitals in Hambantota and Nuwara Eliya in Sri Lanka, Chief Executive Ken de Jong said.
In 2005 the Netherlands had decided to end foreign aid to following decision to focus on the poorest countries of the world with Sri Lanka no longer considered among them.
"That does not mean we don't have other funds available. We have substantial funds available where Sri Lanka can have profit," Mits said."The potential of Sri Lanka we think can be best be unlocked by trade relations, by investment exchange, by knowledge. And this is why we are shifting from aid to trade."
Netherlands had just opened a new fund, the Dutch Good Growth Fund (DGGF), which is expected to disburse about 700 million Euros over the three to four years.
"This fund supports Dutch entrepreneurs and SMEs in emerging markets and and developing countries by offering a source of finance," Mits said.
"It can also be used by entrepreneurs in Sri Lanka to set up a joint venture."
It can also provide export credit and insurance to reduce counterparty risks of trade deals.
Hans Bartelds from Netherlands based Rabobank group which had a focus on agriculture and co-operatives said he already working on a transaction using the new fund with Sri Lanka.
Rabobank was financing the import of heifers from Australia to Sri Lanka. It had also structured a 100 million US dollar deal to finance 463 rural bridges.
Other companies in the delegation included Vitens Evides International which had expertise in urban water Eijkelkamp Earth Sampling group which specialized in environmental soil and ground water research and monitoring and consultancy.
Sri Lanka shares close up 0.2-pct July 16, 2014 (LBO) - Sri Lanka's shares closed 0.22 percent higher on Wednesday with continued foreign inflows extending gains further, brokers said.
The Colombo benchmark All Share Price Index closed 14.77 points higher at 6,742.56, up 0.22 percent. The S&P SL20 closed 10.79 points higher at 3,761.05, up 0.29 percent.
Turnover was 1.21 billion rupees, down from 2.19 billion rupees a day earlier with 105 stocks closed positive against 98 negative.
Distilleries closed 1.20 rupees lower at 203.80 rupees with an off-market transaction of 81.60 million rupees changing hands at 204.00 rupees per share contributing 7 percent of the turnover.
John Keells Holdings closed 2.50 rupees higher at 244.90 rupees with market transactions of 374.35 million rupees contributing 31 percent of the turnover.
JKH’s W0022 warrants closed 50 cents higher at 64.70 rupees and its W0023 warrants closed 60 cents lower at 74.10 rupees.
The aggregate value of all off-the-floor deals represented 14 percent of the turnover.
PC Pharma closed 10 cents higher at 3.20 rupees and E-Channelling closed 2.10 rupees higher at 15.70 rupees, attracting most number of trades during the day.
Foreign investors bought 452.04 million rupees worth shares while selling 125.62 million rupees worth shares.Bukit Darah closed 25.30 rupees higher at 700.00 rupees, contributing most to the index gain.
Carson Cumberbatch closed 10.20 rupees higher at 460.20 rupees and Lion Brewery Ceylon closed 21.70 rupees higher at 673.80 rupees.
Sri Lanka shares close up 0.4-pct July 15, 2014 (LBO) - Sri Lanka's stocks closed 0.43 percent higher with diversified stocks gaining despite strong foreign buying and selling, brokers said.
The Colombo benchmark All Share Price Index closed 28.76 points higher at 6,727.79, up 0.43 percent. The S&P SL20 closed 29.03 points higher at 3,750.26, up 0.78 percent.
Turnover was 2.19 billion rupees, up from 597.19 million rupees a day earlier with 107 stocks closed positive against 87 negative.
Distilleries closed 80 cents higher at 205.00 rupees with two off-market transactions of 816.00 million rupees changing hands at 204.00 rupees per share contributing 37 percent of the turnover.
The aggregate value of all off-the-floor deals represented 56 percent of the turnover.
PC Pharma closed 30 cents higher at 3.10 rupees and PCH Holdings closed 20 cents higher at 3.80 rupees, attracting most number of trades during the day.
Foreign investors bought 1.00 billion rupees worth shares while selling 952.31 million rupees worth shares.
Carson Cumberbatch closed 30.00 rupees higher at 450.00 rupees and Bukit Darah closed 29.70 rupees higher at 674.70 rupees, contributing most to the index gain.
Nestle Lanka closed 18.60 rupees higher at 2,090.00 rupees and John Keells Holdings closed 2.10 rupees higher at 242.40 rupees.JKH’s W0022 warrants closed 30 cents higher at 64.20 rupees and its W0023 warrants closed 80 cents higher at 74.70 rupees.
Lion Brewery Ceylon closed 32.10 rupees lower at 652.10 rupees and Ceylon Tobacco Company closed 5.00 rupees lower at 1,102.30 rupees.
Jegatheesan Durairatnam has been appointed as the new managing director and chief executive officer of the Commercial Bank, the company said in a stock exchange filing.
Commercial Bank appoints S Renganathan as Chief Operating Officer July 16, 2014 (LBO) - Sri Lanka's Commercial Bank of Ceylon said Sivakrishnarajah Renganathan, the Bank’s Deputy General Manager – Personal Banking has been appointed Chief Operating Officer and Executive Director.The appointment takes effect on July 17.
He has been with Commercial Bank for 34 years.
In July 2003, he was appointed country manager Bangladesh, after de led the acquisition of a Credit Agricole Indosuez unit there.
Renganathan is a Fellow of the Chartered Institute of Management Accountants, UK (FCMA), Fellow of the IFS School of Finance, UK (Fifs) and a Fellow of the Institute of Bankers Sri Lanka (FIB).
He is also an associate member of Financial Services Institute of Australasia.
He has been a Member of the General Council of the Institute of Bankers of Bangladesh and founder President of the Sri Lanka Bangladesh Chamber of Commerce and Industry. Bayern Munich star Goetze struck in the 113th minute of a gripping battle at Rio de Janeiro's Maracana Stadium as Argentina superstar Lionel Messi's hopes of emulating Diego Maradona ended in defeat.
Germany have now won four World Cups, putting the European powerhouses just one behind Brazil's record tally of five.
"It's unbelievable what we have achieved. Whether we have the best individual player doesn't matter at all, you just need to have the best team," said delighted Germany captain Philipp Lahm.
German coach Joachim Loew revealed he had encouraged Goetze to eclipse Argentina star Messi when he came on as an 88th minute substitute.
"I told Mario Goetze, 'go out and show the world you are better than Messi," he said.
Germany's win sparked an explosion of joy in their homeland and and in host nation Brazil, which had been dreading the prospect of South American rivals Argentina winning the title on its territory.
Tens of thousands of Argentine fans who had swarmed Rio's Copacabana beach ahead of the game fell silent after the defeat as gleeful Brazilians partied.
"Thank God, thank God that Germany won," said Caio Ferraz, 45, a Brazilian looking up at the stars on the legendary beach.
The dramatic finale came after a month-long footballing carnival widely regarded as one of the best World Cups ever.
Goetze's winner equalled the record tally for goals at a 32-team World Cup. The 171 goals from 64 games equalled the number set in France in 1998.
Fittingly, Goetze's strike was another memorable effort in a tournament brimming with spectacular individual goals.
A gripping final before 74,738 spectators, which included German Chancellor Angela Merkel, looked headed for penalties after both sides had failed to break through stubborn defending with the scores deadlocked at 0-0.
But with just seven minutes of extra-time remaining,Andre Schuerrle burst clear down the left flank and crossed for Goetze.
The 22-year-old took the ball on his chest and then volleyed past Sergio Romero to spark delirium amongst Germans and Brazilians alike.
With seconds remaining Messi had the chance to conjure an equaliser, but a difficult free-kick sailed high over the bar and Germany had won.
It was a bitterly disappointing end to the tournament for Messi, who was named player of the tournament despite the loss.
But the prize was scant consolation for the 27-year-old four-time world footballer of the year, who had been keen to emulate Maradona by guiding Argentina to the World Cup.
Messi had also missed a good chance early in the second half when he dragged a low shot wide of German stopper Manuel Neuer's goal.
It followed another gilt-edged chance wasted by Argentina striker Gonzalo Higuain in the first half, when clean through on goal, the Napoli scuffed his shot off-target.
Argentina coach Alejandro Sabella was left ruing his team's missed chances as he reflected on a final defeat which mirrored the South Americans 1-0 loss to Germany in 1990.
"They had more possession, but we had more cutting edge, more chances," lamented Sabella.
"When there are chances in a game that is so evenly balanced, you have to take them. We lacked a bit of efficiency."
Sabella meanwhile defended the contribution of Messi, who failed to conclusively end the debate surrounding his position in the pantheon of football's greats.
"It is a very demanding tournament and it drains everyone physically," Sabella said.
"He is already among the greatest of all time."
Messi's failure to add his tally of four goals in the first phase helped ensure that Colombia's James Rodriguez finished the tournament as top-scorer to win the Golden Boot with six goals.
Germany's Neuer won the Golden Glove award for the tournament's best goalkeeper.The 28-year-old Bayern Munich player was presented with the award moments after Sunday's triumph.
"It is unbelievable, and an awesome experience," said Neuer.
"Germany are world champions. I don't know how long we will celebrate, but we will go about it with big grins."
The leaders of Brazil, Russia, India, China and South Africa agreed to launch the institutions to finance infrastructure projects and head off future economic crises.
"We took the historic decision to create the BRICS bank and the reserve agreement -- an important contribution to reconfigure the system of international economic governance," Brazilian President Dilma Rousseff said at a summit in the northeastern seaside city of Fortaleza.
Russian President Vladimir Putin hailed the agreements as "a very powerful way to prevent new economic difficulties."
The five emerging nations first unveiled their plans last year. The New Development Bank will mirror the Washington-based World Bank while the reserve is seen as a "mini-IMF."
"We need to work to improve economic governance at a global level, increase the representations and voice of developing countries," said Chinese President Xi Jinping.
Rousseff pressed again for urgent changes in the International Monetary Fund's voting shares "to reflect the unquestionable weight of emerging countries."
- Shanghai headquarters -
The development bank will have initial capital of $50 billion that could rise to $100 billion, funded equally by each nation to avoid concerns that one country has more power than the other.
After drawn-out negotiations about the bank's location, BRICS leaders agreed to put its headquarters in Shanghai. The first president will be Indian while the first board chair will hail from Brazil.
An Africa Regional Center will be based in South Africa, whose President Jacob Zuma failed to convince his peers to place the bank's headquarters in Johannesburg.
The bank will help fund infrastructure and sustainable development projects, the summit declaration said.
The Contingent Reserve Arrangement will have $100 billion at its disposal to head off potential economic volatility linked to the United States exiting its stimulus policy.
China is making the biggest contribution, $41 billion, followed by $18 billion each from Brazil, India and Russia and $5 billion from South Africa.
Rousseff left open the possibility of using the fund to help non-BRICS nations, saying the group would be willing to "examine" any request from Argentina, which is in danger of defaulting on its debt.
The bank and fund, however, have to be ratified by each BRICS country's legislature before coming into force.
The summit comes as the economies of BRICS countries, which together represent 40 percent of the world population and a fifth of the global economy, are cooling down.
- Marathon summits -
The talks in Fortaleza opened a series of summits in Brazil, with BRICS leaders meeting with South American presidents in Brasilia on Wednesday.
The Fortaleza talks allowed Xi and India's new Hindu nationalist Prime Minister Narendra Modi to meet face-to-face for the first time.
Modi said the BRICS must act as a "united and clear voice for a peaceful, balanced and stable world."
For Putin, who visited Argentina and Cuba before coming to Brazil, the trip has given him a chance to hammer home his calls for a "multipolar" world amid tensions with the West over the Ukraine crisis.
Russia has been kicked out of the G8 group of industrialized nations over the Ukraine crisis.
The United States is threatening to impose new economic sanctions on Russia over accusations that it is backing pro-Moscow separatist rebels in eastern Ukraine.The BRICS summit declaration voiced "deep concern" over the situation in Ukraine and called for "comprehensive dialogue, the de-escalation of the conflict and restraint from all the actors involved, with a view to finding a peaceful political solution."
Rousseff said BRICS leaders "lament the lack of concrete progress" in Ukraine and other hotspots, including Iraq, Syria and the Israeli-Palestinian conflict.
After Wednesday's BRICS-South America summit, Xi will launch the China-Latin America forum on Thursday, highlighting Beijing's growing interests in Washington's backyard.
Sri Lanka shares close down 0.1-pct July 11, 2014 (LBO) - Sri Lanka's shares closed 0.11 percent lower ending a seven day winning streak with banking stocks losing ground, brokers said.The Colombo benchmark All Share Price Index closed 7.46 points lower at 6,661.40, down 0.11 percent. The S&P SL20 closed 26.98 points lower at 3,708.16, down 0.72 percent.
Turnover was 1.67 billion rupees, down from 2.36 billion rupees a day earlier with 79 stocks closed positive against 128 negative.
DFCC Bank closed 3.40 rupees lower at 166.60 rupees with an off-market transaction of 162.50 million rupees changing hands at 162.50 rupees per share contributing 10 percent of the turnover.
The aggregate value of all off-the-floor deals represented 17 percent of the turnover.
George Steuart Finance closed 1.60 rupees lower at 52.40 rupees, attracting most number of trades during the day.
Foreign investors bought 331.41 million rupees worth shares while selling 230.47 million rupees worth shares.Carson Cumberbatch closed 10.00 rupees lower at 420.00 rupees and Commercial Bank closed 2.20 rupees lower at 146.30 rupees, contributing most to the index drop.
HNB closed 3.00 rupees lower at 166.80 rupees and Sampath Bank closed 3.70 rupees lower at 214.20 rupees.
Dialog Axiata closed 10 cents lower at 10.90 rupees and Sri Lanka Telecom closed 4.00 rupees higher at 56.00 rupees.
Cricket: Sri Lanka to coach banned spinner Senanayake COLOMBO, July 13, 2014 (AFP) - Sri Lanka's cricket authorities decided Sunday to send off-spinner Sachithra Senanayake for intense coaching after the International Cricket Council (ICC) ruled his bowling action illegal and banned him from international matches.Sri Lanka Cricket (SLC) secretary Nishantha Ranatunga said the coaching team was being asked to study reports from the ICC and take corrective action.
The ICC told the SLC Saturday that it investigated a complaint following a Sri Lankan victory over England at Lord's in May and concluded that Senanayake used an illegal bowling action.
"The ICC today confirmed that an independent test had found the bowling action of... Senanayake to be illegal and, as such, the player has been suspended from bowling in international cricket," the ICC said in a statement a day after SLC announced the ban.
Ranatunga said Sri Lanka was abiding by the ICC decision, but was also moving to address any problems with Senanayake's bowling and take corrective steps so that he could return to international cricket.
"If there is anything to be corrected with his bowling action, we want to do it and get him to play as soon as possible," Ranatunga told AFP. "We want to rectify any problem."
Senanayake, who twice recorded career-best figures in the Royal London series, was reported by umpires Ian Gould and Marais Erasmus during a one-day international series that Sri Lanka won.
Sri Lanka Cricket chiefs had earlier defended Senanayake, saying that he had over the past two years played many bilateral ICC tournaments without a hint of suspicion. But they made it clear Sunday that they were not confronting the ICC decision.Senanayake has played in 39 ODIs and taken 40 wickets while conceding 1,393 runs. He played one Test match against Pakistan but took no wickets.
He also played 17 T20 matches and took 18 wickets for 300 runs.
Top Sri Lanka lawyer says fears for life after criticising govt COLOMBO, July 16, 2014 (AFP) - The head of Sri Lanka's bar association said on Wednesday he feared he might be killed after he described President Mahinda Rajapakse's government as becoming more autocratic.Senior lawyer Upul Jayasuriya had accused the government of moving towards a dictatorship after it banned all local and foreign NGOs from holding press conferences. Jayasuriya said unidentified men on a motorcycle and in a taxi had started following him after his statement last week, prompting him to call police.
"I suspect a link between my issuing the statement and the men following me yesterday (Tuesday)," he told reporters.
"They may have tried to assassinate me. They left only after I raised the alarm and called the police."
The government's order, sent widely to civil society groups earlier this month, said all NGOs should refrain from "unauthorised activities with immediate effect".
"It has been revealed that certain Non Governmental Organisations conduct press conferences, workshops, training for journalists, and dissemination of press releases which is beyond their mandate," said the letter.
Authorities have often accused foreign and local charities of supporting dissidents and introduced tougher regulations to control them in 2010, a year after troops crushed Tamil rebels and ended decades of ethnic war.
Jayasuriya said in his statement as bar association chief that the government's move was "testimony for this impending crypto-military and authoritarian tendency of the country".
"We observe that the post-war Sri Lankan polity has been in an acute and deepening crisis," he said.Another legal group, the Lawyers Collective, accused the government of a "sinister move" to intimidate Jayasuriya and send a signal to dissidents.
"We have witnessed a regular pattern of surveillance on civil society organisations, human rights defenders and individuals critical of the government," the group said in a statement Wednesday.
UN human rights chief Navi Pillay last year accused Sri Lanka of becoming "increasingly authoritarian" under Rajapakse, who has extended his powers since first being elected in 2005.
Dutch court rules state liable over 300 Srebrenica victims THE HAGUE, July 16, 2014 (AFP) - A court in the Netherlands ruled Wednesday that the Dutch state was liable for the deaths of over 300 victims of the Srebrenica massacre, the worst atrocity on European soil since World War II.Families of the victims had brought a case the Dutch government over the 1995 killings, accusing Dutch UN peacekeepers of failing to protect the 8,000 Muslim men and boys slaughtered by ethnic Serb troops just a few months before the end of the Bosnian wa.
"The state is liable for the loss suffered by relatives of the men who were deported by the Bosnian Serbs from the Dutchbat (Dutch battalion) compound in Potocari in the afternoon of 13 July, 1995," the court said.
"Dutchbat should have taken into account the possibility that these men would be the victim of genocide and that it can be said with sufficient certainty that, had the Dutch bat allowed them to stay at the compound, these men would have remained alive," it ruled.
Dutchbat was the name for the Dutch force under the nominal control of the United Nations in the former Yugoslavia.
"By cooperating in the deportation of these men, Dutchbat acted unlawfully," it added.
The tiny Muslim enclave was under UN protection until July 11, 1995 when it was overrun by ethnic Serb forces under the command of Ratko Mladic, who is currently on trial on genocide and war crimes charges over the war in Bosnia, including the Srebrenica slaughter.
- Seeking justice for years -
Mladic's troops brushed aside the lightly-armed Dutch peacekeepers in a "safe area" where thousands of Muslims from surrounding villages had gathered for protection.
In the subsequent days, almost 8,000 Muslim men and boys were slaughtered and their bodies dumped in mass graves.
The Mothers of Srebrenica, representing some 6,000 widows and victims' relatives, have been seeking justice for years for the massacre, which the UN's highest International Court of Justice has ruled was genocide.
In April, the Dutch government said it would pay 20,000 euros to relatives of three Bosnian Muslim men murdered after peacekeepers expelled them from the UN compound at Srebrenica in 1995.
That move followed a Dutch court's landmark ruling last year that the state was liable for the deaths, the first time a government had been held responsible for the actions of peacekeepers operating under a UN mandate.Wednesday's ruling come just days after thousands of people gathered in Srebrenica to mark the 19th anniversary of the killings.
So far, the remains of 6,066 people have been exhumed from mass graves in the Srebrenica region for reburial.
The massacre took place just a few months before the end of Bosnia's 1992-1995 war, which claimed some 100,000 lives in total.
Both Mladic, dubbed the "Butcher of Bosnia", and Bosnian Serb wartime political leader Radovan Karadzic, considered masterminds of the massacre, are now being tried by a UN court for war crimes and genocide.
Left-hander De Kock smashed a 127-ball 128 while skipper De Villiers hit a fiery 71-ball 108, making a century off just 66 balls, as South Africa posted their highest total against Sri Lanka of 339-5 in windy conditions at Mahinda Rajapaksa Stadium in Hambantota.
The Proteas then restricted the hosts to 257 in 44.3 overs for their first-ever one-day series win on the island by 2-1.
South Africa had won the first one-day in Colombo by 75 runs while Sri Lanka claimed the second by 87 at Pallekele.
Sri Lanka, who needed their record one-day chase, had promised a positive chase by smacking 57 in the sixth over with Kusal Perera (37) and Tillakaratne Dilshan (30) but a middle order slump saw them lose Dilshan, Kumara Sangakkara (36) and Mahela Jayawardene (two) in the space of just six runs.
When Lahiru Thirimanne went for 22 to make it 151-5, Angelo Mathews (58) and Ashan Priyanjan (30) put up some resistance during their 83-run stand but the target proved too much for the hosts.
For South Africa paceman Ryan McLaren took 3-37 while Jean-Paul Duminy and Morne Morkel grabbed two wickets apiece.
De Villiers, who lost a one-day series in Sri Lanka 4-1 last year, was delighted with the victory.
"I am very happy over the win," he said. "It's our first series win here so we will celebrate it tonight."
Sri Lanka skipper Mathews was left to rue missed chances.
"It was very depressing," said Mathews. "We were pretty flat on the field, let go a few chances and didn't bowl well so we didn't deserve to win."
Earlier De Kock put on 118 for the first wicket with Hashim Amla (48) and another 116 for the second with De Villiers as South Africa improved on their previous highest total of 317-6 against Sri Lanka at Centurion in 2002.
De Kock, dropped at 38 off Sachithra Senanayake, reached his fifth one-day hundred with a sharp single off 108 balls.
The talented left-hander holed out at mid-off in the 41st over but not before bettering South Africa's highest individual one-day score against Sri Lanka made by Boeta Dippenaar (125 not out) at Adelaide in 2006.
In all De Kock hit 12 fours and three sixes but was overshadowed by his skipper who smashed 11 boundaries and four sixes.De Villiers was in a punishing mood, dancing and moving at the pitch with consummate ease to stroke his way to the third fastest one-day century by a South African behind Mark Boucher's 44-ball effort and his own 58-ball century in the past.
De Villiers hit two boundaries and then took a single off Mathews to complete his 17th one-day hundred.
In between Jacques Kallis missed out, trapped leg-before for just four to end a disappointing series with five runs, leaving a big question mark on his survival until next year's World Cup.
Sri Lanka had packed the side with five spinners, bringing in Rangana Herath but De Villiers and De Kock negated that spin factor with sublime batting.
Ace home paceman Lasith Malinga went for 85 runs in his 10 wicket-less overs.
The teams now play a two-Test series starting at Galle from July 16.
Cricket: Sri Lanka to coach banned spinner Senanayake COLOMBO, July 13, 2014 (AFP) - Sri Lanka's cricket authorities decided Sunday to send off-spinner Sachithra Senanayake for intense coaching after the International Cricket Council (ICC) ruled his bowling action illegal and banned him from international matches.Sri Lanka Cricket (SLC) secretary Nishantha Ranatunga said the coaching team was being asked to study reports from the ICC and take corrective action.
The ICC told the SLC Saturday that it investigated a complaint following a Sri Lankan victory over England at Lord's in May and concluded that Senanayake used an illegal bowling action.
"The ICC today confirmed that an independent test had found the bowling action of... Senanayake to be illegal and, as such, the player has been suspended from bowling in international cricket," the ICC said in a statement a day after SLC announced the ban.
Ranatunga said Sri Lanka was abiding by the ICC decision, but was also moving to address any problems with Senanayake's bowling and take corrective steps so that he could return to international cricket.
"If there is anything to be corrected with his bowling action, we want to do it and get him to play as soon as possible," Ranatunga told AFP. "We want to rectify any problem."
Senanayake, who twice recorded career-best figures in the Royal London series, was reported by umpires Ian Gould and Marais Erasmus during a one-day international series that Sri Lanka won.
Sri Lanka Cricket chiefs had earlier defended Senanayake, saying that he had over the past two years played many bilateral ICC tournaments without a hint of suspicion. But they made it clear Sunday that they were not confronting the ICC decision.Senanayake has played in 39 ODIs and taken 40 wickets while conceding 1,393 runs. He played one Test match against Pakistan but took no wickets.
He also played 17 T20 matches and took 18 wickets for 300 runs.
Paul Slough, Evan Liberty, Dustin Heard and Nicholas Slatten appeared dressed in suits and ties before a federal court in Washington as the second trial in the case entered its fifth week.
Slatten, 32, is charged with the first degree murder of a civilian. He faces life in prison if convicted. Slough, Liberty and Heard are accused of voluntary manslaughter of the 13 other victims.
All four have pleaded not guilty.
The Blackwater employees were guarding a US diplomatic convoy when they opened fire, killing 17 unarmed Iraqi civilians according to an Iraqi investigation, or 14, according to the US count. The hail of gunfire also wounded 18 people.
Six of the guards had started the shootings.
FBI expert Douglas Murphy said he traveled to the site of the killings twice to examine the cars involved in the shootings.
As photographs were projected in the courtroom, he spoke of "significant damage" to the 11 vehicles he observed in March 2008 and June 2009.
Murphy pointed to a white KIA riddled with bullet holes, including 29 in the front alone. There was also a Volkswagen that had 13 bullet holes on the driver's side alone.
In other cases, there was nothing left to investigate because "the entire vehicle has been burnt, the seats are no longer there, the car has no window," the expert added.
Asked about the weapons and ammunition used by the four defendants that day, Marine expert Shelby Lasater stressed the grenades used are "designed to penetrate armor and to cause casualties or kill."
"It mushrooms out, it will blow up in a circle and back," he added, noting the grenades could explode across a 540-foot (165-meter) radius.
- $1 billion after threat -
The killings exacerbated Iraqi resentment toward Americans, and was seen by critics as an example of the impunity enjoyed by private security firms on the US payroll in Iraq.
Blackwater, whose license to work in Iraq was revoked by Baghdad, was renamed Xe Services in 2009 and then Academi in 2011.
Upon President Barack Obama's arrival in office in 2009, the State Department canceled its contract with the firm.
Yet the State Department awarded more than a billion dollars in funding to Blackwater and its successor firms even after its top manager in Iraq allegedly threatened to kill a government investigator, The Huffington Post reported.
Last week, The New York Times reported that lead State Department investigator Jean Richter detailed in a memo that the Blackwater official had threatened her for probing the company's performance just weeks before the deadly shooting in Baghdad's Nisour Square.
The threat "sent a clear message that the Blackwater contractors saw themselves as 'above the law' and actually believed that 'they ran the place'," Richter said in a memo cited by the Times.
Participants of the June 17-18 Federal Open Market Committee meeting saw the economy rebounding from a weak first quarter, largely blamed on bad weather.
"If the economy progresses about as the Committee expects... this final reduction would occur following the October meeting," the minutes said.
Though the Fed previously has indicated it would end asset purchases by year-end, this was the first time an explicit month has been named. Most Fed-watchers had expected the buying to end in October.
The FOMC has been tapering the quantitative easing (QE) program in incremental steps of $10 billion this year, bringing monthly bond purchases down from $85 billion in December to $35 billion in June.
After $10 billion cuts expected from each of its July and September meetings, the policy makers agreed a final $15 billion reduction could be decided in October.
Three rounds of QE, the Fed's exceptional stimulus aimed at holding down longer-term interest rates, has swollen the Fed's balance sheet to $4.3 trillion.
The FOMC expects it would not begin raising its near-zero benchmark interest rate for "a considerable time" after the asset purchase program ends, the minutes said, "especially if projected inflation continued to run below the Committee's 2 percent longer-run goal."
Though asset purchases end, the Fed still will continue to reinvest the funds from the bonds it holds. "Many" participants agreed that ending reinvestments at or after the time of raising rates would be best, with "most" of them preferring to end them "after liftoff."
The minutes reaffirmed the Fed's expectations that a rate hike would not come before mid-2015. The federal funds rate has been at a record low range of zero to 0.25 percent since late 2008.
"The FOMC minutes once again included some discussion about details of eventual tightening, but they also made clear that such tightening is not imminent -- the discussion is just part of long-term planning," said Jim O'Sullivan, chief US economist at High Frequency Economics. "Overall, no major surprises."
Policymakers at the meeting weighed evidence that inflation had moved up recently from low levels earlier in the year toward the central bank's 2.0 percent target.
The Fed's preferred inflation measure, the personal consumption expenditures price index, has climbed for three straight months, hitting a 1.8 percent gain in May from a year ago.
Some officials were worried that inflation was heating up, while others expressed concern about the persistence of below-trend inflation in the economy, still struggling to recover five years after the end of the Great Recession.
- Market rally concerns -
Policy makers also appeared concerned about the strong run-up in the stock markets, the minutes showed, with a discussion on "whether some recent trends in financial markets might suggest that investors were not appropriately taking account of risks in their investment decisions."
Citing that reason, they agreed that the Fed should emphasize in its communications that its policy decisions depend on the evolution of the economic outlook.Fed Chair Janet Yellen, in a speech a week ago, said she saw "pockets" of increased risk taking across the financial system, but emphasized that regulatory action was the better approach, rather than the "very blunt tool" of monetary policy.
The potential impact of developments abroad on US monetary policy were also discussed.
A couple of officials noted moves toward more accommodative policies by the European Central Bank and the Bank of Japan had boosted the economic growth outlook for those areas, potentially helping US inflation return to the Fed target.
"Several others, however, remained concerned that persistent low inflation in Europe and Japan could eventually erode inflation expectations more broadly," the minutes said.
"And a couple of participants expressed uncertainty about the outlook for economic growth in Japan and China."
US returns smuggled dinosaur haul to Mongolia NEW YORK, July 10, 2014 (AFP) - The United States returned to Mongolia on Thursday more than 18 dinosaur skeletons and fossils stolen from the Gobi desert and smuggled abroad, saying they were enough to stock a museum.The haul includes skeletons of two Tyrannosaurus bataars, a cousin of the fearsome Tyrannosaurus rex, and two Oviraptors, known at least apocryphally for eating other dinosaur eggs.
The repatriation ceremony was the culmination of a two-year effort to return numerous dinosaur fossils smuggled to the United States and other countries.
Some were illegally smuggled into the US using false customs papers and others were voluntarily forfeited by a British collector to the United States for return to Mongolia.
"A recovery of this sort is without precedent," top New York federal prosecutor Preet Bharara told the handing-over ceremony.
"It is a haul sufficient enough to stock a natural history museum, which I understand actually is currently being built in Mongolia. We're honored to return these fossils to the Mongolian people."
The ceremony took place more than a year after the United States handed back the first remains of a 70-million-year-old Tyrannosaurus skeleton to the Mongolian government.
The nearly complete skeleton had been sold at auction for more than $1 million before US authorities intervened at Mongolia's request.
The Mongolian minister of culture, sport and tourism said the first skeleton would be the first item to go on display in a new Central Dinosaur Museum that the government planned to build.
A Florida-based collector, Eric Prokopi, pleaded guilty in December 2012 to smuggling and has subsequently given up some of the dinosaur skeletons returned to Mongolia.
The rest were handed over to US authorities by his British former business partner.
Prokopi, who had faced up to 17 years in jail and a $250,000 fine, was instead sentenced to three months on July 3 after pleading guilty and surrendering the skeletons.
HSBC India chief at Sri Lanka business forum July 10, 2014 (LBO) - Sri Lanka's Ceylon Chamber of Commerce said HSBC India Chairperson Naina Lal Kidwai will deliver the keynote address at its annual business forum.Naina Lal Kidwai, Chairperson of HSBC India, will speak on the second day of "Sri Lanka Economic Summit" organized by the Chamber on August 05 and August 06. Naina Lal Kidwai is also an Executive Director on the board of HSBC Asia-Pacific and a Non-Executive Director of Nestle S.A.
She is the immediate Past President of the Federation of Indian Chambers of Commerce and Industry (FICCI) of India.
At a session on 'Banking in the New World' she will be joined by a panel made of Dinesh Weerakkody, Chairman of the Commercial Bank, Sanjiva Senanayake, Senior Director of Sampath Bank, and Krishan Balendra, Chairman, Nations Trust Bank. Devised by the French pharmaceutical giant Sanofi Pasteur, the so-called CYD-TDV vaccine provided only 30 percent protection against the dangerous fever when first tested among children in Thailand.
Widened to trials in four other Asian countries, where disease conditions vary greatly, the vaccine's protection has been shown to be significantly higher, at 56.5 percent overall, the scientists said.
The result falls short of the benchmark set by classic vaccines such as those for polio and measles, which can be more than 99 percent effective.
One reason for this is that CYD-TDV performed poorly against one of the four strains of dengue virus, the investigators reported in The Lancet.
These strains, or serotypes, circulate simultaneously, which means a vaccine should ideally protect against all of them.
Even so, the prototype was safe and well tolerated and its shield, if only partial, means it should be enlisted in the fight against dengue, they argued.
"Our results suggest that vaccination with CYD-TDV can reduce the incidence of symptomatic dengue infection by more than half and importantly reduced severe disease and hospitalisations," said Maria Rosario Capeding from the Philippines' Research Institute for Tropical Medicine.
"This candidate vaccine has the potential to have a significant impact on public health in view of the high disease burden in endemic countries."
Dengue is a potentially fatal fever, caused by a virus transmitted by a mosquito when it takes its blood meal, and is especially dangerous for children.
The virus infects around 390 million people each year, of whom about 96 million fall sick, according to UN estimates.
It was once considered a disease of the tropics that was endemic in only nine countries.
But globalisation, climate change and jet travel are helping it to move into more temperate zones.
According to the World Health Organization (WHO) cases of dengue have risen 30 fold over the last 50 years, and more than half of the world's population are at risk of the disease.
- Wider trials -
The CYD-TDV vaccine was tested as a so-called Phase IIb trial among just over 4,000 children in rural Thailand, the results of which were reported in September 2012.
The new figures are those of a Phase III trial -- normally the final step in the process to test new drugs for safety and efficiency -- carried out in Indonesia, Malaysia, the Philippines and Vietnam, as well as in Thailand.
More than 10,000 children aged two to 14 years were enrolled. They were randomly assigned to receive three injections of the vaccine or a placebo over 12 months, and were followed for up to two years.
During this period a total of 150 dengue cases occurred, a majority of them in the placebo group, demonstrating an overall effectiveness of 56.5 percent.
But the protection varied according to the serotype -- more than 75 percent against virus types 3 and 4; 50 percent against type 1; but only 35 percent against type 2.
On the plus side, those who had received the vaccine were also far less likely to fall ill with a severe form of the disease, dengue haemorrhagic fever, which leads to half a million hospitalisations each year.In a commentary, Annelies Wilder-Smith, a professor at Singapore's Nanyang Technological University, said a vaccine that halved annual cases of dengue "would present a significant public health benefit" but was not a magic bullet.
"For the moment, the CYD-TDV vaccine is the best we have; however, with 56 percent efficacy it will never be a single solution," Wilder-Smith said.
Other strategies, including better approaches to tackling mosquitoes that cause the problem, would also have to be part of the campaign, she said.
The children in the trial are being followed up for another four years to see whether the vaccine's promise still holds up.
Sri Lanka foreign financed domestic credit share among highest in Asia July 10, 2014 (LBO) - Countries with high levels of externally financed domestic credit should be careful about loose monetary policy, a report by Standard and Poor's which found Sri Lanka to be most exposed in the region after New Zealand said.Several Asian countries including China were loosening policy in response to a slowing economy, but loosening policy could increase financial risks even though it may lift short term growth, the rating agency said.
"The risks are greater where significant external funds support domestic lending," S&P said in a mid-year review of 22 Asia Pacific sovereigns rated by the agency.
"These economies are vulnerable to negative swings in sentiments among international lenders. This also means that these governments have little room for policy mistakes."
Earlier this week S&P confirmed Sri Lanka's B+ speculative grade sovereign rating, citing low inflation and gains in state enterprise balances.
On 5 parameters looked at by S&P Sri Lanka's Economic Structure and Growth was considered Neutral and Monetary Flexibility also Neutral.
But Institutional and Governance Effectiveness was considered a Weakness, Fiscal Flexibility and Performance a Weakness, External Liquidity and International investment Position a Weakness and Government Debt Burden a Weakness
"Only Pakistan, Papua New Guinea, and Sri Lanka have more than three weaknesses," the report said.
In Sri Lanka over 25 percent of domestic credit claims were ultimately financed externally, only the second highest after New Zealand at 30 percent, the report found.
This compared to less than 15 percent for Australia and Mongolia, a little over 5 percent for Thailand and below 5 percent for Indonesia, India, Fiji and Bangladesh.
Sri Lanka's banks have been borrowing heavily in international markets, and lending domestically including in domestic currency. Some of the currency risk has been taken by the Central Bank.
Sri Lanka also has a deposit dollarization, where banks operate foreign currency denominated books, held by qualified individuals and firms earn in foreign currency, which have been stable in the past due to a promise of free capital mobility.
Wholesale foreign borrowings have been made easy in recent years by extraordinarily deadly money printing (quantity easing) by the US Fed which is due to end in October, though no actual contraction of its balance sheet is yet contemplated.
The announcement to end quantity easing last year send jitters in international bond market sending rates of emerging market debt including that of Sri Lanka sharply higher.
"Despite the continuing scale-down of bond purchases by the U.S. Federal Reserve, investors appear to be returning to emerging markets," S&P said.
"Sovereigns and related entities in the region have been able to borrow in international markets at favorable rates in the first half of the year.
"Although the risk of a renewed global slowdown triggered by events in the U.S. or Europe is receding, it could still hurt sovereign creditworthiness in this region."
Google adds Sri Lanka's Sinhala language to Gmail July 8, 2014 (LBO) - Google has added Sinhalese, spoken by a majority of residents in Sri Lanka to its Gmail webmail service along with 13 other languages.Gmail is already available in 58 languages, and today we’re bringing that total to 71—covering 94 percent of the world’s Internet population and bringing us closer to our goal of making sure that, no matter what language you write in, you can use it in Gmail.
"No matter where you are, you can reach anyone else in the world with the press of a button," Ian Hill, Senior Project Manager, Google Localization said in a blog post.
"We take it for granted now, but it's so much easier to keep in touch with people than it was in the old days of pens, paper, and stamps. But there’s still an important barrier we need to overcome to make email truly universal: language."
With Sinhala Gmail is now available in 71 languages.
Sinhalese was among 13 new languages added this week along with Afrikaans, Armenian, Azerbaijani (Azeri), Chinese (Hong Kong), French (Canada), Galician, Georgian, Khmer, Lao, Mongolian, Nepali, and Zulu.
The display language can be changed by going to settings and choosing from a dropdown menu. Car drives onto tarmac at Australian G20 host city airport SYDNEY, July 9, 2014 (AFP) - Authorities were investigating Wednesday how a woman was able to drive her car through a fence and onto the tarmac of a major Australian airport, causing flights to be suspended.Australian Federal Police said they were called to Brisbane Airport in the eastern state of Queensland late Tuesday night after a woman "breached the airport perimeter fence in a vehicle".
The woman, 37, was taken to hospital while flights were barred from landing for more than an hour and others were diverted as the car was removed from the tarmac, the Brisbane Courier Mail reported.
"We are continuing to conduct enquiries into this matter. Further information will be provided in due course," police said in a statement.
Brisbane is the host city for this year's G20 summit of world leaders, which will be held in November.
Brisbane Airport Corporation added in a statement that passengers "can be confident" the facility was "safe and secure".
"The systems and processes in place at Brisbane Airport comply with federal government standards," the airport's general manager for operations Stephen Goodwin said."However, with Brisbane hosting the G20 in November, BAC is progressively increasing its security to even higher levels.
"We are currently in the middle of a major upgrade of the airfield perimeter and have already spent Aus$2 million ($1.88 million) upgrading the fence line, with at least that much to go before we finish current works."
Goodwin said the "rapid response" to the incident showed the airport's security procedures had worked.
Sri Lanka firm sells banking software to Solomon Islands July 11, 2014 (LBO) - Fortunaglobal, a Sri Lanka based tech firm said it had delivered a digital banking platform to a lender in Solomon Islands.Its 'FortunaFinance' branded platform will allow Solomon Island's Pan Oceanic Bank (POB) to provide services to customers through mobile phones and the web.
"…[F]inancial institutions of all sizes are seeking more flexible, responsive, cost efficient multi-channeled and personalized e-banking solutions to enhance their business propositions effectively," Fortunaglobal Chief Executive Suren Kohombange said in a statement.
"With seven years of industry experience in digital and mobile solutions platform, we feel that the Suite created by Fortunaglobal …will prove itself a significant tool in the achievement of the banks’ goals."
POB is Solomon Island's fourth largest bank.
"In our evaluations FortunaFianace Digital banking suite came out strongly in terms of its flexibility and the adoption of customer beneficial new technology and features," Pan Oceanic Bank Chief Executive Nihal Kekulawala was quoted as saying in the statement.
"We are looking forward to implement the system and drive our customers towards modern mobile and digital banking channel facilities."
Fortunaglobal was founded in 2007. Cricket: De Kock, De Villiers lift South Africa to 339-5 HAMBANTOTA, July 12, 2014 (AFP) - Quinton de Kock and AB de Villiers smashed aggressive centuries to propel South Africa to an imposing 339-5 in the third and final one-day international against Sri Lanka on Saturday.Left-hander De Kock smashed a 127-ball 128 while skipper De Villiers hit a fiery 71-ball 108, making a century off just 66 balls, as South Africa posted their highest total against Sri Lanka in windy conditions at Mahinda Rajapaksa Stadium in Hambantota.
South Africa's previous highest one-day total against Sri Lanka was 317-6 at Centurion in 2002.
De Kock gave South Africa, who won the toss and batted, an ideal start with a solid 118-run opening stand with Hashim Amla (48) and another 116 with his skipper for the third wicket to give South Africa an ideal chance to win the series tied at 1-1.
South Africa won the first one-day in Colombo by 75 runs while Sri Lanka restored parity with an 87-run victory in the second at Pallekele.
De Kock, dropped at 38 off Sachithra Senanayake, reached his fifth one-day hundred with a sharp single off 108 balls.
The talented left-hander holed out at mid-off in the 41st over but not before bettering South Africa's highest individual one-day score against Sri Lanka made by Boeta Dippenaar (125 not out) at Adelaide in 2006.
In all De Kock hit 12 fours and three sixes but was overshadowed by his skipper who smashed 11 boundaries and four sixes.
De Villiers was in a punishing mood, dancing and moving at the pitch with consummate ease to stroke his way to the third fastest one-day century by a South African behind Mark Boucher's 44-ball effort and his own 58-ball century in the past.
De Villiers hit two boundaries and then took a single off Angelo Mathews to complete his 17th one-day hundred.
In between Jacques Kallis missed out, trapped leg-before for just four to end a disappointing series with five runs, leaving a big question mark on his survival until next year's World Cup.
Sri Lanka had packed the side with five spinners, bringing in Rangana Herath for paceman Nuwan Kulasekara. South Africa replaced injured paceman Vernon Philander with Wayne Parnell.
Ace home paceman Lasith Malinga went for 85 runs in his 10 wicket-less overs.
Sri Lanka shares close up 0.7-pct July 09, 2014 (LBO) - Sri Lanka's shares closed 0.73 higher on Wednesday crossing the 6,600 mark despite net foreign selling, brokers said.
The Colombo benchmark All Share Price Index closed 48.03 points higher at 6,613.84, up 0.73 percent. The S&P SL20 closed 29.95 points higher at 3,706.06, up 0.81 percent.
Turnover was 2.89 billion rupees, down from 1.74 billion rupees a day earlier with 153 stocks closed positive against 67 negative.
Pan Asia Banking Corporation closed 50 cents higher at 19.00 rupees with an off-market transaction of 537.38 million rupees changing hands at 20.00 rupees per share contributing 19 percent of the daily turnover.
Bukit Darah closed 5.50 rupees higher at 637.50 rupees with market transactions of 232.82 million rupees contributing 8 percent of the daily turnover.
The aggregate value of all off-the-floor deals represented 36 percent of the turnover.
PCH Holdings closed 40 cents lower at 3.20 rupees and HVA Foods closed 50 cents higher at 10.20 rupees, attracting most number of trades during the day.
Foreign investors bought 269.09 million rupees worth shares while selling 547.66 million rupees worth shares.
Sri Lanka Telecom closed 1.90 rupees higher at 51.40 rupees and John Keells Holdings closed 3.00 rupees higher at 237.60 rupees, contributing most to the index gain.JKH’s W0022 warrants closed 20 cents higher at 65.00 rupees and its W0023 warrants closed 60 cents higher at 76.00 rupees.
Ceylon Tobacco Company closed 33.30 rupees lower at 1,066.70 rupees and Nestle Lanka closed 13.40 rupees lower at 2,081.60 rupees.
The CSE said it had approved an application by Dunamis Capital to offer 10 million debentures of 100 rupees each.
Subscriptions will open on July 28 with First Capital is managing the debt issue.
Sri Lanka aims for emerging market status: regulator July 9, 2014 (LBO) - Sri Lanka wants to move beyond being a frontier market into emerging status where investor confidence is important, Securities and Exchange Commission chairman Nalaka Godahewa said."We like to see our market being upgraded from frontier market status to emerging market status at the earliest possible date," Godahewa told a forum organized to explain the role of independent directors.
"We like to see more companies identifying the capital market as a channel to raise funds to support their long term investment needs. We like to see our market growing in value and quality.
"We like to see ‘market cap to GDP ratio’ of at least 40 percent within the next 3-4 years.
"In order to achieve these objectives, the investor confidence in our capital market becomes a key factor."
He said independent directors could enhance corporate governance. Academic research in the US and UK had shown that companies with strong shareholder rights outperformed weaker ones by 10 to 12 percent.
"This is the obvious reason why investors prefer companies that are known for superior corporate governance practices," he said.
"Particularly at a time when we are seeking a greater engagement of foreign investors in our market, we need to be conscious of the need to promote corporate governance best practices amongst our listed companies."The companies should also understand that better corporate governance means better access to finance."
Sri Lanka shares close up 0.8-pct July 10, 2014 (LBO) - Sri Lanka's shares closed 0.83 percent higher with tobacco stocks gaining amid strong foreign buying, brokers said.
The Colombo benchmark All Share Price Index closed 55.02 points higher at 6,668.86, up 0.83 percent. The S&P SL20 closed 29.08 points higher at 3,735.14, up 0.78 percent.
Turnover was 2.36 billion rupees, down from 2.89 billion rupees a day earlier with 122 stocks closed positive against 77 negative.
Nestle Lanka closed 4.50 rupees lower at 2,077.10 rupees with an off-market transaction of 196.77 million rupees changing hands at 2,100.00 rupees per share contributing 8 percent of the turnover.
The aggregate value of all off-the-floor deals represented 27 percent of the turnover.
George Steuart Finance closed 3.70 rupees higher at 54.00 rupees and PCH Holdings closed 10 cents higher at 3.30 rupees, attracting most number of trades during the day.
Foreign investors bought 857.81 million rupees worth shares while selling 507.98 million rupees worth shares.
Ceylon Tobacco Company closed 33.30 rupees higher at 1,100.00 rupees, contributing most to the index gain.Lion Brewery Ceylon closed 42.00 rupees higher at 571.90 rupees.
Carson Cumberbatch closed 13.00 rupees higher at 430.00 rupees and John Keells Holdings closed 2.40 rupees higher at 240.00 rupees.
JKH’s W0022 warrants closed 80 cents lower at 64.20 rupees and its W0023 warrants closed 1.10 rupees lower at 74.90 rupees.
The Sydney Morning Herald said the women tried to kill themselves this week after being told they would be taken from a detention centre on Christmas Island to Papua New Guinea or Nauru.
Any boatpeople who arrived in Australia after July 19, 2013 cannot be resettled in the country, regardless of whether they are eventually judged to be genuine refugees.
They are instead sent to detention facilities or for resettlement on islands in the Pacific.
The Australian Human Rights Commission told AFP it was aware of "seven women who have either attempted suicide, threatened suicide or self-harmed on Christmas Island" in the last two days.
"In recent weeks we are aware of 13 asylum-seekers who fall into those categories," a spokeswoman added.
The damaging claims come as Australia faces growing pressure over its controversial immigration policies, with High Court action under way over the fate of 153 Sri Lankans being held in custody on the high seas.
They are currently detained on a Customs boat as lawyers argue that any transfer back to Colombo would be illegal, with concerns about the way they were screened.
Another boat carrying 41 Sri Lankans has already been returned, with the adults on board Tuesday charged in a Galle court with trying to leave Sri Lanka illegally.
The crime is punishable by up to two years' imprisonment.
Some of those sent back claimed they were abused, given little food and treated "worse than dogs" by Australian customs officials, allegations that Immigration Minister Scott Morrison Wednesday angrily denied.
"I find those allegations offensive and reject them absolutely," he said during a trip to Colombo for a meeting with top officials from President Mahinda Rajapakse's government.
- 'We will not be blackmailed' -
Abbott described the Christmas Island claims as "harrowing" but said his government would not be held hostage.
"This is not going to be a government which has our policy driven by people who are attempting to hold us over a moral barrel. We won't be driven by that," he told Channel Nine television.
"The fact is that the people that are on Nauru -- they're being clothed, housed, fed and above all else, they're safe. They are not going to be subjected to any persecution in Nauru.
"Now, I don't believe that people ought to be able to say to us, 'Unless you accept me as a permanent resident, I am going to commit self-harm'.
"I don't believe any Australian would want us to capitulate to moral blackmail."
Christmas Island Shire Council president Gordon Thompson said the women believed that if they died their orphaned children would have a better chance of being settled in Australia, the Herald reported.
"They are saying 'the babies have a better chance at life if I am dead'," he said.
"It's a shocking conclusion to come to, but that's the state of helplessness in the centre at the moment."
The women, whose nationalities were not known, reportedly either tried to hang themselves or cut themselves with glass.
Labor opposition leader Bill Shorten accused Abbott of "washing his hands" of asylum-seekers.
"You mightn't wish this was so but these people are human beings in the care of Australia and the care of the Australian government," he said.
"It is not good enough to wash your hands on the safety of human beings."
Greens party immigration spokeswoman Sarah Hanson-Young said she had spoken to people inside the Christmas Island camp, and reports of attempted suicide were true.
"Two nights ago almost 10 mothers were on suicide watch," she said, blasting the Abbott government for pushing people to a "point of self destruction".
"It's pretty horrific to push a mother to a point of saying 'Well, if I need to sacrifice myself for my children, maybe that's what I'll do'," she said.