CSE News Updates

Sri Lanka chamber chief calls for 'peace and harmony' June 27, 2014 (LBO) - Sri Lanka's Ceylon Chamber Chamber of Commerce said incumbent chairman Suresh Shah who was re-elected had called on private business to build peace and harmony.His call comes in the wake of rising nationalism in the country and recent mob attacks on minorities that left three people dead.

"I call upon the private sector to contribute at least a part of their CSR funds towards a program that we will take island wide to bring peace and harmony to society," Shah was quoted as having said after being elected to head the institution in its 175th year.

Samantha Ranatunga had been re-elected as the Vice Chairman and Rajendra Theagerajah as the Deputy vice Chairman.

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Adam Investments ups stake in Sri Lanka pharma company June 26, 2014 (LBO) - Adam Investments Ltd, said it had increased a stake in PC Pharma Ltd, a pharmaceuticals company, to 25.7 percent by purchasing shares over the past two days.Adam Investments said it bought 4.4 million shares on June 24 and 2.9 million shares in June 25 adding to recent purchases of stock in the company, the firm said in a stock exchange filing.

The firm had paid prices of 1.60 rupees and 1.70 rupees for the stock.

On June 25, Adam Investments said it had bought 18.5 million shares at prices ranging from 1.20 to 1.60 rupees.

On June 24, PCH Holdings said it had sold 500,000 shares at 1.20 rupees.

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Sri Lanka shares close up 0.1-pct June 26, 2014 (LBO) - Sri Lanka's shares closed 0.10 percent higher for the third consecutive day with banking stocks gaining amid thin foreign participation, brokers said.The Colombo benchmark All Share Price Index closed 6.61 points higher at 6,328.16, up 0.10 percent. The S&P SL20 closed 5.99 points higher at 3,507.54, up 0.17 percent.

Turnover was 484.95 million rupees, down from 705.26 million rupees a day earlier with 95 stocks closed positive against 72 negative.

Hemas Holdings closed 20 cents lower at 43.60 rupees with two off-market transactions of 43.50 million rupees changing hands at 43.50 rupees per share contributing 9 percent of the daily turnover.

The aggregate value of all off-the-floor deals represented 22 percent of the daily turnover.

Ceylon Leather Products W0014 closed 50 cents lower at 2.80 rupees and Central Investments and Finance closed flat at 1.20 rupees, attracting most number of trades during the day.

Foreign investors bought 127.80 million rupees worth shares while selling 81.46 million rupees worth shares.

Commercial Bank closed 2.20 rupees higher at 137.20 rupees and Property Development closed 21.60 rupees higher at 123.80 rupees, contributing most to the index gain.

Nestle Lanka closed 19.60 rupees higher at 1,950.00 rupees and Ceylon Beverage Holdings closed 30.00 rupees higher at 540.00 rupees.

Ceylinco Insurance closed 30.00 rupees higher at 1,350.00 rupees and Commercial Leasing and Finance closed 10 cents lower at 4.00 rupees.

Sri Lanka Telecom closed 80 cents lower at 46.70 rupees and Dialog Axiata closed 10 cents lower at 10.50 rupees.

Aitken Spence closed 80 cents lower at 103.20 rupees and John Keells Holdings closed 1.10 rupees lower at 222.80 rupees.

JKH’s W0022 warrants closed 80 cents lower at 60.00 rupees and its W0023 warrants closed 50 cents lower at 70.50 rupees.

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Sri Lanka looking for alternative ways to unload crude: minister June 26, 2014 (LBO) - Sri Lanka is looking for a small vessel to unload crude mid-sea from tankers and bring oil to a refinery after a hose in an offshore mooring buoy burst, petroleum minister Anura Yapa said.Sri Lanka's only oil refinery is also shut and is expected to complete maintenance and start operations on July 01, he said.

An off-shore buoy which is used to unload is now unserviceable after a pipeline burst and engineers have still not found the cause, he said. Divers have not been able to reach the breach due to rough seas for many days he said.

Experts for several crude transfer hose companies were in Sri Lanka to help determine the cause and repair the pipeline, he said.

But they were looking for a small vessel to engage in ship-to-ship transfers, which will then be unloaded at a jetty in the port, Yapa said. He said there were adequate stocks of refined fuel in the country.

"There will be no shortage of fuel in the country because we have stocks for month," Yapa said.

He said if necessary refined products could be imported. Already two thirds of the fuel to the country is imported refined.

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Sri Lanka finds better alternative to Iranian crude: minister June 27, 2014 (LBO) - Sri Lanka has found a better alternative to Iranian oil to feed its ageing refinery which was not able to get high yield of light distillates from processing other types of crude, Petroleum Minister Anura Yapa said.Sri Lanka's state-run Ceylon Petroleum Corporation was badly hit by US sanctions which prevented the import of Iranian Light crude to Sri Lanka.

The 40-year old refinery was unable to get sufficient yield of petrol and diesel from processing other types of crude.

The utility then tested about 600 different types of crude combinations, Minister Yapa said.

CPC has now found that 80 percent UAE Murban Crude and 20 percent Oman Blend gave a higher yield than even Iranian Light he said.

Yapa denied that Sri Lanka has imported Iranian crude through third parties, though reports of such shipments have emerged from time to time.

He said Sri Lanka was unable to import Iranian crude from July 2012.

The old refinery turns out a high percentage of furnace oil and it lacks technology to crack longer molecules to diesel and petrol, generating higher volumes of furnace oil even with light crudes.

Minister Yapa said several proposals to upgrade the refinery are in the final stages of being evaluated.

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Sri Lanka shares close up 0.6-pct June 27, 2014 (LBO) - Sri Lanka's shares closed 0.56 percent higher for the forth consecutive day with tobacco stocks gaining amid net foreign buying, brokers said.The Colombo benchmark All Share Price Index closed 35.33 points higher at 6,363.49, up 0.56 percent. The S&P SL20 closed 13.31 points higher at 3,520.85, up 0.38 percent.

Turnover was 1.13 billion rupees, up from 484.95 million rupees a day earlier with 90 stocks closed positive against 87 negative.

Access Engineering closed 1.00 rupee higher at 25.00 rupees with an off-market transaction of 125.00 million rupees changing hands at the same price per share contributing 11 percent of the daily turnover.

The aggregate value of all off-the-floor deals represented 32 percent of the daily turnover.

John Keells Holdings closed 2.70 rupees lower at 220.10 rupees with market transactions of 361.02 million rupees contributing 32 percent of the daily turnover while attracting most number of trades during the day.

JKH’s W0022 warrants closed flat at 60.00 rupees and its W0023 warrants closed 50 cents lower at 70.00 rupees.

Foreign investors bought 207.25 million rupees worth shares while selling 159.48 million rupees worth shares.

Ceylon Tobacco Company closed 50.80 rupees higher at 1,049.80 rupees, contributing most to the index gain.

Commercial Bank closed 2.30 rupees higher at 139.50 rupees and Lanka Orix Finance closed 10 cents lower at 3.70 rupees.

Bukit Darah closed 6.00 rupees lower at 648.00 rupees.

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Maldives' Villa College to set up Sri Lanka arm June 25, 2014 (LBO) - Villa College, a Maldives-based higher education institute, is setting up an arm in Sri Lanka which will be developed into a residential campus, the state investment promotion agency said.The first phase of the project would involve establishment of Villa College Campus in Sri Lanka in mid-2014 and commence delivery of undergraduate and postgraduate programmes in affiliation with international partners of Villa College.

In the first phase which will start in mid-2014, Villa Education Services Lanka (Pvt) Ltd will offer course in tourism management, international business and intercultural studies, finance and engineering, working with its international affiliations.

Villa College is approved by the government of Maldives and is a member of Network for Quality Assurance Agencies in Higher Education (INQAAHE) the Asia Pacific Quality Network (APQN), the Board of Investment of Sri Lanka said.

The BOI which gives tax breaks and investment approvals had signed an agreement with Ahmed Anwar, Rector of Villa College and Chief Executive of Villa Education Services Lanka.

In a second phase a university campus with student accommodation will be started from mid 2015, the BOI said.

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Sri Lanka move against terminal handling charges bearing fruit: shippers June 28, 2014 (LBO) - A Sri Lanka government regulation against a controversial fee charged from shippers who had not contracted for freight in Asian and African countries was being studied by other affected countries, an official said.Sri Lanka Shippers' Council, representing the country's exporters and importers had long protested a so-called terminal handling fee charged by shipping lines even when freight was not contracted by them.

Sri Lanka's government legislated against the move after several years of negotiations between shippers and shipping lines failed to bring any changes.

Sean Van Dort, newly elected Chairman of Sri Lanka Shippers' Council said "more ethical service providers" were now adhering to the new regulations, while some were trying to avoid them.

Van Dort said the government move was not a state intervention against the market but a carefully considered move to balance the bargaining power where negotiations had failed to end an unfair practice, that was not practiced in more developed markets.

Van Dort said the Sri Lankan body had made representations at a Global Shippers' Forum (GSF) in Montreal in 2008 and found that no such charges were levied in the US and Europe by shipping lines.

The GSF has helped them present a paper at the Asian Shippers' Council where the US and Europe had pledged their support to make changes at the International Chamber of Commerce in Paris.

The ICC in its INCOTERMS 2010 had made the position clear regarding the freight on containerized cargo.

"You will appreciated that we did not request the government to interfere in fixing prices or charges, but to recognize the fact that such charges are part of the freight…," he told business forum in Colombo after the annual general meeting of the Council where Treasury Secretary P B Jayasundera was the chief guest.

The regulations on terminal handling charges were announced in last year's budget.

He said Sri Lankan shippers faced difficulty with the British Shippers' Council who were influenced by a leading buyer of Sri Lanka who he claimed was mis-informed.

He said the principle behind the law was explained. He said following presentations by Sri Lanka Shippers's Council at Asian Shippers' Council forum in Shanghai in 2013 and the Global Shippers' Council meet in Los Angeles there was no understanding of the issue.

Van Dort quoted GSF Secretary General Chris Welsh as saying that: 'Shippers in Africa, Asia and South America have now called time on these unacceptable shipping practices which long ago disappeared in European, North American and liner shipping trades in other more developed economies. In addition we will support the implementation of the kind of national legislation introduced in Sri Lanka to deal with this widespread problem.'

He said 18 countries in the Union of African Shippers' Council and national bodies in Brazil, Pakistan and India had requested the piece of Sri Lankan legislation.

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Mark Young head of Asia Pacific Financial Institutions at Fitch Ratings said with weaker credit growth there was room for an improvement in the indicator.

Fitch put Sri Lanka's financial system on category '3' when credit growth was high and there was a stock market bubble, amid fears of a spillover over to property.

"Number 3 suggests high potential for system risk," Young said. "How are indicator works it is driven by three areas: credit growth, potential for asset price bubbles and real exchange rate.

"If two of those three are above trend, we hit number three. Number 3 suggests high potential for system risk."

A Fitch report released in December 2011 revealed that Fitch had placed Sri Lanka's financial system on a high-risk category ( Sri Lanka among high risk financial systems: Fitch).

In August 2011, LBO's economics columnist also warned (Sri Lanka can avoid currency trouble with consistent policy: fuss-budget that Sri Lanka was heading for a balance of payments crisis after data showed that the island was sterilizing foreign exchange sales with central bank credit (printed money).

"To head off any 'balance of payments' problem the central bank has to weaken the rupee or allow interest rates to go up," the column warned.

"If neither happens, credit expansion is on track to crash land in the balance of payments."

In 2011 Sri Lanka's government started subsidizing energy with commercial bank credit, at a time when credit growth was already high, pushing imports to unsustainable levels.

The central bank then started to sterilize foreign exchange sales with liquidity injections giving further ammunition for banks to give credit, delaying a rate increase and driving up aggregate demand to unsustainable levels.

Sterilizing forex sales with liquidity injects new cash into the banking system, allowing banks to give loans over and above their deposits and loan repayments.

Typically the Central Bank will take Treasury bills in bank balance sheets to its own by rejecting bids at weekly Treasury bill auctions to generate excess demand, increasing the loan- to-deposit ratio of the banking system.

But eventually loss of foreign reserves forces a correction, pushing up interest rates.

"At one point lending rates will no longer make economic sense for some businesses. They will start to default," the the column warned.

"By this time banks will also be borrowing at high rates. Then deposit rates will hit levels where it makes no sense even for banks and finance companies to borrow. Bad loans will damage bank balance sheets."

In some cases (when lenders are badly damaged) bank runs could also be triggered, the column said.

In previous episodes of balance of payments troubles, such as in 2004 the state got printed money to supplement the budget by directly selling Treasury bills to the Central Bank after foregoing taxes due from an energy utility.

Analysts say energy subsidies have always figured in Sri Lanka's balance of payments crises, including the most recent ones in 2000/2001 and 2008/2009, and a key risk to the economy could be eliminated by having automatic price adjustments.

Young said Fitch's Macro-Prudential indicator may be upgraded in the future, though it has to remain for three periods after it was last triggered.

"It will be there for a while. It is backward looking," Young said. "It just gives the reader or user and indication that there were potential risks in the system and it was primarily rapid credit growth and potential for asset bubbles."

Young said some of the risks have come through and is seen in an increase in bad loans.

"So now you see much lower credit growth in Sri Lanka," Young said.

"So at some point we would expect Sri Lanka not to be on 3. It may come to 2 or 1. The exact timing I am not sure."

In Asia among Fitch rated countries, China, Hong Kong, Mongolia and Indonesia remains in the red. Vietnam which was in the category '3' has now been placed on '2'.

Update II

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The technology titan laid out a sweeping vision at the opening of a sold-out developers conference in a keynote presentation streamed online to millions of people across the world.

"We are beginning to evolve our platforms beyond mobile," Android and Chrome teams chief Sundar Pichai said of how Google's twin operating systems are being adapted to work with one another and with new types of computing hardware.

Google's goal, according to Pichai, is to have its software be a foundation for applications, services or digital content delivered seamlessly across the increasingly diverse array of Internet-linked screens in people's lives.

A new LG G smartwatch and a freshly-announced Gear Live smartwatch by Samsung that both work with the "Android Wear" platform debuted Wednesday at the online shop Google Play.

On-stage demonstrations included ordering a pizza in seconds, fielding reminders and messages, and using voice commands on smartwatches.

An eagerly awaited Moto 360 smartwatch is due to join the Android Wear lineup later this year.

"These are the first three watches, but there are more on the way," Pichai said.

- Android on the road -

Android Auto software for cars, synching smartphones with in-dashboard screens and controls, is being shared with automakers, and vehicles are set to be equipped by the end of this year.

Android Auto brings apps like Google Maps and Spotify music service to an "interface built for driving," according to a freshly formed coalition of technology and car companies called the Open Automotive Alliance.

Google also announced another shot at smart televisions with Android TV software for what are typically the biggest screens in homes.

Google is giving televisions "the same level of attention that phones and tablets have enjoyed," according to Android engineering director Dave Burke.

Android smartphones, complete with voice command features, could be used to direct searches and more on television screens, an on-stage demonstration showed.

Games from the Google Play shop could also be played on televisions.

- Expanding Google empire -

"The Google empire is trying to grow," Gartner consumer technology research director Brian Blau told AFP on the sidelines of the San Francisco keynote presentation.

"Google is trying to be more like Apple; create more consistent experiences with devices that work together."

Handset or tablet makers are free to customize free Android software to suit hardware and set themselves apart from rivals, but this has resulted in popular applications working on some gadgets and not others in a situation referred to as "fragmentation."

Apple, on the other hand, so tightly controls software powering iPhones, iPads and iPod touch devices that developers can more easily target broad audiences.

Improving how well popular services or applications work across Android devices should also entice users to "lock in" to the platform the way Apple devotees remain loyal to the Cupertino, California company's gear, according to Blau.

"Lots of variations of Android make developers work harder to support all those devices," the analyst said.

"A consistent experience will help Google in the long run."

Google also showed off steps it is taking to make Android devices along with its services offered in the Internet "cloud" amenable to workplaces.

Improvements include tools for separating personal and company uses of mobile devices, as well as better handling of files made using Microsoft Word, Excel or PowerPoint programs.

Outside the convention center, protesters dressed as "Star Wars" film bad guy Darth Vader to remind Google of its founding vow not to be evil.

Protests did not disrupt on-stage presentations, and Pichai made a point of addressing criticism that women engineers are scarce in Silicon Valley firms.

Among those watching the conference online was a group of female developers in Nigeria, said Pichai, who noted that more than a fifth of those taking part in the conference are women.

"We are working hard to elevate women in computer sciences," Pichai said.

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"As an industry we are not doing very well. This is not common to us but even the other companies face a similar situation," Yasas De Silva, Brand Manager of Nippon Pain Lanka (Pvt) Limited told LBO.

"This is probably to do with the disposable income with the end users. That’s the main issue.

"When it comes to paint, it's the least important part of everyday life of the people. People spend more on their essentials.

Listed Tokyo Cement Plc has reported that sales fell 13 percent to 2.3 billion rupees in the first quarter of 2014 from a year earlier, indicating a slump in construction activity.

ACL Cables, power cables maker said, revenues fell to 2.3 billion rupees in the March quarter from 3.1 billion rupees a year earlier while gross profits surged to 539 million rupees from 428 million rupees.

In Sri Lanka due to import protection, prices don't fall fast even when international commodity prices go down due to import protectionism practiced against the people by the state, critics have said.

Sri Lanka's economic activity has slowed following a balance of payments crisis which triggered high inflation after mid 2012 due to currency depreciation.

He said though interest rates are low, people are not yet taking loans with building material costs remaining high.

Nippon Lanka Paint, which is an affiliate of Nippon Paint Japan sells under the brand Nippolac and says it has a 23 percent market share in the decorative paints segment.

It is also making inroads to the automotive paint market from last year, which is estimated at about five billion rupees a year.

Before 2013 the market has grown about 20 percent year and had then it has stopped growing.

With weak demand stocks remain with dealers for longer periods at the moment.

"We give 5-10 four liter buckets for each dealer in each colour," Yasas said. "We have to maintain many dealers island wide and day in day out we are adding stocks.

"So when the market is not doing well our stocks gets stuck and we do not get paid and we are facing an outstanding crisis.

"Dealer will say 'I can’t pay because it won’t get sold. If you really want you can take the paints back'. We have never experienced this kind of a situation in the market."

There was also heavy discounting among paint makers amid rising demands from dealers.

"Dealers keep asking more and more discounts," De Silva said."So all the companies end up giving various discounts over each other and the growth of the industry will slow due to it.

"Every paint company is losing to the dealer and the dealer is enjoying the huge mark up

"Dealers sell paints where they get a huge discount. It’s a discount battle that we are engaged with. That's why the companies have to engage more with the customer, so that the buying decision and the power will remain with the customers."

A key factor that discourages people is also the high cost of labour.

"The labor cost is very high rather than the paint," De Silva said. "That's another challenge the entire paint industry is facing."

Nippon Paints is pushing a DIY strategy in a bid to kindle demand and rejuvenate the market.

"So you have to come up with more innovative ways and get people engage with Do-It-Yourself kind of ways to grow the market," De Silva said.

Nippon Paint Lanka has just launched a mobile app where customers can try colours and visualize how their house will look before buying paint.

It will also enable the customer to blend the colours and build up their own colour.

The users who don’t have a smart phone can experience the same in the web tools by just uploading a photo of their house.

"People who use the internet in Sri Lanka picking up in a rapid pace," Raja Hewabowala Managing Director of Nippon Paint Lanka said.

"This is high time for us to enter and capture that market."

Hewabowala said there are about four million internet users in Sri Lanka and two million of Face book users.

"That’s a smart sign and with that we can do miracles with colours," Hewabowala said.

Nippon Lanka said the company also in the process of hiring painters to create a painter team for every district to undertake the work for a better rate.

"There are people who do not have time to do it by themselves. So those people need a painter for their needs," Silva said.

"We are planning to create a painters team for every district starting from Colombo which we undertake the job for them at a very nominal rate.

"We have to do lot of ground work by hiring painters and measuring their skill levels and train them if they are no skilled enough to do a professional painting job."

The project will be launched in mid-2015 in Colombo district De Silva said.

Update II

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Sri Lanka Treasuries edge lower June 25, 2014 (LBO) - Sri Lanka's Treasuries yield eased lower across maturities at Wednesday's auction, data from the state debt office said.The 3-month yield fell 02 basis points to 6.51 percent and the 6-month yield also fell 02 basis points to 6.69 percent.

The 12-month yield fell 01 basis point to 6.99 percent.

The debt office said 1.00 billion rupees in 3-month bills, 1.00 billion in 6-month bills and 20.00 billion in one year bills totaling 22.00 billion rupees were sold after offering 12.00 billion for rollover.

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Mystery executive 'dupes' top Australian retailer SYDNEY, June 26, 2014 (AFP) - Andrew Flanagan appeared to have a glittering resume with senior roles at global retailers Tesco, Walmart and Zara's parent company Inditex when he was hired by a leading Australian firm.But, in his first week as one the key executives at top department store Myer, he was sacked Tuesday for allegedly falsifying his CV.

It emerged that he had never worked for Spanish clothing giant Zara, as claimed, and questions were raised over the rest of his career.

The case has caused a stir within Australia's recruitment and retail industries and raised questions about how Flanagan could have had secured a senior position without red flags being raised.

Flanagan's recruiter Quest Personnel said Thursday Myer was not the only firm interested in hiring him on the basis of his apparent past experience, with several leading retailers also interviewing him "at length".

"Some of these interviews took place at board level," Quest's managing director Lorraine Tribe said in a statement, adding that "detailed reference checks were carried out both locally and internationally".

Flanagan was believed to be an American living in south-east Melbourne, according to company registry documents seen by Fairfax Media and News Limited.

He reportedly had a young son and participated in a swimming club in the southern Australian city.

Tribe said her recruitment firm had reported Flanagan to investigators, although Victorian police said they could not confirm that.

"For his successful position, Mr Flanagan was interviewed by Quest Personnel and also by senior executives of the client on at least three occasions," she said.

"It now appears that both Quest and regrettably our clients were provided with incorrect and misleading information in relation to Mr Flanagan's employment history."

Zara told Fairfax Media that Flanagan "was not part and has never been employed by the company".

"He has not held the position of managing director and vice president for Asia Pacific," Zara added, as he claimed.

Myer announced last week that Flanagan had been hired as its group general manager for strategy and business development and would report directly to the company's chief financial officer.

The retailer, which runs one of Australia's largest department store chains, told the Herald Sun that "Flanagan's contract has been terminated" and there were "a number of investigations taking place".

Flanagan was not available for comment.

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Sri Lanka's CPC to make Rs10bn in profits in 2014: minister June 26, 2014 (LBO) - Sri Lanka's state-run Ceylon Petroleum Corporation said it was on track to make between 8 to 10 billion rupees in profits in 2014, after narrowing losses in 2013, a minister said.Petroleum minister Anura Yapa said CPC had made a 2.1 billion rupee operational profit in the first four months of 2014. In 2013 the utility narrowed losses to 7,984 million rupees from a 97,308 million loss in 2012. Minister Yapa said the utility was on track to make 8 to 10 billion rupees in profits unless prices escalate.

Already recent troubles in Iraq had sent oil prices up by about a dollar a barrel, he said.

Sri Lanka does not market price fuel daily unlike in low inflation countries and the elected ruling class has typically manipulated energy prices generating macro-economic instability.

When ruling administrations try to raise prices, other sections of the elected ruling class oppose such moves.

Sri Lanka's state run energy utilities typically trigger balance of payments crises and inflation in Sri Lanka by selling imported energy below cost and financing the gap with bank credit which are ultimately accommodated by central bank credit (printed money).

When the energy utilities make profits, the domestic currency is strong and inflation low.

Huge losses and unpaid dues to the petroleum utility triggered sent the rupee plunging to 130 to the US dollar from 110 in 2012.

Analysts say Sri Lanka's population is easy to deceive since there is a strong belief in neo-Mercantilism cost-push inflation theory even among the intelligentsia, where diesel in particular is thought to be the prime cause of price rises, rather than monetary policy.

As a result even now diesel - the most expensive fuel to import after kerosene and now known to be carcinogenic- is sold below the price of petrol, the cheapest fuel.

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Sri Lanka shares close up 0.2-pct June 24, 2014 (LBO) - Sri Lanka's shares closed 0.18 percent higher with index heavy John Keells Holdings gaining amid strong foreign buying, brokers said.The Colombo benchmark All Share Price Index closed 11.52 points higher at 6,310.87, up 0.18 percent. The S&P SL20 closed 21.19 points higher at 3,496.12, up 0.61 percent.

Turnover was 874.88 million rupees, up from 867.34 million rupees a day earlier with 91 stocks closed positive against 75 negative.

John Keells Holdings closed 1.80 rupees higher at 221.80 rupees with two off-market transactions of 211.25 million rupees changing hands at 221.00 rupees per share contributing 24 percent of the turnover.

JKH’s W0022 warrants closed 1.20 rupees higher at 60.00 rupees and its W0023 warrants closed 90 cents higher at 71.00 rupees.

The aggregate value of all off-the-floor deals represented 43 percent of the daily turnover.

PCH Holdings closed 40 cents higher at 1.40 rupees and PC Pharma closed 40 cents higher at 1.80 rupees, attracting most number of trades during the day.

Foreign investors bought 416.96 million rupees worth shares while selling 85.74 million rupees worth shares.

Commercial Bank closed 1.60 rupees higher at 135.00 rupees and National Development Bank closed 4.90 rupees higher at 199.90 rupees.

Ceylon Tobacco Company closed 4.90 rupees higher at 999.90 rupees and Nestle Lanka closed 4.00 rupees higher at 1,941.00 rupees.

Dialog Axiata closed 10 cents higher at 10.50 rupees and Sri Lanka Telecom closed 40 cents lower at 47.50 rupees.

Ceylon Beverage Holdings closed 38.10 rupees lower at 510.00 rupees and Lion Brewery Ceylon closed 4.30 rupees lower at 450.00 rupees.

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Japan consumer prices rise 3.4-pct on-year in May: govt TOKYO, June 27, 2014 (AFP) - Japanese consumer inflation rose at the fastest pace in decades in May as a sales tax hike introduced to help reverse years of falling prices started to bite, official data showed Friday.Japan's core consumer prices, stripping out volatile fresh food prices, rose 3.4 percent year-on-year in May, the internal affairs ministry said.

It was higher than a 3.2 percent increase in April and matched market expectations.

The May rise was the fastest increase since April 1982, according to official data, but the rise stemmed largely from a sales tax hike.

Japan raised its consumption tax rate to 8.0 percent from 5.0 percent on April 1 in the nation's first sales levy hike in 17 years.

Excluding the effect of the higher tax on prices, Japan's core consumer prices rose 1.4 percent in May, just below a 1.5-percent increase the previous month, but within the range expected by Bank of Japan governor Haruhiko Kuroda.

The central bank has targeted 2.0 percent inflation excluding the tax hike effect.

Shinzo Shinzo Abe's government has put conquering deflation and stoking growth in the world's third-largest economy at the top of its agenda with a policy blitz dubbed "Abenomics".

-- Dow Jones Newswires contributed to this article --

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June 23, 2014 (LBO) - Sri Lanka's shares closed 0.05 percent lower for the forth straight day amid strong foreign selling, brokers said.The Colombo benchmark All Share Price Index closed 3.10 points lower at 6,299.35, down 0.05 percent. The S&P SL20 closed 3.93 points lower at 3,474.93, down 0.11 percent.

Turnover was 867.34 million rupees, down from 1.21 billion rupees last Friday with 67 stocks closed positive against 110 negative.

Commercial Bank closed 40 cents higher at 133.40 rupees with four off-market transactions of 135.37 million rupees changing hands at 133.90 rupees per share contributing 16 percent of the turnover.

The aggregate value of all off-the-floor deals represented 30 percent of the daily turnover.

PC Pharma closed 20 cents higher at 1.40 rupees and Ceylon Leather Products W0014 warrants closed 60 cents higher at 2.40 rupees, attracting most number of trades during the day.

Foreign investors bought 266.34 million rupees worth shares while selling 446.45 million rupees worth shares.

Nestle Lanka closed 12.60 rupees lower at 1,937.00 rupees and John Keells Holdings closed 70 cents lower at 220.00 rupees.

JKH’s W0022 warrants closed 1.70 rupees lower at 58.80 rupees and its W0023 warrants closed 50 cents lower at 70.10 rupees.

NDB closed 4.00 rupees lower at 195.00 rupees and Commercial Leasing and Finance closed 10 cents lower at 4.00 rupees.

Sri Lanka Telecom closed 1.30 rupees higher at 47.90 rupees and Dialog Axiata closed flat at 10.40 rupees.

Cargills Ceylon closed 6.20 rupees higher at 152.50 rupees and Ceylon Tobacco Company closed 5.50 rupees higher at 995.00 rupees.

Lion Brewery Ceylon closed 10.40 rupees higher at 454.30 rupees.

In a stock exchange filing, NDB capital Holdings said, the company is initiating a process to de-list its ordinary shares from the CSE subject to shareholder and regulatory approvals.

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Not, however, in the Austrian town of Amstetten, where a pilot project by the local utility company is "recycling" this energy from a place where normally few dare to tread -- the sewer.

This it uses to heat 4,000 square metres (45,000 square feet) of buildings, or cool them in summer, allowing it to dispense entirely with gas and reduce its carbon footprint.

"Almost every week we get a visit from a different delegation coming to look," Robert Simmer, the enthusiastic boss of Stadtwerke Amstetten, told AFP as he showed off the project.

"There is a French delegation coming next week, and then a Spanish one ... We are starting to lack the resources, we need to beef up our personnel to handle all the tours we have to do."

Along a 42-metre (yard) stretch of sewer where the water temperature can reach 27 C (81 F), the firm has put in place a high-tech installation.

Water running in pipes adjacent to -- but separated from -- the sewer is warmed by devices called heat exchangers that "suck" the warmth out.

This warmed water is then pumped to the nearby headquarters where a highly efficient heat pump fires the central heating system.

- A clean advantage -

"The water that is pumped over here is clean, there is no fecal matter. The equipment inside (the sewer) is also self-cleaning," Simmer said.

Even though extra electricity for the heat pump -- devices also used in fridges and freezers -- costs the firm 6,500 euros ($8,850) per year, the savings are substantial compared to what it used to spend on gas.

"We have invested 240,000 euros," Simmer said. "This should be recouped within around 11 years. With any other renewable energy source like solar power, it wouldn't be any sooner."

Amstetten's utility firm is lucky because a nearby paper factory pumps hot water into the sewer, making it warmer than normal.

In addition, the firm uses under-floor heating, which is more efficient than radiators on the walls.

But even in places without such advantages, the potential for the technology is substantial, said Florian Kretschmer from Vienna's University of Natural Resources and Life Sciences (BOKU).

"The advantage from this technology is that you have a very regional resource, and waste water is always present," Kretschmer told AFP.

Other similar projects exist in Germany, and Austria's Alpine neighbour Switzerland is particularly advanced, with more than 200, and the potential is considerable, he said.

- Weaning off fossil fuels -

A study done by the BOKU and others estimates that between three and five percent of buildings in Austria could be heated using this technology, with larger buildings such as schools or office blocks particularly well-suited.

This doesn't sound a lot, Kretschmer admits, but combined with other "clean" technologies like solar and wind power, it can play a role in weaning Europe off fossil fuels.

"Of course this alone is not going to solve the world's energy problems," Kretschmer said. "But what we need in the future is a good mix (of ways to produce power), and energy from waste water can play a part in this."

One potential downside is the temperature of the sewer water might fall to such an extent that it would affect sewage treatment plants. But this would only happen if the technology was used on a very large scale.

"Sewage treatment plants are highly dependent on temperature. If the water going into the treatment plants is cooled, then this has a negative effect on the performance of the treatment plant," Kretschmer said.

As a result, the BOKU is investigating the possibility of extracting heat from cleaned water downstream of treatment plans.

"In fact that would even be positive, because it will cool the water a bit before it flows into rivers," Kretschmer said.

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Police spokesman Ajith Rohana said security would be stepped up in Colombo Monday following reports that a Muslim group was planning a demonstration to denounce an alleged arson attack at a Muslim-owned shop over the weekend.

"We have reports of a hartal (work stoppage) on Monday," Rohana told AFP. "We are making arrangements to ensure that there is no trouble. There will be tighter security."

He dismissed the barrage of media criticism Sunday that police should take the blame for anti-Muslim riots carried out by hardline Buddhists a week ago which left four people dead, 80 wounded, and hundreds of homes and shops destroyed.

"It is unfair to blame one individual, there are so many factors involved," Rohana said, referring to a call for Inspector General of Police (IGP) N. K. Illangakoon to step down.

The privately-run The Nation weekly took the unusual step Sunday of leading its front page with an editorial, with the blunt headline: "The IGP must resign".

Other media joined in blasting officials for failing to rein in a hardline Buddhist group known as the Bodu Bala Sena (BBS or the Buddhist Force), blamed for much of the unrest.

"Arrest him," the Sunday Leader newspaper demanded in a headline, referring to the head of the BBS, Galagodaatte Gnanasara, who has publicly denied causing trouble.

Sri Lanka's Sunday Times said the burning down of the Muslim-owned No-Limit clothing store outside Colombo on Saturday "is an indication that some people might want this violence to spread".

Police were investigating the cause of the blaze, which Justice Minister Rauf Hakeem, the most senior Muslim in President Mahinda Rajapakse's cabinet, described Saturday as an arson attack.

Rohana said forensic experts were expected to visit the charred building on Monday.

- Government accused of links to BBS -

The Sunday Times said a majority of Buddhists in the country did not support the extremist views of the few monks who were behind the hate campaign, and that they should be dealt with before the unrest escalates further.

Some reports also echoed charges by the main opposition United National Party that patronage by senior government figures may have held police back from acting against the BBS.

The UNP has accused the country's powerful defence secretary and president's younger brother, Gotabhaya Rajapakse, of backing the BBS.

Gotabhaya Rajapakse had opened a Buddhist cultural centre at the southern town of Galle in March last year in the company of BBS leaders, while President Mahinda Rajapakse opened a Buddhist centre with a BBS leader in Colombo in April 2011.

Justice Minister Hakeem has strongly criticised the BBS and has asked the president to order an independent probe into last week's riots targeting Muslims, who account for some 10 percent of Sri Lanka's population of 20 million.

Hakeem, in a statement issued on Saturday night, blamed the government for failing to control the BBS, which last year led a successful campaign to take halal certification off food sold to non-Muslims in the majority-Buddhist nation.

"Irrespective of who is responsible for the terrible events that unfolded... none would dispute that it was a serious dislocation of the ability of the state to maintain the rule of law," Hakeem said after an emergency meeting Saturday with the president.

The president has said he is ordering a probe into "recent disturbances".

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Sri Lanka's foreign reserves at US$8.9bn in April 2014 June 22, 2014 (LBO) - Sri Lanka's foreign reserves rose to 8.9 billion US dollars in June 2014 from 8.05 billion in March, boosted by foreign borrowings and weak credit that reduced outflows, official data showed.The Central Bank said foreign reserves were now equal to 5.9 months of imports.

The central bank has been buying dollars heavily in the forex market as weak credit curtailed imports and the trade gap narrowed, amid a pick-up in exports.

In April, the government the government also sold a 500 million US dollars sovereign bond, the proceeds of which will generate imports in the future.

The Central Bank said there was a 'balance of payments surplus' of 1.544 billion US dollars in the first four months of the year, up from 352 million US dollars a year earlier.

The Central Bank had bought 550 million US dollars from forex markets to prevent the rupee from appreciating and to build up reserves.

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England were 320 for six in reply to Sri Lanka's 257, a lead of 63 runs, at stumps after Robson had made 127 in only his second Test.

But with England on the verge of taking command, Sri Lanka fought back with three wickets late in the day.

And both Matt Prior (three not out) and Chris Jordan (four not out) were dropped before the close.

"It was a special day, I got a bit of a start last night but I just wanted to fight hard this morning and get us into a decent position," 24 year-old Robson told Sky Sports.

Robson's debut, in the drawn first Test of this two-match series at Lord's, his Middlesex home ground, had yielded scores of just one and 19.

"My debut at Lord's was unbelievable, a bit overwhelming in some respects, so I was looking forward to coming up here and focusing on the cricket rather than the party, as it were," Robson explained after scoring a century witnessed by a Headingley crowd that included both his Australian father and English-born mother.

England resumed Saturday on 36 without loss after Yorkshire fast bowler Liam Plunkett had taken Test-best figures of five for 64 on his home ground and Stuart Broad a hat-trick on Friday.

Alastair Cook, the England captain, had added just three runs to his overnight 14 when he nicked paceman Dhammika Prasad to Kumar Sangakkara at first slip.

That left Cook still searching for his first Test century since the last of his England record 25 hundreds at Headingley last year.

But Robson, 21 not out overnight, confidently off-drove Shaminda Eranga for four.

Meanwhile, Gary Ballance, fresh from his maiden Test hundred, hit well-struck fours off both seamer Nuwan Pradeep and left-arm spinner Rangana Herath.

- Luckless -

Robson's edged boundary off Pradeep saw him to 50 and at lunch England were 106 for one.

Ballance had added just one to his lunch score of 30 when Herath struck him on the pad New Zealand umpire Billy Bowden upheld Sri Lanka's lbw appeal but England challenged and, with the Decision Review System indicating the ball would have turned past leg stump, Yorkshire's Ballance survived.

The Zimbabwe-born left-hander had another reprieve when on 61, he was dropped at short leg off the inside edge by Kaushal Silva, with Herath again the luckless bowler.

Robson also had a break on 78 when he was hit on the pad by Prasad but Sri Lanka, thinking he had hit the ball, did not appeal.

Sri Lanka captain Angelo Mathews brought himself on with England 183 for one off 65 overs.

And the all-rounder's ninth ball did the trick, Ballance (74) edging to wicketkeeper Dinesh Chandimal, recalled after Prasanna Jayawardene broke a finger at Lord's.

Robson, 98 not out at tea, went to three figures with a two into the covers off Prasad before lofting Herath over long-on for six -- only his sixth six in 73 first-class matches.

But Robson's six-and-a-quarter hour innings finished when, after Sri Lanka had taken the new ball, he was bowled between bat and pad by Pradeep to end a 253-ball knock also featuring 15 fours.

Robson put on 142 for the second wicket with Ballance and 87 for the third with Ian Bell, appearing in his 100th Test.

It seemed there was little to stop the experienced Bell joining the select group of seven players who had made hundreds in their 100th Test until, on 64, he didn't get enough on a glance off Eranga and was caught by Chandimal.

England were still on 311 when Joe Root (13), opening the face, was caught behind off Mathews.

The medium-pacer nearly had another wicket when Prior, then on nought, checked a drive only for Mathews to drop the low return chance.

But Sri Lanka struck again when Moeen Ali, playing away from his body, edged Eranga to give Chandimal his fourth catch of the innings.

Jordan had made just one when he thrashed at Prasad and Dimuth Karunaratne at short extra-cover failed to hold a tough chance.

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"The Arctic is one of the world's largest remaining regions of undiscovered conventional oil and natural gas resources," said Rex Tillerson, chief executive for US giant ExxonMobil, during a major industry conference in Moscow last week.

Tim Dodson, a senior executive at Norwegian group Statoil and who was speaking also at the World Petroleum Congress, said the Arctic "is one of the very few remaining areas with the potential to make huge discoveries".

More than 20 percent of the world's hydrocarbon reserves yet to be discovered are situated in the Arctic, according to a 2008 report by government agency the US Geological Survey (USGS).

Such reserves are said to be located largely in Russia, stretching from Western Siberia to the extreme east of the country.

While Tillerson stresses that the Arctic "is not unfamiliar territory" for the oil industry -- large fields have been explored and exploited for decades in Alaska, the north of Norway and in Russia's Sakhalin region -- Dodson is quick to point out the challenges.

"The climatic conditions are probably the most visible challenge. Ice, snow, cold and darkness all contribute to an environment that can be both hostile and beautiful."

Dodson added: "To unlock the full potential of the Arctic and also to make Arctic projects commercially viable and globally competitive, we need new technology and innovative business models."

- Cost constraints -

Oleg Mikhaylov, vice-president for oil and gas production at Russian group Bashneft, insisted that exploration of the Russian Arctic "will require significant support from the Russian government in addition to investments by private corporations".

He told the gathering in Moscow: "If you envision full-scale development of the Arctic you have to envision moving millions of tonnes of supplies to one of the most remote regions of the world."

Mikhaylov said this would require expansion of railroad infrastructure and the building of a network of ports, in addition to other major constructions.

Global warming has in recent times caused the Arctic ice cap to melt and open new navigation routes leading to previously inaccessible raw materials.

But there are clear risks and according to Mikhaylov, dealing with an oil spill offshore in the Arctic "would be an even more daunting challenge" than the 2010 BP oil disaster in the Gulf of Mexico.

Environmental groups such as Greenpeace are keen to point out such risks, occasionally at the risk of consequences to themselves.

Russian security forces in September detained 30 Greenpeace activists and journalists and seized their Arctic Sunrise ship following protests over an offshore oil rig owned by Russian energy giant Gazprom.

The 30, including four Russians, were detained for around two months before being bailed and then benefiting from a Kremlin-backed amnesty.

Non-governmental organisations such as Greenpeace claim that Arctic oil and gas exploration not only harms a fragile ecosystem -- home to endangered species such as polar bears and cetaceans -- but also accelerates climate change.

Faced with such obstacles, energy companies need to achieve technological breakthroughs or see the high costs associated with such exploration potentially end certain Arctic projects.

For now though the drilling continues. Statoil for example is in the process of designing a new class of drilling ships, specially adapted to withstand extreme Arctic weather conditions.

And French group Total has for a number of years worked with Gazprom to find a cost-effective way of exploiting the giant gas field of Shtokman in the Barents Sea.

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Sri Lanka state shipping line to buy tanker, two bulk carriers June 20, 2014 (LBO) - Sri Lanka state-run Ceylon Shipping Lines will buy a tanker to transport crude in addition to two bulk carriers, as part of building up a plan to become a shipping hub, information minister Keheliya Rambukwelle said.Cabinet approval has been given to buy a tanker to transport crude for Ceylon Petroleum Corporation following an agreement with the petroleum utility.

Ceylon Shipping Lines had been given a monopoly to transport crude and coal. The energy utilities tender for the fuel free on board (FOB) without freight.

Two 63,000 dead weight ton bulk carriers are expected to be delivered in 2015 and 2016,a state firm coming under the power ministry. Their purchase is being financed by a loan from state-run People's Bank.

CSL has been transporting coal for Lanka Coal Company (Pvt) Ltd, using contracted foreign ships since 2010.

Until the shipping line has sufficient capacity it will be given a commission of about a one US dollar per tonne for freight (about 5 percent freight charge) contracted from third party carriers.

The new vessels will also be used to train cadets from Sri Lanka's maritime academies.

Sri Lanka's state transport utilities on road, rail and the air have been making big losses and have drawn criticism for their heavy burden on tax payers.

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Sri Lanka exports up 9.4-pct in April, trade gap down amid weak credit June 20, 2014 (LBO) - Sri Lanka's exports grew 9.4 percent to 762.2 million US dollars, while imports fell 5.3 percent in April from a year earlier, amid weak domestic credit, allowing foreign reserves to grow, official data showed.Apparel exports grew 22.5 percent in April to 336.8 million dollars from a year earlier with strong demand from the US and EU, the Central Bank said. Small markets like Russia and also seen a strong growth.

Agricultural products grew 13.7 percent to 199.7 million dollars. Tea grew 9.8 percent to 116.8 million US dollars with both price and volume gains helping.

Rubber product exports fell 0.6 percent to 57.9 million US dollars.

Imports fell 5.3 percent to 1,444.5 million US dollars with consumer goods down 3.2 percent to 263.9 million US dollars. Food and beverages fell 14.2 percent to 108.8 million US dollars.

Intermediate goods grew 0.2 percent to 889.3 million US dollars with textile related imports up 16.6 percent to 179.8 million US dollars, amid strong apparel exports.

Fuel was down 8.8 percent to 316 million US dollars.

Investment goods were down 20.4 percent to 289.2 million US dollars. Machinery was down 17.7 percent to 153.5 million US dollars and transport equipment was down 42.1 percent to 34.9 million US dollars.

Building material imports were down 13.6 percent to 100.5 million US dollars.

The trade gap in April fell 17.7 percent to 682.2 million US dollars.

In the five months to April, exports rose 16.9 percent to 3,571.1 million US dollars, and imports rose only 2.6 percent to 6,192.4 million US dollars, The trade gap declined 12.1 percent to 2,621 million US dollars.

The trade gap is caused when inflows to the financial accounts such as government foreign borrowings (exports of debt) and remittances (exports of labour) are spent by their recipients.

However Sri Lanka's credit growth has been weak or negative in the past few months.

When domestic credit is weak, all inflows are not quickly spent and resulting in liquidity build ups in the domestic banking system and an increase in foreign reserves at the Central Bank.

Foreign reserves rose to 8.9 billion US dollar by end April partly helped by a 500 million US sovereign dollar bond sale.

Corrected - Trade data relates to April 2014

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Cricket: 'Clueless' Broad takes his second Test hat-trick LEEDS, June 20, 2014 (AFP) - Stuart Broad admitted he had no idea he had become the first England bowler to take two Test hat-tricks and just the fourth in all after he struck with three succesive balls against Sri Lanka at Headingley on Friday.The seamer, who had previously performed the feat against India at Trent Bridge in 2011, struck with the final ball of his 12th over to have Kumar Sangakkara well caught for 79 by Ian Bell in the gully.

The first ball of his next over saw Broad have Dinesh Chadimal caught at first slip by England captain Alastair Cook for 45. Next ball saw Shaminda Eranga caught behind by wicketkeeper Matt Prior.

But because the hat-trick had been split across two overs neither Broad nor his England team-mates realised what he had achieved until the public address announcer informed the crowd.

"I had no idea!," Broad told Sky Sports. "I was listening to the guy that came on the tannoy there and I was thinking 'why is he mentioning the last ball of the over before?', and it clicked that that might be a hat-trick."

Sri Lanka were eventually dismissed for 257 on the first day of the second Test on Friday after losing the toss.

Broad was only the fourth player in Test history to have twice taken a hat-trick after the Australian duo of Hugh Trumble (1901/02 and 1903/04) and Jimmy Matthews, who performed the feat twice in the same match against South Africa in Manchester in 1912, and Pakistan great Wasim Akram, who took hat-tricks in successive Tests against Sri Lanka in 1998/99.

Broad's latest hat-trick was only the second in all Tests since his last one following Sohag Gazi's for Bangladesh against New Zealand in 2013/14.

And it was also the 13th instance in total of an England bowler taking a Test hat-trick.

Broad's treble-strike deflected some attention away from Liam Plunkett's maiden five-wicket haul, with the fast bowler taking five for 64 on his Headingley home ground after Cook won the toss in initially overcast conditions.

But as the Leeds' skies brightened up, Sri Lanka checked England's progress with a sixth-wicket stand of 67 between Sangakkara and Chandimal before Broad removed the former to spark a rapid collapse.

"It was an excellent bowling performance all round, Liam's got the five wickets and Jimmy (Anderson, two for 49) tied an end up really well.

"There's always pressure when you win the toss and bowl, you sort of think it should be 200 all out, but we're pleased with 270 and to get off 15 overs early.

"We had an awkward hour or so there and I think that Sangakkara wicket was the big one," Broad added.

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Sri Lanka probes Muslim store fire as tensions rise COLOMBO, June 21, 2014 (AFP) - Sri Lankan police were investigating a fire which Saturday destroyed a Muslim-owned clothing store in a district where religious tensions have been heightened after anti-Muslim riots killed four people and wounded 80.Authorities have not ruled out arson at the upmarket No-Limit store in Panadura, 25 kilometres (16 miles) south of Colombo, police spokesman Ajith Rohana said.

"We are looking at the possibility of arson as well as an accidental fire," Rohana told AFP. "The fire started in the upper floor and we are still investigating."

The blaze came a day after Sri Lanka's Muslim minority shortened their Friday prayer services because of heightened religious tensions after clashes with hardline Buddhists earlier in the week in Kalutara district.

The district includes Panadura, and the popular and mainly Muslim coastal resorts of Alutgama and Beruwala, where religious riots earlier in the week killed four and wounded 80. Hundreds of homes and businesses were set on fire in the violence.

President Mahinda Rajapakse, who toured the riot-hit resort of Beruwala, said he was ordering a probe into "recent disturbances". "I will be appointing a high-level panel to inquire into recent disturbances," the President said on Twitter.

The president, who is a member of the Buddhist community, made no reference to the fire at No-Limit, but he had previously asked Buddhists and Muslims not to whip up extremism.

The Muslim Council of Sri Lanka said Islamic clerics instructed mosques to conduct shorter services and asked the faithful to disperse peacefully after lunchtime prayers on Friday.

Muslim-owned businesses shut down in Sri Lanka's capital Colombo on Thursday to protest against the riots by extremist Buddhists, defying Rajapakse's plea to stay open.

Police said workers had carried out some electrical repair work at the No-Limit store the day before the blaze. There were six people at the store, including two unarmed guards at the time of the pre-dawn fire, he said.

Witnesses said they heard several explosions as the fire completely gutted the two-storey building.

Authorities tightened security in the area following the blaze.

In March last year, two Muslim-owned clothing stores, including No-Limit, came under attack from Buddhist mobs.

Muslims account for about 10 percent of the 20 million population in the mainly-Buddhist country.

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The Sri Lanka Muslim Congress (SLMC) said it was also boycotting parliament Wednesday as a protest against Colombo's failure to rein in a hardline Buddhist group widely accused of sparking the clashes.

Justice Minister and SLMC leader Rauf Hakeem told reporters Rajapakse's administration was at fault for letting the bloodshed escalate.

"We are convinced that the government did not do anything to prevent the violence against the Muslims," said Hakeem, who is the most senior Muslim in Rajapakse's cabinet.

Rajapakse, who was visiting Bolivia when the violence broke out, travelled to the resort region of Beruwala shortly after his return to the island and met local community leaders from both sides.

Hundreds of troops were deployed to help police after the extremist Buddhist Force, or BBS, marched in neighbouring Alutgama on Sunday, with clashes breaking out as it claimed its procession was stoned by Muslims.

At least four people were killed and nearly 80 seriously wounded, while dozens of homes, businesses and vehicles were torched, with violence spreading to Beruwala on Monday.

"I will get the military to help you rebuild your homes and shops," Rajapakse said, adding that he will hold an impartial inquiry.

Residents had complained that the authorities did little to stop the violence.

The president made no reference to the SLMC demands to allow two UN experts -- the Special Rapporteur on freedom of religion or belief and the Special Rapporteur on minority issues -- to visit the island.

"The government has for some time denied them visas to enter the country. But there is an opportunity now for the government to demonstrate its bona fides and allow the two UN experts to come here and start an investigation," Hakeem said.

The minister spoke with reporters as police announced they had arrested 49 people -- both Buddhists and Muslims -- overnight.

- Islamic body urges action -

"We have already arrested 49 and remanded 25 of them and further arrests will take place today," police spokesman Ajith Rohana told AFP.

The 57-nation Organisation of the Islamic Cooperation urged authorities to investigate and take action against those responsible.

OIC secretary general Iyad Madani said he hoped "every possible effort would be exerted by the Sri Lankan authorities to prevent a further escalation of violence".

"While appealing for calm and peaceful relations between the communities, Mr Madani urged the authorities to enforce the rule of law, investigate the incidents and bring the perpetrators to justice," an OIC statement said.

The attacks are the latest in a series of religious clashes to hit Sri Lanka following unrest in January and last year, when Buddhist mobs attacked a mosque in the capital Colombo.

Muslims make up about 10 percent of the 20 million population, but are accused by nationalists of having undue influence in the Buddhist-majority country.

The United States has led international condemnation of the violence, while Western embassies in Colombo have advised nationals holidaying in the area to stay indoors.

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Alastair Cook's new-look side were denied victory in the first Test at Lord's on Monday after Sri Lanka No 11 Nuwan Pradeep got through the final five balls of the match from Stuart Broad to ensure a draw for the tourists, who were nine wickets down.

There were some encouraging signs for an England side minus Kevin Pietersen, their all-time leading run-scorer across all formats, who was ditched from the national set-up following a 5-0 Ashes thrashing in Australia.

Joe Root scored 200 not out in the first innings while Gary Ballance's maiden Test century in the second got England, without former number three Jonathan Trott as he continues his comeback from a "stress-related illness", out of trouble on the fourth day.

Both Yorkshire batsmen will be on their home ground on Friday.

England fielded three debutants at Lord's, with all-rounder Chris Jordan the most impressive.

Australia-born opener Sam Robson was twice out cheaply while Moeen Ali, brought in following the retirement of off-spinner Graeme Swann, didn't take a wicket at Lord's on Monday's final day at Lord's -- not that surprising given he is primarily a batsman.

England do have an experienced spinner to call upon in Monty Panesar but the left-armer's somewhat chaotic personal life appears to be counting against him.

"Monty is the most experienced Test match bowler but through other issues he has made it very difficult to look at him at the moment as an option," said England coach Peter Moores.

But Tests at Headingley, where the ball swings if conditions are overcast, are usually decided by the faster bowlers.

Only one of the last 14 Tests at Yorkshire's headquarters has ended in a draw and England now know that, if they can get past Sri Lanka batting greats Kumar Sangakkara and Mahela Jayawardene, they can spark a collapse.

- Poor Sri Lanka batting -

"I thought we batted poorly after tea (on Monday) especially," said Sri Lanka captain Angelo Mathews, who scored a first-innings hundred at Lord's.

"Their bowlers came in really hard, and asked questions of us, but we couldn't really handle it," the all-rounder added in a frank omission.

Someone who will hope to exploit that frailty at Headingley is England paceman Liam Plunkett, whose career has been rejuvenated since he moved to Yorkshire from Durham in 2012.

But Plunkett said it hadn't been so much the advice of White Rose coach Jason Gillespie, the former Australia seamer, that got him back into the England side at Lord's seven years after he played his last Test as a few well chosen words from forthright Yorkshire and England batting great Geoffrey Boycott.

"I met him when I first signed and he just said 'don't think, just bowl' and walked off," Plunkett said.

"That's all he said to me and I haven't spoken to him since, but it makes sense."

Meanwhile England will hope Cook and Ian Bell, in line to play his 100th Test, make big scores in Leeds.

Left-handed opener Cook has now gone 22 innings since compiling the last of his England record 25 hundreds -- 130 against New Zealand at Headingley in May last year.

"Leading from the front as a captain, you want to score runs - that's your job as a batter," Cook said.

England are set to field the same XI but Sri Lanka are o due to make at least one change, with Dinesh Chadimal poised replace wicketkeeper Prasanna Jayawardene, who suffered a broken finger at Lord's.

And with Suranga Lakmal still sidelined by a hamstring tear, experienced but not especially penetrative seamer Nuwan Kulasekara could be dropped in favour of the quicker Dhammika Prasad, who bowled well in the tour match against Northamptonshire.

A slow over-rate hurt England at Lord's and Moores said: "We have already started to address that...We don't want to lose overs at all, because it can be costly."

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Sri Lanka should continue investments, improve skills, rule of law: ADB chief June 18, 2014 (LBO) - Sri Lanka should look at private partnerships to expand infrastructure, reform state enterprises and strengthen the investment climate by improving rule of law and governance, Asian Development Bank chief Takehiko Nakao said.Sri Lanka's government is investing about 6 percent of gross domestic product in physical infrastructure which was higher than some countries in the region, and was also fast rebuilding war-torn areas, he said.

Sri Lanka should look at public private partnership to continue physical infrastructure investments, Nakao said.

Sri Lanka's growth was also averaging 7 percent and in areas where a war ended in 2009 it was about double that, which was remarkable, he said. The ADB was forecasting a growth of 7.5 percent for 2014 and 2015 for Sri Lanka.

ADB was also backing the government efforts to improve skills of the labour force and also use the country's geographical location to become a logistics hub, he said.

Sri Lanka had also stable macro economic conditions now with low inflation, and stable exchange rate, which should be maintained, Nakao said.

Sri Lanka's inflation rose and the currency plunged in 2012 after the government subsidized energy with bank loans ultimately accommodated by the central bank credit in 2011.

To sustain growth Sri Lanka should improve its investment climate and facilitate trade and further improve rule of law and governance.

"Governance and rule of law is the basis of the investment climate," Nakao said responding to reporter's questions.

In its absence efforts will be spent on rent seeking will take place, he said. Nakao said Sri Lanka was making "serious efforts" to progress and the ADB will continue to support such efforts.

ADB says will place greater emphasis on human resource development such as education and skills training, while maintaining focus on infrastructure and private sector development.

By end 2013, ADB had given Sri Lanka 6.17 billion dollars in loans and 358 million US dollars in grants.

It had financed a breakwater for Colombo Port allowing its expansion as well as expressways, power, water and education.

Nakao said Sri Lanka's geographical location made it ideally placed to connect South East Asia, South Asia, Africa and Europe.

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Sri Lanka shares close down 0.2-pct June 20, 2014 (LBO) - Sri Lanka's shares closed 0.17 percent lower for the third straight session amid strong foreign selling, brokers said.The Colombo benchmark All Share Price Index closed 10.75 points lower at 6,302.45, down 0.17 percent. The S&P SL20 closed 11.81 points lower at 3,478.86, down 0.34 percent.

Turnover was 1.21 billion rupees, up from 683.59 million rupees a day earlier with 93 stocks closed positive against 87 negative.

Amana Takaful closed flat at 1.80 rupees with two off-market transactions of 180.25 million rupees changing hands at 2.00 rupees per share contributing 15 percent of the turnover.

The aggregate value of all off-the-floor deals represented 47 percent of the daily turnover.

John Keells Holdings closed 1.40 rupees lower at 220.70 rupees with market transactions of 268.26 million rupees contributing 22 percent of the turnover.

JKH’s W0022 warrants closed 1.40 rupees higher at 60.50 rupees and its W0023 warrants closed 1.50 rupees higher at 70.60 rupees.

Ceylon Leather Products W0014 warrants closed 20 cents higher at 1.80 rupees, attracting most number of trades during the day.

Foreign investors bought 196.45 million rupees worth shares while selling 386.54 million rupees worth shares.

Sri Lanka Telecom closed 1.30 rupees lower at 46.60 rupees and Dialog Axiata closed flat at 10.40 rupees.

Asian Hotels and Properties closed 3.80 rupees lower at 67.20 rupees and Trans Asia Hotels closed 1.40 rupees lower at 96.50 rupees.

Commercial Bank closed 2.00 rupees lower at 133.00 rupees and Commercial Leasing and Finance closed 10 cents higher at 4.10 rupees.

Bukit Darah closed 12.00 rupees higher at 660.00 rupees and Indo-Malay closed 98.70 rupees higher at 1,800.00 rupees.

Ceylon Beverage Holdings closed 39.10 rupees higher at 548.10 rupees and Lion Brewery Ceylon closed 8.90 rupees higher at 443.90 rupees.

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Sri Lanka's Mattala airport speeds up refueling June 21, 2014 (LBO) - An aviation fuel hydrant and storage terminal at Sri Lanka's Mattala Rajapaksa International Airport, has allowed it to refuel the largest aircraft in the world quickly, the state petroleum utility said.Ceylon Petroleum Corporation which has a monopoly of fuel supply at Sri Lanka's two international airports said the airport originally designed by China Harbhour Engineering Corporation (CHEC) did not incorporate a hydrant system.

CPC had negotiated with CHEC to build the hydrant system for 7.17 million US dollars.

The fuel terminal and a 1.2 kilometres of pipelines had been built by Amana Pipeline Construction LLC of UAE for 31.2 million US dollars after a competitive bidding, the CPC said.

It was time consuming to refuel large aircraft with refueling tankers of 30,000 litres. The Airbus A380 had a capacity of 310,000 litres, Antonov 124 needed 348,000, a Boeing 747 needed 216,000 litres and an Airbus A340-600 had a capacity of 150,000 litres.

The terminal will have three storage tanks of one million litres each.

The hydrant system was faster and safer than using refueling tankers allowing for faster turnaround, CPC said.

The designs were verified and approved by Germanischer Lloyd Colombo (Pvt) Ltd, a third party inspector, the utility said.

The terminal will be supplied by 33,000 litre road tankers from the common user fuel terminal in Kolonnawa in Colombo, until a tank farm at Hambantota port is ready.

A corridor to build a 32 kilometre pipeline has also been earmarked from the port to Mattala. It will be built when air traffic picks up.

Sri Lanka's President Mahinda Rajapaksa is due to open the terminal on June 22.

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Sri Lanka stocks close down 0.1-pct June 19, 2014 (LBO) - Sri Lanka's stocks closed 0.07 percent lower with index heavy John Keells Holdings losing ground despite net foreign buying, brokers said.The Colombo benchmark All Share Price Index closed 4.41 points lower at 6,313.20, down 0.07 percent. The S&P SL20 closed 8.82 points lower at 3,490.67, down 0.25 percent.

Turnover was 683.59 million rupees, down from 713.88 million rupees a day earlier with 67 stocks closed positive against 106 negative.

Foreign investors bought 248.45 million rupees worth shares while selling 142.52 million rupees worth shares.

Index heavy John Keells Holdings closed 5.00 rupees lower at 222.10 rupees, contributing most to the index drop for the second consecutive day while attracting most number of trades during the day.

The diversified conglomerate also had three off-market transactions of 102.39 million rupees changing hands at 233.20 rupees per share contributing 15 percent of the daily turnover.

JKH’s W0022 warrants closed 90 cents lower at 59.10 rupees and its W0023 warrants closed 40 cents lower at 69.10 rupees.

Commercial Bank closed 30 cents higher at 135.00 rupees with market transactions of 103.58 million rupees changing hands at the same price per share contributing 15 percent of the turnover.

Ceylon Tobacco Company closed 5.00 rupees lower at 990.00 rupees and Nestle Lanka closed 52.00 rupees higher at 1,975.00 rupees.

Hayleys closed 6.80 rupees lower at 292.20 rupees and Dialog Axiata closed 20 cents higher at 10.40 rupees.

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Sri Lanka Muslims cut back Friday prayers after unrest COLOMBO, June 20, 2014 (AFP) - Sri Lanka's Muslim minority held shortened Friday prayer services as religious tensions gripped the island after clashes with hardline Buddhists killed four people, an official said.The Muslim Council of Sri Lanka (MCSL) said Islamic clerics instructed mosques to conduct shorter services and asked the faithful to disperse peacefully after lunchtime prayers.

"The Ulamas (scholars) asked mosques to ensure shorter sermons and in some places they started prayers earlier than on other Fridays," MCSL President N. M. Ameen told AFP.

He said there were no incidents reported although the police had anticipated trouble after Friday prayers and stepped up security in the capital and elsewhere.

Muslim-owned businesses shut down in Sri Lanka's capital on Thursday to protest against deadly riots by extremist Buddhists, defying President Mahinda Rajapakse's plea to stay open.

Shops and restaurants in central Colombo were shuttered following the riots in two mainly Muslim coastal resorts that killed four people and saw hundreds of homes and businesses set on fire.

The Muslims were protesting against the Buddhist Force, or BBS, and the police failure to protect their minority community which accounts for about 10 percent of the 20 million population.

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Sri Lanka parliament rejects UN war probe COLOMBO, June 18, 2014 (AFP) - Sri Lanka's parliament Wednesday rejected a UN-mandated investigation into alleged war crimes while crushing separatist Tamil rebels five years ago.Ruling party lawmakers voted overwhelmingly to resist a probe by the Office of the United Nations High Commissioner for Human Rights in line with a US-initiated censure move in March.

The parliament said "the probe should not be carried out on the ground that such a course of action is detrimental to the process of reconciliation and peace."

The government of President Mahinda Rajapakse, which enjoys a two-thirds majority in the 225-member assembly, said the UN probe also "erodes the sovereignty, dignity and stature of Sri Lanka."

President Rajapakse himself had earlier rejected the UN probe into charges that up to 40,000 ethnic Tamil civilians were killed by security forces while crushing Tamil separatists in May 2009.

Two opposition parties drawing their support from the majority Sinhalese community said they too would not support the UN inquiry, but insisted that Colombo set up a domestic process to probe the allegations.

The Sri Lankan parliament's rejection is not binding on the United Nations Human Rights Council. However the rejection is more a symbolic move that underscores Colombo's hardline attitude towards the UN rights body.

International rights groups say rights abuses continue in Sri Lanka even after the end of a decades-old separatist war that claimed at least 100,000 lives, according to UN estimates.

Colombo strongly denies that its troops killed any civilians, but instead says the defeated Tamil Tiger guerrillas used non-combatants as a human shield.

Rights groups have accused both sides of targeting civilians.

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"As far as we are concerned we recognize the right of the Vietnamese government to claim these islands," Communist Party chief Raja Collure told a meeting of the Sri Lanka Vietnam Friendship Association in Colombo.

"We cannot in the present circumstance partake in the dispute. The dispute has to be resolved through peaceful negotiations. And any action that impedes a peaceful solution cannot be condoned."

Collure said Communist Parties of both countries had friendly relations with his party.

China is claiming land around the Paracel Islands, in the South China Sea, or the East Sea as Vietnam calls it.

China sent an oil rig to the disputed waters and a fleet of ships to protect it last month. At least one unarmed Vietnamese fishing vessel has been rammed by a Chinese ship, the smaller country has said.

"China has once again endangered the security and stability in the East Sea region by the repetition of its military coercion and brinkmanship against Vietnam," Hanoi envoy to Colombo Ton Sinh Thanh said.

"To protect their illegal activities in the East Sea, China deploys a large number of vessels, including military ships and aircraft around the oil rig."

He said the rig was 120 miles off the coastline of Vietnam and was 80 miles inside Vietnam's exclusive economic zone.

Lawyers M A Rizwi and Premadara Dissanayake said under the United Nations Convention on the Law of Sea (UNCLOS) the islands were clearly within the economic zone of Vietnam.

Sri Lanka was currently facing situation where Tamil Nadu state in India, a much more powerful neighbor was making statements about the Kachchathivu islands, where the territory had already been resolved through a treaty.

"If the island is taken by force by India, if they send large ships, we will be in the same situation as Vietnam, Dissanayake said.

"If that happens we will have to resorting to International law is our only option. We will be helpless. So there has to be a voice against it."

Sri Lanka's government position is that the issue must be resolved bi-laterally.

China is also disputed claims with other nations around the South China Sea including Philippines, Japan and Malaysia involving other islands in the same sea, such as the Spratlys.

The Paracel Islands were uninhabited and China cannot claim exclusive economic zones out of the island's under accepted law, lawyers said.

China has claimed that they had been in some of the islands since 1950s.

In 1974, China had occupied the rest of the islands taking it from South Vietnam, when the Communist North was at war with the South, which was then backed by the United States.

But military occupation is longer a claim to territory, under international law.

On the other hand the disputed waters were clearly within 200 miles of the Ly Son island, which was inhabited and undisputedly Vietnamese territory. It was used as a radar station by the US during the Vietnam War.

Lawyer Rizwi said China was clearly violating international law and it could show evidence going back into the 19th century.

When Vietnam was under French rule in 1898, the then French Governor had started building a lighthouse on Paracel showing clearly that Vietnam had clear possession of the islands for centurie, Rizwi said.

"China has entered Vietnam's exclusive economic zone and is engaging activities," S Sudasinghe, Secretary General of Sri Lanka - Vietnam Friendship Association said.

"Both of these countries are friendly to our country. What we say is to act according to international law and to act without harming regional and world peace and solve the problem though peaceful means."

He said unless it was solved through negotiations the road was being made for the United States, the 'world policemen' to enter the dispute.

The US has already called on China to withdraw the oil rigs.

China is believed to be claiming the area due to the possibility of oil and also because it is an important shipping lane carrying oil and cargo to and from China and the rest of East Asia.

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Electronic part makers from Japan eye Sri Lanka June 19, 2014 (LBO) - A group of Japanese electronic component makers have visited Sri Lanka to look at the possibility of setting up factories in the island, the state investment promotion agency said.A delegation from Japan Electronics and Information Technology Industries Association (JEITA).

The companies were evaluating alternative manufacturing locations as part of a 'China +1' strategy of diversifying overseas production facilities, Sri Lanka's Board of Investment said.

The delegation was brought by Nihal Trading Company.

The BOI had presented them opportunities to set up plants in industrial zones in Suriyawewa and Mirijjawila in the Hambantota district.

Japanese component makers including FDK group are already in Sri Lanka.

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Sri Lanka IT industry to collaborate with universities online June 19, 2014 (LBO) - Sri Lanka's information technology sector is setting up an online portal to collaborate with universities, academics and students, an industry chamber said.Sri Lanka Association of Software and Service Companies (SLASSCOM), an industry body said its 'Campus Direct Link' will allow universities and industry to collaborate on projects and for industry practitioners to mentor students.

The portal was developed by IFS R &D International (Pvt) Ltd, a member firm of the chamber.

"The portal has been designed based on state-of-the-art social computing concepts to keep everyone connected together…" SLASSCOM said.

Companies, academics, undergraduate and post graduates students could be linked to the system.

Exports of IT and knowledge services had reached an estimated 720 million US dollars in 2013 and a billion dollars in revenue is expected by 2016.

SLASSCOM says the industry want to reach 5 billion US dollars in revenue and create 200,000 direct jobs and 1,000 start ups by 2022, for which active collaboration with the academia is needed.

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Liverpool striker Suarez grabbed the second of two opportunistic goals in the 85th minute of a tense Group D battle in Sao Paulo after Wayne Rooney had looked to have rescued a point for England with a 75th-minute equaliser.

The defeat leaves England, beaten 2-1 by Italy in their opening match, needing a miracle if they are to reach the second round of a World Cup, something they have not failed to do since 1958.

"We are more then disappointed, we're devastated," England manager Roy Hodgson said after the loss, describing his side's chances of remaining in the tournament as "unbelievably slim."

"To be sure of continuing we needed a result today, a draw or a victory, and we didn't get it," he added.

Suarez -- named English football's player of the year after a superb season for Liverpool -- had been a doubt for the World Cup after undergoing knee surgery in May.

However the 27-year-old returned to haunt an England side containing five of his Liverpool team-mates.

"Yes, I dreamed of this," Suarez said. "It was something I imagined many times, but I had to calm myself down."

With both teams knowing that a defeat would likely prove fatal to their chances of progressing to the last 16, the game started cautiously.

But England's inability to retain possession looked likely to gift Uruguay an opening, and so it proved.

Loose play from England captain Steven Gerrard saw Uruguay break swiftly, with Nicolas Lodeiro releasing Edinson Cavani down the left.

The Paris Saint-Germain striker delayed his cross to perfection, leaving Suarez, who had ghosted clear of Phil Jagielka, to head back past wrong-footed England goalkeeper Joe Hart.

With England struggling to break Uruguay down for much of the second half, Suarez's opener looked to be enough.

But 15 minutes from time Rooney tapped in his 40th international goal, and his first at a World Cup, after a low Glen Johnson cross to reignite their challenge.

England had looked the likelier to score thereafter, but five minutes from time the ball broke to Suarez off Gerrard and the striker raced clear.

The Liverpool man glanced up and then unleashed a ferocious shot into the roof of the net.

Uruguay's victory leaves England needing Italy to beat both Costa Rica on Friday and the Uruguayans next Tuesday.

England would then need to beat Costa Rica in their final game to have any chance of qualifying on goal difference.

- Colombia on course -

Earlier Thursday, Colombia maintained South America's strong start to the tournament with a 2-1 win over Ivory Coast, which saw them guaranteed a place in the last 16 from Group C.

A day after Chile eliminated defending champions Spain, Colombia produced another fine attacking display to down the powerful Ivorians in a free-flowing contest at Brasilia's National Stadium.

Second-half goals from Monaco starlet James Rodriguez and Juan Quintero fired Colombia into the lead before Roma striker Gervinho pulled one back for the Ivorians to set up a tense finish.

Colombia, making their first appearance at the World Cup since 1998, sealed their second round berth later Thursday after Japan and Greece played out a dour 0-0 draw in Natal.

The result means Japan and Greece must win their final matches against Colombia and Ivory Coast respectively to have any chance of going through.

Japan coach Alberto Zaccheroni was unhappy at his side's inability to make Greece pay following the dismissal of their captain Konstantinos Katsouranis on 38 minutes.

"We're not happy at this stage of the tournament. We pushed hard to win the game. We do have one match to play, but right now I'm not happy at all," Zaccheroni said.

"We had a lot of possession, had a lot of chances, and we didn't capitalise on them."

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June 18, 2014 (LBO) - Colombo Stock Exchange said Lucky Lanka Milk Processing Company Limited, a dairy firm has been given the nod to raise 300 million rupees from an initial public offer.
The firm plans to offer for subscription 38 million voting shares at 6.00 rupees per share and 24 million non-voting shares at 3.00 rupees per share.

The subscription list will open on July 07, 2014. Merchant Bank of Sri Lanka Plc will manage the sale.

June 19, 2014 (LBO) - Dunamis Capital Plc said property valued at over 500 million rupees in a popular hill resort is to be taken over by the state.
The firm said in a stock exchange filing that the property in Upper Lake Road is 76 percent owned by the company and had a carrying value of 536 million rupees. Another 120 million rupees in interest had also been spent.

It had received an acquisition order dated June 10.
Two listed firms have been expropriated by the state in its entirety in the recent past and no compensation has yet been paid even to minority shareholders.

June 19, 2014 (LBO) - A group of Japanese electronic component makers have visited Sri Lanka to look at the possibility of setting up factories in the island, the state investment promotion agency said.
A delegation from Japan Electronics and Information Technology Industries Association (JEITA).

The companies were evaluating alternative manufacturing locations as part of a 'China +1' strategy of diversifying overseas production facilities, Sri Lanka's Board of Investment said.

The delegation was brought by Nihal Trading Company.

The BOI had presented them opportunities to set up plants in industrial zones in Suriyawewa and Mirijjawila in the Hambantota district.

Japanese component makers including FDK group are already in Sri Lanka.

June 19, 2014 (LBO) - Sri Lanka's information technology sector is setting up an online portal to collaborate with universities, academics and students, an industry chamber said.
Sri Lanka Association of Software and Service Companies (SLASSCOM), an industry body said its 'Campus Direct Link' will allow universities and industry to collaborate on projects and for industry practitioners to mentor students.

The portal was developed by IFS R &D International (Pvt) Ltd, a member firm of the chamber.

"The portal has been designed based on state-of-the-art social computing concepts to keep everyone connected together…" SLASSCOM said.

Companies, academics, undergraduate and post graduates students could be linked to the system.

Exports of IT and knowledge services had reached an estimated 720 million US dollars in 2013 and a billion dollars in revenue is expected by 2016.

SLASSCOM says the industry want to reach 5 billion US dollars in revenue and create 200,000 direct jobs and 1,000 start ups by 2022, for which active collaboration with the academia is needed.

June 20, 2014 (LBO) - Sri Lanka's exports grew 9.4 percent to 762.2 million US dollars, while imports fell 5.3 percent in April from a year earlier, amid weak domestic credit, allowing foreign reserves to grow, official data showed.
Apparel exports grew 22.5 percent in April to 336.8 million dollars from a year earlier with strong demand from the US and EU, the Central Bank said. Small markets like Russia and also seen a strong growth.

Agricultural products grew 13.7 percent to 199.7 million dollars. Tea grew 9.8 percent to 116.8 million US dollars with both price and volume gains helping.

Rubber product exports fell 0.6 percent to 57.9 million US dollars.

Imports fell 5.3 percent to 1,444.5 million US dollars with consumer goods down 3.2 percent to 263.9 million US dollars. Food and beverages fell 14.2 percent to 108.8 million US dollars.

Intermediate goods grew 0.2 percent to 889.3 million US dollars with textile related imports up 16.6 percent to 179.8 million US dollars, amid strong apparel exports.

Fuel was down 8.8 percent to 316 million US dollars.

Investment goods were down 20.4 percent to 289.2 million US dollars. Machinery was down 17.7 percent to 153.5 million US dollars and transport equipment was down 42.1 percent to 34.9 million US dollars.

Building material imports were down 13.6 percent to 100.5 million US dollars.

The trade gap in April fell 17.7 percent to 682.2 million US dollars.

In the five months to April, exports rose 16.9 percent to 3,571.1 million US dollars, and imports rose only 2.6 percent to 6,192.4 million US dollars, The trade gap declined 12.1 percent to 2,621 million US dollars.

The trade gap is caused when inflows to the financial accounts such as government foreign borrowings (exports of debt) and remittances (exports of labour) are spent by their recipients.

However Sri Lanka's credit growth has been weak or negative in the past few months.

When domestic credit is weak, all inflows are not quickly spent and resulting in liquidity build ups in the domestic banking system and an increase in foreign reserves at the Central Bank.

Foreign reserves rose to 8.9 billion US dollar by end April partly helped by a 500 million US sovereign dollar bond sale.