Sri Lanka's NDB, DFCC hire Boston Consulting to advice on merger June 17, 2014 (LBO) - Sri Lanka's National Development Bank and DFCC Bank has engaged Boston Consulting Group (India) Pvt Ltd, to advice on a planned merger.The two banks are merging under a regulatory move to create a bigger entity. The banks said in a joint stock exchange filing that no final decision has been made on the merger.
298 on board crashed Malaysian flight, 154 Dutch: airline KUALA LUMPUR, July 18, 2014 (AFP) - There were 298 people, including 154 Dutch nationals, on board the Malaysia Airlines flight that crashed in strife-torn eastern Ukraine, the carrier said on Friday.The flight "was carrying a total number of 298 people -- comprising 283 passengers including three infants of various nationalities and 15 crew of Malaysian nationality," the airline said in an emailed statement.
There also were 43 Malaysians, including the crew and two infants, and 27 Australians, it said, updating earlier figures as the airline worked to verify passenger nationalities.
Twelve were Indonesians including an infant, nine were British, four were German, three were from the Philippines and one was Canadian.
The airline said four were Belgian but the Belgian foreign minister said five Belgians were on board.
Malaysia Airlines said the nationalities of 41 passengers remained unconfirmed.
Air traffic control lost contact with the Boeing 777-200 around 14:15 (12:15 GMT) near the Russian-Ukrainian border, Malaysia Airlines has said.
The flight took off from Schiphol airport in Amsterdam shortly after noon Thursday and was supposed to land in Kuala Lumpur at around 6:10 am Friday local time.
Malaysia Airlines will send a team to Ukraine on Friday to help with the investigation.
Another plane will also be made available to grieving relatives wanting to visit the crash site, an official said.The crash is the Netherlands' second-largest air disaster to date.
The country's largest happened in March 1977 when 238 Dutch citizens died at Tenerife in the Canary Islands when two Boeing 747s crashed with the loss of 582 lives.
The crash is a fresh blow to the flag carrier which, along with the Malaysian government, is still struggling to provide answers on the disappearance of flight MH370 on March 8 with 239 people aboard.
Benefits to Sri Lanka banks from pawning guarantee temporary: S&P July 17, 2014 (LBO) - Benefits from a state guarantee for gold-backed loans (pawning) will be temporary, a report by Standard & Poor's, a rating agency said."The credit guarantee for pawning loans will provide only brief respite to Sri Lanka's banking industry, which is still struggling to overcome the effects of declining gold prices," said Standard & Poor's credit analyst Deepali Seth-Chhabria said in a statement.
"The banking industry will remain vulnerable to the volatility in gold prices, given that pawning loans form a significant part of banks' loan books, unless essential structural and regulatory changes are implemented."
The guarantee encourages banks to lend up to 85 percent of the value of gold instead of around 60 percent.
Banks that loaned money when gold prices were around 1,700 US dollars an ounce, were hit by defaults when prices fell to 1200 to 1,300 dollars an ounce.
Banks then cut back on total pawning loans in 2013 and so far in the first quarter of 2014.
Standard & Poor's expects the overall volume of pawning loans to increase with new loans.
But a cap on interest rates could lower margins along with a premium that has to be paid to the Central Bank.The full statement is reproduced below:-
Sri Lanka's Loan Guarantee Will Benefit Its Banks, But Only For A While
SINGAPORE (Standard & Poor's) July 15, 2014--Sri Lanka's decision to guarantee pawning (gold-backed) loans could be a blessing for the country's troubled banks. But the reprieve is unlikely to last too long. That's according to a report titled "Sri Lanka's Pawning Loan Guarantee Could Temporarily Cushion Banks' Flagging Performance," that Standard & Poor's Ratings Services published today.
"The credit guarantee for pawning loans will provide only brief respite to Sri Lanka's banking industry, which is still struggling to overcome the effects of declining gold prices," said Standard & Poor's credit analyst Deepali Seth-Chhabria. "The banking industry will remain vulnerable to the volatility in gold prices, given that pawning loans form a significant part of banks' loan books, unless essential structural and regulatory changes are implemented."
The Sri Lankan central bank's credit guarantee scheme for pawning loans aims to increase funding to sectors that are important for economic development. Growth in funds to such sectors slowed last year as banks cut back on pawning loans following an increase in nonperforming loans (NPLs) in the pawning segment as gold prices declined. The scheme encourages banks to once again divert funds toward pawning--a segment that is already vulnerable to gold price volatility--and that too at higher loan-to-value ratios. Banks scaled back in both these areas last year as gold prices fell and NPLs rose.
"Banks may put off tightening their risk management systems to ensure limited losses in the pawning segment because the guarantee would provide a cushion against the losses," said Ms. Seth-Chhabria. "We believe that while relatively relaxed underwriting standards and regulations in the pawning segment resulted in strong loan growth in 2009-2012, they also contributed to the higher defaults thereafter."
Standard & Poor's expects the overall volume of pawning loans to increase as banks offer incremental credit under this scheme and the ones that had curbed lending in 2013 begin issuing new pawning loans. Nevertheless, the scheme could lower banks' margins on pawning loans because of a cap on the interest rate on loans offered under the scheme. In addition, operating costs for the pawning segment will likely increase because banks will have to pay the central bank a premium under the guarantee. But the reduction in credit costs should offset this increase.
Sri Lanka jails killers of British tourist COLOMBO, July 18, 2014 (AFP) - A Sri Lankan ruling party politician and three accomplices were Friday sentenced to 20 years in jai for murdering a British holidaymaker on Christmas Eve and raping his Russian partner.The Colombo High Court said town council chief Sampath Vidanapathirana was guilty of killing 32-year-old Khuram Shaikh, an International Red Cross aid worker, who had tried to stop a brawl at a southern beach resort on December 24, 2011.
After 33 days of hearing evidence, judge Rohini Walgama told a packed court house that Vidanapathirana, a member of President Mahinda Rajapakse's Freedom Alliance, and three others were guilty of all the charges. Two others were discharged.
All six of them were indicted in December after repeated allegations that there was an unnecessary delay in bringing the case to court, leading to suspicions they were being shielded by their political connections.
Britain's Prime Minister David Cameron had cited the murder of Shaikh, who was beaten then shot in the head, as an example of Colombo's failure to deliver justice.
Shaikh was holidaying in Sri Lanka during a break from his job in the Palestinian territory of Gaza where he was fitting prosthetic limbs.
Hotel manager Tharanga Peiris told the court earlier this year that she tried to stop him going to the aid of another hotel guest who was being beaten by the politician and his gang.
Peiris, manager of the Nature Resort in southern Sri Lanka, said she had a clear view of Vidanapathirana and his men during the attack.
Another hotel guest said that the attackers had "behaved like animals" and went on a rampage smashing plates, glasses, car windows and toppling a three-wheel taxi parked outside.
Shaikh's girlfriend, who was knocked unconscious after a brutal assault, returned to Sri Lanka this year to give evidence and identified one of her attackers in court.
She was not seen on Friday, but Shaikh's brother Nasir listened to the judgement being delivered in a packed courtroom.
The case was initially heard in the southern town of Tangalle, the hometown of the main accused, but shifted to the capital Colombo last year following allegations that the suspects were intimidating witnesses."There was a lot of media attention on this case," judge Walgama said while sentencing the four men. "This is an important case in our legal history and I was able to conclude the trial in just over three months of hearings."
It was not immediately clear if the men would appeal the verdict and the 20-year jail sentences. Two more accused in the case were discharged.
Sri Lanka shares close down 0.3-pct July 17, 2014 (LBO) - Sri Lanka's shares closed 0.31 percent lower on Thursday despite net foreign buying, brokers said.
The Colombo benchmark All Share Price Index closed 20.69 points lower at 6,721.87, down 0.31 percent. The S&P SL20 closed 13.58 points lower at 3,747.47, down 0.36 percent.
Turnover was 926.45 million rupees, down from 1.21 billion rupees a day earlier with 75 stocks closed positive against 124 negative.
John Keells Holdings closed 10 cents higher at 245.00 rupees with market transactions of 279.10 million rupees contributing 30 percent of the turnover.
JKH’s W0022 warrants closed 1.20 rupees higher at 65.90 rupees and its W0023 warrants closed 40 cents lower at 73.70 rupees.
HNB closed 1.30 rupees lower at 169.10 rupees with an off-market transaction of 21.93 million rupees changing hands at 173.00 rupees per share contributing 2 percent of the turnover.
E-Channelling closed 1.10 rupees higher at 16.80 rupees, attracting most number of trades during the day.Foreign investors bought 189.13 million rupees worth shares while selling 26.49 million rupees worth shares.
Sri Lanka Telecom closed 1.20 rupees lower at 55.00 rupees, contributing most to the index drop.
Lion Brewery Ceylon closed 13.90 rupees lower at 659.90 rupees and Distilleries closed 1.10 rupees higher at 204.90 rupees.
Ceylon Tobacco Company closed 2.50 rupees higher at 1,102.50 rupees and Hemas Holdings closed 70 cents higher at 48.90 rupees and.
BBC News to cut 400 jobs in austerity drive LONDON, July 17, 2014 (AFP) - The BBC said on Thursday it will cut 415 jobs from its news department in the latest cost-cutting measures by the world's largest public broadcaster.Director of News James Harding said the cuts over the next two years were part of savings needed as a result of a freeze in the licence fee, which all British households with a television must pay.
"It will be a testing time of uncertainty and change," the British Broadcasting Corporation quoted Harding as telling staff in a briefing at its headquarters in London.
But he said the BBC would create 195 new posts in the news division as part of a restructuring plan, meaning a net reduction of 220 full-time jobs overall.
BBC workers are set to go on strike on July 23 during the opening of the Commonwealth Games in Glasgow, Scotland over the layoffs.British Prime Minister David Cameron's coalition government froze the licence fee for six years in 2010 as part of sweeping austerity measures to cut a record deficit.
The BBC also announced 2,000 job cuts in November 2011.
BBC News currently employs around 8,400 people, including around 5,000 journalists, the corporation said.
China picks site for BRICS bank: reports SHANGHAI, July 17, 2014 (AFP) - China has already chosen a site for the future Shanghai headquarters of the BRICS development bank, state media said Thursday just two days after its creation.At a summit in Brazil, the BRICS group of emerging economic powers -- which also includes Russia, India, China and South Africa -- on Tuesday created the New Development Bank to finance infrastructure projects.
After drawn-out negotiations over the bank's location, BRICS leaders agreed to put its headquarters in China's commercial hub of Shanghai, which is seeking to become an international financial centre.
Shanghai will place the headquarters in the former site of the 2010 World Expo in the city's premier Pudong development zone, in the section where the old China Pavilion -- now an art museum -- was located, along with those of several Asian and Middle Eastern countries, local television reported.
The city cleared a five-square-kilometre (two-square-mile) site for the six-month expo and large plots are now unused, though some of the area has been redeveloped.
Chinese state media said the BRICS bank aims to reduce Western dominance of the global financial system, while criticising multi-lateral agencies like the World Bank and the International Monetary Fund.
"The old pattern in which the World Bank and the International Monetary Fund dominated the field will face competition from now on," the Global Times newspaper said in an editorial on Thursday.
"The launch of the BRICS bank with Shanghai as its headquarters is a testament to China's national strength, diplomatic capabilities and strategic position," said the newspaper, known for its nationalistic editorial stance.The Chinese government took a less strident tone. China's finance ministry said the bank would help the global recovery and drive long-term economic growth, according to a report by the official Xinhua news agency.
The BRICS grouping will base an Africa Regional Centre in South Africa, after Johannesburg lost out to host the headquarters
Cricket: Sri Lanka contain Proteas after de Kock's 50 GALLE, July 17, 2014 (AFP) - Rookie batsman Quinton de Kock hit a maiden half-century as South Africa moved to 331-7 at lunch on the second day of the first Test against Sri Lanka on Thursday.De Kock, playing his second Test after making his debut in February, hit six fours in his promising 90-ball innings after South Africa resumed at their overnight score of 268-5.
Left-hander Jean-Paul Duminy was batting on 22 with Vernon Philander on three at the break.
It turned out to be a mixed session for the visitors who added 63 runs off 30 overs while losing two wickets in hot and humid conditions at the Galle International Stadium.
Sri Lanka did well to contain the Proteas, especially since they were one bowler short with a split webbing almost ruling out pace spearhead Shaminda Eranga from the rest of the game.
Eranga had bowled just nine overs when he hurt his bowling hand while fielding on day one. The injury required eight stitches, according to the Sri Lankan media officials.
South Africa lost an early wicket when nightwatchman Dale Steyn (three) was foxed by a straighter one from paceman Suranga Lakmal (3-50) that crashed onto his stumps. De Kock, who scored a match-winning 128 in the recent third and final one-dayer against Sri Lanka in Hambantota, carried his form into the match, negotiating both the fast bowlers and spinners with ease.
A smashing cover-drive off slow bowler Dilruwan Perera (3-128) and another through point that raced to the boundary were the highlights of his innings.
But Perera earned his revenge when he sent back De Kock with a sharp turning delivery that the batsman edged in the slips to give Mahela Jayawardene his 198th catch.
Philander took 25 deliveries to get off the mark while Duminy also looked tentative at best during his 81-minute stay at the wicket.Hello Kitty designer defends cute character as cat turns 40 HONG KONG, July 17, 2014 (AFP) - The flamboyant designer of Japanese cartoon and global mega-brand Hello Kitty defended the cute cat against new rivals Thursday as the character prepares to celebrate her 40th birthday.Speaking on the sidelines of the Hong Kong Book Fair, Yuko Yamaguchi took the concept of life imitating art to another level, wearing a Kitty-style strawberry dress with dyed auburn hair piled into two buns topped with a red ribbon -- the cat's signature accessory.
As Kitty enters her next decade, she faces increasing competition from more cutting-edge cartoons like Brown and Cony, the bear and rabbit mascots of Tokyo-based messaging app LINE, which has taken Asia by storm in recent months.
But Yamaguchi insisted Kitty would cope with growing older in a digital age.
"There are new cartoon characters that are coming out daily... (but) I think Hello Kitty is the only one that can adapt to the changes in the world," Yamaguchi said.
The moon-faced mouthless white cat first appeared in 1974 on a coin purse in Japan and has since built up a worldwide fanbase, appearing on everything from handbags to sex toys.
Her image is licensed by Japanese company Sanrio, which says on its website that it makes more than US$5 billion dollars in retail sales each year. Hello Kitty is its flagship brand.
Yamaguchi, at the Hong Kong fair to tie in with its new Japan Pavilion, has been the lead designer of Hello Kitty since 1980 and promotes herself as the character's best friend.
"She is very motivated and open and wants to face the future," she says of the character.
There are plenty of detractors of Hello Kitty's sweetness -- entire blogs are dedicated to tearing down the cute icon, with online spoofs depicting her like a horror movie character.But Yamaguchi insists her appeal can endure.
"There are already three generations of fans that like Hello Kitty, so I hope that there will be more fans like that in the future, like people in a family loving Hello Kitty together," she said.
The main Hello Kitty 40th birthday celebrations will take place later this year, including the first ever fan convention, hosted in Los Angeles at the end of October.
The Codex Alimentarius Commission, the top global decision-making body for food standards, issued the decision at its ongoing annual meeting in Geneva.
"Arsenic is an environmental contaminant. It occurs naturally and is taken up by plants from the water and soil when they're growing, in particular rice," said World Health Organization food safety coordinator Angelika Tritscher.
The commission set a maximum of 0.02 milligrammes of arsenic per kilo of polished race -- the product that is traded and consumed.
"The main driver for Codex standards is trade. But when we talk about safety standards, the main purpose is clearly to protect the health of consumers," said Tritscher.
Arsenic occurs in the Earth's crust. Some of the heaviest concentrations are in Asia, where rice is a mainstay.
A key problem is paddy fields irrigated with water pumped from shallow wells containing arsenic-rich sediments.
Heavy rice consumption has been found to compound the impact of arsenic in drinking water.
"Since rice is a very important stable food for many countries and many regions of the world, a significant part of the global population is affected," Tritscher said.
Bangladesh has been a top concern, with tens of millions of rural dwellers exposed via wells drilled in the 1970s in "access-to-water" programmes.
Parts of Cambodia, China, India and Vietnam have also been affected.
Long-term exposure can cause cancer and skin lesions, Tritscher said. It is also linked to heart disease, diabetes and damage to the nervous system and brain.
Arsenic rarely grabs headlines in the same way as other food crises.
"It's not like you have an immediate, acute effect like you have with a salmonella outbreak," said Tritscher.
- No safe exposure level -
The 186-nation Codex commission is run by the WHO and fellow UN agency the Food and Agriculture Organization (FAO).
Its standards must be set down into national laws to take effect.
"We all expect our food to be safe and of good quality. We don't expect to get sick from our food," said senior FAO food standards officer Tom Heilandt.The rice decision followed years of research which fed into a policy-making process helmed by China and Japan.
"One of the core principles of Codex standards is that they are science-based," Tritscher said.
"The outcome of the assessments was that you cannot define a safe exposure level. The consequence is that you have to try to reduce exposure as much as possible," she added.
"We operate on the 'alara' principle -- as low as reasonably achievable -- which balances how low you can go without having to discard the majority of the food supply."
The commission also set out ways to reduce arsenic levels.
They include growing crops in raised beds instead of flooded fields, drying out paddies before harvest, and regular checks on water supplies.
Sri Lanka's Commercial Bank to buy Indra Finance July 17, 2014 (LBO) - Sri Lanka's Commercial Bank of Ceylon said it will acquire Indra Finance, a finance company linked to a top vehicle retailer for 870 million rupees.Indra Finance had 507 million rupees in equity 73 million rupees in profits and 2.0 billion rupees in assets according to the last balance sheet date.
Commercial Bank group had 587 billion rupees in assets.
Indra Finance does not have public deposits and is linked to Indra Traders, a top distributor of unregistered used vehicles imported mainly from Japan.Analysts say with lower cost funds from a bank, Commercial Bank could potentially gain a bigger share in around the 2,000 vehicles sold each year by Indra with leases averaging three million rupees.
The acquisition is part of a bank and finance company consolidation process mandated by the Central Bank to reduce the amount of finance and banking companies in the country, which is expected to make the sector stronger and easier to regulate.
Sri Lanka's Piramal Glass sees slight demand pick up July 16, 2014 (LBO) - Piramal Glass Ceylon Plc said domestic demand rose 8 percent in the June 2014 quarter from a year earlier and recurring profits were up with interest costs coming down.Recurring profit after tax rose to 86 million rupees in the June 2014 quarter from 61 million rupees a year earlier, helped by a 41 percent reduction in interest costs to 32 million rupees, the firm said.
The firm reported earnings of 9 cents per share for the quarter. Amid a rise in costs the gross profit margin declined marginally to 21 percent from 22 percent a year earlier.
Last year June quarter profits rose to 358 million rupees helped by a 296 million rupees capital gain from a land sale.
The firm said it had also repaid most of its long term loans.
Sri Lanka is recovering from a balance of payments crisis triggered by a credit bubble worsened by bank loan funded energy subsidies by the state, where an interest rate rise was resisted by the Central Bank through sterilized forex sales.
The subsequent adjustments which also involved currency depreciation and a rate hike, hit domestic demand and credit, slowing activity.
Revenues rose to 1.244 million rupees from 1223 million rupees despite a fall in export sales by 19 percent to 251 million rupees.
The firm said exports to India had been hurt for several quarters due to currency depreciation in that country but were now recovering.
Domestic demand had also begun to pick, Piramal Glass said rising 8 percent to 994 million rupees.
Sri Lanka trade deficit down amid weak credit in May July 14, 2014 (LBO) - Sri Lanka's exports rose 11.1 percent to 882.1 million US dollars in May 2014 from a year earlier led by apparel exports that rose 14.5 percent to 365.1 million US dollars, official data showed.Agriculture exports rose 21.1 percent to 239.9 million US dollars with tea up 9.7 percent to 140.6 million US dollars.
Imports fell 17.6 percent to 1,275.5 million US dollars with investment goods down 25.2 percent to 279.9 million US dollars and fuel imports down 35.4 percent to 208.4 million US dollars.
Rising exports would usually trigger more imports, but Sri Lanka is currently experiencing weak credit growth resulting savings of some market participants not being spent through the banking system.
In the five months to May exports rose 15.7 percent to 4.4 billion US dollars and imports fell 1.5 percent to 7,467.9 million US dollars.
The trade deficit was down 19.3 percent to 3,014.7 million US dollars.Sri Lanka has a trade deficit because domestic agents spend dollars flowing from outside the merchandise trade account especially such as from remittances (exports of labour) and borrowings (exports of debt).
The central bank said worker remittances rose 10.5 percent to 2.7 billion US dollars and tourism earnings were up 35.1 percent to 901 million US dollars. Gross inflows to government were up 33.3 percent to 3,201 million US dollars.
China's growth accelerates to 7.5-pct in second quarter: govt BEIJING, July 16, 2014 (AFP) - China's economic growth hit 7.5 percent year-on-year in April-June, official data showed Wednesday, ahead of expectations as the world's second-largest economy was boosted by government stimulus.The second-quarter figure announced by the National Bureau of Statistics compared with growth of 7.4 percent in the previous three months and exceeded the median forecast of 7.4 percent in a survey of 17 economists by AFP.
"Generally speaking, China's economy showed good momentum of stable and moderate growth in the first half-year," the NBS said in a statement.
"However we should keep in mind that the domestic and international economic environment is still complicated and the national economy still faces many challenges."The NBS also said China's economy expanded 7.4 percent in the first half of the year.
The results came after Beijing introduced a series of policies in April in response to concerns over slowing growth, including tax breaks for small enterprises, targeted infrastructure spending and the encouragement of lending in rural areas and to small companies.
Separately, the NBS said China's industrial production, which measures output at factories, workshops and mines, rose 9.2 percent year-on-year in June.
Retail sales, a key indicator of consumer spending, increased 12.4 percent in the same month, while fixed asset investment, a measure of government spending on infrastructure, rose 17.3 percent on-year in the first six months.
Cricket: Sri Lanka plan memorable farewell for Jayawardene GALLE, July 15, 2014 (AFP) - Sri Lanka are planning to give star batsman Mahela Jayawardene a fitting farewell by winning his remaining matches, captain Angelo Mathews said ahead of the first Test against South Africa starting Wednesday.On Monday, Jayawardene announced he will retire from the longest format of the game in August, after the two-Test rubber against South Africa followed by two matches against Pakistan (Aug 6-18).
The 37-year-old right hander will only be available for one-day internationals, having also retired from Twenty20 cricket in April this year.
"We need a player like him in the team, but he (Jayawardene) has decided to say goodbye," Mathews said at a pre-match press conference in Galle on Tuesday.
"If we can send him off by winning all four Tests it will be great."
Jayawardene has been the batting mainstay for Sri Lanka since his debut against India in 1997 and has amassed 11,493 Test runs over a career spanning 145 Tests.
With 33 hundreds and 48 fifties in his kitty, he is the joint sixth-highest run-getter in Test cricket along with teammate Kumar Sangakkara (11,493).
Mathews conceded it would be tough for his team to fill the shoes of Jayawardene.
"He's been tremendous for us in the past 15 years or so, scoring so many runs. His contribution to the team has been unbelievable. So it's difficult to replace him.
"But that is the challenge we face in the future... new players should accept this challenge and play well," the all-rounder said.
The immediate task at hand for the home team is to get the better of South Africa who won the recent one-day series 2-1 with an emphatic 82-run win in the decider last Saturday at Hambantota.
It was the first one-day series victory for South Africa on the island.
The visitors have a new skipper in Hashim Amla, who is set to become South Africa's first non-white player to lead the side permanently as it goes through a rebuilding phase after the retirements of Test greats Graeme Smith and Jacques Kallis.
Mathews said South Africa had the players who could make the absence of stalwarts count for little.
"They've still got these very good players in the team and they are a very strong team to beat whether you play them at home or away as they showed us in the one-day series," he said."They are a very balanced team and we have to be at our best to beat them, it's a huge challenge," said Mathews who has been in top form since being named the captain last February.
The second and final Test will be played in Colombo from July 24-28.
Sri Lanka stocks close up 0.6-pct July 14, 2014 (LBO) - Sri Lanka's stocks closed 0.56 percent higher on Monday extending the gains of food, beverages and tobacco sector amid low foreign participation, brokers said.
The Colombo benchmark All Share Price Index closed 37.63 points higher at 6,699.03, up 0.56 percent. The S&P SL20 closed 13.07 points higher at 3,721.23, up 0.35 percent.
Turnover was 597.19 million rupees, down from 1.67 billion rupees last Friday with 114 stocks closed positive against 68 negative.
DIMO closed 29.90 rupees higher at 564.10 rupees with an off-market transaction of 50.05 million rupees changing hands at 550.00 rupees per share contributing 8 percent of the turnover.
Sierra Cables closed 10 cents lower at 2.10 rupees and FLC Hydro Power closed flat at 6.30 rupees, attracting most number of trades during the day.
Foreign investors bought 84.99 million rupees worth shares while selling 56.65 million rupees worth shares.
Lion Brewery Ceylon closed 89.10 rupees higher at 684.20 rupees, contributing most to the index gain.
Dialog Axiata closed 30 cents higher at 11.20 rupees and Sri Lanka Telecom closed 10 cents higher at 56.10 rupees.
Ceylon Tobacco Company closed 5.60 rupees higher at 1,107.30 rupees and Ceylon Tea Services closed 17.50 rupees lower at 700.50 rupees.Aitken Spence closed 1.10 rupees lower at 107.00 rupees and John Keells Holdings closed 30 cents higher at 240.30 rupees.
JKH’s W0022 warrants closed 20 cents lower at 63.90 rupees and its W0023 warrants closed 40 cents lower at 73.90 rupees.
Netherlands sees expanding trade and investments with Sri Lanka Aug 15, 2014 (LBO) - Netherlands is seeking more trade and investment links with Sri Lanka in agriculture, water and health seen as growth areas, with funding also available, officials said."We are actively looking for new trading partners around the world," visiting Dutch Vice-Minister for Foreign Trade Simon Mits, who led a trade mission to Colombo told reporters.
"We are of the firm belief that trade is a two way street that it is definitely a win-win. We want to explore new opportunities."
Netherlands had an ageing population where it developed expertise in diagnostics and non-communicable diseases which was a challenge also faced by Sri Lanka.
Netherlands also had expertise in water, dealing with floods and seawater and Sri Lanka was also seeking to improve drinking water and sanitation islandwide.
Mits said bi-lateral trade with Sri Lanka was 200 million US dollars a year and was growing at 10 percent year.
Several companies in the Dutch trade delegation already had relationships with Sri Lanka.
Van De Knaap group of companies had factories in Sri Lanka producing and exporting cocopeat employing around 500 people, director Gerard van Dieen said.
Enraf-Nonius was which was in healthcare was providing turnkey solutions to two hospitals in Hambantota and Nuwara Eliya in Sri Lanka, Chief Executive Ken de Jong said.
In 2005 the Netherlands had decided to end foreign aid to following decision to focus on the poorest countries of the world with Sri Lanka no longer considered among them.
"That does not mean we don't have other funds available. We have substantial funds available where Sri Lanka can have profit," Mits said."The potential of Sri Lanka we think can be best be unlocked by trade relations, by investment exchange, by knowledge. And this is why we are shifting from aid to trade."
Netherlands had just opened a new fund, the Dutch Good Growth Fund (DGGF), which is expected to disburse about 700 million Euros over the three to four years.
"This fund supports Dutch entrepreneurs and SMEs in emerging markets and and developing countries by offering a source of finance," Mits said.
"It can also be used by entrepreneurs in Sri Lanka to set up a joint venture."
It can also provide export credit and insurance to reduce counterparty risks of trade deals.
Hans Bartelds from Netherlands based Rabobank group which had a focus on agriculture and co-operatives said he already working on a transaction using the new fund with Sri Lanka.
Rabobank was financing the import of heifers from Australia to Sri Lanka. It had also structured a 100 million US dollar deal to finance 463 rural bridges.
Other companies in the delegation included Vitens Evides International which had expertise in urban water Eijkelkamp Earth Sampling group which specialized in environmental soil and ground water research and monitoring and consultancy.
Sri Lanka shares close up 0.2-pct July 16, 2014 (LBO) - Sri Lanka's shares closed 0.22 percent higher on Wednesday with continued foreign inflows extending gains further, brokers said.
The Colombo benchmark All Share Price Index closed 14.77 points higher at 6,742.56, up 0.22 percent. The S&P SL20 closed 10.79 points higher at 3,761.05, up 0.29 percent.
Turnover was 1.21 billion rupees, down from 2.19 billion rupees a day earlier with 105 stocks closed positive against 98 negative.
Distilleries closed 1.20 rupees lower at 203.80 rupees with an off-market transaction of 81.60 million rupees changing hands at 204.00 rupees per share contributing 7 percent of the turnover.
John Keells Holdings closed 2.50 rupees higher at 244.90 rupees with market transactions of 374.35 million rupees contributing 31 percent of the turnover.
JKH’s W0022 warrants closed 50 cents higher at 64.70 rupees and its W0023 warrants closed 60 cents lower at 74.10 rupees.
The aggregate value of all off-the-floor deals represented 14 percent of the turnover.
PC Pharma closed 10 cents higher at 3.20 rupees and E-Channelling closed 2.10 rupees higher at 15.70 rupees, attracting most number of trades during the day.
Foreign investors bought 452.04 million rupees worth shares while selling 125.62 million rupees worth shares.Bukit Darah closed 25.30 rupees higher at 700.00 rupees, contributing most to the index gain.
Carson Cumberbatch closed 10.20 rupees higher at 460.20 rupees and Lion Brewery Ceylon closed 21.70 rupees higher at 673.80 rupees.
Sri Lanka shares close up 0.4-pct July 15, 2014 (LBO) - Sri Lanka's stocks closed 0.43 percent higher with diversified stocks gaining despite strong foreign buying and selling, brokers said.
The Colombo benchmark All Share Price Index closed 28.76 points higher at 6,727.79, up 0.43 percent. The S&P SL20 closed 29.03 points higher at 3,750.26, up 0.78 percent.
Turnover was 2.19 billion rupees, up from 597.19 million rupees a day earlier with 107 stocks closed positive against 87 negative.
Distilleries closed 80 cents higher at 205.00 rupees with two off-market transactions of 816.00 million rupees changing hands at 204.00 rupees per share contributing 37 percent of the turnover.
The aggregate value of all off-the-floor deals represented 56 percent of the turnover.
PC Pharma closed 30 cents higher at 3.10 rupees and PCH Holdings closed 20 cents higher at 3.80 rupees, attracting most number of trades during the day.
Foreign investors bought 1.00 billion rupees worth shares while selling 952.31 million rupees worth shares.
Carson Cumberbatch closed 30.00 rupees higher at 450.00 rupees and Bukit Darah closed 29.70 rupees higher at 674.70 rupees, contributing most to the index gain.
Nestle Lanka closed 18.60 rupees higher at 2,090.00 rupees and John Keells Holdings closed 2.10 rupees higher at 242.40 rupees.JKH’s W0022 warrants closed 30 cents higher at 64.20 rupees and its W0023 warrants closed 80 cents higher at 74.70 rupees.
Lion Brewery Ceylon closed 32.10 rupees lower at 652.10 rupees and Ceylon Tobacco Company closed 5.00 rupees lower at 1,102.30 rupees.
Jegatheesan Durairatnam has been appointed as the new managing director and chief executive officer of the Commercial Bank, the company said in a stock exchange filing.
Commercial Bank appoints S Renganathan as Chief Operating Officer July 16, 2014 (LBO) - Sri Lanka's Commercial Bank of Ceylon said Sivakrishnarajah Renganathan, the Bank’s Deputy General Manager – Personal Banking has been appointed Chief Operating Officer and Executive Director.The appointment takes effect on July 17.
He has been with Commercial Bank for 34 years.
In July 2003, he was appointed country manager Bangladesh, after de led the acquisition of a Credit Agricole Indosuez unit there.
Renganathan is a Fellow of the Chartered Institute of Management Accountants, UK (FCMA), Fellow of the IFS School of Finance, UK (Fifs) and a Fellow of the Institute of Bankers Sri Lanka (FIB).
He is also an associate member of Financial Services Institute of Australasia.
He has been a Member of the General Council of the Institute of Bankers of Bangladesh and founder President of the Sri Lanka Bangladesh Chamber of Commerce and Industry.