Sri Lanka Stocks Hit New High. Up 1.44-pct

22nd December 2009, www.lankabusinessonline.com

Sri Lankan shares closed up Tuesday as investors continued buying into the market to cash in on an anticipated market re-rating following presidential elections next month, brokers said.

The benchmark Colombo All Share Price Index (ASPI) closed up 1.44 percent (46.54 points) to end at 3,280.82 while the Milanka index of liquid stocks gained 1.84 percent (67.74 points) to close at 3,757.02, according to provisional stock exchange data.

Turnover was 1.44 billion rupees.

"Market sentiments are at an all time high with the investors grabbing blue chips despite the festive season," Nikita Tissera, research manager at stock brokering firm SC Securities said.

"We are also of the view that investors are grabbing shares before the presidential election.

"I'm expecting the market to rerate itself upwards in the short to medium term after the presidential elections," Tissera said.

Conglomerate John Keells Holdings closed at 167.00 rupees, up 4.75, and Distilleries Company of Sri Lanka closed at 106.50 rupees, up 1.25.

Commercial Bank of Ceylon closed at 190.00 rupees, up 1.75, Hatton National Bank closed at 170.75 rupees, up 1.50, Sampath Bank closed flat at 202.00 rupees and Seylan Bank closed at 37.00 rupees, up 75 cents.

National Development Bank closed at 205.00 rupees, down 1.00 and DFCC Bank closed at 164.50 rupees, up 1.50.

Sri Lanka Telecom closed at 44.75 rupees, up 75 cents and Dialog Telekom, a unit of Telekom Malaysia closed flat at 7.00 rupees.

Retailer favorites, Touchwood Investment 86.75 rupees, up 1.50 and Lanka Cement closed at 24.50 rupees, up 75 cents.

Malaysia Eyeing SL’s First Satellite with Surrey Satellite Technology Ltd (SSTL)

23rd December 2009, www.thebottomline.lk, By Santhush Fernando

The nation’s Telecommunication industry watchdog- Telecommunications Regulatory Commission of Sri Lanka (TRCSL), is considering ‘Expression of Interest’ by two Malaysian companies to partner Sri Lanka’s space communication programme.

Speaking to The Bottom Line, a high ranking TRCSL official said that Dialog Telekom’s parent company- Malaysia-based Axiata Group, along with Maxis Group, which bought a stake in Sri Lanka Telecom have expressed their intention in investing in the Rs 17 billion communication satellite project.

Completing the only necessity lacking to fulfil a superior technology system, Sri Lanka is now ready to step into the world of satellite communications, with TRCSL planning to establish the Sri Lanka Space Agency (SLASA) as a basic step towards acquiring satellite capability, upon becoming part of the Acquisition of National Satellite Capability. Through the SLASA, the satellite capability will be acquired from the Surrey satellite based in the University of Surrey, UK. SLASA plans to collaborate with ISRO of India, NASA of USA, JAXA of Japan and other space agencies throughout the world.

According to TRCSL Director General Priyantha Kariyapperuma, already, Asian countries such as South Korea and Malaysia, and even countries such as Nigeria have launched their own satellites.

British satellite specialist firm- Surrey Satellite Technology Ltd. (SSTL) is to advise the Sri Lankan government on the establishment of its national space programme, implemented under the SLASA.

SSTL has been contracted by TRCSL to develop its own space capability and its first communications satellite, SSTL announced on November 17. SSTL is a spin-off company of the University of Surrey, now fully owned by EADS Astrium that builds and operates small satellites. Its satellites began as amateur radio satellites- UoSAT (University of Surrey Satellite) and OSCAR (Orbital Satellite Carrying Amateur Radio) designation. SSTL cooperates with the University’s Surrey Space Centre, which does research into satellite and space topics.

Professor Sir Martin Sweeting of the University of Surrey and Executive Chairman of SSTL, have signed a landmark agreement. The economic benefits resulting from space based communications include Television, broadband services and earth observation applications are substantial and will positively contribute to the country’s development as a “high-tech” trading nation.

Under the Memorandum of Understanding (MOU), SSTL will provide an Earth observation capability and start work on a geostationary communications satellite. By partnering with SSTL for Earth observation, Sri Lanka will become an important member of the Disaster Monitoring Constellation (DMC), with the ability to participate in international disaster relief support activities coordinated by the United Nations, through the International Charter.

Maxis Group’s satellite division- MEASAT, launched the MEASAT-1 and MEASAT-2 communications satellites from Europe’s Spaceport in Kourou, French Guiana in 1996. The launch of MEASAT-1 and MEASAT-2 led to a rapid increase in Malaysian infrastructure development, both in telecommunication and broadcasting industries, including the launch of the first world’s digital Direct-To-Home (DTH) Multi-Channel TV Service, Astro. MEASAT became independent in 1998 and undertaking a reverse takeover of Malaysian Tobacco Company (MTC) in 2001, renaming the holding company MEASAT Global Berhad, and the operating Company MEASAT Satellite Systems Sdn Bhd, the company came of age.

Sri Lankan Hydro Power Producer Rated 'BBB+' by Agency RAM Ratings Lanka

22nd December 2009, www.lankabusinessonline.com

Private power producer Vidullanka PLC has been given a short term financial rating of P2 and a long term rating of BBB+, by agency RAM Ratings Lanka. The long term rating has a stable outlook.

The rating is supported by the company's sound project economics and financial strategy, the rating agency said.

It was also helped by the improving credit profile of the company over the past three years due to a strategy of retiring debts through internally generated funds.

As a result of this, gearing levels have been eased to 25 percent of company capital as at end September 2009. Debt service coverage ratio stands at 7.09 times.

"Going forward, the management intends to broaden its revenue base within the renewable-energy sector via joint-venture investments," RAM Ratings said.

"While these are positives over the longer term, Vidullanka’s credit metrics are expected to moderate in the interim, until these new ventures come on-stream."

Vidullanka is an independent power producer, listed on the Colombo Stock Exchange. It is in renewable energy generation, while its subsidiary Vidul Construction specialises in building mini-hydro power projects.

Vidullanka owns two power plants of 2 and 3.2 MegaWatts, supplying power to state-run Ceylon Electricity Board grid under 15-year power purchase agreements.

The company is a working partner in another power plant and manages two other projects. A new power plant is to be commissioned in March 2010.
Dec 22, 2009 (LBO) – Private power producer Vidullanka PLC has been given a short term financial rating of P2 and a long term rating of BBB+, by agency RAM Ratings Lanka.

The long term rating has a stable outlook.

The rating is supported by the company's sound project economics and financial strategy, the rating agency said.

It was also helped by the improving credit profile of the company over the past three years due to a strategy of retiring debts through internally generated funds.

As a result of this, gearing levels have been eased to 25 percent of company capital as at end September 2009. Debt service coverage ratio stands at 7.09 times.

"Going forward, the management intends to broaden its revenue base within the renewable-energy sector via joint-venture investments," RAM Ratings said.

"While these are positives over the longer term, Vidullanka’s credit metrics are expected to moderate in the interim, until these new ventures come on-stream."

Vidullanka is an independent power producer, listed on the Colombo Stock Exchange. It is in renewable energy generation, while its subsidiary Vidul Construction specialises in building mini-hydro power projects.

Vidullanka owns two power plants of 2 and 3.2 MegaWatts, supplying power to state-run Ceylon Electricity Board grid under 15-year power purchase agreements.

The company is a working partner in another power plant and manages two other projects. A new power plant is to be commissioned in March 2010.

Sri Lanka Stocks Hit New High. Banks Gain

21st December 2009, www.lankabusinessonline.com

Sri Lanka stocks closed at a new high Monday, up 1.43 percent, with banks drawing interest as retail investors re-entered the market, gaining confidence from last few week's foreign trading, brokers said.

The benchmark Colombo All Share Price Index (ASPI) closed up 1.43 percent (45.46 points) to end at 3,234, while the Milanka index of liquid stocks gained 1.62 percent (58.80 points) to close at 3,689.28, according to provisional stock exchange data.

Turnover was 1.0 billion rupees.

Investors are looking for bargains ahead of the presidential election, brokers said.

Hatton National Bank closed at 169.25 rupees, down 50 cents with almost 2.0 million shares changing hands today. Commercial Bank closed at 188.25 rupees, up 3.50 and Sampath Bank closed at 202.00 rupees, up 3.50.

National Development Bank closed at 206.00 rupees, up 1.00, and DFCC Bank closed at 163.00 rupees, up 3.00.

Conglomerate John Keells Holdings closed at 162.25 rupees, up 1.75, and alcohol manufacturer Distilleries Company of Sri Lanka, a unit of unlisted Stassens controlled by business tycoon Harry Jayawardena closed at 105.25 rupees, up 3.25.

Sri Lanka's largest celco Dialog Telekom, a unit of Telekom Malaysia closed flat at 7.00 rupees, and fixed line operator Sri Lankan Telecom closed flat at 44.00 rupees.

Sri Lanka Ranked Second in Stock Market Performances. Russia Topped the List

19th December 2009, www.dailynews.lk

Sri Lanka has been ranked second in stock market performances this year, South Korea based Samsung Securities said yesterday.

Russia topped the list as its benchmark index jumped 121 percent this year, a sharp turnaround from a 72.4 percent drop in 2008. Sri Lanka came in second with a 114.6 percent growth, followed by Argentina at 105.1 percent and Brazil at 84.6 percent, China at 79.8 percent and India at 79.1 percent.

In general, emerging markets have outperformed developed ones as increasingly risk-averse global investors put more money into shares and other assets in developing countries on the back of the easing of the international financial debacle.

They borrowed money from the US and other crisis-hit advanced countries with low interest rates to buy stocks in emerging markets for larger returns, the South Korean media reported.

The US and other advanced countries posted a relatively sluggish upturn this year, weighed down by high unemployment and other continued unfavourable economic conditions.

The Morgan Stanley Capital International (MSCI) index for 22 developing economies increased 56.4 percent in 2009, but the index for 23 advanced countries rose at a slower rate of 20.9 percent.

A Samsung Securities analyst said despite a substantial rebound from their lows in late 2008, emerging markets have yet to reach their highest level, which was set in 2007, adding that advanced markets are still 25 percent lower, compared to their 2007 highs.

Meanwhile data compiled by Reuters also put Sri Lanka among the top 10 performing stock markets in 2009. In the Reuters data, Russia was the best performing stock market in the world in the last 10 years, surging 890 percent in dollar value, though 1999-2009 returns from government debt generally outstripped those generated by equities.

New Korean-Built 4255 TEU Container Vessel Named 'Zim Colombo'

21st December 2009, www.dailymirror.lk

ZIM Integrated Shipping Services (ZISS) has christened its new Korean-built 4255 TEU Container Vessel Zim Colombo and has deployed it into their East Mediterranean Express (EMX) Service, which touches Colombo on its west-bound and east-bound voyages.

ZISS offers 60 services to ports of call throughout Europe, the United States and Canada, Central and South America, Africa and Asia and it has established a particularly strong presence on routes between the Far East and the Caribbean, Mediterranean and China.

In addition, to meet the changing needs of a dynamic market, ZISS continuously expands and diversifies their geographic coverage and is currently strengthening their presence in developing regions, with a focus on the Far East, Former Soviet Union regions, South America and Africa.

According to their plans, two major ZISS services - ZIM Container Service (ZCS) and EMX - have already embarked on Super-Slow Steaming, a measure that would enable substantial fuel savings and significantly reduced CO2 and NOx emissions.

In pursuance of this endeavour, ZISS added a 4255 TEU vessel to each service, thus maintaining similar levels of service in terms of frequency and with only minor changes in transit times. Accordingly, ZCS deploys 16 vessels while EMX deploys 11 vessels in their operations.

Slow steaming is in line with ZISS's streamlining and savings efforts. ZISS is one of the first shipping companies whose owned fleet confirms to Environmental Management (ISO 14001) standards. The Super-Slow Steaming will reduce the CO2 and NOx emission drastically in these two lines and will support ZISS's persistent commitment to sustainability and environmental awareness.

A ceremony was held on board the vessel MV Zim Colombo, in celebration of her maiden voyage at the JCT of Sri Lanka Ports Authority (SLPA), on her inaugural west-bound voyage on 17 December 2009.

To mark the significance of this move to the SLPA, plaques were exchanged between the Managing Director of SLPA Capt. Nihal Keppetipola and the Master of the Vessel Capt. Sergej Decenkov and the officials of Star Lanka Shipping, the local shipping agents.

Commenting on this new addition, SLPA Managing Director Capt. Nihal Keppetipola said: "We have attracted several new lines and services in recent months and this trend is a clear approbation by the liner community of the current customer-friendly marketing orientation and pragmatic policies of SLPA. This apart, our country has come to the threshold of an economic renaissance with peace dividend being invested on huge maritime-related infrastructure development projects."

"The christening of ZISS's new vessel as Zim Colombo is of great significance to Sri Lanka which fills us with pride, especially at a time when the green shoots of recovery from the global economic meltdown are appearing. This would make the Port of Colombo echo throughout the world, which is now well accepted as the regional hub port. I take this opportunity to wish ZISS and their local agent Star Lanka Shipping every success," he further said.

Image : Plaques are exchanged between the Managing Director of SLPA Capt. Nihal Keppetipola (third from right) and the Master of the Vessel Capt. Sergej Decenkov (fourth from right) while N. Ranchigoda - Director Star Lanka Shipping (fourth from left), Dillan Lawrence - Manager Star Lanka (first from right), Chief Operations Manager of SLPA G.A.Thalagala (second from right), Harbour Master of SLPA Capt. Ravi Jayawickrama (second from left), Dy. Chief Operations Manager of SLPA Jayantha Perera (third from left) and Dy. Chief Manager (Marketing and BD) of SLPA Upul Jayathissa (first from left) look on

Kalpitiya - Focus of A Mega Development Project

21st December 2009, www.island.lk, By Mario Andree

The islands near Kalpitiya are the focus of a mega development project. This will help Sri Lanka achieve the targeted 2.5 million tourist arrivals by 2016, say officials.

According to the Sri Lanka Tourist Development Authority (SLTDA), 14 islands with a total land area of 1,672.67 hectares are being targeted for investment projects.

Nine of those islands are state lands and the other five are held by both private and state owners. The total state-owned land area amounts to 268.94 hectares, according to officials.

The potential of generating tourist revenues is very high in these areas, says the Industrial Services bureau (ISB).

Key points of interest for development are: Dutch Bay and Portugal Bay; bar reef marine sanctuary with around 307 sq km of sea area having most valuable rich bio-diversity value; sea turtles, fisheries, ornamental fish collection, lobster capturing, sea cucumber collection, dolphins, whales, mangroves, flora and fauna, historic monuments, birds and butterflies; natural botanical gardens, beaches, natural forest, estuaries and lagoons, sea grass beds.

According to SLTDA, proposed projects for the development would focus on fishing tourism, deep sea, diving, nature-based tourism, beach tourism, sport and adventure tourism, agro-tourism, culture tourism, village tourism and events tourism.

The islands and the proposed resort area would need state-of-the-art infrastructure facilities, say officials.

Special development projects in the zone include the following: domestic airport – Uchchamunai; under-water amusement park – Kandakkuliya; golf course - Dutch Bay; race course – Kalpitiya and cricket playground – Kalpitiya.

ISB director Neelakanth Wanninayaka said 17 new hotels and guest houses with 5.000 rooms would be built in the zone. These projects would create 15,000 direct and 22,500 indirect jobs, reducing the unemployment rate of the North Western Province which is currently at 7.8 percent.

The North Western province currently contributes 9.6 percent to the national GDP with a per capita income of Rs150,551.

The province has a high potential for investments and tourism attractions and it should maximize its contribution to national economic growth, Wanninayaka said.

The ISB of the North Western Province will assist all potential investors to launch development projects, he added.

Tourism is likely to bring higher revenues to post-war Sri Lanka and a study by the Asia Foundation has highlighted a tremendous potential for investment projects within the zone. In addition to new projects, existing facilities are to be upgraded to realize their full potential.

According to the Asia Foundation study, potential investment areas for the North Western Province include leisure tourism and water sports at Bathalegoda Lake, a 100-room star class hotel at Kurunegala lake round, reconstruction of Rajapihilla Rest House, adventure tourism at Ibbagala Circuit Bungalow for local tourists at Lake round, Ayurvedic village and circuit bungalow at Dolukanda cable car project connecting Ethagala and Kurunegala, said North Western Province Chief Minister Athula Wijesinghe.

Map of Kalpitiya

Kalpitiya Projects