NTPC of India to Pursue Coal Power Project in Sri Lanka

28th March 2013, www.business-standard.com, By Sanjay Jog

Undeterred by current political developments in Sri Lanka and Bangladesh, NTPC is quite firm to pursue development of imported coal-based power projects in these countries.

The company has rubbished reports appearing in a section of press relating to losing the projects to China.

NTPC and Sri Lankan team held talks in New Delhi to discuss changes to the power purchase agreement (PPA) and the implementation agreement for the 2x250 MW imported coal-based power project at Sampur in Trincomalee district, Sri Lanka.

These negotiations took place close on the heels of India's decision to vote in favour of a US-sponsored resolution censuring Sri Lanka on its human rights record and the subsequent postures from political parties in both the countries.

Similarly, NTPC is also not perturbed over the present situation due to the faceoff between the ruling and opposition parties in Bangladesh. The company is going ahead with the development of 2x660 MW imported coal based project at Khulna division of Bangladesh.

A NTPC spokesperson told Business Standard, “In Sri Lanka, NTPC is going ahead with the proposed 2x250 MW coal based JV Project in Trincomalee, Sri Lanka. A JV Company (Trincomalee Power Company Limited) between NTPC and Ceylon Electricity Board (CEB) has already been incorporated and the project agreements including Power Purchase Agreement are expected to be signed soon.”

NTPC and CEB had signed an agreement in 2011 to set up a coal fuel-based 500 MW plant at a cost of over Rs 4,000 crore at Sampur.

NTPC’s team led by chairman and managing director Arup Roy Choudhury was in Sri Lanka in February and held talks with the authorities there with regard to project at Sampur. Sri Lanka’s Treasury Secretary PB Jayasundera had already dismissed news reports that NTPC was pulling out of the project.

As far as project in Bangladesh is concerned, the NTPC spokesperson said, “NTPC is going ahead to develop a 2x660 MW imported coal-based project at Khulna division of Bangladesh in joint venture with Bangladesh Power Development Board (BPDP). NTPC and BPDP have already signed a JV Agreement in January 2012. Feasibility report for the project has been finalised. The project agreements like PPA are expected to be signed soon.”

It must be mentioned here that NTPC, with total installed capacity of 40,674 MW (including JVs), has set a target to have an installed power generating capacity of 1,28,000 MW by the year 2032.

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Vizag Steel of India Seeks a Sri Lanka Partner for Manufaturing Tie-Up

28th March 2013, www.thehindu.com

 Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Vizag Steel, is looking for a Sri Lankan company to enter into a tie-up for manufacturing steel products there, a senior official of the state-owned steel maker has said.

RINL Director (Commercial) T.K. Chand said the company has already called for expression of interest from Sri Lankan steel rod and bar manufacturers for the tie-up and the process of selection of the partner may come to a final stage by May.

“We have already floated EOI (Expression of Interest) in this regard and received offers from companies who have manufacturing facility in that country. By May, we expect that the process may reach final stages,” Mr. Chand said.

According to him, the steel maker, on its part, will supply billets for conversion into CTD/TMT rebars and structurals on wet-leasing basis in Sri Lanka.

“We will not make any investments into the plant. We are looking for a party with minimum three years experience in conversion of billets into CTD/TMT rebars and structurals and having valid licence for production. The entire capacity of SPU/RM shall be dedicated to RINL,” Mr. Chand added.

Another senior official said the RINL is looking at a plant with 1.5 lakh tonne per annum capacity plant in the south Asian country.

The official said they would look at a new manufacturing either in Hambantota or Trincomalee areas of the island nation so that they can use the harbour network for export purpose to countries which include the Maldives and the Myanmar.

“A study revealed that there is good potential for RINL products in Sri Lanka. And also export of billets is easier to Sri Lanka from Chennai port,” the official said when asked why the company is zeroed in on Sri Lanka.

Mr. Chand said the Navratna Company is also planning to open a regional office at the World Trade Centre in Sri Lanka.

Replying to query, he said currently RINL exports around 3 per cent of its production and has plans to increase it by 10 per cent in the coming two to three years.

The steel maker currently exports finished products to countries such as the US, UAE, Thailand, Bangladesh and Sri Lanka.

RINL is currently working on expansion, after which the steel making capacity will increase to 6.3 million tonnes per annum (MTPA), from the existing 3 MTPA.

India Relaxes Quota on Apparel and Meat Exports from Sri Lanka. Exports Reached USD 720.89 Mn in 2011-2012

27th March 2013, www.lankabusinessonline.com

India has raised a quota of Sri Lanka-made apparel and the validity of a sanitary permit for meat had been doubled giving more freedom for Indian nationals to buy goods from the island.
Free Trade Agreements were then used to progressively give freedom to the poorer people to trade.

Quotas and rules of origins were used as a compromise to give more time for powerful production lobbies to continue to make excessive some profits at the expense of the domestic consumer, allowing authorities to give some liberty to domestic consumers.

Cheaper imports leave more money in the hands of consumers, raising their living standards by expanding the ability to buy other goods and especially services, which can boost domestic output and employment.

The Indian High Commission said the apparel quota relaxation came following request made to visiting Indian commerce and industry minister in August 2012.

In January, at the 8th India-Sri Lanka joint commission meeting it was agreed to double bi-lateral trade to 10 billion US dollars in the next three years.

India said Sri Lankan exports had reached 720.89 million US dollars in 2011-2012 and from April 2012 to December 2012 Sri Lankan exports to India was 528.76 million US dollars.

Sri Lanka last year raised taxes particularly on smaller vehicles, which are bought by less-affluent consumers, which come primarily from India.

The Indian High Commission (embassy) in Colombo said, there would be no sourcing requirement for fabric for up to eight million pieces of fabric exported from Sri Lanka each year from the current five under the Indo Lanka Free Trade Agreement.

The validity of a sanitary import permit (SIP) for processed livestock products had been extended to one year from the current six months.

The high commission said on September 06, 2012, export tax for Sri Lankan made fabric was cut to 5.0 percent from 11.0 percent under the South Asia Free Trade Arrangement.

Citizens of India and Sri Lanka traded freely in ancient times and Sri Lanka was part of a 'Silk Route of the Sea' that was at time controlled by India based empires and later by European powers.

After independence from British rule and the rise of economic nationalism rulers of both countries raised trade barriers and reduced the ability of their citizens to trade freely and the entire South Asian region lagged behind the rest of the world except Africa.

Related Info :

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Ferry Service between Tuticorin & Colombo to Resume by End March. Twice a Week Service Started in June 2011 Stopped in November 2011 due to Technical & Operational Reasons

17th March 2012, www.sundaytimes.lk

The ferry service between Tuticorin and Colombo is expected to resume either by March end or in the first week of April, A. Subbiah, Chairman V. O. Chidambaranar Port Trust was quoted by the Hindu.

Efforts are being made by the port agency, vessel operators and other stakeholders to resume the ferry operations between the two countries.

Most probably, it would resume before April 14, Mr. Subbiah expressed hope.

The international ferry service between India and Sri Lanka  after Union Minister of Shipping, G.K. Vasan, flagged off the service at the VOC Port. A nine-deck ‘Scotia Prince,’ the passenger vessel chartered by Flemingo Liners twice a week between Tuticorin and Colombo and vice-versa, stopped its voyage abruptly during November, 2011 for some technical and operational reasons.

The problems encountered by the operators had been addressed and they had also submitted a commitment letter to the port authorities, which indicates the early resumption of the ferry service.

As many as 12, 240 passengers boarded the vessel on journey until its  last voyage on November 18, 2011, Mr. Subbiah said.

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Sri Lanka's SLINTEC Signs $01bn Nano Technology Pact to Develop Next Geeneration Plant Nutrition Solutions for India's Nagarjuna Group

16th March 2012, www.ft.lk, By Ramani Kangaraarachchi

The Institute of Nanotechnology in Sri Lanka (SLINTEC) and the Nagarjuna Fertilizers and Chemicals Limited of Nagarjuna Group India entered into a strategic collaboration of US $ one billion to develop the next generation of nanotechnology based plant nutrition solutions. The signing of agreement held at Cinanmon Grand Hotel, Colombo yesterday.

India's High Commissioner Ashok K Kantha said this initiative taken by the leading manufacturer and supplier of plant nutrients in India and the leading technology institute in Sri Lanka in the key area of agriculture will further strengthen the economic engagement between the two countries.

SLINTEC Chairman Mahesh Amalean said these are next generation green products aimed at increasing productivity and income for farmers and creating a sustainable business for all the stakeholders engaged in agri-business.

He said the vision of the government is to make Sri Lanka a destination for nanotechnology research and development and this strategic partnership with Nagarjuna Group India is the first step towards achieving this vision. The government has contributed Rs 850million for this project.

This is an opportunity for SLINTEC to work with a global partner to take the product development journey from lab to land.

As Nagarjuna Group has an extensive manufacturing and marketing network in Asia ,Africa and South America and is deeply engaged in emerging technology development as a growth engine for the business.

This partnership is an association targeted to take technological and market leadership in the niche nano plant nutrition product space which will be a win win situation for both parties, Nagarjuna Group CEO R.S Nanda said.


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Japan Ups Sri Lanka Auto Market Share with Hybrids. India's Share Down to 45pct. China Third with 5pct

01st March 2012, www.lankabusinessonline.com

Japan has increased its share in Sri Lanka's auto market to 36 percent from 33 percent in value with a surge in hybrid vehicles, amid a boom coming after a cut in taxes, Sri Lanka's main business chamber said.

The Ceylon Chamber of Commerce said in an analysis of the auto market that market leader India's share has in terms of value had fallen to 45 percent to 51 percent. China was third with 5.0 percent.

The value of imports had increased to 219 billion rupees from 117 billion rupees.

The CCC said 57,886 cars and were registered in 2011 up 11 percent while 525,421 vehicles of all types were registered in 2011, up 32 percent from a year earlier including over 250,000 motor cycles.

In 2011, 5,927 hybrid vehicles were imported up from 438. "This growth momentum is likely to continue with the increase in fuel prices," the Ceylon Chamber of Commerce said.

"Japan is the leading supplier of hybrid vehicles into Sri Lanka in almost all categories of vehicles except for cars of cylinder capacity exceeding 2000 cc (cubic centimeters), where Germany is the main supplier."

Transport between 5 to 20 tonnes have risen over 10 fold to 48,384 to 4,359. India supplied 91 percent of the total followed by Japan at 15 percent.

The Chamber said motor cars of less than 1,000 cc engine capacity had grown 222 percent partly helped by Tata Nano cars.

More than 100,000 petrol driven three wheelers have been imported in 2011. Diesel three wheeler lagged are there are only 20,000 in the country. The chamber said 99 percent came from India.

Abdul Kalam Suggests Taking Turns in Fishing to Resolve Palk Bay Issues. Deep Sea Fishing Proposed as a Way to Prosperity for both India and Sri Lanka

24th January 2012, www.adaderana.lk

Former President of India, A.P.J.Abdul Kalam suggested that deep sea fishing, and fishing in turns in the Palk Bay, as possible solutions to resolve the contentious fisheries issue that India and Sri Lanka have been grappling with for the past few years.

He suggested that of the seven days of the week, Indian and Sri Lankan fishermen should fish in turns for three days each, leaving one day for resting. During this time, both fishermen could cross each others boundaries. “Wherever there is fish they cross borders. Nobody can stop them… Of course, both governments will have to bless,” he said.

Mr.Kalam, who hails from the fishing hamlet of Rameswaram in Tamil Nadu, pointed out that “a very small country in Europe” had a per capita income of US $ 40,000 because its fishermen had resorted to deep sea fishing in a major way, while Sri Lanka had a per capita income of about $ 3000 and India, about $ 2000. He suggested that if Indian and Sri Lankan fishermen took to deep sea fishing, they would earn more and contribute better to the economies of their countries.

Mr.Kalam, who is on a four-day visit to Sri Lanka, had discussed this and many other issues with Sri Lankan President Mahinda Rajapaksa. Mr.Kalam had come here to take part in the launch of the tri-lingual initiative, aimed at making the next generation Sri Lankans fluent in Sinhala, Tamil and English. Mr.Kalam said that he had discussed the fishermen problem with the President. “I come from the fishermen area in Rameswaram. So, I know their problems,” he said

Mr.Kalam, the most prominent Tamil to visit Sri Lanka since the visit of Carnatic vocalist T.M.Krishna, said that he had also discussed empowering the various provinces with Sri Lankan President Mahinda Rajapaksa based on the 13 Amendment to the Sri Lankan Constitution. “How the empowerment can take place constitutionally…We had a discussion on this,” he said.

Asked for his impressions from the visit, he said that he could see that there was progress in development works. “The beginning has been made with the Trilingual mission. So many reforms, empowerment to the various provinces particularly North and the East, I hope will take place, with both governments working together. They are thick friends, I suppose,” he was quoted as saying by The Hindu.

Mr.Kalam said that the reaction to his suggestion that the concept of PURA (Provision for Urban Amenities in Rural Areas) was good. Many Ministers and others felt that this could be carried out in the 40,000 Sri Lankan villages. “I personally believe that… the Sarvodaya movement here, and the PURA can be integrated and work together to build the 40,000 villages,” he said.

Vandana Luthra, Founder of VLCC to Visit Sri Lanka. Largest Health and Wellness Brand Built on Complete transformation in Slimming & Beauty

24th January 2012, www.dailynews.lk, By Sanjeevi Jayasuriya

Vandana Luthra, Founder and Mentor of VLCC, largest health and wellness brand is set to arrive in Sri Lanka next week to visit the VLCC centres at Wijerama Mawatha, Colombo 07 and Nugegoda.

Ms. Vandana Luthra, a pioneer in the wellness domain, opened India's first Transformation Centre in New Delhi in 1989. Since then, the network has spread all across South Asia and the Middle East and has been in operation in Sri Lanka since January 2011, initiating the concept of complete transformation, with slimming and beauty as two sides of the same coin.

Having redefined the wellness industry, VLCC boasts an impressive network spread across 260 locations in 120 cities, in 9 countries, including Sri Lanka, India, Bangladesh, Nepal, UAE, Oman, Bahrain, Qatar and Kuwait. VLCC employs over 6000 professionals, a majority of whom are doctors, nutritionists, psychologists, cosmetologists, beauticians and physiotherapists. Since its inception, VLCC has served over 10 million satisfied customers, making it the most preferred slimming, beauty and health brand in the countries it operates in.

Ms. Vandana Luthra, the guiding force behind this multi-national company is among Fortune magazine's list of the 50 most powerful businesswomen in India. Ranking 38th on the Indian version of Fortune magazine - Ms. Vandana Luthra is a dynamic educationist. Ms. Luthra is scheduled to visit the Sri Lankan VLCC centres and will speak on the extensive range of brand products during her visit to Sri Lanka next week.

Elephant Pass Saltern to Start Operations with an Indian Company

23rd January 2012, www.dailynews.lk, By Shirajiv Sirimane

An Indian salt manufacturing company will start operations on one of Sri Lanka’s largest salterns at Elephant Pass mid this year.

Consul General of India in Jaffna, V. Mahalingam said that they have already provided technical assistance to commence this plant.

He also said that the Indian government has also agreed to provide 10,000 push bicycles to the North East and an Indian company would soon start a bicycle assembly plant in Vavuniya.

He also said that travellers from North East to India have increased for leisure, pilgrim, education, business and for health purposes. ``We process around 50 to 75 applications each day,” he said.

He also said that the State Bank of India would open one of its branches in Jaffna making it the second Indian bank after Indian Bank to operate in Jaffna. “In addition Indian Life Insurance Corporation too is looking at opportunities in Jaffna,” he said.

India & Sri Lanka Sign Deals Worth $ 703mn and Five Bilateral Agreements. Highlight of the Visit of India’s Foreign Minister S M Krishna

18th January 2012, www.ft.lk

ndia and Sri Lanka yesterday signed bilateral deals worth over $ 703 million, largely involving financial assistance from the giant neighbor boosting housing, railway and water supply among other areas.
The two countries signed five bilateral agreements, a key highlight of the visit of India’s Foreign Minister S.M. Krishna, who arrived on Monday on a four-day tour.

A MoU specifying the modalities for the next phase of the Housing Project being implemented with India’s assistance of approximately $ 260 million was signed by Krishna and his Lankan counterpart Prof. G.L. Peiris.

The MoU involves the construction of 49,000 houses, out of a total of 50,000 houses and includes inter alia reconstruction of 38,000 houses, repairs of 5,000 houses under the owner-driven model for IDPs, and construction of 6,000 houses by agencies for vulnerable sections of IDPs who are unable to build their own houses.  A pilot project for construction of first 1,000 houses is already in an advance stage of completion.
Additionally a Line of Credit Agreement of $ 382.37 million for the restoration of Northern Railway Services was signed by T.C.A. Ranganathan, Chairman and Managing Director, EXIM Bank of India and Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning, Government of Sri Lanka.

The Line of Credit will be used for track-laying on the Pallai-Kankesanthurai railway line, setting up of signalling and telecommunications systems for the northern railway line and other projects as may be mutually agreed by the Governments of India and Sri Lanka.

The two countries also signed a Buyer’s Credit Agreement for $ 60.69 million for financing the Greater Dambulla Water Supply Project for supply, erection and commissioning of water treatment plant and distribution across Dambulla region in Sri Lanka. Signatories were Ranganathan and Dr. Jayasundera.

Two agreements were signed promoting technical cooperation.

One was a MoU on cooperation in the field of agriculture signed by Ashok K. Kantha, High Commissioner of India and W. Sakalasooriya, Secretary, Ministry of Agriculture, Government of Sri Lanka. Under the MoU, both sides shall promote development of cooperation in the fields of agricultural science and technology, agricultural production and agro-processing through joint activities, programmes, exchange of scientific materials, information and personnel. The cooperation will be effected through biennial work Plans and joint activities.

The other was an MoU was signed by Dr. J.S. Sarma, Chairman, Telecom Regulatory Authority of India (TRAI) and Mr. Anusha Palpita, Director General, Telecommunication Regulatory Commission of Sri Lanka  (TRCSL). The MoU provides for establishing a mechanism of technical and institutional cooperation in the field of telecommunications, with the purpose of development of telecommunications in both the countries particularly in the areas of technological developments, universal access to telecommunication services, oversight of service provision, convergence, next generation networks, new technologies, spectrum issues, green telecom, number portability, economic regulation, ICTs for development and other issues as may be mutually agreed.

Image By Sudath Silva

India Grants $ 260mn to Build 49,000 Houses in Northern, Eastern, Central & Uva Provinces of Sri Lanka

13th January 2012, www.ft.lk, By Uditha Jayasinghe

Cabinet has approved a US$ 260 million grant from India to build 49,000 houses in the Northern, Eastern, Central and Uva Provinces of Sri Lanka.

The grant will be used for reconstruction and repair of severely and partly damaged houses belonging to Internally Displaced People (IDPs) in the Northern and Eastern Provinces.

The project will be implemented in three stages. In stage one reconstruction will be done by providing funds to the owner of the house. In the second stage the owner will be given money to repair his house and in the third mode an agency will build the house for the IDPs.

In the first stage around 38,000 houses are expected to be constructed with each house being given Rs. 550,000 in four tranches to the bank accounts of the owners.

Under the second stage about 5,000 houses will be repaired in the north and east with payment being released in three tranches.

Under the last mode 6,000 houses are to be reconstructed and about 4,000 of them will be for estate workers in the Central and Uva Provinces. The entire project will be implemented under the supervision of the Presidential Task Force for Resettlement and Economic Development Ministry.

Even though the Indian Government promised 50,000 houses initially, Cabinet Spokesman Minister Keheliya Rambukwella told media that already around 1,000 houses have been built and this is the cover the rest of the pledge.

The Indian Government pledged to donate 50,000 houses for IDPs in 2009, but the execution has been delayed.

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Indo Lanka Trade Up by 72pct. Free Trade Agreement (FTA) Covers only 30pct of the Trade

10th January 2012, www.dailymirror.lk, By Kelum Bandara

The volume of bilateral trade between Sri Lanka and India during the first eleven months of last year had reached US$4.46 billion, an increase of 71.94 per cent when compared with the corresponding period of the previous year, an official said yesterday quoting Sri Lanka Customs data.

But of this India’s exports to Sri Lanka amounted to US$3.97 billion. During this period, Sri Lanka’s exports had grown by 15 per cent while India’s exports had grown by 85 per cent.

He said 70 per cent of trade between the two countries took place outside the Free Trade Agreement (FTA).

“This means that this percentage takes place outside the duty-free tariff regime. Sri Lanka imports numerous items from India because it is competitive,” the official said.

Meanwhile, Commerce and Industries Minister Rishad Bathiudeen will attend the Partnership Summit in Hyderabad from January 11 to 13. On the sidelines of the summit, the minister is expected to interact with his Indian counterpart and hold bilateral talks trade between the two countries.

Indo-Lanka talks continue to be held from time to time on the Comprehensive Economic Partnership Agreement (CEPA) which is still to be signed.


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Sri Lana's Northern Railway Line Restoration to Receive $ 382mn from India

07th January 2012, www.news360.lk

Sri Lanka will receive a US$ 382.37 million loan from India’s Export and Import Bank to restore the Northern railway line, which was destroyed during the three decades of war.

Out of the loan, US$ 149.3 will be used to reconstruct the railway line from Pallai to Kankasanthurai, while another US$ 86.52 million will be used to set up signaling and telecommunication systems in the Northern railway line.

The rest of the money, which accounts for US$ 146.51 million, will be utilized for other contracts that may be mutually agreed upon by the two governments.

Cabinet of Ministers has given its green light to obtain the loan from India.

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India Sri Lanka Sign Deal to Develop Kankesanturai Port in the Northern Jaffna Peninsula that was Damaged during the War

22nd July 2011, www.island.lk

India is to provide Sri Lanka with grants and soft loans to rebuild Kankesanturai port in the northern Jaffna peninsula that was damaged during the ethnic war, under a deal signed Thursday.

India has already committed 20 million US dollars for the work which involves a hydrographic survey, wreck removal and dredging, along with rehabilitation of the breakwater and construction of a new pier and attendant port facilities, a High Commission statement said.

The agreement signed is part of the package of assistance India promised among other infrastructure projects in the Northern Province.

Indian High Commissioner Ashok K Kantha said the project would contribute towards reconstruction efforts, restore traditional domestic and regional linkages and give a fillip to economic activity by encouraging trade and generate employment.

Total expenditure on the project will be determined by the ‘Detailed Project Report’ (DPR) that is to be prepared.

But India has already committed about 20 million dollars (2.2 billion rupees) for the preliminary hydrographic survey, geotechnical investigations and DPR preparation and wreck removal and salvage.

"In addition to this, the Government of India will provide additional grant funding for the dredging of the harbour and concessional credit for the rehabilitation of the breakwater and construction of a new pier and attendant port facilities," the statement said.

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India to Build Sri Lanka's Remaining North Railway. $ 149.3mn Contract Given to Indian Railway Construction International Ltd (lRCON)

15th July 2011, www.lankabusinessonline.com

India's state-run Indian Railway Construction International Ltd (lRCON) has been given a 149.3 million US dollar contract to build a remaining part of a railway track to Sri Lanka's north, the government's information office said.

The entire track from Vavuniya to Jaffna was destroyed during a civil war which ended in 2009.

A railway track from the northern town of Vavuniya to Omanthai has already been built and trains are being run.

The track from Omanthai to Pallai has already been awarded to IRCON.

The balance part of the track from Pallai to Kankasanthurai in Jaffna has also been awarded to IRCON by the cabinet of ministers.

The 149.3 million dollar project is financed by the Exim Bank of India, the statement said.

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Cairn India Calls for Oil Spill Response Proposals as It Drills First Well off Sri Lanka in August

11th July 2011, www.lankabusinessonline.com

Cairn India which is exploring for petroleum resources off Sri Lanka has called for proposals for oil spill response equipment and services as it prepares to drill its first well in August this year.

The company announcement said delivery of equipment could be either at Colombo or Chennai in south India indicating its support operation for offshore wells in the Gulf of Mannar might be based in India.

Sri Lankan companies interested in the oil industry business had been hoping to win support contracts for the exploration and subsequent production phase.

Cairn India (CIL) and its subsidiary Cairn Lanka (CLPL) are seeking Expressions of Interest from experienced offshore oil spill response equipment manufacturers and service providers to sell offshore oil spill response equipment to support exploratory offshore drilling.

"CIL and CLPL are exploring an option to buy offshore oil spill equipment which includes protective booms, containment booms, skimmers along with power packs, inflatable storage tanks and beach cleaning kits.

"CIL is looking for delivery of the equipment either at Colombo, Sri Lanka or Chennai, India and storing it in the company warehouse," the announcement said.

"However, CIL/CLPL reserves the right to decide the location of delivery."

The contractor would be required to provide support services to include maintenance and training on use of the equipment for Cairn's oil spill response crew.

Cairn is set to starting drilling three test wells off the island's north-west coast in August.

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Regional Firms to List in Sri Lanka. Atlease 2 Firms from Maldives May List before Year End

08th July 2011, www.lankabusinessonline.com

Regional firms are expressing interest in listing Sri Lanka, and at least two firms with operations in the Maldives may be listed before the end of the year, director general of the island's Securities Exchange Commission Malik Cader said.

Sri Lanka is now allowing foreign firms to list in the country by incorporating a holding company in the island with at least two resident directors.

"Two or three firms may come through that route this year," Cader said.

The local firm will be the beneficial owner of the foreign assets and will be subject to Sri Lanka accounting and other laws.

Cader said firms with leisure assets in the Maldives have expressed interest and are likely to be among the first to be listed.

The firm could then be cross listed in Maldives if necessary he said.

Sri Lanka's market has more liquidity than the Maldives's fledging bourse at the moment.

Sri Lanka itself is chasing and alliance with the London Stock Exchange through its 'international board' project.

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Sri Lanka India Ferry Service Allows cars to be Brought in under Flemingo Liners' Drive In Drive Out Facility

07th July 2011, www.news360.lk

With a view to provide tourists visiting Colombo via a ship from Tuticorin with a unique holiday experience, Flemingo Liners, the international passenger ferry service operating in the sector, has launched a “Drive in-Drive out” facility on its vessel Scotia Prince.

According to the ferry operator, this new facility will enable tourists to take their vehicles with them on the ferry and drive around at the destination.

The first passengers to avail of this facility on board the Scotia Prince were two Australians who used the facility to travel from India to Sri Lanka. They had obtained the certificate from the Australian Automobile Association.

P K Thimmayya, CEO, Flemingo Liners, said, “We are happy to add a new dimension to the travel itinerary and are hopeful that this will open up an entirely new category of clientele who would like to travel with their own car into Sri Lanka and vice versa.”

“The vehicles would be checked inside the ship as registered baggage which the passenger can then claim on reaching their destination,” he said.

To avail this facility, passengers (tourists) need to obtain the ‘Carnet de Passage’ document (costing around Rs 5,000) from the Automobile Association of India. On reaching Sri Lanka, the passengers should approach the local Automobile

Association to obtain a temporary registration certificate to go around the country in the vehicle.

Tourists should bear in mind that they should return within six months to a year and must provide a bank guarantee. The tourists need to be a member of the Automobile Association, which would charge Rs 4,412 for a lifetime membership.

They also need to get their vehicles inspected and have to declare the tools they are taking with them.

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Indian Tourists, A Major Market for Sri Lanka’s Tourism Industry

25th June 2011, www.island.lk

India constitutes a big market with a growing middle class who creates an increasing demand for travel and tourism. This provides a major source market for Sri Lanka’s tourism industry, provided that the tourism industry is set to capitalize on the opportunity that it has within close proximity by recognizing the specific features of the Indian tourists.

Dr. Sirimal Abeyratne, Professor of Economics of the University of Colombo, made this remark presenting his research findings on the issue at the Sanvada Seminar of the Pathfinder Foundation, held at the Sri Lanka Institute of Tourism and Hotel Management on June 9.

The seminar was complemented by a timely and well researched analytical study for the Pathfinder Foundation, the economic think-tank on the Indian tourism market. This study includes a detailed analysis of the current status and characteristics of Indian tourist arrivals in Sri Lanka, and identifies a number of benefits from further promotion.

The seminar was chaired by Professor Rohan Samarajiva, Executive Director of Lirneasia, while Mr. Anura Lokuhetti, President of the Tourists Hotels Association of Sri Lanka and Mr. Hiran Cooray, Chairman of Jetwing made presentations.

According to eminent academic Professor Abeyratne, Sri Lanka attracts only about 1% of over 11 million Indian tourists whose attractive tourist destinations are Singapore, China, Thailand, Hong Kong and USA. These countries attract ‘high income’ and ‘upper-middle income’ tourists, while Sri Lanka caters to the Indian tourists from the ‘lower middle’ income groups.

Indian tourists are different from the Western tourists in terms of tourism interests and purposes, seasonal variation of arrivals, tourist nights spending and, tourism expenses. By identifying the importance of this growing market and its special characteristics, Sri Lanka should create a differentiated tourism product market, adopt simple and clear immigration procedures and develop regional ‘entry points’ by air and sea in the Northern part of Sri Lanka.

In addition, Indian tourism is associated more with business, shopping, and other purposes than with leisure. According to Professor Abeyratne, it is important to create a tourism sector that caters to divergent tourism interests and strengthen economic integration with India.

Mr. Anura Lokuhetti, President of the Tourists Hotels Association of Sri Lanka, elaborated the importance of the growing Indian economy and its middle class who creates an ever-increasing demand for travel and tourism. As India is projected to have over 50 million outbound tourist departures by 2016, given the close proximity Sri Lanka has the potential to become a major tourist destination for Indian tourists.

Mr. Hiran Cooray, Chairman of Jetwing, highlighted the importance of learning how to cater to the Indian tourists as they are a highly diverse group which requires designing differentiated tourism products to cater to all. He also stressed the potentials that Sri Lankan tourism industry possesses to cater the big Indian market, but as at present Sri Lanka caters only to its lower-end tourist market.

Wrapping up the Sanvada Seminar, the Chairperson, Professor Rohan Samarajiva, Chairman of Lirneasia, pointed out the importance of ‘Patel Points’ in USA, UK and many other countries which provide a memorial attraction to the Indian tourists. In Sri Lanka, there is hardly any ‘Patel Point’ that attracts Indian tourism.

The Sanvada Seminar is aimed at studying the importance of Indian tourist arrivals for the tourism development of Sri Lanka with inputs and comments from the resource persons to feed into a policy debate.

The final outcome of the event is to prepare a Policy Brief which will be distributed among the Parliamentarians, policy makers, and other government and non-government agencies in guiding the policy formulation.

The Pathfinder Foundation is conducting this seminar in collaboration with the Centre for Indo – Lanka Studies, interested parties on the studies can contact via phone 2372895 or e-mail to pm@pathfinderfoundation.org

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India's ICRA to Offer Credit Rating Services in Sri Lanka

24th May 2011, www.dailymirror.lk

India’s rating major ICRA Limited (ICRA) is poised to offer credit rating services in Sri Lanka, following the licence granted to ICRA Lanka Limited (ICRA Lanka), a wholly-owned subsidiary of ICRA, by the Securities and Exchange Commission of Sri Lanka.

The Lankan venture was incorporated early this year and will be offering its services in the local market, using parent ICRA’s accumulated experience in the areas of credit rating, grading and investment information.

Speaking on the occasion, P.K. Choudhury, Vice-Chairman and Group CEO, ICRA, said, “Sri Lanka, for us, holds a lot of promise at this juncture. With decades-long war now over, the country appears poised to move up on a higher growth trajectory. From our perspective, the time is just right for ICRA to enter the country and contribute towards the development of the nation’s capital markets and also participate in that growth.”

Elaborating on the subject, Naresh Takkar, Managing Director & CEO, ICRA, said the macro environment in Sri Lanka has improved considerably during the last two years and he was optimistic that growth rates would move up significantly. He underscored the fact that Lankan economy had reported growth rates of around 6% even during difficult periods, and pointed to last year’s 8% to justify his optimism. Takkar added that given the need, potential and willingness to develop Sri Lanka’s capital markets for faster growth, the prospects for the ratings business are bright.

According to W Don Barnabas, the Colombo-based Director of ICRA Lanka, optimism abounds in Sri Lanka as the country being able to achieve steep growth rates in the years ahead. He feels this growth will be driven, inter alia, by the development of the capital markets.

“But,” he adds, “although we have a relatively developed, though small, equity market, the debt market is still in its infancy. There is great scope to develop this market, and that augurs well for the ratings business in Sri Lanka.” Commenting on the current status of the ratings business in Sri Lanka, Don Barnabas said there is large scope to add to the width and depth of the ratings market.

In Sri Lanka, while the government debt market made some significant strides in the recent past, the total size of the government debt and corporate bond markets remains very small in relation to GDP, as compared with most other Asian nations. But it is well recognized and accepted by policymakers in Sri Lanka that an expanded bond market would improve the efficiency of the domestic capital market by lowering spreads, extending maturities, and raising the return on long-term investments. Further, it would also contribute positively to mobilizing long-term investments, a requirement for high and sustainable economic growth rates. In this context, it is significant that Sri Lanka is one of the first countries in the region to have deregulated its markets and built up infrastructure to facilitate efficiency in the financial markets.

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