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.

Related Info :

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

New Housing Project of 830 Houses Started at Rs200mn. Project to Complete in April 2012

30th March 2011, www.dailynews.lk, By Indunil Hewage

Nimavin Developers Director Duminda Liyanage told Daily News Business the company will be starting construction work on 830 houses in Horana within this week and project work is to be concluded by around April in 2012.

The company will inject over Rs 200 million to built 830 houses and the remaining investment will be done with financial assistance of banks.

The company will also embark on starting construction work of another 105 houses in Gampaha this week and construction work of the project is due to be completed in December this year.

The demand for houses and apartments has been increasing in the recent past.

Related Info :

• Sri Lanka in for a Construction Boom over Next 5yrs Driven by Reconstruction and Rehab Requirements

• Sri Lanka's UDA Debentures Draws Over Rs 5bn

CITICORP Singapore Buys Entire Allocation for Foreigners in UDA Debentures

05th October 2010, www.news360.lk, By Prasanna C. Rodrigo

CITICORP Investment Bank Singapore limited of Singapore has purchased the entire amount of Rs. 3 billion allocated for foreign investors in the just concluded debenture issue of Sri Lanka’s Urban Development Authority.

Bank of Ceylon the issuer to the debenture said the money came through the local branch of the CITI Bank, which in US$ terms runs up to roughly US$ 27 million.

The Ports Authority, Bank of Ceylon, Sri Lanka Insurance Corporation, the National Insurance Trust Fund, Seylan Bank, Commercial Bank and Sampath Bank are the local parties who invested on this UDA debenture.

UDA raised Rs. 10 billion via this issue and have already announced the basis of allotment of debentures.

Accordingly, The Ports Authority will receive Rs. 1.7 billion worth of debentures; The National Insurance Trust Fund a sum of Rs. 1.045 billion, Bank of Ceylon and the Sri Lanka Insurance each will get Rs. 871 million.

Meanwhile, the 3 other Banks, Seylan, Sampath and the Commercial Bank respectively will receive Rs. 435 million worth of debentures, each.

The UDA debenture will be listed on the main board of the CSE within a period of 2 weeks.

The debenture offered 3 types of investment packages.

A 11% rate will be given to annual payment of interest, a 10% rate will be given to monthly payment of interest and the bi-annual rate will be decided based on the Treasury bill rate + 0.75%.

The salient feature of this debenture is, it is given a Sri Lankan Government’s treasury guarantee.

Related Info:
Sri Lanka UDA Debenture Issue Closes after Rs11bn Bids

Sri Lanka Urban Bond Raises Rs4.6bn at Opening. 30pct of the Rs 10bn Issue Open to Foreign Investors

24th September 2010, www.lankabusinessonline.com

A five-year bond issued by Sri Lanka's Urban Development Authority (UDA), a state agency, to raise 10 billion rupees which opened Thursday has drawn 4.6 billion rupees, a stock exchange filing said.

The UDA is issuing 50 million debentures at 100 rupees each, to be doubled if oversubscribed, to raise cash to resettle squatters occupying prime property in Colombo city owned by government and to free land for private sector commercial development.

The stock exchange filing by state-run Bank of Ceylon, which is managing the issue, said a total of 37 applications for 46,255,900 debentures had been received so far.

The bonds are to be listed on the main board of the Colombo Stock Exchange.

Officials have said 30 percent of the issue is open to foreign investors.

The money raised will be used to build alternative homes for unauthorized dwellers in 800 acres of high value state land in Colombo city.

Investors could chose between three interest options: 11.0 percent annual, 10 percent monthly or a floating rate of Treasury bill plus 75 basis points every six months.

The UDA said it would be able to build around 20,000 houses if 5.0 billion rupees was raised and around 65,000 if 10,000 billion rupees was raised.

P A Lionel, head of investment banking at Bank of Ceylon has said commitments for over 5.0 billion rupees had already been received before the issue opened and they were open to offers for 10 billion rupees.

Related Info:
Sri Lanka's UDA Debentures Open on Sept 23. 30% of Rs 10bn 5yr Bond Open to Foreign Investors

Sri Lanka's UDA Debentures Open on Sept 23. 30% of Rs 10bn 5yr Bond Open to Foreign Investors

19th September 2010, www.dailynews.lk, By Harshini Perera

The UDA debenture issue will be open to the public on September 23. It will close after 14 days of the opening date.

Depending on the present demand, it is expected to close before 14 days, Bank of Ceylon, Investment Deputy General Manager P A Lionel told Daily News Business. The prospectus for the UDA debenture is available at the Colombo Stock Exchange (CSE) website.

The printed version will be available to the public from September 20.The self-financing UDA debenture issue will be utilised to construct low-income housing schemes for unauthorized dwellers in the Colombo metropolitan city limit.

Under this initiative, a revolving housing project of 65,000 units will be constructed. It will enable the Government to use 800 acres of valuable land for commercial purposes in the Colombo metropolitan area.

These lands are now occupied by unauthorized persons.

Related Info:
Sri Lanka's UDA Launched 5yr Bond to Raise Rs 10bn. 30pct Open to Foreign Investors