18th September 2009, www.bloomberg.com, By Anusha Ondaatjie
Sri Lanka, which is rebuilding its economy after the end of a 26-year civil war, hired HSBC Holdings Plc, JPMorgan Chase & Co., and Royal Bank of Scotland Plc to sell $500 million of bonds overseas, the South Asian island’s first in two years.
The selection was made from among seven banks that submitted proposals to manage the sale planned for October, the Central Bank of Sri Lanka said in an e-mailed statement today. The government is seeking to raise funds to build roads, schools and hospitals on the eastern and northern parts of the island.
Bank of Ceylon was appointed as a co-manager to work with the three joint lead managers for the sale, the statement said.
The end of almost three decades of civil war in May and a $2.6 billion loan from the International
Monetary Fund helped restore investor confidence and attracted foreign flows, the central bank said July 23. Standard & Poor’s raised its outlook on the island’s credit rating on Aug. 25 to stable from negative, citing improved foreign-exchange reserves.
HSBC, JPMorgan and Barclays Capital arranged Sri Lanka’s debut $500 million global bond sale in October 2007. Investors placed orders for more than three times the amount on offer. The five-year notes due October 2012 were priced to yield 8.25 percent, or 397.2 basis points higher than U.S. treasuries of similar maturity.
Sri Lanka’s foreign currency debt is rated B by Standard & Poor’s, five levels below investment grade, and B+ by Fitch Ratings, the fourth best junk rating. Reserves rose to a record $3.9 billion, aided by IMF funds and foreign buying of rupee- denominated debt, the central bank said on Aug. 28.
To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net.
22 September 2009
Colombo Stock Exchange - Sri Lanka Shares Becalmed, Profit Taking Seen
18th September 2009, www.lankabusinessonline.com
Sri Lankan stocks ended flat Friday with trading heavy but volatile and some profit taking seen and investors buying blue chips in anticipation of future foreign buying, brokers said.
The All Share Price Index fell 0.16 percent (4.61 points) to end at 2,939.44 while the more liquid
Milanka rose 0.
11 percent (3.46 points) to close at 3,293.48, according to provisional stock exchange figures.
Turnover was almost 1.2 billion rupees.
"We saw some volatility in the market and some profit taking also came in but investor participation remained at higher levels like during the previous four days," said Chinthana Hatangala of Lanka Securities.
Conglomerate John Keells Holdings was the highest contributor to the day's turnover with 448.58 million rupees followed by Hemas Holdings with 121.03 million rupees.
JKH closed at 155, up 50 cents while Hemas ended at 130, up 1.50 with several crossings or off-the-floor deals in both stocks.
"During the day we saw higher interest on blue chip, especially the index heayweights," said Hatangala.
"Maybe this was because of expectations of more foreing funds and institutional investor participation in the market in the coming weeks. They try to buy blue chips which have more liquidity as most shares have a small free float."
Central Bank cuts in policy rates and further falls in government treasury bill rates also helped improve interest in equities, Hatangala said.
There was heavy trading in banks and hotels throughtout the week during which foreign participation amounted to 27 percent.
The week ended with a foreign inflow of funds there being net foreign purchases worth 386.86 million rupees, although some selling was also seen.
Sri Lankan stocks ended flat Friday with trading heavy but volatile and some profit taking seen and investors buying blue chips in anticipation of future foreign buying, brokers said.
The All Share Price Index fell 0.16 percent (4.61 points) to end at 2,939.44 while the more liquid
Milanka rose 0.
11 percent (3.46 points) to close at 3,293.48, according to provisional stock exchange figures.Turnover was almost 1.2 billion rupees.
"We saw some volatility in the market and some profit taking also came in but investor participation remained at higher levels like during the previous four days," said Chinthana Hatangala of Lanka Securities.
Conglomerate John Keells Holdings was the highest contributor to the day's turnover with 448.58 million rupees followed by Hemas Holdings with 121.03 million rupees.
JKH closed at 155, up 50 cents while Hemas ended at 130, up 1.50 with several crossings or off-the-floor deals in both stocks.
"During the day we saw higher interest on blue chip, especially the index heayweights," said Hatangala.
"Maybe this was because of expectations of more foreing funds and institutional investor participation in the market in the coming weeks. They try to buy blue chips which have more liquidity as most shares have a small free float."
Central Bank cuts in policy rates and further falls in government treasury bill rates also helped improve interest in equities, Hatangala said.
There was heavy trading in banks and hotels throughtout the week during which foreign participation amounted to 27 percent.
The week ended with a foreign inflow of funds there being net foreign purchases worth 386.86 million rupees, although some selling was also seen.
17 September 2009
Sri Lanka to Build a $500 Million Coal Power Plant in the East with India's NTPC
16th September 2009, www.colombopage.com
Sri Lanka is planning to sign a commercial and power-purchasing agreement with India's National Thermal Power Corporation to build a $500 million coal power plant in the East.
The Power and Energy Ministry announced on Wednesday that it will sign the agreement next week to build the 1,000 MW, coal power plant in Trincomalee
.
"We are going to sign the commercial and power-purchasing agreements next week with India's National Thermal Power Corporation," Reuters news agency quoted Power and Energy Minister, John Senaviratne.
According to the Ministry the project is to be carried out in two phases and the first is expected to be completed by 2012.
"Initially both parties will invest $75 million each and later $350 million will be invested by both parties," a Ministry statement said without elaborating the terms and conditions of the funding arrangement.
Sri Lanka is planning to sign a commercial and power-purchasing agreement with India's National Thermal Power Corporation to build a $500 million coal power plant in the East.
The Power and Energy Ministry announced on Wednesday that it will sign the agreement next week to build the 1,000 MW, coal power plant in Trincomalee
."We are going to sign the commercial and power-purchasing agreements next week with India's National Thermal Power Corporation," Reuters news agency quoted Power and Energy Minister, John Senaviratne.
According to the Ministry the project is to be carried out in two phases and the first is expected to be completed by 2012.
"Initially both parties will invest $75 million each and later $350 million will be invested by both parties," a Ministry statement said without elaborating the terms and conditions of the funding arrangement.
India and Sri Lanka to Sign a New Economic Agreement
17th September 2009, 
firstlanka.com
India and Sri Lanka are expected to sign a new economic agreement next year covering both goods and services, Minister of Investment Promotion Navin Dissanayake said.
He pointed out that, discussions are expected to iron out differences, paving the way for the signing of an expanded Comprehensive Economic Partnership Agreement before 2011.
Bilateral trade volume between the countries went up 3.2 billion US dollars last year, he added.
Sri Lanka and India have close trade and bilateral over decades.
firstlanka.comIndia and Sri Lanka are expected to sign a new economic agreement next year covering both goods and services, Minister of Investment Promotion Navin Dissanayake said.
He pointed out that, discussions are expected to iron out differences, paving the way for the signing of an expanded Comprehensive Economic Partnership Agreement before 2011.
Bilateral trade volume between the countries went up 3.2 billion US dollars last year, he added.
Sri Lanka and India have close trade and bilateral over decades.
New Machines Accelerate Demining in the North of Sri Lanka
17th September 2009, firstlanka.com
The demining process in the North has been accelerated with the addition of new machines imported recently.
The LTTE has buries thousands of mines in civilian settlement areas before the terror outfit was wiped out by the security forces.
The resettlement of the displaced was hindered from time to time due to minefields in civilians areas.
The government, despite all obstacles has moved speedily to demine areas to resettle the displaced.
The security forces work round the clock to accelerate the process for early resettlement of the displaced.
The demining process in the North has been accelerated with the addition of new machines imported recently.
The LTTE has buries thousands of mines in civilian settlement areas before the terror outfit was wiped out by the security forces.
The resettlement of the displaced was hindered from time to time due to minefields in civilians areas.
The government, despite all obstacles has moved speedily to demine areas to resettle the displaced.
The security forces work round the clock to accelerate the process for early resettlement of the displaced.
Hambantota Port to Attract Ship Plying to Singapore and Dubai
16th September 2009, firstlanka.com
The proposed Hambantota Port already set in motion would be a major source towards uplifting the national economy, to financial analysts claimed.
The port after completion is expected to attract new traffic that would add more to the national volume. It is designed ships plying to Singapore and Dubai woul
d pass through Hambantota, a source that would bring additional foreign exchange to the national coffers.
For such traffic, the Hambantota port could provide bunkering services and other maritime services.
The first phase of the Hambantota port is expected to be completed four months ahead of the schedule.The cost is Us dollars 360 million.
Hambantota Port (Harbour) on Google Maps
The proposed Hambantota Port already set in motion would be a major source towards uplifting the national economy, to financial analysts claimed.
The port after completion is expected to attract new traffic that would add more to the national volume. It is designed ships plying to Singapore and Dubai woul
d pass through Hambantota, a source that would bring additional foreign exchange to the national coffers.For such traffic, the Hambantota port could provide bunkering services and other maritime services.
The first phase of the Hambantota port is expected to be completed four months ahead of the schedule.The cost is Us dollars 360 million.
Hambantota Port (Harbour) on Google Maps
UK Further Relaxes Travel Advisory to Sri Lanka
16th September 2009, www.news.lk
The United Kingdom yesterday (15) updated its travel advice for Sri Lanka reflecting on their latest assessment towards the country and its current situation.
Issuing a statement the British Acting High Commissioner, Mark Gooding said that the UK Government has further relaxed of its travel advice to Sri Lanka.
The High Commissioner said that this latest change reflects the latest available information and is intended to help UK nationals make informed decisions on whether to travel to Sri Lanka.
“We continue to recommend strongly that UK nationals who are resident, working, or visiting Sri Lanka for over a month also register with the British High Commission, Colombo,” the statement added.
The United Kingdom yesterday (15) updated its travel advice for Sri Lanka reflecting on their latest assessment towards the country and its current situation.
Issuing a statement the British Acting High Commissioner, Mark Gooding said that the UK Government has further relaxed of its travel advice to Sri Lanka.
The High Commissioner said that this latest change reflects the latest available information and is intended to help UK nationals make informed decisions on whether to travel to Sri Lanka.
“We continue to recommend strongly that UK nationals who are resident, working, or visiting Sri Lanka for over a month also register with the British High Commission, Colombo,” the statement added.
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