20 November 2009

SriLankan to Fly in More Tourists, Maldives, Oman, Middle Eastern and European Destinations to be Served More

20th November 2009, www.news.lk

The national carrier SriLankan, which will initially operate four flights per week has obtained a fifth freedom traffic right between Colombo and Maldives from January 2010. It will then progress to daily flights from the summer of 2010, Sri Lanka Tourism Promotion Bureau sources said.

It will open up new opportunities for people traveling between Muscat and Colombo, and also Middle Eastern and European destinations as well as being a winner with both business and leisure customers.

Oman Air first commenced operations in Sri Lanka in 1991 and decided to stop operations to Colombo in 2003 quoting the low yield, generated from this market.

Sri Lanka is famous for its hospitality and plethora of holiday destinations and has always been a popular choice for holiday tourists.

Holidays in Sri Lanka will give Oman Air customers the chance to experience the charm of this tiny island in the Indian Ocean amidst its scenic beauty, old world charm and laid back atmosphere.

Negombo Beach Festival 2009, Fun and Excitement on the Beach of Negombo, Sri Lanka from 11th to 13th December

20th November 2009, www.news.lk

The ‘Negombo Beach Festival 2009’ is a power packed event to keep visitors on their toes, with Percussion Sessions, Beach Soirees, Street Parades, Paint Balling and 4 x 4 driving.

An expanded childrens area will cater to the interests of the little ones keeping them actively engaged.

It’s the coastal town to the north of Colombo, which beckons visitors this December when the weekend of 11th to 13th brings fun and excitement to the beach in Negombo, Sri Lanka Tourism Promotion Bureau revealed.

While the festival will no doubt be the highlight, Negombo is also a bustling fishing town with many ethnic groups living in harmony bearing testimony to Sri Lanka’s rich multi cultural society.

Remnants, of a strong Portuguese, Dutch and British presence are felt throughout and particularly the influence of the Catholic Church. A beautiful lagoon and canals offer a variety of birds for the nature lover making a trip to this town a must do on a visit to the destination, sources added.

Sri Lanka Speeds up Coal Power Plant, Chinese Financed 900MW Facility to be Finished in Two Phases Instead of Three to Cut High Power Costs

19th November 2009, www.lankabusinessonline.com

Sri Lanka will build two 300 MegaWatt coal power plants at the same time with Chinese financing and finish a 900MW facility in two phases instead of the originally planned three to cut the country's high power costs.

Information minister Anura Yapa said Sri Lanka's cabinet of ministers has given the nod for the government to borrow 891 million US dollars from China to finish a 900MW coal power complex in Puttalam, in the island's West Coast.

The first phase of 300MW is scheduled to finish at the end of 2010.

In the first phase of a coal plant, a coal handling jetty, a transmission line from Puttalam's Norochcholai area to Veyangoda and a grid substation is being built with a 455 million loan from China.

China's Exim Bank has given 300 million US dollars as a 'preferential buyer's credit' and 155 million US dollars as a 'buyer's credit'.

The second and third phases have been telescoped into a single phase in view of "the urgency of developing coal power", a cabinet note from the finance ministry said.

Sri Lanka has one of the highest power costs in the region due to heavy reliance on diesel plants as coal plants were opposed by environmental and religious activists.

Under the second phase a transmission line from Norochcholai to Anuradhapura, in north central Sri Lanka, would be built. New grid substations would be built in Anuradhapura and Chilaw in the west coast and coal handling port facilities expanded.

The 891 million dollar 'preferential buyer's credit' would be repayable in 20 years with 5 year grace at 2.0 percent interest.

A management fee of 0.5 percent would be charged after 30 days after the loan agreement becomes effective, and a commitment fee of 0.5 percent will be charged on the unutilized portions.

Image courtesy of colombopage.com

Costs of Sowing Halved : New Mechanized Seeder and Transplanter for Paddy Farmers from Hayleys Sri Lanka

20th November 2009, www.dailynews.lk

Two new mechanical devices to be introduced to farmers by Hayleys Agro Products Limited (HAPL) could substantially reduce costs of crop establishment and significantly improve yields of rice paddy from the current Maha and forthcoming Yala seasons.

Locally developed and fabricated with inputs from the Farm Mechanisation Research Centre (FMRC) of the Department of Agriculture, a mechanised Seeder ready for use from Maha 2009-10 will reduce the seed rate required per hectare of paddy by more than half, while a mechanised Transplanter expected to be commercially available for the next Yala season would also halve the cost of manual transplantation, the company said.

The use of each of these machines in crop establishment, the only area currently not mechanised in Sri Lanka, would increase paddy yields by up to 15 percent and make pest and weed management very much easier, Hayleys Group Director and Agri Sector Head Rizvi Zaheed said.

“These new machines are good examples of meaningful mechanisation particularly in the context of labour shortages in many paddy cultivating areas, and the need to reduce costs, improve yields and produce better quality,” Zaheed said.

The Hayleys Agrotech Seeder, a device that resembles a lawn mower, will enable farmers to return to row seeding, a better agronomic practice than the direct seeding widely prevalent, HAPL Director/CEO Upali Gangoda said.

Direct seeding consumes about 100 kg of seed per hectare, whereas row seeding by machine requires only 40 to 50 kg and enables one worker to seed three or four acres a day, he said.

“Fifty years ago and beyond, transplanting paddy from nurseries to the fields was the predominant practice,” Gangoda said. “Sadly, labour shortages have resulted in 95 percent of today’s paddy crops being established through direct sowing, and only five percent is transplanted.”

Mechanised row seeding practised widely in Vietnam, India and the Philippines, is a more productive alternative to sowing and makes for better crop management, higher labour productivity and better yields, he said.

To promote the even better practice of transplanting 18 to 20 day old paddy plants instead of direct sowing or row seeding, Hayleys Agro is currently in the final stages of testing a mechanised Transplanter also developed under the Agrotech range.

The diesel-powered machine would reduce the cost of manual transplanting of Rs 6,500 to Rs 7,000 per acre to Rs 3,000 per acre, and also substantially reduce harvesting costs, Gangoda disclosed.

“We expect to have this exciting new machine ready for deployment by March 2010, in time for the Yala season,” he said.

Nahil Wijesuriya Explores Print Media Business in Sri Lanka, May Start Wijesuriya Newspapers

20th November 2009, www.dailymirror.lk

One of Sri Lanka's top entrepreneurs yesterday expressed strong 'interest' in starting up his own business newspaper in view of the Wijeya group setting up an independent financial broadsheet.

Business magnate Nahil Wijesuriya, the largest shareholder of the Ceylon Continental Hotel and Chairman of the East West Group, stated that, while he was "very interested in exploring the possible opportunities inherent in venturing into the print media business” he was not able to elaborate further about his plans without "the appropriate preliminary explorations and due diligence being undertaken". He also hinted at naming his new venture Wijesuriya newspapers.

Popular with readers, the Sunday Times and Daily Mirror Financial Times sections were announced as being closed down, according to advertisements by Wijeya Newspapers this week. Online polling of readers in both the Daily Mirror and Sunday Times have shown a majority opinion in favour of continuing the activities of the local Financial Times in some form as these publications, as one poll respondent puts it, "are in line with the finest in journalistic traditions" as well as, as per another poll respondent’s comments, "never intentionally biased and always accurate in its reporting".

Acknowledged for a string of successes on the Colombo Stock Exchange, it is however Mr. Wijesuriya's achievements in entrepreneurship, particularly in the field of electronic media, which sets him apart from others weighing in on the Financial Times debate. Notably, one of his first endeavours was the setup of the country's first 24-hour English TV station, ETV, which was later sold to the EAP Group, owners of Sinhala TV channel Swarnavahini. Similarly, his most recent efforts have also entailed starting-up the People's Media Network (formerly fully owned by East West Group and comprising Radio 1 and TV 2), of which the frequencies were recently leased out to the state-owned Independent Television Network and re-branded as Prime Radio and Prime TV, the broadcaster's first local offering in the English medium.

Mr. Wijesuriya’s advent to print media would make him the only Sri Lankan business tycoon who has ventured into all three mainline communication mediums - Radio, Television and Print.

SLT WiMax to Cover Sri Lanka, Island-Wide Coverage in Four Phases

20th November 2009, www.dailymirror.lk

A subsidiary of Sri Lanka Telecom (SLT) aims to attract US$12.8 million to provide broadband internet facilities using the latest Wimax technology with islandwide coverage.

In this respect, the Board of Investment of Sri Lanka granted investment approval for Sky Network to provide latest Wimax – wireless broadband services.

Sky Network is an investment of US $ 12.8 million for the first two phases. The venture will provide broadband internet facilities using the latest Wimax technology Wimax 802.16e. The company expects to provide coverage to the entire island in four implementation phases.

CEO Mahinda Herath stated that the company is the first to provide Wimax 802.16e services in Sri Lanka.

Sky Network is a subsidiary of SLT, with SLT being the major shareholder of the company. The venture is a complementary business to SLT. Sky Network will be providing the Wimax services to parts of the country where ADSL services are not offered by SLT. The venture will commence operations in March 2010 and will provide services to Colombo, Gampaha and Kalutara Districts in Phase 1. Herath stated that the venture expects to have a customer base of 11000 Wimax customers under Phase 1.

BOI Chairman/Director General Dhammika Perera signed the agreement on behalf of the BOI and formally presented the BOI Certificate of Registration to SLT Chairperson Leisha De Silva Chandrasena.

19 November 2009

CSE: After COM Bank, Raj begins shedding HNB in Sri Lanka

9th November 2009, www.dailymirror.lk

Lankan born US hedge fund manager Raj Rajaratnam’s Galleon has begun exiting from HNB after it shed holding in Commercial Bank.

HNB saw 1.85 million of its shares (around 1% stake) traded yesterday between a high of Rs. 170 and a low of Rs. 168, before closing at the latter level, down by Rs. 1.50. Analysts said that among sellers of HNB was Galleon as well as Brown & Company. The latter, which has a stake of slightly over 7%, was booking profits.

Galleon’s focus on HNB is following the exit strategy on Commercial Bank, which the market witnessed in recent days.

On Tuesday, a block of 3.5 million shares of COMBank changed hands at Rs. 177 whilst the counter traded between a Rs. 180 and a low of Rs. 176.

Yesterday, a further block of 1.5 million shares of COMBank traded, also at the same price of Rs. 177. While COMBank gained only by 25 cents on Tuesday, it closed up by one rupee yesterday.

Buyers of Galleon shares as well as Browns quantity had been foreign and select local institutional investors.

Despite the second day of over Rs. 900 million turnover, investor sentiments remained relatively bearish on economic and political woes. Market capitalisation dipped by Rs. 1 billion yesterday over Tuesday.