04th January 2010, www.dailymirror.lk
Sri Lanka Ports Authority (SLPA) said yesterday a number of steps have been taken to expand the operations of oil tankers at the Colombo Port.
The New North Pier developed as a multipurpose berth to handle oil tankers launched its first handling of such operations on Wednesday with the vessel MT Heaven.
SLPA said these new measures were according to the instructions by President Mahinda Rajapaksa and under supervision of Minister of Ports and Aviation Chamal Rajapaksa, Minister of Port Development Dilan Perera, Chairman of SLPA Dr. Priyath Bandu Wickrama and Jaya Container Terminals, which acts as a 100% share holder of SLPA.
A new oil pump pipe line system has been constructed with all affiliated facilities from the New North Pier up to the South Jetty for oil transportation. With this latest project all extra berthing facilities will be provided for the oil tankers reaching Colombo for bunkering purposes.
The new process will further elevate the oil transportation, in a more efficient and productive manner, from Colombo Port to the oil storage tanks of the Colombo oil Banks managed by the Jaya Container Terminals.
It is a specialty that all constructions of the project are planned and carried out by the engineers and the staff of SLPA. It is expected to boost the flow of foreign exchange to Sri Lanka through a competitive bunkering service at Colombo Port following the completion of the whole project.
Currently, steps have also been taken to construct two new oil storage tanks at the Colombo oil bank premises to boost the capacity in order to improve the bunkering facilities at Colombo Port. The projects will further assist the developments at the Colombo Port as a maritime and logistics hub in the entire region.
04 January 2010
Sri Lankan Economy to Grow by 7-9% Says Central Bank Monetary and Financial Sector Policies for 2010
04th January 2010, www.sundaytimes.lk
Sri Lanka’s economy is expected to grow by 3.5% in 2009 while the gradual recovery of the global economy and the end to the conflict is expected to provide a strong impetus to the domestic economy in 2010 and beyond, the Central Bank (CB) said today (Monday).
The CB unveiled its monetary and financial sector policies for 2010 and beyond earlier when CB Governor Ajith Nivard Cabraal stated that the economy is posed to record a higher growth of around 7 to 9% in the medium-term.
Some of the highlights of the presentation were plans to set up an Export/Import (EXIM) Bank to provide financial assistance to exporters and importers and promote the country’s international trade in goods, services and investment. Mr. Cabraal said the capital currently contemplated is US$200 million.
Mr. Cabraal also spoke on initiating the transformation of the existing framework of the Employees’ Provident Fund (EPF) to a banking model. This would establish a sound risk return profile to generate a positive real rate of return over the long term. The CB will also initiate enrolling of the ‘informal sector’ labour force and self-employed persons amounting to 500,000 by 2012 and two million by 2015.
On the external front, exports and imports are projected to increase in the medium term, thereby generating higher economic activities in the economy. Despite the expected increase in workers’ remittances and higher inflows to the services account, the current account is expected to record a deficit less than 3% in the medium term.
On the fiscal front, the overall budget deficit is expected to reduce over the medium term. The improvement in the financial position of both the government and public corporations is expected to release resources to the private sector.
The balance of payments (BOP) is projected to record a surplus of US$700 million in 2010. The private sector is expected to make a substantial recovery in 2010.
An improvement in the financial operations of major public corporations including the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) is expected. The performance of public corporations would depend to some extent on the price of crude oil and fertilizer in the international markets.
Inflation is expected to be contained within single digits in 2010. On an annual average basis, inflation is projected to be about 5 to 10% by end 2010.
The public sector will need to function in line with stipulated norms. Any substantial increase in credit to the public sector could put the vulnerable recovery in the private sector at risk by exerting upward pressure on market interest rates. Also, an undue increase in the overall money supply caused by accommodating increases in credit to all sectors could endanger the projected low inflation environment in the ensuing period.
The CB stated that the move of the Department of Census and Statistics (DCS) to update the existing Colombo Consumer Price Index (CCPI) in 2010, based on the findings of the Household Income and Expenditure Survey – 2006/2007, is a welcome move. The entire publication can be found on the CB website at www.cbsl.gov.lk (NG).
Sri Lanka’s economy is expected to grow by 3.5% in 2009 while the gradual recovery of the global economy and the end to the conflict is expected to provide a strong impetus to the domestic economy in 2010 and beyond, the Central Bank (CB) said today (Monday).
The CB unveiled its monetary and financial sector policies for 2010 and beyond earlier when CB Governor Ajith Nivard Cabraal stated that the economy is posed to record a higher growth of around 7 to 9% in the medium-term.
Some of the highlights of the presentation were plans to set up an Export/Import (EXIM) Bank to provide financial assistance to exporters and importers and promote the country’s international trade in goods, services and investment. Mr. Cabraal said the capital currently contemplated is US$200 million.
Mr. Cabraal also spoke on initiating the transformation of the existing framework of the Employees’ Provident Fund (EPF) to a banking model. This would establish a sound risk return profile to generate a positive real rate of return over the long term. The CB will also initiate enrolling of the ‘informal sector’ labour force and self-employed persons amounting to 500,000 by 2012 and two million by 2015.
On the external front, exports and imports are projected to increase in the medium term, thereby generating higher economic activities in the economy. Despite the expected increase in workers’ remittances and higher inflows to the services account, the current account is expected to record a deficit less than 3% in the medium term.
On the fiscal front, the overall budget deficit is expected to reduce over the medium term. The improvement in the financial position of both the government and public corporations is expected to release resources to the private sector.
The balance of payments (BOP) is projected to record a surplus of US$700 million in 2010. The private sector is expected to make a substantial recovery in 2010.
An improvement in the financial operations of major public corporations including the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) is expected. The performance of public corporations would depend to some extent on the price of crude oil and fertilizer in the international markets.
Inflation is expected to be contained within single digits in 2010. On an annual average basis, inflation is projected to be about 5 to 10% by end 2010.
The public sector will need to function in line with stipulated norms. Any substantial increase in credit to the public sector could put the vulnerable recovery in the private sector at risk by exerting upward pressure on market interest rates. Also, an undue increase in the overall money supply caused by accommodating increases in credit to all sectors could endanger the projected low inflation environment in the ensuing period.
The CB stated that the move of the Department of Census and Statistics (DCS) to update the existing Colombo Consumer Price Index (CCPI) in 2010, based on the findings of the Household Income and Expenditure Survey – 2006/2007, is a welcome move. The entire publication can be found on the CB website at www.cbsl.gov.lk (NG).
Sri Lanka Stocks up 2.84-pct, Foreign Funds Beginning to Enter the Asia’s Best Performing Bourse
04th January 2010, www.lankabusinessonline.com
Sri Lankan stock closed the first day of trading for the year up 2.84 percent Monday with retail investors chasing diversified, manufacturing and banking sector stocks, brokers said.
The Colombo all share price index (ASPI) ended at 3,481.64, up 96.09 po
ints while the more liquid Milanka closed at 3,961.75, up 2.92 percent (112.37 points), according to provisional stock market data.
Turnover was 1.15 billion rupees.
Brokers said foreign funds were beginning to enter the market which had a bull run last year and ended 2009 as Asia’s best performing bourse, and the world’s second-best performing after Russia.
"The bourse is attracting new funds,” said Thakshila Hulangamuwa, vice president at stock brokering firm Asha Phillip Securities.
The flow of new money could help sustain the latest gains, he said.
John keels Holdings (JKH) was heavily traded, brokers said.
JKH closed at 179.00 rupees, up 7.50 with 1.32 million shares changing hands, brokers said.
Ceylon Tobacco Company closed at 200.00 rupees, up 15.00, Distilleries Company of Sri Lanka closed at 109.00 rupees, up 3.75 and Colombo Dockyard closed at 283.50 rupees, up 38.75.
Sampath Bank closed at 219.25 rupees, up 15.00 rupees, Seylan Bank closed at 39.00 rupees, up 2.00 and Commercial Bank of Ceylon 190.75 rupees, up 1.25.
National Development Bank ended at 209.25 rupees, up 3.25, and DFCC Bank at 170.50 rupees, up 3.50.
Sampath Bank in a stock exchange filing dismissed a media report over the weekend that it planned to go for a 4.0 billion rupee 'rights issue'.
It said it is not planning a rights issue at present.
Sri Lankan stock closed the first day of trading for the year up 2.84 percent Monday with retail investors chasing diversified, manufacturing and banking sector stocks, brokers said.
The Colombo all share price index (ASPI) ended at 3,481.64, up 96.09 po
ints while the more liquid Milanka closed at 3,961.75, up 2.92 percent (112.37 points), according to provisional stock market data.Turnover was 1.15 billion rupees.
Brokers said foreign funds were beginning to enter the market which had a bull run last year and ended 2009 as Asia’s best performing bourse, and the world’s second-best performing after Russia.
"The bourse is attracting new funds,” said Thakshila Hulangamuwa, vice president at stock brokering firm Asha Phillip Securities.
The flow of new money could help sustain the latest gains, he said.
John keels Holdings (JKH) was heavily traded, brokers said.
JKH closed at 179.00 rupees, up 7.50 with 1.32 million shares changing hands, brokers said.
Ceylon Tobacco Company closed at 200.00 rupees, up 15.00, Distilleries Company of Sri Lanka closed at 109.00 rupees, up 3.75 and Colombo Dockyard closed at 283.50 rupees, up 38.75.
Sampath Bank closed at 219.25 rupees, up 15.00 rupees, Seylan Bank closed at 39.00 rupees, up 2.00 and Commercial Bank of Ceylon 190.75 rupees, up 1.25.
National Development Bank ended at 209.25 rupees, up 3.25, and DFCC Bank at 170.50 rupees, up 3.50.
Sampath Bank in a stock exchange filing dismissed a media report over the weekend that it planned to go for a 4.0 billion rupee 'rights issue'.
It said it is not planning a rights issue at present.
Sri Lanka Hemas Buys Hydro Power Plant of 2.6MW in Nuwara Eliya District
04th January 2010, www.lankabusinessonline.com
Sri Lanka's Hemas Power said it has bought a 2.6 megawatt (MW) hydro-power plant in the Nuwara Eliya district in the central hills from Senok Mark Hydro for 198.5 million rupees.
Under the deal, Hemas Power has bought 9.92 million shares, Senok Mark Hydro’s total issued share capital, at 20.00 rupees a share, Hemas said in a stock exchange filing.
Hemas Power is a unit of Hemas Holdings which has business interest in healthcare, consumer goods, shipping and power.
Its generation unit consists of Heladhanavi, a 100 mega watt thermal power plant, and a two-mega watt mini-hydro power plant in Kandy, also in the central hills.
Sri Lanka is heavily dependent on fossil-fuels for its power needs and is trying to increase renewable energy sources like hydro-power.
In August 2009, Hemas Holdings floated its power generation business to build a 1.6 MW mini hydro plant in Kandy to move away from costly fossil-fuel thermal power.
Sri Lanka's Hemas Power said it has bought a 2.6 megawatt (MW) hydro-power plant in the Nuwara Eliya district in the central hills from Senok Mark Hydro for 198.5 million rupees.
Under the deal, Hemas Power has bought 9.92 million shares, Senok Mark Hydro’s total issued share capital, at 20.00 rupees a share, Hemas said in a stock exchange filing.
Hemas Power is a unit of Hemas Holdings which has business interest in healthcare, consumer goods, shipping and power.
Its generation unit consists of Heladhanavi, a 100 mega watt thermal power plant, and a two-mega watt mini-hydro power plant in Kandy, also in the central hills.
Sri Lanka is heavily dependent on fossil-fuels for its power needs and is trying to increase renewable energy sources like hydro-power.
In August 2009, Hemas Holdings floated its power generation business to build a 1.6 MW mini hydro plant in Kandy to move away from costly fossil-fuel thermal power.
Sri Lanka to Be Regional Air & Ocean Traffic Hub
01st January 2010, www.bloomberg.com, By Ed Johnson
Sri Lankan President Mahinda Rajapaksa issued a New Year’s message pledging to develop the country into a regional hub for ocean and air traffic and a knowledge-based society.
After defeating the Liberation Tigers of Tamil Eelam and ending the civil war, the government will be “even more focused on diverting our energies to development,” Rajapaksa said in a statement today.
“We shall build on the foundation already laid in the construction of harbors, airports, extensive road networks and the marked increase in IT literacy in Sri Lanka,” he said.
Rajapaksa’s government has vowed to reunite the country after ending the LTTE’s fight for a separate Tamil homeland in the north and east of the island nation. The end to the conflict is boosting agriculture and tourism; the Central Bank forecasts the economy will grow as much as 6 percent in 2010 after expanding 3.5 percent last year.
Rajapaksa has called a presidential election for Jan. 26.
To contact the reporter on this story: Ed Johnson in Sydney at ejohnson28@bloomberg.net.
Sri Lankan President Mahinda Rajapaksa issued a New Year’s message pledging to develop the country into a regional hub for ocean and air traffic and a knowledge-based society.
After defeating the Liberation Tigers of Tamil Eelam and ending the civil war, the government will be “even more focused on diverting our energies to development,” Rajapaksa said in a statement today.
“We shall build on the foundation already laid in the construction of harbors, airports, extensive road networks and the marked increase in IT literacy in Sri Lanka,” he said.
Rajapaksa’s government has vowed to reunite the country after ending the LTTE’s fight for a separate Tamil homeland in the north and east of the island nation. The end to the conflict is boosting agriculture and tourism; the Central Bank forecasts the economy will grow as much as 6 percent in 2010 after expanding 3.5 percent last year.
Rajapaksa has called a presidential election for Jan. 26.
To contact the reporter on this story: Ed Johnson in Sydney at ejohnson28@bloomberg.net.
Sri Lanka Central Bank’s Decision Vindicated, Inflation Rises
30th December 2009, www.bloomberg.com, By Anusha Ondaatjie
Sri Lanka’s inflation accelerated to a nine-month high in December, vindicating the central bank’s decision to pause its policy of cutting interest rates.
Consumer prices in the capital, Colombo, rose 4.8 percent from
a year earlier after gaining 2.8 percent in November, the statistics agency said on its Web site today. That was more than the median 4.2 percent forecast in a Bloomberg News survey of six economists.
Policy rates are appropriate to support growth and are likely to remain at current levels “in the near future,” Central Bank of Sri Lanka Governor Nivard Cabraal said last month. The Colombo-based bank wants to help boost growth to as much as 6 percent in 2010 from 3.5 percent this year.
“The central bank may have to start raising rates in the second quarter of next year,” Danushka Samarasinghe, research manager at Asia Securities Ltd. in Colombo, said before the report. “The growth target won’t be threatened with prices rising as consumption and investment will keep going up.”
The central bank has cut lending rates five times this year to revive growth as inflation plunged from a record high in June 2008 to a five-year low in September.
On Dec. 14, Cabraal maintained the reverse repurchase rate at 9.75 percent, a five-year low, and kept the repurchase rate at 7.5 percent.
Cabraal said in October he expects consumer prices to rise as much as 5 percent this year, and between 5 percent and 6 percent in 2010.
Faster Growth
Gross domestic product expanded 4.2 percent in the third quarter from a year earlier, the fastest pace this year, after gaining 2.1 percent in the three months to June 30, the statistics department said Dec. 18.
Sri Lanka’s exports in October declined 4.9 percent, the least this year, as orders increased for the South Asian island’s tea and rubber.
The recovery in exports from Sri Lanka, which makes garments for Marks & Spencer Group Plc and Gap Inc., may falter as the European Union plans to withdraw trade concessions on alleged human rights violations by President Mahinda Rajapaksa’s government.
Sri Lanka will maintain fiscal and monetary stimulus through 2010 to bolster the economy, Deputy Finance Minister Sarath Amunugama said Nov. 9.
The International Monetary Fund, which granted Sri Lanka a $2.6 billion loan in July to rebuild roads and schools, expects the island’s economic growth and credit demand to pick up from this year.
To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net
Sri Lanka’s inflation accelerated to a nine-month high in December, vindicating the central bank’s decision to pause its policy of cutting interest rates.
Consumer prices in the capital, Colombo, rose 4.8 percent from
a year earlier after gaining 2.8 percent in November, the statistics agency said on its Web site today. That was more than the median 4.2 percent forecast in a Bloomberg News survey of six economists.Policy rates are appropriate to support growth and are likely to remain at current levels “in the near future,” Central Bank of Sri Lanka Governor Nivard Cabraal said last month. The Colombo-based bank wants to help boost growth to as much as 6 percent in 2010 from 3.5 percent this year.
“The central bank may have to start raising rates in the second quarter of next year,” Danushka Samarasinghe, research manager at Asia Securities Ltd. in Colombo, said before the report. “The growth target won’t be threatened with prices rising as consumption and investment will keep going up.”
The central bank has cut lending rates five times this year to revive growth as inflation plunged from a record high in June 2008 to a five-year low in September.
On Dec. 14, Cabraal maintained the reverse repurchase rate at 9.75 percent, a five-year low, and kept the repurchase rate at 7.5 percent.
Cabraal said in October he expects consumer prices to rise as much as 5 percent this year, and between 5 percent and 6 percent in 2010.
Faster Growth
Gross domestic product expanded 4.2 percent in the third quarter from a year earlier, the fastest pace this year, after gaining 2.1 percent in the three months to June 30, the statistics department said Dec. 18.
Sri Lanka’s exports in October declined 4.9 percent, the least this year, as orders increased for the South Asian island’s tea and rubber.
The recovery in exports from Sri Lanka, which makes garments for Marks & Spencer Group Plc and Gap Inc., may falter as the European Union plans to withdraw trade concessions on alleged human rights violations by President Mahinda Rajapaksa’s government.
Sri Lanka will maintain fiscal and monetary stimulus through 2010 to bolster the economy, Deputy Finance Minister Sarath Amunugama said Nov. 9.
The International Monetary Fund, which granted Sri Lanka a $2.6 billion loan in July to rebuild roads and schools, expects the island’s economic growth and credit demand to pick up from this year.
To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net
Sri Lanka Stocks, Asia’s Best Performers, On High
30th December 2009, www.bloomberg.com, By Anusha Ondaatjie
Sri Lanka’s stocks, Asia’s best- performing in 2009, may extend gains as the end of a 26-year civil war and low interest rates help boost economic growth, the island’s biggest fund manager said.
The Colombo All-Share Index, which rose 0.9 percent to a record of 3,385.55 today, may climb to 3,50
0 in two months, said Bimanee Meepagala, an analyst at Eagle NDB Fund Management Co., the nation’s biggest non-state fund. The gauge has jumped 125 percent this year, the world’s second-best gainer after Russia.
“The market was re-rated on post-war optimism,” said Meepagala, who manages the equivalent of $236 million. “Strong economic growth and corporate earnings will help the market continue its upward momentum.”
Sri Lanka’s $41 billion economy is expected to grow as much as 6 percent next year from an estimated 3.5 percent expansion in 2009, the central bank said in October. President Mahinda Rajapaksa quashed an uprising by Tamil separatists in May and the island has drawn the interest from investors including Templeton Asset Management Ltd.’s Mark Mobius and Jim Rogers, author of books including “Adventure Capitalist.”
The central bank has cut lending rates five times this year to a five-year low as inflation plunged from a record high in June 2008. Rajapaksa has called a presidential election for Jan. 26, two years before his mandate expires, as he seeks to capitalize on the end of the war with the Liberation Tigers of Tamil Eelam in May.
Economic Growth
Gross domestic product expanded 4.2 percent in the third quarter from a year earlier, the fastest pace in 2009, after gaining 2.1 percent in the three months to June 30, the statistics department said Dec. 18. Sri Lanka’s exports in October declined 4.9 percent, the least this year, as orders increased for the South Asian island’s tea and rubber. Tourist arrivals in Sri Lanka have increased since June.
“There are still some big macroeconomic challenges but what we’ve seen at the end of the civil war was a fundamental shift in the circumstances,” said Peter Taylor, a fund manager at Aberdeen Asset Management Ltd. in Singapore, which overseas about $25 billion in Asian assets. “We still find some good value in the banking sector.”
Aberdeen holds shares of Commercial Bank of Ceylon Plc , the country’s biggest non-state lender, and John Keells Holdings Plc, which has the largest weighting on the benchmark index.
Selling by Raj Rajaratnam, the billionaire Galleon Group LLC founder accused of insider trading, won’t cause an “overhang” on the Colombo Stock Exchange “as there are plenty of buyers in the market,” Eagle NDB’s Meepagala said.
Mobius, Rogers
Mobius, chairman of Templeton Asset, said last month he’s seeking private equity or strategic investments in Sri Lanka after the end of the war. Rogers also said in August the nation’s stocks may offer better returns as the government is expected to spend more on infrastructure and agriculture.
The International Monetary Fund, which granted Sri Lanka a $2.6 billion loan in July, expects the island’s economic growth and credit demand to pick up.
John Keells Holdings, also Sri Lanka’s biggest diversified company, and Aitken Spence Plc, the island’s largest operator of resorts, are also likely to post gains in earnings next year, Meepagala said.
To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net
Sri Lanka’s stocks, Asia’s best- performing in 2009, may extend gains as the end of a 26-year civil war and low interest rates help boost economic growth, the island’s biggest fund manager said.
The Colombo All-Share Index, which rose 0.9 percent to a record of 3,385.55 today, may climb to 3,50
0 in two months, said Bimanee Meepagala, an analyst at Eagle NDB Fund Management Co., the nation’s biggest non-state fund. The gauge has jumped 125 percent this year, the world’s second-best gainer after Russia.“The market was re-rated on post-war optimism,” said Meepagala, who manages the equivalent of $236 million. “Strong economic growth and corporate earnings will help the market continue its upward momentum.”
Sri Lanka’s $41 billion economy is expected to grow as much as 6 percent next year from an estimated 3.5 percent expansion in 2009, the central bank said in October. President Mahinda Rajapaksa quashed an uprising by Tamil separatists in May and the island has drawn the interest from investors including Templeton Asset Management Ltd.’s Mark Mobius and Jim Rogers, author of books including “Adventure Capitalist.”
The central bank has cut lending rates five times this year to a five-year low as inflation plunged from a record high in June 2008. Rajapaksa has called a presidential election for Jan. 26, two years before his mandate expires, as he seeks to capitalize on the end of the war with the Liberation Tigers of Tamil Eelam in May.
Economic Growth
Gross domestic product expanded 4.2 percent in the third quarter from a year earlier, the fastest pace in 2009, after gaining 2.1 percent in the three months to June 30, the statistics department said Dec. 18. Sri Lanka’s exports in October declined 4.9 percent, the least this year, as orders increased for the South Asian island’s tea and rubber. Tourist arrivals in Sri Lanka have increased since June.
“There are still some big macroeconomic challenges but what we’ve seen at the end of the civil war was a fundamental shift in the circumstances,” said Peter Taylor, a fund manager at Aberdeen Asset Management Ltd. in Singapore, which overseas about $25 billion in Asian assets. “We still find some good value in the banking sector.”
Aberdeen holds shares of Commercial Bank of Ceylon Plc , the country’s biggest non-state lender, and John Keells Holdings Plc, which has the largest weighting on the benchmark index.
Selling by Raj Rajaratnam, the billionaire Galleon Group LLC founder accused of insider trading, won’t cause an “overhang” on the Colombo Stock Exchange “as there are plenty of buyers in the market,” Eagle NDB’s Meepagala said.
Mobius, Rogers
Mobius, chairman of Templeton Asset, said last month he’s seeking private equity or strategic investments in Sri Lanka after the end of the war. Rogers also said in August the nation’s stocks may offer better returns as the government is expected to spend more on infrastructure and agriculture.
The International Monetary Fund, which granted Sri Lanka a $2.6 billion loan in July, expects the island’s economic growth and credit demand to pick up.
John Keells Holdings, also Sri Lanka’s biggest diversified company, and Aitken Spence Plc, the island’s largest operator of resorts, are also likely to post gains in earnings next year, Meepagala said.
To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net
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