30th March 2010, www.bloomberg.com, By Anusha Ondaatjie
Sri Lanka’s economy expanded at the fastest pace in five quarters as the government stepped up spending on new roads and ports after the end of a quarter- century of civil war in the country.
Gross domestic product rose 6.2 percent in the three months ended Dec. 31 from a year earlier after gaining 4.2 percent in the previous quarter, the statistics department said in a statement in Colombo today.
President Mahinda Rajapaksa, who was reelected for a six- year term in January after defeating the Tamil Tiger rebels in May, has pledged to spend $1 billion on ports, roads and power plants in 2010. Reconstruction in the $41 billion South Asian economy is boosting profit in companies including Tokyo Cement Co. Lanka Plc and Central Industries Plc.
“The infrastructure investments will have a spillover effect in the economy,” Saminda Weerasinghe, research manager at Acuity Stockbrokers Pvt. in Colombo, said before the report. “It will help even faster growth in the second half of 2010.”
Central Bank of Sri Lanka Governor Nivard Cabraal on March 18 maintained benchmark interest rates at a five-year low to boost consumer demand and drive growth to as much as 7 percent in 2010. Sri Lanka’s reverse repurchase rate is 9.75 percent and the repurchase rate is 7.5 percent.
Low Inflation
Cabraal can afford to keep borrowing costs low because of tame inflation in the country. Consumer prices in the capital, Colombo, rose 6.9 percent in February from a year earlier, almost half the average inflation rate between 2004 and 2009.
Commercial bank loans rose to 1.196 trillion rupees ($10.5 billion) in January from 1.195 trillion in December, the fourth gain in five months, according to the central bank, an indicator of growing consumer spending.
Low interest rates are also critical to support domestic demand as Sri Lanka’s exports may slow in the coming months after the European Union on Feb. 15 said it will suspend preferential trade benefits to the island nation because of human rights “shortcomings” during the war.
Sri Lankan exports rose 6.4 percent in December to $723.4 million after a yearlong decline.
Peace has prompted foreign companies, including HSBC Holdings Plc and Emirates Telecommunications Corp., to start operations in the island’s northern and eastern areas that were earlier under the control of the separatist Liberation Tigers of Tamil Eelam.
HSBC Holdings, Europe’s biggest bank, in February opened the first branch by any foreign bank in Sri Lanka’s northern Jaffna peninsula.
Start Operations
Etisalat, the United Arab Emirates’ biggest phone company, started services in Jaffna on Feb. 26 after acquiring Tigo Pvt., the Sri Lankan unit of Millicom International Cellular SA, for $155 million in October.
Demand for building roads and ports after the end of the war helped lift sales at Tokyo Cement by 79 percent in the three months ended Dec. 31.
Sri Lanka plans to invite overseas and local companies this month to set up business in a new $550 million tax-free port zone in the island’s south. The country is also seeking foreign investments to help build a new terminal in Colombo port, Sri Lanka Ports Authority Chairman Priyath Wickrarma said March 5.
To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net
30 March 2010
Sri Lanka Distilleries Invests in 4MW Hydro Power Plant
30th March 2010, www.lankabusinessonline.com
Sri Lanka's D
istilleries Company, said it was spending 750 million rupees to by into a 4 MegaWatt hydro power plant in a tea plantation which is an associate firm in its group. Bogo Power Pvt Ltd, will be built on Kirkoswals estate in the Bogowantalawa area in Sri Lanka's central hill region.
Distilleries said the firm had already signed a standardized power purchase agreement with state-run Ceylon Electricity Board to sell its output.
Distilleries is part of the Stassen's group controlled by businessmen Harry Jayewardene.
Sri Lanka's D
istilleries Company, said it was spending 750 million rupees to by into a 4 MegaWatt hydro power plant in a tea plantation which is an associate firm in its group. Bogo Power Pvt Ltd, will be built on Kirkoswals estate in the Bogowantalawa area in Sri Lanka's central hill region.Distilleries said the firm had already signed a standardized power purchase agreement with state-run Ceylon Electricity Board to sell its output.
Distilleries is part of the Stassen's group controlled by businessmen Harry Jayewardene.
Rubber Prices Reach an All Time High at the Auction
30th March 2010, www.dailynews.lk
A kilogram of rubber fetc
hed Rs 363.25 at the auction. Sri Lanka is the main exporter of rubber to many countries including China and India. They are the biggest manufacturers of tyres in the region.
There has been less rubber production as many of the countries faced a dry weather.
Even the largest rubber producer in the region, Thailand is also affected due to the prevailing dry weather, Colombo Rubber Traders Association Chairman M.S. Rahim said.
'Due to the dry weather, production dropped drastically.
There will be a drop in demand in the future if this weather continues. Most of the rubber manufacturing countries have faced the same situation, Rahim said.
He said last year out of the total rubber production in the country, over 60 percent was used for the local industry. The industry expands to a land extent of 122,000 hectares in the country.
The total exports of natural rubber in the country amounted to 55,990 metric tons last year.
Sri Lanka exports only white crepe rubber which has a good demand in the world market.
A kilogram of rubber fetc
hed Rs 363.25 at the auction. Sri Lanka is the main exporter of rubber to many countries including China and India. They are the biggest manufacturers of tyres in the region.There has been less rubber production as many of the countries faced a dry weather.
Even the largest rubber producer in the region, Thailand is also affected due to the prevailing dry weather, Colombo Rubber Traders Association Chairman M.S. Rahim said.
'Due to the dry weather, production dropped drastically.
There will be a drop in demand in the future if this weather continues. Most of the rubber manufacturing countries have faced the same situation, Rahim said.
He said last year out of the total rubber production in the country, over 60 percent was used for the local industry. The industry expands to a land extent of 122,000 hectares in the country.
The total exports of natural rubber in the country amounted to 55,990 metric tons last year.
Sri Lanka exports only white crepe rubber which has a good demand in the world market.
3 Star City Hotel in Jaffna, Sri Lanka. Hotel Nallur, a 400mn Investment by MBSL
30th March 2010, www.dailynews.lk
The Merchant Bank
of Sri Lanka PLC (MBSL) has decided to invest in the leisure sector in Jaffna, with the tourism boom there. MBSL is a premier investor in Sri Lanka. They have decided to improve infrastructure facilities in Jaffna with an investment of Rs 400 million on Hotel Nallur in Jaffna.
The venture into the hotel sector b
y MBSL will set standards in the tourism industry and provide adequate facilities, MBSL Chairman Janaka Ratnayaka told Daily News Business.
The hotel will be constructed on a considerable plot of land expected to be completed as early as possible to address the needs of influx of tourists to the Jaffna peninsula. “The intended investors on tourism infrastructure will take sometime to establish on their investments.
MBSL expects to finish the construction of Hotel Nallur by February 2011,” Ratnayake said.
The Hotel Nallur will be a BOI approved three star city hotel with 80 luxury, deluxe rooms and suites.
It is expected to go for an Initial Public Offering in the near future. The intention of the IPO will be to invite public for the investment that MBSL has made. Hotel Nallur will create 150 job opportunities from the construction till the completion and it will be equipped with a swimming pool and vegetarian and non-vegetarian restaurants.
The Merchant Bank
of Sri Lanka PLC (MBSL) has decided to invest in the leisure sector in Jaffna, with the tourism boom there. MBSL is a premier investor in Sri Lanka. They have decided to improve infrastructure facilities in Jaffna with an investment of Rs 400 million on Hotel Nallur in Jaffna.The venture into the hotel sector b
y MBSL will set standards in the tourism industry and provide adequate facilities, MBSL Chairman Janaka Ratnayaka told Daily News Business.The hotel will be constructed on a considerable plot of land expected to be completed as early as possible to address the needs of influx of tourists to the Jaffna peninsula. “The intended investors on tourism infrastructure will take sometime to establish on their investments.
MBSL expects to finish the construction of Hotel Nallur by February 2011,” Ratnayake said.
The Hotel Nallur will be a BOI approved three star city hotel with 80 luxury, deluxe rooms and suites.
It is expected to go for an Initial Public Offering in the near future. The intention of the IPO will be to invite public for the investment that MBSL has made. Hotel Nallur will create 150 job opportunities from the construction till the completion and it will be equipped with a swimming pool and vegetarian and non-vegetarian restaurants.
Sri Lanka's Mattala International Airport to be Ready in 2012. Hambantota Airport will be an Alternative to BIA, Colombo
30th March 2010, www.news.lk
Authorities expect
the first aircraft to land in the Mattala international airport in the year 2012, Ranjith de Silva, Secretary to the Ministry of Ports and Civil Aviation told www.news.lk today.
According to the Ministry of Ports and Civil Aviation, 8,000 acres have been set apart for the country's second international airport and preliminary work on the 3.5 kilometre runway is already underway.
He said plans are afoot to launch training programmes for youth who will be the potential employees of the airport. Once completed, this project will create 2,000 direct and 5,000 indirect employment opportunities.
The new airport will be a boon to the local aviation industry while being a catalyst for the economic development of the southern province through the enabling of international trade, tourism, vocational training and employment.
The new airport will be geared to support both international and domestic travel, air-sea cargo transshipment in conjunction with the Hambanthota sea port and will be the alternative to BIA. It will be ready for operations in 2012.
The project will be carried out under two stages of development.
'Stage I - Initial Development' will include Basic Aerodrome Facilities, Runway, Apron, Taxi way, Passenger and Cargo Terminals.
It will also have Access roads, accommodation for officials, fuel farm, sewerage treatment plant, water supply facilities, meteorological building, fire building, catering facility and car park.
'Stage II - Second Stage Development' will include a full length parallel Taxi way, a flying school, an airport hotel and recreational facilities.
Hambantota Magampura Port (Harbour) on Google Maps
Authorities expect
the first aircraft to land in the Mattala international airport in the year 2012, Ranjith de Silva, Secretary to the Ministry of Ports and Civil Aviation told www.news.lk today.According to the Ministry of Ports and Civil Aviation, 8,000 acres have been set apart for the country's second international airport and preliminary work on the 3.5 kilometre runway is already underway.
He said plans are afoot to launch training programmes for youth who will be the potential employees of the airport. Once completed, this project will create 2,000 direct and 5,000 indirect employment opportunities.
The new airport will be a boon to the local aviation industry while being a catalyst for the economic development of the southern province through the enabling of international trade, tourism, vocational training and employment.
The new airport will be geared to support both international and domestic travel, air-sea cargo transshipment in conjunction with the Hambanthota sea port and will be the alternative to BIA. It will be ready for operations in 2012.
The project will be carried out under two stages of development.
'Stage I - Initial Development' will include Basic Aerodrome Facilities, Runway, Apron, Taxi way, Passenger and Cargo Terminals.
It will also have Access roads, accommodation for officials, fuel farm, sewerage treatment plant, water supply facilities, meteorological building, fire building, catering facility and car park.
'Stage II - Second Stage Development' will include a full length parallel Taxi way, a flying school, an airport hotel and recreational facilities.
Hambantota Magampura Port (Harbour) on Google Maps
29 March 2010
Sri Lanka’s Tourism Industry to Invest over Rs 10bn as 2.5mn Visitors are Expected by 2016 Up from 447,890 in 2009
28th March 2010, www.nation.lk, By Santhush Fernando
Sri Lanka’s bullish tourism i
ndustry players are to invest over Rs. 10 bn. within the next three years into the industry which is earmarked as the most buoyant thrust industry the country is to see during the next few years.
One of the country’s largest travel and leisure sector players- Aitken Spence will invest Rs. 2.5 bn while the next two biggest hotel chains- John Keells Holdings (JKH) and Jetwings Group are planning to invest nearly Rs. 3.6 bn each.
Managing Director of Aitken Spence Hotels, Malin Hapugoda, told The Nation Economist that Aitken Spence Hotels Holdings PLC declared a rights issue to raise nearly Rs. 2,500 mn to finance new projects/investments to maintain the Company’s position as a leader in the hotel industry. “We will heavily invest in tourism as our hotels would contribute more than what they contributed in the past. We are looking at strategic ventures at strategic locations. Out of Rs. 2.5 bn raised, Rs. 625 will be set apart for hotel development in the North and East under which 108 acres in Nilaveli has been set apart for mixed development project complete with luxury chalets and apartments,” he said.
“We are also looking at converting t
he 64-roomed Neptune Hotel, Beruwala, into a specialised Ayurveda and Wellness Resort and to brand it as ‘Heritance Mahagedera’ at a cost of Rs. 375mn. Furthermore, a Rs. 625mn joint venture with the international resort chain - Sixth Senses, to construct a boutique resort in the south west coast is also on the cards,” he added.
“The remaining Rs. 625mn is set apart for investments in India, one of which is the Heritance Cochin project, which with its 57 luxury floating villas will commence operations by November 2011 in the backwaters of Kerala,” Hapugoda said.
“Although Aitken Spence owns and manages nearly 2,300 rooms, only 864 are in Sri Lanka, another 375 are in India, 440 in Oman and another 600 in Maldives, in a bid to reduce the risk that had been posed to the country during the three decade old war. After the end of the war, its focal destination would now be Sri Lanka,” he added.
Speaking to The Nation Econo
mist, head of Cinnamon Hotels and Business Development of the John Keells Holdings (JKH) Roshan Gurusinghe said that the Group was looking at extensive expansion in the hotel industry. “There is a lot in the pipeline. The South Wing of the Cinnamon Grand Hotel, comprising of 254 rooms, will be re-furbished during the next few months at a cost of Rs. 400mn,” Gurusinghe said.
In view of the substantial plans for expansion, John Keells Hotels (KHL) announced a rights issue to raise roughly Rs. 3.64 bn. The proceeds of the Rights Issue will be utilised to fund the refurbishment of hotels in Sri Lanka as well as for new hotel projects and for the acquisition of land for new resorts.
The current portfolio of KHL PLC, consists of seven resorts in Sri Lanka (772 rooms), four resorts in Maldives (440 rooms) and four prime properties in Sri Lanka, in which KHL plans to build 410 more rooms along the South and East coast within the next two years, with the proceeds
of the rights issue. Refurbishing of 133 roomed Bentota Beach Resort and re-branding as “Cinnamon Beach Bentota” and renovating and re-branding of 115-roomed Coral Gardens, Hikkaduwa, will cost Rs. 800mn each. Constructing of 100-roomed new resort in Ahungalla is to cost Rs. 1.6bn, while another would be spent on building a 190-roomed resort in Beruwala. Re-branding of Club Oceanic in Trincomalee as 56-roomed Chaaya Blue at a consideration of Rs. 400mn and adding of a new 120-roomed hotel in East coast would cost Rs. 1.3bn respectively.
The Country’s third largest resort chain- Jetwings is also anticipating to aggressively expand but when compared with its rivals is unlikely to go for cash calls. “There are many other ways of raising the necessary funds than going for Initial Public Offerings (IPOs) or rights issues. We too have plans of expanding,” Managing Director of Jetwing Hotels Hiran Cooray said.
“The renovating of Jetwings Blue Oceanic and renaming it as Jetwings Blue will cost us nearly Rs. 800 mn while upgrading of Seashells also in Negombo into Jetwing Sea will cost Rs. 400mn. We are hoping to build two resorts in Trincomalee in Kuchchuveli and Uppuveli, respectively, for which we will spend close to Rs. 800 each,” he added.
“We will also rebuild Yala Saf
ari Game Lodge, which was destroyed by the 2004 Tsunami, bearing a cost of Rs. 400mn, once we get the required land from the government. Finally, we will spend another Rs. 500 to 600 for our 80-room project in Balapitiya,” Cooray added.
Meanwhile, a tourism sector analyst said that nearly 1,000 rooms are earmarked by Small and Medium Enterprises (SMEs) to undergo renovation, in an exercise that will cost almost Rs. 3bn. “So altogether over Rs. 10 bn worth of investments will flood the industry,” he said.
The government is hoping to attract 2.5 million visitors by 2016, up from 447,890 in 2009, the final year of the civil strife, while it is anticipated that Rs. 230 bn of tourist revenue would flow in annually by 2016, up from Rs. 40.25 bn earned in 2008.
Sri Lanka’s bullish tourism i
ndustry players are to invest over Rs. 10 bn. within the next three years into the industry which is earmarked as the most buoyant thrust industry the country is to see during the next few years.One of the country’s largest travel and leisure sector players- Aitken Spence will invest Rs. 2.5 bn while the next two biggest hotel chains- John Keells Holdings (JKH) and Jetwings Group are planning to invest nearly Rs. 3.6 bn each.
Managing Director of Aitken Spence Hotels, Malin Hapugoda, told The Nation Economist that Aitken Spence Hotels Holdings PLC declared a rights issue to raise nearly Rs. 2,500 mn to finance new projects/investments to maintain the Company’s position as a leader in the hotel industry. “We will heavily invest in tourism as our hotels would contribute more than what they contributed in the past. We are looking at strategic ventures at strategic locations. Out of Rs. 2.5 bn raised, Rs. 625 will be set apart for hotel development in the North and East under which 108 acres in Nilaveli has been set apart for mixed development project complete with luxury chalets and apartments,” he said.
“We are also looking at converting t
he 64-roomed Neptune Hotel, Beruwala, into a specialised Ayurveda and Wellness Resort and to brand it as ‘Heritance Mahagedera’ at a cost of Rs. 375mn. Furthermore, a Rs. 625mn joint venture with the international resort chain - Sixth Senses, to construct a boutique resort in the south west coast is also on the cards,” he added.“The remaining Rs. 625mn is set apart for investments in India, one of which is the Heritance Cochin project, which with its 57 luxury floating villas will commence operations by November 2011 in the backwaters of Kerala,” Hapugoda said.
“Although Aitken Spence owns and manages nearly 2,300 rooms, only 864 are in Sri Lanka, another 375 are in India, 440 in Oman and another 600 in Maldives, in a bid to reduce the risk that had been posed to the country during the three decade old war. After the end of the war, its focal destination would now be Sri Lanka,” he added.
Speaking to The Nation Econo
mist, head of Cinnamon Hotels and Business Development of the John Keells Holdings (JKH) Roshan Gurusinghe said that the Group was looking at extensive expansion in the hotel industry. “There is a lot in the pipeline. The South Wing of the Cinnamon Grand Hotel, comprising of 254 rooms, will be re-furbished during the next few months at a cost of Rs. 400mn,” Gurusinghe said.In view of the substantial plans for expansion, John Keells Hotels (KHL) announced a rights issue to raise roughly Rs. 3.64 bn. The proceeds of the Rights Issue will be utilised to fund the refurbishment of hotels in Sri Lanka as well as for new hotel projects and for the acquisition of land for new resorts.
The current portfolio of KHL PLC, consists of seven resorts in Sri Lanka (772 rooms), four resorts in Maldives (440 rooms) and four prime properties in Sri Lanka, in which KHL plans to build 410 more rooms along the South and East coast within the next two years, with the proceeds
of the rights issue. Refurbishing of 133 roomed Bentota Beach Resort and re-branding as “Cinnamon Beach Bentota” and renovating and re-branding of 115-roomed Coral Gardens, Hikkaduwa, will cost Rs. 800mn each. Constructing of 100-roomed new resort in Ahungalla is to cost Rs. 1.6bn, while another would be spent on building a 190-roomed resort in Beruwala. Re-branding of Club Oceanic in Trincomalee as 56-roomed Chaaya Blue at a consideration of Rs. 400mn and adding of a new 120-roomed hotel in East coast would cost Rs. 1.3bn respectively.The Country’s third largest resort chain- Jetwings is also anticipating to aggressively expand but when compared with its rivals is unlikely to go for cash calls. “There are many other ways of raising the necessary funds than going for Initial Public Offerings (IPOs) or rights issues. We too have plans of expanding,” Managing Director of Jetwing Hotels Hiran Cooray said.
“The renovating of Jetwings Blue Oceanic and renaming it as Jetwings Blue will cost us nearly Rs. 800 mn while upgrading of Seashells also in Negombo into Jetwing Sea will cost Rs. 400mn. We are hoping to build two resorts in Trincomalee in Kuchchuveli and Uppuveli, respectively, for which we will spend close to Rs. 800 each,” he added.
“We will also rebuild Yala Saf
ari Game Lodge, which was destroyed by the 2004 Tsunami, bearing a cost of Rs. 400mn, once we get the required land from the government. Finally, we will spend another Rs. 500 to 600 for our 80-room project in Balapitiya,” Cooray added.Meanwhile, a tourism sector analyst said that nearly 1,000 rooms are earmarked by Small and Medium Enterprises (SMEs) to undergo renovation, in an exercise that will cost almost Rs. 3bn. “So altogether over Rs. 10 bn worth of investments will flood the industry,” he said.
The government is hoping to attract 2.5 million visitors by 2016, up from 447,890 in 2009, the final year of the civil strife, while it is anticipated that Rs. 230 bn of tourist revenue would flow in annually by 2016, up from Rs. 40.25 bn earned in 2008.
Serendib Leisure Group's Hotel Dolphin to be Upgraded to 4 Star. Hotel at Waikkal, Sri Lanka to Renovate 50 Chalet Rooms
28th March 2010, www.nation.lk, By Azhar Razak
Sri Lanka’s Club Hotel Dolphin i
n Waikkal, a unit of the Serendib Leisure Group is to be upgraded into a four star hotel once the planned US $5 million refurbishment to a part of its hotel is completed. The hotel, which is now a three-star, is to renovate 50 of the hotel’s chalet rooms (cottages) during the period from May 1 to August 31, a senior official of the hotel said.
“All the cottage rooms as well as certain public areas of the hotel will be closed during renovation. However,
the hotel would still operate the rest of the 96 deluxe rooms during the period,” Suranjith de Fonseka, Head of Sales and Marketing at Serendib Leisure Management Ltd. told The Nation Economist.
He said that the cottages once refurbished would be more spacious and equipped with an in-room safe locker facility.
Described as the resort for the young at heart, the cottages of the hotel are set in a quieter garden area with direct access to the beach and closer to the pool. Club Hotel Dolphin has two outdoor freshwater swimming pools that include the children’s pool.
The three hotels Club Hotel Dolphin, Hotel Serendib and Hotel Sigiriya that form the hotel sector of the Hemas Group falls under the management of Serendib Leisure Management Ltd., a fully owned subsidiary of Serendib Hotels Ltd.
Hemas Holdings is one of the leading quoted companies in Sri Lanka, engaged in a diverse set of business activities, focused on healthcare, personal care, leisure, transportation and strategic investments.
Sri Lanka’s Club Hotel Dolphin i
n Waikkal, a unit of the Serendib Leisure Group is to be upgraded into a four star hotel once the planned US $5 million refurbishment to a part of its hotel is completed. The hotel, which is now a three-star, is to renovate 50 of the hotel’s chalet rooms (cottages) during the period from May 1 to August 31, a senior official of the hotel said.“All the cottage rooms as well as certain public areas of the hotel will be closed during renovation. However,
the hotel would still operate the rest of the 96 deluxe rooms during the period,” Suranjith de Fonseka, Head of Sales and Marketing at Serendib Leisure Management Ltd. told The Nation Economist.He said that the cottages once refurbished would be more spacious and equipped with an in-room safe locker facility.
Described as the resort for the young at heart, the cottages of the hotel are set in a quieter garden area with direct access to the beach and closer to the pool. Club Hotel Dolphin has two outdoor freshwater swimming pools that include the children’s pool.
The three hotels Club Hotel Dolphin, Hotel Serendib and Hotel Sigiriya that form the hotel sector of the Hemas Group falls under the management of Serendib Leisure Management Ltd., a fully owned subsidiary of Serendib Hotels Ltd.
Hemas Holdings is one of the leading quoted companies in Sri Lanka, engaged in a diverse set of business activities, focused on healthcare, personal care, leisure, transportation and strategic investments.
Subscribe to:
Posts (Atom)