Tuesday 25 March 2014

Missing audited accounts for Sri Lanka EPF is a 'national tragedy': legislator

Mar 25, 2014 (LBO) - The lack of audited accounts since 2011 for Sri Lanka's Employees Provident Fund since 2011 is a "national tragedy" which "trampling of the rights of people," a legislator has charged.

Harsha de Silva an opposition United National Party legislator has been pressing for the accounts for the fund, the country's largest retirement fund to be tabled in parliament.

Though the money belongs to ordinary citizens who are not state-workers it is administered and managed by the labour ministry and Central Bank.

"The more than trillion rupees of EPF money does not belong to the government," de Silva said in a statement.

"Nor does it belong to the Central Bank. The money belongs to the hard working employees of the private sector.

"It is the duty and responsibility of the various agencies of the government to submit to Parliament the audited accounts of its activity.

"A two year delay, particularly when multiple allegations of fraud have been leveled at its managers, is totally and absolutely unacceptable. It is indeed a national tragedy and trampling of the rights of people."

De Silva said an examination by the parliament's Committee on Public Accounts of EPF managers was "abruptly adjourned" and has not been recommenced despite multiple reminders.

He said the ministry of labour had not submitted 2011 audited account by a promised deadline of March 2014 and parliament has ended sitting for the month,.

"Even though these accounts should have been presented in 2012 various excuses have been forwarded every so often for the last two years to avoid tabling the most important accountability documents of the Fund said to be the largest in the region," he said.

He said the fund was managed by the state with no worker representation. Allegations over questionable stock market investments have also not so far been probed, he said.

Sri Lankan stocks at 2-week high on large caps

(Reuters) - Sri Lankan stocks hit their two-weeks high Tuesday led by large-cap shares, but trading volumes continued to be low ahead of an impending U.N. resolution on the country's human rights record.

The main stock index closed up 0.52 percent, or 30.55 points, at 5,952.78 - its highest since March 10.

Tuesday's turnover was 416.4 million rupees ($3.19 million), less than half of this year's daily average of 861.1 million rupees.

"Most investors are waiting to assess the impact of the resolution," a stockbroker said on condition of anonymity.

Sri Lanka's 2.47 trillion rupee bourse saw a net foreign outflow of 32.4 million rupees worth shares, extending the net selling so far this year to 4.13 billion rupees.

It had recorded a 22.88 billion rupee inflow in 2013.

Ceylon Tobacco Co Plc's stock jumped 6.4 percent to 1,097.90 rupees, with only 673 shares traded.

The prospect of a resolution that could hurt the country's economy has dented investor sentiment, analysts said.

Several potential buyers of risky assets are awaiting a clear direction.

Sri Lanka has questioned the independence of the United Nations human rights office after the United States asked it to investigate violations by the government related to the civil war. A vote on the resolution is scheduled for later this week. 

($1 = 130.6500 Sri Lanka Rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Joyjeet Das)

Sri Lanka stocks close up 0.5-pct

Mar 25, 2014 (LBO) - Sri Lanka's stocks close 0.52 percent higher with tobacco stocks reversing the losses despite net foreign outflow, brokers said.

The Colombo benchmark All Share Price Index closed 30.55 points higher at 5,952.78 up 0.52 percent. The S&P SL20 closed 9.58 points higher at 3,256.49, up 0.30 percent.

Turnover was 416.42 million rupees, up from 197.93 million rupees a day earlier with 105 stocks close positive against 75 negative.

John Keells Holdings closed 1.50 rupees lower at 218.00 rupees with market transactions of 145.22 million rupees contributing to 35 percent of the daily turnover.

Foreign investors bought 188.11 million rupees worth shares while selling 220.55 million rupees of shares.

Janashakthi Insurance closed 50 cents higher at 14.50 rupees and Union Bank of Colombo closed flat at 18.70 rupees, attracting most number of trades during the day.

Ceylon Tobacco Company closed 66.00 rupees higher at 1,097.90 rupees and Carson Cumberbatch closed 18.60 rupees higher at 369.60 rupees, contributing most to the index gain.

NDB Capital Holdings closed 20.00 rupees higher at 530.00 rupees and Ceylinco Insurance closed 129.10 rupees lower at 1,370.70 rupees.

Trans Asia Hotels closed 2.90 rupees higher at 80.70 rupees and Aitken Spence Hotel Holdings closed 10 cents higher at 71.00 rupees.

JKH’s W0022 warrants closed 30 cents higher at 63.00 rupees and its W0023 warrants closed 1.50 rupees higher at 67.00 rupees.

Nestle Lanka closed 25.10 rupees lower at 1,963.90 rupees.

Sri Lanka bourse safer and more robust after ISO certification

Mar 25, 2014 (LBO) - Colombo Stock Exchange has been certified by the International Standard Organization (ISO) and the process has made its operations secure and more robust, the bourse said.

"Through these ISO Certifications the CSE gives maximum assurance to stakeholders that their information is protected by the Exchange in the most comprehensive manner," the bourse said in a statement.

ISO had certified the CSE on the standard for Information Security ( ISO 27001), Business Continuity (ISO 22301) covering Trading, Registry and Depository services, and IT Service Management (ISO 20000).

The certifications were issued in February 2014 after assessment and validation by TUV Nord, Germany.

"Since implementation of the project, CSE has improved its information security, business continuity and IT service management significantly," the bourse said.

"As the ISO certification process provides a detailed understanding of the entire organisation and its processes, opportunities for improvement have been identified and implemented.

"It has also helped to raise information security and business continuity awareness and readiness among employees of CSE and has led to the efficient management of risks related to these areas."

CSE chief executive Rajeeva Bandaranaike said the certification demonstrated the exchange's commitment to manage risks and improve security.

Chandrakanth Jayasinghe, Chief Information Officer said infrastructure has been upgraded to improve resilience and uninterrupted delivery of IT services.

DFCC, NDB ink deal to explore merger

Ceylon FT: The board of directors of DFCC Bank and NDB Bank have signed an MoU to explore the possibility of merging.

In a joint stock exchange filing, both banks said the MoU was the first step in exploring the possibility of amalgamating the two banks and that no 'definite decision on any aspect of such consolidation' had been taken at this stage.

The directors of both banks have ensured the public, shareholders and employees that they would be informed of the progress as and when necessary. 

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Bimputh Finance in rights issue

Bimputh Finance will issue shares by way of a Rights Issue based on the Colombo Stock Exchange Section 5.2 (b) listing rules.

The purpose of this rights issue is to strengthen the micro finance, higher purchase and leasing finance business of the entity through their existing branch network.

The company will issue 26,933 336 number of shares and the portion of shares are to be issued one new share of existing one share, which is expected to be issued at Rs 12.50 per share. The current stated capital of the entity is Rs 279,433,361.
 http://www.dailynews.lk

Related News:
http://www.cse.lk/cmt/upload_cse_announcements/6591395636936_.pdf