Sri Lanka's IOC unit keeps economy oiled

ECONOMYNEXT - Lanka IOC, a unit of Indian Oil Corporation is maintaining deliveries to its network of fuel stations, a top official said as pumps ran dry in distributors of state-run Ceylon Petroleum Corporation amid a strike.

Lanka IOC owns operates about a third of the retail fuel market in the country, after a monopoly of the CPC was broken in a privatization drive, vastly improving the quality of fuel and fuel stations.

A common user facility Ceylon Petroleum Storage Terminals, in which Lanka IOC, which operates in Colombo has also been hit by strike action.

An LIOC official said the firm was transporting fuel from a tank farm in Trincomalee in the north east of the country.

Unions are opposing a joint development of remaining tanks in Trincomalee port, which they say is further privatization of state assets.

A strike leader claimed that reduced fuel distribution would boost the economy.

Strike leaders who have had links to Sri Lanka Freedom Party and the Janatha Vimukthi Peramuna have opposed privatization, and have wanted them kept under the control of the elected ruling class ensuring that the SOEs like Ceylon Petroleum Corporation is overstaffed and rife in procurement corruption.

Sri Lankan shares fall from six-month high on profit taking

Reuters: Sri Lankan shares fell on profit taking on Monday after reaching a six-month closing high and gaining 9.4 percent in the previous 16 session as foreign investors bought risky assets.

The Colombo stock index ended 0.45 percent weaker at 6,505.95, from its highest close since Oct. 11 hit in the previous session. It has climbed 9.4 percent in the 16 sessions through Friday, having risen for 15 sessions in that period.

The index added 2.1 percent last week, marking its fourth week of gains.

"This is a typical settling in market. Foreign focus has slightly changed ... but foreign buying is continuing," said Hussain Gani, deputy CEO of Softlogic Stockbrokers.

Foreign investors have been net buyers in the last 22 sessions, acquiring equities worth a net 123.3 million rupees ($811,184). The year-to-date net foreign inflow is 14.4 billion rupees.

Turnover was moderate on Monday at 530.3 million rupees, less than of this year's daily average of 873.1 million rupees.

Market heavyweight John Keells Holdings lost 0.9 percent, while top private lender Commercial Bank of Ceylon fell 1.3 percent, dragging the overall index.

($1 = 152.0000 Sri Lankan rupees) 

(Reporting by Shihar Aneez, editing by Larry King)