Sri Lanka’s Lanka hospitals appoints a new chairman

Jan 21,2015 (LBO) – Sri Lanka’s Lanka Hospitals which was formerly known as Apollo appointed Gamini Wickramasinghe as the new chairman with effect from 19th this month, the company said in a stock exchange filling.

He was an independent non-executive director of the hospital prior to his appoint.

Wickramasinghe appointment follows the resignation of former Defence and Urban Development secretary Gotabayak Rajapaksa as chairman of the company with the defeat of President Mahinda Rajapaksa regime.

Lanka Hospitals Corporation Ltd commenced operations in Sri Lanka on June 2002, under the brand name of Apollo Hospitals, a part of the chain of Apollo Hospitals, India.

The hospital ended deals with Indian Apollo in 2009. The move comes in the wake of the hospital coming under state control following a court order.

In August a new board was appointed to the hospital including the head of Sri Lanka's defence establishment, Gotabaya Rajapaksa, a brother of President Mahinda Rajapaksa.

This was after Sri Lanka Insurance Corporation, which had taken control of the privately built Apollo Hospital, went back under state control.

Rajapaksa became a director with the appointment of a new board representing its controlling shareholder Sri Lanka Insurance Corporation.

Sri Lanka Treasury bill yields crepe up slightly

Jan 21,2015 (LBO) – Sri Lanka's Central Bank re-issue of 10,000 million rupees maturing Treasury bills was oversubscribed with bids amounting to 27,545 million rupees being received, the bank said.

It was decided to accept 10,891 million rupees from the auction.

The 12-month yield increased to 6.05 percent from 6.04 percent at the previous auction receiving 13,225 million rupees, data from the state debt office showed. The bank accepted 3,204 million rupees.

6-month yield was also up at 5.90 percent from 5.89 and 3,658 million rupees were accepted.

The debt office which is part of the island's central bank offered 3-month short term bills for the auction at 5.80 percent and 4,029 million rupees were accepted.

Sri Lanka to settle $500 mln bond maturing on Thursday - officials

Jan 21 (Reuters) - Sri Lanka will draw on its foreign currency reserves to settle a five-year $500 million sovereign bond maturing on Thursday, central bank officials said on Wednesday.

The officials said the authorities had opted against rolling over the issue.

"It'll be paid from the reserves," a central bank official told Reuters. Another official confirmed the move.

Foreign currency reserves declined by $474.33 million to $7.37 billion in the two months through December, the central bank data showed. (Reporting by Ranga Sirilal; editing by Simon Cameron-Moore)

Thilak Karunaratne to be re-appointed as SEC Chairman

Thilak Karunaratne will be re-appointed as Chairman of the Securities and Exchanges Commission of Sri Lanka, Minister Rajitha Senaratne told Ada Derana.

Tilak Karunaratne is a former Sri Lanka Freedom Party (SLFP) member who joined the United National Party (UNP) before joining the Sihala Urumaya. He is also a Chartered Chemist and was the Managing Director of Multiform Chemicals (Pvt) Ltd.

Earlier, Karunaratne submitted his resignation, on 17 August 2012, saying he had come under pressure from stock market players under investigation for stock manipulation.

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Shareholders vote down Rs. 825m Rights Issue of Orient Garments

Shareholders of Orient Garments Plc (OGL) yesterday voted down a planned Rs. 825 million worth Rights Issue saying its objectives may not achieve desired results.

The OGL held an Extraordinary General Meeting (EGM) yesterday to obtain shareholder approval for the one for one rights issue at Rs. 15 each. The move meant issuance of 55 million new shares. Funds raised via Rights were to be used to retire debt.

After a differences of opinion at the EGM, the resolution was put to vote. Key shareholders including Dr. T. Senthilverl and a few others along with proxies voted against. The resolution was voted down by 57% of those present at EGM including those holding proxies. Votes in favour was 43%.

As at September 2014, Dr. Senthilverl held 45.4% stake whilst management and single largest shareholder Adam Investments collectively held 39.8%.

OGL previously said the rights issue was called to infuse much needed capital to meet overdue statutory payments and other outstanding which have been hampering the progress of the company.

OGL said the rights issue is primarily to safeguard the employment of over 4,000 faithful workers who have stood by the company through thick and thin and to drive the operations forward with renewed vigour and excellence.

Since the takeover on 8 January 2014, OGL has spruced up its compliance standards, increased the number of machines in operation by 76% – from 1,100 to 1,940 machines –and carried out an employee skill upgrade initiative resulting in improved efficiency and greater confidence by its highly quality-conscious international buyers. The revamped marketing department has built a strong confirmed order book securing a bright future for the company, OGL said in a statement prior to the EGM.
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Sri Lanka’s Access shares fall on cancellation of mega highway

Access Engineering shares fell by 11 per cent or Rs. 3.40 per share to Rs. 26.60 on Monday at the Colombo bourse days after the new Sri Lankan Government announced the cancellation of a major highway project. 

Traders appeared to panic with more than 800 separate transactions all amounting to 3.4 million shares at a turnover of Rs 95 million. 

Access is one of the most powerful contractors in the country and involved in several major road, highway and other development projects. 

At the weekend, the new Government of President Maithripala Sirisena – dismantling some of the costly projects of the former administration – said it was cancelling the proposed northern expressway project saying it was too expensive. 

Five contractors including Access had been selected for the project. 

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One man hospitalised in Ceylinco Insurance shareholders fracas

One person was hospitalised after arguments and fisticuffs broke out at a stormy Ceylinco Insurance meeting of shareholders in Colombo on Tuesday morning, shareholders said. 

Officials from the Global Rubber Industries (Pvt) Ltd (GRI) which has a 22.86 per cent stake in the company, at a hastily-called media briefing alleged that Ceylinco staff was behind the assault and vowed to file a complaint with the Securities and Exchange Commission (SEC) seeking action. 

They also showed a video of how shareholders were assaulted. 

Earlier in the morning, one shareholder present told the Business Times that at one point during the meeting a shareholder bit a security guard’s chest which turned bloody when guards intervened to break up opposing factions. 

More than 200 shareholders were present at the meeting. 

The company was holding two meetings, one at the request of a shareholder, and the second one to endorse a proposal for segregation of life and general units as separate entities. 

The trouble flared at the first meeting where GRI had wanted an explanation accusing the company of ‘surreptitiously transferring the business and assets without shareholder approval’. 

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