Two-thirds majority for 19A

At its second reading in Parliament a short while ago, the 19th Amendment to the Constitution was passed by a two-thirds majority with 214 MPs voting in favour. SLFP MP Sarath Weerasekara voted against while one MP abstained. Seven MPs were absent at the time of voting.
www.dailymirror.lk/

BoC GM reinstated after compulsory leave

General manager of the Bank of Ceylon D.M. Gunasekara was reinstated yesterday (27) after being sent on compulsory leave.

His suspension has been annulled after the BoC employees union threatened to strike, alleging it was an authoritarian decision to suspend him.

Gunasekara has been accused of opening of a BoC branch in Seychelles without proper permission, making improper recruitment and over the releasing of money to Perpetual Treasuries for investment in the controversial treasury bonds issue of the Central Bank.

Sri Lanka raises $81.25 mln through development bonds

(Reuters) - Sri Lanka raised $81.25 million through two- and three-year dollar-denominated development bonds on Tuesday, the central bank said.

The government sold $30 million two-year bonds at 6-month LIBOR plus 360 basis points (bps) after receiving bids worth $45 million, while it raised $51.25 million in three-year bonds at 6-month LIBOR plus 377.20 basis points.

The central bank received $63.25 million worth of bids for three-year development bonds.

It had offered $25 million each in two- and three-year bonds. 

(Reporting by Ranga Sirilaland Shihar Aneez; Editing by Clarence Fernandez)

Sri Lankan shares at 7-week closing high; political woes weigh

(Reuters) - Sri Lankan shares edged up to their highest close in seven weeks on Tuesday led by diversified shares, but volume was light as investors awaited cues from the political front ahead of a parliamentary vote on proposed constitutional reforms.

The main stock index ended up 0.13 percent at 7,134.43, its highest close since March 9. It has gained 3.38 percent since the central bank cut key rates on April 15, while yields on t-bills have fallen 41-51 basis points since then.

Investors have been cautious due to political uncertainty as Prime Minister Ranil Wickremesinghe's party does not have a majority in parliament and President Maithripala Sirisena promised to dissolve parliament after the end of his 100-day programme on April 23.

The passage of reform measures, including establishing independent police, judiciary, and election and public service commissions, is seen as a test for Sirisena's government.

"Market was volatile with continued upward trend, but investors are still waiting for a stable political framework," said Reshan Wediwardana, research analyst at First Capital Equities (Pvt) Ltd.

Investors awaited the outcome of the vote on constitutional reforms which could help boost investor sentiment, dealers said.

The day's turnover was 756 million rupees ($5.69 million), compared with this year's daily average of around 1.07 billion rupees.

The market saw a net foreign inflow of 21.2 million rupees worth of shares on Tuesday, extending the net foreign inflow so far this year to 3.8 billion rupees.

Analysts said the market could be dull until the perception of political uncertainty is addressed and many investors were in a wait-and-watch mode before the parliamentary elections.

Shares of Hemas Holdings Plc rose 0.39 percent, while Distilleries Company of Sri Lanka Plc gained 1.49 percent.

Some analysts said the markets would stay volatile until parliamentary elections are announced.

The index lost 6.6 percent last month, its biggest monthly drop since October 2012, as investors sold holdings to settle margin trades amid concerns about political stability and a rise in interest rates. 

($1 = 132.9000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

CSE takes over SAFE Chairmanship

The Chairman of the Colombo Stock Exchange (CSE) was unanimously elected as the Chairman of the South Asian Federation of Exchanges (SAFE) at the Annual General Meeting of SAFE concluded on April 26th, 2015. Accordingly, the CSE Chairman Mr. Vajira Kulatilaka succeeds Dr. Muhammad Abdul Mazid as the Chairman of SAFE for a two year term of office. 

Dr. Muhammed Abdul Mazid, Chairman of the Chittagong Stock Exchange and Mr. Nayan Mehta, Chief Financial Officer of the Bombay Stock Exchange were elected as Senior Vice Chairmen while Mr.Rashed Al Balooshi, Chief Executive Officer of the Abu Dhabi Securities Exchange was elected as the Vice Chairman. 

The CSE was one of the founder members of SAFE which was established in 2000 with the objective of promoting the development and harmonization of securities markets in the South Asian Region. 

Presently SAFE has 15 primary members comprising of stock and commodity exchanges from India, Pakistan, Bangladesh, Sri Lanka, Nepal, Maldives, Mauritius, Bhutan and the UAE. It also has several depositories and clearing houses in the region as associate members. 

The permanent secretariat is located in Islamabad, Pakistan. 

The new Executive Board of SAFE would have its first meeting under the Chairmanship of the CSE in Kunming China to develop a ten year vision and plan for the association in June 2015 while the next Annual SAFE conference is to be hosted by the Bombay Stock Exchange in 2016.

CSE

Sri Lankan shares close steady, political woes weigh

(Reuters) - Sri Lankan shares ended steady on Monday, hovering near their more than six-week closing high hit in the previous session, while investors waited for cues on the political front as the country's parliament started a two-day debate on proposed constitutional reforms.

Investors have been cautious due to political uncertainty as Prime Minister Ranil Wickremesinghe's party does not have a majority in the parliament and President Maithripala Sirisena promised to dissolve the parliament after the end of his 100-day programme on April 23.

The passage of reform measures, including establishing independent police, judiciary, and election and public service commissions, is seen as a test for President Maithripala Sirisena's government.

The main stock index ended 0.07 percent, or 4.66 points, weaker at 7,125.12, hovering near its highest close since March 10 hit on Friday. It has gained 3.25 percent since the central bank cut key rates on April 15 through Monday, while yields on t-bills have fallen 37-48 basis points since then.

"Political stability is the main concern. Many (investors) are waiting to see the outcome of the debate and when the parliamentary elections will be," said Reshan Wediwardana, research analyst at First Capital Equities (Pvt) Ltd.

The parliament on Monday started the two-day debate on constitutional reforms.

Some analysts said the markets would stay volatile until parliamentary elections are announced.

The market saw a net foreign inflow for the first time in four sessions. Foreign investors were net buyers of 149.3 million rupees ($1.12 million) worth shares, extending the net foreign inflow so far this year to 3.78 billion rupees.

Turnover was 670.3 million rupees, compared with this year's daily average of around 1.07 billion rupees.

Analysts said the market could be dull until the perception on political uncertainty is addressed and many investors were in a wait-and-watch mode before the parliamentary elections.

Shares of Ceylon Brewery Plc fell 5.44 percent, while DFCC Bank Plc dropped 0.37 percent. Diversified conglomerate Hayleys gained 2.56 percent.

The index lost 6.6 percent last month, its biggest monthly drop since October 2012, as investors sold holdings to settle margin trades amid concerns about political stability and a rise in interest rates. 

($1 = 132.9000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

South Asian Exchanges formulate road map for the future, at regional conference in Colombo

Colombo:

The South Asian Investment Conference (SAIC) organised by the Colombo Stock Exchange (CSE) in association with the South Asian Federation of Exchanges (SAFE), took place today (27th April) at the Galadari Hotel, Colombo. The Minister of Finance Hon. Ravi Karunanayake, the Deputy Minister of Policy Planning, Economic Affairs, Child, Youth and Cultural Affairs Dr. Harsha De Silva, the Chairman of the Securities and Exchange Commission of Sri Lanka Mr.Tilak Karunaratne, Chairman of SAFE and Chairman of CSE Mr. Vajira Kulatilaka and outgoing Chairman of SAFE Dr. Muhammad Abdul Mazid addressed the audience at the inaugural ceremony. 

Following the inaugural session, decision makers from Member Exchanges of SAFE made presentations and took part in panel discussions; charting the course for the future development of regional Exchanges. 

“South Asia has emerged as the 2nd fastest growing region in the world, with predicted growth rates of 6 to 8 percent to be continued until 2025. Confidence of the investors will rest not only on growth rates, but will also on market integrity, good governance and transparency coupled with political stability and the political will to embrace foreign investment with the right spirit. All such ingredients are abundant in the current political regime in power,” Minister of Finance Hon. Ravi Karunanayake said. 

“All of us in the SAFE are facing similar situations as developing countries, the need to and are elevate poverty and create a strong middle class. However Exchanges always develop instruments for the rich, for those who can invest Millions; they don’t pay enough attention to the small and medium enterprises. In order to create a market where, various investors are able to invest, we need to provide diverse asset classes for investment. Therefore we need to cooperate and create these various asset classes and present South Asia to the world as a unified whole that also serves the bottom of the pyramid. We also need to compete amongst ourselves I do not think that the extremes can compete, however markets of similar size can. However we need to formulate a structure where we can all compete and we all win,” Deputy Minister of Policy Planning, Economic Affairs, Child, Youth and Cultural Affairs Dr. Harsha De Silva said. 

“As we begin to show the various facets of our Exchanges, international investors who have been viewing this market cautiously as a risky investment have now changed their minds. All international investors now want to come to this part of the world, mainly because of high growth and the possibility of diversification. Therefore, I think we have a great opportunity to take SAFE to a different level. This conference which is aimed at exploring the true investment potential of our region, is a relevant forum to highlight the combined strength of South Asia. The conference has looked at the development of new products, and towards bringing diversity in investment choices to international investors,” Chairman of SAFE and Chairman of CSE Mr. Vajira Kulatilaka said. 

“Traditionally capital markets are considered as powerful engines of economic growth that mobilize savings towards productive corporate financing. Even though the role of the capital market is widely accepted, developing a robust and efficient capital market is a difficult task for many emerging economies – nonetheless we should work towards developing significant improvements in the capital markets of the region ,”Chairman of the SEC Mr.Tilak Karunaratne said. 

“South Asia is at the very brink of attaining new heights in the global order and this is witnessed through our capital markets. It is vital to sustain this momentum of growth, which is in our collective best interest. Thereby, integration allows for the less developed markets to grow exponentially by exposure to higher developed markets,” Outgoing Chairman of SAFE Dr. Muhammad Abdul Mazid said. 

Local Capital Market representatives, including CEO’s from Member Firms of the CSE and CEO’s from Unit Trusts and other market intermediaries will also attend the event. 

The sponsors of the SAIC are Thomson Reuters, MillenniumIT, Treet Corporation Limited, the Chittagong Stock Exchange, NDB Bank, BNP Paribas, Cyan Limited, Efu General Insurance, Hascol Petroleum, AKD Securities and Softlogic Stockbrokers and Lanka Securities (Bronze sponsor for Gala Cultural Night ).