People’s Leasing buys more PMF

People’s Leasing and Finance and People’s Bank (joint offerors) have acquired a total of 6,461,543 ordinary shares at a price of Rs. 22.00 per share representing 9.57%  of the voting rights in People’s Merchant Finance PLC (PMF).

Consequent to the aforesaid purchase of ordinary voting shares, the Joint Offerrors own 32,921,519 voting shares (48.77%) of PMF and as a result the Joint Offerors will be making a Mandatory Offer to the remaining shareholders of PMF.

In compliance with the provisions of the code, People’s Leasing and Finance and People’s Bank will make a detailed announcement on the proposed offer shortly.
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Sri Lanka shares near 11-week low

Sri Lankan shares fell on Monday to a near-11-week low hit last week led by large-cap shares such as Nestle Lanka Plc and Ceylon Tobacco Company Plc on political uncertainty ahead of parliamentary elections.

The main stock index ended 0.25 percent weaker at 6,989.41, hovering near its lowest close since April 15 hit on Thursday.

The day's turnover was 453.5 million rupees ($3.40 million), well below this year's daily average of 1.07 billion rupees.

Shares in Nestle Lanka Plc fell 3.06 percent while Ceylon Tobacco Company Plc fell 0.52 percent, dragging the overall index.

President Maithripala Sirisena dissolved parliament on June 26 and scheduled elections for Aug. 17, in an effort to consolidate power and push through political reforms.

The market saw a net foreign outflow of 88.5 million rupees on Monday, extending the net outflow for the past 28 sessions to 4.7 billion rupees.

However, foreign investors are net buyers of 1.25 billion rupees worth of shares so far this year. 

($1 = 133.5000 Sri Lankan rupees) 

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

SEC ordered by court to submit share transaction report of Dilith Jayaweera, Nalaka Godahewa

The Colombo Magistrate’s Court has directed the Securities and Exchange Commission (SEC) to submit a detailed report on share transactions of Dilith Jayaweera, former SEC chief Nalaka Godahewa, Varuni Amunugama and Sarvajana Anandaraj Ameresekere since 2008.

The Colombo Additional Magistrate Nishantha Peiris made this order in response to a request by the Financial Crimes Investigation Division (FCID) when the case on alleged irregularities in Lanka Hospitals share transactions was taken up for hearing this week.

The FCID is carrying out investigations into a number of irregularities that had taken place at the CSE during the recent past, including insider trading and market manipulation. These irregularities are alleged to have taken place between 2009 and 2014 at Lanka Hospitals Corporation Plc under the chairmanship of former Defence Secretary Gotabaya Rajapaksa.

The case was based on a complaint lodged by Dr. Neomal Alexander Perera, a cancer specialist attached to Lanka Hospitals.

The complainant alleged that Rajapaksa took control of the affairs of the hospital and was responsible for a financial fraud amounting to Rs.600 million that took place after artificially manipulating the price of Lanka Hospital shares in the stock market.

According to the complainant, a fraud of Rs. 350 million had taken place when the hospital set up the LHD Diagnostics Laboratory and that several irregularities had occurred during the purchase of two houses by Lanka Hospitals which did not follow a proper tender procedure. The court has further ordered a full disclosure of bank account details of Mr. Jayaweera, Dr. Godahewa, Ms. Amunugama and Mr. Ameresekere.The FCID revealed to court that the bank accounts of these individuals at Bank of Ceylon, Nations Trust Bank and several other banks have been already examined.

The Additional Magistrate directed that the names used by the individuals in question, during the transaction and all other related material be submitted to court through a report. The respective banks have been ordered to submit to court, bank statements of the four individuals – between January 2011 and June 30, 2011.
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CIFL depositors present Rs. 3.5 bln bailout plan

By Quintus Perera

Depositors of the failed Central Investment and Finance Ltd have submitted a proposal to the Central Bank (CB) to revive the company under a Rs. 3.5 billion bailout package. W. Gunawardene, President of the CIFL Depositors Association (CIFLDA) told the Business Times that the money would be obtained from state banks as a long term loan against the recoverable assets of CIFL based on the KPMG Audit.

The proposal came amidst accusations that the CB was slow in finding a quick solution to revive this crisis-ridden finance company. Mr. Gunawardene said the CB had compelled them to withdraw their Supreme Court Case on the promise that the banking regulator would find investors to revive the CIFL but the CB has been silent on the matter so far.

He said that they had a discussion with CB officials headed by Ms K.M.A.N. Daulagala, Director, Supervision of Non-Banking Financial Institutions, on June 17 on the matters related to the misappropriation of public funds and money laundering of CIFL based on the ‘B’ Report submitted by the CID on a complaint made by the CB. He said their proposal was not taken up at the CB Monetary Board meeting on June 25 but would be taken up at its next meeting on July 10.
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Sri Lanka tourist arrivals up 12-pct in June

COLOMBO (EconomyNext) - Sri Lanka's tourist arrivals rose 12 percent to 115,467 in June 2015 from a year earlier driven by rapid growth from the main markets of China and India, data from the state tourist promotion agency showed.

In the year to June, the total number of visitors were up 14.1 percent to 830,051 from the year before.

Arrivals from South Asia have been growing rapidly, largely owing to Indian visitors, and were up 19.5 percent to 36,972 in June 2015.

Arrivals from East Asia also grew by over 19 percent to 26,217 in June, mainly driven by visitors from China, Hong Kong and Macau.

The traditional Western European market remained the largest source of visitors in the six months to June 2015, up almost 15 percent to 256,567 from the year before.

The UK, Germany and France were the main source of tourists.

Arrivals from Eastern Europe are down 11.4 percent to 76,708 in the year to June 2015 but are recovering with Russia growing 7.8 percent in June and Ukraine up 17.4 percent.

Sri Lanka shares end up; turnover surges on Textured Jersey block deal

Sri Lankan shares recovered on Friday from a 11-week low hit in the previous session led by market heavyweight John Keells Holdings while turnover hit a more-than-seven-week high due to a block deal in Textured Jersey Lanka.

Local investors were mostly on the sidelines due to political uncertainty ahead of parliamentary elections.

The main stock index ended up 0.35 percent at 7,007.05, recovering from its lowest close since April 15 hit on Thursday.

The day's turnover was 2.46 billion rupees ($18.43 million), its highest since May 14 and more than double this year's daily average of 1.08 billion rupees.

Textured Jersey Lanka accounted for over 77 percent of the day's turnover. The shares, however, ended 0.4 percent down.

John Keells Holdings gained 2.18 percent to 182.30 rupees, pushing up the overall index.

President Maithripala Sirisena dissolved parliament last week and scheduled elections for Aug. 17, in an effort to consolidate power and push through political reforms.

The market saw a net foreign outflow of 429.8 million rupees on Friday, after recording a net outflow of 4.6 billion rupees over the past 27 sessions.

However, foreign investors are net buyers of 1.34 billion rupees worth of shares so far this year. 

($1 = 133.5000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Sunil Nair)

Insurance Industry performs well in 2014

The insurance industry has recorded another successful year in 2014.

"Year 2014 was another positive year for the Sri Lankan insurance industry, which recorded growth in Gross Written Premium (GWP) of both Long Term and General Insurance business sectors along with the assets of insurance companies,"Insurance Board of Sri Lanka Director General, Damayanthi Fernando said.

The total Gross Written Premium (GWP) generated by insurance companies grew by 5.14% and total assets increased by 13.81% year on year.

The total GWP income for Long Term Insurance and General Insurance businesses in 2014 was Rs. 99,872 million compared to 2013 amounting to Rs. 94,987 million which re-ected a growth of 5.14%,the DG said.

The Long Term Insurance Business recorded premium income of Rs. 44,610 million (2013: Rs. 41,676 million) while the General Insurance Business recorded a premium income of Rs. 55,262 million during 2014 (2013: Rs. 53,311 million).

Thus, Long Term Insurance Business and General Insurance Business witnessed a growth of 7.04% and 3.66% respectively in GWP Income during 2014 when compared to 2013.

The total assets held by insurance companies amounted to Rs. 406,827 million as at December 31,2014 when compared to Rs. 357,465 million recorded as at the end of 2013, reflecting a growth of 13.81%.

The assets of Long Term Insurance Business amounted to Rs. 249,850 million (2013: Rs. 216,275 million), while the assets of General Insurance Business amounted to Rs. 163,834 million (2013: Rs. 148,410 million) indicating a growth rate of 15.52% and 10.39% respectively year on year in Government Securities.

At the end of 2014, the investment of total assets of Long Term Insurance Business in Government Debt Securities amounted to Rs. 111,600 million representing 44.67% (2013: Rs. 93,539 million; 43.25%), while such investment of the total assets of General Insurance Business amounted to Rs. 25,496 million representing 15.56% (2013: Rs. 28,163 million; 18.98%). Accordingly, the total investment of both Long Term Insurance Business and General Insurance Business in Govemment Debt Securities amounted to Rs. 137,096 million (2013: Rs. 121,702 million) as at December 31,2014.

Dispute Resolution and Investigations IBSL, under its overall objective of safeguarding the interests of policyholders, inquires into policyholders' grievances in connection with insurance claims pertaining to life and general insurance policies and matters relating to qualifications of agents.

In terms of Section 98 of the Regulation of Insurance Industry Act No. 43 of 2000, IBSL is empowered to investigate into and resolve disputes between insurers and claimants relating to the settlement of claims which are referred to IBSL by claimants. In 2014, 284 new matters were referred to the IBSL.

IBSL settled and closed a total of 230 complaints received in 2013 and 2014.

Out of the matters settled, 38 claims were honoured by insurers upon the intervention of IBSL.
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