Thursday, 24 December 2015
Sri Lanka annual tea crop seen at three-year low
ECONOMYNEXT – Sri Lanka’s November 2015 tea crop was the lowest in seven years with the island’s annual output expected to be around 325 million kilos, brokers Asia Siyaka Commodities said.
The 2015 annual production would be more in line with the 2012 total of 327 million kilos and well below last year's figure 338 million kilos, the brokers said in a report.
“The projected loss of production is 12-13 million kilos with much of it coming in the third and fourth quarters.”
Sri Lanka November tea crop of 25.2 million kilos, 16 percent less than a year ago, was the lowest since 2008, Asia Siyaka Commodities said.
“Heavy showers, overcast conditions and almost a month of wet days restricted tea crop from most growing districts in November,” it said.
“In 2008, in the midst of financial turmoil, collapsed markets and related issues, Sri Lanka produced 24.8 million kilos. Since then the November tea production has been 27-30 million kilos.”
The report said that tea crops were lower in all three elevations in November 2015 with the higher elevations declining the most.
Tea production for January to November 2015 at 305.3 million kilos is the lowest since 2012, and 2.7 percent lower than the same 2014 period.
The 2015 annual production would be more in line with the 2012 total of 327 million kilos and well below last year's figure 338 million kilos, the brokers said in a report.
“The projected loss of production is 12-13 million kilos with much of it coming in the third and fourth quarters.”
Sri Lanka November tea crop of 25.2 million kilos, 16 percent less than a year ago, was the lowest since 2008, Asia Siyaka Commodities said.
“Heavy showers, overcast conditions and almost a month of wet days restricted tea crop from most growing districts in November,” it said.
“In 2008, in the midst of financial turmoil, collapsed markets and related issues, Sri Lanka produced 24.8 million kilos. Since then the November tea production has been 27-30 million kilos.”
The report said that tea crops were lower in all three elevations in November 2015 with the higher elevations declining the most.
Tea production for January to November 2015 at 305.3 million kilos is the lowest since 2012, and 2.7 percent lower than the same 2014 period.
Wednesday, 23 December 2015
Sri Lankan shares edge up in thin trade
Reuters: Sri Lankan shares closed marginally higher on Wednesday, snapping a two-session losing streak in thin trade ahead of a long weekend, led by market heavyweight John Keells Holdings.
Turnover slumped to the lowest level since March 24, 2014 at 205.2 million rupees ($1.43 million), against this year's daily average of 1.08 billion rupees.
The market is expected to be lacklustre with low turnover due to year-end holidays starting this week, stockbrokers said.
Markets will be closed on Thursday for a Buddhist religious holiday and on Friday for Christmas.
The main stock index ended 0.06 percent firmer at 6,858.64, after hitting its lowest close since Dec. 16 in the previous session.
Foreign investors sold a net 9.3 million rupees worth of equities, extending the net outflow to 4.27 billion rupees so far this year.
John Keells, the country's top conglomerate, closed 0.5 percent higher.
Turnover slumped to the lowest level since March 24, 2014 at 205.2 million rupees ($1.43 million), against this year's daily average of 1.08 billion rupees.
The market is expected to be lacklustre with low turnover due to year-end holidays starting this week, stockbrokers said.
Markets will be closed on Thursday for a Buddhist religious holiday and on Friday for Christmas.
The main stock index ended 0.06 percent firmer at 6,858.64, after hitting its lowest close since Dec. 16 in the previous session.
Foreign investors sold a net 9.3 million rupees worth of equities, extending the net outflow to 4.27 billion rupees so far this year.
John Keells, the country's top conglomerate, closed 0.5 percent higher.
($1 = 143.7500 Sri Lankan rupees)
(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)
Fitch rates Commercial Bank’s Subordinated Debentures AA-(lka)(EXP)
(LBO) – Fitch Ratings Lanka has assigned Commercial Bank of Ceylon proposed Basel II-compliant subordinated debentures of up to 7 billion rupees an expected National Long-Term Rating of AA-(lka)(EXP).
The proposed issuance, which will have tenors of five and ten years and carry fixed coupons, will be listed on the Colombo Stock Exchange. CB expects to use the proceeds to strengthen its Tier 2 capital base and reduce asset-and-liability maturity mismatches.
The final rating is subject to the receipt of final documentation conforming to information already received.
KEY RATING DRIVERS
The proposed subordinated debentures are rated one notch below CB’s National Long-Term Rating, to reflect the subordination to senior unsecured creditors.
The issuer rating is driven by CB’s measured risk appetite, solid franchise, sound track record, and strong funding profile.
RATING SENSITIVITIES
The rating on the proposed debentures will move in tandem with CB’s National Long-Term Ratings.
These ratings are primarily sensitive to CB’s ability to withstand cyclical asset quality deterioration.
A full list of CB’s ratings follows:
National Long-Term Rating: ‘AA(lka)'; Stable Outlook
Outstanding Basel II-compliant Sri Lanka rupee-denominated subordinated debentures: ‘AA-(lka)’
Proposed Basel II-compliant Sri Lanka rupee-denominated subordinated debentures: ‘AA-(lka)( EXP)’
The proposed issuance, which will have tenors of five and ten years and carry fixed coupons, will be listed on the Colombo Stock Exchange. CB expects to use the proceeds to strengthen its Tier 2 capital base and reduce asset-and-liability maturity mismatches.
The final rating is subject to the receipt of final documentation conforming to information already received.
KEY RATING DRIVERS
The proposed subordinated debentures are rated one notch below CB’s National Long-Term Rating, to reflect the subordination to senior unsecured creditors.
The issuer rating is driven by CB’s measured risk appetite, solid franchise, sound track record, and strong funding profile.
RATING SENSITIVITIES
The rating on the proposed debentures will move in tandem with CB’s National Long-Term Ratings.
These ratings are primarily sensitive to CB’s ability to withstand cyclical asset quality deterioration.
A full list of CB’s ratings follows:
National Long-Term Rating: ‘AA(lka)'; Stable Outlook
Outstanding Basel II-compliant Sri Lanka rupee-denominated subordinated debentures: ‘AA-(lka)’
Proposed Basel II-compliant Sri Lanka rupee-denominated subordinated debentures: ‘AA-(lka)( EXP)’
Details on new investment and exports framework in January: Malik
(LBO) – Sri Lanka will have its first glance of the country’s new investment and export framework as early as next January, a top Cabinet Minister said.
The Board of Investment and Export Development Board are slated to become implementing arms of a new, higher level policy and strategy body consisting of ‘proven performers from both private and public sectors’, Development Strategy and International Trade Minister Malik Samarawickrama said.
Samarawickrama was addressing a capacity building session for senior staff of both BOI and EDB conducted yesterday.
“We are in the process of forming a new Agency for Development and an Agency for International Trade, which will have both government and private sector personnel’s participation,”
“These personnel are packed based on their proven track record. However the implementing of their projects and proposals will be done through the BOI and EDB. We are discussing details and they will be ready sometime in January 2016.” Samarawickrama said.
Prime Minister Ranil Wickremesinghe in his economic policy speech of November 5 in Parliament announced new economic reforms as well as changes to EDB and BOI.
The Board of Investment and Export Development Board are slated to become implementing arms of a new, higher level policy and strategy body consisting of ‘proven performers from both private and public sectors’, Development Strategy and International Trade Minister Malik Samarawickrama said.
Samarawickrama was addressing a capacity building session for senior staff of both BOI and EDB conducted yesterday.
“We are in the process of forming a new Agency for Development and an Agency for International Trade, which will have both government and private sector personnel’s participation,”
“These personnel are packed based on their proven track record. However the implementing of their projects and proposals will be done through the BOI and EDB. We are discussing details and they will be ready sometime in January 2016.” Samarawickrama said.
Prime Minister Ranil Wickremesinghe in his economic policy speech of November 5 in Parliament announced new economic reforms as well as changes to EDB and BOI.
Sri Lanka expects EU fishing ban to be revoked by mid 2016
(LBO) – Sri Lanka is looking at a favorable response about the lifting of EU fishing ban from the European Parliament by mid next year, the Fisheries Minister said.
“During the coming months the proposal to lift the fishing ban will be presented to the European Parliament,” Fisheries Minister Mahinda Amaraweera said.
“We are losing over 100 million US dollars per year because of this ban. So we are expecting a favorable response from them before the Sinhala and Tamil New Year in 2016.” he said.
Minister Amaraweera said they have installed Vessel Monitoring Systems to the vessels operating in international waters in order to stop fishing in prohibited areas.
The 2016 budget proposed a deep sea fishing licensing scheme where one license holder will have to engage in collaboration with at least 100 persons in the fishing community.
Amaraweera however stated that the budget proposal has no effect to the exiting small boat owners as the proposal only affects new comers.
As per international law, Sri Lanka has the authority to send 1,615 boats to the international waters for fishing.
“We already have over 1,550 boats fishing in international waters. So we have left only few boats to add,’
“We have invited local businessmen to invest in new ships that use new technology.” he further said.
European Union Council last month encouraged Sri Lanka to take further measures necessary to address the shortcomings established in the context of the EU legislation on Illegal, Unreported and Unregulated (IUU) fishing.
The Council added that the ban on fishery exports to the EU could be lifted if further necessary steps are taken.
Sri Lanka received a “yellow card” or a strict warning in November 2012 before the ban was imposed, as the country was not complying with international rules on illegal fishing.
“During the coming months the proposal to lift the fishing ban will be presented to the European Parliament,” Fisheries Minister Mahinda Amaraweera said.
“We are losing over 100 million US dollars per year because of this ban. So we are expecting a favorable response from them before the Sinhala and Tamil New Year in 2016.” he said.
Minister Amaraweera said they have installed Vessel Monitoring Systems to the vessels operating in international waters in order to stop fishing in prohibited areas.
The 2016 budget proposed a deep sea fishing licensing scheme where one license holder will have to engage in collaboration with at least 100 persons in the fishing community.
Amaraweera however stated that the budget proposal has no effect to the exiting small boat owners as the proposal only affects new comers.
As per international law, Sri Lanka has the authority to send 1,615 boats to the international waters for fishing.
“We already have over 1,550 boats fishing in international waters. So we have left only few boats to add,’
“We have invited local businessmen to invest in new ships that use new technology.” he further said.
European Union Council last month encouraged Sri Lanka to take further measures necessary to address the shortcomings established in the context of the EU legislation on Illegal, Unreported and Unregulated (IUU) fishing.
The Council added that the ban on fishery exports to the EU could be lifted if further necessary steps are taken.
Sri Lanka received a “yellow card” or a strict warning in November 2012 before the ban was imposed, as the country was not complying with international rules on illegal fishing.
Finlays Sri Lanka unit delisting approved by regulator
ECONOMYNEXT – Sri Lanka’s stock market regulator, the Securities and Exchange Commission, has approved tea exporter Finlays Colombo Plc plans to delist its ordinary shares from the Colombo Stock Exchange.
A stock exchange filing said offer documents on the exit offer to be made by James Finlay Ltd. of London will be sent to the rest of the shareholders in due course.
Finlays Colombo has made arrangements for James Finlay Ltd. of Swire House, London to buy shares from shareholders at 302 rupees a share.
The company blends and packages tea for export and is also into cold storage logistics, tea warehousing and insurance brokering.
A stock exchange filing said offer documents on the exit offer to be made by James Finlay Ltd. of London will be sent to the rest of the shareholders in due course.
Finlays Colombo has made arrangements for James Finlay Ltd. of Swire House, London to buy shares from shareholders at 302 rupees a share.
The company blends and packages tea for export and is also into cold storage logistics, tea warehousing and insurance brokering.
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