Sri Lanka’s Odel in US$106mn property project

ECONOMYNEXT – Sri Lankan retailer Odel Plc said it plans to do a mixed developed property project with an investment of $105.7 million, where its main outlet is located at Ward Place in the capital Colombo.

The company said, in a stock exchange filing, that it had entered into an agreement with the Board of Investment for the project that is to be completed in three years.

In a separate announcement, Odel said it has entered into a deal with Shangri-La Hotels Lanka to lease 52,454 square feet of retail space in ‘The Mall at One Galle Face’, which is currently under construction.

The lease is initially for five years with an option to renew it for another five years.

Odel earlier announced that it has leased up to 39,560 square feet of space in Colombo City Centre Mall, part of a mixed-use development project being built in the capital by Abans Group in a joint venture with Singapore’s Silver Needle Hospitality.

Sri Lanka 01-year Treasuries yield falls to 10.39-pct

ECONOMYNEXT – The yield on one-year Sri Lankan Treasury Bills fell 06 basis points to 10.39 percent at an auction Wednesday from last week while the 03-month bill yield remained steady, the public debt department of the central bank said.

The yield on the 06-month Treasury Bill fell 03 basis points to 10.23 percent while the yield on the 03-month bill stayed steady at 9.60 percent, a statement said.

The public debt office got bids worth Rs88 billion and accepted bids worth Rs29 billion.

Sri Lankan shares slip from 18-month high on profit-taking

Reuters: Sri Lankan stocks edged down on Tuesday from its 18-month closing high hit in the previous session as investors booked profits in blue chips, while concerns over a proposed tax bill weighed on overall sentiment.

The Colombo stock index ended 0.15 percent weaker at 6,748.15, slipping from its highest close since Jan 7, 2016 hit on Monday.

"The index is down on profit-taking, but the good thing is that retail participation has increased," said Dimantha Mathew, head of research, First Capital Holdings PLC.

"There was less foreign participation today."

Foreign investors net bought 42.3 million rupees ($275,391) worth of shares on Tuesday, extending their year-to-date net inflows to 22.9 billion rupees worth of equities.

Analysts said new foreign investors have been buying Sri Lankan shares since the Pakistani bourse was upgraded to emerging market status from frontier market.

The day's turnover was 559.7 million rupees, less than this year's daily average of 912.7 million rupees.

In May, index provider MSCI announced changes to its indexes as a result of its semi-annual market reclassification, including reclassifying Pakistan as an emerging market from frontier market, and the addition of 57 securities and removal of 28 securities from its All-Country World Index .

Brokers said local investors have been waiting for some clarity on a proposed inland revenue legislation, which a few companies expect will result in higher costs of production.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the government to submit to parliament a new Inland Revenue Act.

Shares of Ceylon Tea Services Plc dived 13.4 percent, Melstacorp Ltd ended 1.8 percent weaker, while conglomerate John Keells Holdings Plc closed 0.2 percent lower.

($1 = 153.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

Sri Lankan shares reach 18-month closing high in thin trade

Reuters: Sri Lankan stocks rose on Monday to reach an 18-month closing high led by telecom and diversified shares, but volume was thin as foreign trading low.

Domestic investors, however, cautiously acquired shares amid concern over a proposed tax bill.

The day's turnover was 427.9 million rupees, less than half of this year's daily average of 915.5 million rupees.

The Colombo stock index ended 0.31 percent higher at 6,758.24, its highest close since Jan 7, 2016.

"There was less foreign participation today, which resulted in lower turnover," said Hussain Gani, deputy CEO of Softlogic Stockbrokers.

"As long as the interest rate remains the same, we expect the market to be bullish."

Foreign investors net bought 101.1 million Sri Lankan rupees($658,203) worth of shares on Monday, extending their year-to-date net inflows to 22.8 billion rupees worth of equities.

Analysts said new foreign investors have been buying Sri Lankan shares since the Pakistani bourse was upgraded to emerging market status from frontier market.

In May, index provider MSCI announced changes to its indexes as a result of its semi-annual market reclassification, including reclassifying Pakistan as an emerging market from frontier market, and the addition of 57 securities and removal of 28 securities from its All-Country World Index .

Brokers said local investors have been waiting for some clarity on a proposed inland revenue legislation, which some companies expect will result in higher costs of production.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the government to submit to parliament a new Inland Revenue Act.

Shares of Sri Lanka Telecom Plc rose 1.6 percent, while Ceylon Tobacco Company Plc rose 0.5 percent and Dialog Axiata Plc closed 0.8 percent higher. 

($1 = 153.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Robert Birsel)

Sri Lankan shares hit one-week closing high on foreign buying

Reuters: Sri Lankan stocks on Friday ended at their highest in a week, underpinned by manufacturing and diversified shares while offshore investors continued to be net buyers.

Local investors, however, cautiously acquired shares amid concerns over a proposed tax bill.

Foreign investors net bought 179.9 million rupees ($1.17 million) worth of shares on Friday, extending their year-to-date net inflows to 22.7 billion rupees worth of equities.

The Colombo stock index ended 0.34 percent higher at 6,737.50, its highest close since June 30. The bourse lost 0.14 percent for the week.

"There were a lot of retail activities, and with that the mid-cap counters got activated other than the blue chips," said Dimantha Mathew, head of research, First Capital Holdings PLC.

"Foreign segment remained active and it added on to the turnover."

Analysts said new foreign investors are buying Sri Lankan shares since the Pakistan bourse was upgraded to emerging market from frontier market.

In May, index provider MSCI announced changes to its indexes as a result of its semi-annual market reclassification, including reclassifying Pakistan as an emerging market from frontier market status, and the addition of 57 securities and removal of 28 securities from its All-Country World Index .

The day's turnover was 937.4 million rupees, more than this year's daily average of 919.4 million rupees.

Brokers said local investors have been waiting for some clarity on the proposed inland revenue legislation, which some companies expect will result in higher cost of production.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the government to submit to parliament a new Inland Revenue Act.

Shares of Richard Pieris Plc ended 9.6 percent higher, while conglomerate John Keells Holdings Plc closed 0.6 percent higher.

($1 = 153.5500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

Sri Lanka 01-year Treasuries yield falls

ECONOMYNEXT – The yield on one-year Sri Lankan Treasury Bills fell 02 basis points to 10.45 percent at an auction Wednesday from last week, the public debt depart of the central bank said.

The yield on the 06-month Treasury Bill fell 03 basis points to 10.26 percent while the yield on the 03-month bill stayed steady at 9.60 percent, a statement said.

The public debt office got bids worth Rs86.3 billion and accepted bids worth Rs30.9 billion.

Sri Lanka gilt dealer Perpetual Treasuries barred from trading

ECONOMYNEXT - Sri Lanka's Perpetual Treasuries Limited, a primary dealer in government securities involved in alleged securities scam has been barred from trading for six months by the regulator.

The central bank said it was suspending Perpetual Treasuries for six months starting from July 06, 2017.

"The Central Bank will take necessary measures to ensure that this regulatory action does not have a disruptive impact on the market," the regulator said.

"Action will also be taken to facilitate the handling of the interests of the customers and counterparties of PTL in an orderly manner."

Perpetual Treasuries in connected to Arjun Alloysius, the son-in-law of ex Central Bank Governor Arjuna Mahendran, who was sacked by President Maithripala Sirisena over controversial deals made by the firms.