Sri Lanka parliament approves tax breaks for Crown, JKH resorts

April 25, 2014 (LBO) - Sri Lanka's parliament has approved tax breaks for integrated resorts by Australia's Crown group and Colombo-based John Keells group.

Crown's James Packer is teaming up with local gaming tycoon Ravi Wijeratne to build the 350 million US dollar resort which will have a 400 room hotel, entertainment, shopping and conference facilities.

John Keells Holdings 650 million US dollar project will also have apartments.

The government's information office said the projects were passed with majorities of 68 and 65 votes.

Yesterday tax breaks for a third integrated resort by gaming entrepreneur Dhammika Perera was also passed by parliament.

The projects have drawn opposition fire for having gaming facilities with tax breaks.

Sri Lanka's Bhuddist nationalist JHU voted against, the proposals, reports said. Government ministers have insisted that no approvals have been given for casinos.

Under Sri Lanka's strategic investment law, large projects get sweeping tax breaks ranging from 10 year tax holidays, duty free capital goods and tax free salaries for expatriate executives, but each project has to be separately approved by parliament.

Sri Lankan shares edge down on large caps

(Reuters) - Sri Lankan shares ended a tad weaker on Friday, led by blue chips like John Keells Holdings PLC.

The island nation's main stock index fell 0.17 percent, or 10.32 points, to 6,167.81, retreating from early gains in the day.

The market has gained 3.34 percent so far this month as some retail investors started buying risky assets in the face of low interest rates.

Lower interest rates have helped the market gain in the past few weeks, stockbrokers said.

The benchmark 91-day treasury bill yield dropped to its lowest since January 2007 on Wednesday, data showed, a day after the central bank kept policy rates steady at multi-year lows.

The day's turnover was 906.3 million rupees, less than this year's daily average of 965.1 million rupees.

The bourse saw foreign outflows for the first time in 12 sessions. Offshore investors sold a net 8.2 million rupees ($62,800) worth of stocks in dull foreign activity, extending the net foreign outflow so far this year to 7.24 billion rupees.

Shares in Ceylon Tobacco Company PLC fell 3.14 percent to 1,065.50 rupees, while John Keells Holdings declined 1.09 percent to 234.90 rupees.

Stockbrokers said the market could see a positive momentum because of an impending parliament approval for a luxury resort project, worth up to $850 million, by Keells that will include hotels, casino, shopping malls, along with a similar project by Australian gaming tycoon James Packer's Crown Ltd.

Vallibel One, which rose 1.71 percent to 17.80 rupees, got parliamentary approval on Thursday to invest $300 million in an integrated luxury tourist resort, also including a casino, in the island nation's proposed exclusive gaming zone. 

($1 = 130.6150 Sri Lanka Rupees) 

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

Sri Lanka's Vallibel One to invest $300 mln hotel deal with casino

(Reuters) - Sri Lanka's Vallibel One will invest a $300 million in an integrated luxury tourist resort in the island nation's proposed exclusive gaming zone, the island nation's parliament documents showed on Thursday.

The 19 billion rupee ($145.47 million) diversified holdings firm is expected to raise $200 million from foreign investors and the rest locally for the project of 500 rooms, high-end shopping malls, high quality offices and associated services.

Officials from the state-run Board of Investment and ministry of investment promotion said company chairman Dhammika Perera owns three of the country's five casino licenses.

A new hotel project, Queensbury Leisure Ltd, has been looking to start a casino as well, they told Reuters.

The hotel will be located at D.R. Wijewardena Mawatha, an exclusive gaming zone in the commercial heart of the capital Colombo and near Australian gambling tycoon James Packer's proposed $400 million Crown Resorts group mixed-development project.

Amid strong protests by opposition and Buddhist religious leaders, President Mahinda Rajapaksa's ruling coalition approved the Queensbury Leisure project on Thursday in the parliament.

($1 = 130.6150 Sri Lanka rupees) 

(Reporting by Shihar Aneez; Editing by Tom Heneghan)

Sri Lanka stocks end down 0.2-pct

Apr 25, 2014 (LBO) - Sri Lanka's stocks end 0.17 percent lower with tobacco and diversified stocks losing ground amid thin foreign activity, brokers said.

The Colombo benchmark All Share Price Index closed 10.32 points lower at 6,167.81 down 0.17 percent. The S&P SL20 closed 6.59 points lower at 3,387.97, down 0.19 percent.

Turnover was 906.28 million rupees, down from 1.13 billion rupees a day earlier with 94 stocks close positive against 85 negative.

Sunshine Holdings closed 1.80 rupees higher at 30.90 rupees with two off market transactions of 330.00 million rupees contributing to 36 percent of the daily turnover.

All off market transactions accounted for 40 percent of the total turnover.

George Steuart Finance closed 26.70 rupees higher at 80.10 rupees, trading heavily on the market.

Foreign investors bought 77.35 million rupees worth shares while selling 85.56 million rupees worth shares.

Ceylon Tobacco Company closed 34.50 rupees lower at 1,065.50 rupees and John Keells Holdings closed 2.60 rupees lower at 234.90 rupees, contributing most to the index drop.

JKH’s W0022 warrants closed 1.00 rupee higher at 67.90 rupees and its W0023 warrants closed 60 cents lower at 73.00 rupees.

Bukit Darah closed 15.00 rupees lower at 580.00 rupees and Commercial Leasing and Finance closed 10 cents lower at 3.80 rupees.

Lion Brewery Ceylon closed 33.00 rupees higher at 423.10 rupees and Finlays Colombo closed 41.50 rupees higher at 299.80 rupees.

Central Finance Company closed 7.40 rupees higher at 192.90 rupees and NDB closed 3.80 rupees higher at 191.80 rupees.

DFCC closed 1.20 rupees higher at 157.70 rupees.