CEAT Kelani commissions state-of-the-art radial plant

A milestone was achieved today in the manufacture of tyres in Sri Lanka with the official inauguration of a new hi-tech production facility for radial tyres for passenger cars and Sports Utility Vehicles (SUVs) at CEAT Kelani Holdings, the country’s leading tyre maker.

Economic Development Minister Basil Rajapaksa led a team of government ministers to this milestone event. Since 2009, theCEAT Kelani joint venture has invested Rs. 2.5 billion in enhancing capacity, modernising its factory and setting up this new radial plant.

Seamlessly integrated with the existing CEAT Kelani manufacturing complex at Kelaniya, the new radial tyre production facility enables the company to augment its radial tyre building and curing capacity by 70 per cent to 450,000 tyres a year, thereby substituting more than 60 per cent of the country’s imports in this category.

Besides contributing to a substantial saving of foreign exchange, the new plant would also cater to CEAT Kelani’s exports of radial tyres from Sri Lanka. More than a third of current radial tyre production fromthe company’s production facility is exported.

The formal opening of the new plant saw Minister Basil Rajapaksa, accompanied by Kumara Welgama, Minister of Transport, Johnston Fernando, Minister of Co-operatives & Internal Trade, Dr Mervyn Silva, Minister of Public Relations & Public Affairs and other dignitaries, cut the traditional ribbon, unveil a commemorative plaque, start up a tyre building machine and witness a tyre coming out of a curing press.
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Sri Lankan stocks end steady at near 2-week high; Keells boost turnover

(Reuters) - Sri Lankan shares ended little changed on Wednesday at a near two-week closing high as gains in banking shares offset losses in palm oil producers, while buying in conglomerate John Keells Holdings Plc boosted the turnover.

Analysts said the market could undergo a technical correction as retail investors are waiting for profit-taking.

The main stock index ended 0.28 points weaker at 6,293.36, edging down from its highest close since May 29 hit on Tuesday.

Continued foreign buying and expectations of interest rates coming further down will boost sentiment and the market has been on a rising trend since late February, analysts said.

The bourse saw a net foreign inflow for the 10th straight session. Foreign investors bought 262.9 million rupees ($2.02 million) worth of shares on Wednesday, extending the net inflow for the past 10 days to 3.53 billion rupees worth of shares.

They have been net buyers of 5.37 billion rupees so far this year.

Turnover was 1.41 billion rupees, its highest since May 16 and more than this year's daily average of 1.01 billion rupees.

Analysts also said they expect retail profit-taking in the coming days as the market has been on the rise for a long time and retail investors have been waiting for better price to sell. We see some selling pressure on certain shares.

Analysts said the market expects a further fall in interest rates after central bank governor Ajith Nivard Cabraal told Reuters on May 30 that the central bank was creating room to cut interest rates further.

The central bank will announce its June monetary policy rates on June 18.

Shares in palm oil investor Bukit Darah Plc, which dragged the overall index, fell 2.82 percent to 631.70 rupees, while financial service provider Lanka Orix Leasing Co Plc rose 2.71 percent to 87.30 rupees a share.

Market heavyweight John Keells Holdings, which accounted for 54.7 percent of the days turnover, ended flat at 234.50 rupees after Capital Alliance in a note recommended investors to sell the conglomerate's shares, citing lower-than-expected earnings. 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)