Sri Lankan stocks at 6-wk closing low on profit taking; earnings awaited

(Reuters) - Sri Lankan stocks fell for the fourth straight session on Tuesday to hit a 6-week closing low, a day after the government announced it would hold a presidential election in January, nearly two years ahead of schedule. Most local investors offloaded positions to cut losses, dealers said.

President Mahinda Rajapaksa is expected to run for a third six-year term. The poll schedule announcement came amid signs Rajapaksa's popularity is fading after accusations that his party is abusing power.

Analysts said investors were waiting for cues from the 2015 budget scheduled for Friday and a raft of September quarterly earnings expected next week.

Sri Lanka's main stock index fell 0.72 percent, or 52.29 points, to 7,161.16, its lowest since Sept. 9.

"Some people are taking profits and there is no strong local buying. Some local retail investors also sold their shares to cut losses as the index has been on a downward trend," said Danushka Samarasinghe, COO at Softlogic Stockbrokers.

Stockbrokers said trading in local shares may be volatile due to the revised poll schedule and a possible bottoming out of interest rates.

The day's turnover was 897.4 million rupees ($6.87 million), less than this year's daily average of 1.36 billion rupees.

Foreign investors bought a net 165.1 million rupees worth of shares on Tuesday, extending the year-to-date net foreign inflow to 10.3 billion rupees, exchange data showed.

The country's biggest listed lender Commercial Bank of Ceylon Plc, which led the overall fall of the index, lost 1.43 percent at 158.60 rupees.

Shares in conglomerate John Keells Holdings fell 0.20 percent to 246.50 rupees, while Dialog Axiata Plc ended 0.83 percent down at 12 rupees.

Both the currency and stock markets will be closed for a holiday on Wednesday. Trading will resume on Thursday. 

($1 = 130.7000 Sri Lankan rupee) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

Sri Lanka stocks close down 0.7-pct

Oct 21, 2014 (LBO) - Sri Lanka's stocks closed 0.72 percent lower with banking stocks losing ground despite net foreign buying, brokers said.

The Colombo benchmark All Share Price Index closed 52.29 points lower at 7,161.16, down 0.72 percent. The S&P SL20 closed 25.09 points lower at 3,983.07, down 0.63 percent.

Turnover was 898.24 million rupees, up from 864.49 million rupees a day earlier with 35 stocks closed positive against 160 negative.

First Capital Holdings closed 2.50 rupees lower at 50.40 rupees and Madulsima Plantations closed 1.20 rupees higher at 18.00 rupees, attracting most number of trades during the day.

Foreign investors bought 439.23 million rupees worth shares while selling 274.16 million rupees worth shares.

Commercial Bank of Ceylon closed 2.30 rupees lower at 158.60 rupees and Commercial Leasing and Finance closed 20 cents lower at 4.60 rupees, contributing most to the index drop.

Ceylinco Insurance closed 48.00 rupees lower at 1,302.00 rupees and Cargills Ceylon closed 4.00 rupees lower at 156.00 rupees.

Dialog Axiata closed 10 cents lower at 12.00 rupees.

Sampath, ‘Best Retail’, ‘Best Commercial’ Bank

Sampath Bank was recently feted as the ‘Best Commercial Bank’ and the ‘Best Retail Bank’ in Sri Lanka by the acclaimed UK based World Finance Magazine.

The awards recognize excellence achieved by banks against several criteria, including; overall performance, financial ratios, variety and clarity of products and services, corporate governance, alternative financial products offering, parallel market interaction and competitive strategy.

The World Finance Magazine 2014 has endorsed Sampath Bank as the third largest and most impressive private sector bank on the island, with close to three decades of experience and steadily increasing deposit volume.

Commenting on this award Sampath Bank Managing Director Aravinda Perera said Sampath Bank is honoured to be recognized as a formidable competitor, amidst the high competition and increasingly advanced customer needs in today's financial market.

“This recognition would not have been possible without the overwhelming support given to us by our customers. We at Sampath Bank would like to sincerely extend our gratitude to our loyal customers and thank them for their loyalty and supportshown to us throughout. The bank guarantees a continued commitment to our customers with our constantly evolving and innovative products and services,” Perera said
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Sanasa Bank rights issue

Sanasa Development Bank PLC made initial announcements during the beginning of the second week of October for the rights issue of one new ordinary share for every two existing ordinary shares held. The issue price is noted at Rs. 80 and the quantity of shares offered was 12,587,661.

Trading is scheduled to commence on December 4 with renunciations to be noted by December 11. The last date for acceptance and payment will be December 12. Sanasa Development Bank is a unique bank committed to uplifting the standards of living for low income Sri Lankan families through a range of micro finance activities. The ownership of the bank is confined to the Sanasa Movement.

The clientele of the bank, among others, consists of farmers, fisherman, vendors and labourers and small business owners.
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Govt. passes new laws restricting sale of land to foreigners

* Two separate regulations for freehold and leasehold transactions

By Ashwin Hemmathagama Lobby Correspondent

New laws were passed yesterday in Parliament making necessary provisions to stipulate restrictions on the sale of land to foreigners.

The new regulations cover foreign companies and certain institutions with majority foreign shareholdings subjected to certain exemptions.

According to the Government, new laws were needed to continue development policies being promoted in the backdrop of a globally-integrated environment where prudent use of land is a must.

Moving the Bill, Minister of International Monetary Co-operation and Deputy Minister of Finance and Planning Dr. Sarath Amunugama highlighted the requirement of a national policy to regulate land in Sri Lanka.

“The proposed laws will limit the ownership of the lands of this country to Sri Lankans. In par with Monetary Law Act of 1983, 100% tax was imposed on the transfers of land ownership to foreigners. This was repelled in 2002 by then Government allowing lands to get transferred to non-nationals. After we came to power, in 2004 we imposed the 100% tax, which lead to certain complications demanding a national policy. The new laws will provide two separate regulations for freehold and leasehold transactions,” said Minister Dr. Amunugama.

The provisions of the Act are expected to come into operation with effect from 1 January 2013 prohibiting transfer of title of any land to a foreigner, to a company incorporated in Sri Lanka under the Companies Act where any foreign shareholding exceeds 50%, and to a fully owned foreign company.

However, any land title which is transferred to a Diplomatic Mission, to international, multilateral or bilateral organisations in terms of the respective Act, condominium parcels situated on or above the fourth floor of a building specified under the Apartment Ownership Law, lands transferred to foreign investors by Cabinet decisions, any land title of which is transferred by intestacy, gift or testamentary disposition to a next-of-kin who is a foreigner, any lands transferred to dual citizens and titles transferred to banks with over 50% foreign shareholdings will be exempted.

Joining the debate, UNP Member of Parliament Sajith Premadasa commended the ruling party for drafting a Bill to safeguard the lands in Sri Lanka regardless of the wide-apart declaratory policy and the action policy of Government.

“Minister talks about a broad picture whereas Chinese are given land neglecting the laws. These companies enjoy considerable tax exemptions compared to levies imposed on locals. Is this the development you propose? The company you engaged in building the Colombo Port City is blacklisted by the World Bank and the ADB for fraud in Philippines, Bangladesh, Malaysia, Uganda, and Papua New Guinea. We are not against the laws tabled to limit the foreigners from purchasing land in Sri Lanka. But remember to secure the land rights of the locals,” said Premadasa.
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CB Governor to inaugurate IFN Forum 2014

The Central Bank Governor Ajith Nivard Cabraal will officially inaugurate theIslamic Finance News (IFN)Forum2014 which will be held today at Cinnamon Grand.

The IFN Forum will be held under the patronage of the Governor for the third consecutive year and will be attended by a strong delegation of practitioners, scholars, industry experts and regulatory officials from local and overseas markets.

Maldives Monetary Authority Governor DrAzeema Adam is also scheduled to attend the forum as a special guest.

With the resounding success achieved during last two year’s events, Red Money Group of Malaysia has once again collaborated with the local Islamic banking pioneer Amãna Bank to host the IFN Forum in Sri Lanka.

The event agenda will consist of the Key Note address delivered by the Central Bank Governor, Cabraal as well as panel discussions and presentations by eminent speakers representing the Islamic finance industry and regulatory bodies who will discuss the issues, challenges and potential of the industry.

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