Finance Ministry studying issue of vehicle permits to Sri Lanka’s overseas workers

The Finance Ministry is currently involved in a special study of the procedures to issue duty free vehicle permits to Sri Lankans working overseas and remitting valuable foreign exchange to the country as proposed through the 2015 Budget proposals as a mark of gratitude for their services.

The Budget has proposed that overseas workers could purchase a vehicle duty free to the value of 60 per cent of their remittances to Sri Lanka.

When adaderanabiz.lk tried to find out the details of this procedure, it was revealed that the Finance Ministry was already in the process of examining several aspects to implement this proposal.

The attention of the Finance Ministry has been drawn to whether this duty free concession is valid retrospectively so as to cover those who have remitted foreign exchange to Sri Lanka in the past as well or whether this concession is valid only after a certain period.

Meanwhile, the Ministry’s attention is also focused on whether this concession is limited to a certain ceiling of foreign exchange remittances and also towards implementing this proposal at the earliest.

Sri Lankan overseas workers have remitted USD 548 million to Sri Lanka in August which is an increase of 1.5 per cent when compared to August 2013.

During the first eight months of this year, Sri Lankans employed overseas have remitted USD 4.5 billion as foreign exchange to the country, which is an increase of 10 per cent when compared to last year. 

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Sri Lankan stocks end at over 1-wk high; foreign buying boosts turnover

(Reuters) - Sri Lankan stocks ended a tad firmer at a more-than-one-week high on Tuesday, gaining for a fourth straight session with foreign buying boosting sentiment.

Sri Lanka's main stock index ended up 0.08 percent, or 6.04 points, to 7,227.12, its highest close since Oct. 17.

"Market is going slow these days with low retail participation," said Reshan Wediwardana, research analyst at First Capital Equities (Pvt) Ltd.

The market saw a net foreign inflow of 934.7 million rupees on Tuesday, extending the year-to-date net foreign inflow to 11.75 billion rupees worth of shares, exchange data showed.

Analysts said the poor retail participation was due to the lower-than-expected stimulus in the budget, while the market awaited further clarity on the 2015 budget announced by President Mahinda Rajapaksa last Friday.

Rajapaksa, also the country's finance minister, unveiled a budget that sought to trim value-added tax and cut the deficit while providing a range of handouts, mainly for rural communities.

The day's turnover was 1.66 billion rupees ($12.69 million), more than this year's daily average of 1.36 billion rupees.

The gains were led by thin-volume trade in Ceylon Tobacco Company Plc, which rose 1.13 percent to 1,150 rupees.

Shares in leading mobile operator Dialog Axiata Plc rose 0.82 percent to 12.30 rupees.

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

(1 US dollar = 130.8500 Sri Lankan rupee) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

Sri Lanka to issue $500 mln sovereign bond next year - Cental Bank

Oct 27 (Reuters) - Sri Lanka will issue a 500 million dollar sovereign bond next year to roll over a maturing bond issued in 2009, a top central bank official said on Monday.

"There will be a sovereign bond issue next year. There is a bond maturing next year and we have to roll out," deputy central bank governor Nandalal Weerasinghe said at a Reuters post-budget forum in Colombo. 

(Reporting by Shihar Aneez and Ranga Sirilal; Editing by Alison Williams)

Sri Lanka Telecom expects $30.6 mln profit in 2014 - Govt

* Profit to be $32.1 mln in 2015, $33.8 mln in 2016

* Govt owns majority shares in telco

Oct 28 (Reuters) - Sri Lanka's leading fixed line telephone operator Sri Lanka Telecom will post a net profit of 4 billion rupees ($30.58 million) in 2014 and 4.2 billion rupees next year, a document tabled in the country's parliament showed on Tuesday.

Sri Lanka Telecom, in which the government is the major stakeholder, is also expecting a net profit of 4.43 billion rupees in 2016, a document presented to parliament by the Ministry of Telecommunication and Information Technology showed.

It posted a 3.64-billion-rupee profit in the year ended 2013 and 3.25 billion rupees in 2012.

The document, tabled in parliament in response to questions raised by the opposition, also said the company's total short- to long-term borrowing was 7.84 billion rupees.

The company posted 1.32 billion in profit for the six months ended June 30, a 4 percent drop from the year ago period, stock exchange data showed.

Malaysia's Global Telecommunications Holdings NV, a subsidiary of Malaysia's Maxis, the second largest investor in the firm, holds 45 percent in the company.

Sri Lanka Telecom shares ended steady at 50 rupees on Tuesday.

($1 = 130.8000 Sri Lankan rupee)

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

Sri Lanka stocks close higher

Oct 28, 2014 (LBO) - Sri Lanka's stocks closed 0.08 percent higher with tobacco and beverage stocks gaining amid strong foreign buying into diversified holdings, brokers said.

The Colombo benchmark All Share Price Index closed 6.04 points higher at 7,227.12, up 0.08 percent. The S&P SL20 closed 6.12 points lower at 4,008.10, down 0.15 percent.

Turnover was 1.66 billion rupees, up from 986.45 million rupees a day earlier with 95 stocks closed positive against 97 negative.

John Keells Holdings closed 80 cents lower at 249.10 rupees with eight off market transactions of 481.76 million rupees contributing 29 percent of the turnover.

The aggregate value of all off-the-floor deals represented 44 percent of the daily turnover.

Bogala Graphite Lanka closed 6.70 rupees higher at 35.30 rupees and Watawala Plantations closed 20 cents higher at 20.20 rupees, attracting most number of trades during the day.

Foreign investors bought 1.16 billion rupees worth shares while selling 228.16 million rupees worth shares.

Ceylon Tobacco Company closed 12.90 rupees higher at 1,150.00 rupees and Ceylon Cold Stores closed 15.20 rupees higher at 264.60 rupees, contributing most to the index gain.

Lanka Orix Leasing Company closed 2.30 rupees higher at 87.20 rupees and Cargills Ceylon closed 2.50 rupees higher at 155.00 rupees.

Dialog Axiata closed 10 cents higher at 12.30 rupees.

Central Depository System frustrates shareholders

By J. Kurukulasuriya

Ceylon Finance Today: The Central Depositary System (CDS) of the Colombo Stock Exchange is mired in officialdom and over regulation according to reliable market sources. Shareholders whose parents or relatives have died leaving them as heirs to shares in companies listed on the stock exchange are being left in limbo.

One leading stock brokering firm told Ceylon FT that several of their clients have been unable to sell shares which they inherited, due to 'frivolous' objections by the CDS. For example, the CDS's own rules require an Administrator of a deceased person's Estate to submit copies of the letter of Administration with the 'consent to sell' signatures of the joint heirs, if any. In one instance where such documents were submitted, the CDS rejected them merely because the names of the joint heirs had been numbered as 1, 2, 3 in pencil. In another instance where two heirs jointly requested that the shares they inherited be transferred to their names as joint holders, the CDS refused. This was in spite of a load of paperwork being complied with. They now have no means by which they can dispose of their inheritance.

Evidence of shares languishing in the name of deceased persons can be seen by scrutinizing the lists of 'Top Twenty shareholders' which the listed companies are required to disclose in their Annual and quarterly reports. The 'Top Twenty' often include the names of many persons specified as deceased persons, represented by their Administrators or Executors. In many instances these are foreigners who find it doubly difficult to get through the CDS's red tape.

It is also frustrating for shareholders to identify the persons at the CDS making apparently high handed decisions because they do not disclose their names in correspondence, and make it a point to sign letters illegibly.

At a recent CDS investor's forum which lasted several days, and aimed at encouraging more ordinary investors to put their money into listed shares, the CDS top managers talked of its transparency and efficiency. This is not the reality for those dealing with the CDS.

In a move to back up recent claims by SEC Chairman Nalaka Godahewa, that shortcomings in the Colombo Stock Exchange are being rectified, the CSC and Securities and Exchange Commission (SEC) has commissioned an independent study of the stock exchange.

The purpose of the study — which is being conducted by Research Consultancy Bureau (Pvt) Ltd., an independent research group, is to "explore and understand the views of the local investors," and all CDS account holders have been contacted. After initial contact some months ago, the study has not proceeded.
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LOLC goes for first-ever listed debenture issue to raise Rs. 5 billion

Lanka Orix Leasing Company Plc (LOLC) has announced a listed debenture issue to raise Rs. 5 billion.

The company said it will issue 50 million senior unsecured redeemable rated debentures at Rs. 100 each. The Colombo Stock Exchange has approved in principle an application for the listing of the debentures.

Debentures will be up for subscription from 7 November whilst the official opening is 18 November.

First Capital Ltd. is the manager to the issue.

The funds raised through the debentures will be utilised for the retirement of short-term debt of LOLC.

This is the first-ever listed debenture issue of LOLC. In 2011 it listed 7.5 million four (6.1 million) and five year (1.4 million) debentures of Rs. 100 each via an introduction. These debentures mature in 2015 and 2016 respectively.

The four-year debenture carried a coupon interest rate of 11.70% per annum and the five-year instrument carried 11.90% per annum. Allotments were made to qualified investors by way of a private placement.

As at 30 June 2014, LOLC at company level had Rs. 15.3 billion in interest bearing borrowings down from Rs. 21 billion from a year earlier but higher in comparison to Rs. 13.8 billion as at end FY14.

Assets amounted to Rs. 50 billion as at June 2014 and liabilities were Rs. 16 billion.

LOLC Group pre-tax profit in the June quarter was Rs. 1.35 billion, up by 45%, whilst after tax profit grew by a similar percentage to Rs. 1 billion. Profit attributable to equity holders of the company was Rs. 926 million, up from Rs. 152 million in the first quarter of FY14. (SAA)
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