Walkers finalizing strategic plan with MTI

MTD Walkers PLC invited MTI Consulting to develop  their strategic plan for 2020 and this has reached the final stages of the exercise. The Colombo-based infrastructure company undertook this exercise to achieve greater heights in line with Sri Lanka’s economic development path.

The past few months have involved numerous workshops, site visits and one to one sessions with a cross section of people in the company from the managing director to the CEO’s, functional staff, GM’s, DGM’s & the front line workers. All of which gave MTI an intimate insight to the various businesses which acted as the foundation to developing the strategic plan for the company.

Speaking at the recently concluded strategic planning session, Group Executive Deputy Chairman of MTD Walkers PLC, Jehan Amaratunga said "The exercise with MTI has been effective in working towards restructuring the Group to support our strategic vision. The purpose of this strategy exercise is to harness synergies within the group through this immense growth period, maximizing stakeholder value, whilst diversifying revenue streams to sustain our performance going forward. To put this in context, over the last 5 years we have had 40% compound growth each year and hope to enhance this further. www.island.lk

Industrial Asphalts introduces full range of colour anti-corrosive paints

History is being made by Industrial Asphalts (Ceylon) PLC by introducing for the first time in Sri Lanka the full range of color to anti-corrosive paints. Upto now anti-corrosive paints were available only in 4 basic colors.

Britex®, the protective coatings range from Industrial Asphalts (Ceylon) PLC – IAC - has launched full range colored anti-corrosive paints for the Sri Lankan market. This pioneering move is as a result of the new restructuring being carried out at IAC, the Company’s newly established Product Development team had carried out detailed study of the products available in the market to identify and meet the customers evolving requirements.

After carrying out several market studies, the Product Development team using IAC’s newly establishing Research & Development facility went about to produce a range of color anticorrosive paints. Launched to the market in October 2014, the new color range is well received and is getting positive reviews.

The customer is now given a choice of 1,000+ colors to choose from and IAC is rolling out color pallets through its key dealers, enabling the customer to color match virtually any color. Britex® has been providing the market with its range of protective coatings for 50 years and over the years had developed a reputation for delivering quality which matches international standards at very reasonable prices.

IAC is the pioneer in bitumen based products in Sri Lanka, established in 1964 by a team of Sri Lankans who had the audacious dream of converting what was essentially an area monopolized by multinational companies.
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Sri Lankan stocks end steady; turnover moderate

Dec 30 (Reuters) - Sri Lankan stocks ended steady on Tuesday as gains in telecoms were offset by losses in construction shares, with active participation by foreign and institutional investors, stockbrokers said.

Turnover was moderate and sentiment was negative as political uncertainty ahead of the Jan. 8 presidential poll capped the gains.

The main stock index ended up 0.05 percent at 7,291.33.

"Buying by some foreign and institutional buying helped the market," a stockbroker said. "We expect the market to be sideways until we see some clear direction on the political front after the elections."

Turnover stood at 677.7 million rupees ($5.17 million), less than half of this year's daily average of 1.42 billion rupees, stock exchange data showed.

Net foreign inflows into stocks were 163.5 million rupees, extending net inflows to 22.05 billion rupees so far this year, exchange data showed.

Analysts said defections ahead of the election have hurt sentiment.

Since President Mahinda Rajapaksa announced snap elections last month, 23 legislators including former health minister Mithripala Sirisena, who is challenging Rajapaksa's bid for a third term, have defected. Two opposition legislators have joined the ruling party.

Political analysts see a tight race between Rajapaksa and Sirisena, whose New Democratic Front has promised to eliminate corruption and reduce prices of essential goods and fuel by cutting taxes. Rajapaksa has promised good governance and media freedom if he wins.,

Top fixed-line phone operator Sri Lanka Telecom gained 1.01 percent to 50.00 rupees, while top mobile phone operator Dialog Axiata rose 0.75 percent to 13.40 rupees. Construction firm Access Engineering fell 4.04 percent to 33.20 rupees. 

($1 = 131.1000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Sunil Nair)

Sri Lanka 79-mo T-bond yield 7.05 pct, 124-mo 7.88 pct

Sri Lanka’s Asian Alliance terminates rating agency agreement with Fitch

Dec 30,2014 (LBO) – Sri Lanka’s Asian Alliance Insurance PLC said it terminated the rating agency agreement with Fitch Ratings Lanka Ltd on 28th October 2014 as Fitch insisted on reviewing Asian Alliance’s rating due to a rating revision of ultimate parent – Softlogic Holdings PLC (SHL).

SHL was subsequently rated A- by Lanka Rating Agency Ltd, formerly RAM Ratings (Lanka) Ltd, the insurer said in a media release.

Fitch Ratings Lanka has withdrawn Asian Alliance Insurance PLC's National Insurer Financial Strength Rating and National Long-Term Rating of 'BBB(lka)', due to insufficient information to maintain them the rating agency said in a media release earlier this month.

The Sri Lanka-based company's Insurer Financial Strength Rating of 'B' has also been withdrawn. All the ratings were on Rating Watch Negative. Fitch said that they will no longer provide rating or analytical coverage for this issuer.

Responding to that Asian Alliance Insurance said,

“A rating is not a mandatory requirement for insurance companies in Sri Lanka and Asian Alliance had obtained both local and international ratings in order to demonstrate best practice,”

“Asian Alliance is in contact with leading international rating agencies to obtain an international rating which process is scheduled to be completed in 4 months.”

The company recorded PAT of 532 million rupees as at end September 2014 with 21 percent of Life premiums growth at 2.2 billion rupees, the company said.

Profits after tax were 511 million rupees for Life business and 21 million for the General insurance business has been reported for the first nine months of the year, the company said.

HNB to get 60% of the Rs 1.5 B Singer (Sri Lanka) Debenture issue

Hatton National Bank PLC will be allotted 60% of the debentures of the Rs 1.5 billion debenture issue of Singer (Sri Lanka) PLC.

This follows Singer ( Sri Lanka) PLC issue of 10 million Listed, Rated, Unsecured and Redeemable Senior Debentures of Rs 100 each, with an option of going to issue a further Rs 5 million debentures in the event of an oversubscription.

Of the remaining debentures, up to 100,000 of the balance applications, 100 % of the applied value would be allotted.

For over 100,000 of the balance applications, a minimum allotment of 100,000 debentures will be allotted and the balance debentures applied for would be allotted on a pro rata basis, rounded to the nearest 100. Any residues would be adjusted from the largest applicant.
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Nimal Perera buys Rs 3.4 m worth shares of Pan Asia Bank

Pan Asia Bank Chairman Nimal Perera has bought Rs 3.4 million worth of shares in the bank on December 23.

He has purchased 7,250 shares at Rs 24.90 in a transaction worth Rs 180,525 and a further 129,600 shares at Rs 25 worth Rs 3,240,000 on the same day.

The total transaction value of both deals have been Rs 3,420,525.00.  

He has informed the Board of Directors of the Bank of these two transactions on December 24.
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Tourism revenue tops Rs 2.48 billion this year

Shirajiv Sirimane (shirajivs@gmail.com)

Sri Lanka Tourism has earned record revenue of US$ 2.48 billion so far and also surpassed their target of 1.5 million arrivals.This is the first time in the history of Sri Lanka tourism industry that 1.5 million tourists have arrived in the island in 2014.

Sri Lanka has earned US$ 1.6 billion from tourism in the first nine months of this year. One of the main reasons for this leap in tourism is the permanent peace which has made Sri Lanka one of the safest countries in the world. After ending of the war, Sri Lanka has also received tremendous publicity by several leading magazines like National Geography, New York Times and several others.

In addition the promotions done in several countries including China also helped to increase arrivals.

In addition the anticipated opening of several world famous chain hotels like ShangriLa, Movenpick and Hyatt has also helped Sri Lanka to achieve the target of 2.5 million arrivals set for 2016.

To date India, Germany, UK and China remain as the top four markets for Sri Lanka.
www.dailynews.lk

Rise in industry, services sector growth

Sri Lanka has achieved Rs.911,064 million of total economic output as measured by Gross Domestic Product of the country at constant prices (2002) for the third quarter of 2014 (July, August, September) over Rs.846,102 million reported in third quarter of 2013 achieving a 7.7 percent of positive growth rate the Department of Census and Statistics (DCS) Sri Lanka said yesterday.

The three mainstays of the economy, Agriculture, Industries and Services sectors has shared the GDP by 10.1 percent, 31.2 percent and 58.7 percent respectively in the third quarter of 2014.

The sub sectors, 'Tea' and 'Vegetables' showed a striking increase of 10.8 percent and 11.5 percent respectively over the corresponding time period, while the sub sectors of 'Firewood and forestry', 'Coconut' and 'Highland crops' also have showed an increase in growth rates by 9.6 percent, 7.0 percent, 6.7 percent respectively during this period. The main sub sector of Paddy reported a high drop of growth by 35.5 percent in third quarter of 2014 compared to third quarter 2013.

Sub sectors of 'Rubber' and 'Inland fishery' has shown 32.0 and 24.8 percent decrease in third quarter 2014 compared to the third quarter of 2013.

Therefore the main sector of 'Agriculture, Livestock, Forestry' and 'Fishery' has reported a decline in growth rate by 2.0 percent in the third quarter of 2014, compared to third quarter 2013. The Industry sector all together showed an 12.6 percent increase within this period. The sub sectors of 'Mining and quarrying', and 'Manufacturing' has achieved 14.2 and 3 8.8 percent growth rates respectively.

The sub sectors of 'Electricity, gas and water' and 'Construction' have increased by 8.4 and 21.0 percent in third quarter 2014 compared to the third quarter 2013.

The Services sector, which is the largest contributor to the Gross Domestic Product contributes 58.7 percent, reported a 7.0 percent increase for the third quarter of 2014 with compare to the respective quarter in 2013.
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