Breaking News : Fuel prices slashed

President Maithripala Sirisena, Prime Minister Ranil Wickremesinghe and the new Cabinet of Ministers have decided to reduce the prices of fuel with effect from midnight tonight.

This was confirmed to News1st by Minister of Power and Energy Patali Champika Ranawaka.

The revised prices are as follows,

Petrol (92 octane) – Rs. 117 [reduced by Rs.33]
(95 octane) – Rs. 128 [reduced by Rs.30]

Diesel – Rs. 95 [reduced by Rs.16]
Super Diesel – Rs.110 [reduced by Rs.23]

Kerosene – Rs. 65 [reduced by Rs.16]

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Sri Lanka shares fall to 3-wk low on budget jitters

Jan 21 (Reuters) - Sri Lankan shares fell to a three-week low on Wednesday amid low trading volumes as concern over political stability weighed on sentiment while investors awaited the new government's interim budget scheduled for next week.

The main stock index ended 0.6 percent lower, or down 44.10 points, at 7,324.40, its lowest since Dec. 31.

The day's turnover was 796.3 million rupees ($6.04 million), less than last year's daily average of 1.42 billion rupees, exchange data showed.

President Maithripala Sirisena's coalition has promised a 100-day programme to restore democracy and reform the economy before he dissolves parliament for a general election after April 23.

Sirisena's government will present an interim budget on Jan. 29 with an aim to cut cost of living.

"Local and foreign investors are waiting to see some kind of direction from the budget, especially on interest rates and foreign exchange rates," said a stockbroker.

Yields on short-term government securities edged up 1 basis point at Wednesday's auction of government securities.

Conglomerate John Keells Holdings Plc fell 2.38 percent and Caltex Lubricant Lanka Plc lost 3.99 percent, dragging down the index.

After the market closed, a government minister said the new administration had reappointed Thilak Karunaratne as chief of the Securities and Exchange Commission (SEC).

Karunaratne has been tasked with investigating past stock market deals suspected to involve corruption.

Stockbrokers said Karunaratne's appointment and the investigations would pull down the index down in the near term, but would instil confidence over the longer term.

Foreign investors, who bought a net 22.07 billion rupees worth of stocks last year, were net buyers of 69.1 million rupees worth shares on Wednesday.

($1 = 131.7500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)

Sri Lanka’s Lanka hospitals appoints a new chairman

Jan 21,2015 (LBO) – Sri Lanka’s Lanka Hospitals which was formerly known as Apollo appointed Gamini Wickramasinghe as the new chairman with effect from 19th this month, the company said in a stock exchange filling.

He was an independent non-executive director of the hospital prior to his appoint.

Wickramasinghe appointment follows the resignation of former Defence and Urban Development secretary Gotabayak Rajapaksa as chairman of the company with the defeat of President Mahinda Rajapaksa regime.

Lanka Hospitals Corporation Ltd commenced operations in Sri Lanka on June 2002, under the brand name of Apollo Hospitals, a part of the chain of Apollo Hospitals, India.

The hospital ended deals with Indian Apollo in 2009. The move comes in the wake of the hospital coming under state control following a court order.

In August a new board was appointed to the hospital including the head of Sri Lanka's defence establishment, Gotabaya Rajapaksa, a brother of President Mahinda Rajapaksa.

This was after Sri Lanka Insurance Corporation, which had taken control of the privately built Apollo Hospital, went back under state control.

Rajapaksa became a director with the appointment of a new board representing its controlling shareholder Sri Lanka Insurance Corporation.

Sri Lanka Treasury bill yields crepe up slightly

Jan 21,2015 (LBO) – Sri Lanka's Central Bank re-issue of 10,000 million rupees maturing Treasury bills was oversubscribed with bids amounting to 27,545 million rupees being received, the bank said.

It was decided to accept 10,891 million rupees from the auction.

The 12-month yield increased to 6.05 percent from 6.04 percent at the previous auction receiving 13,225 million rupees, data from the state debt office showed. The bank accepted 3,204 million rupees.

6-month yield was also up at 5.90 percent from 5.89 and 3,658 million rupees were accepted.

The debt office which is part of the island's central bank offered 3-month short term bills for the auction at 5.80 percent and 4,029 million rupees were accepted.

Sri Lanka to settle $500 mln bond maturing on Thursday - officials

Jan 21 (Reuters) - Sri Lanka will draw on its foreign currency reserves to settle a five-year $500 million sovereign bond maturing on Thursday, central bank officials said on Wednesday.

The officials said the authorities had opted against rolling over the issue.

"It'll be paid from the reserves," a central bank official told Reuters. Another official confirmed the move.

Foreign currency reserves declined by $474.33 million to $7.37 billion in the two months through December, the central bank data showed. (Reporting by Ranga Sirilal; editing by Simon Cameron-Moore)

Thilak Karunaratne to be re-appointed as SEC Chairman

Thilak Karunaratne will be re-appointed as Chairman of the Securities and Exchanges Commission of Sri Lanka, Minister Rajitha Senaratne told Ada Derana.

Tilak Karunaratne is a former Sri Lanka Freedom Party (SLFP) member who joined the United National Party (UNP) before joining the Sihala Urumaya. He is also a Chartered Chemist and was the Managing Director of Multiform Chemicals (Pvt) Ltd.

Earlier, Karunaratne submitted his resignation, on 17 August 2012, saying he had come under pressure from stock market players under investigation for stock manipulation.

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Shareholders vote down Rs. 825m Rights Issue of Orient Garments

Shareholders of Orient Garments Plc (OGL) yesterday voted down a planned Rs. 825 million worth Rights Issue saying its objectives may not achieve desired results.

The OGL held an Extraordinary General Meeting (EGM) yesterday to obtain shareholder approval for the one for one rights issue at Rs. 15 each. The move meant issuance of 55 million new shares. Funds raised via Rights were to be used to retire debt.

After a differences of opinion at the EGM, the resolution was put to vote. Key shareholders including Dr. T. Senthilverl and a few others along with proxies voted against. The resolution was voted down by 57% of those present at EGM including those holding proxies. Votes in favour was 43%.

As at September 2014, Dr. Senthilverl held 45.4% stake whilst management and single largest shareholder Adam Investments collectively held 39.8%.

OGL previously said the rights issue was called to infuse much needed capital to meet overdue statutory payments and other outstanding which have been hampering the progress of the company.

OGL said the rights issue is primarily to safeguard the employment of over 4,000 faithful workers who have stood by the company through thick and thin and to drive the operations forward with renewed vigour and excellence.

Since the takeover on 8 January 2014, OGL has spruced up its compliance standards, increased the number of machines in operation by 76% – from 1,100 to 1,940 machines –and carried out an employee skill upgrade initiative resulting in improved efficiency and greater confidence by its highly quality-conscious international buyers. The revamped marketing department has built a strong confirmed order book securing a bright future for the company, OGL said in a statement prior to the EGM.
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