Sri Lanka shares climb to one-week high with strong turnover

Feb 6 (Reuters) - Sri Lankan shares ended at a one-week high on Friday with strong turnover despite foreign outflows as investors snapped up beaten down blue-chips like John Keells Holdings Plc and Commercial Bank of Ceylon Plc.

The main stock index ended up 1.64 percent, or 115.44 points, at 7,162.75, its highest close since Jan.30.

"Investors are in a positive mindset with the cabinet deciding to go ahead with Chinese port city project. This means the new government is continuing the projects of the past administration," said Reshan Wediwardana, research analyst at First Capital Equities (Pvt) Ltd.

On Thursday, the government said it would allow a $1.5 billion "port city" deal with China to go ahead, apparently dropping its earlier threats to cancel the project, approved by the last government.

Friday's turnover was 2.07 billion rupees ($15.6 million), well above last year's daily average of 1.42 billion rupees, exchange data showed.

John Keells Holdings gained 3.67 percent, while Commercial Bank of Ceylon Plc, the country's biggest listed lender, rose 3.7 percent.

Foreign investors sold a net 174.3 million rupees worth of shares, but have net bought 733.3 million rupees in equities this year. The bourse had net foreign inflows of 22.07 billion rupees last year.

The index fell 5.1 percent in the two sessions through Monday after the new government announced a budget that imposed a one-time 'super gain tax' of 25 percent on companies or individuals who made more than 2 billion rupees in profit in 2013/2014. 

($1 = 132.8000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

Haycarb records 3Q Turnover of Rs. 8 billion and PBT of Rs. 601 million

Haycarb PLC, the Sri Lankan multinational of the Hayleys Group, reported a turnover of Rs. 8 billion and profit before tax of Rs. 601 million for the 9 months ending 31st December 2014. The profit after tax stood at Rs. 508 million. 

Haycarb PLC Managing Director, Mr. Rajitha Kariyawasan said, “continuation of the high raw material prices in Sri Lanka and India and the inability to pass on the resultant cost increases to its customers impacted the profitability of the Sri Lanka operations significantly. He further explained that the requirement to increase product prices is evaluated and balanced against the need to retain key customer accounts and strategies formulated to capture new markets to grow the top line. The depreciation of the currencies in some of Haycarb’s key markets, notably the depreciation of the Euro, Australian Dollar and Japanese Yen resulted in exertion of yet more pressure on product pricing. 

The challenges on cost increases were offset to some degree from cost reductions achieved through lean initiatives that helped reduce energy costs in manufacturing operations and increase productivity. The Company is also looking into optimal usage and rebalancing of its manufacturing capacity along with restructuring measures in the supply chain to reduce costs in the medium term. Haycarb continues to invest in development and commercialization of specialized value added products, market expansion and brand presence. 

The Environmental Engineering Solutions arm, Puritas (Pvt) Ltd., made significant progress during the 9 months under review as it increased its local and regional presence for small to medium sized purification projects. This sector will remain a key focus for diversification and future growth of the Group. 

Mr. Kariyawasan also said, “The industry outlook remains strong given the increasing demand for purification solutions globally. Haycarb is a strong and a leading player renowned for its product and technical excellence backed by a formidable supply chain and marketing network. We remain confident of the medium and long term outlook.”

 Haycarb continues to support Maithreepura, a village in Padaviya in the North Central Province, where it implemented a key CSR project to provide purified drinking water to a community of over 1500 families affected by the Chronic Kidney disease (CKD) by constructing and commissioning a Water Purification Plant that includes a Reverse Osmosis (RO) system coupled with an extensive water distribution system. It is with great pleasure and satisfaction that we note other business sectors of the Hayleys Group funding five more villages/projects coordinated and managed through Puritas, to cover a total of six villages under the same Group initiative “Puritas Sath Diyawara”. 

Haycarb is the pioneer manufacturer of coconut shell activated carbon in any coconut producing country with manufacturing facilities in Sri Lanka, Thailand and Indonesia supported by marketing offices in the USA, UK and Australia, contributing net foreign exchange revenues with its value adding processes whilst remaining a leading and technologically superior manufacturer in its chosen segment. 

The Board of Directors of Haycarb PLC comprises of Messrs Mohan Pandithage – Chairman, Rajitha Kariyawasan – Managing Director, Arjun Senaratna, Sarath Ganegoda, Dhammika Perera, Mrs. Jeevani Abeyratne, Dushantha Ranaraja, Nimal Perera, Dr. Sarath Abayawardana and Sujeewa Rajapakse. 

Shaw Wallace acquires 50% shareholding of Richlife Dairies

Shaw Wallace Ceylon Limited, a subsidiary of Renuka Foods Plc has acquired 20,290,000 ordinary shares which amounts to 50 per cent shareholding of Richlife Dairies Limited from Renuka Agri Foods Plc for Rs. 605 million.

Shaw Wallace Ceylon Ltd. will integrate Richlife Dairies Ltd into its operations. www.adaderana.lk.

Sri Lanka ditches Dominique Strauss-Khan as adviser

Sri Lanka’s new government has dropped the services of Dominique Strauss-Kahn like a bad habit — cutting ties with the former IMF chief in the wake of his sensational pimping trial, officials said.

Despite paying him $750,000 to become an adviser to help attract foreign investment, the South Asian island country announced Thursday that it had kicked the 65-year-old to the curb, AFP reports.

“Our (new) government does not feel it necessary to get his services,” said cabinet spokesman Rajitha Senaratne. “We can manage on our own.”

Strauss-Kahn is accused of being at the center of a lavish prostitution ring that held lunchtime sex romps in Brussels, Paris and Washington.

Even though he had already been paid by Sri Lanka officials for his services, it was not clear exactly what type of work was carried out or if any more money was owed, according to AFP.

The Sri Lankan government — which was voted into power in January — would not give a specific reason for distancing itself from the onetime head of the International Monetary Fund, AFP reports.
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