Hayleys Extends Positive Growth into Q3

Hayleys PLC reported strong Q3 2014/2015 results, in its filing to the Colombo Stock Exchange. Cumulative nine months profit before tax grew 25 percent over the corresponding period of the previous year. Consolidated group revenue in the third quarter grew 12 percent to Rs. 22.98 billion, with revenue for the nine months ending December 2014 increasing to Rs. 64.48 billion, a growth of 14 percent from the year before. 

The Hand Protection sector recorded an increased PBIT of 68% in the nine months to December, recovering strongly from challenging circumstances in the previous year. 

The Transportation and Logistics sector continued robust growth momentum, with PBIT increasing 28 percent year on year. Sector revenue increased to Rs. 10.5 billion for the nine month period, a 16 percent growth year on year. 

The Purification Products sector was adversely affected by continued high prices of its key raw material and adverse currency movements in exports markets in the Euro zone, Australia and Japan. Productivity improvements and lean manufacturing initiatives helped off-set some of these negative developments. 

The Agriculture sector bounced back in the third quarter after unfavorable weather conditions in the first half of the year. 

The Textiles sector and Fibre sector continued on a path of recovery. The Textile sector, represented by Hayleys MGT PLC, has implemented a series of reforms to improve its productivity and generate new innovations that will set the pace for future growth. Sector revenue rose to Rs. 6.5 billion, up 10 percent year on year. The Fibre sector saw PBIT growing over two fold in the 9 month period, compared to the previous year. 

The Construction Materials sector also continued its positive growth as PBIT increased 21% for the nine month period. 

The Board of Directors of Hayleys PLC comprises Messrs Mohan Pandithage (Chairman and Chief Executive), Dhammika Perera (Co-Chairman), Rizvi Zaheed, Nimal Perera, Sarath Ganegoda, Rajitha Kariyawasan, Dr. Harsha Cabral PC, Lalin Samarawickrama, Dr. Mahesha Ranasoma, Mangala Goonatilleke, Ruwan Waidyaratne , and M. H. Jamaldeen,

Sri Lanka shares up for 5th session; financials lead

Feb 11 (Reuters) - Sri Lankan shares extended their winning streak to five sessions on Wednesday to close at near two-week highs, led by financial stocks, brokers said.

The main stock index ended up 0.75 percent, or 54.71 points, at 7,359.41, its highest close since Jan. 29.

"The market looks healthy. Blue-chips started moving up and the others followed. Investors see some kind of positive rally," said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities (Pvt) Ltd.

Foreign investors bought a net 146.5 million rupees ($1.1 million) worth of shares on Wednesday, extending net foreign inflows so far this year to 1.55 billion rupees. The bourse had net foreign inflows of 22.07 billion rupees in 2014.

Wednesday's turnover was 2.31 billion rupees, well above this year's daily average of 1.43 billion rupees.

Ceylinco Insurance Plc rose 8.71 percent, while Commercial Bank of Ceylon, the country's biggest listed lender, rose 2.3 percent.

Leading fixed-line telephone operator Sri Lanka Telecom Plc rose 3.73 percent. 

($1 = 132.8000 Sri Lankan rupees) 

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

Moody’s flashes red light on interim budget

Though Sri Lanka’s new interim budget proposes to reduce the budget deficit to 4.4 per cent, there are possibilities of increasing inflation and economic imbalance due to the increase in the current spending, warns the international rating agency Moody’s Investors’ Service.

If this budget deficit of 4.4 per cent of the Gross Domestic Product (GDP) could be met, then Sri Lanka could be rated on par with other countries with a ‘B1’ rating and if the proposed budgetary revenue cannot be collected then there is a danger of the budget deficit rising further, says Moody’s.

It is stated that there are already doubts whether the Rupees billions as taxes imposed on casinos and other institutions would be actually paid by them and that some of the proposals to earn the revenue could impact negatively on future investments and development.

Moody’s has further added that increasing the salaries of government sector employees by 47 per cent could result in the future rise in consumption and thus a rise in inflation.
www.adaderana.lk

Barrier falls on transfer of Sri Lanka government servants’ vehicle permits

It has been revealed that the new government has decided not to allow the tax free vehicle permits for government servants to be transfer before four years of its issue.

A senior official from the Finance Ministry told www.adaderanabiz.lk that this decision has already been taken and that the relevant circular would be released shortly.

A circular had been released during the former government that the vehicle permits provided for purchasing vehicles under the duty free concession could be transferred to any other person.

Hence, the government servants had the opportunity of selling their duty free vehicle permits most bought these permits and had bought vehicles through such permits.

A head of a Sri Lankan vehicle importing company told www.adaderanabiz.lk that if this new rule applies to the vehicles already ordered through these government servants’ permits but still to arrive in the country then it could create problems to the company.

He added that it is still not clear whether this new rule applies only to the new permits or whether it also applies to the earlier permits.
www.adaderana.lk

PCHH subsidiary Bieco Link to resume activated carbon production

The Beico Link factory is the only one in Sri Lanka using both rotary and vertical kilns

In a corporate disclosure submitted to the Colombo Stock Exchange dated 6 February, PCH Holdings PLC stated that its subsidiary Bieco Link Carbons Ltd. expects to be fully operational once its custom-built factory on a 12-acre freehold property in Giriulla is upgraded and refurbished shortly.

PCHH majority shareholder Adam Investments Ltd. tookcontrol of Bieco Link Carbons Ltd. in November 2014, launching a program to revive the company and resume production.
“Giriulla town and residents depended on the factory for employment and income,” said 

Chaminda Banduthilake, Managing Director of PCH Holdings PLC.

Situated in the heart of the coconut triangle, the factory has the capacity to produce 500 MT of granular activated carbon per month for export. “With the reopening, the economy and inhabitants of Giriulla once again stand to benefit from our operations,” he noted.

From 1989, until early 2014 when the factory was shut down by previous management, Bieco Link Carbons was Sri Lanka’s only manufacturer of coconut shell activated carbon in granular and powdered form using both vertical and rotary kiln technologies in steam activation process.

“The factory was once the second largest exporter of activated carbon,” stated Banduthilake, “We expect to not just restore it to its former glory, but exceed it in performance and profitability.”

Activated carbon is used a purification agent in water treatment and air purification, as well as in the gold refining, petroleum and chemicals industry. Any carbonaceous materials can be used as a raw material to manufacture activated carbon, such as coconut shells, peat, wood, or coal. Sri Lanka’s six activated carbon manufacturers prefer coconut shell charcoal for its ready availability in the island.

The vertical kilns produce activated carbon that is more efficient in gas absorption than that of rotary products. By carrying out the carbonisation in closed kilns, instead of the traditional open pit method, Bieco Link Carbons has taken steps to eliminate pollution and avoid contamination from other substances.
www.ft.lk