Sri Lankan shares fall for 8th straight session; rising rates weigh

(Reuters) - Sri Lankan stocks closed at a near five-week low on Wednesday, falling for an eighth consecutive session, as investor concerns over rising interest rates and political uncertainty weighed on sentiment.

The main stock index lost 0.3 percent, or 19.86 points, to 7,110.19, its lowest close since Feb. 5, extending the fall to 2.83 percent in the last eight sessions.

"Interest rates are on the rise and we don't know if it will rise further," a stockbroker said on condition of anonymity. "So, investors are waiting for some direction on interest rates."

"On the political front, it is unclear if there would be political stability after the parliamentary election and the market is concerned about that as well," the stockbroker said.

Foreign investors were net buyers of 97.9 million rupees worth of shares, extending the year-to-date foreign inflow to 2.58 billion rupees.

Yields on t-bills rose between 21 basis points and 38 basis points at a weekly auction on Wednesday with the 91-day t-bill yield rising to a 14-month high of 7.10 percent.

The central bank has raised more than 105.3 billion rupees ($792.33 million) this week alone through the sale of development bonds and government securities. It also plans to raise a further 20 billion rupees ($150.49 million) via t-bonds on Thursday.

The heavy borrowing by the government has resulted in a spike in market interest rates.

Political uncertainty has also weighed on sentiment with elections to Sri Lanka's 225-member parliament expected to be announced after April 23. It is unclear whether the ruling coalition led by President Maithripala Sirisena would contest unitedly or go to the polls separately.

Political analysts expect a hung parliament if Sirisena's coalition members contest separately.

Shares in Ceylon Tobacco Company Plc fell 0.97 percent and top fixed-line phone operator Sri Lanka Telecom lost 1.5 percent.

Turnover was 946.2 million rupees, well below this year's daily average of 1.37 billion rupees. 

($1 = 132.9000 Sri Lankan rupees) 

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

Sri Lanka 91-day T-Bill yield rises by 21 bps to 7.10 pct

UK’s SmartOtels to promote Amaya Resorts, Kingsbury

By Shirajiv Sirimane reporting from Germany

Berlin, Sunday: Amaya Resorts and Spa and Kingsbury have signed up with SmartOtels in UK to exclusively promote the local properties.

Amaya Resorts Managing Director, Lalin Samarawickrama told Daily News Business this would give them a new market not only from Europe but also from the UK.

“They have been in the business for a long time and their expertise will certainly help to woo more travellers to our hotels. The tie up will take us to a new era,” he said. SmartOtels are sales and marketing representatives for hotels and resorts in the UK and certain European markets, currently focused on hotels and resorts in South East Asia and South Asia.

SmartOtels Managing Director, Mathew Brook, said they were happy to add the Hayleys owned Amaya Resorts and the Kingsbury to their portfolio.

“We are also happy to have such diversified set of high quality hotels to promote.We will market these hotels also in the Far East.”

Brooks has 30 years’ experience working with hotels and serviced apartments in the UK and Europe with a strong emphasis on sales, marketing (including social media marketing), distribution and revenue. Matthew also has a strong background in operations. 

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NDB to expand in Bangladesh

Shirajiv Sirimane (shirajivs@gmail.com)

The NDB Bank aims to introduce Wealth and Asset Management to their existing operations in Bangladesh.

CEO, NDB, Rajendra Thiyagarajah speaking at the NDB Bank investment Forum held yesterday at Kingsbury Colombo, said that he was happy with their robust performance in Bangladesh. “We have helped secure over US$ 100 million worth of deals to customers. They were mainly in the power steel and manufacturing sectors.”

He added that these have given the bank confidence to expand Bangladesh operation even more vigorously.

Thiyagarajah said that in Sri Lanka too, Asset Management is a sector he is proud of. “We have over Rs 100 million Assets under management.”

He added that with the success in Bangladesh, they are aiming to branch out to other South East Asian and ASIAN countries soon. “We are looking at growth markets and there are ‘on going discussions’ with regard to these overseas expansions,” he said.

“The Sri Lankan middle class is expanding rapidly. I think offering deposits by banks to them would be some thing in the past.”

The CEO said that they currently have 86 branches of their own. “We hope to take it up to 100 by the end of the year.”

Asked to comment on the on going merger with the DFCC Bank, he said that their appetite for the merger is stronger than ever.
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Dockyard plans new factory

Colombo Dockyard Chairman Dr. Toru Takehara said the Colombo Dockyard requires physical expansion space. “Therefore, we will continue to negotiate with the relevant authorities to acquire suitable land for expansion,” he said in the company’s annual report.

“We are already planning a new factory facility to manufacture steel bridges. To sustain growth at the Colombo Dockyard over the short term.We will focus on productivity improvements that will reduce costs, while also increasing business volumes. At present the company can manufacture four ships annually.I believe this can be increased to five ships by introducing more efficient production systems. Proposed new international maritime regulations will also provide new opportunities,”he said.

“Our future long term growth strategy will have a five pronged approach, where we will seek growth opportunities in the five areas of technology, logistics, energy, communications,” the Chairman said.
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