Sri Lanka Telecom in aggressive chase for new markets in the region

June 23, 2015 (LBO) -Sri Lanka Telecom (SLT) is aggressively pursuing new markets in the region through strategic direction of building international connectivity, a statement said.

SLT says its global coverage was strengthened via multiple undersea optical fibre cable systems: SEA-ME-WE 3, SEA-ME-WE 4, Bharat-Lanka (between India and Sri Lanka) and Dhiraagu (between Maldives and Sri Lanka).

“SLT investments continued to further strengthen the country’s global connectivity as a key strategy devised to support the national objective of making Sri Lanka the “Digital Hub” of the region,” Dileepa Wijesundera, Group CEO of SLT said.

“Also the company has focused on capacities required for future data demand. SLT has become a member of the 20-member international consortium that owns the SEA-ME-WE 5 international undersea cable system and is currently in the process of implementing yet another future proof project to serve the country’s data demand for the next 25 years.”

The company currently, is in the process of implementing unmatched global connectivity project, the SEA-ME-WE 5 international undersea cable system with a total design capacity of 24 Tbps and 100G technology.

This 20,000km cable runs from Singapore and to France in the other corner of the global system via Sri Lanka by connecting to the high-speed undersea cable with 20 parties contributed by investing for the system.

Construction of the cable commenced in September 2014 and is expected to be completed in 2016 and hopes to deliver an increase in communications capacity, which will be available to support growth in Sri Lanka and other member countries.

Furthermore, the SEA-ME-WE 5 cable station that is being established in Matara facilitates double landing (full landing connectivity/core system landing/main landing instead previous connections through branch cables to the island), thereby enhancing the reliability of Sri Lanka’s connectivity to the world, the company said.

The company recently upgraded its SEA-ME-WE 4, linking South-East Asia to Western Europe via the Middle East, and the capacity increased three fold that enabled the system to accommodate much higher speeds using 100G technology,

The SEA-ME-WE 4 cable network is owned by a consortium of 17 leading telecom carriers from 15 countries.

Sri Lanka Hayleys expands hydropower generation

COLOMBO (EconomyNext) – Sri Lanka’s Hayleys group has said it plans to invest 800 million rupees in a new hydro project which will be commissioned in next year with renewable energy seen as a key future growth area.

The group supplies close to two of the country’s total renewable energy supply, with an installed capacity of 35 MW generated through various joint ventures in hydro and wind power plants.

Renewable power generation provides 5 MW of hydro power and 30 MW of wind power to the national grid and contributes about 30 percent of Hayleys group power and energy business sector revenue and 82 percent of profit, its annual report has revealed.

“A further 800 million rupees is being invested in a new hydro project which will be commissioned in the next financial year bringing the hydro power supply to a total of 10MW.”

A 4.3 MW hydro power plant is under construction in Mawanana in Galle and is expected to be commissioned in 2016.

The power and energy business is an area “with high potential growth,” the company told shareholders, noting that: “Hayleys is a growing player in the renewable energy sector supplying Sri Lanka’s renewable energy needs through hydro and wind power plants.”

Renewable energy generation supported the performance of the sector with a profit before tax of 824 million rupees in the financial year ended March 31, 2015.

The group commissioned another 20MW wind project last year in the north with joint venture partners which will add to the sector’s profit in the coming years, the report said.

The group invested 525 million rupees in the two new wind power projects in Palai, Elephant Pass.

Sri Lanka sells three billion rupees in 02 and 03 year bonds

June 23, 2015 (LBO) – Sri Lanka has sold three billion rupees of two and three year bonds after calling bids for two billion rupees of bonds, the state debt office said.

The debt office on Tuesday sold 1.5 billion rupees of two year bonds maturing on 15 June 2017 at a weighted average yield of 6.70 percent.

A three year bond maturing on 15 November 2018 was sold at an average yield of 7.18 percent, raising another 1.5 billion rupees.

The state debt office of the Central Bank offered one billion rupees in two year bonds and another one billion rupees in three year bonds.

Sri Lankan shares edge up on buying in Keells

Sri Lankan shares rose for a second straight session on Tuesday to a near one-week high, led by market heavyweight John Keells Holdings Plc, but trading was moderate due to political uncertainty ahead of the announcement of parliamentary polls.

The main stock index ended up 0.2 percent, or 14.31 points, at 7,053.96, its highest close since June 18.

Turnover stood at 810.5 million rupees ($6 million), below this year's daily average of about 1.1 billion rupees.

"Suddenly there was buying interest in Keells, helping the index to move up," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.

Shares in conglomerate John Keells closed up 3.65 percent.

"Not much of a movement otherwise, they (investors) are waiting for direction. They are waiting for elections."

The market saw net foreign inflows of 73.3 million rupees on Tuesday, but foreigners have been net sellers of 3.4 billion rupees in stocks over the past 20 sessions.

The bourse has seen net inflows of 2.54 billion rupees into equities so far in 2015.

Investors were confused due to a lack of direction on interest rates, economic policies, and on the timing of the parliamentary election, analysts said.

President Maithripala Sirisena's government has said he would dissolve the parliament once some crucial reforms, including an electoral bill, are passed, but is yet to fix a date for the election.

($1 = 133.9000 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Prateek Chatterjee)

Thai poultry giant eyes Sri Lanka

Shirajiv Sirimane (shirajivs@gmail.com)

One of the world’s top four poultry farms based in Thailand will be investing in Sri Lanka, Thailand’s Ambassador in Sri Lanka Nopporn Adchariyavanich said.

Speaking to Daily News business he said the Thailand based company has done a comprehensive study in Sri Lanka and was satisfied to invest in Sri Lanka. The company will bring in new technology to Sri Lanka and have their complete products range done in Sri Lanka. This also includes the manufacture of Chicken feed.

One of the main reasons for the Thai based company to enter Sri Lanka is the huge demand they foresee for this sector. The company is also aggressively looking at the export potential from Sri Lanka.

The company is also happy that no major poultry related diseases were reported from Sri Lanka.

“They should start operations in Sri Lanka by end of this year,”the envoy said.

He said that several Aquatic based companies are also keen to invest in Sri Lanka. “However, the Red card shown to Sri Lanka by the EU is currently keeping them way.”

He also said that the Thai Embassy has noted with rather disappointment that trade between the two countries is moving at a slow pace. “Thailand entrepreneurs have a large market within the country where the population is over 68 million. In addition they also export to neighbouring counties and hence have a market in and around Thailand. One top of this, Thailand will also soon join the ASEAN Economic Community which has given them even more opportunities with in the region.”

“Due to this I have identified certain areas where both countries could benefit. This includes the agri, construction, tourism and waste management areas.”

Initiated by the Thai Embassy in Sri Lanka, a special Sri Lanka business delegation is being formulated and they would be visiting Thailand in August.

“We have invited members from these thrust areas to meet with the Sri Lankan delegation.” He said that another area where he wants to focus on is tourism and with both countries being Buddhist, there is tremendous scope for inbound tourism.

The trade between the two countries was at around US$ 500 million last year with the trade balance in favour of Thailand.

Reconditioned cars, sugar, fisheries products and general trading top the list from Thailand while gem exports is the biggest export from Sri Lanka.

He said that both the countries are celebrating 60 years of relations this year and will also have several programs to mark this achievement.

- See more at: http://www.dailynews.lk/?q=business/thai-poultry-giant-eyes-sl#sthash.lfNDJmap.dpuf

LB Finance posts Rs 2.1 b PAT in 2014/2015

LB Finance PLC recorded a profit after tax of Rs. 2.1 billion compared to the Rs. 1.3 billion recorded in 2013/14, a substantial growth of 63%.

Net interest Income rose by 39% to record Rs. 7.7 billion compared to the Rs. 5.5 billion recorded the previous year.

The total operating income grew to Rs. 8.8 billion compared to 6.5 billion achieved over the corresponding period of the previous year, a 36% increase.Total assets have reached Rs 67.5 billion compared Rs 60.8 billion in year 2014.

“This significant growth in profits once again reiterates the trust and faith the people of Sri Lanka have placed on us. The year under review 2014/15 was a significant year for us. It was a year where the company built on the momentum achieved during previous years and grew substantially”, LB Finance Managing Director Sumith Adhihetty said.

“We have been strategically focusing on a particular aspect of our performance each year. These strategies have helped us overcome challenges, acquire customers and even more importantly retain them”Adhihetty said.

LB Finance PLC is a trail blazer in the financial services industry in Sri Lanka. The Company was established in 1971 and through the years has built a strong reputation as one of Sri Lanka’s most trusted financial organisations. With a total deposit base of over Rs. 45 billion, LB Finance is proud of the trust placed by the general public making Company the largest non-banking deposit mobilizer in the country.
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