Sri Lanka to apply for GSP Plus by year-end: Harsha

ECONOMYNEXT – Sri Lanka’s govenrment will apply before the end of the year to have the GSP Plus trade concession to the European Union restored, Deputy Minister of Foreign Affairs Harsha De Silva said.

“Before the end of the year we will make formal application and regain GSP Plus by the middle of 2016,” he told a forum at the Ceylon Chamber of Commerce on economic diplomacy and winning global markets.

The UN Human Rights Council resolution on Sri Lanka adopted unanimously last week for a foreign-supervised investigation into alleged war crimes in the island has helped repair strained foreign relations, he said.

The govenrment will be able to get GSP Plus incentive, giving duty free access to EU markets, for the benefit of exporters, De Silva said.

“There’s no point in promoting exports if the government does not have its policies right,” De Silva said.

Sri Lankan stocks slip from one-week high; blue chips lead

Reuters: Sri Lankan shares ended slightly weaker on Monday, after hitting one-week closing highs in the previous session, led by falls in John Keells Holdings Plc and Commercial Bank of Ceylon Plc.

The main stock index ended 0.23 percent, or 16.48 points, weaker at 7,089.06, slipping from its highest close since Sept. 25 hit on Friday.

"The bourse opened the week on a negative note despite most counters gaining. This was due to dips on index-weighted counters," TKS securities said in a note to investors.

Foreign investors were net sellers of 60.99 million rupees ($431,940) worth of shares extending the year to date net forging outflow to 2.97 billion rupees.

"Foreign activity was fairly dormant with an outflow recorded for the day," TKS said.

Turnover was 641.1 million rupees, compared with this year's daily average of 1.12 billion.

Shares in conglomerate John Keells Holdings fell 1.06 percent, while Commercial Bank of Ceylon, the country's biggest listed lender, fell 0.50 percent. 

($1 = 141.2000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Anand Basu)

Sampath Bank to raise Rs7bn from listed debenture

(LBO) – Sri Lanka’s commercial bank sector player Sampath Bank is to raise 7.0 billion rupees from a listed debenture issue, the bank said in a stock exchange filing.

Sampath Bank has decided to issue 50 million debentures at 100 rupees each with an option, to issue up to a further 20 million debentures in the event of over subscription, subject to the necessary regulatory approvals.

The bank had two debenture issues in the past two years which raised 11.0 billion rupees.

Last week, a listed debenture offer for island’s state owned Bank of Ceylon was oversubscribed receiving over 8.0 billion rupees worth applications.

Sri Lanka must raise tax revenue, manage pressure on rupee: World Bank

ECONOMYNEXT – Managing pressure on the rupee and raising revenue to reduce the 2015 fiscal deficit are Sri Lanka’s immediate challenges, the World Bank has said in a new report on South Asia’s economic prospects.

“Structural challenges include increasing fiscal revenue and narrowing a persistent current account deficit linked to structural competitiveness issues in the export sector,” the bank said in its latest twice-a-year South Asia Economic Focus report.

Another challenge is that access to cheap funds is dwindling with the country approaching upper middle income status, so borrowing terms are seen as becoming more commercial, which could affect affordability.

That means with limited national savings compared to national investment, Sri Lanka needs to attract Foreign Direct Investment, the report said.

To sustain its high growth path Sri Lanka needs to increase growth in the manufacturing and export sectors, it said.

The World Bank forecast Sri Lanka’s growth will increase to 5.6 percent in 2016 due to higher public sector wages and higher disposable incomes.

But it warned that the looser fiscal stance behind this strong domestic demand is also putting pressure on the external balance.

“Maintaining the growth momentum will require higher tax revenue, rationalized public spending and greater competitiveness.” (

LAUGFS acquires second LPG ship

LAUGFS Maritime Services Ltd., the fully owned logistic arm of LAUGFS Gas PLC, announced the acquisition of their second LPG ship to provide logistic support for the growing LPG demand in the country. 

This latest acquisition comes as LAUGFS celebrates its 20-year anniversary this year, and will mark another important milestone as it strives to expand its presence further across the region. 

LAUGFS’s maiden acquisition of LPG ship MT ‘Gas Challenger,’ with a capacity to carry 3,500 m/tons of LPG, was made one year ago marking its entry into maritime business. 

This second acquisition with a total expected investment of $ 6 million, is named MT Gas Success and will have a capacity to carry 3,500 M/tons of LPG, which will increase logistic capabilities of the company.

“As a company that embodies a truly Sri Lankan identity, we have always focused on extending our horizons beyond national borders, carrying this identity to a regional and global sphere with our strategic business investments and interests,” remarked W.K.H. Wegapitiya, Chairman of LAUGFS Holdings.

He further stated: “Capitalising on the location-specific advantage of being in the center of Indian Ocean, we make our contribution to promote Sri Lanka as the energy logistic hub within the next three years.

Though we are an island nation surrounded with the Indian Ocean, and located in the closest vicinity of the international sea route, very little has been done to make our country a maritime hub. These vessels would not only cater to the domestic requirements of LAUGFS, but also would support regional demands.”

LAUGFS recently announced its ambitious plans to build the largest LPG storage facility within Hambantota Port area, which would act as the central LPG storage hub for the entire region, from which the LAUGFS vessels would deliver LPG to other markets in the region of South and South East Asia.

LAUGFS is one of the largest diversified business conglomerates and a trusted name in Sri Lanka. Founded in 1995, LAUGFS Holdings today has expanded across 20 industries, establishing a strong presence as a leader and pioneer in the power and energy, retail, industrial, services, leisure and the real estate sectors in the country. With over 4,000 employees and an annual turnover exceeding Rs. 28 billion, LAUGFS continues to expand, touching the lives of millions as a trusted Sri Lankan brand.
www.ft.lk

Govt. to issue $ 75 m development bonds

The Central Bank has announced that it plans to sell $ 75 million worth of development bonds to foreign and local investors.

The Public Debt Department of Central Bank will issue $ 75 million in Sri Lanka development bonds of one year, three years three months and four years eight months tenor to eligible investors for subscription at a rate of either US Dollar six month LIBOR plus a margin (floating rate) or at a fixed rate to be determined through competitive bidding.

Minimum investment is $ 100,000 with additional investments in multiples of $ 10,000. The bonds are exempted from income tax paid in Sri Lanka.The issue will be open for subscription from 8 to 15 October and has a Date of Settlement of 19 October 2015.

www.ft.lk