FCID arrests ex- SEC official over alleged fraud

The Securities and Exchange Commission’s (SEC) former Deputy Director General Dhammika Manjira Perera and an agent identified as Roni Abraham were arrested by the FCID today in connection with an alleged Rs. 5 million fraud which had taken place at the SEC in 2013. 

Police Spokesman Ruwan Gunasekara said the arrested would be produced in the Fort Magistrate’s Court. 

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Sri Lankan shares edge down; budget proposals a concern for firms

Reuters: Sri Lankan shares edged down on Friday, hovering near an eight-month closing low, on worries that the new budget proposals would hit earnings of financial firms.

Investor sentiment was also dented following Prime Minister Ranil Wickremesinghe's warning on Wednesday of lower economic growth in 2016 due to the global slowdown.

The main stock index ended 0.16 percent weaker at 6,869.56. On Wednesday, it closed at its lowest level since March 31 at 6,862.79.

The index was heading towards oversold territory with the 14-day Relative Strength Index at 30.523 versus Thursday's 31.662, Reuters data showed. A level between 70-30 indicates the market is neutral.

"It was another dull day," said Yohan Samarakkody, head of research at SC Securities (Pvt) Ltd., adding that foreign and retail participation was low.

"We expect this trend to continue till January," he said.

Local institutions and retail investors remained on the sidelines, analysts said.

Foreign investors were net sellers for the first time in five sessions. They sold a net 13.2 million rupees worth of shares on Friday, extending the year-to-date net foreign outflow to 3.49 billion rupees worth of equities so far this year.

Turnover was 371.9 million rupees, the lowest since July 21 and well below this year's daily average of 1.1 billion rupees.

Shares of Nestle Lanka Plc dropped 2.07 percent, while John Keells Holdings Plc fell 0.39 percent and Distillers Company of Sri Lanka Plc eased 1.71 percent.

The government on Nov. 20 announced a raft of steps, including the removal of a 0.3 percent share transaction levy, to stimulate trading in the share market and increase liquidity.

Rating agency Fitch last week said Sri Lanka's 2016 budget provides no clear plan for fiscal consolidation over the medium term and the absence of such a framework will put more pressure on the fiscal deficit.

($1 = 143.2000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Sunil Nair)

Sri Lanka Hotel Rooms up from 1,200 to 33,400

Ceylon Finance Today: Hotel rooms which were a mere 1,200 when the then State Minister J.R. Jayewardene, regarded as the father of Sri Lanka tourism, took over the development of the industry 50 years ago, has now increased to 33,426, covering both the formal and informal sectors.

Tourism Minister John Amaratunga speaking at a function in Colombo on Monday (30 November) said that the industry plans to have 45,000 rooms on stream by 2018 and four million tourists by 2020.

He said that by the current year end, Sri Lanka would have had received 1.8 million tourists for the calendar year. The target for next year is two million tourists. On the allegedly contentious issue of the tourism development levy (TDL) being withdrawn as per a 'Budget 2016' proposal, he said that he and his ministry representatives will try to sort this matter out with the Finance Minister.

Amaratunga in his speech assured the industry that the informal hotel sector would be regulated by the Sri Lanka Tourism Development Authority by June of next year.

He also said that skilled personnel were a dire need for the industry. Ceylon Hotels School recently conducted a programme targeting school leavers in Anuradhapaura. This programme will be replicated in Hambantota this weekend, by targeting to enrol 100 youth to the tourism sector from this district.

The occasion was the fiftieth anniversary celebrations of The Hotels Association of Sri Lanka.(PGA)
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Carsons to raise Rs 10B by selling plantations

By Paneetha Ameresekere

Ceylon Finance Today: Blue chip Carson Cumberbatch plc controlled by the Selvanathan brothers Mano and Hari, plans to raise Rs 10.35 billion by selling at least some of its plantation stock in Malaysia.

These comprise a total of a maximum of 1,600 hectares; a drop in the ocean compared to the over 150,000 ha., of plantation stock, mainly oil palm (similar to that of their Malaysian entities), which the Carsons Group, the parent holds, in Indonesia, market sources however told this reporter.

These Malaysian plantation stocks are controlled by some of its subsidiaries listed in the Colombo Stock exchange (CSE) such as Selinsing, Good Hope, Indo-Malay and Shalimar (Malay).

The stakes by the Selvanathan Brothers in these listed entities, either directly or indirectly, are over 90%.

These respective companies, in recent stock exchange filings said that the reason why they want to dispose of their Malaysian stock, primarily oil palm, is due to depressed commodity prices, led by the crash in crude oil prices.

The valuations are based, by that which has been made by at least one valuer, with the companies informing the CSE that they also plan to get a second opinion of these valuations. The valuations were made in Malaysian ringgits (RM). For convenience, those have been converted to rupees, as per the daily Central Bank of Sri Lanka's (CBSL's) notifications of the exchange rates (ERs) of various currencies, including the RM. Conversions were made based on the prevailing rate as at Tuesday, 1 December, 2015.

Additionally, these four listed companies together have a controlling 53.32% stake of a plantation company (also oil palm), Shalimar Developments in Indonesia. In the said stock exchange filing, the companies had further said that they also plan to dispose of that stock as well. However, no valuation, 'initial' or otherwise, have been given of the Indonesian plantation company. The balance equity stake, i.e. 46.68%, is held by another Carsons subsidiary, namely Good Hope Asia, which is registered in Singapore, sources said.

Shalimar Developments is one of several companies which holds Indonesian oil palm stocks, on behalf of the Carsons Group. In the over-arching picture of the Carsons Group's over 150,000 ha.'s of holdings in Indonesian plantations stocks, Shalimar Developments' holdings as a whole are negligible, they said.

A chief reason that has necessitated these companies to make these filings is a CSE ruling that a listed company should have a minimum 15% public float and a minimum 500 public share holding by the year end.

The companies therefore have asked the CSE for a two year grace period, vis-à-vis 'laying down the law' in respect of their new listings requirements, till these proposed transactions are finalized. The final outcome would be that those companies would then seek a delisting from the CSE, the sources said.

The diversified Carsons Group's range of business activities include real estate (the group own some prime property in Colombo Fort among several others), soft liquor (the group virtually has a monopoly in the local beer business), leisure, travel, financial services and last but not the least, in plantations.

However, the Group holds no plantation stock in Sri Lanka. Conversions to rupees have been made on the basis that according to CBSL, the value of the RM as at Tuesday, 1 December, 2015 was Rs 33.743 to one RM. The valuations of the Group's Malaysian properties in question have been given in RM.
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Hayleys, Lanka's No.1 listed company - LMD

Hayleys PLC was ranked the No.1 company in the LMD's Top 100 listed companies of Sri Lanka this week. The award was received by Chairman & Chief Executive, Hayleys PlC, Mohan Pandithage at a event organized by CIMA-LMD.

Many business sectors of the Hayleys Group have been leaders in their respective sectors for the past 137 years, by practicing integrity, enduring customer value, good citizenship, accountability, teamwork and most importantly the respect of people.

"It is a great honor to be named the number one company in Sri Lanka once again after a considerable period of time. I would like to congratulate all the members of the Hayleys team and our stakeholders for their contribution over the years that have brought us back this honor' said the Chairman and Chief Executive, Mohan Pandithage.

Hayleys PLC has been under the stewardship of Mohan Pandithage since 2009, and has been able to achieve a number of accolades during this time.

Hayleys PLC has a portfolio of globally competitive core businesses in Fiber, Hand Protection, Purification, Textiles and Construction Materials, Agriculture and Plantations, Tea Exports, Transportation and Logistics, Consumer, Leisure and Aviation, Renewable Energy, Engineering Solutions, Projects and Investments & Services.
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Commercial Credit Rs. 2 bn Debentures oversubscribed

Commercial Credit and Finance Limited has received applications for over Rs. 2 billion for its Debenture Issue and accordingly the Issue has been oversubscribed.

Therefore, the Issue was closed yesterday (03) as per the Prospectus. Any applications received to the collection points as mentioned in the Prospectus will be accepted. The basis of allotment will be notified to the CSE in due course.
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