Sri Lankan shares end at near two-week low; financials lead

Reuters:Sri Lankan shares closed at a near two-week low on Monday, led by financials amid thin trading as many market participants were on holiday after a long weekend.

The main stock index ended 0.44 percent weaker at 6,828.51, its lowest close since Dec. 15.

"There was no reason for market to move up with many investors on holiday. The market is also concerned over the budget as the government had given up most of its revenue," a stockbroker said on condition of anonymity.

Foreign investors sold a net 30.8 million rupees ($214,634) worth of equities, extending the net outflow to 4.3 billion rupees so far this year.

Turnover was at 354.4 million rupees, a third of this year's daily average of 1.08 billion rupees.

Markets were closed on Thursday for a Buddhist religious holiday and on Friday for Christmas.

Top listed lender Commercial Bank of Ceylon fell 1.1 percent, while People Leasing and Finance plc lost 3.95 percent. 

($1 = 143.5000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Biju Dwarakanath)

China establishes rival to World Bank

The China-backed Asian Infrastructure Investment Bank (AIIB), viewed by some as a rival to the World Bank and Asian Development Bank, was formally established on Friday, according to a statement issued by Beijing.

The United States and Japan - the world's largest and third-largest economies, respectively - have notably declined to join the bank, which is expected to begin operations early next year, though others such as Australia, Germany and Britain will take part.

The bank's establishment came after 17 funding members of the AIIB, which account for just over 50pc of its share capital, ratified an agreement on the bank, state television quoted Finance Minister Lou Jiwei as saying.

"The AIIB is legally established as the Articles of Agreement take effect today," said Lou said.

"The establishment of the AIIB marks a milestone in the reform of global economic governance system."

It will be operational once its board of directors and executive council have met for the first time at an opening ceremony scheduled for January 16-18, the ministry of finance said.

Beijing will be by far the largest AIIB shareholder at about 30pc, according to the legal framework signed by 50 founding member countries in late June.

The AIIB has been feted by Beijing as a way of financing regional development, and is seen as a potential rival to US-based institutions such as the World Bank.

The bank will initially focus on financing projects in power, transportation, and urban infrastructure in Asia, the television quoted the bank's president-elect, Jin Liqun, as saying.

With authorised capital of $100bn, it expects to offer its first batch of project loans by mid 2016, according to the official Xinhua news agency.

First proposed by President Xi Jinping less than two years ago, the bank has become one of China's biggest foreign policy successes.

Despite the opposition of Washington, major US allies such as Australia, Britain, Germany, Italy, the Philippines and South Korea have joined.

http://www.telegraph.co.uk

Lanka's city property prices soar

The skylines of the world's emerging cities are being transformed. Colombo is no exception. As construction booms in the emerging markets, cities in these regions will soon be home to record-breaking property developments and some of the most ground-breaking real estate the world has seen.

Shangri-La Colombo
As the year draws to a close, online property portal Lamudi looks back at the key developments in real estate in the emerging markets in 2015.

One Galle Face, Sri Lanka

This $608 million integrated lifestyle development from Shangri-La Colombo includes high-end residential, retail and office space, as well as a prestigious five-star hotel.

The development sets a new standard for luxury living in Colombo and seeks to tap into the growing number of tourist arrivals to the country.

Prices of apartments in the Residences at One Galle Face start at $405 per square meter, ensuring the development targets investors, expatriates and Sri Lanka's growing upper income bracket.

The project will also offer seven levels of shopping, dining and entertainment, plus 60,000 square meters of prime office space. Slated for completion by 2018.

Jeddah Tower, Saudi ArabiaThis mega project in Obhur, just north of Jeddah, is set to take real estate to new heights. Measuring 1km into the sky, the tower will overtake Dubai's Burj Khalifa as the world's tallest building once construction ends in 2020. In late November, the Saudi government announced that Jeddah Economic Company and Saudi Arabia's Alinma Investment had signed a $2.2 billion deal to build Jeddah Economic City, which includes the 200-floor skyscraper.

International Financial Centre Jakarta Tower Two

Construction of the International Financial Centre (IFC) Jakarta Tower Two entered its final phase in September. Located in the heart of Jakarta's financial district, the development is billed as a state-of-the-art eco-office tower. The existing 10-storey Tower Two is being redeveloped to offer 49 storeys of prime Grade A office space. The project, from Singapore developer Keppel Land, is slated for completion next year. With features such as rainwater recycling and a range of energy- and water-efficient fittings, the building will be the first in the city to receive the renowned Green Mark Gold PLUS Award from Singapore's Building and Construction Authority.Myanmar Center Tower, MyanmarStrategically located in New Yangon, the Myanmar Centre Tower will offer four blocks of world-class office space totaling 180,000 square meters. With flexible floor plans and customizable spaces, the development is suitable for all businesses seeking to make their mark on one of Southeast Asia's fastest growing economies. The project is part of the broader HAGL Myanmar Centre, which also includes a retail mall, a five-star hotel and luxury apartments, The Lakes Suites, which started pre-sales in June this year. HAGL Myanmar managing director Cao Duy Thinh told the media that the development would set a new standard for Yangon as the city's first integrated mixed-use project built to international standards.

Proyecto Akaroa, Colombia

Located in a residential neighborhood in the northeast of Bogotà city, the highly sought-after Proyecto Akaroa housing project consists of 192 apartments of one, two and three bedrooms.

There are 16 apartments per floor, each offering the latest in interior design, and common areas such as a pool, gym, sauna and jacuzzi.The development is unique in the city for its rooftop outdoor areas, including a mini golf course, barbecue space and playground.

Launched in 2013, Lamudi is a global property portal focusing exclusively on emerging markets. The fast-growing platform is currently available in 34 countries in Asia, the Middle East, Africa and Latin America, with more than 800,000 real estate listings across its global network. wwwdailynews.lk

VIAL hails lowering import duty of electric cars from 50% to 5%

The Vehicle Importers Association of Lanka (VIAL) President Indika Sampath Merenchige said that the decision to lower the import duty of electric cars from 50% to 5% by President Maithripala Sirisena was a step taken in the right direction.

Electricity cars save energy and are also environmental friendly and hence they should be encouraged by the government over other vehicles. "We are happy that the government has understood this advantage and we thank them for this decision that would be advantageous to the vehicle import industry.

He said, however, that the prices of electric cars would increase slightly because of the revised valuation system. "Therefore an electric car would cost at least Rs. 2.8 million,"

During a cabinet meeting on Wednesday , President Maithripala Sirisena had re adjusted this tax increase.

Meanwhile Cabinet Co Spokesperson Minister Gayantha Karunathilake said the government had decided not to increase import tax on electric cars because of numerous requests by various individuals. "As a responsible government which considers people's opinions, we decided to withdraw the proposal," he said. The Minister also said the Cabinet had decided not to impose the increased import tax introduced in the Budget 2016 for all cars for which Letters of Credit (L/C's) had been opened before November 20.
www.dailynews.lk

Lanka Sathosa to turn around in six months

The loss making Lanka Sathosa would be turned around in six months, said new Chairman Dr Rohantha Atukorale.

He said that the institution is running in the excess of Rs. 30 million monthly loss and this is due to bad planning and positioning.

Dr Atukorale said that within the next three months all outlets will receive a face lift with the basic infrastructure corrected in lighting, freezer facilities and retail staff so that it can ensure that total basket of goods for a housewife can be bought at a Lanka Sathosa outlet.”

The Chairman said that they are also looking at introducing 185 new outlets by the end of the year to make it a 500 outlet institution.

Dr Atukorale said under the previous government there had been a buying spree of consumer goods which were not appealing to the customers of Lanka Sathosa. “In addition the institution also suffered billions of losses due to low quality rice imports sans quality control. “We are still paying for these financial sins, ” he said.

Asked if the Lanka Sathosa was over staffed the chairmkan said it was mainely at the head office. “However we can overcome this by assigning them to the new outlets that would be opened this year, ” he said.

Dr Atukorale who was earlier the Chairman of Sri Lanka Tourism Promotions Bureau said that once these dues are settled they would be in a better financial position. “No rocket science is needed to turn the institution around what you need is to develop the grocery business,” he said.

Sathosa has commanding store equity of 3.4 among the mass market consumer at a trial to retention rate of 67% that no other brand in the market can elucidate.

He said that they would also launch loyalty cards, special bank offers, gift vouchers and several such promotions to woo increase customers to patronize Lanka Sathosa. “We have appointed professionals to bring in new management thinking into the organization and expand the outlets so that we can meet the changing consumer requirements of the Sri Lankan consumer.

Whilst we are increasing the retail outlets we will introduce an internal quality laboratory so that we offer the best,” said Minister of Industry and commerce Rishad Bathuideen. “I want Sathosa to be not only a “price setter in the Sri Lankan retail industry but also the best supermarket chain that offers a value addition to a Sri Lankan household,” the Minister said.

He also assured that a three month stock cover on essential were available at the institution.

wwwdailynews.lk