Sri Lanka central bank gets new deputy governor

ECONOMYNEXT - Assistant Governor of Sri Lanka’s central bank S. Lankathilake has been promoted to the post of Deputy Governor with effect from 24th January 2016.

A statement said Lankathilake has more than 30 years of experience in the central bank in the areas of economic and price stability, financial system stability and agency functions.

Prior to this appointment he held the position of the Assistant Governor in-charge of Bank Supervision, Supervision of Non-Bank Financial Institutions and Financial Sector Research Departments and Financial Intelligence Unit.

Lankathilake holds an MA in Economics and a Postgraduate Diploma in Economics from the University of Manchester, U.K., and a B.Com degree with 1st Class honours from the University of Peradeniya.

Lankathilake has also served as a member of the Board of Directors of Sri Lanka Export Credit Insurance Corporation, Board of Management of the Title Insurance Fund of Registrar General's Department, and National Labour Advisory Committee.

Sri Lanka to sack defiant 'Hilton' board

By ECONOMYNEXT Political Correspondent

ECONOMYNEXT - Sri Lanka's government is set to sack the board of the state-acquired enterprise which owns the Colombo Hilton building after they defied calls to step down, official sources said.

The Cabinet of Ministers are expected to discuss the removal of the board headed by Sagarica Neelamani Kumari Delgoda who has refused to resign despite repeated calls by Prime Minister Ranil Wickremesinghe.

"The board insisted that they were appointed by the Secretary to the treasury and as such they could not be removed by anyone else," a government source said. "But since the previous government expropriated Hotel developers, the board comes under a Competent Authority."

The government sanction is sought to get the Competent Authority to sack the entire board and allow Minister Kabir Hashim to make new appointments.

The directors who are fighting to stay on had been named when Ravi Karunanayake had charge of the company. But under the new government following August parliamentary elections, the subject of the hotel went to Hashim.

It has also been brought to the notice of the cabinet that a "settlement" in respect of the long-standing Hilton dispute may be illegal and any monies paid to shareholder and former director Nihal Ameresekere may be illegal.

Ameresekere's daughter Dheeshana Swarnarajini Ameresekere had been made a director of the Hotel Developers board by the new government despite the controversies surrounding them.

Sri Lanka's Aitken Spence to buy Oman's Al Falaj Hotel

ECONOMYNEXT - Sri Lanka's Aitken Spence Hotels said it had reached a deal to buy Al Falaj Hotel in Oman for 14 million Omani Riya;s (36 million US dollars).

The hotel, owned by Oman Hotels and Tourism Company has been managed by Aitken Spence since 2008.

Spence said the deal was subject to due diligence and regulatory approvals.

The Al Falaj hotel would be acquired though Aiken Spence Hotels International (Pvt) Ltd, a subsidiary company.

Aitken Spence said it was also managing four other hotels including Desert Nights Camp in Oman.

Sri Lankan shares fall for 3rd day to 1-wk closing low

Reuters: Sri Lankan stocks fell for a third straight session on Wednesday to a one-week closing low amid foreign outflow as investors worried over volatile global markets and rising returns on risk-free assets.

The main stock index ended 0.1 percent, or 6.41 points, lower at 6,316.46, the lowest close since Jan. 20.

"Even though market is still on a falling trend, there could be bounce back with the start of the earnings season and after the recent sharp fall," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.

The index has fallen 8.4 percent so far this year as foreign investors, unnerved by global concerns over China's economy, have cut their exposure.

Foreign investors sold a net 414.2 million rupees ($2.89 million) worth of shares on Wednesday, extending the year-to-date net foreign outflow to 2.69 billion rupees worth of equities.

The day's turnover was at 613.9 million rupees, less than this year's daily average of 781.2 million rupees.

The central bank rejected all bids at an auction on Wednesday, signalling it would not tolerate much increase in yields after the yield on the 364-day t-bill jumped 32 basis points to a more than two-year high of 7.80 percent last week.

This move could help investors return to the market, analysts said.

The central bank, as expected, kept its key policy interest rates unchanged on Monday.

Shares of Ceylinco Insurance Plc fell 3.57 percent while Trans Asia Hotel Plc lost 4.92 percent. Dialog Axiata Plc dipped 0.98 percent.

Shares in conglomerate John Keells Holdings Plc dropped 0.13 percent, while Commercial Bank of Ceylon Plc , the country's biggest listed lender, declined 1.09 percent. 

($1 = 143.1500 Sri Lankan rupees) 

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

Commercial Bank partners with Bank Muscat Oman

Instant, real-time fund transfers between Oman and Sri Lanka have become possible as a result of a tie-up between the Commercial Bank of Ceylon and Bank Muscat, the leading financial services provider in the Sultanate.

Commercial Bank is the first Sri Lankan bank to link with Bank Muscat for this purpose.

Account holders of Bank Muscat can now use the Bank’s all-new feature-rich mobile banking app to send cash remittances to recipients in Sri Lanka or transfer money to accounts at Commercial Bank 24/7.

They may also transfer funds to accounts at other banks in Sri Lanka via Commercial Bank.

“Commercial Bank was already a key facilitator of remittances to Sri Lanka from Oman,” the Bank’s Chief Manager e-Banking& Remittances, Pradeep Banduwansa said.

“With this partnership with Bank Muscat, the remittances arrive in Sri Lanka instantly and become available to recipients within minutes.”

Users of the Speed Transfer facility offered by Bank Muscat’s mBanking app can send up to 500 Omani Riyals a day to Sri Lanka. The app already has more than 350,000 registered users, including Omani nationals and expatriate account holders.

Commercial Bank recently launched a similar instant funds transfer facility between Bahrain and Sri Lanka by integrating its web system with that of Bahrain Financing Co. (BFC), enabling real time remittances via BFC’s EzRemit service to beneficiaries in Sri Lanka.

Commercial Bank is one of the most active players in Sri Lanka in the field of remittances, offering customers a range of options. Remitters can send money even without having an account in the Bank. The Bank has its own Business Promotion Officers (BPOs) in key markets around the world where significant numbers of Sri Lankans are employed.

The only Sri Lankan bank to be ranked among the Top 1000 banks of the world for five consecutive years, Commercial Bank operates a network of 246 branches, and a network of 618 ATMs in Sri Lanka. The Bank was ranked the most valuable private sector brand in Sri Lanka in 2014 and has also won multiple awards as Sri Lanka’s best bank from a number of international publications over several years. The Bank was adjudged one of Sri Lanka’s 10 best corporate citizens by the Ceylon Chamber of Commerce in 2013 and 2014.

www.dailynews.lk

Waters Edge in Rs 13 bn mega hotel project

Shirajiv Sirimane (shirajivs@gmail.com )

Waters Edge Private Ltd owned and operated by Urban Development Authority (UDA) will invest Rs. 13 billion to build a five star hotel and apartment complex.

This is the biggest hotel project to be constructed in Sri Lanka with local funding this year. The introduction of the hotel will also make the venue a one stop shop for Meeting Incentive Conference and Exhibitions (MICE).

The hotel will have 186 rooms and 225 apartments and will be built at the Waters Edge venue in Battaramulla.

Waters Edge Chairman Chamath De Silva said that a unique feature of this complex will be that the government will not have to invest any money for it. The UDA is expected to call for local and international tenders to build this hotel.

“We will raise the entre capital of for the complex by selling apartments.” However the management will borrow Rs. 6 billion to maintain the cash flow for the project.

DeSilva said the Waters Edge will also build a modern sports complex in similar fashion in an adjoining land of 12 acres.

“This will cater to 18 sports and here again it would be built by the private sector,” he added. He said that the Waters Edge also earned a record Rs. 200 million net profit for 2015. “We are aiming for a Rs, 1.3 billion revenue and a profit of Rs. 230 million for 2016.”

The institution which was taken over by the government subsequent to a court order in 2005, from a private entrepreneur is planning to go paperless from 2017.

In addition we also hope to diversify to entertainment and recreation to meet the future demands of the country. The management is also looking at introducing a special Sri Lankan dish with global acceptance similar to Kentucky Chicken and Pizza. “We have hired a special Research and Development arm for this and will invest around Rs. 10 million to meet this goal.”

The Water’s Edge also boasts of a sea plane landing facility, a pontoon to cater to 40 guests, many specialty restaurants and a large garden area for dining and hosting parties and weddings and many other facilities which helps the property to be marketed as a high end resort.

Today it has seven restaurants and seven banquets halls and is also building a business hotel in Colombo Fort which is expected to be opened in 2016. 

www.dailynews.lk