Sri Lankan shares end at 2-week closing high; blue chips lead

Reuters: Sri Lankan stocks ended slightly firmer on Tuesday to a two-week closing high led by blue chips, amid foreign outflows and tax hike concerns.

Foreign investors sold a net 22.3 million rupees worth of shares on Tuesday extending the year-to-date net forging outflow to 3.03 billion rupees worth of equities.

The International Monetary Fund (IMF) on Friday said Sri Lanka's government, which has failed to raise taxes as promised when it received a $1.5 billion loan from the lender in June, needs to implement a tax reform package without further delay.

The reform package will include raising taxes to increase the government revenue and reduce fiscal deficit.

The benchmark index of the Colombo Stock Exchange finished up 0.07 percent, or 4.35 points, at 6,4783.29.

After four straight weekly losses, the index posted a weekly gain of 0.10 percent last week.

Turnover stood at 895.8 million rupees, more than this year's daily average of 752.2 million rupees.

Shares in conglomerate John Keells Holdings Plc rose 1.2 percent, while Commercial Credit and Finance Plc jumped 11 percent and Sri Lanka Telecom Plc rose 0.7 percent.

($1 = 146.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

Oxford Business Group produces infographic on Sri Lanka

Country eyeing higher levels of foreign investment across the economy

An infographic produced by the global publishing, research and consultancy firm Oxford Business Group (OBG) charts Sri Lanka’s journey towards global integration and its efforts along the way to boost broader-based Foreign Direct Investment (FDI).

OBG’s infographics are essential, at-a-glance tools that provide readers and viewers with a facts-and-figures summary of a market’s latest economic development. Brief and to the point, they complement the in-depth, sector-by-sector coverage in OBG’s country reports.

Data shows that FDI into Sri Lanka increased more than three-fold in the decade to 2014, with infrastructure the top recipient.

OBG’s infographic noted tourism’s rising contribution to GDP, with foreign arrivals up 18% in 2015 and expected to more than double by 2020. It also highlighted the positive impact that strong tourism growth was having on real estate, especially hotel supply, with stock rising by 35.7% in the three years to 2014 and further luxury developments in the pipeline.

Sri Lanka’s strategic position on the main sea trade routes of Europe and Asia continues to give the country a competitive edge, OBG found, with the country set to build on its status as a shipping and trans-shipment hub. The infographic noted that export throughput rose by 29.8% in the five years to 2015.

Further analysis of the country’s economy is available in Oxford Business Group’s latest publication, The Report: Sri Lanka 2016. The report is a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. It also contains interviews with leading representatives. The Report: Sri Lanka 2016 is available in print and online.

Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic intelligence on the markets of the Middle East, Africa, Asia and Latin America and the Caribbean. Through its range of print and online products, OBG offers comprehensive and accurate analysis of macroeconomic and sectoral developments, including banking, capital markets, insurance, energy, transport, industry and telecoms.

The critically-acclaimed economic and business reports have become the leading source of business intelligence on developing countries in the regions they cover. OBG’s online economic briefings provide up-to-date in-depth analysis on the issues that matter for tens of thousands of subscribers worldwide. OBG’s consultancy arm offers tailor-made market intelligence and advice to firms currently operating in these markets and those looking to enter them.
www.ft.lk

Sri Lanka’s Commercial Bank kicks off operations in Maldives

(LBO) – Sri Lanka’s Commercial Bank of Ceylon today started operations of its subsidiary in Male, Maldives, the bank said in a stock exchange filing.

Commercial Bank of Maldives private limited is a fully-fledged banking subsidiary which is set up in partnership with a Maldivian company.

The bank last year said the partner Maldivian group of companies is involved in businesses ranging from financial services, hotel and tourism and retailing.

Commercial Bank said it would invest in a 55 percent stake in this banking subsidiary with the remaining 45 percent owned by the partner company.

The new bank is to offer individuals and corporate entities in the Maldives a variety of financial services including savings and current accounts, FDs, ATMs, remittances, housing and other loans.

Sri Lankan companies operate hotels in the Maldives, a large number of Sri Lankans are employed in the Maldivian hospitality industry, and Sri Lanka provides services to Maldivian visitors in many spheres including education and healthcare.

Overseas Realty to raise Rs7.3bn in rights issue for Havelock City

(LBO) – Sri Lanka’s Overseas Realty is to raise 7.3 billion rupees by way of a rights issue, the company said in a stock exchange filing.

The company is to issue 355 million new ordinary shares at 20.50 rupees each in the ratio of two new shares for every five shares held.

The proceeds will be utilized to invest in the mixed development project of Havelock City Pvt Ltd.

The rights issue is subject to obtaining the listing approval of the stock exchange and the approval of shareholders at a General Meeting of the Company.

The current stated capital of the company is 11.2 billion rupees.

Overseas Realty engages in land and property business with the development of property for investment, property management and restaurant operation.