Sri Lankan shares snap 3 sessions of falls; flood woes weigh on mkt

Reuters: Sri Lankan shares rose on Wednesday, recovering from a more than three-week closing low hit in the previous session and snapping three straight sessions of falls, though floods and landslides that killed over 200 people weighed on sentiment.

The extent of the damage is yet to be assessed, with the country's main agricultural exports - tea and rubber - hit by the worst torrential rains in 14 years.

Analysts said it is too early to evaluate the real impact of the floods and landslides, though short-term disruptions in rubber tapping and plucking of tea leaves and buds could lead to a decline in output.

Inflation could rise in the short term, especially due to crop damages and distribution difficulties with regard to fresh food produce and staple food items, they said.

"Market is up mainly on local buying. Investors are still looking for bargains. They are waiting to see weather prices would come down further," said Dimantha Mathew, head of research, First Capital Holdings PLC.

The Colombo stock index ended 0.29 percent stronger at 6,674.32, posting a monthly gain of about 1 percent. It posted its lowest close since May 5 on Tuesday.

Turnover was 597.8 million rupees ($3.91 million) on Wednesday, less than this year's daily average of 901.2 million rupees.

Foreign investors, who have been net buyers of 19.42 billion rupees worth of equities so far this year, sold shares worth 43.1 million rupees on a net basis.

Dialog Axiata Plc jumped 3.42 percent, while conglomerate John Keells Holdings Plc rose 0.60 percent. 

($1 = 152.7500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Lanka Ashok Leyland records Rs. 11.4 bn revenue

Lanka Ashok Leyland ended another successful year with improved results touching total revenue of Rs. 11.4 billion owing to an excellent fourth quarter where revenue reached Rs 3.8 billion.

Lanka Ashok Leyland’s foray into export markets made significant gains this year which contributed in expanding the gross profit margin to 9% against 8.4% a year earlier.

Non-recurring expenses relating to tax charges and an impairment provision amounting to approximately Rs 120 mn drove up operating expenses by 44% to Rs 502.7mn from Rs 348.7mn in 2015.

Higher interest rates during the year drove up net finance expense by 64% to Rs 91.1mn against Rs 55.7mn in 2015 while interest bearing liabilities fell almost 9% to Rs 1.8bn from Rs 2 bn a year ago. Inventory levels rose 3% to Rs 3.9 bn for the same period. Profit before tax grew 12% to Rs 351.6mn compared to Rs 314.0mn posted for 2015.

Taking into consideration the non-recurring expenses and the improved performance, the board of directors has declared Rs 30 per share as a dividend representing a 20% increase over last year.

Commenting on the results, Umesh Gautam, CEO of Lanka Ashok Leyland said, “despite of frequent changes in the import duties, restricted leasing facilities and adverse market conditions, this year’s performance has been a reflection of the prudent financial management, collective effort by management and all our employees.

The bottom line remains healthy, notwithstanding the extraordinary line items on the firms’ operating expenses.

For another year, the key macro variables trended against us as average weighted lending rates rose approximately 200 basis points impacting demand while the Lankan Rupee lost around 4.5% against the US Dollar driving import prices up and negatively impacting our margins.

However the depreciation was not as severe as 2015, where the LKR fell over 9%, and we were able to navigate the risks better.

In focusing on the variables within our control, Gautam said “I am proud of the marketing team’s innovation, industry, and effort throughout the year to increase our market share and sales in the midst of a challenging environment.

Overall unit sales increased 10% year on year despite rising costs, partly driven by the construction sector which continues to be a driving contributor for national output”

We remain well capitalised as interest bearing liabilities fell almost 9% while inventories rose 3%. During the year, we were granted better terms of import through our principal Ashok Leyland, greatly helping our working capital positions.

Looking ahead, we continue to see strong demand emanating from key economic sectors such as the construction industry going into next year despite a challenging external environment for the rest. Interest rates may start to fall in the latter part of the year, however it depends on other economic factors and the success of government reform to tackle its foreign debt position. Addressing our over-reliance on domestic vehicle sales as a disproportionate portion of revenue, our export push has grown over 700% in the last year and we hope to make further gains.”
www.dailynews.lk

Ceylinco Life’s 1Q net profit up 58% to Rs 673 mn

Ceylinco Life has accelerated into FY 2017 posting robust income growth and exceptional profit growth for the three months ending March 31, 2017.

Sri Lanka’s life insurance leader reports that profit before tax improved by a noteworthy 51 per cent over 1Q, 2016 to Rs 822.73 million. Profit after tax for the three months, at Rs 673.34 million, reflected even higher growth of 57.8 per cent despite a 26 per cent increase in income tax for the period.

Gross written premium income was up 7.26 per cent to Rs 3.56 billion, the company said, while investment and other income grew by a remarkable 21.39 per cent to Rs 2.31 billion.

Ceylinco Life’s investment portfolio reached Rs 85.98 billion as at March 31, 2017, representing an increase of Rs 5.23 billion or 6.48 per cent since December 31,2016 and Rs 12.58 billion or 17.14% per cent over the preceding 12 months.

The company’s Life Fund stood at Rs 79.89 billion at the end of the quarter reviewed, a growth of Rs 1.97 billion or 2.53 per cent over three months.

“The figures for the first quarter are impressive, especially in the context of the prevailing volatility and uncertainty in the market,” Ceylinco Life Managing Director/CEO R. Renganathan said.

“We believe that our unrelenting focus on business fundamentals and astute investment strategies can be credited for this stellar performance.”

Ceylinco Life paid Rs 1.6 billion in net benefits and claims in the three months reviewed, a decrease of 7.81 per cent over the corresponding period of last year.

Total assets of the company grew by 5.4 per cent over the three months to Rs 101.738 billion.

At the end of the quarter under review, Ceylinco Life’s investment portfolio comprised of Government Securities (48 per cent); Fixed Deposits (13 per cent); Real Estate (9 per cent); Corporate Debt (29 per cent) and Others (1 per cent). All investments are made in conformity with the investment guidelines stipulated under the Regulation of the Insurance Industry Act No 43 of 2000 and are subject to regular monitoring by the Insurance Board of Sri Lanka (IBSL).

Ceylinco Life ended 2016 with Rs 23.43 billion in total income, with gross premium income of Rs 15 billion and investment income of Rs 8.78 billion.

www.dailynews.lk

Sri Lanka LPG firm Rs747mn in the red in March

ECONOMYNEXT - Profits at Sri Lanka's Laugfs Gas Plc which has interests in cooking gas, leisure and logistics lost 747 million rupees in the March 2017 quarter, with retail liquefied gas under price control, interim accounts show.

The firm reported a loss of 1.93 rupees per share for the quarter. In the year to March it reported a loss of 627 million rupees with leisure sector also in the red.

Gross revenues rose 30 percent to 5.0 billion rupees in the March 2017 quarter from a year earlier, but cost of sales rose at a faster 48 percent to 4.3 billion rupees, shrinking gross profits 27 percent to 683 million rupees.

International price of propane and butane, which is used to make LPG, rose dramatically from the last quarter of 2016, but has plunged from April.

The Saudi Aramco benchmark price for Butane rose to 600 US dollar a tonne in February 2017 from 315 dollar a year earlier. Price fell sharply to 390 dollar a tonne in May.

Propane which rose to 510 dollar a tonne in February has fallen to 385 dollar a tonne in May.

Distributors that do not hedge imports will benefit.

Sri Lanka’s Expolanka March net profit up 70-pct

ECONOMYNEXT - Sri Lanka’s Expolanka Holdings said March 2017 quarter net profit rose 70% to Rs255 million from a year ago.

Quarterly earnings per share of the firm, now controlled by Japan’s SG Holdings, rose to 13 cents from 08 cents over the period,

Group March quarter sales were up 8% to Rs15.2 billion with other income up sharply as were finance costs, according to interim accounts filed with the stock exchange.

Annual EPS was 49 cents with net profit down 14% to Rs955 million although sales went up 13% to Rs63.5 billion.

The accounts showed the group’s main logistics business profit went up only 4% to Rs1.7 billion during the year despite 15% sales growth.

But the group’s leisure business profit shot up 184% to Rs203 million on 12% sales growth.

Sri Lankan shares fall to over 3-wk closing low; floods weigh on mkt

Reuters: Sri Lankan shares fell for a third straight session on Tuesday, posting their lowest close in more than three weeks, as floods and landslides that killed over 190 people weighed on sentiment.

The extent of the damage due to the floods is yet to be assessed, with the country's main agricultural exports - tea and rubber - hit by the worst torrential rains in 14 years.

Authorities also warned on Tuesday of more rains and landslides as a cyclone formed in the Bay of Bengal.

"Short-term disruptions in rubber tapping and distribution difficulties with tea could lead to dwindling production. However, it is too early to comment since the actual extent of economic damage is not known," Danushka Samarasinghe, chief operating officer at Softlogic Stockbrokers, told Reuters.

May 30 Sri Lankan shares fell for a third straight session on Tuesday, posting their lowest close in more than three weeks, as floods and landslides that killed over 190 people weighed on sentiment.

The extent of the damage due to the floods is yet to be assessed, with the country's main agricultural exports - tea and rubber - hit by the worst torrential rains in 14 years.

Authorities also warned on Tuesday of more rains and landslides as a cyclone formed in the Bay of Bengal.

"Short-term disruptions in rubber tapping and distribution difficulties with tea could lead to dwindling production. However, it is too early to comment since the actual extent of economic damage is not known," Danushka Samarasinghe, chief operating officer at Softlogic Stockbrokers, told Reuters.

"Retail trade would get affected," he said, adding that demand for FMCG would rise on humanitarian support for flood and landslide victims while the construction sector is also likely to see higher activities in the coming period.

Inflation could rise in the short term, especially due to crop damages and distribution difficulties with regard to fresh food produce and staple food items, he added.

"The impact on the insurance sector could be too early to ascertain, though based on news reports it may not be as damaging as last year," Samarasinghe said.

The Colombo stock index ended 0.36 percent weaker at 6,655.25, its lowest close since May 5. It fell 0.47 percent last week, recording its first weekly fall in nine.

Turnover was 1.72 billion rupees ($11.28 million) on Tuesday, more than this year's daily average of 904.3 million rupees.

Commercial Bank of Ceylon, the country's top lender, edged up 0.1 percent and accounted for over 84 percent of the day's turnover.

Foreign investors bought shares worth 2.27 million rupees on a net basis, extending the year-to-date net foreign inflow to 19.46 billion rupees worth of equities.

Dialog Axiata Plc fell 1.7 percent, Lanka ORIX Leasing Co Plc dropped 2.3 percent, Hatton National Bank Plc slipped 0.8 percent and Hemas Holdings Plc closed 0.8 percent lower. 

($1 = 152.4500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lanka’s Royal Ceramics March net up 11-pct to Rs890mn

ECONOMYNEXT – Group net profit of Sri Lanka’s dominant tile maker Royal Ceramics Lanka (RCL) rose 11.3% to Rs890 million in the March 2017 quarter from a year ago driven by growth tiles and sanitaryware and strong growth in aluminium business.

Quarterly earnings per share rose to Rs8.03 from Rs7.21 the year before with sales at Rs7.8 billion, according to interim accounts filed with the stock exchange.

Annual EPS were Rs29.16 with net profit up 10% to Rs3.2 billion and sales up 8% to Rs29.3 billion.

Bartleet Religare Stockbrokers said in a research note that RCL’s March quarter EPS of LKR 8.03 was 8.9% lower that its forecast owing to lower than expected contribution from tiles and associated items

It noted that RCL’s bottom line growth was aided by saving on cost of goods sold, distributions expenses and income tax which fell 40.3% from a year ago.

The group’s aluminium business continued to be “a sturdy top and bottom-line contributor”, although aluminium prices are on the rise since late last year, Bartleet Religare Stockbrokers said.

RCL’s subsidiaries Lanka Tile and Lanka Walltile have been successful in curtailing cost for the last two years, partly due to the reduction in gas prices.

Sri Lanka’s Trans Asia Hotels March net up 45-pct

ECONOMYNEXT – Sri Lanka’s Trans Asia Hotels said March 2017 quarter net profit rose 45% to Rs447 million from a year ago with annual earnings also up sharply in the first full year of operations after being partly closed for refurbishment. .

Sales of the firm, which owns Cinnamon Lakeside Hotel, a five star hotel in Colombo, rose 3% to Rs853 million, according to interim accounts filed with the stock exchange.

Quarterly earnings per share of Trans Asia, owned by Asian Hotels and Properties, which is part of John Keells Holdings, rose to Rs2.24 from Rs1.54 a year ago.

EPS for the financial year ended 31 March 2017 were Rs4.54 with net profit at Rs907 million, up 183% from the year before when Cinnamon Lakeside Hotel had been partially closed for refurbishment for six months.

Sri Lankan shares fall to two-week closing low; floods weigh

Reuters: Sri Lankan shares fell on Monday in dull trade to close at their lowest in two weeks, as investors booked profits in heavyweights such as John Keells Holdings Plc and Commercial Bank Plc while floods and landslides that hit the island nation weighed on sentiment.

Sri Lankan authorities on Monday warned of more rains and landslides as a cyclone grew in the Bay of Bengal, while floods killed 164 people following the heaviest rainfall in 14 years.

The Colombo stock index ended 0.27 percent weaker at 6,679.46, at its lowest close since May 15.

The bourse fell 0.47 percent last week recording its first weekly fall in nine weeks.

Turnover on Monday stood at 270.6 million rupees ($1.8 million), well below this year's daily average of 895.9 million rupees.

Foreign investors bought shares worth 57.1 million rupees on a net basis, extending the year-to-date net foreign inflow to 19.46 billion rupees worth of equities.

"Profit-taking that started last week is continuing. The market is coming down on low volumes," said Dimantha Mathew, head of research, First Capital Holdings PLC.

"The floods might impact the earnings of companies, though there are no news of any of the factories of listed companies affected from floods. Investors are waiting to see the real impact of the floods."

Shares in conglomerate John Keells Holdings Plc and Nestle Lanka Plc fell 0.9 percent each, while biggest listed lender Commercial Bank of Ceylon Plc fell 1.2 percent. 

($1 = 152.7000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)

JKH posts record results in 2016/17 raises dividend payout

John Keells Holdings PLC, the premier blue chip quoted on the Colombo bourse and the biggest market capitalized company listed on the CSE has posted record results for the year ended March 31, 2017, and announced a final dividend of two rupees per share bringing up total dividend payments for the year under review to six rupees a share.

"While this is down from the seven-rupee per share dividend paid the previous year under special circumstance of distributing the capital profit earned from the sale of the general insurance business of Union Assurance, we have increased our dividend payment from the usual Rs. 3.50 per share to Rs. 6 a share," a company spokesman said.

"This together with the share split in June last year when every seven existing shares were subdivided into eight shares has substantially increased our dividend pay out."

In the 2016/17 results published on Friday, JKH said its group profit before tax was up 19% to Rs. 22.8 billion and the after tax profit was up 15% Rs. 18.1 billion. Group revenue too had topped Rs. 106 billion.

The year’s results translated to an earning per share of Rs. 11.85, up from Rs. 10.54 the previous year. Net assets per share had grown Rs. 128.75 from Rs. 111.70.

Against a stated capital of Rs. 62.79 billion, JKH had total assets of Rs. 277.27 billion and liabilities of Rs. 82.94 billion as at balance sheet date.

Major business segments including consumer foods and retail, leisure and transportation have grown their profits while the property sector had seen both a revenue and profit decline according to the year’s audited figures.

The country’s largest listed conglomerate quoted on the Colombo Stock Exchange, the group is into managing hotels and resorts in Sri Lanka and the Maldives, providing port, marine fuel and logistics services, IT, manufacturing food and beverages and running a chain of supermarkets.

Its business portfolio includes tea and rubber broking, stock broking, life insurance and banking and real estate with the company claiming on its website that "we have made our presence felt in virtually every major sphere of the economy."

"Since our modest beginnings as a produce and exchange broker in the early 1870s, we have been known to constantly re-invent, re-align and reposition ourselves in exploring new avenues of growth."

Mr. Sohli Captain with 10.8% of JKH, up from 9.9% a year earlier is the biggest individual shareholder. Captain-controlled Paints and General Industries is the third larges shareholder with 6.9%, down from 8.1% a year earlier. Melstacorp with 3.7% is number five in the Top Twenty list while the ETF with 1.7%, up from 1.5% a year earlier stands at No. 11.

JKH is the preferred stock of foreign investors and the majority of its large shareholders are foreign funds. The company’s executive directors too are substantial share holders though not on the Top 20 list.

www.island.lk

BPPL Holdings’ net profit up 42% to Rs. 436m

Next year’s financials to show impact of company’s green energy use
BPPL Holdings announced recently its unaudited financial results for the twelve months from April 2016 to March 2017.

BPPL's consolidated revenue for the period was Rs 2.4 billion, up 16% over the corresponding period in the previous year. The North American region accounted for 77% of the reported revenue. The region saw a 21% increase in revenue over the previous financial year. High growth was also seen in New Zealand, Indonesia and Sri Lanka although from smaller bases.

In the United States, robust revenue growth was seen in the food services, janitorial and oil and gas sectors. Revenue slowed in Australia and Britain due to client inventory adjustments and new product launches in the previous financial year causing increased orders in that year. Sales to Britain were also affected by Sterling depreciation vs. the Sri Lankan Rupee during the period.

Overall revenues were also strong as the company pursued its dual objectives of penetrating the household market segment both through direct sales to retailers and own branded goods sales in Sri Lanka and Indonesia. Direct sales accounted for 10% of total sales for the period, up 20% year-on-year. Own branded goods also grew by 59%, again over the corresponding period in the previous year.

Gross profit was up by a faster 26% year-on-year to Rs963 million due to margin expansion amid revenue growth. Gross profit margins, which improved from 37% to 40% during the twelve month period ended March 2017, continued to benefit from higher productivity, lower freight rates, lower costs as a result of improved raw material sourcing and Sri Lankan Rupee depreciation against the US Dollar.

Improved productivity and stringent cost controls also led to a 41% increase in operating profit (EBIT) to Rs512 million compared to the same period in the previous year. Moreover, margins continued to expand to 20% at a Profit-Before-Tax level due to lower interest expenses as accumulated profits were used for debt retirement. Profit-Before-Tax was Rs491 million for the period whilst Profit-After-Tax attributable to the company’s shareholders was Rs436 million, an increase of 42% year-on-year. Non-annualized EPS for the period amounted to Rs1.42.

Meanwhile, BPPL Holdings moved ahead with its plans for extruding synthetic yarn by placing orders with machinery suppliers following successful trials conducted with its own hot washed recycled PET flakes and discussions with leading textile producers. The construction of a new factory in the Horana BOI Industrial Zone also commenced in January 2017. This yarn production facility, which involves an investment of Rs675 million, is set to come on-stream in the January to March quarter of 2018 and contribute to revenue from April 2018.

The company also commenced power generation from its own 347KW solar and 200KW biomass based power plants at the end of March’17. A full year’s impact of this would be seen in the new financial year ending March’18.

www.island.lk

Sri Lanka's Lankem unit buys injection moulding firm

ECONOMYNEXT – Sri Lanka's Lankem Ceylon said its fully owned J. F. Packaging (Pvt) Ltd. subsidiary had acquired a firm doing injection moulding, a manufacturing technology used to make a wide range of plastic products.

A stock exchange filing said J.F Packaging had acquired a 100% stake in Alliance Five Pvt Ltd. for Rs150 million.

In April Lankem Ceylon got full control of J. F. Packaging for Rs.320 million by buying the remaining 27.5 percent of the firm.

Sri Lanka’s Aitken Spence March net profit doubles to Rs1.2bn

ECONOMYNEXT – Sri Lanka’s Aitken Spence PLC said March 2017 quarter group net profit doubled to Rs1.2 billion from a year ago.

Sales of the group, with interest from hotels and shipping to plantations and power generation, rose 94% to Rs15.4 billion, according to interim accounts filed with the stock exchange.

Quarterly earnings per share were Rs3.03.

EPS for the financial year ended 31 March 2017 were Rs7.12 with annual profit up 43% to Rs2.9 billion on sales of Rs46 billion.

“The holding company’s revenue growth reflected across all key operational sectors including tourism, maritime and logistics, strategic investments and services,” a statement said.

“The mid to long term strategic investments made by the group in preceding years performed well in spite of challenging market conditions.”

The tourism sector recorded a growth of 32% in revenue to Rs24 billion, while the maritime and logistics, and services sectors reported revenues of Rs9.9 billion and Rs1.7 billion, indicating a growth of 20% and 43% over the year.

The group had identified tourism and maritime and logistics as key growth sectors, and “have made significant strides in the current financial year to expand the group’s footprint in these selected business domains,” Aitken Spence chairman Harry Jayawardena said.

“We have been quick to identify new investment opportunities where we can diversify to remain relevant in the present business context,” he said.

“We seek strategic partnerships with global partners that would provide a competitive edge in the markets we intend to serve.

The group invested Rs5.8 billion in acquiring property, plant and equipment with the investments expected make returns in the medium to long term.

Sri Lankan shares end lower on profit-booking; John Keells falls

Reuters: Sri Lankan shares ended lower on Friday, recording their first weekly decline in nine, as investors booked profits in shares of diversified companies such as John Keells Holdings Plc and Melstacorp Plc .

The Colombo stock index ended 0.25 percent weaker at 6,697.86. On Tuesday the bourse hit its lowest close since May 15 hit on Tuesday. The bourse fell 0.47 percent during the week recording its first weekly fall in nine weeks.

The index rose 0.86 percent last week.

Turnover stood at 237.4 million rupees ($1.56 million), well below this year's daily average of 902.4 million rupees.

Foreign investors net bought shares worth 15.3 million rupees worth of shares extending the year-to-date net foreign inflow to 19.39 billion rupees wroth of equities.

"Market has came down on low volumes. Though there is no serious selling pressure, there is a bit of a wait-and-watch attitude to see whether selling will come," said Dimantha Mathew, head of research, First Capital Holdings PLC.

"Investor's are waiting to buy at bargain prices."

Shares in conglomerate John Keells Holdings Plc fell 0.65 percent while biggest listed lender Commercial Bank of Ceylon Plc fell 1.16 percent and Melstacorp Plc ended 1.35 percent weaker and Colombo Cold Stores Plc fell 0.95 percent.

($1 = 152.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Vyas Mohan)

Cabinet nod for 1,040 MW hybrid wind and solar energy park in Pooneryn

The Government has received approval from the Cabinet of Ministers to set up a 1,040 MW hybrid wind and solar energy park in Pooneryn in the battle-scarred Northern Province.

The Cabinet at its meeting held on Tuesday has approved plans to build a hybrid renewable energy park including 240 MW of wind and 800 MW of solar at Pooneryn.

According to the Government’s policy to add a considerable amount of electricity to the national grid through renewable energy sources, the Government recently established several such energy projects in the country.

The Sri Lanka Sustainable Energy Authority (SLSEA) has identified the northern regions of the country as a suitable area to build wind power and solar power plants.

The Government expects to add a significant amount of electricity from renewable energy to the national grid.

Accordingly, the Cabinet has approved a proposal made by the Minister of Power and Renewable Energy Ranjith Siyambalapitiya to implement the project to build the hybrid energy park consisting of 240 MW wind and 800 MW solar power in three stages.

www.ft.lk

Kandy Hotels invests Rs. 600 m for 16% stake in Hotels Corp. subsidiary with Maldives exposure

Kandy Hotels Plc has acquired 16.1% stake in United Hotels Ltd. for Rs. 600 million.

The stake amounts to 48 million shares and the purchase was made at Rs. 12.50 each.

United Hotels is a subsidiary of Ceylon Hotels Corporation. It owns 100% of Ceylon Hotels Maldives Ltd, which owns 100% of Handhuvaru Ocean Holidays Ltd, the Maldivian venture. www.ft.lk

Commercial High Court orders publication of Gazette of application to liquidate Lanka Sugar

• Litigation by Gal-Oya Plantation Ltd. following non-payment of Rs. 151 m debt

• Pelawatte Sugar Company and Sevenagala Sugar Company come under Lanka Sugar

The Commercial High Court yesterday ordered that publication be made in a gazette and in daily papers to liquidate Lanka Sugar Ltd. on an application filed by Gal-Oya Plantation Ltd.

Gal-Oya Plantation Ltd. had filed this action in the Commercial High Court of Colombo in terms of section 271 of the Companies Act.

Gal-Oya Plantation Ltd. stated in its petition that it is a creditor of Lanka Sugar Ltd. as it has provided Molasses worth Rs. 151,129,655.85 and had requested the same amount be paid on several instances. Thereafter it has demanded that said amount be paid and Lanka Sugar Ltd. has not acceded to this request. Thereafter, a statutory notice had been sent to Lanka Sugar Ltd. and the case had been filed thereafter that Lanka Sugar Ltd. be liquidated on the basis that it shall be deemed unable to pay off its debts.

Lanka Sugar Ltd. is the entity under which both the Pelawatte Sugar Company and Sevenagala Sugar Company come under.

It was submitted in court that the Chairman of Lanka Sugar Ltd, having accepted the liability in writing, had thereafter attempted to dispute the amount claimed on the footing that it was only a confirmation made for audit purposes.

The Court, being satisfied prima facie with the case of Gal-Oya Plantation Ltd, ordered that publication be made in a Gazette and the daily papers by 4 July 2017 notifying that an application had been made to Court to wind up Lanka Sugar Ltd.
www.ft.lk

DFCC makes Rs. 915 m profit from 1% COMBank stake sale

• Melstacorp the buyer; stake now over 4%

DFCC Bank yesterday disclosed that it made a one-off after-tax profit of Rs. 915 million from the sale of a 1% stake in Commercial Bank on Wednesday.

It sold 10 million shares at Rs. 138 each in a deal worth Rs. 1.38 billion.

The buyer was Melstacorp Plc, which previously held a 3.39% stake or 28.65 million shares. DFCC, the largest shareholder in Commercial Bank, held 14.69% as of end March 2017.
www.ft.lk

Sri Lankan shares edge up as banks gain

Reuters: Sri Lankan shares ended marginally higher on Thursday as banking shares rose, but profit-booking in several recent outperformers capped gains.

The Colombo stock index ended 0.05 percent firmer at 6,714.95, further moving away from its lowest close since May 15 hit on Tuesday.

The index rose 0.83 percent last week and has climbed 11 percent since March 31 through Friday.

Turnover stood at 394 million rupees ($2.58 million), well below this year's daily average of 909.4 million rupees.

Foreign investors net sold shares worth 4.53 million rupees worth of shares, but they have been net buyers of 19.39 billion rupees wroth of equities so far this year.

Shares in Nanda Investment Plc rose 8.17 percent, while Lion Brewery Plc rose 5.99 percent and DFCC bank Plc ended 3.75 percent up.

($1 = 152.7800 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Vyas Mohan)

Sri Lanka's HNB Assurance records a ‘robust’ Q1

HNB Assurance PLC (HNBA) and its fully owned subsidiary HNB General Insurance Limited (HNBGI) posted a Profit After Tax (PAT) of LKR 74 MN for the first quarter of 2017, reflecting a 121% growth compared to LKR 33 MN recorded during the corresponding period last year.

The Group achieved a growth of 18% during Q1 of 2017, posting a Gross Written Premium (GWP) of LKR 1.9 BN against the GWP of LKR 1.6 BN recorded during the same of 2016. The Life Insurance Company posted a GWP of LKR 988 MN and the General Insurance Company posted a GWP of LKR 929 MN during the period under review. The Group was able to deliver a steady performance as a result of the strategic initiatives implemented in new business acquisition as well as streamlining its core business operations.

The key contributors to the reported growth were identified as the growth in both Individual and Corporate Policies of the Life Insurance Company as well as the contribution of the Motor segment of the General Insurance Company. On a comparable basis with the results of the corresponding period of 2016, the post-tax profit of the Life Insurance business showcased a growth of 66%. The businesses were successful in capturing new market segments and seizing profitable growth opportunities, despite the challenging market and economic conditions. The recorded growth was in line with the Group’s expectations on the phase of maximizing its profits as well as in delivering value to its stakeholders.

Sharing thoughts on the financial performance of the Group, Chairperson of HNBA and HNBGI Ms. Rose Cooray stated, "We are indeed pleased on the results the Group was able to yield at the end of the first quarter of this year, amidst the stiff competition and other macroeconomic factors. The Group surpassed the LKR 15 BN milestone of Total Assets during the first quarter of 2017 and Investments in Financial Instruments reached a value of LKR 12 BN. During the same period the Life Insurance Fund grew by 7% while the General Insurance Fund grew by 5% reaching values of LKR 9 BN and LKR 2 BN respectively. These results reflect the favorable direction the company is headed and the Board, the management and staff of both HNBA and HNBGI are committed to improve the financial performance of the Group as well as to strengthen the competitive positioning of both HNBA and HNBGI". - HNBA

‘Allianz Lanka registers impressive Q1 2017’

Allianz Lanka continued to maintain its growth momentum across its life and general insurance businesses through Q1 2017.

The Non-Life company, Allianz Insurance Lanka Ltd., recorded 33% YoY growth in Gross Written Premium (GWP) at Rs.1.493 billion during the period under review, with a Profit After Tax (PAT) of Rs. 13 million despite expenditure on expansion.

The Life company, Allianz Life Insurance Lanka Ltd., registered a 7% YoY growth in GWP, ending the quarter at Rs.277 million with an impressive growth of 23% in annualized new business fueled by Universal Life Products which contributed Rs. 174 million. The PAT stood at Rs.24 million which marked a continuation of making profits since last quarter 2016.

Commenting on the company’s performance during the quarter, Surekha Alles, Chief Executive Officer - Allianz Lanka, said, "I’m excited to report that we have recorded a positive start to FY 2017 with both the life and non-life businesses registering steady growth. Our efforts to expand our retail network around the country were instrumental in helping Allianz Insurance Lanka Limited register impressive growth in GWP. This together with the uniqueness of our products has helped us gain the confidence of customers and grow the business. The parent company Allianz SE’s capital infusion of Rs.405 million too contributed to the non-life business’ growth numbers. Allianz Life Insurance Lanka Limited was able to consolidate its market position with a focus on recruitment and new business creation under its new leadership in sales. Energized by these results, we look forward to continuing to grow our business through FY 2017."

Prevailing high interest rates together with the company’s prudent investment strategy helped drive 70% and 17% growth in investment income in the non-life and life businesses, respectively. The non-life business’ investment portfolio grew by 23% YoY to Rs.2.301 billion while the life business’ investment portfolio grew by 34% YoY to Rs.2,105 million. - Allianz Lanka

Fitch downgrades Kotagala to 'CC(lka)' on worsening liquidity

Fitch Ratings Lanka has downgraded Sri Lanka-based Kotagala Plantations PLC's National Long-Term rating to 'CC(lka)' from 'B+(lka)'. The agency has also downgraded the National Long-Term rating on Kotagala's outstanding listed senior secured debentures of LKR1 billion to 'CC(lka)' from 'B+(lka)'.

The downgrade follows continued deterioration in the company's liquidity, as its operating EBITDA weakened further in the financial year ending-March 2016 (FY16) due to falling tea and rubber prices, high labour costs and poor labour productivity. Consequently, Kotagala's operating EBITDA of LKR30 million was insufficient to cover its borrowing costs of LKR503 million and the company had to utilise cash reserves to meet most of its financial obligations.

The company's EBITDA recovered to LKR247 million in 9MFY17, from LKR198 million in 9MFY16, driven by improving tea and rubber prices. However, we expect EBITDA to fall short of meeting the company's borrowing costs and operating lease rent in the next 12 months-18 months. Kotagala has around LKR546 million of bank loan maturities due in FY18. The company has benefitted from banks' willingness to restructure its borrowings in the past. However, principal repayments on its listed senior secured debenture will fall due in FY19, starting with LKR250 million principal due in May 2018.

Weak Liquidity; High Refinancing Risk: Kotagala faces substantial debt maturities from FY18 and we believe it will be challenging for the company to meet its obligations due to its low cash balance and negative free cash flow generation in the next two years. Further, the company does not have any committed credit lines at its disposal, limiting its financial flexibility and exposing it to significant refinancing risk. The company's efforts in FY16-FY17 to lower debt via asset disposals and extending the maturity of part of its existing debt has not led to a sustained improvement in liquidity.

Challenging Operating Conditions: The profitability of Kotagala's tea and rubber plantations has improved in the previous few months with rebounding global prices, but we do not believe the improvement is sufficient to offset the sector's structural decline stemming from continued supply-side pressure, such as lower productivity and high labour costs.

www.island.lk

Sri Lanka Watawala Plantations March quarter net profit up 168-pct

ECONOMYNEXT - Sri Lanka’s Watawala Plantations said net profit rose 168% to Rs212 million in the March 2017 quarter from a year ago with its tea business returning to profit and despite a sharp fall in palm oil earnings.

Sales of the group rose 5% to Rs1.8 billion over the period, according to interim accounts filed with the stock exchange.

Quarterly earnings per share were 89 cents compared with 32 cents a year ago. The stock last traded at Rs33.60.

The accounts showed Watawala Plantations’ tea business returned to profit in the March 2017 quarter while there was a sharp fall in palm oil profit.

“The palm oil segment profitability was below the expectations as the government reduced the duty on palm oil by Rs 40/- in 4QFY17,” said Watawala Plantations Managing Director Vish Govindasamy.

In the year to March 2017, EPS was Rs5.18 with net profit up 137% to Rs1.2 billion which Govindasamy said was Watawala’s highest ever profit “on the back of the increased performance in oil palm and tea segment.”

Palm oil continued to be the highest contributor to the company’s annual profitability, mainly because of the increased crop and higher Net Sale Average achieved during the year, he said.

Watawala Plantations achieved the highest profitability by any regional plantations company since privatization, he said.

Sri Lanka 03-month Treasury Bill yield steady at 9.62-pct

ECONOMYNEXT – The yield on 03-month Sri Lankan Treasury Bills stayed steady at 9.62 percent at Wednesday’s auction, the same as last week, the public debt department of the Central Bank said.

The 06-month t-bill yield fell to 10.40 percent from 10.42 percent last week and the 01-year bill yield remained at 10.73 percent the same as last week.

A statement said the public debt department got 77 billion rupees worth of bids and accepted bids worth 25 billion rupees.

Sri Lankan shares rise as foreign investors buy blue chips

Reuters: Sri Lankan shares edged up from a one-week low on Wednesday as foreign investors bought shares in blue chips such as John Keells Holdings PLC, with turnover hitting a 5-week high.

The Colombo stock index ended 0.32 percent firmer at 6,711.67, from its lowest close since May 15 hit on Tuesday.

The index rose 0.83 percent last week and has climbed 11 percent since March 31 through Friday.

Turnover stood at 3.56 billion rupees ($23.33 million), its highest since April 19 and well above this year's daily average of 886.5 million rupees.

Foreign investors net bought shares worth 879.4 million rupees, extending their year-to-date net inflows to 19.4 billion rupees.

"Continuous foreign participation improved market sentiment and we see that local participation is also improving which is a good sign," said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Shares in Hemas Holdings Plc jumped 5.40 percent, while the biggest listed lender, Commercial Bank of Ceylon Plc , climbed 1.47 percent and conglomerate John Keells Holdings Plc was up 1.19 percent. 

($1 = 152.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Biju Dwarakanath)

CIC embarks on 2020 re-strategising, retains MTI

• Dedicates 2017/18 for business rationalisation and strategic re-alignment

The diversified conglomerate CIC Holdings has embarked on a major strategic change initiative titled ‘2020 Re-strategising’, which will see the group undertaking an intensive business rationalisation exercise, followed by strategic and organisational re-alignment. MTI Consulting has been retained for this 12-month assignment – covering CIC Holdings, CIC Agri and Chemanex.“In 2013/14 we undertook the first phase of our re-strategising exercise, post which the Group had three successive years of healthy growth. We now embark on the final phase of this strategic change initiative aimed at ensuring a future proof business to meet both the challenges and opportunities in the multiple domains we operate in. This year (2017/18) we plan to go through an intense round of business and organisational rationalisation, so that we are ready for a more profitable 2018/19, with a highly focused business portfolio and a much leaner and agile organisation. In order to facilitate this process, in 2017/18 we need to take a step-back, rationalise and re-focus – with the strategic intent of a much stronger business model and operating performance in 2018/19,” stated Group Managing Director/CEO Samantha Ranatunga, who is spearheading this initiative.Led by their International CEO Hilmy Cader, MTI has assigned a multi-disciplinary team of international and local consultants, analysts and project managers for this CIC assignment.

Commenting on this assignment, Cader said: “Astute organisations recognise the need to challenge and critique its own performance even when the going is good, so as to further strengthen its strategic and operational agility. CIC is well positioned in its three main operating domains i.e. agri, healthcare and industrial solutions. This exercise, while making some conscious rationalisation in 2017/18, will strengthen the business fundamentals and gear up for high growth in 2018/19 and beyond.”
www.ft.lk

Sri Lanka’s People`s Merchant Finance sells property for Rs1bn

ECONOMYNEXT - People`s Merchant Finance (PMF) said it had sold a 108-perch property to its parent firm, Sri Lanka’s state-owned People's Bank, for just over a billion rupees that would help settle debt and which may increase profitability.

A stock exchange filing said the related party transaction was done on normal commercial terms after two valuations including one by the government valuer.

The 108.4 perch property is located at No. 21 Nawam Mawatha, Colombo 2, part of the capital’s business district.

The funds will also be used to strengthen People's Merchant Finance’s core capital in order to meet minimum capital requirements set for finance companies.

“The excess money may be used for future expansion of PMF,” the statement said. “It may increase the net interest income and profitability of PMF accordingly.”

Sri Lankan shares fall on profit-taking; cues from new finmin awaited

COLOMBO May 23 Sri Lankan shares fell for a second straight session and hit a near one-week low on Tuesday on profit-taking, while investors cautiously awaited policy direction from the country's new finance minister.

President Maithripala Sirisena switched the finance and foreign ministers in a cabinet reshuffle on Monday, in a bid to restore confidence in the administration's handling of the economy.

The Colombo stock index ended 0.55 percent weaker at 6,689.96, its lowest close since May 15.

The bourse recorded its highest close since Jan. 7, 2016 on Friday.

The index rose 0.83 percent last week and has climbed 11 percent since March 31 through Friday.

Turnover stood at 807.7 million Sri Lankan rupees ($5.29 million), less than this year's daily average of 886.5 million rupees.

"Market took a breather as there was a bit of a retail selling while local participation was low," said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

"The turnover levels are still good and we see continued foreign buying, a good sign."

Foreign investors net bought shares worth 527.6 million rupees worth of equities on Tuesday, extending their year-to-date net inflows to 18.5 billion rupees.

Shares in Lion Brewery Plc fell 9.89 percent while Nanda Investment Plc fell 13.17 percent.

Ceylon Cold Stores Plc ended 2.59 percent weaker while the biggest listed lender, Commercial Bank of Ceylon Plc , fell 1.09 percent.

($1 = 152.6500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Vyas Mohan)

Sri Lanka's Alumex March quarter net up 25-pct

ECONOMYNEXT – Alumex, the aluminium extrusions subsidiary of Sri Lanka's Hayleys group, said net profit rose 25 percent to 263 million rupees in the March 2017 quarter from a year ago.

Sales increased 27 percent to 1.5 billion rupees, according interim accounts filed with the stock exchange, which also showed much higher tax costs.

Quarterly earnings per share were 88 cents. Alumex shares last traded at 24.10 rupees.

Alumex Group has a dominant market share and has increased capacity to meet growing demand from the booming construction sector.

EPS for the financial year ending 31 March 2017 were 2.52 rupees, with annual net profit up 28 percent to 753 million rupees and sales growing 18 percent to 4.7 billion rupees.

Islamic Development Bank to buy more stock in Sri Lanka's Amana

ECONOMYNEXT - Islamic Development Bank will invest more cash in Sri Lanka's Amana Bank Plc through an investment vehicle.

Amana Bank said in a stock exchange filing that approval had been given for the investment group to go up to 29.9 percent of the stock by subscribing to a cash call.

IB Growth Fund (Labuan) LLP, which is a subsidiary of the Islamic Corporation for the Development of the Private Sector (ICD), will buy stock in in an upcoming rights issue. ICD is owned by Islamic Development Bank.

The investment deal was inked on May 18 in Jeddah, Saudi Arabia, the firm said.

Sri Lanka's Janashakthi Insurance net down in March quarter

ECONOMYNEXT - Sri Lanka's Janashakthi Insurance Plc said profits fell 39 percent in the March 2017 quarter from a year earlier amid a spike in claims, but the firm has posted double-digit growth in gross written premium.

Janashakthi Insurance reported earnings of 40 cents per share for the quarter. The firm said life premiums grew 16 percent and non-life rose 14 percent.

After re-insurance costs, net written premiums also grew 9.6 percent to 3.0 billion rupees.

Investment income increased 39 percent from a year earlier to 600 million rupees in the quarter.

Claims payments rose 15 percent to 1.77 billion rupees.

“I am happy to report that both our Life and Non-Life businesses continue to register double-digit growth through the first quarter of 2017, allowing us to kick off financial year 2017 on a positive note despite a rise in claims payments," Managing Director Prakash Schaffter said in a statement.

Total assets grew to 32.7 billion rupees from 32.1 billion rupees. Equity was 8.59 billion rupees, from 9.0 billion rupees a year earlier.

Sri Lankas' First Capital Holdings return to profit in March quarter

ECONOMYNEXT - Sri Lanka's First Capital Holdings Plc, which has interests in investment banking and securities trading, reported profits of 94 million rupees in the March 2017 quarter, against a loss of 86 million rupees, a year earlier.

The firm reported earnings of 94 cents per share.

Group revenues rose to 842 million rupees from 394 million rupees a year ealier, while costs rose to 725 million rupees from 278 million rupees.

Capital gains on trading rose to 67 million rupees from a loss of 109 million rupees a year earlier.

The group said First Capital Treasuries Plc, its primary dealer unit, was the key contributor to profits, making gains on its securities portfolio.

First Capital Limited, which deals in corporate debt, mobilized 12.4 billion rupees from corporate debt. But it was hit by higher funding costs and losses on trading securities, the firm said.

"Despite the setback experienced in the preceding quarters, the Group is optimistic in its outlook and has planned several calculated improvements to its operations," Group Chief Executive Dilshan Wirasekara said.

Sri Lanka Hayleys March net down 8-pct to Rs1.3bn

ECONOMYNEXT – Sri Lanka’s Hayleys group said net profit fell 8% to Rs1.3 billion in the March 2017 quarter from a year ago.

Sales of the group, whose core businesses span transportation, purification, agriculture, construction materials and power rose19% to Rs29.2 billion, a stock exchange filing said.

The accounts showed finance costs rose 74% to just over a billion rupees in the March 2017 quarter.

Quarterly earnings per share were Rs17.63. The company’s share was last traded at Rs293.90.

“Over the final quarter of the year, the group’s performance received a strong boost, particularly from its agriculture, construction and transport segments, to finally register turnover growth of 19% year-on-year, up to Rs. 29.2 billion,” a statement said.

“Results from operating activities rose to Rs. 3.52 billion, reflecting 24% YoY growth. Similarly, profit before tax (PBT) for the final quarter rose by 9% YoY to Rs. 2.96 billion.”

The accounts showed EPS fell to Rs37.12 in the financial year ending 31 March 2017 from the year before with annual net profit down 11% to Rs2.8 billion while sales rose 21% to Rs111.4 billion.

The Hayleys statement said sales were supported by strong performances across the group’s core businesses.

“This led to a substantial 14% YoY improvement on the group’s results from operating activities, which closed the year at Rs. 9.67 billion,” it said.

“Moving forward we will continue to consolidate our operations with a view to further strengthening overall profitability while also exploring opportunities to expand growth within our current business segments.” Hayleys chairman and chief executive, Mohan Pandithage said.

All of the group’s top five performing sectors posted pre-tax profits in excess of Rs. 1 billion.

Transportation and Logistics recorded a PBT of Rs. 1.79 billion, Purification Products posted a PBT of Rs. 1.18 billion, and the Group’s Agriculture segment achieved a PBT of Rs. 1.1 billion.

The group’s Power and Energy sector achieved a PBT of Rs. 1.02 billion whilst commissioning one of Sri Lanka’s largest Solar Power plant of 10MW during the year, Hayleys said.

The Construction Materials segment posted a PBT of Rs. 1.02 billion during the period under review.

Sri Lankan shares fall on profit-taking in blue chips

Reuters: Sri Lankan shares edged down on Monday as investors booked profits in blue chips such as John Keells Holdings Plc, with analysts saying the market was waiting for policy direction from newly-appointed finance minister Mangala Samaraweera.

President Maithripala Sirisena switched the finance and foreign ministers in a cabinet reshuffle on Monday, in a bid to restore confidence in the administration's handling of the economy.

The Colombo stock index ended 0.04 percent weaker at 6,726.90, slipping from its highest close since Jan. 7, 2016 hit on Friday.

The index rose 0.83 percent last week, and has climbed 11 percent since March 31 through Friday.

Turnover stood at 335.6 million rupees ($2.20 million), well below this year's daily average of 887.3 million rupees.

"The market is struggling to break the current psychological level. The market need a bit of a breather before it kickstarts again. We are seeing a bit of profit-taking," said Dimantha Mathew, head of research, First Capital Holdings PLC.

Foreign investors net sold shares worth 30.6 million rupees on Monday, but they have net bought 17.98 billion rupees worth of shares so far this year.

Shares in biggest listed lender Commercial Bank of Ceylon Plc fell 3.41 percent, while conglomerate John Keells Holdings Plc ended 0.30 percent weaker. 

($1 = 152.5000 Sri Lankan rupees) 

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

Sri Lanka's Access Engineering March net up 31-pct

ECONOMYNEXT - Sri Lanka's Access Engineering Plc, a construction group, said profits in the March 2017 quarter rose 31 percent to Rs831 million from a year earlier.

Sales rose 14 percent to Rs5.2 billion in the March quarter, according to interim accounts filed with the stock exchange.

Quarterly earnings per share rose 30 percent to 83 cents from 64 cents. The share last traded at Rs26.30.

EPS for the financial year ended 31 March 2017 rose 9.3 percent to Rs2.70 with annual net profit at Rs2.7 billion while sales rose 16 percent to Rs20.4 billion.

The increase in annual profits came mainly from the construction business with profit from its Sathosa Motors subsidiary, which holds the franchise in Sri Lanka for Isuzu Motor vehicles, falling.

Stockbrokers close outstation branches

By Duruthu Edirimuni Chandrasekera

Some stockbrokers, with the stock market continuing to show negative returns, are closing their outstation branches in a move to cut costs and manage their bottom lines.

While brokerages are faced with several serious issues and their cash-flows are strapped, some companies are mulling pay cuts as well. Some closed nearly four branches outstation, they told the Business times adding that altogether about 12 branches were closed by March. The Securities $ Exchange Commission (SEC)’s new rules in capital adequacy which direct the implementation of a risk based Capital Adequacy Requirement (CAR) of 1.2 times the risk requirement of stock brokers subject to a minimum liquid capital requirement of Rs. 35 million is also curtailing operations, they said.

These firms had met with both the Colombo Stock Exchange (CSE) and the SEC and requested for ‘assistance’, they said.

Officials of both institutions confirmed this saying that some firms had approached them in March for assistance but they had not specified ‘what’. CSE officials said that since April, the CSE has showed buoyancy and the stockbrokers haven’t come back to them on closing branches.

They said that some run their branches on CSE premises which are subsidised by the CSE. “Branches at Matara, Kandy, Kurunegala, Negombo and Jaffna are highly subsidised. They pay a minimal rent only and no utilities,” a CSE official said, adding that now with retailers rejoining the CSE things may change for the better.
www.sundaytimes.lk

Sri Lankan shares rise; post 8th straight weekly gain

Reuters: Sri Lankan shares ended higher on Friday, posting the eighth straight gain on week and hitting their highest closing level in more than 16 months, led by blue chips such as John Keells Holdings Plc.

The Colombo stock index ended 0.47 percent firmer at 6,729.66, its highest close since Jan. 7, 2016.

It rose 0.83 percent during the week, and has climbed 11 percent since March 31.

Turnover stood at 618.02 million rupees ($4.06 million), less than this year's daily average of 893.4 million rupees.

"The market is up on significant buying interest in John Keells. There was some buying interest in some finance companies too," said Dimantha Mathew, head of research, First Capital Holdings PLC.

"We expect profit-taking next week as the market needs some breather."

Foreign investors net bought shares worth 728,954 rupees, extending the year-to-date net foreign inflows to 18.02 billion rupees.

Shares in Nanda Investment Plc rose 24.89 percent to hit a record closing high, while conglomerate John Keells Holdings Plc climbed 1.51 percent and Browns Investment Plc was up 15.79 percent. 

($1 = 152.3000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Biju Dwarakanath)

CCS to invest Rs6.3bn in new ice cream factory, bottling facility

(LBO) – Ceylon Cold Stores said it is enhancing capacity with investments of 3.8 billion rupees in a new ice cream factory and 2.5 billion rupees in a new bottling facility for beverages.

Chairman of CCS, Susantha Ratnayake, delivering a note in the 2016/17 annual report, said the company will continue to pro-actively cater to changing consumer needs and lifestyles, creating value for customers.

Ratnayake said their fully owned subsidiary Jaykay Marketing Services Limited will also continue to rapidly expand its outlet footprint whilst constructing a new distribution centre at an estimated investment of 3.2 billion rupees.

“The new distribution centre will consolidate both dry and fresh produce, enabling the business to further improve its offering to our customers, achieve significant scale benefits as well as deliver operational excellence,” he said.

Ratnayake said the construction of the integrated resort “Cinnamon Life” by their associate company Waterfront Properties Private Ltd is progressing with pre-sales of both the residential and commercial space continuing to be encouraging.

In the twelve months to March, net profits at Ceylon Cold Stores rose 24 percent to 3.5 billion rupees reporting 37.38 rupees per share as basic earnings.

However, profits fell 15 percent to 824 million rupees in the March 2017 quarter from a year earlier, interim accounts showed.

“Despite the moderation in the growth rate of consumer discretionary spending in the last quarter we remain confident,” Ratnayake said.

“Evolving product range and the efficacy of our distributor network which ensures availability of our soft drinks and ice creams will continue to drive top line growth, supported by the contribution from the rapid growth in our conforming store model.”

Sri Lankan shares slip from over 1-yr high on profit-taking

Reuters: Sri Lankan shares ended marginally down on Thursday, slipping from their highest level in more than a year hit in the previous session, as investors booked profits in blue chips including John Keells Holdings Plc and Dialog Axiata Plc.

The Colombo stock index ended 0.30 percent weaker at 6,697.90, slipping from its highest close since Jan. 8, 2016 hit on Wednesday. The benchmark index has risen nearly 11 percent through Wednesday since March 31.

Turnover stood at 629.2 million rupees ($4.13 million), less than this year's daily average of 896.5 million rupees.

"We have seen a sizable selling pressure on blue chips today after some time," said Dimantha Mathew, head of research, First Capital Holdings PLC.

"The market is taking a breather after the index passed 6,700 levels and we feel profit-taking will continue for couple of days."

Foreign investors net bought shares worth 28.9 million rupees, extending the year-to-date net foreign inflows to 18.02 billion rupees.

Shares in John Keells Holdings Plc fell 0.60 percent while Carson Cumberbatch Plc fell 4.23 percent and Dialog Axiata Plc ended 0.83 percent weaker. 

($1 = 152.5000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez)

AIA SL reports revenue growth in 1Q

AIA Insurance Lanka PLC consolidated revenue of the life insurance business increased 24% to Rs 3,968 million compared to the same period in the previous year, driven by the increase in conventional life business Gross Written Premium (GWP) as well as growth in investment and other income.

The GWP of its life insurance business grew by 11% to Rs 2,631 million. The growth was supported by a further improvement in premium persistency. Conventional Life Business GWP has shown a growth of 15% compared to the same period in the previous year, to reach Rs 2,426 million.

Investment income increased 15%to Rs 1,273 million due to an increase in interest rates and attractive yield lock-ins.

Pankaj Banerjee Chief Executive Officer of AIA Sri Lanka said, “AIA Sri Lanka had a good start in 2017 by achieving a solid growth in GWP in the first quarter. We continued to stay focused on meeting customer needs through improving our product propositions, as well as expanding distribution reach and productivity of both our Agency and Bancassurance channels, providing a strong platform for growth.”

William Lisle, Chairman of AIA Sri Lanka, said, “I am pleased with the Company’s progress in our journey towards becoming the pre-eminent life insurer in the country throughthe execution of our strategies in expanding and strengthening our distribution and bancassurance channels.”

www.dailynews.lk

Dipped Products posts Rs. 24 b turnover and Rs. 1 b pre-tax profit

The Dipped Products Group has posted Rs. 24 billion turnover during the financial 2016-17 year, an 11 % increase from a year ago.

Group Profit Before Tax (PBT) for the year was Rs. 1.06 billion, a 53 % increase from the Rs. 691 million recorded for the previous year.

The Hand Protection segment contributed Rs. 14 billion to revenue, 12 % higher than the previous year. Contribution to PBT from the segment was at Rs. 785 million, a 32 % increase from a year ago. The Hand Protection sector profit was impacted by the higher latex prices that prevailed in the fourth quarter.

The Plantation segment reported Rs. 10 billion in revenue, a 7 % increase from the previous year and a PBT of Rs. 272 million compared to Rs. 152 million posted for the previous year. Plantation segment performance was affected by lower crop, mainly arising from adverse weather conditions and restrictions on weedicides.

Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world and accounts for a 5 % share of the global market. The company’s products now reach 68 countries.

The Board of Directors of Dipped Products Plc comprises Chairman Mohan Pandithage, Managing Director Dr. K. I. M. Ranasoma, F. Mohideen, S. C. Ganegoda, Dhammika Perera, M. Bottino, S. Rajapakse, N.A.R.R.S. Nanayakkara, S.P. Peiris, K.D.G. Gunaratne, H.S.R. Kariyawasan and S.M. Shaikh.

www.ft.lk

Haycarb records Rs. 13.5 b turnover; Rs. 1.19 b pre-tax profit in FY17

Sri Lankan multinational Haycarb Plc reported revenue of Rs. 13.5 billion, profit before tax of Rs. 1.19 billion and profit after tax of Rs. 939 million for the financial year 2016/17. The earnings per share of equity holders of the company increased to Rs. 27.07 for the year.

The Chairman of Haycarb Plc and its parent company Hayleys Plc Mohan Pandithage said that the company posted a profit before tax of over Rs. 1 billion for the fifth consecutive year, signalling the success of diversification and the resulting stability of the businesses driven by its long-term strategies.

Haycarb Plc Managing Director Rajitha Kariyawasan explained that the company was able to show both top and bottom line growth amidst key challenges in the supply chain for raw materials and volatility in some of its key global markets.

He added that successful development and commercialisation of a number of value-added high margin products, expansion of its strategic customer base and growth shown in key geographic markets, together with the significant growth shown in the environmental engineering segment of the business (Puritas), helped to retain the overall performance of the group. He also said that cross functional teams delivered significant improvements in efficiencies and cost savings that added to the bottom line through lean projects that increased yields of specific equipment and product lines and reduced re-work.

The biggest challenge faced by the group in the 2016/17 fiscal year was the significant shortages in charcoal supplies and resultant high prices in its Indonesian operations as a result of significant coconut crop reduction which impacted the results negatively. This was compounded by the oversupply of activated carbon from low-cost manufacturers from India and the Philippines resulting in the company not being able to pass on the cost increases to the end customer.

Kariyawasan noted that a significant portion of raw material sourced in Sri Lanka and Thailand was procured through environmentally friendly charcoaling initiatives that have been developed and promoted amongst suppliers by providing technology and financial assistance. The company continued to promote ‘Haritha Angara’, the environment friendly charcoaling pits in Sri Lanka, as a strategic initiative, while Carbokarn supported the operation of the vertical charcoaling kiln facility.

The performance of Sri Lankan entities significantly improved due to higher production throughput, increase in the value added portfolio and stability in raw material prices achieved through its ‘Haritha Angara’ program. He added that a notable performance was reported by the Thailand operations, which included satisfactory growth in the regeneration business.

Kariyawasan said the environmental engineering arm Puritas Ltd. has shown creditable growth in its performance by expanding its share in waste water and water purification solutions in Sri Lanka and in the region. The significant growth shown by this segment in the last couple of years and its potential to further diversify and grow will strengthen the overall group he added.

“Haycarb plays a leading role in the flagship CSR initiative of our parent company Hayleys Plc. ‘Puritas Sath Diyawara’ leverages on the technical knowhow of the environmental engineering business to provide purified drinking water to persons affected by the chronic kidney disease (CKD) in the Central and North Central provinces of Sri Lanka. We are pleased to note that four more projects were commissioned during the year. The initiative now provides 130,000 litres of purified drinking water per day to nearly 25,500 persons spread across 16 villages,” he said.

Kariyawasan stated that the company remained confident of its position of strength and stability in the activated carbon industry, regeneration services and the environmental engineering segment to continue the growth platform in the background of continued emphasis placed on environmental sustainability, standards and regulations globally.

Haycarb is the pioneer manufacturer of coconut shell activated carbon in any coconut producing country with manufacturing facilities in Sri Lanka, Thailand and Indonesia supported by marketing offices in the US, UK and Australia. The company contributes net foreign exchange revenues with its value adding processes and is a leading and technologically superior manufacturer in its chosen segment.

The Board of Directors of Haycarb Plc comprises Chairman Mohan Pandithage, Managing Director Rajitha Kariyawasan, Dhammika Perera, Arjun Senaratna, Sarath Ganegoda, Jeevani Abeyratne, Dr. Sarath Abayawardana, Sujeewa Rajapakse, M.S.P. Udaya Kumara, Brahman Balaratnarajah, Sharmila Ragunathan, Ali Caderbhoy, James Naylor and M.H. Jamaldeen.

www.ft.lk

Sri Lanka's Hemas expands Bangladesh presence

ECONOMYNEXT - Sri Lanka's Hemas Holdings says it is expanding its marketing activities in Bangladesh and has launched feminine hygiene products.

"Investments were made in increased marketing activities in Bangladesh in order to extend the reach attained through our own distribution channels and to counter competition," Chief Executive Steven Enderby told shareholders.

"Further, we entered the feminine hygiene category during January in Bangladesh."

Hemas said last year that over 12 percent of its consumer goods sales came from Bangladesh and it Kumarika brand had reached the number two slot in valued added hair oil segment in the country.

Hemas is one of the few Sri Lankan firms that has tapped markets in South Asia.

Sri Lanka's Teejay Lanka net down 40-pct on cotton spike; GSP+ to help growth

ECONOMYNEXT - Sri Lanka-based Teejay Lanka Plc, an export fabric maker reported profits of 493 million rupees for the March 2017 quarter, down 40 percent from a year earlier on spiking cotton prices, but said restored free trade access to Europe will help future growth.

The firm reported earnings of 71 cents per share. For the year to March, it reported earnings of 2.80 rupees on total profits of 1.95 billion rupees, which fell 10 percent.

Revenues grew 6 percent to 5.79 billion rupees in March quarter and cost of sales grew at a faster 17 percent to 5.1 billion rupees, shrinking gross profits 40 percent to 656 million rupees.

Cotton yarn prices soared 20 percent over the past 12 months the firm said, with margins squeezed 39 percent in the last quarter. The firm is expecting prices to stabilize in the short term.

Chief Executive Sriyan de Silva Wijeyeratne said the firm is investing 15 million dollars in capacity expansion in India which will come on stream during the second quarter.

Future growth was also expected from GSP+ free trade benefits to the EU.

"Cotton price volatility is expected to ease out by around the end of Q2, and at this point we welcome the latest news currently coming in on the GSP," de Silva Wijeyeratne

"The company is cautiously optimistic on its expansions in India and its new ventures into Synthetics, which has so far met with good customer response."

Sri Lanka's Hemas Holdings net up 54-pct in March

ECONOMYNEXT - Profits at Sri Lanka's Hemas Holdings Plc, which has interests in consumer goods, healthcare, logistics and leisure rose 45 percent in the March 2017 quarter from a year earlier, helped by gain in its unspecified 'other' sector.

The group reported earnings of 1.89 rupees per quarter. In the year to March it reported earnings of 6.19 rupees on total profits of 3.4 billion rupees which grew 31 percent.

Revenues grew 18.4 percent to 11.4 billion rupees and cost of sales grew 15.7 percent to 6.7 billion rupees, with gross profits up 22 percent to 4.6 billion rupees.

"Overall, the Group has grown strongly over last year; however, a multitude of factors such as increasing VAT rates, the introduction of VAT at hospitals, new pharmaceutical pricing regulation, and increasing inflation have impacted profitability during the second half of the year," Chief Executive Steven Enderby told shareholders.

"Despite this, we have seen limited signs of recovery during Q4."

After tax profits in the fast moving consumer goods segment fell to 301 million rupees from 385 million rupees a year earlier.

Healthcare profits rose to 437 million from 344 million. Enderby said pharma margins were down after price controls but volumes were up. Hospitals were also making 'standalone profits' by the fourth quarter.

Leisure fell to 157 million from 234 million amid the closure of airports and a loss at Anantara Peace Haven resorts in Tangalle in its first full year of operations.

Logistics doubled revenues after getting the agency for Evergreen.

"The acquisition of this agency gives us a stronger position in the logistics and maritime space," Enderby said.

"During the year, the logistics arm of Hemas showed improved results, mainly driven by the 3PL operations.

"Hemas is further strengthening its presence in the logistics space by constructing a new state-of-the-art Logistics Park to consolidate warehousing, improve capacity and provide a range of new services to clients."

The group will invest 5.2 million dollars through a joint venture with GAC.

Profits were boosted by a 196 million profit in the unspecified 'other' sector which showed a loss of 130 million rupees last year.

Sri Lanka Treasury Bill yields edge down

ECONOMYNEXT – Yields on Sri Lankan Treasury Bills edged down at Wednesday’s auction with the 03-month bill yield at 9.62 percent, compared with 9.73 percent when last sold in April, data from the Central Bank showed:

The yield on the 06-month bill edged down to 10.42 percent from 10.43 percent last week while that on the 01-year bill remained steady at 10.73 percent, the public debt department of the central bank said.

It said it got bids worth Rs80.9 billion and accepted bids worth Rs24.7 billion.

Sri Lanka's Colombo Dockyard returns to profit

ECONOMYNEXT – Sri Lanka’s Colombo Dockyard returned to profit in the March 2017 quarter, with earnings of 141 million rupees compared to a loss of 77 million rupees a year ago.

Sales of the firm, a unit of Japan’s Onomichi Dockyard, rose 51 percent to 3 billion rupees from a year ago, according to interim results filed with the stock exchange. Colombo Dockyard reported earnings per share of 1.97 rupees in the March quarter, compared with a loss of 1.07 rupees per share the year before. Net finance income rose 38 percent to 36 million rupees, while administrative and distribution expenses were maintained at previous levels, the accounts showed.

Profits came from ship repair as ship building earnings fell, as did profits from heavy engineering.

The yard had been hit hard by the prolonged slump in shipping, with clients cancelling new building orders or negotiating pries down.

It had managed to reduce loses to 432 million rupees in 2016 from 708 million rupees the year before.

Sri Lanka Kelani Valley Plantations March net doubles to Rs277mn

ECONOMYNEXT – Sri Lanka’s Kelani Valley Plantations said net profit for the March 2017 quarter more than doubled to 277 million rupees from a year ago as tea prices and production recovered.

Group sales of the firm, part of Hayleys conglomerate, rose 44 percent to 2.1 billion rupees from the year before, according to interim accounts filed with the stock exchange. Earnings per share for the quarter were 8.15 rupees.

But, the firm reported a loss per share of 55 cents for the financial year ending March 2017, down from a loss of 82 cents the previous year, with sales up 13 percent to 6.9 billion rupees.

The accounts showed higher sales and gross profits in tea and rubber at the firm from a prolonged drought and the commodities slump.

Sri Lanka's Ceylon Cold Stores net down 15-pct

ECONOMYNEXT - Sri Lanka's Ceylon Cold Stores Plc, a consumer goods and retail group, said profits fell 15 percent from a year earlier to 823 million rupees in the March 2017 quarter amid a value-added tax hike and higher inflation from currency depreciation.

The firm reported earnings of 8.67 rupees per share for the quarter in interim accounts filed with the Colombo Stock Exchange. In the year to March, Ceylon Cold Stores reported earnings of 37.38 rupees on total profits of 3.5 billion rupees, which grew 24 percent.

"This was achieved despite seeing a rise in input costs as a result of the depreciation of the Sri Lankan Rupee against the US Dollar and the VAT rate increase during the year," Chairman Susantha Ratnayake told shareholders in the annual report.

CCS produces Elephant House-branded soft drinks and ice cream, and operates the Keells supermarkets chain.

In the March quarter, revenues rose 15 percent to 11.0 billion rupees, but cost of sales rose at a faster 21 percent to 9.4 billion rupees, shrinking gross profits 10 percent to 1.6 billion rupees.

Part of the quarterly profit came from a 92 million rupee fair value gain, up from 16.9 million rupees a year earlier.

Sri Lankan shares extend gains on foreign inflows

Reuters: Sri Lankan shares ended at their highest level in over a year as foreign investors continued to buy blue chips after an annual trade concession worth $300 million from the European Union (EU) added fuel to a rally that started towards the end of March.

Index heavyweight John Keells Holdings Plc ended almost one percent higher on foreign buying. The benchmark index has risen nearly 11 percent since March 31.

The EU on Tuesday said Sri Lanka has regained a lucrative trade concession, mainly for its top exports garments.

The Colombo stock index ended 0.39 percent firmer at 6,718.34, its highest close since Jan. 8, 2016.

Turnover stood at 1.75 billion rupees ($11.48 million), well above this year's daily average of 899.5 million rupees.

"Foreign interest is continuing in blue chips," said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.

Foreign investors net bought shares worth 902.6 million rupees, extending the year-to-date net foreign inflows to 18 billion rupees.

Reduction of 11-38 basis points in T-bill yields in the last four weeks, stable currency on expectation of inflows from foreign borrowing, and an IMF statement on the disbursement of the third tranche of a $1.5 billion loan, have helped boost sentiment, analysts said.,,

Shares in Ceylon Cold Stores Plc rose 4.4 percent while Ceylon Tobacco Company Plc rose 1.4 percent and John Keells Holdings Plc gained 0.9 percent. 

($1 = 152.4000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

Sri Lanka to receive GSP+ concessions from May 19

Rigorous monitoring of Sri Lanka’s conduct on 27 international conventions

By Sanath Nanayakkare

The European Union will remove a significant part of the remaining import duties on Sri Lankan products entering the EU market with effect from May 19 in exchange for the country's commitment to ratify and effectively implement some 27 international conventions it has signed up to.

The Delegation of the European Union to Sri Lanka and the Maldives told the media in Colombo yesterday that as is the case for all countries benefiting from GSP Plus, the removal of customs duties for Sri Lanka would be accompanied by rigorous monitoring on an annual basis of Sri Lanka's commitment to implement 27 international conventions on human rights, labour conditions, protection of the environment and good governance.

"Granting access to the GSP+ scheme does not mean that the situation of the beneficiary country with respect to the 27 international conventions is fully satisfactory. Instead, it offers the incentive of increased trade access in return for further progress towards the full implementation of those conventions, and provides a platform for engagement with beneficiaries on all problematic areas. If we looked for perfect compliance with these international conventions, no country on earth would receive the GSP+ concessions, the EU said.

The granting of EU concessions involves the full removal of duties on 66% of tariff lines, covering a wide array of products, including textiles and fisheries. The removal of duties will come into force a day after publication in the official Journal of the European Union, of the restoration of GSP Plus, which is expected to be on Friday, this week.

Trade Commissioner Cecilia Malmström said, "Granting GSP+ to Sri Lanka aims to provide the opportunity to develop further economically, including creating more and better jobs for all Sri Lankans, on a sound foundation that advances human and labour rights, and in a manner that is environmentally sustainable. It is also a vote of confidence from the European Union that the Sri Lankan government will maintain the progress it has made in implementing the international conventions. At the same time, no one is pretending that the situation is perfect. The process of replacing the Prevention of Terrorism Act still needs to be completed. There are still too many incidents of torture, there are still children being forced into marriage, there are still laws that discriminate against sections of Sri Lankan society. We want to see an end to these practices.

The EU will work closely with the government and Non-Governmental Organisations to rigorously monitor progress."

"If Sri Lanka continues to make necessary progress, then the country has the chance to benefit from the scheme until it achieves Upper Middle Income country status for three consecutive years. On current trends, that should mean that Sri Lanka will benefit from GSP+ until at least 2021. The EU is Sri Lanka's biggest export market, accounting for nearly one-third of Sri Lanka's global exports. In 2016, total bilateral trade amounted to almost €4 billion, and EU imports from Sri Lanka amounted to €2.6 billion. The removal of import duties will provide a total of immediate benefits worth in excess of EUR 300 million a year. The value of the scheme could be worth many times more, particularly if Sri Lanka uses the opportunity to diversify its economy, the EU Delegation in Colombo said.

www.island.lk

Sri Lankan shares end at 1-yr high on foreign buying, trade concession

Reuters: Sri Lankan shares hit a one-year closing high on Tuesday with foreign investors buying blue chips such as John Keells Holdings Plc and as the island nation regained a trade concession from the European Union (EU).

The EU on Tuesday said Sri Lanka has regained a lucrative trade concession, mainly for its top exports garments.

The Colombo stock index ended 0.49 percent firmer at 6,692.33, its highest close since May 16, 2016. The index added 0.5 percent last week, its seventh straight weekly gain.

Turnover stood at 1.17 billion rupees ($7.67 million), more than this year's daily average of 889.8 million Sri Lankan rupees ($5.83 million).

"Today the foreigners got active and with that we have seen retail investor's also returning," said Dimantha Mathew, head of research, First Capital Holdings PLC.

Foreign investors net bought shares worth 281.05 million rupees, extending the year-to-date net foreign inflows to 17.08 billion rupees.

Reduction of 36-38 basis points in T-bill yields in the last three weeks, stable currency on expectation of inflows from foreign borrowing, and an IMF statement on the disbursement of the third tranche of a $1.5 billion loan, have helped boost sentiment, analysts said.,,

Shares in Dialog Axiata Plc rose 4.31 percent while Sri Lanka Telecom Plc rose 2.35 percent and John Keells Holdings Plc gained 0.85 percent. 

($1 = 152.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

Depressed bourse pushes CSE to propose relaxed rules on public float

By Chandeepa Wettasinghe 

New regulations proposing to grant exemptions for the current minimum public shareholding rules have been proposed due to a stagnant bourse, the Colombo Stock Exchange (CSE) officials said. “When we did the (earlier) regulations, why it was done by the Securities and Exchange Commission (SEC) was because, to get into indices, we needed floats. We needed around four John Keells type of companies. Now the situation has changed. We can’t force people to give up their holdings in a low market,” former CSE Chairman Vajira Kulatilaka said. 

Public floats promote liquidity and lower risks and abuses in a market, which were also among the reasons the SEC cited for bringing in tighter public float regulations. Speaking to Mirror Business just before the end of his term in office, Kulatilaka said the earlier minimum public float regulations were conceived during a bull market. 

“We have to be very careful when forcing somebody. When it’s a growing market, it’s a different story—now the market is down, valuations are too low for them to get out, so we have to respect those decisions,” he said. 

Kulatilaka added that companies are not even willing to offer new shares to raise funds at lower rates. “I for one think if the country was growing at 7 percent and if the companies were growing at 30 percent, they would come here for money. But the problem is that growth has slowed and companies are not growing as much as they would like,” he added. 

Under the new proposals to amend the listing regulations published by the CSE last month, is a proposal for the CSE to be given the power to waive the application of any of the minimum public shareholding rules to any listed entity or any class or category of listed entities under ‘exceptional circumstances’ in consultation with the SEC. 

CSE Chief Operation Officer Renuke Wijayawardhane said over 60 companies are currently not compliant with the public float regulations. 

The SEC relaxed the public float requirements last November, just one month before the end of the grace period for the regulations, which were introduced in 2014, and provided an extra six months for companies to comply with the latest relaxed regulations. 

At least two companies delisted, seven announced their intentions to delist and a score of others downgraded to the secondary board of the CSE in the lead up to the relaxation of the requirements. 

The Carson group, which announced its intentions to delist four overseas oil palm plantation companies worth nearly 2 percent of the CSE’s market capitalization, said it was in discussions with the regulators on actions to take in the future regarding the public float. 

Kulatilaka said the delisting trend raised some red flags for the regulators and facilitators. “There was a delisting trend that was coming, that also we can’t afford to have. We need companies to be listed here, so it was a big dilemma,” he said.

www.dailymirror.lk

Mass resignations from Lanka Hospitals director board

A significant change appears to have taken place in the boardroom of the state-controlled Lanka Hospitals Corporation PLC (LHCL). 

LHCL yesterday disclosed to the Colombo Stock Exchange that all of its local independent non-executive directors, except for two, had resigned with effect from May 9, 2017. 

Public Enterprise Development Ministry Coordinating Secretary Thanuja Weeratne, along with Thiniyawala Palitha Thera, were the only two local directors to not to resign during the Vesak week. A source close to the matter said that the Public Enterprise Development Ministry had sent letters asking for the resignation of the directors. 

The government controls LHCL through a majority share ownership via Sri Lanka Insurance Corporation (SLIC). 

Changes had also taken place at the top level of SLIC as well, with new Co-Managing Director Aruna Siriwardena replacing Keith Damien Bernard. 

The source said that Siriwardena has replaced his predecessor as a Director at LHCL as well, while four of the Directors who stepped down—Asendra Siriwardena, Dr. Anil Abeywickrama, Umashanthiee Rajamantri and Professor Dilani Lokuhetty—have been reappointed to the LHCL board. 

It is not yet clear whether Directors Nandana Munasinghe and Dr. Rohan Wijesundera, who also resigned as per the ministry directive, have been reappointed. The latest changes have not yet been disclosed to the Colombo Stock Exchange.

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