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.

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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.
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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.
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