Sri Lankan shares edge up on large caps; turnover hits over 2-wk low

Reuters: Sri Lankan shares ended slightly higher on Wednesday in dull trade, as investors stayed on the sidelines awaiting clarifications on new taxes in the national budget and key legislations unveiled earlier this month, analysts said.

The Colombo stock index ended 0.09 percent firmer at 6,464.44. It lost 1 percent last week.

Large caps led the gains, with Ceylon Beverage Holdings Plc jumping 17.8 percent and Lion Brewery Ceylon Plc up 5.6 percent.

“Investors are waiting for clarifications on the budget, Inland Revenue Act, and Exchange Control Act,” said Atchuthan Srirangan, senior research analyst at First Capital Holdings PLC.

“There was interest in blue chips. The index has yet to find a direction after the budget.”

Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in the 2018 budget presented on Nov. 9 to boost revenues, as the budget deficit for the current year slipped to 5.2 percent of the gross domestic product.

The final budget vote is scheduled for Dec. 9 and the market expects some amendments that could help give it some direction.

Analysts said market participants have sought more clarity on these taxes and that there could be some amendments to these proposals before the final vote.

The government also released gazette notifications on the Inland Revenue Act and the Exchange Control Act, with investors waiting for clarifications on the new legislations.

Foreign investors net bought equities worth 20.7 million rupees ($134,678) on Wednesday, extending the net foreign inflow to 19.7 billion rupees so far this year.

The day’s turnover, which hit a more-than two-week low, stood at 324.3 million rupees, around a third of this year’s average of around 952.5 million rupees.

($1 = 153.7000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Biju Dwarakanatha)

Claims, benefits paid exceed Rs.11.8 bn Ceylinco Insurance posts Rs. 3.4 bn PAT

“Indicating another remarkable year, Ceylinco Insurance PLC, the holding company, Ceylinco General Insurance Ltd and Ceylinco Life Insurance Ltd, recorded a mammoth consolidated after tax profit of Rs.3.4 billion, resulting in a growth of 41 % for the period ended 30th September 2017 said Ajith Gunawardena, Managing Director / CEO said.

Profit before tax stood at an exceptional Rs. 4.2 billion with a 46 % growth. The Company completed 30 years in existence in 2017 and every year, we’ve grown from strength to strength, with achievements that none can match.”

“Success in life insurance reflects the trust and confidence of customers – our policyholders. Ceylinco Life has had an excellent year thus far, contributing Rs. 11.5 billion in premium income; Rs 2.5 billion in profit before tax and Rs 2 billion in net profit to the company’s consolidated results for the nine months ending 30th September 2017. Our Life Fund has grown by Rs 7.3 billion over this period to Rs 85.2 billion. These are truly noteworthy figures,” Ceylinco Life Insurance Ltd, R. Renganathan, Managing Director/Chief Executive Officer said.

Patrick Alwis, Managing Director of Ceylinco General Insurance Ltd, said: “Up to 30th September 2017, Ceylinco General Insurance recorded a premium income of Rs. 13.3 billion (Rs.13,278 million) with an impressive growth of 10.5 %. This is an increase of Rs.1.2 billion over the previous year for the same period, which I would say is an exceptional achievement.

This trend will no doubt help us to end the year on a resoundingly successful note.”

“Thus, the overall premium income of Ceylinco General and Ceylinco Life reached a staggering Rs.24.8 billion, indicating an increase of Rs.1,748 million or an overall growth of 7.6 % over the same period in the previous year.”

“Ceylinco General Insurance paid claims amounting to Rs. 6.6 billion during the 9-month period ended September 2017. During 2017, Ceylinco General Insurance infused great value into its products and services. For the second consecutive year, all flood victims were paid in record time. Over 3 billion worth of claims were paid in 14 days to over 3,000 flood victims.”
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