Sri Lanka's HNB Assurance separates general insurance

Mar 29, 2014 (LBO) - Sri Lanka's HNB Assurance Plc said it will set up a separate unit to take over its general insurance business under a regulatory decision to split all composite insurers.

The firm's shareholders had approved a resolution to transfer assets and liabilities of the general insurance business to HNB General Assurance Ltd, the firm said in a stock exchange filing.

HNB Assurance is a unit of listed Hatton National Bank.

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Best Western International to open a series of hotels in Sri Lanka

Mar 28, Colombo: Best Western International is embarking on a major expansion strategy in Sri Lanka to open a series of Best Western brand hotels across the country.

Best Western International and the Sri Lankan company Elyon Hotels have signed a development partnership to develop the iconic Best Western brand across the country, offering hospitality management expertise to existing and proposed hotels island-wide.

The first of the series of hotels, the 60-room Best Western Elyon Colombo Hotel will be opened this summer in Colombo.

The hotel will include an all-day dining restaurant, specialty restaurant, a bar, room service, fitness center and meeting space and complimentary Wi-Fi to all guests.

This opening will mark the start of a major nationwide expansion for Best Western in Sri Lanka, the hotel chain said.

Under the new agreement, Elyon Hotels will identify opportunities for new midscale and upscale hotels across the country including locations in the capital Colombo, or other key leisure and business destinations such as Kandy, Mirissa and Tangalle.

The company targets to have four more hotels with approximately 400 rooms for the next three years, and 700 rooms within five years.

Best Western's Vice President of International Operations for Asia & the Middle East, Glenn de Souza, said he was excited by the opportunities in Sri Lanka. "The recent economic boom following the end of three decades of war has seen Sri Lanka develop rapidly," Mr. de Souza said.

"Driven by strong interest from India, China, the Middle East and Europe, international visitor arrivals to Sri Lanka have been growing exponentially in recent years, reaching one million for the first time in 2012. This is expected to reach 1.5 million visitors in 2014, and as an international hotelier, Best Western has a duty to provide to this soaring number of travelers with quality accommodation options," he said.

Commenting on the landmark agreement, Presantha Jayamaha, Managing Director of Elyon Hotels said, tourism infrastructure development in Sri Lanka is seeing fast-paced growth and they are excited to be a part of the emerging growth opportunities."We, at Elyon Hotels, strongly believe that partnering an exceptional hospitality brand such as Best Western will enable us to provide exceptional tailored service standards to the discerning travelers to this paradise island," Jayamaha said.
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Sri Lanka stocks down as foreigners exit after UN resolution

(Reuters) - Foreign investors pulled out from the Sri Lankan bourse in heavy volume on Friday, a day after a U.N. resolution approved an international probe into the island nation's war crimes.

The bourse saw a net foreign outflow of 2.77 billion rupees ($21.19 million) worth of shares, the highest single-day outflow since Feb. 6, extending the net foreign outflow so far this year to 6.9 billion rupees.

"Investors are a bit more worried about the economic impact and growth due to the resolution," a stockbroker said on condition of anonymity.

The United Nations on Thursday launched an inquiry into war crimes allegedly committed by both Sri Lankan state forces and Tamil rebels during the conflict that ended in 2009, saying the government had failed to investigate properly.

Sri Lankan stocks fell on Friday from a more-than-five-week high hit in the previous session, led by large-cap shares. The main stock index ended 0.34 percent, or 20.45 points, weaker at 5,972.17.

Analysts said the outcome of the resolution was expected, but investors sentiment has been dented over concerns it could hurt the country's economy. Several potential buyers of risky assets are awaiting a clear direction.

Two stockbrokers said a foreign fund sold 12.5 million shares of conglomerate John Keells Holding PLC on Friday. The stock still ended up 0.99 percent at 225 rupees.

Top contributors to the day's fall were Ceylon Tobacco Company PLC, which fell 2.92 percent, and Ceylinco Insurance PLC , which fell 5.14 percent.

Turnover was 3.29 billion rupees, the highest since Feb. 6 and more than thrice of this year's daily average volume. 

($1 = 130.7000 Sri Lanka rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

Sri Lanka stocks close down 0.3-pct

Mar 28, 2014 (LBO) - Sri Lanka's stocks close 0.34 percent lower Friday with tobacco and insurance stocks losing ground amid strong foreign selling, brokers said.

The Colombo benchmark All Share Price Index closed 20.45 points lower at 5,972.17 down 0.34 percent. The S&P SL20 closed 4.52 points higher at 3,278.67, up 0.14 percent.

Turnover was 3.29 billion rupees, up from 1.62 billion rupees a day earlier with 55 stocks close positive against 108 negative.

John Keells Holdings closed 2.20 rupees higher at 225.00 rupees with market transactions of 2.83 billion rupees contributing to 86 percent of the daily turnover.

JKH’s W0022 warrants closed 40 cents higher at 66.30 rupees and its W0023 warrants closed 1.50 rupees higher at 71.20 rupees.

The aggregate value of all off market deals accounted for 6 percent of the turnover.

Foreign investors bought 87.95 million rupees worth shares while selling 2.86 billion rupees worth shares.

Piramal Glass Ceylon closed 10 cents lower at 3.40 rupees and George Steuart Finance closed 16.30 rupees lower at 49.80 rupees, attracting most number of trades during the day.

Ceylon Tobacco Company closed 31.70 rupees lower at 1,053.30 rupees and Ceylinco Insurance closed 71.60 rupees lower at 1,321.00 rupees, contributing most to the index drop.

Dialog Axiata closed 10 cents lower at 9.00 rupees and Sri Lanka Telecom also closed 10 cents lower at 46.80 rupees.

Carson Cumberbatch closed 5.00 rupees higher at 365.00 rupees and Asiri Hospital Holdings closed 70 cents higher at 21.70 rupees.

Nestle Lanka closed 16.70 rupees higher at 2,010.00 rupees and Commercial Leasing and Finance closed 10 cents lower at 3.90 rupees.

DFCC closed 1.80 rupees lower at 143.00 rupees and Commercial Bank closed 1.90 rupees higher at 122.90 rupees.

AIA Insurance Lanka closed flat at 270.30 rupees with the company on Thursday passing an extraordinary resolution to separate its life and general insurance business in accordance with the segregation requirements of the insurance regulator.

Citrus Waskaduwa to open in early April

By Mario Andree

Ceylon FT: Citrus Leisure yesterday announced that its US$ 23.7 million hotel project in Waskaduwa, Kalutara was ready for operations and would be opened on 6 April this year, after some delay.

Several hotel projects were initiated as the number of tourist arrivals showed an increase. Citrus Leisure entered into an agreement with the Board of Investment on 5 April 2012, to set up and operate a 150 roomed beach resort in Kalutara with an investment of US$ 23.7 million.

According to the agreement the 'Citrus Waskaduwa' known as 'Waskaduwa Beach Resort' was expected to be launched last year.

However, despite the delay Citrus Leisure yesterday in a stock exchange filing said that the 150 roomed beach resort was ready and would open on 6 April this year.

The four-star hotel will include one presidential suite, nine deluxe rooms and 140 superior rooms, in addition to banquet facilities, spa and water sports activates.

Citrus Leisure currently owns four properties in Sri Lanka including Citrus Waskaduwa known as Waskaduwa Beach Resort, Citrus Hikkaduwa, Citrus Bolgoda and Citrus Kalpitiya which is under construction.

With the Sri Lankan Government expecting more than 2.5 million tourist arrivals by 2016, the country requires more than 20,000 additional rooms and 150,000 staff to cater to them.

Sri Lanka received 1.27 million arrivals last year aftera data revision, and for the first time in the country's history arrivals surpassed one million in 2012.
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BoC profits fall 16.8% in 2013

Ceylon FT: State-owned banking giant Bank of Ceylon (BoC) reported a group net profit of Rs 12.15 billion for the year ended 31 December 2013, down 16.84% from a year ago, audited financial results filed with stock exchange showed.

Net interest income grew 5.58% to Rs 39.34 billion and net fee and commission income fell 12.33% to Rs 5.93 billion.

Impairment charges and reversals for loans and other losses: Individual impairment fell 145.40% to Rs 665.35 million and collective impairment rose 191.17% to Rs 7.99 billion.

Operating expenses rose 14.51% to Rs 27.24 billion.

At bank level, net profits fell 16.16% to Rs 12.08 billion with net interest income growing 5.16% to Rs 37.14 billion.

The group's assets rose 13.56% to Rs 1.22 trillion as at end December 2013.

Loans and advances grew 5.16% to Rs 746.57 million and deposits grew 21.51% to Rs 850.76 million
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Rs 5B raised in longer termed T-bond issue-Stocks up, rupee steady on moral suasion

Ceylon FT: The Central Bank raised Rs 5 billion for the government through a Treasury bond issue yesterday (27).Total bids amounted to Rs 15.6 billion.

Eight-year bonds worth Rs 1 billion with a 11.20% coupon rate was sold at 10% and a near 20-year bond with a 13.25% coupon rate raised Rs 2 billion at 11.32%.

Rs 2 billion of near 30-year bonds with a coupon rate of 13.50% were sold for 11.75%, the Public Debt Department of the Central Bank said.

The outcome of the auction saw yields dip in the secondary market with a more liquid five year bond yield falling to 8.76/90%, down from 8.82/97% from a day ago.

The rupee closed unchanged from the previous day at 130.70/75 against the US dollar on moral suasion by the Central Bank. "There is some importer demand but no one wants to trade beyond 130.70 because the Central Bank says so," one dealer said not wanting to be named.

Stocks closed 0.70% on Thursday to a five-week high.

The All Share Price Index closed 41.65 points higherat 5,992.62, up 0.70% and the S&P SL20 index of the largest stocks closed 13.10 points higher at 3,274.15, up 0.40%.

Turnover amounted to Rs 1,618.32 million, up from Rs 762.15 million a day ago, with shares of 106 firms gaining and 49 losing.

Foreigners bought shares worth Rs 114.11 million, down from Rs 384.82 million a day ago, and sold shares worth Rs 74.07 million, down from Rs 425.8 million a day ago.

"Foreign investors were net buyers with a net inflow of Rs 40 million. Foreign participation was 6%. Net Foreign inflows were seen in John Keells Holdings (Rs 37.1 million), National Development Bank (Rs 6.6 million) and Bairaha Farms (Rs 4.1 million), whilst net outflow was mainly seen in The Finance non-voting (Rs 4.9 million)," Lanka Securities Research said.

JKH closed Rs 4.80 higher at Rs 222.80 and Sri Lanka Telecom closed Rs 2.30 higher at Rs 46.90.

Good Hope closed Rs 138.80 higher at Rs 1,450.30 and Dialog closed 10 cents higher at Rs 9.10.

NDB Bank closed 90 cents higher at Rs 181.00 with four crossings taking place.

Seylan Bank closed Rs 2.00 higher at Rs 61.00 with one crossing taking place.

Distilleries closed Rs 1.00 higher at Rs 204.00.

The Finance Company non-voting shares closed 40 cents higher at Rs 6.10.
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