Sri Lanka tea exports fall sharply in August

ECONOMYNEXT – Sri Lanka’s tea export shipments and earnings fell in August 2015 from a year ago with value-added products again showing a significant fall, brokers said.

Forbes & Walker Tea Brokers said tea exports in August fell by 6.3 million kilos to 21.1 million kilos from the previous year.

"Total revenue too show a fairly substantial decline of 5.8 billion rupees year-on-year with August 2015 realizing only 13.2 billion rupees when compared to 18.8 billion rupees in August 2014."

John Keells Ltd. said total revenue from tea exports in the first eight months of 2015 (January – August) fell by a “substantial” 21.3 billion rupees to 119.9 billion rupees compared to the same period in 2014.

"The export quantities too show a decline of 6.3 million kilos totalling 201.5 million kilos," they said in a report.

The drop in the approximate average unit Free On Board value per kilo of 78.65 rupees, when compared to the same period last year too, has had a “significant negative impact” on export earnings, the brokers said.

Forbes & Walker said that in August 2015 tea bags have shown a "significant decline” in volume while bulk tea and packeted tea volumes too declined but to a lesser extent when compared to August 2014.

On a cumulative basis, up to August 2015 bulk tea exports have grown but packeted tea and tea bags have fallen.

Brokers said Russia has re-emerged as the largest importer of Ceylon for the period January – August 2015 displacing Turkey from the top spot.

Sri Lankan stocks little changed ahead of policy rate decision

Reuters: Sri Lankan shares ended little changed on Wednesday ahead of the central bank's policy rate decision on Friday.

The main stock index closed near its more than two-month closing low hit on Monday, down 0.05 percent at 7,114.83.

The central bank's monetary policy rate announcement is scheduled on Friday at 1230 GMT.

"There was no real investor interest in the market," said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd, adding the market moved sideways as there was no clear direction.

The weak rupee curbed investor risk appetite and rising market interest rates also hit sentiment, with t-bill yields at their highest level in more than five months at the last auction.

The rupee ended marginally higher due to inward remittances ahead of the Hajj, though importer demand for the greenback limited gains, dealers said. It has declined 4.4 percent since the central bank effectively floated the currency on Sept. 4.

Turnover was 747.6 million rupees ($5.31 million), compared with the daily average of 1.11 billion rupees. The turnover has been roughly half of this year's daily average since Aug. 31, stock exchange data showed.

Analysts said investors were waiting to see how the government would bridge the budget deficit and where the revenue would come from, in its November budget.

The IMF last week said the fiscal deficit is likely to range between 5.5 percent and 6 percent in 2015, much higher than an official target of 4.4 percent due to falling government revenues.

Foreign investors were net buyers of 155.7 million rupees worth of shares on Wednesday, but they have been net sellers of 2.8 billion rupees so far this year.

Shares of Nestle Lanka Plc fell 1.35 percent and John Keells Holdings Plc dropped 0.74 percent.

Both stock and currency markets will be closed on Thursday for the Hajj festival holiday. Normal trading will resume on Friday. 

($1 = 140.9000 Sri Lankan rupees) 

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

Sri Lanka JKH’s Cinnamon Life has 40 pct of residential tower prebooked: Official

(LBO) – Sri Lanka’s blue-chip John Keells Holdings said that its 850 million US dollar mixed development project “Cinnamon Life” has already started selling apartments in its integrated resort under the concept of live, work and play.

“We call it a city-within-a-city which will have office space, shopping, dining, entertainment, playing area, apartment and a 5-star hotel,” Ajit Gunewardene, deputy chairman of John Keells Holdings, said.

“They can live eat and work within this.”

“Locals and tourists need a destination to gather and enjoy themselves when they work, live or play and Cinnamon Life will be their playground.”

“The integrated resort concept will attract investors, high-end brands, leisure and business travellers and local populace who will be compelled to be part of its unique contemporary ethos.”

Cinnamon Life is a 4.5 million square feet integrated resort consisting a 800 room luxury hotel, large high end retail mall, luxury residencies, state of the art office space and convention, ballroom & banqueting space, which was previously branded as “Waterfront project.”

The project is expected to be completed by 2018.

“Our view was that Colombo would be the modern capital of South Asia, the next Singapore that would be created in Asia, and we wanted to be part of that,” Gunewardene said.

“And this this project will be the centre of gravity of this new growth sector of Colombo,”

“Also it will be a marketing tool for the country.”

He said the new project will generate 7,000 – 8,000 direct jobs and may also create up to 50,000 indirect employment opportunities.

“None of these jobs going to be in minimum wage,” Gunewardene said.

The project main building, shaped like a guard stone, is built with two residential towers which will have 450 apartments.

Suresh Rajendra, President of the John Keells Property Group, said that 40 percent of the first residential tower is already booked.

“John Keells will be replicating its successful guaranteed rental scheme which was operational at both its Emperor and Monarch projects. A similar scheme with a fixed guaranteed annual return for a limited number of apartments for a limited period will be available for Cinnamon Life.” Rajendra said.

“Another attractive feature is the state of the art, 24 story office space, half of which will be operated by the developers themselves and the remaining will be sold on an outright basis.”

Gunewardene said the project targets to capture the meetings, incentive travel, conventions and exhibitions market (MICE) in the region.

He said the project will have a facility to have conference for 4000 delegates at any given time.

“Our view was that Asia was going to be the growth engine for the next 30 to 40 years,” he said.

“We are placed right at the centre of this zone.”

Japan to increase FDIs after 10 years

Hiran H.Senewiratne (hsenewiratne@gmail.com)

Japan now intends increase foreign direct investments in Sri Lanka, Japanese Ambassador Kenichi Suganuma said.

Japanese foreign direct investments to the country have been stagnant for more than a decade. Japan is now impressed with the government's economic policies,the envoy said."Sri Lanka needs a clear, consistent and transparent economic policy to promote foreign direct investments into the country. Therefore, several top end high tech Japanese companies are now exploring possibilities to invest here,and they are quite positive to invest, "Suganuma told the Daily News Business.

He said that Sri Lanka has a very high potential for private sector business development with the change of government polices and could harness the geographical advantage due to the access Indian, Bangladesh and Pakistan markets.

Suganuma said the national government concept in Sri Lanka is an excellent move for the country to move forward as it could create a lot of confidence to prospective investors to invest here. "Therefore, they are also considering signing the Free Trade Agreement in the future," he said.

He said that the Japan is now keen on promote bilateral trade relationships and FTA with Sri Lanka to enhance trade and investment in both countries.

Suganuma said that the balance of trade is not in favour of Sri Lanka and for Sri Lanka exporters to penetrate the complex Japanese market, it demands high quality global standards.

He said that Sri Lanka exporters should focus and identify markets in Japan. "At present there is a high demand for virgin coconut oil and high quality tea to name a few, he said. He also said that JETRO Sri Lanka is now taking steps to encourage Sri Lanka exporters to penetrate into lucrative market. They take prospective exporters on study tours and other required knowledge for them to enter the market, he said.
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Pan Asia Bank debentures oversubscribed

Pan Asia Bank's listed debt offer for four billion rupees had been oversubscribed Wednesday and has closed on the same day yesterday. The bank offered 20 million debentures at 100 rupees each with an option to issue 20 million further. The basis of allotment will be notified to the CSE in due course.
www.dailynews.lk

Germany to help revive GSP+ for Sri Lanka: Visiting Foreign Minister

(LBO) – Germany would lead the European Union to revive the GSP+ relief for Sri Lanka, the German Foreign Minister said in a statement.

“I will take action in that regard, in coordination with the Foreign Ministry of Sri Lanka,” Frank Steinmeier, foreign minister of Germany said when he called on President Maithripala Sirisena, Tuesday.

President Sirisena, commending the cooperation of Germany extended to Sri Lanka for a long time, said that to maintaining a good association with every country in world is the foreign policy of the new government of Sri Lanka.

“Ensuring of the democracy and reconciliation is the course of the government,” he said.

“The government is also committed to ensure the freedom of judiciary.”

The German Foreign Minister expressed the satisfaction of the government of Germany on the program carried out by the Sri Lankan government to ensure democracy and achieve reconciliation.

Steinmeier conveyed the invitation of German Chancellor Angela Merkal for President Sirisena to visit Germany and the President accepted the invitation, the statement said.

Deputy Foreign Minister Mr. Harsha de Silva, Secretary to the Ministry Mr. Sivageeshwara and German Ambassador in Sri Lanka Dr. Jürgen Morhard also participated in this occasion.

JKH promises $ 850 m Cinnamon Life will be game changer

Premier blue chip John Keells Holdings (JKH) yesterday promised that the biggest-ever private sector investment of $ 850 million for Cinnamon Life in Colombo 2 would be an economic game changer for Sri Lanka and an icon in South Asia. A trendsetting project in Sri Lanka, Cinnamon Life has been launched with pride by Waterfront Properties Ltd., a member of the John Keells Group. This architectural icon has been envisioned as a 4.5 million sqft integrated resort consisting of an 800-room luxury Cinnamon hotel, avant garde experiential and entertainment haven, residential apartments, state-of-the-art office spaces, a wide variety of food and beverage offerings and ballroom, conferencing, theatre and banqueting spaces. This mixed development project is Sri Lanka’s largest private sector investment. Cinnamon Life, with its vibrant and inspired concept, is a project of significant national importance and will become the epicentre of modern South Asia. This integrated resort development will be executed as a ‘life capital’, an architectural heartbeat, where different aspects of life, living, working and playing blend seamlessly, interacting with one another, empowering one another in new and exciting ways. Internationally renowned architect, artist and engineer, Cecil Balmond, the design visionary behind some of the most popular buildings in the world, including the ArcelorMittal Orbit in London and the CCTV in Beijing, will be bringing this inspired concept to life, while a consortium of contractors headed by Hyundai Engineering and Construction are the contractors for the project. With Cinnamon Life, Balmond has dreamed up a design that combines a contemporary international feel, with a local flavour. He is determined to use Sri Lanka’s largest private sector investment as a chance to put the nation on the world map. “Looking at it from an architecture and design point of view, it will be a composition of several forms. It will be like nothing Sri Lanka has ever seen. The integrated nature, unique design and the lifestyle it offers will make this the flagship development of Sri Lanka. The shape and form of the project is such that it will stand as a guard stone for the city,” he emphasizes.The structure of the project provides a backdrop to the city and the sea. It has massive projections which are powerful dynamic statements in architecture. The scalloped form gives it a romantic shape and mirrors the Beira Lake. The structure reflects a functional, yet aspirational, feel with the massive projections it will provide a theatrical sensation, for those within to watch the city in the front and the drama within the architecture itself.Articulating the John Keells vision for Cinnamon Life, Ajit Gunewardene, Deputy Chairman of the company, commented: “Cinnamon Life was conceptualised as a flagship project for Sri Lanka as it stakes its claim in the international arena after decades of remaining on the sidelines. The first of its kind in the region, Cinnamon Life will shine bright like a beacon of prosperity and help support the country’s development. “Locals and tourists need a destination to gather and enjoy themselves when they work, live or play and Cinnamon Life will be their playground! The integrated resort concept will attract investors, high-end brands, leisure and business travellers and local populace who will be compelled to be part of its unique contemporary ethos. This project will generate numerous benefits for the economy and the community. More importantly, Cinnamon Life will engender a sense of pride to be Sri Lankan as it will signal the march of the country towards a vibrant future.”The Property arm of the John Keells Group has successfully executed prominent landmarks such as Monarch and Emperor at Crescat City; Onthree20; and its latest project, 7th Sense – Gregory’s Road.Suresh Rajendra, President of the John Keells Property Group, commented: “The legendary reputation of the company precedes us in the marketplace and we are overwhelmed by the expressions of interest for bookings for ‘The Residence’. In fact, I am happy to announce that 40% of the first tower is already booked. John Keells will be replicating its successful guaranteed rental scheme which was operational at both its Emperor and Monarch projects. A similar scheme with a fixed guaranteed annual return for a limited number of apartments for a limited period will be available for Cinnamon Life. Another attractive feature is the state-of-the-art, 24-storey office space, half of which will be operated by the developers themselves and the remaining will be sold on an outright basis. We remain steadfast in our commitment to deliver the highest gains for this project.”Based on its sheer scale and powerful ambition, Cinnamon Life will showcase Sri Lanka’s aspirations and reliability to the region and define Sri Lanka as the place where possibilities are endless.
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