Sri Lanka sells US$235mn in floating rate bonds

ECONOMYNEXT - Sri Lanka has sold 235 million US dollars of floating rate bonds for settlement on January 21, with one year bills being sold most, data from the state debt office showed.

The debt office sold 233 million dollars of 12-month bills, at 358.64 percent above the 6-month London Interbank Offered Rate.

The debt office also sold 2.0 million dollars of 2-year 3-month bills at 417.5 basis points above the London Interbank Offered Rate.

The date of settlement is January 21, 2016.

Sri Lanka Krrish deal tax breaks to be lowered

ECONOMYNEXT - A mixed development project by India's Krrish group which ran into a controversy during the last regime can still go ahead but as a new project with tax incentives revised lower, an official said.

"It came as a strategic investment that required certain undertakings from their part," Director General of Sri Lanka's Board of Investment, Duminda Ariyasinghe told reporters.

"Obviously some of them haven't been met. We are revising downwards the incentives that we offer."

The Krrish group has submitted a fresh investment proposal that the BOI is discussing, he said.

Under Sri Lanka's Strategic Investment Law companies were able to get sweeping tax breaks, with up to 15 to 20 year tax holidays but the new administration has said the law will not be used.

Bank of Tokyo - Mitsubishi UFJ opens office Thursday

The Bank of Tokyo- Mitsubishi UFJ will open its first representative office in Sri Lanka on Thursday January 21.

This is the first approval granted to a Japanese bank by the Central Bank of Sri Lanka.Through the new representative office in Colombo, the bank will continue to further enhance its financial solutions and offerings to better meet the needs of its customers operating in or trading with Sri Lanka by making the most of its extensive network, which is the largest among Japanese banks.
www.dailynews.lk

RPC shareholder nod for ESOP

The Shareholders of Richard Pieris and Company PLC (the Company) at an Extraordinary General Meeting held on July 29, 2015 approved the Employee Share Option Plan (ESOP).

This is by way of a Special Resolution thereby allowing issue of shares under this scheme, which is equivalent to 5% of the Issued Capital of the Company. (2,959,639 Ordinary Shares at the date of passing the Resolution) The Board of Directors of the Company at a meeting held on 24th August 2005 resolved to implement the ESOP and to issue 1959,639 shares, which is equivalent to 5% of the Issued Capital of the Company at an option price of Rs. 100per share.

The Scheme would be dissolved on August 24, 2018 as the Company will not be permitted to make any further extensions to the Scheme.

(SS)
www.dailynews.lk

TRC revises mobile call, SMS rates

The Telecom Regulatory Commission (TRC) has introduced a new common floor rate for the Sri Lanka telecom industry. This will be with effect from February 1. “The idea is to set a new minimum rate creating a level playing field for all operators,” an official from the TRC said. “It will enable small time operators also to be competitive.”

Under the circular issued by TRC, Short Messages (SMS’) will be increased from the current cents 10 to 20. In addition call charges within the same network between two subscribers too will be increased by cents 50. (Rs. 1.50) This will be for post paid users (on per minute billing.) In the pre paid segment, a call made to a different operator will be reduced from the current Rs. 2.50 to Rs. 1.80. As for the pre paid users with the network the tariff will be increased from Rs. 1.50 to 1.80.

(SS)


www.dailynews.lk

Sri Lankan shares fall for 3rd straight session on rising yields

Reuters: Sri Lankan shares fell for a third straight session on Tuesday to their lowest close in nearly 19 months due to rising yields and as investors sold their holdings to settle margin trading, brokers said.

The main stock index pared early losses and closed 0.65 percent, or 41.37 points, weaker at 6,283.24, its lowest close since June 27, 2014.

The stock market had shed about 8.9 percent this year through Tuesday's close due to foreign outflows, triggered by global concerns over China's economy.

"Market is coming down because of overacting of local investors and the fall has little to do with the fundamentals," said Yohan Samarakkody, head of research, SC Securities (Pvt) Ltd, adding margin calls were seen as local investors sold in response to foreign selling.

Foreign investors, who have sold a net 2.35 billion rupees worth of equities so far this year, bought a net 5.5 million rupees ($38,194.44) on Tuesday.

Stockbrokers said some foreign funds have already started selling blue chips, including market heavyweight John Keells Holdings and lender Commercial Bank of Ceylon .

Turnover was at 765.3 million rupees ($5.31 million).

The yield on 91-day t-bills rose 40 basis points to a more than three-month high of 6.78 percent in three weekly auctions since the Dec. 30 monetary policy announcement.

Shares of Cargills (Ceylon) Plc fell 5.88 percent, Bukit Darah Plc dropped 5.48 percent and Hatton National Bank Plc declined 0.41 percent.

Sri Lanka Telecom Plc fell 1.23 percent, Commercial Bank of Ceylon Plc dropped 0.85 percent and John Keells shed 0.50 percent. 

($1 = 144.0000 Sri Lankan rupees) 

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

Sri Lankan shares fall to near 19-month low on rising rates

Reuters: Sri Lankan share index fell about 2 percent to near 19-month low on Monday due to rising yields and as investors sold their stocks to settle margin trading, brokers said.

The main stock index ended 1.89 percent, or 121.59 points weaker, at 6,324.61, its lowest close since June 27, 2014.

The market has lost about 8.3 percent this year through Monday's close due to foreign outflows triggered by global concerns related to China's economy.

"On one hand, large quantities of foreign selling is available in the market. But on the other hand nobody is coming forward to buy the market," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.

"The fall has already triggered margin calls for everybody. There is also lack of positive news and there is nothing concrete taking place on the government side, while interest rates are also slowly on the rise though the central bank is tightly holding them," he said.

Foreign investors sold a net 151.3 million rupees ($1.05 million) worth of equities on Monday, extending net outflows to 2.36 billion rupees so far this year. Last year, the island nation saw a net outflow of 4.43 billion rupees.

Stockbrokers said some foreign funds have already started selling blue chips including the market heavyweight John Keells Holdings and lender Commercial Bank of Ceylon .

The turnover was at 812.7 million rupees ($6.81 million).

The yield on 91-day t-bill rose 40 basis points to an over three-month high of 6.78 percent in three weekly auctions since the Dec. 30 monetary policy announcement.

Conglomerate John Keells fell 2.7 percent, while Lanka Orix Leasing Co lost 7.2 percent, dragging the overall index.

($1 = 144.0000 Sri Lankan rupees) 

(Reporting by Shihar Aneez and Ranga Sirilal; Editing by Anand Basu)