LSE Group to open technology hub in Sri Lankan capital

ECONOMYNEXT – London Stock Exchange Group’s Business Services division (LSEG BSL) in Sri Lanka will soon open its new headquarters in the Sri Lankan capital Colombo occupying 26,000 square feet, a statement said.

“The new Business Services division in Sri Lanka will provide support to the Group’s operating entities across the globe,” it said.

“The venture will provide the best and brightest technology talent in the country with the opportunity to be a part of an ever-expanding, innovative knowledge hub.”

The new headquarters will be in the historic Expert City precinct, formerly known as Tripoli Market.

The proposed new 26,000 sq ft premises would complement LSEG BSL’s current incubation hub, which is also housed at Expert City.

The new LSEG facility will directly employ 400 personnel in high-technology jobs, with an additional 1,200 employed indirectly, the company said.

“These employees will be tasked with providing technical support services that are central to the Group's global network,” it said.

“LSEG's investment and recruitment drive in Sri Lanka will also provide an immediate boost for the IT sector of the country.”

Murali Subrahmanyan, Head of Business Services Colombo, LSEG said the firm’s plans to establish the facility in Colombo reaffirms its commitment to the technology sector of Sri Lanka.

“Our new facility at Expert City will house some of the best talent in the industry, and it is important to us that all our facilities reflect these high standards. The launch of this new technology centre represents an exciting opportunity for the local population to join a truly global organisation.”

Sri Lanka Telecom net down 38-pct

ECOOMYNEXT - Profits at Sri Lanka Telecom, which has wireline and mobile, fell 38 percent to Rs1.09 billion in the June 2016 quarter with fixed access revenues flat, interim accounts showed.

The group reported earnings of 61 cents per share for the quarter. During the six months to June, the group reported earnings of Rs.56 per share, on total profits of Rs2.9 billion, which was down 13 percent.

At the core, wireline firm revenues in the June quarter rose 4.8 percent to Rs10.506 billion from a year earlier, but were down 2.3 percent from Rs10.8 billion reported in the March quarter.

Revenue was driven by its mobile unit.

Sri Lanka has seen a decline in fixed line voice business, with fixed wireless connections being discontinued. However, wireline access is now driven by data.

Borrowings reduce Sri Lanka’s Laugfs Gas June profits

ECONOMYNEXT – Sri Lanka’s Laugfs Gas PLC said June 2016 net profit fell 92 percent to Rs26 million from a year ago as finances rose sharply owing to borrowings to diversify business in the island and overseas.

Sales rose 45 percent to Rs3.9 billion during the period, according to interim accounts filed with the stock exchange.

June 2016 quarter earnings per share fell to 07 cents from 84 cents a year ago.

The company was hit by the recent floods, virtually paralysing all its operations for nearly two weeks, making heavy impacts of the revenue and profitability of the company, a statement said.

Laugfs Gas Chairman and Chief Executive W. K. H. Wegapitiya said the firm, which started by supplying liquid petroleum gas, has diversified investments rapidly in recent months.

“The company’s profit for the period, took a momentary dip during the period ended due to the cost of borrowings made largely to finance the investments,” he said.

“The company is very confident that the returns are imminent in the medium to long term out of the judicious investment made.”

Laufgs has invested in LPG distribution in Bangladesh, an LPG terminal in Hambantota port, a new gas carrier, a solar power plant and a hotel.

Sri Lanka 06, 12-month Treasuries yields rise

ECONOMYNEXT - Sri Lanka's 03-month Treasuries yields were flat at Tuesday's auction, while 06-month and 12-month bill yields rose slightly, data from the state debt office showed.

The yield on 12-month T-Bills rose 02 basis points to 10.74 percent, while that on 06-month bills rose 02 bps to 9.94 percent.

The three month bill yield was flat at 9.01 percent.

The debt office offered Rs67.5 billion of bills and sold Rs14.5 billion of bills, mostly 06 and 12 month.

Sri Lanka's CT Holdings June quarter net profit up 45-pct

ECONOMYNEXT - Sri Lanka's CT Holdings group (CTH) said net profit rose 45% to Rs 537 million rupees in the June 2016 quarter from a year ago with strong growth in the retail and fast moving consumer goods (FMCG) sectors.

Sales rose 22% to Rs21 billion during the period, according to interim accounts filed with the stock exchange.

Earnings per share for the June 2016 quarter were Rs2.93 against Rs2.02 a year ago.

“Again the retail and FMCG sectors led the way with growth of 123.15% and 29.82% respectively,” CT Holdings said in a statement accompanying the accounts.

“The restaurants sector also recorded a growth of 5 times the previous year, albeit on a smaller base figure. The restaurant sector results also includes the TGI Fridays, which is yet to achieve its optimum operational level.”

CT Holdings said the sales growth momentum has been sustained during the period through volume growth, primarily in the retail sector.

Turnover of the retail sector grew by 23.8% over the corresponding period of the previous year.

“The Retail management takes the view that strong growth prospects are assured for this sector,” the statement said.

The FMCG sector, presently the second largest sector of operation, grew 13.50% despite the Confectionaries subsector lagging behind in its operational performance.

“Further efforts are being concentrated in the Confectionaries sub sector with a view to improving product offering, volume and market coverage.”

All other sectors with the exception of the entertainment business recorded a growth exceeding 10%.

Sri Lankan shares edge down on profit-taking

Reuters: Sri Lankan shares closed slightly lower on Tuesday after posting a more than 11-week closing high in the previous session, as investors booked profits in beverage stocks and foreign investors trimmed their holdings.

Foreign investors offloaded a net 89.85 million rupees ($617,950.48) worth of shares in their first selling in three sessions, extending the net foreign outflow so far this year to 3.35 billion rupees worth of equities.

The fall seems to be a small downturn with some profit-taking after the recent uptrend, said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

"The overall investor sentiment is quite bullish and it is getting better day by day."

Investors expected the country's economic fundamentals to improve after the central bank on July 28 surprised the markets with a 50-basis point hike in its main interest rates aimed at curbing stubbornly high credit growth.

The benchmark Colombo stock index ended 0.07 percent, or 4.65 points, weaker at 6,577.95.

Turnover stood at 851.7 million rupees, more than this year's daily average of around 732.1 million rupees.

Shares of Ceylon Tea Services Plc fell 12.56 percent, while Carson Cumberbatch Plc dropped 1.37 percent.

Analysts said investors also largely shrugged off a Supreme Court order asking the parliament to stop considering a bill to raise the value-added tax as the draft had not followed due process.

The move could put in jeopardy the government's ambitious fiscal consolidation plan to reduce the budget deficit to 5.4 percent of gross domestic product from last year's 7.4 percent. 

($1 = 145.4000 Sri Lankan rupees) 

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

Sri Lankan shares hits more than 11-wk high

Reuters: Sri Lankan shares ended at more than 11-week high on Monday as investors bought beverage and banking shares amid foreign buying into the island nation's risk assets boosted sentiment.

The benchmark Colombo stock index ended up 0.93 percent, or 60.46 points, at 6,582.60, its highest close since May 25.

"The market moved up on thin volumes, but the market is looking better and better with the more stability coming into the market," said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities (Pvt) Ltd.

Investors hoped that the economic fundamentals would improve after the central bank on July 28 surprised the markets with a 50-basis points raise in its main interest rates aimed at curbing stubbornly high credit growth.

Foreign investors net bought 62.59 million rupees ($430,172) worth of shares, extending the net foreign inflow to 1.55 billion rupees worth of equities in the last 14 sessions.

However, they have sold 3.26 billion rupees worth of shares so far this year.

Turnover stood at 675.1 million rupees, less than this year's daily average of around 731.3 million rupees.

Shares in Nestle Lanka Plc jumped 10.25 percent while Ceylon Tobacco Company Plc gained 1.9 percent and Cylon Cold Store Plc rose 4.96 percent.

Shares in biggest listed lender Commercial Bank of Ceylon Plc rose 0.96 percent.

Analysts said investors also shrugged off a Supreme Court order asking the parliament to stop considering a bill to raise the value-added tax as the draft had not followed due process.

The move could put in jeopardy the government's ambitious fiscal consolidation plan to reduce the budget deficit to 5.4 percent of gross domestic product from last year's 7.4 percent. 

($1 = 145.5000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Gopakumar Warrier)