Sri Lanka police arrests Entrust Securities officials over Rs4.2bn fraud

ECONOMYNEXT - Sri Lanka's financial crimes police have arrested five persons connected to Entrust Securitas, a regulated primary dealer in government bonds, over a 4.2 billion rupees fraud, a media report said.

Sri Lanka's Daily Mirror newspaper said Dharmapriya Bandara Dassanayake (Chairman), Chanuka Ratwatte (managing director), Romesha Dushanthi Senarath (Executive Director), Sanjeewa Dayaratne and Niloshan Romelo Mendis (Director).

The five persons were remanded by court until September 28.

Entrust Securities is now managed by state-run National Savings Bank. The firm is alleged to have mis-appropriated funds of a provident fund in state-run Ceylon Electricity Board, and several funds of the Central Bank of Sri Lanka, which is the regulator.

Sri Lankan shares edge down on VAT hike concern

Reuters: Sri Lankan shares closed marginally lower on Wednesday, posting their lowest closing level in nearly six weeks, as a government proposal to raise the value added tax (VAT) hurt market sentiment.

The government on Wednesday said the cabinet has approved a proposal to increase the VAT to 15 percent from 11 percent with some amendments, a move halted by the Supreme Court earlier. The hike is expected to be implemented after parliamentary approval later this month.

The benchmark Colombo stock index ended 0.24 percent lower at 6,492.74, its lowest close since Aug. 4.

"Investors are worried about the VAT hike. Profit-taking was also there," said Atchuthan Srirangan, a senior research analyst with First Capital Equities (Pvt) Ltd.

Turnover stood at 749.9 million rupees ($5.15 million), in line with this year's daily average of 747.2 million rupees.

Foreign investors, who have been net sellers of 2.29 billion rupees worth of shares so far this year, were net buyers of 407.3 million rupees worth of equities on Wednesday.

Shares of Distilleries Company of Sri Lanka Plc fell 4.38 percent, while Ceylon Tobacco Company Plc dropped 1.21 percent. 

($1 = 145.5000 Sri Lankan rupees) 

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

Sri Lanka to charge 15-pct VAT on air tickets, houses, healthcare, milk products

ECONOMYNEXT -Sri Lanka will tax air tickets, housing, sweetened milk and healthcare at 15 percent under in value added increases approved by the cabinet of ministers.

There will be some exemptions for outpatient treatment, dialysis and medical tests, Information Minister Gayantha Karunathilake said.

A 15 percent VAT will also be imposed on tobacco and telecom services. Sri Lanka already has charges high levels of taxes around 30 percent on telecom services.

VAT will also be charged on air tickets from an airport in Sri Lanka to a foreign airport.

The changes will be gazetted and also passed in parliament, Minister Karunathilake said.

Sri Lanka T-bill yields steady at auction

ECONOMYNEXT - Sri Lanka's Treasury Bill yields remained steady at Tuesday's auction with the central bank not accepting bids for 03-month bills, data from the state debt office showed.

The 6-month yield remained at 9.71% with the debt office receiving bids worth Rs16.6 billion and accepting only a billion rupees.

The 12-month yield remained at 10.39% with the debt office getting Rs30.5 billion worth of bids and accepting bids of only Rs12.3 billion.

UDA acquires Cargo Boat property

The Megalopolis and Western Development Ministry has sent a letter to Cargo Boat Development Company mentioning that the Urban Development Authority has taken action to acquire the above property to develop as a multi-storey car park.

The property which is at Janadhipathi Mawatha, Colombo 1,owned by Cargo Boat Development Company was purchased by the company in January 2010 to develop a multi storey car park.
www.dailynews.lk

Kotagala Plantations to raise Rs 800 mn

Kotagala Plantations is to issue 80,000,000 ordinary shares at a price of Rs.10 per share by way of a Rights Issue in the proportion of two new ordinary shares for every one existing issued ordinary share.

The funds realized from the Issue will be utilized to settle outstanding statutory liabilities and to meet working capital requirements.The stated capital of the company is Rs 680,000,010 and the Rights Issue of Shares will not be underwritten.

The rights issue of shares is subject to approval SEC and shareholder approval at an Extraordinary General Meeting.
www.dailynews.lk

Sri Lankan shares end higher; blue-chips lead

Reuters: Sri Lanka's benchmark index edged up on Tuesday to recover from a seven-week closing low hit in the previous session, led by blue-chips, but investors stayed on the sidelines amid confusion over falling bond yields.

The benchmark Colombo stock index ended up 0.2 percent at 6,508.09, edging up from its lowest close since Aug. 1 hit on Friday. The bourse fell 0.68 percent last week, posting its third straight weekly loss.

"The index ended higher amid lacklustre turnover levels. The diversified, banking, finance, manufacturing and leisure sectors saw market activity," John Keells Stockbrokers said in a note to investors.

Analysts said they expect shares to rise after results of the central bank's weekly treasury bill auction last Wednesday showed yields fell between 23 and 34 basis points, with the benchmark 91-day treasury bill yield falling for the first time since July 8.

However, investors stayed on the sidelines as some banks offered higher yields for fixed-income assets, they said.

The yield held steady on Tuesday at the weekly auction.

Foreign investors who are net sellers of 2.7 billion rupees worth of shares so far this year, were net buyers of 96.8 million rupees worth of equities on Tuesday.

Turnover stood at 323.8 million rupees ($2.24 million), less than half of this year's daily average of 747.2 million rupees.

Shares of Sri Lanka Telecom Plc rose 1.37 percent while Lanka ORIX Leasing Company Plc gained 4.55 percent.

Shares of Ceylon Tobacco Company Plc rose 0.65 percent while Asian Hotels Properties Plc was up 3.66 percent and biggest listed lender Commercial Bank of Ceylon Plc gained 0.79 percent. 

($1 = 144.8000 Sri Lankan rupees) 

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