Oxford Business Group produces infographic on Sri Lanka

Country eyeing higher levels of foreign investment across the economy

An infographic produced by the global publishing, research and consultancy firm Oxford Business Group (OBG) charts Sri Lanka’s journey towards global integration and its efforts along the way to boost broader-based Foreign Direct Investment (FDI).

OBG’s infographics are essential, at-a-glance tools that provide readers and viewers with a facts-and-figures summary of a market’s latest economic development. Brief and to the point, they complement the in-depth, sector-by-sector coverage in OBG’s country reports.

Data shows that FDI into Sri Lanka increased more than three-fold in the decade to 2014, with infrastructure the top recipient.

OBG’s infographic noted tourism’s rising contribution to GDP, with foreign arrivals up 18% in 2015 and expected to more than double by 2020. It also highlighted the positive impact that strong tourism growth was having on real estate, especially hotel supply, with stock rising by 35.7% in the three years to 2014 and further luxury developments in the pipeline.

Sri Lanka’s strategic position on the main sea trade routes of Europe and Asia continues to give the country a competitive edge, OBG found, with the country set to build on its status as a shipping and trans-shipment hub. The infographic noted that export throughput rose by 29.8% in the five years to 2015.

Further analysis of the country’s economy is available in Oxford Business Group’s latest publication, The Report: Sri Lanka 2016. The report is a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. It also contains interviews with leading representatives. The Report: Sri Lanka 2016 is available in print and online.

Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic intelligence on the markets of the Middle East, Africa, Asia and Latin America and the Caribbean. Through its range of print and online products, OBG offers comprehensive and accurate analysis of macroeconomic and sectoral developments, including banking, capital markets, insurance, energy, transport, industry and telecoms.

The critically-acclaimed economic and business reports have become the leading source of business intelligence on developing countries in the regions they cover. OBG’s online economic briefings provide up-to-date in-depth analysis on the issues that matter for tens of thousands of subscribers worldwide. OBG’s consultancy arm offers tailor-made market intelligence and advice to firms currently operating in these markets and those looking to enter them.
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Sri Lanka’s Commercial Bank kicks off operations in Maldives

(LBO) – Sri Lanka’s Commercial Bank of Ceylon today started operations of its subsidiary in Male, Maldives, the bank said in a stock exchange filing.

Commercial Bank of Maldives private limited is a fully-fledged banking subsidiary which is set up in partnership with a Maldivian company.

The bank last year said the partner Maldivian group of companies is involved in businesses ranging from financial services, hotel and tourism and retailing.

Commercial Bank said it would invest in a 55 percent stake in this banking subsidiary with the remaining 45 percent owned by the partner company.

The new bank is to offer individuals and corporate entities in the Maldives a variety of financial services including savings and current accounts, FDs, ATMs, remittances, housing and other loans.

Sri Lankan companies operate hotels in the Maldives, a large number of Sri Lankans are employed in the Maldivian hospitality industry, and Sri Lanka provides services to Maldivian visitors in many spheres including education and healthcare.

Overseas Realty to raise Rs7.3bn in rights issue for Havelock City

(LBO) – Sri Lanka’s Overseas Realty is to raise 7.3 billion rupees by way of a rights issue, the company said in a stock exchange filing.

The company is to issue 355 million new ordinary shares at 20.50 rupees each in the ratio of two new shares for every five shares held.

The proceeds will be utilized to invest in the mixed development project of Havelock City Pvt Ltd.

The rights issue is subject to obtaining the listing approval of the stock exchange and the approval of shareholders at a General Meeting of the Company.

The current stated capital of the company is 11.2 billion rupees.

Overseas Realty engages in land and property business with the development of property for investment, property management and restaurant operation.

Sri Lankan shares end flat amid foreign outflows

Reuters: Sri Lankan stocks ended steady on Monday, as gains in financial shares were offset by losses in consumer staples, amid foreign outflows and tax hike concerns.

Foreign investors sold a net 183 million rupees worth of shares on Monday extending the year-to-date net forging outflow to 3.01 billion rupees worth of equities.

The International Monetary Fund (IMF) on Friday said Sri Lanka's government, which has failed to raise taxes as promised when it received a $1.5 billion loan from the lender in June, needs to implement a tax reform package without further delay.

The reform package will include raising taxes to increase the government revenue and reduce fiscal deficit.

The benchmark index of the Colombo Stock Exchange ended flat, dropping 0.2 points to 6,4789.94.

After four straight weekly losses, the index posted a weekly gain of 0.10 percent last week.

"Nothing much happened today. But the good thing was that the buying interest was there," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd, adding that the liquidity shortage in the market was "temporary".

Turnover stood at 614.1 million rupees, less than this year's daily average of 752.2 million rupees.

Consumer stocks such as Ceylon Tobacco Company Plc slid 1 percent, while Ceylon Cold Stores Plc fell 2.33 percent, bringing down the overall index. Overseas Realty Plc dived 8.30 percent.

Meanwhile, shares in Commercial Leasing and Finance Plc jumped 8.11 percent while Commercial Bank of Ceylon Plc rose 0.71 percent.

($1 = 146.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

Sri Lanka’s CIFL awaits response from German investor for bailout

(LBO) – Sri Lanka’s troubled Central Investment and Finance Company says they are awaiting a response from a prospective German investor indicating their future plan of action to revive CIFL.

In a stock exchange filing, the company said they submitted all clarifications to the investor delegation who visited the island recently.

A high level delegation from Vandell Financial Services arrived in Sri Lanka last week to discuss opportunities of investing in the troubled finance company.

The delegation also met President and Finance Minister in addition to other fact finding missions to regulatory authorities.

“The investors have expressed their desire to acquire 100% of the ownership of the company,” the company said.

“We have now submitted all the clarifications to the Investor delegation and awaiting their response from them in the form of a MOU indicating the future plan of action setting the milestones in reaching the final objective of reviving CIFL and handing over the management to the new investors.”

The German investors would infuse 5 billion rupees to revive CIFL, according to the President of CIFL Depositors Association, media reports said.

The delegation has also shown interest in investing in the Northern and Eastern Provinces.

Lanka IOC eyes Indonesia lubricant market

(LBO) -Lanka IOC says they are exploring the option of exporting lubricants to some of the regional countries and hope to enter the Indonesian market soon.

“As of now we are already exporting to the Maldives and are thinking of a few other countries,” Shyam Bohra, managing director Lanka IOC said at the introduction of its “Global Container” packaging for SERVO Lubricants, Thursday.

“We are looking to enter Indonesia by the end of the year.”

Currently there are 13 players in the Sri Lankan market and the total consumption is 49,000 tonne per year.

“We are pleased to introduce the Global Container concept to Sri Lanka. With this we expect a sales growth of 2-3 percent,” Bohra said.

“Our market share is 17 percent at the moment and we are looking at increasing it to 20-25 percent in the next five years.

Lanka IOC blends Servo brand of lubricants at lube blending plant, Trincomalee and is the only private oil company other than the state-owned Ceylon Petroleum Corporation (CPC) that operates over 199 retail petrol/diesel stations in Sri Lanka.

Sri Lankan shares up for third straight session on blue chips

Reuters: Sri Lankan stocks edged up for a third straight session on Friday posting a more than one week closing high, led by gains in large cap shares amid investor appetite for stocks that took a hit earlier in the week due to a proposed tax increase.

The International Monetary Fund (IMF) said on Friday that Sri Lanka's government, which has failed to raise taxes as promised when it received a $1.5 billion loan from the lender in June, needs to implement a tax reform package without delay.

The IMF also said that central Bank should be ready to tighten monetary policy further if inflation or credit growth continue to rise.

The benchmark index of the Colombo Stock Exchange ended 0.22 percent or 14.27 points higher at 6,479.21, its highest close since Sept. 14.

The index gained 0.10 percent this week, after four straight weeks of losses.

"Interest in blue chips is continuing," said Dimantha Mathew, head of research at First Capital Equities (Pvt) Ltd. "Investors are no longer on wait-and-see and are starting to buy in to the stocks."

Foreign investors bought a net 112.6 million rupees worth of shares on Friday. But they have been net sellers of 2.83 billion rupees worth of equities so far this year.

Turnover stood at 886.3 million rupees, more than this year's daily average of 753 million rupees.

Shares in Distillers Company of Sri Lanka Plc rose 4.69 percent while Asian Hotel Properties Plc jumped 7.14 percent, driving the overall index higher.

The bourse had hit a more than seven-week low on Tuesday as selling pressure on stocks that were expected to take a hit from a proposed tax increase weighed on sentiment.

($1 = 146.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Amrutha Gayathri)