Sri Lanka calls proposals for US$500mn dollar loan

COLOMBO (EconomyNext) - Sri Lanka has called proposals from investment banks for a floating or fixed rate loan of up to 500 million dollars, with a tenor of three years or more.

The External Resources Department of the Government of Sri Lanka said interest will be paid half yearly on the loan.

Investment banks should submit bids on multiples of 100 million US dollars for a maximum of 500 million dollars.

A bullet repayment on instalment payments could be requested.

The proposals should be sent before June 25.

Sri Lanka stocks edge down from over 1-wk high

Sri Lanka's stock index slipped on Tuesday from a more-than-one-week high hit in the previous session, with many foreign investors exiting risky assets on speculation over a U.S. rate hike while local investors were cautious ahead of a parliamentary election.

The main stock index ended down 0.49 percent at 7,044.60, slipping from its highest close since June 5 hit on Monday.

"Big-caps dragged the market down. Not many locals are on the buying side. It's not that they don't have money, but it's that they are not willing to buy at this moment," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.

"We expect the current stagnated situation to continue until the elections are announced."

President Maithripala Sirisena's government has said it would dissolve parliament once some crucial reforms, including an electoral bill, are passed, but is yet to fix a date for the election.

Tuesday's turnover was 860.9 million rupees ($6.43 million), well below this year's daily average of about 1.1 billion rupees.

The market saw net foreign outflows of 258.9 million rupees ($1.93 million), extending net foreign outflow for the past 15 sessions to 2.54 billion rupees. The bourse, however, has seen net inflows of 3.40 billion rupees into equities so far this year.

Analysts said foreign investors have been selling shares amid expectations the U.S. would hike key interest rates sooner than expected.

Shares in Nestle Lanka Plc fell 5.14 percent, while Ceylon Tobacco Company Plc fell 0.67 percent.

Shares in Conglomerate John Keells Holdings Plc, which saw a net foreign outflow of 1.4 million shares on Tuesday, ended 0.67 percent weaker. 

($1 = 133.8000 Sri Lankan rupees) 

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

Aitken Spence to build two resorts in Maldivian Islands, bullish about tourist potential

June 15, 2015 (LBO) – Sri Lanka’s Aitken Spence group said it plans to start construction of two new resorts in Maldives which will add 360 room to its portfolio and boost capacity in Maldives by 57 percent.

The group acquired two islands, Aarah Island in Raa Atoll in 2014 and Raa Fushi in Noonu Atoll in 2015 for the basis of lease, which will bring the total number of islands held by Aitken Spence in the atolls to six.

“We will commence the construction of two new resort properties on these two islands, Aarah in Raa Atoll and Raafushi in Noonu Atoll during the year ahead,” J M Brito, Managing Director of Aitken Spence told shareholders in the annual report 2014/2015.

“Our strategy of being a regional player once again paid dividends and the properties in Maldives and Oman performed remarkably, with the Maldives properties being the highest contributor to the Group, accounting for over 70 percent of our profitability,”

“We continued to be the largest single foreign operator in the Maldives in terms of resort capacity.”

The group already operates five resorts in four islands in the Maldives with 630 rooms and 1,200 beds, the company said.

The hotel brand “Adaaran” established in Maldives has continued to be the highest contributor to the group’s profitability in 2014 /15 adding more than 70 percent to profits during the year.

Revenues from these properties increased by 3.3 percent to 10 billion rupees during the year. Chinese visitors continued to make up the highest share of visitors to the Adaaran properties, the company said.

Aitken Spence said it plans to build a 160 roomed resort on Aarah in Raa Atoll where design work is ongoing and construction expected to commence this year.

A 200 roomed resort is being planned for Raa Fushi in Noonu Island, which was acquired in 2014 and design work is on-going. Construction is to commence in 2015, the company said.

Singer Finance to enter the Credit Card business

June 15, 2015 (LBO) – Sri Lanka’s Singer Finance said it plans to launch a credit card in the latter half of this year targeting rural consumers, the company told shareholders in its annual report of 2014/2015.

The company said that it has applied to the Central Bank of Sri Lanka for a license to introduce a credit card and received approval for same, which makes the company to become the first Finance Company to launch a credit card.

“Our future focus in FY 2015/16 will be on the successful launch and growth of our new credit card product,” R S Wijeweera, Chief Executive of Singer Finance told the shareholders.

“As the first financial company to launch a credit card, we have devised an innovative and aggressive marketing strategy and are fully geared to implement this in the forthcoming weeks and months,”

“Singer Finance has a captive customer base for the proliferation of the Singer credit card, keeping in mind the massive customer base of Singer Sri Lanka.”

The card will be an approved Visa card and can be used locally and internationally.

The company says the credit cards will be marketed to the Singer brand’s strong consumer base, many of whom are located in rural areas.

“The unique feature of the card is that it will empower even those in the lower income bracket to transact using the credit card,” the company said.

Singer Finance gross income grew only by 5 percent, as increase in business volumes were offset by decline in lending rates. However, net interest income grew by 14.3 percent as borrowing rates also came down.

Fees increased by 38 percent and other income increased by 27 percent, the report showed. As a result, total operating income increased by 16 percent to 1,317 million rupees.

Profit after taxes increased to 388.7 million rupees from 268.6 million rupees in the prior year.

Sri Lanka’s F L C Hydro Power commissions its fourth power plant

June 15, 2015 (LBO) – Sri Lanka’s F L C Hydro Power which has interests in building, owning, operating and maintaining hydro power generation facilities in the island has commissioned its 800Kw plant on 11 June 2015.

Newly built mini hydro power plant is owned by Thebuwana mini hydro private limited which is a wholly-owned subsidiary of F L C Hydro Power.

With the forth power plant, the total generation capacity of the company has been increased to 4.9Mw, the company said in a stock filing.

F L C Hydro Power has two plants located at Sanquhar Estate Paradeka and Delta Estate Pupuressa, with generation capacity of 1.6Mw each.

On 10 January 2014, the company commissioned the Stellenberg mini hydro plant with an installed capacity of 0.9 Mw.

Sri Lanka stocks edge up to over 1-wk high on telecoms, inflows

Sri Lanka's stock index rose to a more than one-week high on Monday, led by telecom shares and on foreign inflows, but turnover was lower as many investors were cautious about risky assets ahead of a parliamentary election.

The main stock index ended 0.25 percent up, or 17.69 points, at 7,078.97, its highest close since June 5.

"Sellers are not that desperate, they are holding on," said a stockbroker asking not to be named. "The political uncertainty remains with the delay in announcing the elections."

President Maithripala Sirisena's government has said it would dissolve parliament once some crucial reforms, including an electoral bill, are passed, but has yet to fix a date for the election.

Monday's turnover was 730.8 million rupees ($5.45 million), well below this year's daily average of about 1.1 billion rupees.

The market saw net foreign inflows of 119.8 million rupees ($894,000), but the previous 14 sessions have seen net foreign outflows from equities at 2.28 billion rupees. The bourse, however, has seen net inflows of 3.66 billion rupees into equities so far this year.

Analysts said foreign investors have been selling shares amid expectations the U.S. would hike key interest rates sooner than expected.

Shares in leading mobile phone operator Dialog Axiata Plc rose 2.7 percent, while No.1 fixed-line phone operator Sri Lanka Telecom Plc rose 0.67 percent. 

($1 = 134.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

Sri Lanka's Maharaja group to be awarded satellite pay TV license

COLOMBO (EconomyNext) - MTV Channel (Pvt) Ltd, a terrestrial broadcaster which is a unit of Sri Lanka's Maharaja group will be awarded a direct-to-home satellite licence, the island's telecom regulator has said, as the industry is going through technological changes.

The Telecommunications Regulatory Commission of Sri Lanka said in a public notice that it is considering recommending to the President of Sri Lanka to issue a DTH license to MTV Channel for five years.

The public could make representation or objections before July 12.

Sri Lanka's Dialog Axiata group is now the considered the market leader for pay TV, with a 452,000 subscriber base which grew 36 percent in the year to March 2014.

The firm said it had 77 percent market share and penetration was only 15 percent.

Dialog TV mostly has international content, but MTV Channel is a domestic content production company.

PEO TV, a unit of Sri Lanka Telecom, uses its wireline network to offer a pay TV service.

DTH firms based in India could also be viewed in Sri Lanka, providing some cross-border competition.

Though many countries have tried to restrict their citizens' freedom to access cross-border content, newer technological innovations by private industry are reducing ruler or 'sovereign' control.

Pay TV known as 'cable' is coming under increasing pressure from cross-border internet based television.

Cable originally started in the US, as an innovation to remote or mountainous areas that could not easily be reached by terrestrial broadcasters.