Sri Lankan rupee hits record low as political turmoil mounts

Reuters: ** The Sri Lankan rupee slumped to a record low on Tuesday as escalating political turmoil sparked buying of U.S. dollars by importers. Stocks climbed for a third straight session to hit a nearly six-week closing high on retail investor buying, but foreign investors exited after President Maithripala Sirisena sacked the prime minister unexpectedly and swore in the ex-president.

** The rupee dropped to a record low of 174.75 per dollar on Tuesday, surpassing the previous record low of 174.30 hit on Monday.

** The rupee ended at 174.60/80 per dollar on Tuesday, compared with previous close of 173.75/90. 

** The rupee weakened 3 percent so far this month after a 4.7 percent drop in September against the dollar. It dropped 13.5 percent so far this year.

** Sri Lankan opposition leader Mahinda Rajapaksa was appointed prime minister on Friday after President Sirisena dismissed the incumbent in a surprise move that threatens political turmoil in the South Asian country. As president, the pro-China Rajapaksa ushered in billions of dollars of investment from Beijing to help rebuild the country following the end of a 26-year-long civil war against Tamil separatists in 2009. 

** The Colombo stock index ended 0.34 percent firmer at 5,964.32, its highest close since Sept. 19. The bourse shed 3.6 percent last month, and slipped 6.4 percent so far this year.

** Analysts said retail investors, who have stayed away from the market during a number of investigations against market manipulation that allegedly occurred under the previous government, actively bargain-hunted after the president’s announcement. 

** Data from the central bank showed that foreign investors sold government securities worth a net 3.3 billion rupees ($30.7 million) in the week ended Oct. 17. Sri Lanka has seen a net outflow of 85.9 billion rupees in securities so far this year. 

** Stock market turnover was 981.4 million rupees ($5.64 million) on Tuesday, more than this year’s daily average of 786.4 million rupees. 

** Foreign investors were net sellers of shares worth 155.3 million rupees on Tuesday, extending the year-to-date net foreign outflow to 12.7 billion rupees worth of equities.

($1 = 174.1000 Sri Lankan rupees) 

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

Sri Lankan rupee hits record low amid political crisis; stocks at 6-week high

Reuters: ** The Sri Lankan rupee slumped to a record low on Monday as growing political turmoil sparked buying of U.S. dollars by importers. Stocks hit a nearly six-week closing high on retail investor buying, but foreign investors exited after President Maithripala Sirisena sacked the prime minister unexpectedly and swore in the ex-president.

** The rupee dropped to a record low of 174.30 per dollar on Monday, surpassing the earlier record of 173.08 hit on Friday. 

** The rupee ended at 173.75/90 per dollar on Monday, compared with its previous close of 173.05/20. 

** The rupee weakened 2.8 percent so far this month after a 4.7 percent drop in September against the dollar. It dropped 13.2 percent so far this year.

** Sri Lankan opposition leader Mahinda Rajapaksa was appointed prime minister on Friday after President Maithripala Sirisena dismissed the incumbent in a surprise move that threatens political turmoil in the South Asian country. As president, the pro-China Rajapaksa ushered in billions of dollars of investment from Beijing to help rebuild the country following the end of a 26-year-long civil war against Tamil separatists in 2009. 

** The Colombo stock index ended up 1.9 percent at 5,944.18, its highest close since Sept. 19. It shed 3.6 percent last month and has lost 6.7 percent so far this year.


** Analysts said retail investors, who have stayed away from the market during a number of investigations against market manipulation that allegedly occurred under the previous government, actively bargain-hunted after the president’s announcement. 

 ** Data from the central bank showed foreign investors sold government securities worth a net 3.3 billion rupees ($30.7 million) in the week ended Oct. 17. Sri Lanka has seen a net outflow of 85.9 billion rupees in securities so far this year. 

** Stock market turnover was 4.2 billion rupees ($24.18 million) on Monday, more than five times this year’s daily average of 785.4 million rupees. 

** Foreign investors were net sellers of shares worth 3.1 billion rupees on Monday, worst outflow since March 28 and extending the year-to-date net foreign outflow to 12.5 billion rupees worth of equities.

** Shares in Distillers Company of Sri Lanka Plc ended 5.9 percent higher. Commercial Bank of Ceylon Plc closed up 3.4 percent, Hemas Holdings Plc closed 7.1 percent higher and conglomerate John Keells Holdings Plc ended 1.3 percent higher. 

($1 = 173.7000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez: editing by Sherry Jacob-Phillips, Larry King)

Sri Lankan rupee hits record low; stocks at 2-week closing high

Reuters : ** The Sri Lankan rupee touched a record low on Friday as banks and importers purchased U.S. dollar, while stocks climbed 1.1 percent to a two-week closing high but foreign investors’ exit from the island nation’s risky assets weighed on sentiment.

** The rupee dropped to an all-time low of 173.08 per dollar on Friday, surpassing its previous record low of 173.00 hit on Tuesday. 

** The rupee ended at 173.05/20 per dollar on Friday, compared with its previous close of 172.80/90. 

** The rupee weakened 2.1 percent so far this month after a 4.7 percent drop in September against the dollar. It dropped 12.52 percent so far this year.

** The Colombo stock index ended 1.1 percent firmer at 5,831.96, its highest close since Oct. 11. It shed 3.6 percent last month, and lost 8.4 percent so far this year.

** Data from the central bank showed foreign investors sold government securities worth a net 5.3 billion rupees ($30.7 million) in the week ended Oct. 17. Sri Lanka has seen a net outflow of 85.9 billion rupees in securities so far this year.

** Stock market turnover was 1.6 billion rupees ($9.27 million) on Friday, more than double of this year’s daily average of 768.2 million rupees.

** Foreign investors were net sellers of shares worth 48.3 million rupees on Friday, extending the year-to-date net foreign outflow to 9.5 billion rupees worth of equities.

** Shares in conglomerate John Keells Holdings Plc ended 3.4 percent higher, while Hatton National Bank Plc closed up 1.6 percent, Sampath Bank Plc ended 4.2 percent firmer and the biggest listed lender Commercial Bank Plc ended 2.3 percent up.

($1 = 172.6000 Sri Lankan rupees) 

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

Sri Lankan rupee closes near record low; stocks steady

Reuters: ** The Sri Lankan rupee closed on Thursday near a record low hit earlier this week as banks and importers purchased the dollar, while stocks closed flat with higher turnover.

** The rupee ended at 172.80/90 per dollar on Thursday, compared with its previous close of 172.60/70.

** The rupee dropped to an all-time low of 173.00 per dollar on Tuesday, surpassing its previous low of 172.50 hit on Monday.

** The central bank surprised financial markets on Oct. 2 by leaving its key policy rates unchanged despite heavy pressure on the rupee and foreign outflows from government securities.

** The rupee has weakened 2.1 percent so far this month after a 4.7 percent drop in September against the dollar. It dropped 12.45 percent so far this year.

** The Colombo stock index ended 0.03 percent weaker at 5,768.54. It shed 3.6 percent last month, and lost 9.4 percent so far this year.

** Data from the central bank showed foreign investors sold government securities worth a net 5.3 billion rupees ($30.7 million) in the week ended Oct. 17. Sri Lanka has seen a net outflow of 85.9 billion rupees in securities so far this year.

** Stock market turnover was 1.26 billion rupees ($7.30 million) on Thursday, more than this year’s daily average of 764.6 million rupees.

** Foreign investors were net sellers of shares worth 277.5 million rupees on Thursday, extending the year-to-date net foreign outflow to 9.4 billion rupees worth of equities.

($1 = 172.5000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Amrutha Gayathri)

Sri Lankan rupee hits record low; stocks edge higher

Reuters: ** The Sri Lankan rupee hit an all-time low for a third straight session on Tuesday as banks and importers purchased the U.S. dollar despite the central bank’s intervention to prevent the fall, while stocks edged higher.

** The rupee dropped to an all-time low of 173.00 per dollar, surpassing its previous low of 172.50 hit on Monday, mainly due to importer demand for the greenback, market sources said.

** The rupee ended at 172.60/70 per dollar, compared with its previous close of 172.40/60. The central bank intervened to prevent further fall after it hit 173.00, market sources said. Central bank officials were not immediately available for comment. 

** The central bank surprised financial markets on Oct. 2 by leaving its key policy rates unchanged despite heavy pressure on the rupee and foreign outflows from government securities.

** The rupee has weakened 2 percent so far this month after a 4.7 percent drop in September against the dollar. It dropped 12.4 percent so far this year.

** The Colombo stock index ended 0.08 percent firmer at 5,770.52, further moving away from its lowest close since Nov. 28, 2013 hit on Friday. It shed 3.6 percent last month, and lost 9.4 percent so far this year.

** Data from the central bank showed foreign investors sold government securities worth a net 5.3 billion rupees ($30.7 million) in the week ended Oct. 17. Sri Lanka has seen a net outflow of 85.9 billion rupees in securities so far this year.

** Stock market turnover was 201 million rupees ($1.17 million) on Tuesday, nearly a quarter of this year’s daily average of 761.1 million rupees.

** Foreign investors were net sellers of shares worth 59.3 million rupees on Tuesday, extending the year-to-date net foreign outflow to 9.1 billion rupees worth of equities.

($1 = 172.4000 Sri Lankan rupees) 

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

Sri Lankan rupee at record low; stocks up from near 5-yr closing trough

Reuters: ** The Sri Lankan rupee hit a record low on Monday as banks and importers purchased the U.S. dollar, while stocks edge up from their nearly five-year closing low hit in the previous session.

** The rupee dropped 0.4 percent to an all-time low of 172.50 per dollar, surpassing its previous low of 171.80 hit on Friday, mainly due to importer demand for the greenback, market sources said.

** The rupee ended at 172.40/60 per dollar, compared with its previous close of 171.60/80.

** Sri Lanka has selected China Development Bank for an eight-year $1 billion syndicated loan, the South Asian country’s central bank said.

** The central bank surprised financial markets on Oct. 2 by leaving its key policy rates unchanged despite heavy pressure on the rupee and foreign outflows from government securities.

** The rupee has weakened 2 percent so far this month after a 4.7 percent drop in September against the dollar. It dropped 12.4 percent so far this year.

** The Colombo stock index ended 0.09 percent firmer at 5,766.00, edging up from its lowest close since Nov. 28, 2013 hit on Friday. It shed 3.6 percent last month, and lost 9.6 percent so far this year.

** Data from the central bank showed foreign investors sold government securities worth a net 5.3 billion rupees ($30.7 million) in the week ended Oct. 17. Sri Lanka has seen a net outflow of 85.9 billion rupees in securities so far this year.

** Stock market turnover was 214.1 million rupees ($1.24 million) on Monday, less than a third of this year’s daily average of 765 million rupees.

** Foreign investors were net sellers of 59.3 million rupees worth of shares on Monday, extending the year-to-date net foreign outflow to 9.1 billion rupees worth of equities.

($1 = 172.4000 Sri Lankan rupees) 

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

Sri Lanka's Lion Brewery regrets leaving Indian market

ECONOMYNEXT - Sri Lanka's Lion Brewery regrets leaving the Indian beer market to focus on its home market, a senior company official said, noting that many local firms are reluctant to risk venturing overseas and fear foreign competition.

Suresh Shah, Executive Director of the Lion Brewery (Ceylon) Ltd., said they understood the risks and complexities of the Indian market when they entered, but withdrew to give priority to investments to grow the home market, recovering after the ethnic war.

The Carson Cumberbatch controlled Lion Brewery withdrew from the Indian beer market in May 2011 having ventured into it in partnership with Carlsberg South Asia Pte Limited. It sold its stake to Carlsberg for 2.1 billion rupees.

“We know it is tough to do business in our region,” Shah told a World Bank forum to launch its new report on regional trade in South Asia which highlights the lack of intra-regional trade and investment.

“We understood the complexity of doing business in India. If we wanted the rewards of a very large market we had to face it. You go in knowing the risks and challenges,” Shah said.

Shah said they went into India knowing the alcohol business in India was extremely complex, more than elsewhere, and would take lot of money to succeed.

“Unfortunately, entering the Indian market involved a lot of cash upfront. We needed to expand capacity in Sri Lanka. So we took the call that we had to first protect the home market. That’s why we got out of it. We will regret it.”

Venturing into overseas markets required taking risks and staying power which many Sri Lankan firms appeared reluctant to do, Shah said.

He noted how global multinationals went into the big Chinese market although the Chinese governing system was very different to their own and markets also complex.

“Everyone who wanted to be big on a global scale are all in China,” Shah said. “A lot of them made losses and are still making losses.

“Nevertheless, they take that risk wanting to be known as global players. A lot of it is also in the mindset.”

Asked if it was apathy on the part of Sri Lanka’s private sector that so few had ventured overseas, Shah replied: “Of course it is. When you can make 100 rupees in Sri Lanka versus making 25 rupees somewhere else, 100 rupees is easy for the making here.

”If you want to take your business overseas you’ve got to be competitive and productive. Many Sri Lankan businesses are unfortunately neither productive nor competitive because we don’t face competition. Sri Lankan businesses need to be competitive for which we need to open our markets. We need to liberalise.”