Sri Lankan rupee ends slightly weaker on economic woes

Reuters: ** The Sri Lankan rupee closed marginally weaker on Thursday as investors dumped rupee-denominated assets on a credit rating downgrade and a delay in an IMF loan discussion in the wake of a political crisis. 

** The rupee hit a record low of 180.85 per dollar on Wednesday, surpassing its previous low of 180.50 hit on Tuesday.

** It ended at 179.70/180.00 per dollar on Thursday, compared with 179.50/90 in the previous session. It has weakened around 3.7 percent since the political crisis began on Oct. 26 and 17 percent so far this year.

** Moody’s downgraded Sri Lanka last week for the first time since it started rating the country in 2010, blaming the political turmoil for aggravating its already problematic finances.

** The downgrade coincided with a decision by the International Monetary Fund to delay discussions on its loan tranche to Sri Lanka.

** The political standoff took another turn on Thursday as the parliament cut the budget of the Prime Minister’s office, a move designed to hinder disputed premier Mahinda Rajapaksa whose supporters boycotted the vote in the latest twist in a weeks-long political stalemate.

** The new government has not been recognised by any foreign countries because they have not proven their parliament majority. 

** The political paralysis remains the main concern of investors. While Rajapaksa and President Maithripala Sirisena have failed to win support in parliament for their new government, the deposed prime minister Ranil Wickremesinghe’s coalition, which claims it does have majority support in parliament, has not been allowed to try to form a government.

** The political impasse could be set to drag on longer after President Sirisena said on Sunday he would not reinstate Wickremesinghe as prime minister even if he was able to prove his majority in parliament.

** The central bank on Nov. 14 unexpectedly raised its main interest rates to defend the rupee, which has faltered as foreign capital outflows pick up due to the domestic crisis as well as rising U.S. interest rates.

** Foreigners sold a net 143.1 million rupees ($797,214.5) worth of stocks on Thursday, and they have been net sellers of 8.2 billion rupees since the political crisis started on Oct. 26. The bond market saw outflows of about 29 billion rupees between Oct. 25 and Nov. 21, central bank data showed.

** This year, there have been 17.7 billion rupees of outflows from stocks and 118.8 billion rupees from government securities, the latest data from the bourse and central bank data showed.

** Five-year government bond yields have risen 60 basis points since the crisis unfolded on Oct. 26.

** The Colombo stock index rose 0.19 percent to 5,992.70 on Thursday. It declined 0.41 percent last week following a 0.39 percent fall the previous week. It has fallen 5.9 percent so far this year.

** Stock market turnover was 745.9 million rupees on Thursday, less than this year’s daily average of 831.2 million rupees. 

($1 = 179.5000 Sri Lankan rupees) 

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

Sri Lankan rupee hits lows on political uncertainty; ends higher on bank dlr sales

Reuters: ** The Sri Lankan rupee hit a record low for a sixth straight session on Wednesday as investors dumped rupee-denominated assets after a credit rating downgrade and a delay in an IMF loan discussion in the wake of a political crisis. 

** It ended firmer due to central bank greenback selling to prop up the currency. 

** The rupee hit a fresh low of 180.85 per dollar, surpassing its previous low of 180.50 hit on Tuesday. It ended at 180.50/90 per dollar on Wednesday, compared with 180.40/90 in the previous session. It has weakened around 3.6 percent since the political crisis began on Oct. 26 and 17 percent so far this year.

** Moody’s downgraded Sri Lanka last week for the first time since it started rating the country in 2010, blaming the political turmoil for aggravating its already problematic finances.

** The downgrade coincided with a decision by the International Monetary Fund to delay discussions on its loan tranche to Sri Lanka.

** The political standoff took another turn on Friday when the lawmakers who back the disputed prime minister, Mahinda Rajapaksa - who has refused to resign despite losing two confidence votes in parliament - walked out of the chamber in the face of another defeat there.

** On Monday, lawmakers who back Rajapaksa boycotted the parliament session. Rajapaksa and the new government have not been recognised by any foreign countries because they have not proven their parliament majority. 

** The political paralysis remains the main concern of investors. While Rajapaksa and President Maithripala Sirisena have failed to win support in parliament for their new government, the deposed prime minister Ranil Wickremesinghe’s coalition, which claims it does have majority support in parliament, has not been allowed to try to form a government.

** The political impasse could be set to drag on longer after President Sirisena said on Sunday he would not reinstate Wickremesinghe as prime minister even if he was able to prove his majority in parliament.

** The central bank on Nov. 14 unexpectedly raised its main interest rates to defend the rupee, which has faltered as foreign capital outflows pick up due to the domestic crisis as well as rising U.S. interest rates.

** Foreigners sold a net 201.9 million rupees ($1.13 million) worth of stocks on Tuesday, and they have been net sellers of 7.9 billion rupees since the political crisis started on Oct. 26. The bond market saw outflows of about 29 billion rupees between Oct. 25 and Nov. 21, central bank data showed.

** This year, there have been 17.3 billion rupees of outflows from stocks and 118.8 billion rupees from government securities, the latest data from the bourse and central bank data showed.

** Five-year government bond yields have risen 70 basis points since the crisis unfolded on Oct. 26.

** The Colombo stock index rose 0.16 percent to 5,981.16 on Wednesday. It declined 0.41 percent last week following a 0.39 percent fall previous week. It has fallen 6.1 percent so far this year.

** Stock market turnover was 409.3 million rupees on Wednesday, less than half of this year’s daily average of 831.6 million rupees.

($1 = 179.4000 Sri Lankan rupees) 

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

Sri Lankan rupee hits record low on political uncertainty, economic woes

Reuters: ** The Sri Lankan rupee hit a record low for a fifth straight session on Tuesday, as investors dumped currency-denominated assets following a credit rating downgrade and a delay in an IMF loan discussion in the wake of a political crisis. 

** The rupee hit a fresh low of 180.50 per dollar, surpassing its previous low of 180.40 hit on Monday.

** Moody’s downgraded Sri Lanka last Tuesday for the first time since it started rating the country in 2010, blaming the political turmoil for aggravating its already problematic finances.

** The downgrade coincided with a decision by the International Monetary Fund to delay discussions on its loan tranche to Sri Lanka.

** The political standoff took another turn on Friday when the lawmakers who back the disputed prime minister, Mahinda Rajapaksa - who has refused to resign despite losing two confidence votes in parliament - walked out of the chamber in the face of another defeat there.

** On Monday, lawmakers who back Rajapaksa boycotted the parliament session. Rajapaksa and the new government have not been recognised by any foreign countries because they have not proven their parliament majority. 

** The political paralysis remains the main concern of investors. While Rajapaksa and President Maithripala Sirisena have failed to win support in parliament for their new government, the deposed prime minister Ranil Wickremesinghe’s coalition, which claims it does have majority support in parliament, has not been allowed to try to form a government.

** The political impasse could be set to drag on longer after President Sirisena said on Sunday he would not reinstate Wickremesinghe as prime minister even if he was able to prove his majority in parliament.

** The central bank on Nov. 14 unexpectedly raised its main interest rates to defend the rupee, which has faltered as foreign capital outflows pick up due to the domestic crisis as well as rising U.S. interest rates.

** The rupee ended at 180.40/90 per dollar on Tuesday, compared with 180.20/40 in the previous session. The decline was limited due to moral suasion by the central bank. It has weakened around 4 percent since the political crisis began on Oct. 26 and more than 17.3 percent so far this year.

** Foreigners sold a net 52.9 million rupees ($293,725.71) worth of stocks on Tuesday, and they have been net sellers of 7.9 billion rupees since the political crisis started on Oct. 26. The bond market saw outflows of about 29 billion rupees between Oct. 25 and Nov. 21, central bank data showed.

** This year, there have been 17.3 billion rupees of outflows from stocks and 118.8 billion rupees from government securities, the latest data from the bourse and central bank data showed.

** Five-year government bond yields have risen 85 basis points since the crisis unfolded on Oct 26.

** The Colombo stock index rose 0.48 percent to 5,971.41 on Tuesday. It declined 0.41 percent last week following a 0.39 percent fall previous week. It has fallen 6.3 percent so far this year.

** Stock market turnover was 460.8 million rupees on Tuesday, less than this year’s daily average of 833.6 million rupees. 

($1 = 180.1000 Sri Lankan rupees) 

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

Sri Lankan rupee hits record low on political uncertainty, economic woes

Reuters: ** The Sri Lankan rupee hit a record low for a fourth straight session on Monday, as investors dumped currency-denominated assets following a credit rating downgrade and a delay in an IMF loan discussion in the wake of a political crisis.

** The rupee hit a fresh low of 180.40 per dollar on Monday, surpassing its previous low of 179.95 hit on Friday.

** Moody’s downgraded Sri Lanka on Tuesday for the first time since it started rating the country in 2010, blaming the political turmoil for aggravating its already problematic finances.

** The downgrade coincided with a decision by the International Monetary Fund to delay discussions on its loan tranche to Sri Lanka.

** The political standoff took another turn on Friday when the lawmakers who back the newly appointed prime minister, Mahinda Rajapaksa - who has refused to resign despite losing two confidence votes in parliament - walked out of the chamber in the face of another defeat there.

** The political paralysis remains the main concern of investors. While Rajapaksa and President Maithripala Sirisena have failed to win support in parliament for their new government, the deposed prime minister Ranil Wickremesinghe’s coalition, which claims it does have majority support in parliament, has not been allowed to try to form a government.

** The political impasse could be set to drag on longer after President Sirisena said on Sunday he would not reinstate Wickremesinghe as prime minister even if he was able to prove his majority in parliament.

** The central bank on Nov. 14 unexpectedly raised its main interest rates to defend the rupee, which has faltered as foreign capital outflows pick up due to the domestic crisis as well as rising U.S. interest rates.

** The rupee ended at 180.20/40 per dollar on Monday, compared with 179.90/180.40 in the previous session. It has weakened around 4 percent since the political crisis began on Oct. 26 and more than 17.3 percent so far this year.

** Foreigners bought a net 17.1 million rupees ($95,000) worth of stocks on Monday, but they have been net sellers of 7.9 billion rupees since the political crisis started on Oct. 26. The bond market saw outflows of about 29 billion rupees between Oct. 25 and Nov. 21, central bank data showed.

** This year, there have been 17.3 billion rupees of outflows from stocks and 118.8 billion rupees from government securities, the latest data from the bourse and central bank data showed.

** Five-year government bond yields rose about 45 basis points on Monday.

** The Colombo stock index rose 0.22 percent to 5,943.07 on Monday. It declined 0.41 percent last week following a 0.39 percent fall previous week. It has fallen 6.7 percent so far this year.

** Stock market turnover was 736.7 million rupees on Monday, less than this year’s daily average of 835.3 million rupees. 

($1 = 180.0000 Sri Lankan rupees) 

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

Sri Lankan rupee hits record low on Moody's downgrade, political uncertainty

Reuters: ** The Sri Lankan rupee fell to an all-time low of 179.95 per dollar on Friday, as Moody’s downgrade of the country’s credit rating in the wake of a political crisis saw more investors dump rupee-denominated assets.

** Moody’s downgraded Sri Lanka on Tuesday for the first time since it started rating the country in 2010, blaming the political crisis for aggravating already problematic finances.

** The downgrade coincided with a decision by the International Monetary Fund to delay discussions on its loan tranche to Sri Lanka.

** Sri Lanka’s political crisis took another turn on Friday as all the lawmakers backing newly appointed prime minister Mahinda Rajapaksa, who has refused to resign despite losing two confidence votes in the parliament, walked out the parliament in the face of another defeat in a parliament vote.

** The political uncertainty remained the main concern of investors due to failure of Rajapaksa and President Maithripala Sirisena in obtaining the parliament majority for their new government, while deposed prime minister Ranil Wickremesinghe’s coalition, which claims it has the parliament majority, is denied an opportunity of forming a government.

** The central bank last week unexpectedly raised its key policy rates, in a move aimed at defending a faltering rupee as foreign capital outflows pick up amid an escalating political crisis and rising U.S. interest rates.

** The rupee hit a fresh low of 179.95 per dollar on Friday, surpassing its previous low of 179.00 hit on Wednesday. Sri Lanka’s markets were closed on Thursday for a holiday.


** The currency ended at 179.90/180.40 per dollar on Friday, compared with 178.70/179.20 in the previous session. It has weakened more than 3.8 percent since the political crisis began on Oct. 26 and more than 17 percent so far this year.

** Foreigners sold a net 51.4 million rupees ($286,511) worth of stocks on Wednesday, extending the outflow worth 7.8 billion rupees since the political crisis started on Oct. 26.

** The bond market saw outflows of about 22.9 billion rupees between Oct. 25 and Nov. 14, central bank data showed. This year, there have been 17.3 billion rupees of outflows from stocks and 112.8 billion rupees from government securities, bourse and central bank data showed.

** The 5-year bond yields have risen about 45 basis points since the political crisis unfolded.


** The Colombo stock index fell 0.34 percent to 5,929.98 on Friday. It declined 0.41 percent this week following a 0.39 percent fall last week. It has fallen 6.9 percent so far this year.

** Stock market turnover was 580.8 million rupees on Friday, less than this year’s daily average of 835.8 million rupees. 

($1 = 179.4000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lanka's Hatton Plantations makes Rs79mn loss in Sept quarter

ECONOMYNEXT - Sri Lanka's Hatton Plantations, which operates the tea business spun off from Watawala Plantations, reported a net loss of 79 million rupees in the September 2018 quarter.

The firm, which debuted on the Colombo Stock Exchange in February 2018, has sales of 756 million rupees in the quarter, according to interim results filed with the stock exchange.

The quarterly loss per share was 33 cents. Hatton Plantations had a loss per share of 10 cents in the six months to September 2018 with a net loss of 24 million rupees.

The stock last traded at 6.80 rupees Monday.

Before the separation of its tea business, Watawala Plantations had made a net profit of 366 million rupees in the September 2017 quarter with its tea business having a net profit of 76 million rupees.

Hatton Plantations is the segregated upcountry tea businesses of Watawala Plantations, with 17 tea estates and 11 processing factories.

Vish Govindasamy, Managing Director of Hatton Plantations, said its half-yearly performance was lower than expected.

“The loss is mainly due to the substantial reduction in crop and the drop in tea market, which resulted in reduced Net Sales Averages (NSA) achieved at the tea auctions in comparison to the previous year,” he said.

Other contributory factors were less number of day light hours as a result of the highest rain fall recorded in the last 10 years, issues relating to minimum residual levels (MRL) due to unavailability of weedicide, and drop in demand from Middle East, Russia and former Soviet Union countries.

The depreciation of the Sri Lanka rupee has had both positive and negative effects for the tea industry, Govindasamy said.

“Despite the challenges, HPL will continue to focus on quality with balanced nutrient intake to harness the best in quality parameters,” he said.

“Good agricultural practices put in place would ensure the retention of the tea plant’s liquoring characteristics together with its flavour and quality.”

Govindasamy said the crop at the beginning of the third quarter of the 2019 financial year has been in line with expectations.

Sri Lanka construction firm MTD Walkers sustains Rs1bn loss in Sept quarter

ECONOMYNEXT - Losses at Sri Lanka's MTD Walkers were flat from a year earlier at 1.1 billion rupees in the September 2018 quarter with falling revenue and rising finance expenses offsetting declining costs, interim accounts showed.

The construction firm reported a loss of 6.55 rupees a share in the quarter. In the six months to end September 2018, losses were 10.27 a share on a loss of 1.7 billion rupees, a 4 percent increase from the previous year, financial statements filed with the Colombo Stock Exchange showed.

MTD Walkers was trading 80 cents lower at 12.20 rupees Wednesday.

In the quarter, revenue fell 20 percent from a year earlier to 3.01 billion rupees, and cost of sales fell 26 percent to 3.02 billion rupees leading to gross loss declining 97 percent to 8.8 million rupees.

Other income rose 89 percent to 35.9 million rupees.

Administrative costs fell 23 percent to 295.9 million rupees and sales expenses declined 65 percent to 9.6 million rupees.

Net interest cost increased 80 percent to 1.1 billion rupees. Borrowings were 27.6 billion rupees at end September 2018, up 12 percent from a year earlier.

Retained losses in the company's balance sheet surged 413 percent from a year earlier to 4.1 billion rupees with shareholder funds attributed to equity holders falling 54 percent to 2.8 billion rupees.

Total assets amounted to 44.7 billion rupees, up 2 percent from a year earlier.

Segment results reported by MTD Walkers for the nine months to end September 2018 (despite P&L covering the quarter and six months) showed losses from construction deepening 4 percent from a year earlier to 1.7 billion rupees.

Losses from infrastructure construction increased 10 percent to 11 million rupees.

Earnings from trading fell a sharp 184 percent to 29.5 million rupees and marine engineering profits declined 56 percent to 10.5 million rupees.

Real estate profits fell 84 percent to 43 million rupees.

Losses from power generation fell 25 percent to 40 million rupees.