Sri Lanka Newspapers - 06/01/2012

UK keen on Sri Lanka’s booming tourism sector
* Visiting British MP says govt should tell Diaspora that investments would be safe

British investors are keen on investing in Sri Lanka’s new phase. They are specifically eyeing Sri Lanka’s tourism sector. Meanwhile, Sri Lanka invites strong business and industry delegations from UK to Sri Lanka Expo 2012 show, the Ministry of Industry and Commerce said.

"Sri Lanka’s tourism sector is very promising with good potential," said James Wharton, the visiting British MP. Wharton was paying a courtesy call on Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka on Tuesday January 03. Accompanying Wharton was his Political Advisor, Chris Duggan.

"I believe that prospects in Sri Lanka Tourism are very high. We had discussions on Sri Lanka tourism in London among us, especially on improving Sri Lanka’s image in the UK," Wharton said.

Minister Bathiudeen responded: "British investors are invited to invest in our tourism, agro, infrastructure, and industries. A shortfall of hotel rooms while a tourism boom takes place open opportunities for British construction firms here. Also, using Sri Lanka as a base, they can export to India by taking advantage of the Indo-Lanka Free Trade Agreement. More than 4000 product lines are now open for British investors under Indo-Lanka FTA."

"Sri Lanka’s IT sector has very high potential along with strong capacity for BPO and KPOs. The BPO sector is open for high value addition process. Sri Lanka is also becoming a strong logistical and a maritime hub.

According to the Department of Commerce of Sri Lanka, Sri Lanka’s trade with UK has recorded a considerable increased during the years 2001-2008. The value of total trade between the two countries registered at US $ 1287.3 Mn in 2010, increased by 0.8% over the previous year. The trade balance between the two countries has been in favour of Sri Lanka during last 10 years, mainly due to increase in the exports of textile and apparel to UK on zero duty under the GSP Plus arrangements. Among major Sri Lankan exports to UK are apparel and clothing accessories, fish fillet and fish meat fresh, chilled or frozen, bicycles, food preparations, tea and gloves. Fresh and frozen fish from Sri Lanka to the UK is a new export trend and it increased by 3.5% in 2010 over 2009. Sri Lanka’s total exports to UK stood at $ 947.59 Mn in 2010.

Wharton said Sri Lanka should send the message to the diaspora that if they invest here, their investments will be secure. "This will give a positive sign for British investors looking to invest here."

British companies have invested in Sri Lanka in diverse areas such as textiles, garments and accessories, electronic products, security printing, tourism, infrastructure development, rubber based products, activated carbon, prawn farming, agriculture, food processing, computer software development and data entry services, business, financial and educational services. Leading British based companies in Sri Lanka are Unilever, British tobacco, Glaxo Limited, Smith Kline Beecham, Brook Bonds/Lipton, Lloyds of London, Courtaulds Textile plc, Oxley threads, Coats Viyella, Marks & Spencer, P & O Navigation Company, and Thomas de La Rue.

Rishad Bathiudeen, Minister of Industry and Commerce (centre) greets James Wharton, the visiting British MP on 03 January at the Ministry of Industry and Commerce, Colombo 03 as Chris Duggan, Political Advisor to Wharton (left), looks on.


http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=42569

Ghost of 2011 haunts trillion rupee EPF
* Proposed amendments could bring bank controversial pensions Scheme, says opposition but govt. removes the controversial clause
* Changes to EPF Act to finance 30-storeyed administration building
* No EPF Annual Report for 2010
* Opposition waiting to grill Central Bank on insider trading, market manipulation

This file picture taken last year shows an armed trooper standing guard as factory workers enter the Katunayaka Free Trade Zone after a controversial pensions bill brought in by the government caused unrest as workers agitated against it mid 2011. Police and protestors clashed and a gun shot wound killed a factory worker. Nearly six months since, the government has again caused unwanted anxiety with proposed amendments to the EPF.

Opposition law makers urged the government to defer proposed amendments to the Employees’ Provident Fund (EPF) Act in order to allow broader stakeholder consultation warning that the controversial Private Sector Pensions scheme, although shelved, was still in the order book of the Parliament, and that the proposed amendments to the EPF Act could give life to this scheme.

The EPF is valued at Rs. 1.01 trillion and recorded a 12.3 percent rate of return in 2011, according to Central Bank estimates.

Labour Secretary W. J. L. U. Wijayaweera speaking to The Island Financial Review yesterday evening (Jan. 05) said the amendment to the Act would be presented to Parliament on January 18, however, a controversial clause included in it giving the Commissioner General of Labour powers to set up a pensions and/or insurance scheme, has been removed, although they were to be voluntary schemes.

"The National Labour Advisory Council (representing government, employees and worker unions) was unanimous that this clause needed more attention, so a decision was taken to remove this clause from the amendments to be presented on January 18. It would be dealt with later," he said adding that the remaining clauses would remain.

The government last year brought in the Private Sector Pensions Scheme Act in secret, hoping to bulldoze its way in parliament, but stiff opposition from worker groups and certain employers and riots at a free trade zone which saw police open fire on protestors killing one, forced the government to shelve the Act. The reputation of the government took a hit and was heavily criticised for not consulting the people.

However, Opposition lawmaker Dr. Harsha De Silva says the proposed Act has not been taken off the order books, implying that there was a real chance for it to be presented again.

He pointed out that according to the amendments to the EPF Act, a pensions and insurance scheme could be established with the EPF funds if the Commissioner General if the need arose for the benefit of the people. This was an attempt to bring back the Act that the government was forced to shelve last year.

Dr. De Silva also questioned the authority of the Labour Ministry for presenting amendments to EPF Act because the proposed amendments (see below) dealt with managing the fund which was the purview of the Central Bank, which came under the Ministry of Finance and Planning.

"It is the Central Bank that decides how the fund is utilised, not the Ministry of Labour, so this is clearly an attempt to bring in the controversial pensions scheme through the back door once again. We are not opposed to a pension scheme for the private sector, but there has to be broader consultation and the National Labour Advisory Council has to give its approval. We urge the government to defer the amendments until this has happened. We can discuss other matters on January 18, and at least for the sake of the worker who lost his life opposing the controversial bill last year, postpone the presentation of amendments to EPF," Dr. De Silva said.

There are eight proposed amendments to the EPF and Dr. De Silva, also the economic spokesman for the deleted, said not all the proposals were bad. Apart from clause regarding the pension and insurance scheme, he lashed out at another clause which gave the Ministry of Labour powers to utilise the EPF to construct a 30-storeyed administrative building.

"The EPF is the hard earned money of the working people! So how can it be to their benefit if the government is going to use monies lying in the fund to construct an administrative building? This is an attempt to rob the people and they have not been consulted about this," Dr. De Silva lashed out.

Wijayaweera, however, told The Island Financial Review that the NLAC had not opposed this particular proposed amendment.

Dr. De Silva criticised the Central Bank for not publishing the Annual Report of the EPF for the year 2010.

"This should have been presented to parliament before March 31, 2010, but twelve months have gone by and still no annual report. I can understand if was the Cashew Corporation, but we are talking about the biggest fund in the country, one trillion rupees, this says a lot about good governance," Dr. De Silva said.

"Prepare the Annual Report, present it to parliament and answer all the questions we have on insider trading and market manipulation," he told the Central Bank.

The Central Bank has been defending its decision to invest EPF monies in banking stocks but analysts point out that there was a huge conflict of interest, because the bank was the regulator of the banking industry and is privy to information not known to the public.

The proposed amendments to the EPF Act....

An Act to amend the Employees’ Provident Fund Act No. 15 of 1958

Be it enacted by the Parliament -of the Democratic Socialist Republic of Sri Lanka as fellows,:

1. This Act may be cited as the Employees’ Provident Fund (Amendment) Act, No. of 2011.

2. Section 3 of the Employees’ Provident Fund Act, No 15 of 1958, (hereinafter ‘referred to as the "principal enactment") is hereby amended by the insertion immediately after subsection (1) of that section, of the following new subsection:-

"(1A) Where an employee becomes, a member of the Fund established under subsection (1), the Commissioner-General of Labour shall assign an identification number to such employee and employer in the prescribed manner."

3. Section 5 of the principal enactment is hereby amended in subsection (1) of that section as follows :—

(1) by the insertion immediately after paragraph (e) of that subsection, of. the following new paragraph "(ee) may invest according to such terms and conditions as may be prescribe such amount of moneys of the Fund winch may become necessary for them construction on any land, purchased for that purpose or belonging to or held by the Fund, of a Secretariat on behalf of the Employees’ Provident Fund, for the use of the Fund;" and

(2) in paragraph (ff) of that subsection, by the substitution for the words "account, for a period not exceeding six years prior to the date of such transfer, and" of the words "account and".

5 4: The following new section is hereby inserted immediately after section 23 of the principal enactment and shall have effect as section 23A of that enactment:—

23A. (1) Every member of the Fund who

(a) has made contributions to the Fund for a period of not less than ten years;

(b) is presently employed; and

(c) possesses not less than three hundred thousand rupees to his credit in his individual account,shall, for the purpose of

(i) housing; or

(ii) medical treatment,

be entitled to withdraw such amount as, does not exceed thirty per centum of the amount lying to his ,credit in his individual account,

(2) A member of the Fund who subject to the provisions of subsection (1) makes a withdrawal from the amount lying to his credit in his account, shall upon the completion of a

period of ten years from the date of such withdrawal, subject to the provisions of paragraphs (b) and (c) of subsection (1) be entitled to make a second withdrawal of such amount as does not exceed thirty per centum

from such account for any one of the above purposes.

(3) Every member s hal 1, during the period he is a contributor to the Fund be entitled to only two withdrawals from his individual account.

(4), For the purpose of this section –

"housing" includes,

(a) the construction, of a house on a land belonging to a member;

(b) the purchase of a. land for the construction of a house;

(c) the purchase of a house;

(d) the redemption of a mortgage on housing property; or

(e) the settlement of an outstanding balance of the housing loan received from the approved bank,

by such member; and

"medical treatment" includes –

(a) heart surgery;

(b) by-pass surgery;

(c) treatment for cancer. including surgery;

(d) kidney transplant or surgery;

(e) cesarean operation; or

(f) hospitalization for not less than fourteen. days on the account of an accident.

(5) A member of the Fund, his or her spouse and his or her children shall be entitled to the medical treatment referred to in this section.

(6) The Minister may appoint, by Order

published in the Gazette different dates for the bringing in to operation of the provisions of sub-paragraph (i) or (ii) of subsection (1).".

5. The following new section is hereby inserted immediately after section 24 of the principal enactment and

shall have effect as section 24A of that enactment:—

24A. (1) The Commissioner-General of Labour may establish an insurance scheme and a pension scheme as the case as may be for the benefit of the members of the Fund subject to

such terms and conditions as may be prescribed.

(2) Every member of the! Fund who wishes to join the insurance scheme or the pension scheme or the both schemes, shall be required to contribute the prescribed amount.".

6. Section 31A of the principal enactment is hereby amended, by the substitution for the words "at the rate of one per centum" of the words "at the rate of two per centum".

7. The following new section is hereby inserted immediately after section 31A of the principal enactmentand shall have effect as section 31B of that enactment:—

31B. It shall be the duty of every employer having in his employment a minimum of fifty employees to furnish a monthly return containing such particulars as may be prescribed, to the Commissioner-General of Labour with a copy to the Central Bank not later than the end of the succeeding month.".

( Section 37 of the principal enactment is hereby amended, by the substitution for the words "fine not exceeding one thousand rupees", "term not exceeding six months" and "fine not exceeding fifty- rupees for each day"

of the words "fine not exceeding twenty thousand rupees", "term not exceeding twelve months" and "fine not exceeding two hundred rupees for each day" respectively.

9. Section 46 of the principal enactment is hereby amended in subsection (1) thereof by the insertion immediately after paragraph (a) of that subsection of the following new paragraph;

"(nn) in respect of the procedure to be followed in granting housing benefits and benefits relating to medical treatment;".

10. In the event of any inconsistency between the Sinhala and Tamil texts of this Act, the Sinhala text shall prevail.

http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=42572

The Central Bank pumped in Rs. 24.2 billion to the money market in order to ease liquidity tightening as it continues to sell dollars in defence of the exchange rate, selling almost US$ 780 million since the rupee was devalued in November 22.

The Rs. 24.2 billion liquidity infusion through a reverse repurchase auction at 7.94 percent resulted in overnight interbank rates relaxing further. This infusion was the highest since nearly Rs. 26 billion was pumped in to the market in November 21 when rupee liquidity was particular severe owing to the heavy intervention of the Central Bank to stabilise the exchange rate, a day before the rupee devaluation.

Yesterday (Jan. 05), overnight call money market rates for interbank borrowings without security eased to 8.92 percent from 9.32 percent the previous day. Market repo rates for borrowing with security eased to 8.02 percent from 8.19 percent and the Sri Lanka Inter Bank Offered Rate eased to 9.04 percent from 9.33 percent the previous day.

Excess liquidity in the banking system amounted to Rs. 27 billion, up from Rs. 18 billion the previous day as some banks hold better liquidity positions than other, dealers said.

The dollar was unchanged at Rs. 113.89/90 and Reuters reported that US$ 10 million was sold during the day to prop the exchange rate. It said US$ 780 million had been sole by the Central Bank since the three percent devaluation last November.

The Central Bank had sold a total of US$ 1.1 billion during the three months July, August and September.

The Central Bank says the pressure on the balance of payments would ease significantly with expected foreign currency inflows within the next three months, however, the Treasury is pushing for another devaluation accompanied by a tightening of interest rates.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=42576

* CSE postpones activation of new trading system
The Colombo bourse continued its negative mode yesterday on a modest turnover of Rs.341.6 million, down from the previous day’s Rs.459.7 million, with the All Share Price Index down 33 points (0.55%) and the Milanka down 27.43 points (0.54%) with 32 gainers trailing 127 losers.

"It was a very dull day with very limited activity," Prashan Fernando of Acuity Stockbrokers said.

JKH continued to be the big business generator gaining 60 cents to close at Rs.169 on nearly 0.5 million shares traded between Rs.168.40 and Rs.170 generating the day’s top turnover of Rs.76.5 million.

Brokers said that there was a mix of small and fairly large parcels of this counter traded although none touched the 100,000 mark.

Other business generators included ERI which lost Rs.1.60 to close at Rs.31.40 on over 1.9 million shares traded between Rs.31.40 and Rs.33.70 and Commercial Bank, down 90 cents to close at Rs.99.80 on nearly 0.5 million shares done between Rs.99.80 and Rs.101.

Janashakthi Insurance, Tokyo Cement (non-voting) and Colombo Land also saw some activity though trading was thin and all these counters saw their prices down from the previous day.

The CSE which was planning to launch a new trading system with effect from today (Friday) postponed implementation as there were some glitches that still need attention.

There was no word on when the new system will be activated.

http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=42575

Ramani KANGARAARACHCHI
The first Sri Lankan finance company to have ISO 9001; 2008, Alliance Finance has increased its profit after tax by 406 percent during the six months ended in September 2011 compared with September 2010.

Alliance Finance AGM Deposits Champa Nakandala said that the company has made a significant growth last year increasing the deposit base to Rs six billion which is a 24 percent growth compared to 8.7 percent growth in the previous year.

The client base has exceeded 10,000 increasing investment growth by 79 percent in the six months ended September 2011 compared with September 2010. As a result, the company was able to pay an attractive bonus to all employees.

She said that the company will further expand this year with more branches with the approval of the Central Bank to have more marketing activities. Accordingly all collection centres will be upgraded to branches.

As the Central Bank has decided to change interest limits, the company expects more deposits this year.

The continuous and prompt payment of due interest to deposit holders has built confidence of its clients and has brought the company forward over 55 years she said.

"Our first priority is the payment of interest and even the staff salary is paid after that according to our MD Kumar de Silva's guidelines," she said.

Asked how was it possible to sustain during the crisis period she said although the company was compelled to pay low interest rates to depositors during that period it maintained a 90 percent renewal ratio and there were no premature withdrawals.
http://www.dailynews.lk/2012/01/06/bus04.asp

Funds raised via CSE up 65% to record Rs. 47.1 b in 2011

Sharp rise in new investor base
Local individual investors now number nearly half a million
Despite foreign outflow, total non-national accounts increase
For the beleaguered Colombo stock market, there is something to cheer as funds raised by corporate Sri Lanka via the Bourse last year hit an unprecedented all time high of Rs. 47.17, up by 65%, whilst the number of new investors almost doubled.
As per data released by the Colombo Stock Exchange (CSE) yesterday, the amount raised via Rights Issue last year was Rs. 28.01 billion, up from Rs. 24.3 billion in 2010. Money raised via Initial Public Offering (IPOs) was Rs. 19.1 billion, up from Rs. 4.3 billion.
Both form of fund raising were a record whilst the combined figure too hit an all time high of Rs. 47.17 billion, up by Rs. 18.5 billion or 65% over 2010.
This higher fund raising was supported by 13 IPOs as against 8 in 2010 whilst overall listings grew to 272 from 242. Last year saw 16 equity introductions as against 2 in 2010.
Another positive development was the high increase in new investors. The number of new CDS accounts opened last year was 112,473, almost double the figure opened in 2010 of 57,283.
Reflecting an almost half a million, the number of local individuals as at 31, December 2011 was 492,734, up from 410,936. Local individuals were the most active class of investors increasing their contribution to turnover to 54.6% out of Rs. 546.2 billion from 44% in 2010 whereas all other classes declined.
The high growth in local individual investor base helped propel the total number of securities accounts to top the half a million mark, at 508,014, up from 424,288 in 2010. Accounts operated by local companies rose to 7,321 from 6,114.
Though the market suffered a Rs. 19 billion net outflow, the number of non-national accounts had grown. Foreign individuals category rose to 3,847 from 3,345 and companies improved to 4,112 from 3,893. However foreign investor contribution to total turnover was down to 10.9% from 18.5% in 2010, with biggest drop coming from foreign companies – 8.3% versus 15.3% in 2010.
Baring some of these positive features, rest of the indicators of 2011 at CSE reflected the overall dip. The ASI declined by 8.5% registering its first dip in three years after 2010 saw 96% gain and 2009 a record 125% increase. Equity turnover was lower too at Rs. 546.2 billion, as against Rs. 570.3 billion with domestic component increase to Rs. 487 billion from Rs. 464.7 billion and foreign almost halved to Rs. 59 billion from Rs. 1066 billion.
Though turnover dipped, number of shares transacted rose to 24.5 billion up from 18.5 billion with increases in both domestic and foreign. Number of trades rose to 4.58 billion from 3.35 billion.
Market capitalization remained almost flat at Rs. 2.2 billion whilst turnover to market capitalization declined to 24.7% from 34.5%. Market’s Price Earnings Ratio was down to 15.8 times from 25.2 times in 2010 whilst Price to Book Value was 2 times in comparison to 3 times and dividend yield amounted to 1.8% in comparison to 1.2%.http://www.ft.lk/2012/01/06/funds-raised-via-cse-up-65-to-record-rs-47-1-b-in-2011/#comments

Brokers mixed over tea industry’s prospects in 2012

Two leading brokers expressed mixed sentiments over the tea industry’s prospects for 2012.
Forbes and Walker Tea Brokers opted to describe its sentiments as “cautiously optimistic” with regards to the market scenario for 2012 whilst Asia Siyaka said 2012 will be a challenging and a decisive year for Sri Lanka tea industry.
“The Colombo Auction averages should move up from the low levels decreased to during the last quarter of 2011, whilst it may be over optimistic to predict the dizzy heights that we reached during the first quarter of 2011 at this point of time,” Forbes said. “It is also important that the cautious optimism for the tea market in 2012 be linked with the accent on maintaining reasonable and consistent quality throughout the year,” it added in its initial review of tea industry performance 2011 and outlook for 2012.
Asia Siyaka reasoned that the global economic downturn and the fall of the commodity prices which is evident could have a great impact of Sri Lanka Tea Industry.
“The high production cost which could hardly be brought down has a great impact on the plantation industries profitability. The black tea production in China for Export and Major investments on tea production in Vietnam,Tanzania and Uganda the improvement of quality of the Kenyan teas and the lower production cost in the mentioned countries could be a severe threat to the competitiveness of the Sri Lanka Tea in the world market,” Asia said.
“If the prices do not increase especially in the high grown rotorvane teas the plantation companies would have to necessarily look at other crops as well as other areas of business in this sector which is already evident,” Asia Siyaka added.
See Page 4 for the full report on Forbes and Walker Tea Brokers’ Review.http://www.ft.lk/2012/01/06/brokers-mixed-over-tea-industrys-prospects-in-2012/

Sri Lanka pension fund should publish annual report: legislator

Jan 06, 2012 (LBO) - Sri Lanka's main opposition has called for the immediate publication an annual report of the island's largest pension fund also questioned state plans for a 30-storey building using private citizens' pension money.

Sri Lanka's employee's provident fund (EPF) where contributions from private citizens' salaries are kept is managed by the state but its annual report for 2010 has not been published through it is now 2012, an opposition legislator said.
United National Party legislator Harsha de Silva asked the state to delay an amendment to the EPF governing law to be scheduled to be brought to parliament on January 18, until there have been broader consultations.

There was a provision to start a pension, and construct a 30-storey building using people's pension money, he said.

"The deleted's official position is do not bring this on the 18th, postpone it until there is a discussion with the national labour advisory council, political parties, a broader discussion with trade unions," de Silva said.

"They should at least respect what Roshen Chanaka died for."

An attempt to forcibly create a third state managed pension fund out of people's salaries resulted in protests where Roshen Chanaka, an export zone worker was shot by police and died. Even his funeral was carried out under heavy armed guard.

Under the current EPF law, private sector citizens are able to get the money collected in the fund as a lump sum and invest it as they wish after that.


A pension (which involves a monthly annuity) will allow the state and rulers to control the private sector workers money for a longer period. The bill to create a pension has still not been taken off the order book of the parliament.
"Roshen Chanaka's life was taken because he was fighting for the economic freedom not just for himself but for all seven million people who work in this country," de Silva said.

"Respect that and don't bring it from the back door and rush it through, but instead have a discussion and have agreement."

Though nominally a democracy, Sri Lanka's rulers have used parliamentary majorities to steal the economic freedoms of citizens and violate their rights for decades.

Last year the state pushed through a secretly hatched an expropriation law, violating property rights of the people, while throughout Asia, from China to Vietnam state are bringing laws to strengthen property rights previously violated under Marxist doctrines.

State management of private citizen's forced savings pension money has increasingly become controversial.

The EPF in particular had been long accused of being a so-called 'captive source' which rulers used for financial repression (to keep interest rates artificially low) creating high inflation and currency depreciation.

In recent years the EPF, which now has a trillion rupees under management, started putting more money into stock markets in a welcome move.

But several investments ran into controversy following the purchase of some fundamentally weak stocks at high prices and the fund dabbling in bank shares.

The EPF is managed by the Central Bank which also regulates banks. Critics say EPF purchases of bank stock are tantamount to insider dealing and a conflict of interest.

De Silva said the EPF annual report has not been submitted parliament even for 2010.

"The 1958 Act of the EPF says, the balance sheet income statement, cashflow statement and investment statement, has to be generated by the 31st of March of the next year, for the previous year," he said.

"The annual report must then be presented to parliament with the observations of the auditor general."

As of January 2012, the parliament has been informed in writing that the 2010 annual report is not ready, de Silva said.

The annual report should contain details of stock purchases, their cost and market price, he said.http://www.lbo.lk/fullstory.php?nid=327078164

Environmental Resources Investment PLC extends the 2012 Warrant exercise date

Jan 06, 2012 (LBT) - The Board of Directors of the Environmental Resources Investment PLC at a meeting held on 5th January 2012 had decided to recommend to its share holders and the holders of 2012 Warrants to extend the cut off date of the 2012 Warrants from 3rd February 2012 to 6th September 2013 and further to extend the expiration date of the 2012 Warrants from 24th February 2012 to 26th September 2013. In order to consider and pass the requisite special resolution the company has called up for an extraordinary general meeting for the 2012 Warrant holders on the 1st of February 2012.

In a filing to the Colombo Stock Exchange the company further informed the Board of Directors had Unanimously resolved the extension of cut off dates and expiration dates of the 2012 Warrants for the best interest of the company.

The notice further stated that 2012 Warrant holders who wish to exercise their warrants are permitted to do so from 7th September 2013 to 26th September 2013. Accordingly the 2012 Warrants of the company will trade upto and including 6th September 2013.http://www.lbt.lk/corporate/announcements/984-exercise-extention

John Keells PLC welcomes Mr. R S Fernando to the board

Jan 06, 2012 (LBT) - In a filing to the Colombo stock exchange John keells PLC announced the retirement of Mr. L D Ramanayake with effect from 30 December 2012 and the appointment of Mr. R S Fernando to the board with effect from 2nd January 2012. Mr. R S Fernando had been with the company since 1993.http://www.lbt.lk/corporate/announcements/985-welcome-aboard

Sri Lanka plans new roads to ease congestion in capital

Jan 06, 2012 (LBT) - Observing the Heavy conjestion on High Level Road, Baseline Road and from Malabe to Parliament Junction. It was said by the Head of the Road Development Authority, Sri Lanka has started to plan new roads to ease the congestion in the capital Colombo and provide faster connections to expressways.
About 40,000 new vehicles are now put on Sri Lankan roads each month compared to about 20,000 two years ago. This includes about 20,000 motor cycles and 11,000 three wheelers, which are mostly used as taxis.
Sri Lanka is also building several expressways. The first expressway to the South is already open and another to an international airport north of Colombo is being built. An expressway to the central hill city of Kandy is also planned.

It was also stated a clearer idea of how the roads can be built will only be seen after the feasibility study is complete. The feasibility study will also look at how to optimize approaches to the new expressways.http://www.lbt.lk/news/economic/991-congestion-solution

Sri Lanka Targets Poverty Reduction to 2%

Jan 06, 2012 (LBT) - Sri Lanka has been able to achieve an economic growth of 8% last year, and this year plans to bring down poverty to 2% from the 7%.
It was mentioned by the acting Minister of Economic development describing the current level of poverty of 7% as a great achievement, the government has taken measures to increase the per capita income to US$4000 by 2016.
It was stated that arrangements are in place to earn US$ 1 billion from the tourism industry.http://www.lbt.lk/news/economic/989-poverty-reduction

Tourist arrivals to Sri Lanka up 15.2%

Jan 06, 2012 (LBT) - The government data indicated a high record of tourist arrivals in December and the island attracted many tourists across the globe throughout the year 2011. Tourist arrivals in December hit a record of 97517 up 15.2% from a year earlier surpassing the island’s previous monthly peak of 90889 in November.

In 2011, tourist arrivals jumped 30.8% to 855975 from a year earlier, much higher than Sri Lanka’s record of 654476 in 2010.The government is targeting annual revenue of USD 2.75Billion by 2016 from 2.5 Million expected visitors, while aiming USD 3 Billion in FDIThe tourism board expects 950,000 tourists in 2012 with revenue of more than USD1 Billion, more than 20% from last year’s estimated USD 800 Million.

The hotel and travel index on the Colombo Stock Exchange has risen nearly fourfold since the end of war.
http://www.lbt.lk/news/economic/993-tourism-peak