Sri Lanka Newspapers Saturday 31/03/2012

Bourse closes the week virtually flat with limelight still on JKH
*Turnover down, indices point in opposite directions

The Colombo bourse closed the week yesterday on a turnover of Rs.789.2 million, down from the previous day’s Rs.1.2 billion, with the indices pointing in opposite directions – the All Share Price Index up 19.05 points (0.35%) and the Milanka down 6.52 points (0.13%) with 92 gainers a shade behind 99 losers.

The financial year for March 31 companies ended yesterday but little window dressing was apparent.

JKH continued to be the biggest business generator with over 0.5 million shares done between Rs.205 and Rs.210 with the counter losing Rs.2.40 to close at Rs.206 contributing Rs.113.5 million to turnover.

Colombo Land followed with nearly 1.1 million shares done between Rs.38.50 and Rs.39.30 closing flat at Rs.39 generating a turnover of Rs.42.5 million.

Among the other turnover generators were Chevron up Rs.3.10 to close at Rs.182 on 0.2 million shares done between Rs.178.90 and Rs.182 and NDB up 60 cents to close at Rs.123 on 0.2 million shares done between Rs.121 and Rs.123.

Seylan (non-voting) closed flat at Rs.29 on slightly over 0.8 million shares done between Rs.64 and Rs.67.50 on the floor with a block trade of a further 2.5 million shares crossed at Rs.28.90.

A foreign seller continued selling down ComBank at Rs.100 price with a stock of over 0.6 million shares done between Rs.99.80 and Rs.100 closing 30 cents up at Rs.100.

Environment Resource Investments also saw activity with 0.9 million shares traded between Rs. 16.30 and Rs. 17 with the counter closing 10 cents down at Rs. 16.80.

Central Finance announced a second interim dividend of 70 cents per share for 2011/12 XD from April 10 and with payment on April 23 while Commercial Development Company announced a final dividend of Rs.2 per share for 2011 following shareholder approval at an AGM on April 25. The share will trade XD from April 26 with payment on May 8.

Mackwoods Energy Limited announced 523 applications had been received for its IPO covering approximately 28.5 million shares with a value of nearly Rs.399 million. The bulk of the applications were covered by bank drafts and cheques with two bank guarantee backed applications for a total of 7.2 million shares.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=48652

* Two accords signed to boost intra-BRICS trade to $500 billion
By S. Venkat Narayan, Our Special Correspondent

NEW DELHI: Leaders of BRICS—-the group of five of the world’s fast growing economies of Brazil, Russia, India, China and South Africa today decided to set up a new Development Bank to raise resources and fund infrastructure projects in developing countries.

In the Delhi Declaration issued at the end of the fourth BRICS summit here, they said:

"We have considered the possibility of setting up a new Development Bank for mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, to supplement the existing efforts of multilateral and regional financial institutions for global growth and development."

"We direct our Finance Ministers to examine the feasibility and viability of such an initiative, set up a joint working group for further study, and report back to us by the next Summit," they added.

The next summit will be held in South Africa in March-April 2013.

In a move to give a major boost to intra-BRICS trade, development banks of the five major developing countries—-Brazil, Russia, India, China and South Africa—- today signed two agreements in the presence of Heads of States/Governments of the BRICS countries during their fourth summit meeting here.

The BRICS account for more than 40% of the global population, and a share in the world’s Gross Domestic Product (GDP) that has increased from 16% in 2000 to around 25% in 2010.

Intra-BRICS trade amounted to about $250 billion trade in 2011. The two agreements signed today are designed to boost intra-BRICS trade to $500 billion in the next few years.

The agreements are: 1. Master Agreement on Extending Credit Facility in Local Currency, and 2. BRICS Multilateral Letter of Credit Confirmation Facility Agreement.

The five participating banks are: Banco Nacional de Desenvolvimento Economico e Social (BNDES), Brazil; State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank), Russia; Export-Import Bank of India; the China Development Bank Corporation; and Development Bank of Southern Africa.

The first agreement is intended to reduce the demand for fully convertible currencies for transactions among BRICS nations, and thereby help reduce the transaction costs of intra-BRICS trade.

The second agreement envisages confirmation of L/Cs upon receipt of a request from the exporter or the exporter;s bank or the indemnifying party or the importer’s bank. This arrangement will help reduce trade transaction costs and promote intra-BRICS trade.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=48650

Headline inflation as measured by the Colombo Consumers’ Price Index (CCPI) accelerated to 5.5 percent in March from 2.7 percent a month ago, the Department of Census and Statistics said.

However, the annual average rate of inflation decreased marginally to 5.9 percent in March 2012 from 6.1 percent in February.

"On a year to year basis, the highest contribution to the overall increase came from non food commodities which increased by 7 percent in March 2012. The combined effects of both domestically produced and imported food commodities contributed to the decrease in the food sub Index," the statistics office said.

"Among the food commodities, rice and vegetables which have significant weights in the CCPI basket, recorded price decreases on a year to year basis. It is worthwhile to note that year-to-year vegetable prices decreased by 33.8 percent in March 2012. Under the non food category, the prices of Kerosene Oil, Petrol, Diesel and Gas rose by 108 percent, 30 percent, 52 percent and 24 percent respectively," it said.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=48653

BY S VENKAT NARAYAN Our Special Correspondent

NEW DELHI, March 29: India will outpace China to become the world’s largest economy by 2050, a global property firm has claimed.

According to a forecast made by Knight Frank and Citi Pvt Bank, India will boast of a gross domestic product (GDP) of $85.97 trillion in terms of purchasing power parity (PPP), and will overtake China’s $80.02 trillion. By then, the United States will be downgraded as the third largest economy.

"China will overtake the US to become the world’s largest economy by 2020. In turn, China will be overtaken by India in 2050," The Times of India today quoted the report as saying.In terms of growth during 2010-2050, the firm predicted that India will be the second fastest with its economy growing at the rate of 8% annually.

Citing calculations by London School of Economics (LSE) Professor Danny Quah, the report predicts that the world’s economic centre of gravity—a theoretical measure of focal point of global economic activity based on GDP—will shift eastwards to lie somewhere between China and India.

Prof Quah has calculated that it was in the middle of the Atlantic in 1980.

The growing importance of Asia is also reflected in the rise of the super-wealthy population in the region. For the first time, the number of Asians with at least $100 million in disposable assets has overtaken those in North America.

"There are now 18,000 centamillionaires in the region covering Southeast Asia, China and Japan. This is more than North America, which has 17,000, and Western Europe with 14,000," the report states.

Also, Southeast Asian deca-millionaires (those with $10 million or more in assets) outnumber those in Europe, and are expected to overtake those in the US in the coming decade, it adds.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=48692

The Board of Hatton National Bank PLC has appointed four new Directors with effect from 2 April.
HNB in a press statement said the four new Directors are L.U. Damien Fernando, D.T. Sujeewa H. Mudalige, D.S.C. Jayawardena and Rusi S. Captain.

Jayawardena and Fernando are representing interests of Jayawardena-controlled companies’ stake in HNB whilst Captains also hold a substantial stake in the bank.

Fernando has over 29 years of experience in finance, life and non-life insurance, asset management and unit trusts, management of healthcare, food and beverages, manufacturing and in retail, in the mercantile sector.

In his career he has held many offices including Board and other positions. Fernando is a Fellow Member of the Chartered Institute of Management Accountants of the United Kingdom and holds a Master of Business
Administration from the University of Sri Jayewardenepura.

Mudalige has over 25 years of experience in public accounting practice and in industry in Sri Lanka and overseas and currently is a partner of PricewaterhouseCoopers – Sri Lanka. He has served on regulatory bodies such as the Securities & Exchange Commission of Sri Lanka (SEC) and the Sri Lanka Accounting and Auditing Standards Monitoring Board of Sri Lanka (SLA & ASMB).

He has also been a member of the governing boards of the University of Colombo/School of Computing (UCSC), Postgraduate Institute of Management (PIM) and the National Institute of Business Management (NIBM). He is a member of the Financial System Stability Consultative Committee of the Central Bank of Sri Lanka.

He recently completed his tenure as the President of the Institute of Chartered Accountants of Sri Lanka and also serves as the Vice President of the Confederation of Asia and Pacific Accountants.

The Confederation includes the professional accountancy bodies of Asian and Pacific nations. He has also served as a Governing Board Member of the Chartered Institute of Management Accountants (CIMA), Sri Lanka Division.

Mudalige is a Fellow of the Institute of Chartered Accountants of Sri Lanka, Fellow of the Chartered Institute of Management Accountants (UK), Fellow of the Association of Chartered Certified Accountants (UK) and a Fellow of the Chartered Institute of Securities and Investments (UK).

Jayawardena is a Director of Lanka Milk Foods (CWE) Plc., Lanka Dairies (Pvt) Ltd., Ambewela Livestock Company Ltd., Pattipola Livestock Company Ltd., Ambewela Products (Pvt) Ltd. and Indo Lanka Exports (Pvt) Ltd., since 2009. She has worked as an Intern for the Clinton Foundation in 2008.

Jayawardena holds a B.A. (Commercial Law, Criminology, Sociology) from the Monash University, Australia, Professional Certificate in Marketing (CIM), Diploma in Marketing (CIM) and a Professional Postgraduate Diploma in Marketing (CIM). She is also a Certified Auditor (DNV-Norway), a Member (CIM – London) and an Associate of Chartered Institute of Marketing (ACIM – London).

Captain is the Managing Director of Austin Gloves (Ceylon) Ltd., CEI Plastics Ltd., Propertex Development Ltd., Paints & General Industries Ltd., Paints & General Industries (Exports) Ltd., Polypak Secco Ltd. and Ranweli Ltd. He is also a Director of Chemical Industries (Colombo) Ltd., Body Bar Ltd., H.Senid Software Ltd. and Polytex Garments Ltd. Captain has had his primary education at the Royal College and secondary education (O/L & A/L) at Millfield, UK and the University of Miami, Florida.

The Board of HNB PLC will now consist of 11 members of which seven would be independent Non-Executive Directors. The board members are Dr. Ranee Jayamaha (Chairperson), Rajendra Theagarajah (Managing Director/CEO), Pamela C. Cooray, N.G. Wickremeratne, M.A.R.C. Cooray, Dr. W.W. Gamage, Dr. L.R. Karunaratne, L.U.D. Fernando, D.T.S.H. Mudalige, D.S.C. Jayawardena and R.S. Captain.
http://www.ft.lk/2012/03/31/harrys-daughter-rusi-captain-among-new-faces-on-hnb-board/