Sri Lanka Economy - News & Updates

[Lankan Ranger]

China approves US$ 290mn loan for Sri Lanka

The Exim Bank of China recently concluded concessional funding arrangements with the Sri Lankan government amounting to US$ 290 million, Sri Lanka’s Embassy in Beijing said.

"The Chinese Government through its funding arm the Exim Bank, concluded with Sri Lanka a Concessional Funding arrangement to construct the island’s second airport in Mattala at a cost of US $ 190 million while also pledging Concessional financing of US $ 100 million to augment the capacity of the Sri Lankan railway.

"Two Consessional Loan agreements were signed during a three day visit by Dr P B Jayasundera, Secretary to the Ministry of Finance of Sri Lanka, and a delegation from the External Resources Department and Attorney General’s Department to Beijing from March 3 to 5," the embassy said in statement released by the Ministry of Foreign Affairs of Sri Lanka.

The Island-Business

 

[Lankan Ranger]

Sri Lanka gets Malaysian motorcycle plant

Malaysia's DNC Asiatic Holdings is to set up a plant to make motorcycles in Sri Lanka mainly for export with an investment of 16 million US dollars, the island's investment promotion agency said.

The Board of Investment said in a statement the venture, Demak Manufacturing Lanka, will provide employment for a workforce of 200 people initially.

“The production would be mainly targeted for the export market while the products would also be available locally,” it quoted Kent Kee, director, commercial operations of Demak Manufacturing Lanka, as saying.

The plant, which will make a range of motorcycles, bikes and scooters as well as spare parts, is expected to start in five months.

BOI chairman Dhammika Perera presented the agreement to Gao Rong, chief executive of DNC Asiatic Holdings.

BOI approval entitles investors tax concessions and duty free imports of machinery and material.

DNC Asiatic Holdings, the manufacturer of the Malaysian motorcycle brand, Demak, is a joint venture between Malaysian and Chinese interests.

The BOI statement said DNC Asiatic Holdings has sold over 20 models of motorcycles, scooters and mopeds, and secured a share of the market in Malaysia.

Sri Lanka gets Malaysian motorcycle plant - LANKA BUSINESS ONLINE

 

[Lankan Ranger]

Export value exceeds Rs 7.3 b


Gems, jewellery and diamond exports recorded a total increase of 34 percent in February this year compared to corresponding period last year.

The total value of exports in February 2010 was Rs. 7,358.6 million. It was Rs. 5,473.6 million in 2009.

The industry growth was contributed by 12 percent increase in gems, 6 percent increase in gem studded jewellery and 46 percent increase in diamond exports.

National Gem and Jewellery Authority (NGJA) Acting Deputy Director General Ajith Perera said, Sri Lanka will participate in eight international events to facilitate market opportunities by having Sri Lankan pavilions.

"The currently held International Gold Jewellery Gems Fair in China Shenzhen is a huge success and there are positive responses," he said.

"This is the first time that Sri Lanka has organized a pavilion in this show and the feedback is encouraging.

There are 17 Sri Lankan companies participating under the Sri Lankan banner and the buyers have a keen interest on this pavilion", Perera said.

There are a number of international shows including the Jewellery Shanghai Show in April and the New Russian Time in May.

This is the first time that Sri Lanka is participating in a Russian show.

The country needs to focus on new markets as the traditional markets are yet to recover from the global economic downturn.

The possibilities in the countries such as Russia, India, China, Turkey and the Middle East are being looked into.

The NJGA has taken many initiatives to develop the industry and to promote international markets.

Efforts to increase the land available in gemming through land auctions carried out by the NJGA will facilitate to increase raw material supply.

This enables the industry to offer goods at more competitive rates.

The gem and jewellery industry is an important part of the SME sector and its development will also fuel export growth.

Sri Lanka Business News | Online edition of Daily News - Lakehouse Newspapers

 

[Lankan Ranger]

Commercial Credit opens branch in Colombo

Twenty eight years after it commenced business in the hill country capital, a finance company opened its new premises in Colombo earlier this week.

The new branch of Commercial Credit was literally unwrapped last Thursday by the Central Bank Governor, Ajith Nivard Cabraal.

Commercial Credit also unveiled its new corporate logo and announced plans to grant credit facilities in less than an hour, and also reward depositors with valuable gifts that would substantially enhance the return on their investments.

"Even in the midst of the recent global financial crisis, Commercial Credit earned the reputation of always standing by our valued customers, honoring their withdrawals be it at maturity or in their hour of need, which speaks of the company’s stability," Deputy General Manager - Sales & Marketing of Commercial Credit, Madhawa Edussuriya said

Commercial credit is one of the fast growing companies in the country. "We pledge to make it our priority to constantly strive to maintain this growth and gear ourselves to improve the quality of our services," he said.

The company’s new corporate logo of entwined Cs with the tagline ‘Your preferred choice’ was unveiled at the event. It reflects a commitment to all stakeholders, Edussuriya said.

Commercial Credit has been successful and consistent in serving the rural agricultural sector, and has now diversified into Micro Finance, Pawning and its 60-minute facilities, which are all short term investments, and has increased its volume of financing of vehicles, real estate and lending which are comparatively long term investments.

Central Bank approval has been obtained to extend Commercial Credit’s services to Galle and Ampara, and the company plans to add Gampaha and Vavuniya to its network in the near future, he said.

The Island-Business

 

[Lankan Ranger]

Sri Lanka hair industry on top

The Organisation Mondiale Coiffure (OMC) Asia Cup Open 2010, the largest hair event of the Asia region commenced on March 7th and concluded on March 8th, unravelling the fantastic talents of the hairdressing community of the Asian region.

Organised by the Sri Lanka Association of Hairdressers and Beauticians (SLAHAB), the event was held at Cinnamon Grand with the participation of nearly 250 contestants. The competitors represented countries of the OMC Asia region including Japan, South Korea, Taiwan, India, China, Hong Kong, Singapore, Thailand, Pakistan, Indonesia and Malaysia.

On the inauguration date, March 7th, the programme comprised entirely of competitions. The competition line-up for the day included senior and junior groups for technical, fashion, individual as well as combination categories. The technical category, in which the technicalities of the creation are given emphasis, bore quite a competitive and sharp mood amongst the competitors. It consisted of subcategories such as ‘creative’ and ‘hair by night’ in both male and female groups. Fashion category was quite interesting to observe as prominence in this group was provided to the creativity of the contestants with ample scope for innovative styles.

Recognising the extensive talent that is emerging from the Asian region, OMC took steps to make the competition more viable for participants to take part through allowing the usage of mannequins for the creations. Therefore the creations were done on live models as well as mannequins.

On March 8th, the programme schedule commenced at 9 a.m. and the competitions continued until 4 p.m. More fashion category tests were held for both juniors and seniors in individual and combination groups. The prize giving was held from 6 p.m. onwards where the winners from each category were rewarded. The Chief Guest of the event was French Ambassador to Sri Lanka, Her Excellency Madam Christine Robichon, The OMC World President Mr. Salvatore Fodera, World Competition Director Mr. Carmello Gugliotti, Global Trainers Mr. Toshio Tanaka and Mr. Joakim Roos were some of the distinguished foreign guests.

The competition was judged by an international team of highly qualified judges. The only Sri Lankan in the team was Johann Peiris. "Being qualified to judge OMC competitions is a privileged qualification as it is only valid for two years. Once the validity period expires, the judge has to renew the qualification after facing an exam conducted especially for industry personnel, which is held soon after the World Hair Asia Cup," said SLAHAB Founder President and President of OMC Asia Zone, Nayana Karunaratne.

The general assembly of the OMC Asia zone was also held on March 6th followed by a prevent cocktail was graced by prominent personalities of the global as well as local fashion and beauty industry including OMC World President, Salvatore Fodera who observed that small countries such as Sri Lanka hosting such a magnificent event was indeed a great pride to OMC.

The Island-Business

 

[Lankan Ranger]

China assures assistance for development efforts

The Chinese Government through its funding arm the Exim Bank, concluded with Sri Lanka a Concessional Funding arrangement to construct the island's second airport in Mattala at a cost of US $ 190 million while also pledging Concessional financing of US $ 100 million to augment the capacity of the Sri Lankan railway.

Two Concessional Loan agreements were signed during a three day visit by Dr P.B. Jayasundera, Secretary to the Ministry of Finance of Sri Lanka and a delegation from the External Resources Department and Attorney General's Department to Beijing from March 3 to 5.

The Secretary to the Ministry of Finance had very productive discussions with the Exim Bank officers in fast-tracking many infrastructure development projects being evaluated by the Bank for future funding, particularly in the Northern and the Eastern Provinces of Sri Lanka. Emphasis was laid on speeding up the evaluation process for the construction of the A9 highway.

During his discussions with the Vice President of the Exim Bank Zhu Hong Jie, Secretary Finance elaborated that with the resounding electoral victory of President Mahinda Rajapaksa, the Government's development focus and the strategic plan set in place would progress unhindered.

He explained that a vital ingredient for the realisation of this development plan was the need to fulfil the infrastructure requirement and appreciated China for assisting Sri Lanka at a very crucial stage of her socio-economic development shouldering a major portfolio of the financial requirements.

Financial News | Sundayobserver.lk

 

[Lankan Ranger]

Korean Air, Korea’s national airline, is to resume flights to Colombo next month

Korean Air, Korea’s national airline, is to resume flights to Colombo next month following the boom in tourism and increased travellers from there. Sarath Weerasooria, Chairman Finco Group told the Business Times that there would be about a 35 % increase in foreign arrivals in the forthcoming season.

He said that there is an increase in tourist arrivals from the US and Korea and anticipating that, Korean Air will restart flights from April, flying to Male and then to Colombo and onward to Seoul.
He was speaking on the sidelines of the 34th anniversary last week of Alpha Tours (Pvt) Ltd (ATL), part of the Finco conglomerate which is the - General Sales Agents for Korean Air in passenger and cargo traffic.

Mr Weerasooria spoke about the history of their association with Korean Air while Stewart Lee, Managing Vice President, Southeast/West Asia and Oceania, Korean Air explained the operations.

Mr Lee said that Korean Air operated a scheduled passenger flight from 1978 to 1984 and it was suspended due to commercial reasons. He said that they also operated the airline's first regular freighter service to Sri Lanka since 1989.

He said that ATL is the 1st Cargo GSA in Sri Lanka to obtain Certificate of GSSA registration from IATA in relation to the promotion selling and provision of services to airlines as an appointed International Air Transport Association (IATA) General Sales and Service Agent.

ATL was one of the best performing offline GSA's for Korean Air in the Asia Pacific region specially on Cargo. ATL was appointed GSA for Maldives for Passenger and Cargo in 2008.

Korean Air to resume flights next month

 

[Lankan Ranger]

Expansion for Chevron

Chevron Lubricants is looking to expand operations in Sri Lanka after reporting positive financial results over the past year in spite of challenging circumstances. Managing Director Kishu Gomes told the Business Times this week the company is hoping to capitalize on market growth in the north and east in the post war era. “Over the last three years, there has been an industry decline of 4% to 5% but given the peaceful environment, the global economic recovery and enhanced investor confidence in Sri Lanka, we believe the market decline will end.”

Mr. Gomes attributed the industry decline to the war which took a toll on volumes not only in the north and east but also affected activities in the rest of the country. High import duties on vehicles also affected business. Due to the global recession, some export companies in Sri Lanka were unable to secure average levels of volumes. “The transport sector was not doing that well and our fisheries were restricted,” he said. “Boat owners didn’t have easy access to fishing areas around the country due to restrictions by security forces. Agriculture wasn’t doing that well either and there were natural disasters.

Hopefully, if these things won’t be there during this year, it will create positive growth in the industry.”

In terms of investment, Mr. Gomes said the company is looking towards expanding its distribution network in the north and east and supporting various channel brands such as service stations brands in the rest of the country. The company will also be focusing on consumer awareness programmes and technical seminars to equip customers with the right knowledge to select the correct lubricants.

“The main growth should come from agriculture and fisheries, helped by growth in the construction sector. It’s all about putting the right distribution network in place and supporting the channel partners and retailers through investment for them to be able to capture new volume.”

The company posted a net profit of Rs.375.9 million in 4Q09 compared to Rs.31.5 million for the corresponding period in 2008 due to high gross profit margin enjoyed on the back of low raw material costs.

Expansion for Chevron

 

[Lankan Ranger]

Sri Lanka lifts taxes on gold imports

Sri Lanka has lifted taxes and levies on gold imports from to promote jewellery industries in the country, the central bank said.

"The removal of all applicable import taxes and other levies on gold imports will reduce the gold prices in the market and contribute to promote gold and jewellery industry in the country," the Central Bank said in a statement.

"Accordingly, commercial banks and other authorized persons can now increase their gold imports to meet the industry requirements."

Taxes and other applicable levies on gold imports have been removed from March 01, the Central Bank said.

With effect from 1 March 2010, all taxes and other levies applicable on gold imports have been removed.

Sri Lanka lifts taxes on gold imports - LANKA BUSINESS ONLINE

 

[Lankan Ranger]

Sri Lankan Airlines to expand routes, frequencies

Sri Lankan Airlines plans to add more destinations and increase frequencies on existing routes as it expands and the island's tourist trade revives with the end of a war, senior officials said.

The island's national carrier also intends to lease more aircraft, raising its fleet to 20 aircraft from 12 Airbus aircraft of various types today, said G S Vitanage, additional secretary of Sri Lanka's aviation ministry.

The state-owned airline plans to start flights to Shanghai, in China where it already flies to Beijing, and also operate to Jakarta while increasing the frequency of flights to Tokyo, he said.

Shri Senanayake, the airline's international relations manager, said it aims to carry 55 percent of tourists into the island with the end of the ethnic war resulting in a revival in tourist arrivals.

"With the war now over a whole lot of new opportunities are now before us," he told a news conference.

The country returned to normal only after May 2009 when government forces defeated the Tamil Tigers, ending a 30-year war.

"Not even one year has passed since normalcy returned and the global recession is still with us," Senanayake said.

He also said the airline's was moving towards becoming profitable after making losses owing to the global economic slump and the problems caused by the island's war which had deterred travel.

"Now we've managed to reduce losses. There's a gradual rise towards profitability."

Sri Lankan Airlines to expand routes, frequencies - LANKA BUSINESS ONLINE

 

[Lankan Ranger]

SLPA to finalize BOT deal

Sri Lanka Ports Authority (SLPA) had a three day discussion on the Build, Operate and Transfer (BOT) deal for the first container terminal of the new Colombo South Harbour with China Merchant Holdings and Aitken Spence PLC.

It is expected to finalize the agreement within this week and the new terminal of the Colombo South Harbour is projected to complete its construction by the end of April, SLPA Managing Director, Capt. Nihal Keppetipola told Daily News Business.

He said the new terminal is built with an investment of over US$ 400 million with a capacity of 2.4 million TEUs per day.

The new terminal with super post-paramax will cater to the 18 meter draughts, which are considered the biggest container vessels.

“The Colombo South Harbour will be a mega hub port in South Asia, which will be a threat to the other ports in the region such as the Cochin harbour.

Colombo Port is located in a strategic geographical position and has the advantage of being in the main East – West shipping routes. With the opening of the new terminal it will generate earnings, loyalty, rent and dividends to the SLPA”, Keppetipola said.

The Managing Director said there is an outstanding increase of over 15 percent in TEUs handling during the first two months of 2010, compared to previous year. The opening of the new Colombo South Harbour would increase their income and profits.

The SLPA intends to attract more shipping lines this year as they attracted Maersk and APL last year. The Colombo Port handles over 10,000 operations per day, where it contributes immensely to the country’s economy and with the expansion project the throughput of the Port will increase further by over 2.4 million, he said.

Keppetipola said, with the introduction of the automated terminal management system, last year the throughput and the vessel turnaround increased rapidly. The SLPA expects to buy new equipment this year to increase the productivity of the Colombo Port.

Sri Lanka Business News | Online edition of Daily News - Lakehouse Newspapers

 

[RISING SUN]

IMG sees growth in Sri Lanka economy.

 

[abc123xyx]

intrestingly thread has reopened after 6 years...

since lots has changed...lots..