June 24, 2013 – Sri Lanka’s exports fell 6.8 percent in April 2013 to 696.6 million US dollars with apparels falling 14.98 percent to 275 million US dollars from a year earlier, and exports in first four months down 7.8 percent, the Central Bank said.

Industrial exports were down 7.5 percent to 518 million US dollars.

Agricultural exports fell 0.9 percent to 175.6 million US dollars, but tea was up 1.2 percent to 106.4 million US dollars.

Imports rose 5.7 percent to 272.7 million US dollars with consumer goods up 12.7 percent to 272.7 million US dollars, intermediate goods up 5.5 percent to 884.4 million US dollar.

Petroleum imports fell 5.2 percent to 343.4 million US dollars and textile and apparel fell 15.4 percent to 154.1 million US dollars.

Investment goods were up 1.2 percent to 363.4 million US dollars.

Machinery and equipment were barely up 1.1 percent to 186.5 million US dollars, transport equipment were down 27.0 percent to 60.3 million US dollars and building materials were up 26.8 percent to 116.3 million US dollars.

The trade deficit expanded 19.2 percent to 825.4 million US dollars.

In the first four month so the year exports rose 7.8 percent to 3,059.8 million US dollars, imports fell 11.3 percent to 6,025.4 million US dollars and the trade deficit was down 14.6 percent to 2,965.6 million US dollars.

A trade deficit is caused when domestic economic agents outside merchandise exports, including remittances, tourism receipts, borrowings and foreign direct investments.

The Central Bank said worker remittances (exports of labour) were 2.1 billion dollars and earnings from tourism receipts were 407 million dollars.

The central bank said there were 612 million US dollars flowing into Treasuries markets (exports of debt) and 546 million US dollars in other loans.

Source: http://www.lankabusinessonline.com

As bilateral trade volume closes in on the crucial $ 5Bn mark, historic dialogue between Sri Lanka and the European Union appears to bolster even further. “We look for better trade levels and also thank EU for its on-going support,” said Rishad Bathiudeen, Minister of Industry and Commerce.

Minister Bathiudeen was addressing Ambassador Bernard Savage (Head of the Delegation to Sri Lanka and the Maldives from the European Commission) on 20 June during Amb. Savage’s farewell courtesy call on Minister Bathiudeen at the EDB premises, Colombo.

According to the Department of Commerce of Sri Lanka, there is an increasing trend in trade and the balance of trade between the two parties has been in favour of Sri Lanka during last nine years.

Total trade between Sri Lanka and EU which was at $ 3 bn in 2004 rose $ 4,946.18 mn in 2012. Sri Lanka’s major export items to EU are apparel, diamonds, tea and rubber products.

EU is also one of the most diversified investors in Sri Lanka, with leading European companies operating in almost all sectors of economy-specially, FMCG, higher education, apparel, infrastructure, manufacturing, agro, technology and even in strategic development projects.

Such EU multinationals as Unilever and British American Tobacco are well embedded to Sri Lankan lifestyle with their decades long FMCG presence.

The UK, Germany, Italy, Belgium, France and Sweden are the leading EU members with investments in Sri Lanka. EU’s specific investment segments include hosiery, knitwear, surf sails, electronic products, light engineering, rubber based products, (e.g. tyres), coir based products, gem and jewellery, diamond processing, tourism and recreational products, security printing, infrastructure development, activated carbon, food processing, computer software, ICT etc. “EU is our number one global trade partner. Our bilateral trade volumes show continuous growth and it has become a major element in our relations.

We look for better trade levels and also thank EU for its on-going support not only on trade aspects but even in various development initiatives here” said Minister Bathiudeen.

“Our cooperation with Sri Lanka is wide ranging including the assistance in tsunami and development. Even bilateral trade levels are showing a rising trend” Amb. Savage added.

According to the EU delegation, more than $ 148 mn (€ 112 mn) also has been earmarked for Sri Lanka under the 2007-2013 “Development Cooperation Instrument”.

Source: http://www.dailynews.lk

June 24, 2013 – Considering Australia’s major potential in the air travel business, Sri Lanka’s national carrier, SriLankan Airlines has made its initial in-road by opening its airline office in the heart of Melbourne on Friday, June 21, 2013.

Sri Lanka is taking its first steps in advancing to realize a long standing need and ambition in the process of operating flights to Australia – the world’s largest island.

The office was officially opened and graced by G L Peiris, Minister of External Affairs and Namal Rajapaksa, Member of Parliament.

Also in attendance were Sri Lankan’s Chairman, Nishantha Wickremasinghe and Dillan Ariyawansa, CEO Sri Lanka Travel Inc.

Officials and representatives of Australia’s tour operators and travel agencies, particularly those in Melbourne, were also present.

“This is an important first step in our efforts to start direct flights to Australia, particularly in view of the large numbers of Sri Lankans and tourists whom we can serve on this route and beyond to our European, Middle Eastern and Indian destinations. This would also give us the opportunity to build strong partnerships to connect to serve more destinations within Australia” said Sri Lankan’s Chairman, Nishantha Wickremasinghe.

Sri Lanka’s aviation connections with Australia date back to the early 1950s when its national carrier, then Air Ceylon flew to Sydney and Darwin.

A new air services agreement was signed between Sri Lanka and Australia in May 2007.

Source: lbt.lk

June 21, 2013 – EoN Resorts (Pvt) Ltd, a Maldives-based resorts developer has applied to build a 170 million US dollar luxury hotel in Sri Lanka’s capital Colombo, the state information office said.

The cabinet of ministers had approved a joint proposal by investment promotion minister Lakshman Abeywardena and fisheries minister Rajitha Senaratne to site the project on Colombo’s D R Wijewardene Mawatha.

The project will be on land belonging to Cey-Nor Foundation, an enterprise coming under the fisheries ministry and state land on which an excise office is located at the moment.

The project involves a 45-storey building with a 300 room hotel catering to leisure and business travellers and 100 luxury apartments.

It will also have a 150,000 square feet shopping mall and a 2000 square feet food court

Source: www.lankabusinessonline.com

Jun 21, 2013 (LBT) – Sampath Bank PLC (SAMP) recently celebrated the success of its largest international loan transaction of US$ 100 million that was concluded in the first quarter of 2013.

Consequently, this deal which was launched for US$ 50 million was up-sized over two fold as the bank consciously decided to cap the final size to US$ 100 million to suit its cash flow requirements.

The transaction was facilitated by HSBC who acted as the lead arranger and book runner.

Source: lbt.lk

June 21, 2013Aitken Spence-managed Elpitiya Plantations PLC recorded Rs 507 mn as net profit before management fees for the 2012/13 financial year, its highest ever recorded. Profits soared by 194% from the previous year’s figure of Rs. 172mn while revenue grew by 13% to Rs 2.83bn.

The Company’s earnings per share rose by 201% to Rs. 6.20 and net assets per share recorded a growth of 23% to Rs. 33.51, from the previous year.

Elpitiya Plantations PLC consists of 13 estates, situated in the upper, mid and low country regions of Sri Lanka, cultivating tea, rubber, oil palm and coconut. The company has a significant stake in Sri Lanka’s only privately-owned palm oil mill and operates several mini-hydro power plants on its own estates.

At the point of takeover by blue-chip conglomerate Aitken Spence in 1997, Elpitiya Plantations was dependent on tea and facilities were in a dilapidated state. The new management embarked on a strategy of crop diversification, efficiency improvement and human resources development for the company’s growth.

New Peacock estate in mid-country and Talgaswela estate in low country were the highest contributors to Elpitiya’s exceptional performance during the financial year.

Dr Rohan M Fernando, Director and Head of Business Development & Plantations of Aitken Spence PLC and the Managing Director for Elpitiya Plantations PLC said, “Our strategies to optimally utilize the resources inherent in our estates and enhance the capabilities of our staff to generate sustainable growth to the company have proven fruitful. We will continue to look at ways to innovate in our cultivation and production processes as well as in our marketing, looking at new avenues for growth.”

New Peacock, Nayapana and Sheen estates achieved the highest ever recorded yield-per-hectare in tea, while Talgaswela estate recorded the highest ever palm oil yield-per-hectare. Tea prices of Dunsinane, New Peacock, Nayapana and Talgaswela estates improved above elevation averages with the better standard of leaf that was offered for manufacture.

The low country segment improved its productivity significantly from the crop diversification targeting low-income tea lands to palm oil and cinnamon. Continuous investments made by the company on re-cultivation of tea, rubber and palm oil have begun to pay dividends.

Company reaped substantial returns from on its mini-hydro power projects and from its investment in the joint-venture palm oil mill.

CEO and Director of Elpitiya Plantations PLC, Tony Goonewardena said, “Our emphasis on the management our human resources and sustainable development have been the foundations on which we have been able to generate exceptional growth for the company. I would like to express our appreciation to all associates in our estates who have made excellent contributions to make these results possible.”

“Elpitiya Plantations PLC pioneered in sending field staff on overseas training to Indonesia and we continue our policy of sending executive staff on overseas training, with the objective of strengthening our human resources,” he added. During the financial year, the company built twenty new houses for the estate employees at Meddacumbra estate with the help of PADEM and International Institute of Development Training.

Further twenty five houses were built at the Elpitiya estate with help of the National Housing Development Authority and the Plantations Human Development Trust.

Source: www.dailynews.lk