Colombo Stocks continue to fall

Commercial Bank of Ceylon shares fell sharply after their announcement to the Colombo Stock Exchange regarding oil hedging deal with Ceylon Petroleum Corporation. Commercial bank shares closed at Rs.69.50 (Down by 4.75)

All Share Index 1567.17 (-36.64)
Milanka Index 1740.54 (-61.12)
Turnover was Rs 56.4 Million.
Foreign Purchases Rs. 14.3 Million.
Foreign sales 18.8 Million.

Top Five Gainers (Closing Prices Rs.)

Blue Diamonds 0.40 (+33.33%)
Hunters 240.00 (+26.32%)
Colonial Motors 27.50 (+14.58%)
Reefcomber 0.80 (+14.29%)

Top Five Losers (Closing Prices Rs.)

Lanka Tiles 27.50 (-19.12%)
Radiant Gems 12.00 (-17.24%)
Serendib Hotels / Non Voting 13.75 (-14.06%)
Dipped Products 56.50(-12.06%)
Bogala Graphite 11.00 (-10.20%)

Announcements
CIC AGRI BUSINESSES (PVT.)

"Chemical Industries (Colombo) PLC, through its subsidiary CIC Agri Businesses (Private) Limited has recently commenced dairy development activities in the Eastern Province and Polannaruwa District. As a first step CIC Agri Businesses (Private) Limited singed an agreement with Mahaweli Livestock and Agro Enterprises (Pvt) Ltd, to manage two farms in Welikande and Punani. The main object is to develop the liquid milk industry in and around these farms which boost of a heritage in the dairy industry. The Company will be providing technical support and infrastructure for collection of milk, preservation and transport based out of these two farms.The companies' collection/production of milk which is around 600 to 800 liters a day would increase to more than 25,000 liters in a period of five years. The milk produced will be converted to added value forms which will be sold through marketing network in the Western Province and in the Metro cities. The program is also coupled with a maize and soya bean out grower network which would benefit the Livestock Industry. The investment is envisaged over a five year period and will be approximately over five hundred million"

CORPORATE DISCLOSURE OF INFORMATION - COMMERCIAL BANK'S WTI CRUDE OIL HEDGING CONTRACT WITH CPC

On 28 November 2008, the Supreme Court issued an Interim Order suspending the payment by Ceylon Petroleum Corporation (CPC) of the payments under CPC's oil hedging contracts.Commercial Bank has an outstanding "WTI Crude Oil Hedging Contract with CPC" due to expire on 30 June 2009. Commercial Bank has a continuing liability under its back-to-back hedge contract with its international counterparty. If the suspension of payments under this hedging contract continues, our liability under our contract to make payments to our back-to-back market risk counterparty would total USD 8.93 Million (Rs.982, 300,000 at today's exchange rate of Rs.110) if the price of WTI Crude Oil remains at the current price of USD 48 per barrel throughout the remaining period of this contractCommercial bank has obtained all required legal documentation to support this contract.