Downward Revision of Sri Lanka’s Outlook by Fitch Ratings is unwarranted

Press release – Central Bank of Sri Lanka

Sri Lankan authorities is issuing this statement in response to the revision of the outlook on Sri Lanka’s Foreign and Local Currency Issuer Default Ratings to Negative from Stable, while reaffirming the country’s both long-term and short- term default rating. It is clear that the revision is based on the rating agency’s pessimistic view on the various measures currently being implemented by the Sri Lankan authorities to raise external financing, and also its pessimistic views on external current account deficit and future economic growth prospects. According to Fitch Ratings, the revision reflects the concerns regarding the sovereign’s external financial position in light of the decline in reserves. While it is true that reserves have declined, it should be noted that it is a reflection of the consequences of global financial crisis which resulted in a global liquidity crisis leading to the drying up credit lines. By now, it is well known that the Central Bank had to provide foreign exchange to meet the demand arising from withdrawal of foreign investment in government securities and payment of large petroleum bills and thereby prevent undue volatility in the foreign exchange market. In fact, reserves had been built up by the Central Bank to face this type of contingent events. This has not been unique to Sri Lanka and similar decline in reserves has been experienced by many countries.
As admitted by Fitch Ratings, the Sri Lankan authorities have taken several measures to boost reserves, which are yielding desired results. Already one regional country has extended a Swap facility and negotiations with two other countries are at an advanced stage, and expected to be finalized soon. At the same time, Sri Lankans living overseas are positively responding to opportunities offered to invest in government securities and enhanced return on Non-resident foreign currency accounts. As a result, we expect substantial investment flows from these measures in the immediate future. The war on terror is also about to end, and an increased volume of remittances are expected for reconstruction and rehabilitation in newly liberated areas. Going forward, all these measures are expected to bring in substantial foreign inflows to the country and help build Sri Lanka’s official reserves to a very comfortable level before long.

The pessimistic view of Fitch Ratings is reflected in its assessment of the current account deficit of the BOP at 4.9% of GDP in 2009 which is considerably higher than the assessment of Sri Lankan Authorities (2.7%) as well as that of the Economic Intelligence Unit which is 2.1%. A significant decline in trade deficit is expected due to sharp decline in commodity prices, in particular petroleum. Therefore, a current account deficit of relatively small magnitude as estimated is expected to be quite manageable with anticipated financial inflows, especially, the steady flow of remittances. In fact, the remittances during 2009 are expected to remain steady in view of the nature of the Sri Lankan migrant workforce and the steps taken by authorities to direct them through official channels.

It is true that the recessionary conditions in advanced countries could have some impact on growth in 2009, but it is unlikely to bring growth down to 3 per cent projected by Fitch Ratings. Sri Lanka has fully liberated the Eastern province and the entire North is to be liberated soon. Accordingly, the work relating to rehabilitation and reconstruction will commence soon and a vast area will be available for productive activity and hence, the growth momentum will not be as pessimistic as projected by Fitch Ratings.

Turnover up but stock prices down marginally at Colombo Stock Exchange!

Market reacted negatively for Ceylinco Group shares as group chairman remanded on fraud allegations.

However large parcel of Ceylinco insurance traded today at Rs 163.00 to 163 per share contributing Rs 235.5 million. Today’s total market turnover was Rs 306.8 million.

ASI lost 4.46 points & closed at 1694.14 while Milanka index fell 5.61 points & closed at 1773.93.
Eagle Insurance & Asian Alliance Insurance gained Rs 9.00 & 3.75 respectively. Eagle insurance closed at Rs 120.00 while Asian Alliance closed at Rs 53.25.

Announcements

John Keells Holdings PLC - Acquisition of Shares of Union Assurance PLC

The Company has informed that Following the acquisition of 37.0% of the issued share capital of UAL on the 20th of February 2009, John Keells Holdings PLC has made the following acquisitions of shares of UAL on 26th February 2009.300 shares at Rs.69/-8,800 shares at Rs.70/-9,600 shares at Rs.71/-7,900 shares at Rs.71.50/-1,377,300 shares at Rs.72/-

INTERIM FINANCIAL REPORTS OF LISTED COMPANIES.

The following companies have released their Quarterly Financial Statements for the quarter ending 31st December 2008 to the CSE. These reports are available for free download from the relevant Company Profiles on the CSE website.LFIN,AUTO,JKH,CFI,KFP,CTC,HEXP,JKL,MRH,HASU,COCO,HAYC,KHL,RHL,HAYL,LVEN,SUGA,TSML,AHPL,CCS,CIT,DIPD,HOPL,LIOC,TRAN,CIC,HEXP,MGT,UAL,SPEN,AHUN,SMOT,CFLB,PARQ,HHL,RCL,TYRE,CPRT,PARA,KZOO,OFEQ,NEST,COLO,MULL,CLND,NHL,RGEM,BOGA,NDB.CHL,GREGReleased to the market on 20-02-2009 - CTLD, HUNA, LHL, LWL, CHMX, LPRT, SHOT, SING, STAF & YORKReleased to the market on 24-02-2009 - PDL, KHC, MIRA, SWAD, TAJ, DFCC, PMB, DIAL & SIL.Released to the market on 25-02-2009 - BLUE, LMF, CABO, PHAR, RGEM, RENU, UCAR & LWL(AMENDED)Released to the market on 26-02-2009 - CHOT, HDFC, KAPI, NEH, SFCL, SUN, WATA, VLL, REEF, UML, SLND, BFL, BRWN, MORI, DIMO, RICH, ABAN, KGAL, MASK, AEC, SLTL, NAMU, REXP Released to the market on 27-02-2009 - ALLI, ARPI, CFT, MSL, GEST, BOC, LHCL, ASPH, BINN

Colombo Stock Market declined marginally.

ASI fell 7.70 points to close at 1698.60 while more liquid MPI lost 9.17 points to close at 1779.54. Turnover was Rs 275.2 million boosted by JKH buying of its subsidiary & associate company shares.

There were 46 gainers & 45 losers during the day. Ceylinco insurance nonvoting shares gained Rs 5.75 to close at Rs 90.50.

Aitken Spence Plc closed Rs 17.00 lower at Rs 358.00.

Announcements

ACQUISITION OF SHARES ON 20TH FEBRUARY 2009 BY JOHN KEELLS HOLDINGS PLC

The following Companies have informed CSE that the undermentioned transactions were done on the 20th February 2009 by John Keells Holdings PLCAcquisition of Shares in Ceylon Cold Stores PLC JKH has acquired 2,556,611 shares from Ceylon Guardian Investment Trust PLC at Rs.115/- per share & 1,804,700 shares from Ceylon Investment PLC at Rs. 115/- per share.Total shares bought 4,361,311Acquisition of Shares in John Keells PLC JKH has acquired 743,900 shares from Ceylon Guardian Investment Trust PLC at Rs.60/- per share & 913,400 shares from Ceylon Investment PLC at Rs. 60/- per share.Total shares bought 1,657,300Acquisition of Shares in Union AssuranceJKH has acquired 3,739,108 shares from Ceylon Guardian Investment Trust PLC at Rs.72/- per share, 3,308,850 shares from Ceylon Investment PLC at Rs. 72/- per share & 6,817,007 shares from Carson Cumberbatch PLC at Rs. 72/- per share.Total shares bought 13,864,965

ALLOTMENT OF ORDINARY SHARES OF CENTRAL HOSPITALS (PRIVATE) LIMITED - ASIRI HOSPITALS PLC

The Board of Directors of the Asiri Hospitals PLC ("the Company") at a meeting held on 25th February 2009 at 4.00 p.m. resolved to convert a loan and accrued interest of Rupees Seventy Three Million Eight Hundred and Ninety One Thousand Seven Hundred and Eighty (Rs.73,891,780/-) which was due and owing from Central Hospitals (Private) Limited into ordinary shares of the said company. Consequent to such conversion, the Company has been allotted Seven Million Three Hundred and Eighty Nine Thousand One Hundred and Seventy Eight (7,389,178) Ordinary shares of Central Hospitals (Private) Limited at a price of Rupees Ten (Rs.10/-) per ordinary share.Consequent to such allotment, the Company now owns 8.28% of the issued ordinary share capital of Central Hospitals (Private) Limited. The other substantial shareholders of Central Hospitals (Private) Limited areAsiri Central Hospitals PLC - 83.51%Asiri Surgical Hospital PLC - 8.21%

ALLOTMENT OF ORDINARY SHARES OF CENTRAL HOSPITALS (PRIVATE) LIMITED - ASIRI SURGICAL HOSPITAL PLC

The Board of Directors of the Asiri Surgical Hospital PLC ("the Company") at a meeting held on 25th February 2009 at 5.00 p.m. resolved to convert a loan and accrued interest of Rupees Seventy Three Million One Hundred and Ninety One Thousand Four Hundred and Thirty (Rs.73,191,430/-) which was due and owing from Central Hospitals (Private) Limited into ordinary shares of the said company. Consequent to such conversion the Company has been allotted Seven Million Three Hundred and Nineteen Thousand One Hundred and Forty Three (7,319,143) Ordinary shares of Central Hospitals (Private) Limited at a price of Rupees Ten (Rs.10/-) per ordinary share.Consequent to such allotment the Company now owns 8.21% of the issued ordinary share capital of Central Hospitals (Private) Limited. The other substantial shareholders of Central Hospitals (Private) Limited areAsiri Central Hospitals PLC - 83.51%Asiri Hospitals PLC - 8.28%

ACME Printing and Packaging PLC

The Company informed that Acme Packaging Solutions (Pvt) Limited a subsidiary of Acme Printing and Packaging PLC has resolved today.The company informed the following "That 2,285,714 ordinary shares be allotted to Acme Printing and Packaging PLC at Rs. 14/- per share for a total consideration of Rs. 31,999,996/-, which amount is the cost over-run of the project at Pannala financed by Acme Printing and Packaging PLC, and which in the opinion of the Board is fair and reasonable to the Company and all existing shareholders."

DIVIDEND ANNOUNCEMENTS

FINLAYS COLOMBO PLC Company ID:- JFINDate of Announcement:- 25.Feb.2009Rate of Dividend:- Rs.1.50 per Share - Final DividendFinancial Year:- 2008AGM:- 30.Mar.2009XD:- 31.Mar.2009 Payment:- 06.Apr.2009 Share Transfer Book Open

Colombo Stocks fell again on negative cooperate results

Most of listed companies are releasing their results for the year ended 31st December 2008.

Majority of them are reporting losses due to economic situation prevailed last year. Dialog Telekom reported the biggest loss of Rs. 3.9 billion for the quarter ended 31st Dec 2008.

All Share index declined 20.61 points to close at 1706.30 & Milanka index also lost 45.17 points to close at 1788.71.

Turnover was Rupees 106.2 million.

Ceylon Tobacco Co. Plc closed Rs 5.00 higher at Rs 95.00. John Keeels Holdings closed Rs 3.75 lower at Rs 61.00.

Announcements

ACME Printing and Packaging PLC

The Company informed that Acme Packaging Solutions (Pvt) Limited a subsidiary of Acme Printing and Packaging PLC has resolved today.The company informed the following "That 2,285,714 ordinary shares be allotted to Acme Printing and Packaging PLC at Rs. 14/- per share for a total consideration of Rs. 31,999,996/-, which amount is the cost over-run of the project at Pannala financed by Acme Printing and Packaging PLC, and which in the opinion of the Board is fair and reasonable to the Company and all existing shareholders."

DIVIDEND ANNOUNCEMENTS

LANKA TILES PLC Company ID:- TILEDate of Announcement:- 25.Feb.2009Rate of Dividend:- Rs.1.00 per Share - Interim DividendFinancial Year:- 2008/09Dates to be notifiedTALAWAKELLE TEA ESTATES PLC Company ID:- TPLDate of Announcement:- 25.Feb.2009Rate of Dividend:- Rs.1.25 per Share(Subject to 10% dividend tax) - First & Final DividendFinancial Year:- 2008AGM:- 30.Mar.2009XD:- 31.Mar.2009 Payment:- 06.Apr.2009 Share Transfer Book Open REGNIS (LANKA) PLC Company ID:- REGDate of Announcement:- 24.Feb.2009Rate of Dividend:- Rs.2.50 per Share - Final DividendFinancial Year:- 2008AGM:- 31.Mar.2009XD:- 01.Apr.2009 Payment:- 06.Apr.2009 Share Transfer Book Open NESTLE LANKA PLC Company ID:- NESTDate of Announcement:- 24.Feb.2009Rate of Dividend:- Rs.10.00 per Share-Second Interim DividendFinancial Year:- 2008XD:- 16.Mar.2009 Payment:- 26.Mar.2009 Share Transfer Book Open SINGER INDUSTRIES(CEYLON) PLC Company ID:- SINIDate of Announcement:- 24.Feb.2009Rate of Dividend:- Rs.2.00 per Share - Final DividendFinancial Year:- 2008AGM:- 31.Mar.2009XD:- 01.Apr.2009 Payment:- 06.Apr.2009 Share Transfer Book Open PROPERTY DEVELOPMENT PLCCompany ID:- PDLDate of Announcement:- 30.Jan.2009Rate of Dividend:- Rs.2.00 per Share - First & Final DividendFinancial Year:- 2008AGM:- 18.Mar.2009XD:- 19.Mar.2009 Payment:- 25.Mar.2009 Share Transfer Book Open

Sri Lanka Stocks Down!

Colombo All Share index closed 7.50 points lower at 1726.91 while MPI closed 9.84 points lower at 1833.88.

Turnover was very low at Rs 65.5 Million.
There were 26 gainers & 72 losers during the day.

Ceylon Tobacco Company PLC was up by Rs 4.00 to close at Rs 90.00. Colombo Dockyard closed Rs 3.25 higher at Rs 62.25.

Sri Lanka Telecom ended the day 25 cents lower at Rs 35.00.

Announcements

EXPORT ORDER - DANKOTUWA PORCELAIN PLC

Company has informed CSE that Crate and Barrel of USA who has been doing business with the company since 1998 have stopped placing orders with the company with effect from March 2009. During the past 3 years on average they have purchased goods to the value of USD 1 million per annum.For 2008 this amounted to approximately 9% of the export turnover. The company have made an effort to have this business relationship restored but have been unsuccessful.This is disclosed in terms of section 9.1 of the CSE listing rules as the company considers it a significant loss of an export order.

DIVIDEND ANNOUNCEMENTS

OVERSEAS REALTY (CEYLON) PLC Company ID:- OSEADate of Announcement:- 24.Feb.2009Rate of Dividend:- Rs.0.40 per Share - First & Final DividendFinancial Year:- 2008AGM:- 26.Mar.2009XD:- 27.Mar.2009 Payment:- 02.Apr.2009 Share Transfer Book Open COLOMBO DOCKYARD PLC Company ID:- DOCKDate of Announcement:- 20.Feb.2009Rate of Dividend:- Rs.7.00 per Share - First & Final DividendFinancial Year:- 2008AGM:- 27.Mar.2009XD:- 30.Mar.2009 Payment:- 31.Mar.2009 Share Transfer Book Open ASIAN ALLIANCE INSURANCE PLC Company ID:- AAICDate of Announcement:- 19.Feb.2009Rate of Dividend:- Rs.1.25 per Share - Final DividendFinancial Year:- 2008AGM:- 26.Mar.2009XD:- 27.Mar.2009 Payment:- 02.Apr.2009 Share Transfer Book Open KELANI VALLEY PLANTATIONS PLC Company ID:- KVALDate of Announcement:- 20.Feb.2009Rate of Dividend:- Rs.3.50 per Share - First & Final Dividend(Rs. 3.27 per share - Liable to 10% Dividend Tax, Rs.0.23 per share - Not liable to 10% Dividend Tax) Financial Year:- 2008AGM:- 31.Mar.2009XD:- 01.Apr.2009 Payment:- 07.Apr.2009 Share Transfer Book Open Company :- Sampath Bank PLC (SAMP)Date of Announcement:- 18.Feb.2009Rate of Dividend:- Rs.4.00 per Share-First & Final DividendFinancial Year:- 2008AGM :- 31.Mar.2009XD:- 01.Apr. 2009 Payment:- 06.Apr.2009 Share Transfer Book will be closed from 30th March 2009 to 31st March 2009-12 noon(both days inclusive) Company :- National Development Bank PLC (NDB)Date of Announcement:- 18.Feb.2009Rate of Dividend:- Rs.6.75 per Share-Final Dividend Financial Year:- 2008AGM :- 30.Mar.2009XD:- 31.Mar. 2009 Payment:- 06.Apr.2009 Share Transfer Book OpenCompany :- Sri Lanka Telecom PLC (SLTL)Date of Announcement:- 18.Feb.2009Rate of Dividend:- Rs.1.00 per Share-First & Final Dividend Financial Year:- 2008AGM :- 27.Mar.2009XD:- 30.Mar. 2009 Payment:- 03.Apr.2009 Share Transfer Book Open

John Keels Holdings increased controlling stake in their own subsidiary & associate companies.

ASI & MPI gained 9.99 points & 6.40 points respectively to end at 1734.41 & 1843.72.

Turnover sky rocketed to Rupees 1.68 billion mainly due to JKH buying of Union Assurance Plc, Ceylon Cold Stores Plc & John Keels Plc (Stock broking subsidiary).

There were 52 gainers & 39 losers.

Announcements

Acquisition of Shares in Union Assurance PLC, Ceylon Cold Stores PLC & John Keells PLC

John Keells Holdings PLC (JKH) wishes to announce that it has acquired on the CSE the following shares in its associate & subsidiary companies for a total consideration of Rs. 1,599,909,965.13,864,965 shares (37%) of Union Assurance PLC at Rs. 72 per share4,361,311 shares (20.2%)of Ceylon Cold Stores PLC at Rs. 115 per share1,657,300 shares (10.9%) of John Keells PLC at Rs. 60 per shareFurther to the above acquisitions, JKH's shareholding in John Keells PLC will increase to 86.9% & the John Keells Group shareholding in Union Assurance PLC & Ceylon Cold Stores PLC will increase to 73.9% & 80.5%, respectively.JKH will be making a mandatory offer for the remaining shares of Union Assurance PLC not held by JKH under Section 31 of the Company Take-Overs & Mergers Code 1995.

Heavy foreign activity in Dialog Telekom.

Colombo All share index was down by 13.52 points to close at 1724.42. Turnover was rupees 156.6 million boosted by Dialog transaction of 6.8 million shares.

Sri Lanka Telecom closed 50 cents lower at Rs 34.75 while John Keels Holdings ended the day 50 cents higher at Rs 65.25.

Announcements

Announcement made by the Board of Commercial Bank of Ceylon PLC under Direction 3(2) (xi) of the Banking Act Directions No. 11 of 2007, subsequently amended Name of Director Resigned - Mr. A N Fonseka

In terms of Direction No. 3(2) (xi) of the Banking Act Direction No. 11 of 2007, subsequently amended, the company announced the following, with regard to the relinquishing of office by Mr. A N Fonseka from the Board of Commercial Bank of Ceylon PLC:-a) Mr. A N Fonseka relinquished office as one of the Nominee Directors of DFCC Bank on the Board of Commercial Bank of Ceylon PLC, on 31st January 2009, as already informed by the company, on completion of 9 years as a Director in the Bank, as required by the Banking Act Direction on Corporate Governance issued by the Monetary Board of the Central Bank of Sri Lanka.b) The company confirmed that there were no matters which need to be brought for the attention of the shareholders, in this connection.

Sri Lanka shares down but high turnover

Colombo market ended red despite heavy turnover with foreign activity. ASI lost 6.99 points to close at 1737.94 while Milanka index closed 14.55 points lower at 1850.53.

Turnover was high at Rupees 619.3 million. Foreigners bought Rs 573.4million worth of shares & sold Rs 554.6 million.

High foreign activity reported in Dialod.JKH & Tokyo Cement shares.

Dividend Announcements

Company :- Sampath Bank PLC (SAMP)Date of Announcement:- 18.Feb.2009Rate of Dividend:- Rs.4.00 per Share-First & Final DividendFinancial Year:- 2008AGM :- 31.Mar.2009XD:- 01.Apr. 2009 Payment:- 06.Apr.2009 Share Transfer Book OpenCompany :- National Development Bank PLC (NDB)Date of Announcement:- 18.Feb.2009Rate of Dividend:- Rs.6.75 per Share-Final Dividend Financial Year:- 2008AGM :- 30.Mar.2009XD:- 31.Mar. 2009 Payment:- 06.Apr.2009 Share Transfer Book OpenCompany :- Sri Lanka Telecom PLC (SLTL)Date of Announcement:- 18.Feb.2009Rate of Dividend:- Rs.1.00 per Share-First & Final Dividend Financial Year:- 2008AGM :- 27.Mar.2009XD:- 30.Mar. 2009 Payment:- 03.Apr.2009 Share Transfer Book OpenCompany :- Nations Trust Bank (NTB)Date of Announcement:- 17.Feb.2009Rate of Dividend:- Rs.1.50 per Share-First & Final Dividend Financial Year:- 2008AGM :- 30.Mar.2009XD:- 31.Mar. 2009 Payment:- 06.Apr.2009 Share Transfer Book OpenCompany :- E B Creasy & Co. Ltd. (EBCR) Date of Announcement:- 17.Feb.2009Rate of Dividend:- Rs.2.00 per Share-First & Final Dividend Financial Year:- 2007/2008AGM :- 27.Mar.2009XD:- 30.Mar. 2009 (Corrected)Payment:- 03.Apr.2009 Share Transfer Book OpenCompany :- Hatton National Bank (HNB)Date of Announcement:- 13.Feb.2009Rate of Dividend:- Rs.3.00 per Share-Final Dividend(Voting & Non-Voting) Financial Year:- 2008AGM:- 31.Mar.2009XD:- 01.Apr.2009 Payment:- 07.Apr.2009 Share Transfer Book OpenCompany :- Chemanex PLC (CHMX) Date of Announcement:- 12.Feb.2009Rate of Dividend:- Rs.6.00 per Share-Interim Dividend Financial Year:- 2008/2009XD:- 04.Mar. 2009 Payment:- 17.Mar.2009 Share Transfer Book Open

Colombo stocks ended down as most Asian markets closed red.

ASI closed 7.05 points lower at 1744.93 while MPI closed 6.10 lower at 1865.08.
Heavy trading in Dialog & JKH boosted the turnover to Rs 244.2 million.

Dialog ended flat at Rs 5.00 but 6.7 million shares traded. John Keels Holdings contributed Rs 96.4 million to total market turnover by trading 1,483,400 shares.

Sri Lanka Telecom was down by 25 cents to close at Rs 35.00.

Announcements

Press Publication - Chevron Lubricants Lanka PLC

The Company has written to the CSE with regard to a press article in the Business Section of the Daily News of 17th February, under the caption "Caltex makes headway in Bangladesh, Maldives"They have clarified that,1) The Company has recorded increased export volumes to Bangladesh and Maldives by 60% and 20% respectively compared to 2007.2) The Rs. 3 billion contribution to the government (estimated amount for 2008) by way of taxes is inclusive of duties, sales taxes, income tax and other levies, and the comparison of this figure with the profits of the Company and the ratio mentioned in the press article has been a misinterpretation by the writer.

Default Board Transfer Out - Lankem Ceylon PLC (LCEY)

The above company will be transferred from the Default Board with effect from 17-02-2009.

SAMPATH BANK PLC -DIVIDEND

Company ID:- SAMPDate of Announcement:- 17.Feb.2009Rate of Dividend:- Rs.4.00 per Share-First & Final DividendFinancial Year:- 2008Dates to be notified

Market gained marginally on low turnover

ASI was up by 3.84 points to close at 1751.98 & MPI was 4.41 points to close at 1871.18.
Turnover was only Rs 64.5 million.

Ceylinco Seylan Development Plc (CSD) closed one rupee higher at Rs 8.00 with trade volume of 1,831,600 shares. CSD contributed Rs 14.27 million to the total market turnover.

There were 50 gainers & 51 losers during the day.
Foreigners were net sellers with Rs 7.4 million purchases & 10.7 million sales.

Colombo Stock Market Indices – Up & Down!

All share index fell marginally (1.25 points) to end at 1748.14 while MPI was up by 8.92 points & closed at 1866.77.

Turnover was Rs 61.2 million.

Lanka Indian Oil shares closed 1.25 higher at 18.75. John Keels Holdings up by 25 cents to close at Rs 65.50.

Meanwhile Sri Lanka Telecom fell 75 cents to close at Rs 35.00.

Announcements

HATTON NATIONAL BANK PLC - DIVIDEND

Company ID:- HNBDate of Announcement:- 13.Feb.2009Rate of Dividend:- Rs.3.00 per Share-Final Dividend(Voting & Non-Voting) Financial Year:- 2008AGM:- 31.Mar.2009XD:- 01.Apr.2009 Payment:- 07.Apr.2009 Share Transfer Book Open

Acquiring a Controlling Interest of a Licensed Merchant Bank in Bangladesh - National Development Bank PLC

Pursuant to the fulfillment of Pre investment conditions, National Development Bank PLC (NDB) has now made an investment in Capital Market Services Limited Bangladesh ('investee company') whereby NDB has now acquired a controlling interest in the investee company.(Date of Announcement:- 13.Feb.2009)

Negative trend continues at CSE

Both ASI & MPI were down by 12.54 points & 26.84 points respectively.

Closing figures
ASI 1749.39
MPI 1857.85

John Keels Holdings was up by 2.25 to close at Rs 65.25. Dialog closed 25 cents lower at Rs 5.00.
Turnover recorded for the day was Rs 106.5 million.

JKH contributed Rs 39.8 million for the today’s market turnover with 685400 shares.

Two indices ended two different ways.

11-02-2009.

ASI was down by 3.95 points to close at 1761.93 while Milanka index closed 9.69 points higher at 1884.69.

Turnover was Rs 92.2 million.

Ceylinco Seylan Development was the highest traded stocks today with 1,029,600 shares were traded at Rs 7.00.

Commercial bank of Ceylon was up by Rs 2.75 & closed at Rs 93.00.

Announcements

EAGLE INSURANCE PLC - DIVIDEND

Company ID:- CTCEDate of Announcement:- 11.Feb.2009Rate of Dividend:- Rs.7.00 per share- First & Final Dividend Financial Year:- 2008AGM:- 30.Mar.2009XD:- 31.Mar. 2009 Payment:- 03.Apr.2009 Share Transfer Book Open

UNION ASSURANCE PLC - DIVIDEND

Company ID:- UALDate of Announcement:- 11.Feb.2009Rate of Dividend:- Rs.3.25 per share - First & Final Dividend Financial Year:- 2008AGM:- 31.Mar.2009XD:- 01.Apr. 2009 Payment:- 07.Apr.2009 Share Transfer Book Open

SIGIRIYA VILLAGE HOTELS PLC - RIGHTS ISSUE

Company ID :- SIGVDate of Announcement :- 11.Feb.2009Proportion:- 01 (One) for 01 (One) Issue Price:- Rs.20.00The number of shares to be issued: 3,478,950Current Stated Capital: Rs. 106,301,215Purpose of issue:- The proceeds of the issue will be utilized to reduce the Working Capital deficit of the Company.

Colombo Stocks Up!

ASI index up by 3.77 points to close at 1765.88 & MPI gained 28.39 to close at 1875. Turnover was Rs 83.2 million.

Lanka Cement Plc continued to trade actively with over two million shares traded & closed 75 cents higher at Rs. 14.50.

Dialog Telekom gained 25 cents & ended the day at Rs 5.25 while John Keels Holdings closed Rs 2.50 higher at 62.00.

Announcements

INTERIM FINANCIAL REPORTS OF LISTED COMPANIES.

The following companies have released their Quarterly Financial Statements for the quarter ending 31st December 2008 to the CSE. These reports are available for free download from the relevant Company Profiles on the CSE website.Released to the Market on 12-01-2009 - LFINReleased to the Market on 16-01-2009 - AUTOReleased to the Market on 29-01-2009 - JKHReleased to the Market on 30-01-2009 - CFI,KFP & CTC, Released to the Market on 02-02-2009 - HEXP, JKL, MRH & HASUReleased to the Market on 03-2-2009 - COCO, HAYC, KHL & RHLReleased to the Market on 05-02-2009 - HAYL, LVEN, SUGA & TSMLReleased to the Market on 06-02-2009 - AHPL, CCS, CIT, DIPD, HAYC, HOPL, LIOC & TRAN

Mixed results at Colombo Stock Exchange

Colombo ASI gained 6.64 points to close at 1762.11 but MPI was declined 4.1 points & closed at 1846.61.

Turnover was Rs 91.4 million boosted by heavy trading in Dialog, Lanka cement & John Keels Holdings.

Dialog ended the day unchanged at Rs 5.00 while JKH closed 75 cents higher at Rs 59.50. Lanka cement gained further one rupee & closed at Rs 13.75.
Sri Lanka Telecom gained 75 cents & closed at Rs 37.00.

There were 52 gainers & 41 losers.

Investors should think any short term down in the market as a buying opportunity. Colombo market is ready to take off to high levels in near future as 30 year war at ending stage.

Colombo Shares Down by 2.56%

05-02-2009.

ASI was down by 46.12 to end at 1755.47 while more sensitive MPI was down by 84.97 points & ended at 1850.71.

Turnover was Rs 92.6 million.

There were 19 gainers & 108 losers indicating negative activity. This may be due to profit taking by investors on past week gains.

Price declines in Dialog, JKH & SLT was the main reason for the massive drop in indices.

Announcements
AMALGAMATION OF ECO - FIBERS (PVT) LTD (FULLY OWNED SUBSIDIARY OF HAYLEYS EXPORTS PLC) WITH HAYLEYS EXPORTS PLC

Company informs that under the Section 242 of the Companies Act No.7.2007, Eco - Fibers (Pvt) Ltd (EFL), a fully owned subsidiary of Hayleys Exports PLC will be amalgamated with Hayleys Exports PLC (HEP) with effect form 9th March 2009 or at a later date which will be determined by the Registrar General.The management of both Companies are of the opinion that it would be of administrative and financial benefit to operate the companies as one entity and for HEP to take over the business of EFL.The company has also taken into consideration inter alia;1.The amalgamation of EFL and HEP in terms of section 242(1) of the Companies Act No.7 of 2007 is approved by the Directors of both Companies and also in terms with the Articles of Association of both companies.2.The shares of EFL will be cancelled without payment and the shares of HEP shall remain unaltered. The Registrar shall remove all the particulars of EFL from the Register maintained at the Registrar of companies.3.The board is satisfied that HEP, will satisfy the solvency test immediately after the amalgamation becomes effective.

SEYLAN BANK PLC (BANK) - DEBENTURE ISSUE

The debentures of the above Bank will be listed on 10th February 2009 on the Debt Securities- Main Board of the CSE.The assigned securities codes are as follows:Debenture Type - Security CodeFixed rate debentures (20.5% p.a.) payable monthly - SEYB.D0141Fixed rate debentures (21.5% p.a.) payable annually- SEYB.D0142Variable rate debentures payable quarterly - SEYB.D0143Variable rate debentures payable annually - SEYB.D0144Deposits would be accepted by the Central Depository Systems (Pvt.) Ltd., (CDS) with immediate effect.

LANKEM CEYLON PLC-Dividend Dates

Company ID:- LCEYDate of Announcement:- 05.Feb.2009Rate of Dividend:- Rs.1.80 per share-First & Final Dividend Financial Year:- 2007/2008AGM:- 16.Mar.2009XD:- 17.Mar. 2009 Payment:- 23.Mar.2009 Share Transfer Book Open

Sri Lanka shares down marginally!

All share index fell 2.30 points to end at 1801.59while MPI was down by 14.22 points & ended at 1935.68.

Turnover was Rs 92.17 million.

There were 88 losers & only 23 gainers.
Investors are waiting for positive news from economic or war front.

Flowing companies released their quarterly accounts.

Hayleys Exports PLC

HNB Assurance PLC

Haycarb PLC

John Keels Hotels PLC

Announcements

HOTEL SERVICES (CEYLON) PLC - DIVIDEND

Company ID:- SERVDate of Announcement:- 03.Feb.2009Rate of Dividend:- Rs.1.20 per share - First Interim Dividend Financial Year:- 2008/2009XD:- 20.Feb. 2009 Payment:- 05.Mar.2009 Share Transfer Book Open

Overseas operations keep Haycarb on target in 3rd quarter

News Release
Continuing strong contributions from overseas operations and higher prices for its products have helped Haycarb PLC to cope with pressure on its local manufacturing operations in the nine months ending December 31, 2008, enabling the Hayleys Group’s activated carbon manufacturing business to stay on target in unfavourable conditions.

A shortage of coconut shells for conversion to charcoal, its main raw material in Sri Lanka, has resulted in production falling by 12 per cent in the review period, but the Group comprising manufacturing operations in Sri Lanka, Thailand and Indonesia has posted a turnover of Rs 3.4 billion, a growth of 12 per cent over the corresponding period of the previous year.

Local manufacturing continued to be pressured by higher prices for local inputs, particularly raw materials, resulting in the Group’s Cost of Sales growing 17 per cent to Rs 2.6 billion and significantly eroding margins, the company said.

In results released to the Colombo Stock Exchange this week, Haycarb reported that profit before tax had declined 19 per cent to Rs 226 million while profit after tax, including gains from discontinued operations, had dipped 20 per cent to Rs 184 million. However, since the post tax profit of Rs 230 million reported in the corresponding nine months of 2007-08 had included an extraordinary capital gain of Rs 66 million, the Group’s bottom line performance for the period under review reflects an improvement of 12 per cent after discounting capital gains of the previous year.

Commenting on these results, Haycarb Managing Director Ananda Hettiarachchy said: “Our Sri Lankan operations are facing extremely tough conditions but we are cautiously optimistic that our operations in Indonesia and Thailand will to some extent mitigate the impacts of unrealistic exchange rates, high inflation and raw material shortages in Sri Lanka.”
Notable among the positive developments at Haycarb was the Group’s ability to reduce net finance costs by 71 per cent to Rs 23 million in the nine months reviewed and to contain the growth of administrative expenses to 5 per cent.

“A great deal has been done to counter the adverse factors beyond our control with tighter management,” Mr. Hettiarachchy added.

Incorporated in 1973, Haycarb is the pioneer manufacturer of activated carbon in any coconut producing country with an installed capacity of more than 22,000 MT per annum. The company has marketing offices in UK, Australia and USA. Its product range covers standard, washed, and impregnated carbons in granular, pellet and powder form.

The Board of Directors of Haycarb PLC comprises Messrs N. G. Wickremeratne (Chairman), A. M. Pandithage (alternate: R. A. Ebell), A. Hettiarachchy (Managing Director), R. P. Peris, L. K. B. Godamunne, A. M. Senaratna and R Seevaratnam.

Colombo Stocks Down!

02-02-2009.

Market declined mainly due to price decline in John Keels Holdings, Sri Lanka Telecom & Commercial Bank of Ceylon PLC.

ASI closed the day 17.35 points lower at 1803.89 while Milanka ended the day at 15.08 points lower at 1949.90.

Total market turnover recorded during the day wasRs131.4 million.

Lanka Cement continued to as a favorite stock among investors & 445200 shares traded within price range of Rs 13.00 to 13.75 but closed at Rs 13.00.

Announcements

COLONIAL MOTORS PLC -Dividend Dates

Company ID:- COLODate of Announcement:- 02.Feb.2009Rate of Dividend:- Rs.0.50 per share-First & Final Dividend Financial Year:- 2008/2009 AGM:- 18.Mar.2009XD:- 19.Mar. 2009 Payment:- 25.Mar.2009 Share Transfer Book Open

CEYLON TOBACCO COMPANY PLC - DIVIDEND

Company ID:- CTCDate of Announcement:- 02.Feb.2009 Rate of Dividend:- Rs.2.13 per share (Less Withholding Tax) - Final Dividend Financial Year:- 2008 XD:- 26.Mar. 2009 Payment:- 01.Apr.2009 Share Transfer Book Open

HNB Assurance PLC - Dividend

Company ID:- HASUDate of Announcement:- 02.Feb.2009 Rate of Dividend:- Rs.1.25 per share-First & Final Dividend Financial Year:- 2008 XD:- 31.Mar. 2009 Payment:- 06.Apr.2009 Share Transfer Book Open