News
Colombo share market gallops to all time highs
The Colombo Stock Exchange (CSE) galloped last week with the benchmark All Share Price Index (ASPI) hitting an all time high on Monday and improving on that performance on subsequent trading days to close the week at 8,463 points on Friday. The more liquid S&P Index that normally trails the ASPI also gained sharply though less so than the benchmark index.
Brokers and analysts attributed the surge to prevailing low interest rates and said that people holding funds in fixed interest instruments have seen greater potential in the stock market and have so far not been proved wrong.
“Take the case of vehicle importers,” said one businessman. “With imports disallowed, cash that would have been once used to replenish inventory becomes available for investment elsewhere. The stock market is a magnet for such funds.”
Also, many companies have resorted to a share split strategy to make their shares both more liquid and more affordable on the market.
“Take the example of a fifty-rupee share split into two. Theoretically, it should then trade at Rs. 25 a share after the split. But often it does better than that at no cost to the company that had split the share because its stated capital remains what it was,” explained and analyst.
“It’s different in the case of bonus shares or scrip issues as they are called where reserves are capitalized to pay for the new shares priced at realistic values.”
Last week the Hayleys conglomerate announced share splits in over a dozen group companies. These ranged from each share being split into ten in the parent company (Hayleys) and thriving subsidiaries like Haycarb and Dipped Products while other companies like Kingsbury split a share into two.
Brokers and analysts said that the current market surge was largely driven by the Dhammika Perera controlled Hayleys and the Ishara Nanayakkara controlled LOLC groups.
Last week Hayleys announced over a dozen share splits including in its recently acquired Singer Group companies. The majority of these involved dividing each share into two though at Singer Sri Lanka each share will be split into three.
The biggest share split ever proposed is one that is pending at EB Creasy (EBC) where each share is to be split into 100. The seldom traded EBC share is quoted at the top end of the CSE sharelist. Analysts said the massive split is intended to pump liquidity into the share and make it more affordable.
“There’s a lot of retail play in the market right now with new investors who recently took some risk doing very nicely in this bull run,” a broker said.
The CSE hit rock bottom after a seven-week closure in March last year.
News
Govt. urged to withdraw Media Professionals Bill
The Sri Lanka Press Institute (SLPI) and several leading media organisations have expressed strong opposition to the proposed Chartered Institute of Media Professionals of Sri Lanka (CIMP) Bill, urging the Government to withdraw the legislation and engage in consultations with stakeholders.
In a joint statement, the SLPI, together with its constituent organisations—the Newspaper Society of Sri Lanka (NSSL), the Editors’ Guild of Sri Lanka (TEGOSL), the Free Media Movement (FMM) and the Sri Lanka Working Journalists Association (SLWJA)—as well as affiliated bodies including the Muslim Media Forum (MMF), the Tamil Media Alliance (TMA), the Federation of Media Employees Trade Union (FMETU) and the South Asia Free Media Association (SAFMA) – Sri Lanka Chapter, said their primary objection was the government-led nature of the proposed institute.
Full text of the statement: The Sri Lanka Press Institute (SLPI), and its constituent partners, the Newspaper Society of Sri Lanka (NSSL), The Editors’ Guild of Sri Lanka (TEGOSL), the Free Media Movement (FMM), the Sri Lanka Working Journalists Association (SLWJA) together with its affiliated organizations, the Muslim Media Forum (MMF), the Tamil Media Alliance (TMA), The Federation of Media Employees Trade Union (FMETU), the South Asia Free Media Association’s SL Chapter (SAFMA) object the proposed Chartered Institute of Media Professionals of Sri Lanka (CIMP) Bill.
Our primary objection stems from the government-led nature of this initiative. History shows that robust professional bodies, such as the Institute of Engineers and the Sri Lanka Institute of Architects, were founded and drafted by the professionals themselves before being incorporated by Parliament. In contrast, the CIMP is a state-driven project ordered to be published by the Minister of Health and Mass Media despite objections raised by media’s professional bodies. We view this as an attempt to impose a state-managed regulatory framework upon a profession that must remain independent of government interference to function effectively.
The SLPI, its constituents and affiliated organizations maintain that professional media standards must be self-regulated in principle and led by the media community, not mandated by law under ministerial oversight. The SLPI has presented an alternative mechanism, viz., the Sri Lanka Media Commission (SLMC), based on co-regulatory and self-regulatory principles, which improves professionalism. In addition, the Sri Lanka College of Journalism, which is recognised by the media industry for training journalists for more than two decades, could also be an alternative way of building relevant journalism standards with government financial support if it intends to genuinely promote media professionalism. We call upon the government to withdraw this Bill and engage in a genuine dialogue with stakeholders that respects the autonomy and freedom of the media in a democracy.
News
Fort Magistrate orders arrest of MP Archchuna
The Fort Magistrate’s Court yesterday issued a warrant for the arrest of Jaffna District MP Ramanathan Archchuna after he failed to appear before court in connection with a pending case.
Court officials said the MP and his bail sureties were absent when the matter was taken up, prompting the Magistrate to issue the warrant.
The case relates to an alleged incident in which Archchuna is accused of obstructing the duties of Fort Police officers while they were performing their duties.
The matter was listed before the Colombo Magistrate’s Court yesterday as well, when the MP failed to appear before court and his bail guarantor was also absent. Following this, the Magistrate ordered that a warrant be issued against him.
The case is to proceed with further legal action against the MP.
News
Dengue rages with average of 2,391 new cases detected daily
Sri Lanka’s dengue outbreak has continued to worsen, with the number of infections reported this year surpassing 80,000, according to official surveillance data.
The country recorded 80,114 dengue cases as of midnight on July 23, while health authorities reported 59 dengue-related deaths, resulting in a case fatality rate of 0.07%.
The National Dengue Control Unit said that by Week 29, a total of 175 Medical Officer of Health (MOH) areas had been identified as high-risk zones, with an average of 2,391 new cases being reported daily.
July has emerged as the worst month of the year so far, with 24,739 cases recorded, while June also saw a significant surge with 21,534 infections.
The Western Province continues to account for more than half of the country’s dengue burden, with Gampaha recording 16,950 cases and Colombo 16,091 cases. Together, the two districts account for more than 40% of total infections reported nationwide.
Other districts recording high numbers include Matara with 5,534 cases, Kandy with 4,827, Kalutara with 4,545, and Ratnapura with 4,428 cases. The Colombo Municipal Council area alone has reported over 3,200 dengue infections.
At provincial level, the Southern Province has recorded 12,143 cases, followed by the Central Province with 6,686 and Sabaragamuwa with 6,607. Meanwhile, the North Western, Eastern, Uva, North Central and Northern provinces have reported 3,844, 3,148, 2,154, 1,264 and 1,173 cases respectively.
Health authorities have urged residents, particularly those living in high-risk areas, to intensify mosquito-control measures and seek immediate medical attention when dengue symptoms appear, warning that the situation could deteriorate further without sustained preventive action.
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