Business
Acquiring of Colombo Dockyard by Indian shipbuilding firm delayed
Colombo Dockyard, which is to be acquired by India’s Mazagon Dock Shipbuilders Limited through an injection of capital, said the Rs 12.9 billion exercise would be delayed.Company sources said that the revised timelines would be notified after they receive the requisite regulatory approvals.
Colombo Dockyard is planning to offer 323 million shares at Rs 40 to existing shareholders and the current controlling shareholder Onomichi of Japan will renounce its entitlement in favour of India’s Mazagon Dock Shipbuilders Limited.
Meanwhile, yesterday the CSE crossed the 21000 point mark for the first time in its history. The development was attributable to local and foreign investor sentiment being high due to conducive macroeconomic conditions prevailing for the stock market to move.
Amid those developments both indices moved upwards. The All Share Price Index went up by 201.03 pound points while the S and P SL20 rose by 41.14 points. Turnover stood at Rs 7.39 billion with ten crossings.
Top seven crossings were; HNB 685,000 shares crossed to the tune of Rs 234 million; its shares traded at Rs 400, Keells Hotels 3.6 million shares crossed for Rs 90 million; its shares traded at Rs 25, Sunshine Holdings 2.4 million shares crossed to the tune of Rs 73 million; its shares traded at Rs 30.50, Central Finance 170,000 shares crossed for Rs 48.5 million; its shares traded at Rs 285, Lanka IOC 300,000 shares crossed for Rs 40.5 million; its shares traded at Rs 135,Tokyo Cement (Non-Voting) 439,000 shares crossed for Rs 34.7 million; its shares sold at Rs 79 and Three Acre Farm 640,500 shares crossed for Rs 34 million; its shares traded at Rs 330.
In the retail market top seven companies that mainly contributed to the turnover were; LBL Energy Fund Rs 562 million (48 million shares traded), Prime Lands Rs 336 million (14 million shares traded), Keells Hotels Rs 234 million (9.4 million shares traded), JAT Holdings Rs 175 million (4.1 million shares traded), Maravila Resorts Rs 162 million (20 million shares traded), Associated Motor Finance Rs 150 million (1.5 million shares traded) and JKH Rs 134 million (5.8 million shares traded). During the day 389 million share volumes changed hands in 54000 transactions.
It is said that mixed market behavior was noted. The banking, manufacturing and real estate sectors performed well.
Yesterday, the rupee opened slightly weaker at Rs 302.34/40 to the US dollar in the spot market, from Rs 302.23/40 the previous day, while bond yields were up, dealers said.
A bond maturing on 15.09.2027 was quoted at 8.60/70 percent, up from 8.55/62 percent.
A bond maturing on 15.12.2028 was quoted at 9.00/10 percent.
A bond maturing on 15.12.2029 was quoted at 9.45/55 percent, down from 9.45/59 percent.
A bond maturing on 15.12.2032 was quoted at 10.30/35 percent, up from 10.28/32 percent.
By Hiran H Senewiratne ✍️
Business
ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka
The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.
The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.
“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”
Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.
Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.
Business
USD 40.84m pipeline to secure aviation fuel supplies to BIA
By Ifham Nizam
The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.
Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.
‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.
The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.
The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.
Business
CSE activity up, turnover weak at Rs. 1.4 billion
By Hiran H Senewiratne
Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.
Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.
In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.
The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.
Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.
Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.
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