Business
CSE positive in the wake of info on sovereign bond repayment by SL
By Hiran H.Senewiratne
Trading activities at the Colombo Stock Exchange became positive yesterday with the receiving of information that Sri Lanka is to make a bullet repayment on a billion US$ sovereign bond that is falling due this month (July) and which could maintain the country’s record of not having defaulted on debt, stock market analysts said.
It is said that the Central Bank said in a report they have confirmed and arranged funds to make a sovereign bond payment this month. This rings positive signals for the market, which resulted in the market travelling on a positive path, stock market analysts said.
At the beginning the market resumed in a sluggish manner due to heavy selling pressure. But the much talked about LOLC Development Finance or NIFL share price starting to decline is also one of the reasons for the market to be sluggish yesterday after the company going through a bizarre share price rise during the last few trading days. However, its shares started trading at Rs. 524.50 and during the day fell down to Rs. 393.50 and later settled at Rs. 454. NIFL is also index heavy.
Amid those developments both CSE indices moved upwards to positive territory. All Share Price Index went up by 17.95 points and S and P SL20 by 14.48. Turnover stood at Rs 1.78 billion with two crossings. Crossings were reported in HNB (Non Voting), which crossed 697,000 shares to the tune of Rs 76.7 million and its shares traded at Rs 110 and HNB ( Voting) 438,000 shares crossed for Rs 58.7 million, its shares traded at Rs 131.
In the retail market five companies that mainly contributed to the turnover were L.B Finance Rs 500 million (8.2 million shares traded), LOLC Holdings Rs 155 million (396,000 shares traded), Sampath Bank Rs 84.9 million (1.6 million shares traded)m HNB (Non Voting) Rs 78.9 million (718,000 shares traded) and Browns Investments Rs 66.5 million (11 million shares traded).
During the day NIFL stock prices moved down by 13 percent or Rs 70.50. However LOLC and Browns Investments were the main positive contributors to the All Share Price Index. Their share prices also increased, ie. LOLC share price increased Rs 9.50 or 2.5 percent, which moved its price to Rs 398 from Rs 388.50 and Browns Investments appreciated its share price by 20 cent or 3.4 percent. Its share price started trading at Rs 5.90 and at the end of the day it shot up to Rs 6.10. LOLC contributed 10 points and Browns Investments contributed 6 points respectively to the All Share Price Index during the day’s trading. It is said that 53 million share volumes changed hands in 15963 transactions.
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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