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Bull run on CSE ends, but market remains heated



The unprecedented bull run on the Colombo Stock Exchange ended at the close of trading on Friday with the All Share Price Index (ASPI) that hade been galloping for several previous days closing 143.94 points (1.53%) down at 8,668.07 while S&P SL 20 reflecting more liquid (and possibly stronger shares) gaining 8.85 points (0.25%) to close at 3,514,8.

Brokers and analysts said that that the correction process appears to have begun although both indices remain sharply up from levels posted until what one broker called “the crazy upward momentum” began several days ago.

Among the shares that declined Friday were hot counters like those belonging to LOLC Holdings, the Ishara Nanayakkara-controlled conglomerate and several Hayleys Group companies controlled by Mr. Dhammika Perera including the parent and the bigger subsidiaries like Haycarb and Dipped Products.

LOLC was down Rs. 8.50 to Rs. 512.75 on approx. four million shares done at between Rs. 498.25 and Rs. 574 in 3,245 trades when the market closed for the week on Friday. Likewise, the three Hayleys biggies, Hayleys, Haycarb and Dipped Products where 10 for one share splits (each existing share will be subdivided into 10) are pending also lost steam.

Hayleys was down Rs. 30.25 to Rs. 772 on approx. 0.3 million shares done in 592 trades between Rs. 755.50 and Rs. 815.Dipped Products declined Rs. 39.25 to Rs. 703 on approx. 0.5 million shares done between Rs. 680 – 760 on 1,676 trades while Haycarb lost Rs. 85.25 to close at Rs. 1,196 on 0.13 million shares done between 1,165 -1,280 in 662 trades.

The CSE has been posting turnovers running into billions hitting an all time high in the peak of the bull run. A feature of the red hot market was day trading by small investors (as well as some biggies) who took advantage of the upward momentum buying and selling on the same day with no cash outlay and paying only once and not twice on brokerage on two transactions.

“All they had to do was collect their profits at the end of the day,” one broker said. “It was very hard for us because we were getting so many telephone calls and could not offer serious advice because we had no sense of market direction.”

They were not willing to hazard a guess on what will happen when trading resumes on Monday given the way things went on the last several days, but most expected the correction of the ASPI which began on Friday to continue.

“Look at this one example,” one market player said. “Central Finance (CF) closed at Rs. 116.50 on Friday, up Rs. 3.50 on 1.26 million shares done between Rs. 115-135 in 583 trades. DFCC Bank lost 40 cents to close at Rs. 74.10 on 0.77 million shares done between Rs. 73.10 and Rs. 78 in 296 trades. DFCC’s net assets value is way ahead of CF. It makes no sense.”

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Massive revenue loss: Eyebrows raised over delay in responding to House query



SLPP members say sugar deal black mark on govt.

By Shamindra Ferdinando

Many an eyebrow has been raised over the delay on the part of the Finance Ministry to respond to a Finance Committee (FC) request for a comprehensive report on an alleged fraud in the controversial sugar tax revision.

Chairman of the Finance Commission Anura Priyadarshana Yapa on January 5 issued instructions to the Finance Ministry in this regard when the FC considered several special gazette notifications pertaining to the Ministry of Finance issued since October 2020.

According to the Communication Department of Parliament, MP Yapa on Feb 25 told the FC that the report called by him hadn’t been received yet. Yapa said so when State Minister Vidura Wickramanayaka and SLPP MP Nalin Fernando alleged the revision of taxes pertaining to the import of sugar hadn’t benefitted the consumers at all and only caused loss of revenue to the State. Severe criticism of the revision of sugar taxes was nothing but a black mark on the government.

Asked whether the report had been received since the issue at hand was taken up on Feb 25, the former Minister said that the FC answered in the negative.

Yapa told the last FC meeting that the Department of Import Control should be able to submit analytical comments with data on the relevant gazette amendments. Having approved the regulations issued on that day in respect of the issuance of licenses for the import of brown sugar, the FC recommended that a full explanation be given on March 09 with the participation of all relevant Ministries and Institutions.

Parliament is scheduled to meet on March 9.

Yapa is on record as having told the FC on January 5 though the tax on imported sugar was revised downwards to 25 cents from Rs. 50.00 per kilogram through the Gazette Notification No. 2197/12 issued by the Ministry of Finance on 13th October 2020, the move did not benefit the consumers at all.

JVP leader Anura Kumara Dissanayake lambasted the government over what he called a massive sugar scam that caused losses amounting to Rs 10 bn. In addition to the JVP, the SJB and UNP flayed the government over the corrupt deal. Dissanayake questioned the rationale in increasing the tax on sugar from Rs 33 to Rs 50 on May 23, 2020 and then bringing it down steeply to 25 cents on Oct 13, 2020. Dissanayake said that at that time the tax was brought down to 25 cents, there had been 90,000 metric tonnes of imported sugar in the country. Having reduced the sugar tax to 25 cents, the government directed that a kilo of sugar be sold at Rs 85, MP Dissanayake said.

The JVPer alleged that subsequently, when the government wanted to increase the sugar tax by Rs 40, Commerce Minister Bandula Gunawardena said that once imposed tax couldn’t be altered for a month, hence the decision to continue with 25 cents tax till Nov 13, 2020.

MP Dissanayake on Dec 12, 2020 named all those involved in the sugar scam.

Lawmaker Dissanayake said that the country suffered massive losses due to corrupt sugar deals. Those who suspended imports claiming the country faced severe foreign exchange crisis allowed massive corruption at the expense of the national economy.

Dissanayake said that last year alone at least 73,000 metric tonnes were imported at 25 cents tax.

He pointed out that the Treasury was responsible for facilitating sweet deals at the expense of the national economy. The revenue which should have been received by the government ended up with racketeers, Dissanayake lambasted the government for allowing its cronies to flourish.

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JVP expresses solidarity with Black Sunday campaign



The JVP-led NPP yesterday expressed solidarity with the Black Sunday campaign seeking justice for the Easter Sunday carnage victims.

A statement issued by the party said that the Presidential Commission of Inquiry into the Easter Sunday carnage had released its report but the general consensus was that the inquiry had failed to bring justice. The PCoI report had only made the matter complex by creating some more puzzles instead of identifying the masterminds of the terror strikes.

The JVP has said Sri Lankans will never forget the Easter Sunday terror attacks of 2019 where nearly 300 perished and more than 500 others were wounded and became disabled for the rest of their lives. It is no secret that it was the failure on the part of the previous government to prevent the attacks that led to the destruction of lives and properties. The appointment of the commissions to investigate the incident was the only response of the former and incumbent governments. It is now clear that the commission has failed to identify the masterminds, owing to political reasons. Demanding justice is a human right. The Catholic Church has called on people to mark the coming Sunday as a day of agitation, demanding justice. We, of the NPP, extend our fullest support for the campaign and urge the law enforcing agencies to take action without further delay to bring about the masterminds and offenders of the crime, the statement has said.

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Iranaitivu islanders protest against burying of coronavirus victims there



By Rathindra Kuruwita

Residents of Iranaitivu Island yesterday forcibly filled up the burial sites prepared for those who had died from COVID-19 and held a demonstration against burying coronavirus victims on the island.

The protesters claimed that the media had reported those who died from COVID-19 would be buried on the island and that some group had already prepared a burial site. However, the residents of the island had not been consulted, they said.

They claimed that even during the war they had fought for the right to live on the island and they were opposed to the decision taken by the government to bury COVID-19 victims on the island.

 The protesters claimed that it was a cunning plan by the government to drive in a wedge between Christians and Muslims in the area. The government should have earmarked a deserted island for that purpose, they said. The protest was led by Christian religious leaders and local politicians. 

Iranaitivu is situated 10 km from Mannar and can only be accessed by boat. Cabinet Spokesman, Minister Keheliya Rambukwelle said that it was not a political decision and that health experts had taken it after careful consideration. He added that a vehicle especially made for this would be used to transport bodies to the island. This vehicle would include a freezer and the driver would be isolated from the bodies. Two family members would also be allowed to attend the funeral.



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