Business
CSE’s bearish run proving costly
By Hiran H.Senewiratne
The CSE has seen a bearish run during the last few days and that has wiped off Rs. 475 billion in value in just 10 market days so far in February, with previous day adding Rs. 143 billion, stock market analysts said..
Yesterday the stock market witnessed some volatility in the morning and it fell by 190 points. Later it recovered but went down again. During the latter part of the day or last hour it signaled some stability and turned positive and closed with marginal gains, analysts said.
With these developments both indices moved upwards. All Share Price Index went up by 7.4 points and S and P SL20 rose by 18.9 points. This upward trend indicated some stability following its regulator, Securities and Exchange Commission’s, new rule to all stockbrokers and stock broking firms to report all credit that has been extended to investors, on a weekly basis. This created some panic in the market initially because stock brokers limited the credit extended to investors, market analysts said.
With this new rule the market moved downwards and some brokers recovered their funds and some reduced their credit to investors, analysts added.
Consequently, turnover stood at Rs 3.3 billion with two crossings. Those crossings were reported in Asiri Surgical Hospitals, which crossed 7.3 million shares to the tune of Rs 120 million, its shares traded at Rs 18 and Seylan Bank (Non Voting) one million shares crossed for 41 million, its shares traded at Rs. 41.
In the retail market, top five companies that mainly contributed to the turnover were; LOLC Rs 458 million (1.37 million shares traded), Haycarb Rs 220 million (2.1 million shares traded), Dipped Products Rs 212 million (3.5 million shares traded), Vallibel One Rs 205 million (3.4 million traded) and Hayleys Rs 201 million (2.99 million shares traded). During the day, 113.7 million share volumes changed hands in 27237 transactions.
It is said that the market was volatile throughout the day because investors have become worried with the spreading of the Covid 19 new variant and also because of the political uncertainty due to issues on the diplomatic front with China and India.
Sri Lanka rupee was quoted around 197.50/198.00 levels to the US dollar in the spot-next market on Wednesday, while bond yields quoted wider, dealers said.
The rupee last closed in one-week forward market at 197.50/198.50 levels on Tuesday. In the secondary market bond yields edged up drastically, dealers said.
Business
Political risks to Sri Lanka’s debt restructuring agreement recede: Fitch Ratings
Fitch Ratings Hong Kong says that the Sri Lankan authorities’ confirmation that they endorse the targets set under the country’s IMF programme, and intend to implement debt restructuring based on the terms agreed with international sovereign bondholders in September, reduces risks to the debt treatment process associated with the outcome of the presidential election on 21 September.
The election of Anura Kumara Dissanayake, of the opposition Janatha Vimukthi Peramuna (JVP), as president in September had increased policy uncertainty, raising the risk that the government could launch challenges to key elements of the IMF programme, potentially delaying Sri Lanka’s foreign currency debt restructuring. However, the Ministry of Finance announced on 4 October that consultations with the IMF and Sri Lanka’s Official Credit Committee had been successfully concluded, suggesting that any policy changes are unlikely to threaten the IMF programme or the debt treatment agreement-in principle reached under the previous administration.
The Ministry also indicated that the consultation had agreed that the preliminary agreement adhered to the principle of comparability of treatment between official creditors and bondholders, and was compatible with the IMF programme’s terms.
” We view this as a positive sign for the restructuring process’s prospects. Fitch has rated Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘RD’ (Restricted Default) since May 2022, and the government is not currently servicing its foreign-currency debt. We may move the IDR out of ‘RD’ upon the sovereign’s completion of a commercial debt restructuring that we judge to have normalised the relationship with the international financial community. Sri Lanka’s postdefault rating would depend upon our assessment of its credit profile. Fitch upgraded Sri Lanka’s LongTerm Local-Currency IDR to ‘CCC-‘ in September 2023, reflecting the completion of the local-currency portion of Sri Lanka’s domestic debt optimisation plan. We expect Sri Lanka’s government debt to remain relatively high, even if debt restructuring is completed successfully along the lines laid out in the agreements with its creditors,” Fitch says.
“The IMF forecasts Sri Lanka’s gross general government debt/GDP ratio to decline only gradually to about 103% of GDP by 2028, from about 116% in 2022, after building in a local- and foreign-currency debt restructuring. The government’s revenue/GDP ratio remains low, but the effects of several revenue-raising measures passed since May 2022 are beginning to be felt. Revenue collection in 7M24 rose by about 43% yoy, well above the nominal GDP growth rate of 9.5% in 1H24. Our baseline projections assume an increase in revenue/GDP, from 11.4% in 2023 to 15.5% in 2026, reflecting the measures already in place. However, these forecasts could be affected, if the new government introduces fiscal reforms. The IMF programme’s targets offer some flexibility for changes in the government’s fiscal policy approach.
‘The president’s capacity to push through policy changes may depend partly on the outcome of the parliamentary election on 14 November. The JVP and its allies had relatively few seats in the outgoing legislature, though the trends evident in the recent presidential election suggest that there will probably be large changes in the make-up of the new chamber.
‘The economy more broadly remains on a recovering trend. Real GDP growth was 5.0% yoy in 1H24, after contracting by 7.3% during 1H23. We expect the economy to expand by 3.9% in 2024 and to average growth of 3.6% over 2025-2026. External liquidity stresses have also eased, with foreign-exchange reserves hitting USD6.0 billion in August 2024, up almost 66% yoy. Nevertheless, the speed of the recovery in reserves is likely to be set back when Sri Lanka resumes external debt-service payments,” Fitch notes.
Business
Rotary fights breast cancer with NCCP through early detection and prevention
October is Breast Cancer Awareness Month—a time to come together not only to acknowledge a disease that affects millions but to celebrate the resilience of women and the power of early detection to save lives.With a long-standing partnership of 20 years with the National Cancer Control Programme, Rotary Club of Colombo members came out in their numbers to create awareness and joined the recent NCCP Breast Cancer Awareness Walk on October 2nd.
It is a time to reaffirm our collective responsibility toward the well-being of our mothers, sisters and daughters and those thousands of women who may one day be struck down by this disease if not detected early.
Rotary has been a beacon of hope in the fight against breast cancer, working hand-in-hand with the Ministry of Health for 20 years since 2004. This partnership with the National Cancer Control Programme has been instrumental in addressing breast cancer, which remains the leading cause of death among women aged 40 to 55 years.
Rotary’s journey began 20 years ago with the sole focus on screening and early detection and prevention to fight the rising incidence of cancer. Together with NCCP they set up a dedicated Cancer Screening and Early Detection Centre focused on breast cancer, first in Colombo and then extended to other cities to ensure no woman is left behind. These regional Breast Cancer Early Detection Clinics will bring lifesaving services closer to those who need them most.
Rotary Club of Colombo has led the way in the screening and early detection of breast cancer and invested in state-of-the-art technology at the main Cancer Early Detection Centre in Narahenpita run by NCCP, including installing a 3D tomosynthesis Digital Mammography Machine. This machine provides highly accurate screenings for breast cancer, five days a week, entirely free of charge. This represents Rotary’s unwavering commitment to ensuring early detection, which is key to improving breast cancer survival rates.
Rotary Club of Colombo was also a pioneer in introducing HPV DNA testing at the Centre for cervical cancer screening —an initiative that highlights their approach to tackling women’s cancers holistically.
Business
Pepsi® unveils its new logo with street art murals in Sri Lanka
Honouring its 125 years long legacy, Pepsi®, a brand that has been at the center of global pop culture, unveiled its new identity in Sri Lanka through its groundbreaking campaign, ‘Pepsi® Street Kala’. The ‘Pepsi® Street Kala’ campaign represents a groundbreaking moment for the brand, introducing its revamped brand identity through public art for the first time globally. With 17 murals featured across the country, this initiative is an attempt to democratize art through dynamic experiences that invite public interaction and make art and culture more accessible.
Pepsi® celebrated this milestone with a spectacular launch event at the iconic Lotus Tower – South Asia’s tallest self-supported tower. The event brought its bold identity to life through immersive experiences, captivating the audience from start to finish. Media, influencers and individuals from the art community in Sri Lanka enjoyed a sensory feast, with the aura of Pepsi® resonating throughout, showcasing the brand’s vibrant spirit. The highlight of the evening was the illumination of the Lotus Tower in Colombo with Pepsi®’s new bold colors, transforming the city’s skyline.
Speaking on the launch, Anuj Goyal, Associate Director, Area-Countries Region, PepsiCo said, “Pepsi has consistently been at the forefront of youth culture and with this initiative, we are extending that dedication to the streets of Sri Lanka. The new Pepsi logo represents a bold new chapter for Pepsi, bringing it to life through street art with the ‘Pepsi® Street Kala’ campaign – enabling us to expand the horizons of visual narrative. The grand launch event, including the striking projection of our brand colors at the iconic Lotus Tower and the murals altogether, are a celebration of youth, creativity, and the spirit of Pepsi.”
Also commenting on the launch, Sandeep Kumar, Country Head at Varun Beverages Limited (VBL) – Sri Lanka also added, “We are excited to bring the ‘Pepsi® Street Kala’ campaign to life in Sri Lanka, showcasing the refreshed brand identity of Pepsi. This campaign and today’s event celebrates creativity, culture, and the unbreakable bond Pepsi shares with the people of Sri Lanka. We’re proud to be part of this milestone that reflects the vibrant energy of the Pepsi consumers, while integrating public art experiences in their routine commute.”
-
News6 days ago
Sajith top presidential election spender
-
Business7 days ago
Sri Lanka Tourism surpasses 2023 tourist arrivals
-
Features6 days ago
The Economy, Executive Presidency, and the Parliamentary Election
-
Sports7 days ago
Abheeth takes five but St. Anthony’s ahead
-
News6 days ago
Rajeev Amarasuriya to run for BASL President 2025/26
-
Business4 days ago
ADB delegation meets President Dissanayake, pledges continued support for Sri Lanka’s economic development
-
Sports6 days ago
Has Sri Lanka unearthed a special talent?
-
Business6 days ago
Aviyana becomes main sponsor of Sri Lanka Trade Fair Dubai 2024