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News
CSE calls for listing of privatised enterprises Ajit Gunewardene,
the outgoing chairman of the Colombo Stock Exchange, has called
for the fast tracking of proposed financial reforms and for linking
privatisation of state enterprises to stock market development. The CSE's "immediate
priority" is to get itself reclassified in the MSCI (Morgan
Stanley Capital International) Emerging Markets Index, from which
it was removed in 2001 owing to declining market capitalisation
and liquidity, he said in the exchange's annual report released
last week. To get back
on the MSCI there is a need to increase the CSE's capitalisation
and liquidity and the listing of Sri Lanka Telecom, now the highest
capitalised stock on the bourse, and Apollo Hospitals had helped
to some extent, he said. The only practical
way to "achieve such a status in the short term is by linking
privatisation to stock market development," Gunewardene said. He described
2002 as an "exceptional" year with the turnover of Rs.
30.5 billion being the second highest for any year in the history
of the CSE. "Whilst
realising that economic recovery without peace is not possible,
the current state of the economy does not guarantee that the upturn
in the market will be sustained into the future, if the achievements
thus far are not translated into improved economic fundamentals
and private sector profits." Gunewardene
called for the government to play a more proactive role in promoting
macro-economic development by speeding up policy implementation
and strengthening the institutional framework. He welcomed
proposed pension fund reforms that would release more funds to the
capital markets but warned that the small and illiquid nature of
the bourse might not be able to absorb such huge funds. "In this
context, listing privatised companies becomes even more imperative,"
Gunewardene said. The bulk of the pension funds are now invested in government securities. Gunewardene
also said the CSE's efforts to diversify into trading government
securities has been "frustrated" due to the delay in regulatory
approval being granted for its proposed primary dealer subsidiary. Market development
was constrained by the market being limited by the authorities to
a network of traders. Experience
shows that both brokers and dealers are necessary to develop a market,
Gunewardene said. The CSE's intiative will allow brokers to trade government securities, expanding the market. Ceylinco's general insurance profits, turnover soars Ceylinco Insurance-General,
Sri Lanka's largest private sector insurance company, has reported
an outstanding performance in 2002 with a growth of 37 percent and
a gross turnover of Rs. 2,607 million. Together with
the turnover of its Life Division, Rs. 2,359 million, the company's
total turnover exceeds Rs. 4.9 billion, according to a company statement
which is says it is the highest growth recorded in the entire industry. In Sri Lanka
a little over seven percent of the entire market has been penetrated
by general insurance companies with a large part of the population
not covered. Taking this into consideration Ceylinco Insurance has
simplified its product structure to make it appealing to a larger
audience, the statement said. In a separate
statement, the company said it has revolutionized the motor insurance
industry with the introduction of a bold new initiative to settle
claims on the spot. For the first time in Sri Lanka, one does not
need police reports and garage estimates to obtain compensation
for a damaged vehicle. "In the case of motor insurance, red tape and bottlenecks frustrate customers who are sometimes rendered immobile due to lengthy procedures. Our research and customer feedback has shown an urgent need for an innovation like this and we are happy to deliver," said H.M. Guneratne Banda, Director Operations. Ceylinco has assigned a 24-hour hotline - 393939 to receive all reports of accidents to help customers. Barista opens Marquee Store at Galle Face Barista Coffee,
South Asia's leading chain of espresso bars and the largest retailer
of fine speciality coffee, opened a new store at the Galle Face
Hotel Shopping Arcade last week. Covering an
area of 2,000 square feet and manned by eight brew-masters, this
Espresso Bar will be open seven days a week from 9 a.m. to 1 a.m.
on weekdays and up to 3 a.m. on weekends. Adding to the informality
and entertaining both young and old, the espresso bar offers games
such as pictionary and scrabble as well as a a guitar for enthusiasts
to strum on. Barista Coffee Lanka (Private) Ltd is a joint venture between Barista Coffee, a part of the TATA Group and Jewelex Trading Ltd. Following the
newly set up North Western Regional Economic Development Council,
its chairman Lalith Kotelawala came to the rescue of the Bamunugedara
village in Kurunegala by helping to construct their own tank. The Ceylinco conglomerate magnate and his wife Sicille made a personal donation of Rs. 4.5 million towards this cause which would benefit more than 500 families. Sachi Welgama,representing the construction company, said they hoped to complete the tank in 75 days and would make every effort to preserve its natural resources and wild life. A.T. Cooray wins again at Architects' Exhibition A.T. Cooray,
the premier office furniture manufacturer and interior decorator,
was once again the proud recipient of the Award for Excellence for
Commercial Interior Display at the recent Architects' 2003 Exhibition,
conducted by the Sri Lanka Institute of Architects. Winning awards is not exactly new to A.T. Cooray. Consistent acknowledgement by Sri Lanka's most reputed architects is supported by the fact that they were adjudged winners at the Architects' Exhibitions of 1995, 1996, 1998, 2000 and 2001, the company said in a statement. Cooray's portfolio includes HNB (and the recent HNB Towers), Central Bank, SriLankan Airlines, Seylan Towers. Hayleys and John Keells, who turned to the company to create an artistic, yet functional working environment. Govt. to recognize both travel associations A simmering
row between a new umbrella organization representing Sri Lanka's
tourism industry and two already existing tourism-related associations
ended this week with the government recognizing the last two groups. The issue over the Sri Lanka Association of Travel and Tourism (SLATT) and its efforts to be recognized by the government as the sole representative of this industry, had threatened to split the sector into different groups and factions. The Ceylon Chamber of Commerce said in a statement that the Travel Agents' Association of Sri Lanka, and the Sri Lanka Association of Inbound Tour Operators, TAASL / SLAITO were approved by the government last week. A decision had been taken at a meeting presided over by Prime Minister Ranil Wickremesinghe to recognize the two associations and treat these two sectors as separate ones instead of a single entity. |
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