The Nation GAIN

Tuesday, October 19, 2010

Sri Lanka raises defence spending by six percent

COLOMBO — Sri Lanka announced Tuesday it would raise defence spending by six percent in 2011 -- broadly in line with annual hikes announced during the government's war with Tamil rebels.

The government allocated 215 billion rupees (1.92 billion dollars) for defence in calendar 2011, according to official figures tabled in parliament Tuesday -- about a fifth of the national budget.

Official sources say the state needs to keep defence spending high, despite the fact the ethnic war has ended, because of hefty installment payments on military hardware bought to fight the separatist Tamil Tigers.

Government forces crushed the rebels in May 2009, ending what had become Asia's longest-running ethnic conflict that claimed up to 100,000 lives over nearly four decades, according to UN estimates.

The highest portion of the defence budget next year in the island nation of 20 million people will go to the army.

The army will absorb just over half of the entire defence spending to maintain its 200,000 personnel, the figures show.

President Mahinda Rajapakse, who is also finance minister, is due to unveil the full 2011 budget on November 22, when he is expected to announce new revenue raising proposals to meet state expenses.

Sri Lanka's fiscal deficit shot up to 9.7 percent of gross domestic product in 2009, exceeding the seven percent target set by the International Monetary Fund when it released a 2.6-billion-dollar bailout package in 2009.

World Cup tickets to go on sale in Lanka this week

Tickets for the 12 games of World Cup 2011 in Sri Lanka, which will take place between 20 February - 29 March, will go on sale on Thursday (October 21) and cricket fans that make reservations will be able to collect their physical tickets during the first week of February, 2011, an International Cricket Council (ICC) press release said on Monday.

Reservations can be made in Kandy at the Pallekele International Cricket Stadium and in Hambantota, at the Mahinda Rajapaksa International Cricket Stadium.

In Colombo, fans can ensure their places via the official ICC Cricket World Cup 2011 Secretariat at the Sri Lanka Cricket Headquarters (35, Maitland Crescent). Tickets can also be purchased online via, www.iccevents.yahoo.com.

Ticket prices range from Sri Lankan Rs. 30.00 to Rs. 2500 with corporate enclosures available for Rs. 5,000.00 / Rs. 10,000.00 and an individual can purchase a maximum of four tickets.

A number of tickets will be made available to school children so that they can share in the excitement around the ICC’s flagship event. Veterans of the recently concluded civil conflict will also receive tickets.

Sri Lanka will boast of three brand new state of the art world class cricketing venues. The Pallekele International Cricket Stadium in Kandy, with a capacity of 25,000, while the Mahinda Rajapaksa International Cricket Stadium in Hambantota and the R Premadasa International Cricket Stadium in Colombo, will have the ability to host to 27,000 and 30,000 cricket fans, respectively.

Wayamba's sex enhancer advert under probe

It is being reported that the sex-enhancing drug promoted by Sri Lanka Cricket’s Wayamba team at the recent Champions League in South Africa, has come under fire from the Indian Consumer Guidance Society which has filed legal cases against advertisements of the drug.

Sri Lanka Cricket accepted 300,000 dollars (Rs 30 million) from an Indian company pharmaceutical company producing the controversial drug called Musli Power Xtra which has been branded a sex promoting drug.

To defend itself Sri Lanka Cricket called it a “health product”.

According to the Hindu newspaper, the states of Kerala and Andhra Pradesh have come into focus for selling and advertising the drug with a reference to the Drug and Magic Remedies Act.

According to the Hindu the advertisements promoting the Musli Power drug were dubbed as “deceptive” and making the public get carried away by such enticements. They have called on advertisers to refrain from placing such advertisements.

Indian Bank gets nod for branch in Jaffna

NEW DELHI: State-owned Indian Bank has got approval from the Reserve Bank India to open a branch in Jaffna, Sri Lanka, and expects the branch to be functional by the end of December. "We have just got licence from RBI for opening a branch in Jaffna and we are in process of seeking approval from the Sri Lankan authorities for the same," Indian Bank Chairman and Managing Director T M Bhasin said after inaugurating its 1,800th branch Noida (UP).

Currently, it has a branch in Colombo . Besides, it also has a branch in Singapore.

The Sri Lankan authorities has assured the bank that clearances would be expedited, he said, adding, "we hope make the Jaffna branch operational by the end of December this year or early January."

The Chennai-based bank has started scouting for suitable space in the city.

The bank is also exploring possibility of opening a branch at Kandy, he said.

Talking about its domestic foot-print, Bhasin said that the bank plans to open another 100 branches in the next 5 months across the country.

By the end of March 2011, the total branch network of the bank would go up to Rs 1,900 from the current level of 1,800, he said.

For the first quarter ended June, 2010, Indian Bank recorded an 11 per cent increase in net profit at Rs 368.15 crore. It had a net profit of Rs 331.66 crore during the corresponding quarter of the last fiscal.

The bank also reported an 11.07 per cent increase in its total income in the first quarter at Rs 2,477.25 crore compared to Rs 2,230.39 crore.

Source : Economic Times of India

Lanka hailed as destination for Film Producers by Movie 'Location Guide'

Sri Lanka has earned a rave review as a destination for movie and broadcast productions in the 2011 edition of The Location Guide, the film industry's bible for selecting movie and commercial production locales.

The latest edition of The Location Guide featured a separate "Focus" on Sri Lanka, highlighting the island's natural beauty, a film-friendly government and its reasonable production costs. The Guide noted Sri Lanka's wildlife parks, central-highlands tea plantations, miles of pristine beaches and the colonial architecture found.

"Dubbed the Pearl of the Indian Ocean, my feeling is that Sri Lanka deserves this title and there is no question that it has great locations for filming and excellent production values with crew rates which would have to be considered the most competitive in the region," Murray Ashton, the founder of the London-based The Location Guide, wrote in the latest edition.

"If you need to film anything remotely associated with the tropics, then you are in the right place."

The annual guide has provided film and production companies, directors and producers with essential information and location contacts for filming worldwide since 1998.

Sri Lanka boasts an impressive history of filmmaking. It was the setting for such memorable movies as Bridge on the River Kwai, Indiana Jones and the Temple of Doom, Jungle Book and Tarzan the Ape Man.

"When you visit Sri Lanka, it is plain to see why the world's best directors chose it as a location," The Location Guide states.

Natural Beauty is just one advantage Sri Lanka offers filmmakers. The Guide also noted the abundance of talent in Sri Lanka, where 300 commercials were filmed in 2009. "The production community is also made of around 700 film professionals working across all production categories," the guide stated.

While in Sri Lanka, Ashton was assisted by Gopi Darmaratnam of Sri Lankan film actor Ravindra Randeniya's company, The Film Team (Pvt) Ltd. Driver Anton Gomes drove Ashton nearly 3,000 kilometers around Sri Lanka in order to complete his report.

The lack of red tape for production companies and a lack of film unions are other huge pluses for Sri Lanka, according to the guide. Sri Lanka recently established a 235-acre tele-cinema studio facility, the guide states, and the government and recently re-elected President Mahinda Rajapaksa "strongly support the film and television industries."

Relatively few film permits are required, and those needed to film in government or historic buildings, or for street scenes, are easy to obtain with a minimum of paperwork, the guide adds.

"Sri Lanka can be considered film-friendly as government institutions increasingly realize the importance the role of filming plays in the promotion of tourism to the country," it states.

"I am pleased that The Location Guide sees a bright future for the film industry in Sri Lanka," said Jaliya Wickramasuriya, Sri Lanka's ambassador to the United States. "Sri Lanka has a rich tradition of hosting a variety of film projects over the years, and we have the facilities that will make our country a world leader in film production."

"When You Visit Sri Lanka, It Is Plain to See Why the World's Best Directors Chose It as a Location," -- Editor

SOURCE Embassy of Sri Lanka

Central Bank maintains policy rates unchanged

In its latest monetary policy review, the Central Bank of

Sri Lanka

has decided to keep policy rates unchanged. Accordingly, the Repurchase rate and the Reverse Repurchase rate of the Central Bank would remain at 7.25 per cent and 9.00 per cent, respectively.

Economic growth remains robust and broad based with all sectors contributing to the expansion of output. Credit flows continue to rebound with credit to the private sector from commercial banks growing on a year on year basis by 12.8 per cent in August 2010, further reinforcing the growth prospects. At the same time, year on year growth in broad money remains moderate at 13.9 per cent in August.

The successful issue of the 10-year international sovereign bond on 27 September at a comparatively lower coupon rate of 6.25 per cent and attracting an order book of more than 6 times the value of the bond reflects the improved investor confidence in the economy. Gross international reserves further increased with the receipt of the fifth tranche of the IMF-SBA facility and the proceeds of the international sovereign bond.

Inflation, as measured by the year on year change in the Colombo Consumers’ Price Index (2002=100) increased in September to 5.8 per cent from 5 per cent in August. However, inflation is expected to remain subdued over the coming months.

The release of the next regular statement on monetary policy will be on 16 November 2010.

Monday, October 18, 2010

Linde offers to acquire major stake in Ceylon Oxygen

Linde AG on Saturday announced an offer to acquire all the shares in privately-held Ceylon Oxygen Limited in Sri Lanka, and the acceptance of the offer by the major shareholder, Europium Limited (a member of the private equity group, Actis), in respect of 95.4 percent of the shares in Ceylon Oxygen. The offer, which has become unconditional, will close on 12 November 2010, after which Linde intends to acquire the outstanding minority shares held by shareholders who have not accepted the offer under relevant Sri Lankan legislation to give it 100 percent ownership of Ceylon Oxygen.

Established in 1936, Ceylon Oxygen Limited is headquartered in Colombo, and is the leading medical and industrial gases player in Sri Lanka. It is the only company that owns and operates an air separation plant in the country.

"The Linde Group is a global leader in gases and engineering, and Asia is a key growth market for the Group. The investment in Ceylon Oxygen will expand Linde’s footprint in emerging markets in Asia, and provides the opportunity for us to tap into and participate in the long-term growth prospects in Sri Lanka. Working with Ceylon Oxygen’s experienced management team, we intend to build on and strengthen the company’s solid market position,” said Mr Sanjiv Lamba, Regional Business Unit Head for Linde South & East Asia.

Mr Niran Pieris, Chief Executive Officer of Ceylon Oxygen Limited, said, "We are very proud of our association with Actis – especially for their belief in our management team and their commitment to the long-term growth of Ceylon Oxygen. Today is the start of an exciting future for Ceylon Oxygen. As a member of The Linde Group, we will be able to leverage on Linde’s innovations built over 130 years, technological expertise and strong market position in South & East Asia to accelerate our expansion plans and serve an even wider set of customers.”

Ceylon Oxygen Limited employs approximately 160 staff and has two manufacturing sites in Sapugaskande and Colombo, as well as four depots in Galle, Ratnapura, Kurunegala and Anuradhapura. It produces liquid nitrogen and liquid oxygen at its Sapugaskande air separation unit, and its facility in Colombo houses a liquid carbon dioxide plant, a dry ice plant, a dissolved acetylene plant and a nitrous oxide plant.

Ceylon Oxygen Limited was incorporated in 1936 in Sri Lanka. Since its inception, Ceylon Oxygen Limited has been in the forefront of providing medical and industrial gases in the country. It offers an extensive product range that includes oxygen, dissolved acetylene, nitrogen, dry air, compressed air, breathing air, carbon dioxide, nitrous oxide, dry ice and other gas mixtures which are manufactured at its own plant. It has an international standard laboratory which enables its specialists to test the purity of its gases, and ensure consistency in quality, quantity and reliability.

The Linde Group is a world leading gases and engineering company with almost 48,000 employees working in more than 100 countries worldwide. In the 2009 financial year it achieved sales of EUR 11.2 billion. The strategy of The Linde Group is geared towards sustainable earnings-based growth and focuses on the expansion of its international business with forward-looking products and services.
Linde acts responsibly towards its shareholders, business partners, employees, society and the environment – in every one of its business areas, regions and locations across the globe. Linde is committed to technologies and products that unite the goals of customer value and sustainable development.