Sri Lanka News Updates with Discussions

By Shihar Aneez and Ranga Sirilal

COLOMBO, June 19 (Reuters) -

The central bank said it had accepted $115.8 million worth of bids for two-year Sri Lanka Development Bonds (SLDB) with a yield of US dollar six-month LIBOR plus 4.97 percent after being oversubscribed by 136 percent.

'This shows the confidence in Sri Lankan market and lower risk after the war end,' said Chirantha Caldera, a currency dealer at Commercial Bank of Ceylon.

Bids for similar bonds in March, when the war was raging, were undersubscribed with the central bank receiving only 98.1 percent of the required total of $200 million.

It accepted $184.25 million at a yield of US dollar six-month LIBOR plus 5.4 percent in that case.

In this latest bond, $50 million is expected to be used to settle a set of development bonds that are maturing on Friday.

The excess amount will be used to limit the government's requirement for new foreign currency commercial borrowings in 2009, the central bank said.

The oversubscription and declining margin on this issue, along with an influx of $190 million in foreign investments in government securities over the past 10 weeks pointed to stronger investor confidence after the war, the central bank said.

Sri Lanka's benchmark sovereign dollar bond, which was trading around 17.4 percent in early May, is now being traded around 11 percent, Reuters data showed.

The government on Friday said the Joint Cargo Committee (JCC), representing insurers and underwriters, had lowered its insurance risk rating to 'high' from 'severe' and taken the island nation off of the risk list for 'air-war and strikes'.

'This will help Sri Lanka to import goods at a little lower (cost) than what we had been paying and also to get more cargo vessels,' said Danushka Samarasinghe, head of research at Asia Securities.

(Editing by Bryson Hull and Toby Chopra)

Sri Lankan stocks up 8.9-pct over week, 63.5-pct in 2009
http://www.lankabusinessonline.com/fullstory.php?nid=1614358621

June 19, 2009 (LBO) - Sri Lankan stocks closed up 8.9 percent for the week Friday, up 63.5 percent for the year, with stronger foreign buying interest coming to the market, brokers said.

The benchmark Colombo All Share Price Index closed up 1.99 percent (47.94 points) to end at 2,451.91 Friday while the Milanka index of liquid stocks gained 1.86 percent (50.50 points) to close at 2,763.59, according to provisional stock exchange data.

Turnover was 1.88 billion rupees.

'In the last month or so when the market gained foreigners were net sellers, but now we're seeing a reversal of the trend,' Geeth Balasuriya, research manager at Acuity Stockbrokers.

In the last month or so when the market gained foreigners were net sellers, but now we're seeing a reversal of the trend

The dust has barely settled on Team India's sorry exit from the ICC World Twenty20 in London when a new controversy has raised its ugly head. The team's manager and Andhra Cricket Association (ACA) secretary V Chamundeswaranath has been suspended for various misdemeanours, including allegedly seeking sexual favours from women cricketers.
The ACA satrap was still in London along with Dhoni's men when, after an emergency executive meeting on Thursday, ACA president Gokaraju Gangaraju said the decision to suspend Chamundeswaranath was taken in view of the serious charges levelled against him.
'A few women cricketers have approached the association with a complaint that the secretary had been harassing them for sexual favours in return for a place in the team. It has been decided to issue a show-cause notice to Chamundi to prove his innocence and keep him under suspension till the case is finalised,'' said Gangaraju.
The meeting, attended by 25 of its 32 members, also resolved to ask Gangaraju to act as secretary till July 26 when the extraordinary general body meeting will look into the explanation -- if Chamudeswaranath gives one.
Sources at the meeting said an enquiry committee report found irregularities in the purchases made by Chamundeswaranath for the stadium in Visakhapatnam. The report apparently claimed that a chair which he bought for Rs 1,350 does not cost more than Rs 600. Chamundi had bought 24,000 chairs at that price and the executive decided to seek an explanation from him for misuse of ACA funds.
Speaking to TOI from London, Chamundeswaranath wondered how he could have been involved in the affairs of women's cricket when a former India player, Poornima Rau, works with the ACA as a consultant as well as its selector.
'I don't get involved in selection matters, least of all that of women's teams. And then I have a proven record of helping sportswomen. When I can help Saina Nehwal and Sania Mirza who are not cricketers, how can I have such an attitude towards cricketers?' he said.
Chamundeswaranath felt that the timing of the emergency meeting betrays the desperation of some members to engineer such a decision in his absence as they know they can't do it in his presence.
'Even if the report submitted by the enquiry committee has proved my guilt, is it not fair that I was given a hearing before a decision was taken,' asked Chamundi, adding that he is confident that he will come clean of all charges.

The most stable govt, the most peaceful country in the region :)

The report apparently claimed that a chair which he bought for Rs 1,350 does not cost more than Rs 600. Chamundi had bought 24,000 chairs at that price and the executive decided to seek an explanation from him for misuse of ACA funds.

Sintha.... Cheenai and teh Peelamists's SADIM touch!