19th Nov 07

ATTN: MR CHANDIMA UDABAGE SHADOW RUNDOWN THE STATE OF BUSINESS – 19th Nov, 2007 BUDGET

VTR

RIYAD

UNDP

VTR

LASHINI

SLT

VTR

RIYAD

BREAK 1 - ADD STATE OF BUSINESS BRIDGE CIM

VTR

ANOUK

BREAK 1 – CORPORATE BRIDGE TELEPHONE

VTR

LASHINI

BREAK 2 - STOCK WATCH STOCK UPDATE CARDS CURRENCY

CARDS

LINE UP EDITOR ANCHOR

ANOUK/NISHANI ANOUK

HEADLINES 1. VERDICT ON VOTE- 2008 BUDGET PASSED WITH 16 VOTE MAJORITY, AND 2. MAKING HEADWAY- SRI LANKA SHOWS PROGRESS IN ACHIEVING MILLENNIUM DEVELOPMENT GOALS BY 2015

1. BUDGET 2008 VOTE -CARD/VTR THE GOVERNMENT WAS ABLE TO PASS THE 2008 BUDGET WITH A MAJORITY OF 16 VOTES IN PARLIAMENT TODAY. THERE WERE 118 VOTES FOR AND 102 AGAINST AT THE END OF THE VOTE. THE NECESSARY VOTES WERE RALLIED BY THE GOVERNMENT AMIDST COUNTER CLAIMS BY THE MAIN OPPOSITION UNITED NATIONAL PARTY THAT THEY WILL DEFEAT THE BUDGET TODAY. MEMBERS OF PARLIAMENT, REPRESENTING THE UPFA EPDP, SLMC, CWC, UPF, JHU AND THE UNP DEMOCRATIC GROUP, VOTED FOR THE BUDGET. THE MAIN OPPOSITION, JOINED BY THE TNA AND SLFP MAHAJANA WING AND THE JANATHA VIMULTHI PERAMUNA VOTED AGAINST. 2 MEMBERS OF PARLIAMENT ABSTAINED FROM VOTING TODAY, WHILE A FURTHER 2 MP’S WERE NOT PRESENT AT THE TIME OF VOTING. READ ON 2. UNDP – VTR A LATEST REPORT RELEASED JOINTLY BY THE UNITED NATIONS AND THE ADB OUTLINES THAT SRI LANKA HAS SHOWN OUTSTANDING PROGRESS TOWARDS ACHIEVING THE MILLENNIUM DEVELOPMENT GOALS BY 2015. THE REPORT, WHICH HAS FOCUSED ON THE ASIAN AND THE PACIFIC REGION OUTLINES THAT SRI LANKA HAS DONE WELL IN THE AREAS OF PRIMARY EDUCATION, LITERACY AND GENDER EQUALITY. THE OUTCOMES OF THE REPORT TITLED “THE MILLENNIUM DEVELOPMENT GOALS: PROGRESS IN ASIA AND THE PACIFIC 2007” WERE REVEALED TO THE MEDIA TODAY IN COLOMBO MARKING THE HALFWAY POINT OF THE PERIOD SET TO ACHIEVE THE MDG’S. ROLL VTR. 3. S&P-FITCH ON SLT- DRY / FLASH SRI LANKA’S LARGEST FIXED LINE TELEPHONE OPERATOR SRI LANKA TELECOM’S LONG TERM FOREIGN CURRENCY ISSUER DEFAULT RATING

WAS AFFIRMED AT BB MINUS WITH A NEGATIVE OUTLOOK BY FITCH RATINGS. AT THE SAME TIME THE AGENCY AFFIRMED SLT’S LONG-TERM LOCAL CURRENCY IDR OF BB MINUS AS WELL AS ITS NATIONAL LONG-TERM RATING AT ‘AAA LANKA’ WITH STABLE OUTLOOKS ALONG WITH THE BB MINUS RATING ON ITS SENIOR UNSECURED NOTES MATURING IN 2009. ROLL VTR BREAK 4. CIM THE CHAIRMAN OF THE CHARTERED INSTITUTE OF MARKETING UK, PAUL GOSTICK STATES THAT COMPANY BOARDS NEED TO EMBRACE MARKETING IN ORDER TO MAKE HEADWAY IN THE CORPORATE WORLD. HE STATES THAT THIS SHOULD BE DONE BY EITHER HAVING A MARKETING DIRECTOR ON THE BOARD OR BY EMBRACING THE FUNCTION THROUGHOUT THE COMPANY. GOSTICK SHARED HIS VIEWS AT THE CIM CEO BREAKFAST FORUM HELD RECENTLY IN COLOMBO. ROLL VTR 5. CORPORATE-TELEPHONE - VTR MELANIE BENNETTE OF CINNAMON GRAND EMERGED THE WINNER OF THE TELEPHONE OPERATOR OF THE YEAR CONTEST ORGANIZED BY THE LIONS CLUB OF COLOMBO ELVITIGALA. THE WINNER WAS SELECTED FROM AMONG 58 CONTESTANTS FOLLOWING A RIGOROUS SELECTION PROCESS WHICH INCLUDED INTERVIEWS, WRITTEN TESTS AND PROJECT REPORTS. ROLL VTR BREAK

STOX THE CSE OPENED THE WEEK TO A DULL DAY OF TRADING AND ENDED IN THE RED. NAWALOKA HOSPITALS TRADED THE HIGHEST VOLUME OF 3.15 MILLION SHARES FOR THE DAY AND WAS FOLLOWED BY CEYLON GLASS AND MADULSIMA WHICH TRADED 1.85 MILLION AND 1.19 MILLION SHARES RESPECTIVELY. JKH CONTRIBUTED THE MAJOR SHARE TO TURN OVER WHICH AMOUNTED TO 12.7 MILLION RUPEES WHILE KURUWITA AND MADULSIMA FOLLOWED THERE WERE NO CROSSINGS TODAY THE ALL SHARE DROPPED 15.26 POINTS TO 2,610.43 WHILE THE MILANKA SLIPPED 27.29 POINTS TO CLOSE TRADING AT 3,479.59 THE DAY’S RUPEES

TURN

OVER

RECORDED

A

FIGURE

OF

148.1

MILLION

LEADING THE DAY’S GAINERS WERE MADULSIMA, KAHAWATTE, TALAWAKELE, ELPITIYA AND DURDANS WHILE KANDY HOTELS, LANKEM CEYLON, ALUFAB, SERENDIB HOTELS- NON VOTING AND BAIRAHA FARMS TOPPED THE DAY’S LOSERS LIST LANKEM CERAMIC LIMITED ANNOUNCEMENT FOR THE DAY FOREX RATES

MADE

AN

INTERIM

DIVIDEND

SEGMENT: DATE: REPORTER: EDITOR: SLUG:

MAIN 19TH NOVEMBER 2007 RIYAD R. ANOUK T. BUDGET 2008 VOTE -CARD/VTR

THE GOVERNMENT WAS ABLE TO PASS THE 2008 BUDGET WITH A MAJORITY OF 16 VOTES IN PARLIAMENT TODAY. THERE WERE 118 VOTES FOR AND 102 AGAINST AT THE END OF THE VOTE. THE NECESSARY VOTES WERE RALLIED BY THE GOVERNMENT AMIDST COUNTER CLAIMS BY THE MAIN OPPOSITION UNITED NATIONAL PARTY THAT THEY WILL DEFEAT THE BUDGET TODAY. MEMBERS OF PARLIAMENT, REPRESENTING THE UPFA EPDP, SLMC, CWC, UPF, JHU AND THE UNP DEMOCRATIC GROUP, VOTED FOR THE BUDGET. THE MAIN OPPOSITION, JOINED BY THE TNA AND SLFP MAHAJANA WING AND THE JANATHA VIMULTHI PERAMUNA VOTED AGAINST. 2 MEMBERS OF PARLIAMENT ABSTAINED FROM VOTING TODAY, WHILE A FURTHER 2 MP’S WERE NOT PRESENT AT THE TIME OF VOTING. READ ON CARD BUDGET 2008 VOTE FOR 118 AGAINST 102 ABSTENTIONS 2 ABSENTEES 2

SEGMENT: DATE: REPORTER: EDITOR: SLUG:

MAIN 19TH NOVEMBER 2007 RIYAD R. ANOUK T. S&P-FITCH ON SLT- DRY / FLASH

SRI LANKA’S LARGEST FIXED LINE TELEPHONE OPERATOR SRI LANKA TELECOM’S LONG TERM FOREIGN CURRENCY ISSUER DEFAULT RATING WAS AFFIRMED AT BB MINUS WITH A NEGATIVE OUTLOOK BY FITCH RATINGS. AT THE SAME TIME THE AGENCY AFFIRMED SLT’S LONG-TERM LOCAL CURRENCY IDR OF BB MINUS AS WELL AS ITS NATIONAL LONG-TERM RATING AT ‘AAA LANKA’ WITH STABLE OUTLOOKS ALONG WITH THE BB MINUS RATING ON ITS SENIOR UNSECURED NOTES MATURING IN 2009. ROLL VTR

VOICE OVER / S&P-FITCH ON SLT / RIYAD / 19TH NOVEMBER 2007 / - VTR THIS BOND ISSUE WAS THE 1ST INTERNATIONAL FIXED RATE BOND ISSUED FROM A CORPORATE IN SRI LANKA AND WAS ALSO THE 1ST TO BE ASSIGNED AN INTERNATIONAL CREDIT RATING. SLT CONTINUES TO BENEFIT FROM MODEST DEBT AND POSITIVE FREE CASH FLOWS GENERATED FROM ITS CORE BUSINESS WHICH SERVICES OVER 2 MILLION CUSTOMERS. FURTHER TO THIS SLT HAS MADE MAJOR INROADS INTO THE FIXED WIRELESS MARKETS AND HAS CAPTURED 25% OF THE MARKET FROM THE MODEST 10% IN MARKET SHARE IT ENJOYED 2 YEARS AGO. MEANWHILE, INTERNATIONAL RATING AGENCY STANDARD & POOR’S ALSO MADE AN UPWARD REVISION TO SLT’S LONG TERM FOREIGN CURRENCY RATING FROM B PLUS TO A DOUBLE B MINUS. IT ALSO RAISED THE RATING ON THE 100 MILLION DOLLAR SENIOR UNSECURED NOTES DUE IN 2009 TO BB MINUS FROM B+. S & P STATES THAT IT FEELS THAT IN THE EVENT OF A REASONABLE OPERATING ENVIRONMENT STRESS SCENARIO, COUPLED WITH POTENTIAL SOVEREIGN INTERVENTION ON FOREIGN CURRENCY INFLOWS, THERE IS RELATIVELY MATERIAL PROBABILITY THAT THE ISSUE WOULD STILL BE ABLE TO SERVICE ITS FOREIGN DEBT. ENDS CARD 1 S&P RATES SLT ABOVE THE COUNTRY’S SOVEREIGN RATING CARD 2 “This rating action follows S&P’s opinion that in the event of a reasonable operating environment stress scenario, coupled with potential sovereign intervention on foreign currency flows, there is relatively material probability that the issue would still be able to service its foreign currency obligations.” - Yasmin Wirjawan

Credit Analyst S&P

SEGMENT DATE REPORTER SLUG

: : : :

MAIN 19/11/07 LASHINI TELEPHONE - VTR

MELANIE BENNETTE OF CINNAMON GRAND EMERGED THE WINNER OF THE TELEPHONE OPERATOR OF THE YEAR CONTEST ORGANIZED BY THE LIONS CLUB OF COLOMBO ELVITIGALA. THE WINNER WAS SELECTED FROM AMONG 58 CONTESTANTS FOLLOWING A RIGOROUS SELECTION PROCESS WHICH INCLUDED INTERVIEWS, WRITTEN TESTS AND PROJECT REPORTS. ROLL VTR INFO TAGS: ‘TELEPHONE OPERATOR OF ‘07’ Melanie Bennette of Cinnamon Grand SUPER: Asoka Gunasekara Past International President ’03 – ’05 Lions Club International

VOICE OVER – LASHINI – TELEPHONE – 19/11/07 – VTR THE CONTESTANTS WERE ASSESSED ON THEIR COMPETENCE IN AREAS SUCH AS TELEPHONE ETIQUETTE, TERMINOLOGY, LISTENING COMPREHENSION AND TECHNICAL KNOWLEDGE. THIS YEARS WINNER MELANIE BENNETTE TOOK HOME A CASH PRICE OF 100,000 RUPEES WHILE THE FIRST RUNNER UP ZAMANI NAZEEM FROM DIALOG TELECOM AND SECOND RUNNER UP J.F.K. MELANIE OF LANKA BELL WON 50,000 AND 25,000 RUPEES RESPECTIVELY. 17:25 THE ERA OF TELEPHONE OPERATORS ARE MORE MOVED AWAY AND TODAY TELEPHONE OPERATORS ARE MAINLY SECRETARIES TO THE VERY SENIOR OFFICERS WHETHER IT IS GOVERNMENT OF OR PRIVATE SECTOR AND THEY DO A DUAL JOB AND MORE TO IT IS THAT THEY ARE THE FIRST GREETER AT ANY ORGANIZATION THAT YOU REPRESENT 17:50 THE CONTEST WAS ORGANIZED FOR THE SIXTH YEAR. ENDS.

SEGMENT DATE REPORTER SLUG

: : : :

MAIN 19/11/07 LASHINI UNDP – VTR

A LATEST REPORT RELEASED JOINTLY BY THE UNITED NATIONS AND THE ADB OUTLINES THAT SRI LANKA HAS SHOWN OUTSTANDING PROGRESS TOWARDS ACHIEVING THE MILLENNIUM DEVELOPMENT GOALS BY 2015. THE REPORT, WHICH HAS FOCUSED ON THE ASIAN AND THE PACIFIC REGION OUTLINES THAT SRI LANKA HAS DONE WELL IN THE AREAS OF PRIMARY EDUCATION, LITERACY AND GENDER EQUALITY. THE OUTCOMES OF THE REPORT TITLED “THE MILLENNIUM DEVELOPMENT GOALS: PROGRESS IN ASIA AND THE PACIFIC 2007” WERE REVEALED TO THE MEDIA TODAY IN COLOMBO MARKING THE HALFWAY POINT OF THE PERIOD SET TO ACHIEVE THE MDG’S. ROLL VTR. INFO TAGS: ‘MILLENNIUM DEVELOPMENT GOALS’ Progress achieved but inequality is a problem SUPERS: Neil Buhne UN Resident Coordinator Sri Lanka

VOICE OVER – LASHINI – 19/11/07 – UNDP – VTR THE COUNTRY’S WORLD OVER AGREED TO WORK TOWARDS 8 GOALS SET BY THE UNITED NATIONS IN YEAR 2000 TO BE ACHIEVED BY 2015, WHICH IF DONE WOULD HELP IN HALVING EXTREME POVERTY, HALTING THE SPREAD OF HIV AND PROVIDING UNIVERSAL PRIMARY EDUCATION. THE REPORT IS A JOINT INITIATIVE OF THE ASIAN DEVELOPMENT BANK, UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC AND THE UNITED NATIONS DEVELOPMENT PROGRAM. IT POINTS OUT THAT THE SRI LANKAN GOVERNMENT’S POLICIES AND CONCERTED TIMELY RESPONSES SUCH AS FREE EDUCATION AND ACCESS TO FREE HEALTH CARE HAVE RESULTED IN THE COUNTRY OBTAINING A VERY HIGH HUMAN DEVELOPMENT INDEX. AS SUCH, IT SAYS THIS HAS SET AN EXAMPLE COUNTRIES IN THE ASIA PACIFIC REGION TO FOLLOW.

FOR

OTHER

17:40 a foundation that is stronger than many other countries in the region or around the world. 17:46 But this over all progress has been concentrated in the western provinces and hides wide regional and income disparities.17:55 Poverty in all its dimensions is still severe for example amongst the plantation population and in parts of southern provinces and while data is still not yet available the situation in which the people in the north and the east live is of great concern to everyone 18:13 This report discloses that despite high economic growth inequality is on the rise in sl as it is in many countries in the region.18:24 ENDS/

SEGMENT: MAIN DATE: 19TH NOV 07 REPORTER: ANOUK SLUG: CIM THE CHAIRMAN OF THE CHARTERED INSTITUTE OF MARKETING UK, PAUL GOSTICK STATES THAT COMPANY BOARDS NEED TO EMBRACE MARKETING IN ORDER TO MAKE HEADWAY IN THE CORPORATE WORLD. HE STATES THAT THIS SHOULD BE DONE BY EITHER HAVING A MARKETING DIRECTOR ON THE BOARD OR BY EMBRACING THE FUNCTION THROUGHOUT THE COMPANY. GOSTICK SHARED HIS VIEWS AT THE CIM CEO BREAKFAST FORUM HELD RECENTLY IN COLOMBO. ROLL VTR super Paul Gostick Chairman The Chartered Institute of Marketing INFO TAG ‘CIM CEO BREAKFAST FORUM’

VOICE OVER/ 19TH NOV 07/ CIM/ ANOUK TOP FIGURES FROM SRI LANKA’S CORPORATE SPHERE WERE PRESENT FOR THE CEO BREAKFAST FORUM ORGANIZED BY THE CHARTERED INSTITUTE OF MARKETING SRI LANKA REGION RECENTLY. SPEAKING AT THE FORUM, PAUL GOSTICK, THE CHAIRMAN OF THE CHARTERED INSTITUTE OF MARKETING UK SHARED HIS INSIGHTS REGARDING MARKETING AND ITS CORE FUNCTIONS. VOICE CUT (7:20) I THINK MARKETING HAS GOT TO STOP THINKING ABOUT TACTICAL ACTIVITY WHICH I THINK WE DO A LOT OF THE TIME. AND WE TALK ABOUT THE 4P’S AT THE END OF THE DAY, PRICE, PROMOTION, PLACE AND PRODUCT ARE TACTICAL THINGS. WHAT MARKETING NEEDS TO DO IS TAKE BACK THE INITIATIVE AND START THINKING MORE STRATEGICALLY AND HELPING THE CEO TO DRIVE STRATEGIC OBJECTIVES (7:52) HE WENT ON TO EXPLAIN THE CORE FUNCTION OF MARKETING, MOVING AWAY FROM THE TRADITIONAL FOCUS ON THE FOUR PRINCIPLES OF PRODUCT, PRICE, PLACE AND PROMOTION. VOICE CUT (16:30) I TALKED ABOUT 4P’S, THERE’S ONLY 1P. IT’S THIS COMMUNICATIONS ISSUE. SO WHAT I’D LIKE TO SAY IS THAT, MARKETING IS NOT JUST MARKETING COMMUNICATIONS. IT’S A VERY IMPORTANT PART OF MARKETING, BUT ULTIMATELY WE NEED TO UNDERSTAND WHICH CUSTOMERS WE’RE GOING TO FOCUS ON AND WHAT UNIQUE PROPOSITIONS WE’RE GOING TO OFFER THEM. ONLY WHEN WE ARE CLEAR ABOUT THOSE STRATEGIC MATTERS, WE THEM COMMUNICATE THE AUDIENCE’S MEDIA WITH APPROPRIATE MESSAGES (17:08) GOSTICK CONCLUDED THAT ALTHOUGH COMPANY HEADS IDENTIFY PROBLEMS THAT ARE DIRECTLY LINKED TO AND CAN BE RESOLVED THROUGH THE MARKETING FUNCTION, THEY MOST OFTEN FAIL TO INCLUDE MARKETING AS A DISCIPLINE ON THE BOARD. VOICE CUT (10:45) THE VERY TOP ISSUES- CUSTOMER 2 ISSUES IN THE MARKET PARTICULARLY IN B2B MARKETING PARTICULARLY THE WRONG

LOYALTY AND RETENTION. THE NO PLACE WERE AROUND PRICES, AND I CAN ARGUE THAT PRICE IS INSTRUMENT TO USE AND

DIFFERENTIATION AND BRANDING. THESE ARE ALL MARKETING ISSUES, AND THEY ARE TOP OF THE CEO’S AGENDA. SO IF THEY’RE TOP OF THE CEO’S AGENDA, WHY IS MARKETING NOT INVITED ONTO THE BOARD? (11:19) ENDS/

STOX THE CSE OPENED THE WEEK TO A DULL DAY OF TRADING AND ENDED IN THE RED. NAWALOKA HOSPITALS TRADED THE HIGHEST VOLUME OF 3.15 MILLION SHARES FOR THE DAY AND WAS FOLLOWED BY CEYLON GLASS AND MADULSIMA WHICH TRADED 1.85 MILLION AND 1.19 MILLION SHARES RESPECTIVELY. JKH CONTRIBUTED THE MAJOR SHARE TO TURN OVER WHICH AMOUNTED TO 12.7 MILLION RUPEES WHILE KURUWITA AND MADULSIMA FOLLOWED THERE WERE NO CROSSINGS TODAY CARD 1 THE ALL SHARE DROPPED 15.26 POINTS TO 2,610.43 WHILE THE MILANKA SLIPPED 27.29 POINTS TO CLOSE TRADING AT 3,479.59 THE DAY’S RUPEES

TURN

OVER

RECORDED

A

FIGURE

CARD 2 LEADING THE DAY’S GAINERS WERE TALAWAKELE, ELPITIYA AND DURDANS

OF

148.1

MADULSIMA,

MILLION

KAHAWATTE,

CARD 3 WHILE KANDY HOTELS, LANKEM CEYLON, ALUFAB, SERENDIB HOTELSNON VOTING AND BAIRAHA FARMS TOPPED THE DAY’S LOSERS LIST CARD 4 LANKEM CERAMIC LIMITED ANNOUNCEMENT FOR THE DAY FOREX RATES CARD 5 CARD 6

MADE

AN

INTERIM

DIVIDEND

BUDGET 2008 VOTES FOR

- 118

VOTES AGAINST

- 102

ABSTAINED

-

02

NOT PRESENT

-

02