25th Nov Biz Round Up

ATTN: CHANDIMA UDABAGE – MD-ART TV BIZ ROUND UP – NOVEMBER 25TH, 2007 BUDGET

CARD

19TH MON

RIYAD

MONETARY

VTR

20TH TUE

CHAMI

ADB

VTR

21ST WED

CHAMI

FTA

VTR

23RD FRI

RIYAD

BOND

VTR

22ND THU

RIYAD

BREAK WRAP – NEWS IN BRIEF UNDP

VTR

19TH MON

LASHINI

ICTA

VTR

21ST WED

LASHINI

VTR

19TH MON

RIYAD

2. BANKS

VTR

20TH TUE

NISHANI

3. INTEL

VTR

22ND THU

NILANTHA

4. TELEPHONE

VTR

19TH MON

LASHINI

5. PIZZA BREAK 2

VTR

23RD FRI

LASHINI

MAIN NEWS CORPORATE NEWS 1.

SLT

SHORT BRIDGE

STOCKS ANCHOR: ANOUK PRODUCER: ANOUK HEADLINES 1. COLOMBO URGED TO GET ON ROUTE TO BECOME NEXT LOGISTICS HUB, AND 2. SRI LANKA URGED TO FULLY EXPLOIT INDO-LANKA FTA OR RISK LOSING OUT TO COMPETITORS

1. BUDGET 2008 VOTE -CARD/VTR THE GOVERNMENT WAS ABLE TO PASS THE 2008 BUDGET WITH A MAJORITY OF 16 VOTES IN PARLIAMENT LAST MONDAY. THERE WERE 118 VOTES FOR AND 102 AGAINST AT THE END OF THE VOTE. 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, WHILE A FURTHER 2 MP’S WERE NOT PRESENT AT THE TIME OF VOTING. READ ON 2. MONETARY – VTR THE

CENTRAL

BANK

SAYS

IN

A

BID

TO

CURB

DEMAND

DRIVEN

INFLATION THEY HAVE SIPHONED OFF EXCESS LIQUIDITY IN THE MARKET THROUGH OPEN MARKET OPERATIONS. IN ITS NOVEMBER MONETARY POLICY REVIEW THE BANK ANNOUNCED THAT REQUIRED STEPS WILL BE TAKEN AS AND WHEN NECESSARY TO MAINTAIN THE LIQUIDITY AT A DESIRED LEVEL. POLICY RATES FOR THE MONTH OF NOVEMBER WAS KEPT UNCHANGED, A TREND THAT CONTINUED OVER THE YEAR. ROLL VTR 3. ADB - VTR THE ASIAN DEVELOPMENT BANK URGES SRI LANKA TO TAKE ACTION SOON, IF THE COUNTRY IS TO CONVERT COLOMBO INTO A LOGISTICS HUB, BEFORE IT’S TOO LATE. THIS WAS STATED BY THE ADB’S DEPUTY COUNTRY DIRECTOR LAURANCE POCHARD IN COLOMBO LAST WEEK DURING A SEMINAR HELD UNDER THE TITLE “THE LOGISTICS HUB OF COLOMBO”

THE DONOR AGENCY POINTS OUT THAT SRI LANKA HAS THE POTENTIAL TO DEVELOP AS BOTH A MARITIME AND AVIATION HUB. ROLL VTR

4. INDIAN FTA EXPERTS WARN THAT UNLESS SRI LANKA STEPS UP AND FULLY EXPLOITS THE INDO-SRI LANKA FREE TRADE AGREEMENT, SRI LANKA WILL BE PUSHED ASIDE BY OTHER COUNTRIES COMPETING TO GRAB A SLICE ON INDIA’S TRADE POTENTIAL. ALTHOUGH OVER 4150 ITEMS ARE OFFERED TO SRI LANKA BY INDIA ON A DUTY FREE BASIS UNDER THE FTA THAT WAS SIGNED IN 1998, SRI LANKAN EXPORTS HAVE ONLY UTILIZED A MERE FRACTION OF THE PREFERENTIAL TRADE FACILITY OFFERED TO THEM. THIS WAS STATED AT A SEMINAR ORGANIZED BY THE NATIONAL CHAMBER OF EXPORTERS ON THE CURRENT STATUS OF THE INDIAN FTA, LAST FRIDAY. ROLL VTR 5. BOND MARKET SRI LANKA UNLIKE OTHER ECONOMIES IN THE REGION DOES NOT POSSESS AN ACTIVE BOND CORPORATE MARKET. DUE TO THIS SITUATION MOST CORPORATE ENTITIES SOURCE THEIR FUNDS PRIMARILY THROUGH THE BANKING SYSTEM WHICH IS A COSTLIER AFFAIR FOR BUSINESSES. A 2 DAY WORKSHOP ON CAPACITY BUILDING FOR DEVELOPMENT OF SRI LANKA’S BOND MARKET WAS JOINTLY ORGANIZED BY THE CENTRAL BANK AND THE UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC LAST WEEK. ROLL VTR BREAK

1. UNDP – VTR A 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 LAST WEEK IN COLOMBO MARKING THE HALFWAY POINT OF THE PERIOD SET TO ACHIEVE THE MDG’S. READ ON 2. ICTA – VTR WORLD BANK COUNTRY DIRECTOR NAOKO DEVELOPING THE I.T. AND BPO SECTOR PRIORITY IN SRI LANKA.

ISHII SHOULD

SAYS BE A

THAT HIGH

SHE SAYS THE COUNTRY’S PRIVATE SECTOR HAS MUCH TO GAIN FROM INVESTING IN THE GLOBAL I.T. BPO OFF-SHORING MARKET WHICH IS CURRENTLY ESTIMATED AT 100 BILLION U.S. DOLLARS AND GAINING AT 30% PER YEAR. SHE MADE THESE STATEMENTS AT THE 10TH PRIVATE SECTOR FORUM ORGANIZED BY THE INFORMATION AND COMMUNICATION TECHNOLOGY AGENCY OF SRI LANKA IN COLOMBO LAST WEEK. THE WORLD BANK COUNTRY DIRECTOR POINTED OUT THAT IN THE NEAR FUTURE, 60 MILLION JOBS WILL BE CREATED IN DEVELOPING COUNTRIES VIA OFF-SHORING. SHE SAID SRI LANKA WITH ITS CHEAPEST LABOUR AND LOWER OFFICE RENTAL COSTS COMPARED TO OTHER COUNTRIES IN THE REGION, IS WELL PLACED TO TAKE ADVANTAGE OF THIS OPPORTUNITY. READ ON

1. 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. 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+. READ ON 2. CHILD PORN OVER 16 CEO’S OF LOCAL AND FOREIGN BANKS OPERATING IN SRI LANKA LED BY THE GOVERNOR OF THE CENTRAL BANK AJITH NIVARD CABRAL CAME TOGETHER LAST WEEK TO LAUNCH THE BANKS’ CAMPAIGN TO CRUSH CHILD PORNOGRAPHY ON THE INTERNET. IN RESPONSE TO THE ALARMING INCREASE IN THE NUMBERS OF CHILDREN APPEARING IN WEB SITES THE BANKS’ CAMPAIGN TO CRUSH CHILD PORNOGRAPHY ON THE INTERNET OR B3CPI WAS LAUNCHED TO DETER THE FINANCIAL NETWORK WHICH SUPPORTS THESE SITES. THE B3CPI PROCESS THAT WILL BE LAUNCHED IN EACH OF THE BANKS CARD CENTERS WITH IMMEDIATE EFFECT WILL TRACK ANY PAYMENTS MADE TO SUSPICIOUS WEBSITES AND IDENTIFY AND FLAG THESE MERCHANTS. THE BANKS’ COALITION ALSO URGES THE PUBLIC TO EXERCISE THEIR CIVIC DUTY BY REPORTING ANY WEBSITE WHICH SUPPORTS CHILD PORNOGRAPHY OF ANY FORM OR TRANSACTIONS RELATED TO THE CRIME. READ ON

3. INTEL – VTR INTEL, THE WORLD LEADER IN SILICON INNOVATION LAUNCHED 16SERVER AND HIGH-END PC PROCESSORS USING AN ENTIRELY NEW TRANSISTOR FORMULA WHICH ALLEVIATES WASTEFUL ELECTRICITY LEAKS. THESE INTEL CORE 2 EXTREME AND LAUNCHED IN SRI LANKA LAST WEEK.

XEON

PROCESSORS

WERE

THE NEW 45 NANOMETER PROCESSORS BOAST NEARLY TWICE THE TRANSISTOR DENSITY OF PREVIOUS CHIPS BUILT ON THE COMPANY’S 65 NANOMETER TECHNOLOGY – THAT IS UP TO 820 MILLION TRANSISTORS FOR QUAD-CORE PROCESSORS, EACH USING INTEL’S NEW FORMULA. READ ON 4. 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. 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. READ ON 5. PIZZA – VTR PIZZA HUT AND DELI-FRANCE JOINED HANDS TO OPEN ITS FIRST OUTLET HOUSING BOTH RESTAURANTS UNDER ONE ROOF in BAMBALAPITIYA LAST WEEK.

THE COMBINED PIZZA HUT – DELIFRANCE OUTLET IS A RESULT OF THE RELOCATION OF THE COLPETTY OUTLET OF PIZZA HUT AND THE DUPLICATION ROAD OUTLET OF DELIFRANCE. THE NEW OUTLET CAN ACCOMMODATE 70 CUSTOMERS AND IN EQUIPPED WITH A PARTY ROOM FOR PIZZA HUT PATRONS. READ ON WE TAKE A BREAK, COMING OPERATIONS FOR THIS WEEK.

UP

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MARKET

BIMANI JOINS US FOR A BRIEFING OF WHAT TO EXPECT AT THE CSE THIS WEEK.