30th Jan 08

ATTN: MS ANNIKA SENANAYAKE RUNDOWN THE STATE OF BUSINESS – 30TH JAN, 2008 SUSTAINABLE ENERGY

VTR

RAVI

CEPA

VTR

SAMANTHA

1:50

VTR

SAMANTHA

1:30

ROYAL CERAMICS

CARD

RIYAD

0:45

STANDARD CHARTERED

VTR

ANOUK

1:30

T-BILLS ADD DEALING ROOM BRIDGE WIJAY@ SAMPATH ADD STATE OF BUSINESS BRIDGE MAS ADD CORPORATE BRIDGE

ADD STOCK WATCH BRIDGE STOCK UPDATE

CARDS

01.30

CURRENCY

CARDS

00.20

LINE UP EDITOR: ANCHOR:

ANOUK ANOUK

HEADLINES 1. EXPERTS SAY 35% ELECTRICITY TARIFF INCREASE NECESSARY FOR CEB TO BREAK EVEN, AND 2. INCLUSION OF TRADE IN SERVICES VITAL FOR EXPLOITING POTENTIAL OF CEPA SAYS MINISTER

1. ENERGY - VTR AMIDST REPORTS OF A POSSIBLE ELECTRICITY TARIFF HIKE ENERGY EXPERTS POINT OUT THAT THE CEYLON ELECTRICITY BOARD WILL HAVE TO INCREASE RATES BY AT LEAST 35% TO BREAK EVEN. THIS WAS STATED BY ENERGY EXPERT DR. TILAK SIYAMBALAPITIYA TODAY WHEN WE INQUIRED FROM HIM AS TO WHAT CONSUMERS SHOULD EXPECT IF THE CEB INCREASES ELECTRICITY TARIFFS. CEB OFFICIALS RECENTLY ANNOUNCED TO THE MEDIA THAT A PRICE HIKE IS AN OPTION THEY ARE LOOKING AT IN ORDER TO CUT DOWN PRESENT LOSSES EXPERIENCED DUE TO SELLING ELECTRICITY AT LOWER RATES. ROLL VTR 2. CEPA- VTR MINISTER OF INTERNATIONAL TRADE PROFESSOR G.L PIERIS SAYS THE INCLUSION OF TRADE IN SERVICES TO THE COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT THE GOVERNMENT INTENDS TO ENTER INTO WITH INDIA IS VITAL TO DRIVE THE ECONOMY. PROFESSOR PEIRIS MADE THIS COMMENT LAST EVENING WHEN HE ADDRESSED A SEMINAR ATTENDED BY A GROUP OF ENGINEERS IN COLOMBO ON THE PROPOSED TRADE AGREEMENT. ROLL VTR 3. NOW WE TAKE A LOOK AT THIS WEEK’S TREASURY BILL PRIMARY MARKET AUCTION RATES 4. WIJAY DAMBAWINNE FROM SAMPATH BANK GIVES US AN OVERVIEW OF THIS WEEK’S DEALING ROOM OPERATIONS BREAK 5. MAS- VTR MAS HOLDINGS ANNOUNCES THE LAUNCH OF THE MAS INSTITUTE OF MANAGEMENT AND TECHNOLOGY OR MIMT LOCATED AT THE MAS FABRIC PARK, THULHIRIYA. THE CEREMONIAL OPENING OF MIMT WHICH WAS ESTABLISHED AT INVESTMENT OF 1 MILLION U.S. DOLLARS WILL TAKE PLACE TOMORROW. THIS WAS STATED AT A MEDIA BRIEFING HELD IN COLOMBO RECENTLY.

AN

ROLL VTR 6. CORPORATE ROYAL CERAMICS 3QF’08 SRI LANKA’S LARGEST CERAMICS MANUFACTURER ROYAL CERAMICS LANKA LIMITED HAS POSTED HEALTHY 3RD QUARTER RESULTS FOR THE 2007/2008 FINANCIAL YEAR AS NET PROFIT HAS RISEN BY 58.3% YEAR ON YEAR TO 168.2 MILLION RUPEES. CUMULATIVE EARNINGS FOR THE CURRENT YEAR HAVE GROWN BY 41.7% YEAR ON YEAR TO 363.1 MILLION RUPEES AS REVENUE FOR THE QUARTER HAS INCREASED BY 36.3% TO 950 MILLION RUPEES, WHILST CUMULATIVE REVENUE DURING THE FIRST 3 QUARTERS OF 2007/2008 HAS ALSO NOTCHED UP 36.5%. DOMESTIC SALES IS STILL VERY VIBRANT WITH 20% GROWTH, EVEN THOUGH 3 RD QUARTER EXPORT VOLUMES HAVE EXPERIENCED A NEGATIVE GROWTH OF 14% YEAR ON YEAR ON ITS LOW MARGIN CERAMICS EXPORTS. CARD OUT ANALYSTS STATE THAT THE COMPANY’S STOCK OFFERS GOOD VALUE ON 4.2 TIMES BOTTOM LINE FORECAST FOR THE 2008 FINANCIAL YEAR AND 2.8 TIMES PROJECTED EARNINGS FOR THE 2009 FINANCIAL YEAR, WHILE TRADING ON 1.0 TIMES PRICE TO BOOK VALUE DURING THE 2008 FINANCIAL YEAR. READ ON 7. STANDARD THE REPLICA OF THE GOLDEN BATONS WHICH ARE TO BE AWARDED TO THE WINNERS OF THE GREATEST RACE ON EARTH MARATHON ARRIVED IN SRI LANKA YESTERDAY. CREATED AND SPONSORED BY STANDARD CHARTERED BANK SINCE 2004, THE GREATEST RACE ON EARTH IS NOW ENTERING ITS FOURTH SUCCESSFUL SERIES, WITH 1.08 MILLION U.S. DOLLARS IN PRIZE MONEY. THE BATON WAS WELCOMED BY THE NATIONAL MARATHON TEAM, ATHLETICS ASSOCIATION OFFICIALS AND STANDARD CHARTERED BANK CEO AND MANAGEMENT COMMITTEE MEMBERS. ROLL VTR BREAK STOX

THE MARKET WAS ON POSITIVE GROUND TILL MID-DAY TODAY AND THEN LOST MOMENTUM. HAYCARB SAW A CROSSING OF 300,000 SHARES AT 40 RUPEES AND 50 CENTS. DIALOG WAS THE HIGHEST TRADED COUNTER FOR THE DAY WITH 690,000 SHARES CHANGING HANDS. CEYLON GLASS FOLLOWED TRADING 360,000 SHARES WHILE 330,000 HAYCARB SHARES ALSO CHANGED HANDS. AITKEN SPENCE MADE THE MAIN CONTRIBUTION OF 13.53 MILLION RUPEES TO THE DAY’S TURNOVER WHILE HAYCARB AND DIALOG INFUSED 13.51 MILLION AND 12.52 MILLION RUPEES RESPECTIVELY. FOREIGN BUYING WAS AT 44.3 MILLION WITH FOREIGN SELLING TAGGED AT 29.3 MILLION. THE ALL SHARE SLIPPED 10.92 POINTS CLOSING AT 2,433.79 WHILE THE MILANKA ENDED ON 3,091.62 AFTER LOSING 28.96 POINTS. TURNOVER WAS AT 136.9 MILLION RUPEES. THE DAY’S MAIN GAINERS WERE CEYLON BREWERY, KAHAWATTE, SERENDIB HOTELS, MORISONS AND KEELLS FOOD, WHILE ARPICO, SEYLAN MERCHANT, COLOMBO LAND, SIERRA CABLE AND TAJ LANKA LED THE LOSERS LIST. JOHN KEELLS HOLDINGS AND ANNOUNCEMENTS FOR THE DAY.

COMMERCIAL

LET’S TAKE A LOOK AT TODAY’S FOREX RATES!

LEASING

MADE

DIVIDEND

SEGMENT: DATE: REPORTER: SLUG:

MAIN 30/01/08 RAVI ENERGY - VTR

AMIDST REPORTS OF A POSSIBLE ELECTRICITY TARIFF HIKE ENERGY EXPERTS POINT OUT THAT THE CEYLON ELECTRICITY BOARD WILL HAVE TO INCREASE RATES BY AT LEAST 35% TO BREAK EVEN. THIS WAS STATED BY ENERGY EXPERT DR. TILAK SIYAMBALAPITIYA TODAY WHEN WE INQUIRED FROM HIM AS TO WHAT CONSUMERS SHOULD EXPECT IF THE CEB INCREASES ELECTRICITY TARIFFS. CEB OFFICIALS RECENTLY ANNOUNCED TO THE MEDIA THAT A PRICE HIKE IS AN OPTION THEY ARE LOOKING AT IN ORDER TO CUT DOWN PRESENT LOSSES EXPERIENCED DUE TO SELLING ELECTRICITY AT LOWER RATES. ROLL VTR Dr. Thilak Siyambalapitiya Energy Expert Harsha Wickramasinghe Deputy Director General Sustainable Energy Authority TAG ‘POWER CRISIS’

VOICE OVER/ENERGY/RAVI/30-01-08 VC - CEB 13:32 IN MY ESTIMATES CEB NEEDS AN AVERAGE OF ABOUT 14.50 RUPEES TO BREAK EVEN. THAT IS WITHOUT PAYING DEBTS. TO MEET ALL THE FUEL EXPENSES AND COMMITMENTS TO ALL PVT. POWER DEVELOPERS BOTH MINISTRY ALSO AND THERMAL AS WELL AS TO MAINTAIN THE NETWORK AND MAINTAIN THE O/H AND STAFF. PRESENT AVG. PRICE IS ABOUT 10.25 SO IN MY ESTIMATE CEB SHOULD BE ASKING FOR A TARIFF INCREASE OF ABOUT 35% 14:15 IT IS IN THIS BACKDROP THAT A CONFERENCE WAS HELD IN COLOMBO TODAY UNDER THE TITLE ‘ACHIEVING SUSTAINABILITY AND EQUITY IN ENERGY: POLICY CHOICES FOR THE FUTURE’. SPEAKING HERE AUTHORITIES URGED THE PUBLIC TO CONSERVE ELECTRICITY WHICH WILL HELP CUT DOWN THEIR BILLS AND REDUCE THE USAGE OF COSTLY FUEL TO GENERATE ELECTRICITY. VC – HARSHA 39:03 IMPORTED FOSSIL FUEL WAS 160 BILLION. OUT OF WHICH WE COULD SAVE MORE THAN 10% THROUGH VARIOUS SECTORS. 18 BILLION IS A VERY CONSERVATIVE ESTIMATE OF OUR LOSSES. IN 2007 THE TRANSPORT LOSSES ALONE IS 20 BILLION. 39:37 END/

CORPORATE-FITCH FITCH RATINGS LANKA HAS AFFIRMED THE NATIONAL RATING ON THE LEASE BACKED TRUST CERTIFICATES ISSUED BY PEOPLES LEASING COMPANY TRUST THIRTY TWO AT ‘A’ MINUS LANKA. THE AFFIRMATION OF THE CURRENT RATING IS BASED ON THE UN-INTERRUPTED PAYOUTS MADE TO LBTC INVESTORS DURING THE PERIOD UNDER REVIEW FROM MARCH 2007 TO NOVEMBER 2007, THE AVAILABILITY OF CREDIT ENHANCEMENT TO INVESTORS IN THE FORM OF PRINCIPAL OVER-COLLATERALIZATION, THE MEETING OF THE DEBT SERVICE COVER TRIGGER, AND THE REPLACEMENT OF DELINQUENT AND PRE-TERMINATED LEASE CONTRACTS IN JANUARY 2008. AROUND 27% OF THE OUTSTANDING PRINCIPAL ON THE NOTES WERE PAID OFF AS AT NOVEMBER 2007, REDUCING THE BALANCE LBTC PRINCIPAL TO 296 MILLION RUPEES. MONTHLY COLLECTIONS OF CURRENT DUES AND OVER-DUES AVERAGED 53% AND 52%, RESPECTIVELY, FOR THE PERIOD REVIEWED. READ ON

SEGMENT: DATE: REPORTER: EDITOR: SLUG:

CORPORATE 30TH JANUARY 2008 RIYAD R. ANOUK T. ROYAL CERAMICS 3QF’08

VTR/FLASH SRI LANKA’S LARGEST CERAMICS MANUFACTURER ROYAL CERAMICS LANKA LIMITED HAS POSTED HEALTHY 3RD QUARTER RESULTS FOR THE 2007/2008 FINANCIAL YEAR AS NET PROFIT HAS RISEN BY 58.3% YEAR ON YEAR TO 168.2 MILLION RUPEES. CARD IN CUMULATIVE EARNINGS FOR THE CURRENT YEAR HAVE GROWN BY 41.7% YEAR ON YEAR TO 363.1 MILLION RUPEES AS REVENUE FOR THE QUARTER HAS INCREASED BY 36.3% TO 950 MILLION RUPEES, WHILST CUMULATIVE REVENUE DURING THE FIRST 3 QUARTERS OF 2007/2008 HAS ALSO NOTCHED UP 36.5%. DOMESTIC SALES IS STILL VERY VIBRANT WITH 20% GROWTH, EVEN THOUGH 3 RD QUARTER EXPORT VOLUMES HAVE EXPERIENCED A NEGATIVE GROWTH OF 14% YEAR ON YEAR ON ITS LOW MARGIN CERAMICS EXPORTS. CARD OUT ANALYSTS STATE THAT THE COMPANY’S STOCK OFFERS GOOD VALUE ON 4.2 TIMES BOTTOM LINE FORECAST FOR THE 2008 FINANCIAL YEAR AND 2.8 TIMES PROJECTED EARNINGS FOR THE 2009 FINANCIAL YEAR, WHILE TRADING ON 1.0 TIMES PRICE TO BOOK VALUE DURING THE 2008 FINANCIAL YEAR. READ ON CARD Royal Ceramics 07/08 Q3 Performance Profits up by 58.3% Cumulative earnings up by 41.7%

SEGMENT: CORPORATE DATE: 30TH JAN 08 REPORTER: ANOUK SLUG: STANDARD THE REPLICA OF THE GOLDEN BATONS WHICH ARE TO BE AWARDED TO THE WINNERS OF THE GREATEST RACE ON EARTH MARATHON ARRIVED IN SRI LANKA YESTERDAY. CREATED AND SPONSORED BY STANDARD CHARTERED BANK SINCE 2004, THE GREATEST RACE ON EARTH IS NOW ENTERING ITS FOURTH SUCCESSFUL SERIES, WITH 1.08 MILLION U.S. DOLLARS IN PRIZE MONEY. THE BATON WAS WELCOMED BY THE NATIONAL MARATHON TEAM, ATHLETICS ASSOCIATION OFFICIALS AND STANDARD CHARTERED BANK CEO AND MANAGEMENT COMMITTEE MEMBERS. ROLL VTR SUPER Clive Haswell- CEO Standard Chartered Bank TAG ‘GREATEST RACE ON EARTH’

VOICE OVER/ 30TH JAN 08/ STANDARD THE GREATEST RACE ON EARTH IS THE WORLD’S ONLY MARATHON TEAM RELAY SERIES, WHICH RUNS ACROSS NAIROBI, SINGAPORE, MUMBAI AND HONG KONG WITH TEAMS FROM AROUND THE WORLD PARTICIPATING UNDER THE MALE AND FEMALE CATEGORIES. THE SRI LANKAN TEAMS CURRENTLY LEAD IN THE MIDDLE EAST AND SOUTH ASIAN CATEGORY. THE GOLD BATON WHICH ARRIVED IN SRI LANKA YESTERDAY IS A 9 CARAT, 300 GRAM, SOLID GOLD RELAY BATON THAT HAS BEEN SPECIALLY COMMISSIONED FOR THE RACE AND IS AWARDED TO THE WINNING TEAMS OF THE GREATEST RACE ON EARTH NATIONALS CHALLENGE. THE GOLDEN SCROLL WHICH CONTAINS THE BATON CARRIES ENVIRONMENTAL PLEDGES MADE BY STANDARD CHARTERED REPRESENTATIVES, SPORTS OFFICIALS AND ATHLETES WHO PLEDGE TO TAKE ACTION IN SUPPORT OF THE ENVIRONMENT. VOICE CUT (6:08) THE COUNTRY PLEDGES PER ENVIRONMENTAL GREATEST RACE FEBRUARY 2008 ENDS/

THAT ATTRACTS THE HIGHEST NUMBER OF ENVIRONMENTAL CAPITA WILL RECEIVE $ 500,000 IN SUPPORT OF THE PROJECT. THE RESULTS WILL BE ANNOUNCED FOLLOWING THE ON EARTH MARATHON IN HONG KONG ON MONDAY THE 18TH OF (6:32)

SEGMENT: DATE: REPORTER: SLUG:

MAIN 30/01/08 SAMANTHA CEPA- VTR

MINISTER OF INTERNATIONAL TRADE PROFESSOR G.L PIERIS SAYS THE INCLUSION OF TRADE IN SERVICES TO THE COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT THE GOVERNMENT INTENDS TO ENTER INTO WITH INDIA IS VITAL TO DRIVE THE ECONOMY. PROFESSOR PEIRIS MADE THIS COMMENT LAST EVENING WHEN HE ADDRESSED A SEMINAR ATTENDED BY A GROUP OF ENGINEERS IN COLOMBO ON THE PROPOSED TRADE AGREEMENT. ROLL VTR SUPER Prof. G.L. Peiris- Minister Export Development & International Trade Tag “IMPACT OF CEPA”

VOICE OVER/CEPA/SAMANTHA/30-01-08 THE SEMINAR WAS HELD UNDER THE TITLE “EXPORT AND IMPORT PROFESSIONAL SERVICES, OPPORTUNITIES FOR SRI LANKAN ENGINEERS”.

OF

THE OBJECTIVE OF THE SEMINAR WAS TO INITIATE A DEEPER DISCUSSION ON THE INCLUSION OF TRADE IN SERVICES UNDER THE PROPOSED CEPA AGREEMENT. SRI LANKA AND INDIA ARE LOOKING AT 12 MAIN SECTORS OF SERVICES WHICH FILTER DOWN TO 155 SUB SECTORS SUCH AS TELECOMMUNICATION, CONSTRUCTION, ENGINEERING, EDUCATION, ENERGY, ICT, TOURISM AND HEALTH AMONG MANY OTHERS. 21:27 When you are talking about apparel, spices or gem and jewellery what you are talking about, those banking sector is important, the insurance sector is important, the it sector is important those are the things that drive the engine so service are absolutely necessary 21:40 NEGOTIATIONS BETWEEN SRI LANKA AND INDIA BEGAN IN 2004 TO EXPAND THE FREE TRADE AGREEMENT INTO A COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT. SO FAR SRI LANKA HAS HAD 11 ROUNDS OF NEGOTIATIONS UNDER THE CEPA AGREEMENT WHICH IS YET TO BE FINALIZED DESPITE SEVERAL DEADLINES BEING PUT IN PLACE EARLIER. A MEETING BETWEEN THE TWO COMMERCE SECRETARIES IS SCHEDULED TO BE HELD IN MARCH TO IRON OUT THE DIFFERENCES OF THE ALMOST-FINALIZED DRAFT OF THE CEPA AGREEMENT SUCH AS ISSUES PERTAINING TO TRADE IN SERVICES. END/

STOX THE MARKET WAS ON POSITIVE GROUND TILL MID-DAY TODAY AND THEN LOST MOMENTUM. HAYCARB SAW A CROSSING OF 300,000 SHARES AT 40 RUPEES AND 50 CENTS. DIALOG WAS THE HIGHEST TRADED COUNTER FOR THE DAY WITH 690,000 SHARES CHANGING HANDS. CEYLON GLASS FOLLOWED TRADING 360,000 SHARES WHILE 330,000 HAYCARB SHARES ALSO CHANGED HANDS. AITKEN SPENCE MADE THE MAIN CONTRIBUTION OF 13.53 MILLION RUPEES TO THE DAY’S TURNOVER WHILE HAYCARB AND DIALOG INFUSED 13.51 MILLION 12.52 MILLION RUPEES RESPECTIVELY. FOREIGN BUYING WAS AT 44.3 MILLION WITH FOREIGN SELLING TAGGED AT 29.3 MILLION. THE ALL SHARE SLIPPED 10.92 POINTS CLOSING AT 2,433.79 WHILE THE MILANKA ENDED ON 3,091.62 AFTER LOSING 28.96 POINTS. TURNOVER WAS AT 136.9 MILLION RUPEES. THE DAY’S MAIN GAINERS WERE CEYLON BREWERY, KAHAWATTE, SERENDIB HOTELS, MORISONS AND KEELLS FOOD, WHILE ARPICO, SEYLAN MERCHANT, COLOMBO LAND, SIERRA CABLE AND TAJ LANKA LED THE LOSERS LIST. JOHN KEELLS HOLDINGS AND ANNOUNCEMENTS FOR THE DAY.

COMMERCIAL

LET’S TAKE A LOOK AT TODAY’S FOREX RATES!

LEASING

MADE

DIVIDEND

SEGMENT: DATE: REPORTER: SLUG:

MAIN 29/01/08 SAMANTHA MAS- VTR

MAS HOLDINGS ANNOUNCES THE LAUNCH OF THE MAS INSTITUTE OF MANAGEMENT AND TECHNOLOGY OR MIMT LOCATED AT THE MAS FABRIC PARK, THULHIRIYA. THE CEREMONIAL OPENING OF MIMT WHICH WAS ESTABLISHED AT AN INVESTMENT OF 1 MILLION U.S. DOLLARS WILL TAKE PLACE ON THE 31ST OF THIS MONTH. THIS WAS STATED YESTERDAY.

AT

A

MEDIA

BRIEFING

ROLL VTR SUPER Chandan de Silva – CEO MAS Institute of Management and Technology TAGS “MANAGEMENT AND TECHNOLOGY” Fully equipped auditorium seats 300 people

HELD

IN

COLOMBO

VOICE OVER/MAS/SAMANTHA/29-01-08 THE MAS INSTITUTE OF MANAGEMENT AND TECHNOLOGY IS A PUBLIC TRAINING INSTITUTE WITH EXCEPTIONAL FACILITIES AND INFRASTRUCTURE, INCLUDING A FULLY EQUIPPED AUDITORIUM AND 17 TRAINING ROOMS INCLUDING LABS FOR ENGLISH LANGUAGE AND I.T. MIMT’S PARTICULAR FOCUS WILL BE ON THE TEXTILE, APPAREL, I.T AND BPO SECTORS. IT WILL OFFER A HOST OF I.T PROGRAMMERS RANGING FROM DIPLOMA LEVEL TO DEGREE PROGRAMMES IN ADDITION TO TECHNICAL PROGRAMMES IN THE TEXTILE AND APPAREL INDUSTRY. VOICE CUT- MIMT,CEO 03:36 I BELIEVE THAT IMPACT OF THE MIMT WILL SPREAD A LOT FURTHER OUR GOAL IS TO MAKE MIMT THE TRAINING GROUND TO DEVELOP INNOVATIVE MINES THAT WILL EMPOWER PEOPLE AND ENHANCE INDUSTRY IN SRI LANKA AND BEYOND. 03:55 ++ 27:10 WE WILL DO DIPLOMA PROGRAMME IN TEXTILE TRAINING, THEY WOULD BE YEARS DURATION AND WE WOULD OFFER SIMILAR DIPLOMA AND PERHAPS EVEN HIGHER LEVEL PROGRAMME IN IT WHICH MIGHT TAKE YEAR OR LONGER. 27/28 MAS ALSO PLANS TO LAUNCH THE MAS BUSINESS SCHOOL LATER IN THE YEAR FOR SENIOR EXECUTIVES WITH THE FOCUS BEING LEADERSHIP EXCELLENCE AND INNOVATION. END/