30th Nov 07

ATTN: MR CHANDIMA UDABAGE RUNDOWN THE STATE OF BUSINESS – 30TH Nov, 2007 DEBT

VTR

LASHINI

REFINERY

VTR

CHAMI

01.40

MILK

VTR

LASHINI

01.30

VTR

CHAMI

02.10

LOGISTICS BRIDGE LOGISTICS

-BREAK 1 - ADD STATE OF BUSINESS BRIDGE BIG INTERNATIONAL

VTR

ANOUK

BREAK 2 - STOCK WATCH STOCK UPDATE STOCK CURRENCY

CARDS VTR CARDS

01.30 01.00 00.20

LINE UP EDITOR ANCHOR

- ANOUK/ NISHANI - NISHANI

02.35

HEADLINES 1. RE-ENGINEERING DEBT- GOVERNMENT LOOKS AT LEAST COST DEBT MANAGEMENT, AND 2. SHELVING THE DELAYS- GOVERNMENT’S REFINERY EXPANSION SOON TO BECOME REALITY 1.DEBT–VTR THE SRI LANKAN GOVERNMENT IS NOW CONCENTRATING ON WORKING OUT A LEAST COST DEBT MANAGEMENT STRATEGY THAT WILL HELP CREATE MORE FISCAL SPACE. FINANCE SECRETARY DR. P. B. JAYASUNDERA SAID THIS IS A VITAL STEP THAT NEEDS TO BE ACHIEVED IF THE COUNTRY IS TO TELL A MORE SUCCESSFUL ECONOMIC STORY. HE WAS SPEAKING AT A FORUM ORGANIZED BY CITIBANK. 2.REFINERY–VTR THE GOVERNMENT SAYS THE LONG DELAYED REFINERY EXPANSION PLAN CAN BE NOW COMMENCED, FOLLOWING THE IRANIAN GOVERNMENT’S COMMITMENT TO FINANCING THE PROJECT. MINISTER OF PETROLEUM RESOURCES DEVELOPMENT A.H.M FOUZIE SPEAKING TO REPORTERS IN COLOMBO TODAY SAID THE IRANIAN GOVERNMENT AGREED TO DO SO DURING THE RECENT PRESIDENTIAL VISIT TO THE COUNTRY, OF WHICH HE WAS ALSO A PART. HOWEVER THE FINANCING OF THE PROJECT WILL BE DONE BASED ON THE RESULTS OF THE FEASIBILITY STUDY WHICH WOULD ALSO BE DONE BY THE GOVERNMENT OF IRAN FREE OF CHARGE. ROLL VTR

3.MILK - VTR SELLING COWS FOR BEEF HAS BECOME MORE PROFITABLE FOR SMALL SCALE DIARY PRODUCERS THAN USING THEM FOR MILK PRODUCTION, SAYS A DAIRY INDUSTRY EXPERT. THIS FACT WAS REVEALED DURING A RECENT DISCUSSION THAT US-AID HELD WITH LOCAL DIARY INDUSTRY REPRESENTATIVES. THE MEETING FOCUSED ON DEVELOPING SRI LANKA’S DIARY INDUSTRY WHICH WILL HELP REDUCE MILK POWDER IMPORTS THAT INCUR A HEAVY IMPORT BILL. ROLL VTR UP NEXT IS OUR SPECIAL SEGMENT ‘LOGISTICS HUB OF COLOMBO’ ROLL THEME 4.LOGISTICS-VTR EXPERTS SAY THAT APART FROM ACHIEVING PEACE THE MOST IMPORTANT AREA THAT SRI LANKA SHOULD FOCUS ON, IS IN DEVELOPING ITS LOGISTICS SECTOR. THEY SAY THAT IT IS ONLY BY DEVELOPING STRONG LOGISTICS TO CATER TO THE GROWING NEEDS OF THE MARKET CAN THE COUNTRY REACH ITS ECONOMIC GOALS IN THE COMING TWO DECADES. ROLL VTR EXTRO FOR AN IN-DEPTH DISCUSSION ON SRI LANKA AS A LOGISTICS HUB, DO JOIN BIZ ROUND UP AT 7 PM ON SUNDAY. WE’LL BE BACK AFTER THIS BREAK BREAK

5.BIG-VTR SRI LANKAN BRANDS AND CONSUMERS NO MORE NEED NOT FEAR THE PROSPECT OF SIFTING THROUGH ADVERTISING CLUTTER, BECAUSE A RELATIVELY NEW, BUT BIG CONTENDER IN THE FIELD IS ABOUT TO INTRODUCE A NEW MEDIUM OF ADVERTISING. BIG INTERNATIONAL, A RENOWN ADVERTISING AGENCY WHICH TOMORROW CELEBRATES ONE YEAR SINCE COMMENCING OPERATIONS IN SRI LANKA IS THE LAUNCH PAD OF THIS NEW TECHNOLOGY. ROLL VTR BREAK

6.STOX TRADING AT THE CSE WAS ON AN UPWARD TREND TODAY ACTIVITY LEVELS PICKING UP FOLLOWING A DULL WEEK. THE INDICES CLOSED ON A MIXED SENTIMENT.

WITH

A TOTAL OF FIVE CROSSINGS TOOK PLACE FOR THE DAY 0.54 MILLION SHARES OF HEMAS CHANGED HANDS AT 100 RUPEES WHILE DFCC SAW 0.8 MILLION SHARES MOVE AT 125. 0.25 MILLION SHARES OF COMMERCIAL BANK CROSSED AT 144. THE BALANCE 2 CROSSINGS WAS ON TOKYO CEMENT AS 2 BLOCKS OF 150,000 SHARES CHANGED HANDS AT 270 RUPEES. MALWATTE SAW THE HIGHEST TRANSACTION OF SHARES OF 1.31 MILLION FOR THE DAY FOLLOWED BY VALLIBEL AND BALANGODA. WHILE TURN OVER WAS TOPPED BY DFCC WITH A CONTRIBUTION OF 103.2 MILLION RUPEES AND WAS FOLLOWED BY TOKYO AND HEMAS. FOREIGN BUYING FOR THE DAY WAS RECORDED AT 106.15 MILLION RUPEES WHILE FOREIGN SALES AMOUNTED TO 20.44 MILLION. CARD 1 THE ALL SHARE PRICE INDEX CLOSED THE WEEK AT 2,560.16 AFTER GAINING 1.96 POINTS WHILE THE MILANKA CLOSED ON NEGATIVE GROUNDS DROPPING BY 7.4 POINTS TO 3,372.97 TURN OVER WAS AT 493.9 MILLION CARD 2 THE DAY’S GAINERS LIST WAS TOPPED BY ELPITIYA, KAHAWATTE, CONFIFI HOTEL, BALANGODA AND ASIAL ALLIANCE CARD 3 WHILE AUTODROME, KURUWITA TEXTILE, RADIANT GEMS, TESS AGRO AND METROPOLITAN RESOURCE HOLDINGS WERE THE DAY’S TOP LOSERS CARD 4 CEYLON HOTELS CORPORATION LIMITED MADE A 50 FOR 1 RIGHTS ISSUE. NOW LET’S JOIN DARSHI FOR A RECAP OF MARKET OPERATIONS FOR THIS WEEK THE FOREX RATES ARE UP NEXT CARD 5,CARD 6

SEGMENT DATE REPORTER SLUG

: : : :

MAIN 30/11/07 LASHINI MILK - VTR

SELLING COWS FOR BEEF HAS BECOME MORE PROFITABLE FOR SMALL SCALE DIARY PRODUCERS THAN USING THEM FOR MILK PRODUCTION, SAYS A DAIRY INDUSTRY EXPERT. THIS FACT WAS REVEALED DURING A RECENT DISCUSSION THAT US AID HELD WITH LOCAL DIARY INDUSTRY REPRESENTATIVES. THE MEETING FOCUSED ON DEVELOPING SRI LANKA’S DIARY INDUSTRY WHICH WILL HELP REDUCE MILK POWDER IMPORTS THAT INCUR A HEAVY IMPORT BILL. ROLL VTR INFO TAGS: ‘DAIRY DECISIONS’ SL spent Rs. 17 bn last year to import milk USAID keen to help uplift dairy industry 140,000 families in the East involved in the industry

VOICE OVER – LASHINI – 30/11/07 – MILK – VTR SRI LANKA IMPORTED 70,000 METRIC TONS OF MILK POWDER AT A COST OF 17 BILLION RUPEES IN 2006 AND THE FIGURE IS EXPECTED TO DOUBLE THIS YEAR OWING TO RISING GLOBAL PRICES. THE RECENT STAKEHOLDER DISCUSSIONS HELD WITH USAID EMPHASIZED ON THE IMPORTANCE OF DEVELOPING THE LOCAL DIARY INDUSTRY IN ORDER TO HELP MEET THE LOCAL DEMAND. THE DISCUSSION FOCUSED ON THE DAIRY INDUSTRY OF THE EASTERN PROVINCE WHICH ACCOUNTS FOR ABOUT 140,000 FAMILIES WHO ARE ENGAGED IN SOME COMPONENT OF LIVESTOCK FARMING AT PRESENT. EXPERTS SAY IF THE LARGE AMOUNT OF LAND AVAILABLE FOR DAIRY PRODUCTION IN THE EAST IS UTILIZED EFFECTIVELY AND FEEDING PRACTICES ARE IMPROVED, THERE IS POTENTIAL TO INCREASE THE NATIONAL MILK PRODUCTION UP TO 300 PERCENT. US AID IS LOOKING TO DIRECT ITS EFFORTS TOWARDS THIS TASK UNDER ITS CONNECTING REGIONAL ECONOMIES PROGRAM THAT WILL BE LAUNCHED NEXT YEAR. USAID SAYS IT IS READY TO ASSIST THE DEVELOPMENT OF THE DAIRY SECTOR THROUGH THE STRENGTHENING OF PRIVATE SECTOR PARTICIPATION AND INVESTMENT TO IMPROVE THE RURAL DAIRY VALUE CHAIN. ENDS.

SEGMENT:

MAIN

SEGMENT: DATE: REPORTER: SLUG:

MAIN 30 / 11 / 2007 CHAMINDA REFINERY – VTR

THE GOVERNMENT SAYS THE LONG DELAYED REFINERY EXPANSION PLAN CAN BE NOW COMMENCED, FOLLOWING THE IRANIAN GOVERNMENT’S COMMITMENT TO FINANCING THE PROJECT. MINISTER OF PETROLEUM RESOURCES DEVELOPMENT A.H.M FOUZIE SPEAKING TO REPORTERS IN COLOMBO TODAY SAID THE IRANIAN GOVERNMENT AGREED TO DO SO DURING THE RECENT PRESIDENTIAL VISIT TO THE COUNTRY, OF WHICH MINISTER FOUZIE WAS ALSO A PART. HOWEVER THE FINANCING OF THE PROJECT WILL BE DONE BASED ON THE RESULTS OF THE FEASIBILITY STUDY WHICH WOULD ALSO BE DONE BY THE GOVERNMENT OF IRAN FREE OF CHARGE.

ROLL VTR ‘REFINING CRUDE’ Cost of a new refinery nearly $700 Mn. Plans to build new refinery adjoining Sapugaskanda SUPER A.H.M. Fowzie Minister of Petroleum and Petroleum Resources Development

VOICE OVER – REFINERY – CHAMINDA – 30 / 11 9.02 We have been talking about this expansion for a longer time, but unfortunately we have not been able to do that. Now Iranian government will do a feasibility study in their own without an expense to the SL government and thereafter they will do the constriction and finance 9.30 IF THINGS GO AS PLANNED THE NEW REFINERY WILL BE BUILT ADJOINING THIS REFINERY AT SAPUGASKANDA WHICH IS THE ONLY FACILITY IN THE COUNTRY AT PRESENT. THE REFINING CAPACITY OF THIS PLANT BUILT IN THE 60’S IS AROUND 50,000 BARRELS PER DAY WHILE THE PROPOSED REFINERY IS ALSO EXPECTED TO BUILD UP TO THAT CAPACITY. ACCORDING TO COUNTRY WILL REQUIREMENT.

EXPERTS, ONCE IN OPERATION IN 2011, THE BE ABLE TO REFINE ITS TOTAL PETROLEUM

MEANWHILE MINISTER FOUZIE SAID THAT IRAN HAS ALSO GIVEN OUT A CREDIT LINE RUNNING UP TO SEVEN MONTHS TO IMPORT CRUDE OIL TO SRI LANKA. HE SAYS THE TOTAL VALUE OF THE CREDIT LINE AMOUNTS TO NEARLY 90 MILLION DOLLARS PER MONTH AND IS FREE OF INTEREST PAYMENTS. ENDS.

SEGMENT: MAIN DATE: 29TH NOV 07 REPORTER: ANOUK SLUG: BIG SRI LANKAN BRANDS AND CONSUMERS NO MORE NEED NOT FEAR THE PROSPECT OF SIFTING THROUGH ADVERTISING CLUTTER, BECAUSE A RELATIVELY NEW, BUT BIG CONTENDER IN THE FIELD IS ABOUT TO INTRODUCE A NEW MEDIUM OF ADVERTISING. BIG INTERNATIONAL, A RENOWN ADVERTISING AGENCY WHICH TOMORROW CELEBRATES ONE YEAR SINCE COMMENCING OPERATIONS IN SRI LANKA IS THE LAUNCH PAD OF THIS NEW TECHNOLOGY. ROLL VTR TAG ‘BIG PLANS!’ Hopes to expand to India & Bangladesh next year SUPERS Rohan Piyadasa Managing Director Big International Ashik Jabir Director Brand Servicing & Finance Big International

VOICE OVER/ 29TH NOV 07/ BIG/ ANOUK APPROVED BY THE BOARD OF INVESTMENT OF SRI LANKA BIG INTERNATIONAL WHICH IS PART OF THE BUSINESS IMAGE GROUP IN THE MALDIVES FIRST BEGAN OPERATIONS IN SRI LANKA ON THE 1ST OF DECEMBER 2006. ENTERING THE SRI LANKAN MARKET HAS BEEN THE FIRST STEP IN ITS EXPANSION- AND AS IT GOES, THE PAST YEAR HAS BEEN QUITE AN EXPERIENCE FOR THE COMPANY. VOICE CUT –ASHIK (11:20) ABOUT 12 MONTHS AGO WE STARTED THIS WITH ZERO CLIENTS. AND WE WERE SHOOTING IN THE DARK. I’M VERY PROUD TO SAY THAT AT THAT TIME WE GOT CLIENTS GIVING US SMALL THINGS LIKE LEAFLETS, AND I’M VERY PROUD TO SAY THAT WE HAVE MANAGED TO WIN THEIR CONFIDENCE AND THAT BILLINGS WHICH ARE LIKE 10,000 RUPEES IS CLOSE TO ABOUT 100 MILLION BILLING IN 12 MONTHS (11:53) SOME OF BIG INTERNATIONAL’S CLIENTS INCLUDE SWADESHI INDUSTRIES, CERTAIN ARPICO PRODUCTS, AND A SERIES OF SMALLTIME PLAYERS WITH MORE CLIENTS ALREADY TIPPED TO JOIN THE FOLD. SO WHY ARE BRANDS DRAWN TOWARDS A RELATIVELY NEW PLAYER IN THE LOCAL ADVERTISING SCENE? VOICE CUT- ROHAN (5:35) WE JUST DON’T DO BUYING AND PLANNING IN MEDIA. WE GO WELL BEYOND THAT. (5:46) ++ (4:58) WE HAVE SOME IDEAS IN DEVELOPING CERTAIN AREAS LIKE MEDIA. (5:21) AND INDEED, THEY HAVE ALREADY GOT THE BALL ROLLING TO MAKE THIS HAPPEN. (8:47) NEXT YEAR IS GOING TO BE ONE OF THE CRUCIAL YEARS FOR US, AND WE’RE GOING TO INTRODUCE A LOT OF NEW TECHNOLOGIES THAT YOU SEE IN OTHER DEVELOPED COUNTRIES (9:01) ++ (11:00)

JUST TO GIVE YOU A SMALL HINT, I WAS TALKING TO YOU ABOUT GOING TO SINGAPORE AND SEEING TV’S IN THE STREETS, YOU ARE GOING TO SEE THOSE HERE (11:12) HE SAYS THAT ALREADY A FOREIGN INVESTOR HAS HOPPED ON BOARD TO MAKE THEIR DREAM OF INTRODUCING TRULY INNOVATIVE BELOWTHE-LINE ADVERTISING IN SRI LANKA A REALITY. BIG INTERNATIONAL HAS ALSO PURCHASED 8 TRI-VISIONS OR THREE-DIMENSIONAL BILLBOARDS WHICH THEY SAY ARE OF HIGH QUALITY GEARED TO WITHSTAND ANY WEATHER PATTERN. THE COMPANY IS ALSO EXPLORING MOBILE MARKETING LATER ON.

THE

IDEA

OF

INVESTING

IN

NOT AN IMPOSSIBILITY, CONSIDERING THAT IT HAS BEEN A SUCCESSFUL YEAR THAT TOOK THEM BEYOND THE BREAK EVEN POINT. ENDS/

DATE: REPORTER: SLUG:

30/11/2007 SAMANTHA LOGISTICS

EXPERTS SAY THAT APART FROM ACHIEVING PEACE THE MOST IMPORTANT AREA THAT SRI LANKA SHOULD FOCUS ON, IS IN DEVELOPING ITS LOGISTICS SECTOR. THEY SAY THAT IT IS ONLY BY DEVELOPING STRONG LOGISTICS TO CATER TO THE GROWING NEEDS OF THE MARKET CAN THE COUNTRY REACH ITS ECONOMIC GOALS IN THE COMING TWO DECADES. ROLL VTR EXTRO FOR AN IN-DEPTH DISCUSSION ON SRI LANKA AS A LOGISTICS HUB, DO JOIN BIZ ROUND UP AT 7 PM ON SUNDAY. WE’LL BE BACK AFTER THIS BREAK

SUPER Niral Kadawatharatchie Chairman Sri Lanka Freight Forwarders Association ‘LOGISTICS HUB OF COLOMBO’

VOICE OVER- LOGISTICS-SAMANTHA-30/11 CHAIRMAN OF THE SRI LANKA FREIGHT FORWARDERS ASSOCIATION NIRAL KADAWATHARACCHIE WAS THE FINAL SPEAKER AT A RECENT SEMINAR HELD UNDER THE TITLE ‘THE LOGISTICS HUB OF COLOMBO’. VC-NIRAL 50:15 LOGISTICS HAS BECOME THE MOST EMERGING AND PROFESSIONAL INDUSTRY IN GLOBALLY .I WILL GIVE A ONE SIMPLE EXAMPLE IF YOU TAKE THE US, TOTAL EXPENDITURE FOR YEAR, US HAS LARGE DEFENSE BILL THEY HAVE MASSIVE AROUND IN IRAQ THEY HAVE TO SPEND THEIR MONEY. THEY HAVE A LARGE HEALTH BILL, THEY HAVE LARGE SOCIAL SECURITY BILL, YOU WOULDN’T BELIEVE THAT THE LOGISTIC BILL OF THE UNITED ESTATE IS MORE THAN THESE THREE EXPENDITURE. SEVEN HUNDRED BILLION DOLLARS LAST YEAR. THAT IS KIND OF IMPORTANT AND EMERGENCE THAT THE LOGISTICS HAS BECOME IN THE GLOBAL ECONOMY. 50:58 HE URGED SRI LANKA’S PRIVATE SECTOR TO COME FORWARD TO SUPPORT THE DEVELOPMENT OF THE COUNTRY’S LOGISTICS SECTOR AND URGED THE GOVERNMENT TO FACILITATE AN IMPROVEMENT OF EXISTING SUPPORT SERVICES PROVIDERS. 54:25 IF WE DON’T HAVE A TYPICAL LOGISTICS HUB IN SRI LANKA WE CANNOT TAKE PART IN INTERNATIONAL TRADE. NO INTERNATIONAL TRADER WILL COME TO DO THE TRADE IN COLOMBO IF WE DON’T CREATE THE PLATFORM 54:40 KADAWATHARACHCHI ALSO NOTED THE AREAS IN WHICH SRI LANKA LACKS IN COMPARISON TO OTHER COUNTRIES.

58:17 WE DON’T CREATE THAT PLATFORM OF FREE MOVEMENT OF GOODS, FREE DOCUMENTATION, PAPERLESS WORK, WE DON’T HAVE, IN SINGAPORE, DUBAI THEY HAVE IT, WHY HAVE IT BECAUSE RULERS OF THOSE COUNTRY, DECISION MAKERS THEY ARE VERY CLEAR, WHAT THEY WANT TO. 58:32 ENDS.

SEGMENT DATE REPORTER SLUG

: : : :

MAIN 30TH NOVEMBER FARVEEZA TRANSPORT - VTR

THE DEPUTY MINISTER OF TRANSPORT LASANTHA ALAGIYAWANNA AT A PRESS BRIEFING HELD YESTERDAY URGED THE PUBLIC TO BE VIGILANT AT ALL TIMES, ESPECIALLY AT RAILWAY STATIONS, BUS STANDS AND AT PUBLIC PLACES. HE MADE THIS PLEA FOLLOWING THE BOMB EXPLOSION WHICH TOOK PLACE IN NUGEGODA ON WEDNESDAY EVENING. ROLL VTR INFO TAG ‘PLEA FOR VIGILANCE’ Security beefed up at Railway stations and Bus stands SUPER: Lasantha Alagiyawanna Deputy Minister of Transport (02:20) SUPER: Lalith Gunaroowan General Manager Sri Lanka Railways (06:05)

VOICE OVER – 30/11/07 – FARVEEZA – TRANSPORT – VTR THE DEPUTY MINISTER OF TRANSPORT, SPEAKING AT THE MEDIA BRIEFING NOTED THAT INCREASED SECURITY MEASURES ARE NOW IN PLACE WITHIN COLOMBO AND ITS SUBURBS IN VIEW OF THE RECENT EXPLOSIONS. THESE INCIDENTS HAPPEN IN BUS STANDS AND RAILWAY STATIONS. SO WE ASK THE PUBLIC TO BE AWARE OF THESE INCIDENTS. WE HAVE TAKEN FURTHER STEPS. WE HAVE APPOINTED COMMITTEE MEMBERS TO SETUP A BETTER SECURITY CONDITIONS IN RAILWAY STATIONS AND BUSES. (03:55) MEANWHILE THE GENERAL MANAGER OF SRI LANKA RAILWAYS LALITH GUNAROOWAN ALSO ECHOED THESE SENTIMENTS. PER DAY NEARLY 150,000 PEOPLE TRAVEL BY TRAIN TO COLOMBO TO RAILWAY STATIONS AT MARADANA, SLAVE ISLAND, COLPETTY, BAMBALAPITIYA AND DEMATOGODA AND THE SAME CROWD IS TAKEN BACK AGAIN. ++ PEOPLE HAVE TO PASS SO MANY RAILWAY STATIONS WHILE TRAVELING TO THEIR PLACES AND ALSO THEY ARE STOPPED IN THESE STATIONS, SO IT’S IMPOSSIBLE TO CHECK EVERYONE WHILE THEY ARE INSIDE THE TRAIN. SO THE PUBLIC SHOULD COOPERATE WITH THE SECURITIES. (07:14) ENDS/

STOX TRADING AT THE CSE WAS ON AN UPWARD TREND TODAY ACTIVITY LEVELS PICKING UP FOLLOWING A DULL WEEK. THE INDICES CLOSED ON A MIXED SENTIMENT.

WITH

A TOTAL OF FIVE CROSSINGS TOOK PLACE FOR THE DAY 0.54 MILLION SHARES OF HEMAS CHANGED HANDS AT 100 RUPEES WHILE DFCC SAW 0.8 MILLION SHARES MOVE AT 125. 0.25 MILLION SHARES OF COMMERCIAL BANK CROSSED AT 144. THE BALANCE 2 CROSSINGS WAS ON TOKYO CEMENT AS 2 BLOCKS OF 150,000 SHARES CHANGED HANDS AT 270 RUPEES. MALWATTE SAW THE HIGHEST TRANSACTION OF SHARES OF 1.31 MILLION FOR THE DAY FOLLOWED BY VALLIBEL AND BALANGODA. WHILE TURN OVER WAS TOPPED BY DFCC WITH A CONTRIBUTION OF 103.2 MILLION RUPEES AND WAS FOLLOWED BY TOKYO AND HEMAS. FOREIGN BUYING FOR THE WAS RECORDED AT 106.15 MILLION RUPEES WHILE FOREIGN SALES AMOUNTED TO 20.44 MILLION. CARD 1 THE ALL SHARE PRICE INDEX CLOSED THE WEEK AT 2,560.16 AFTER GAINING 1.96 POINTS WHILE THE MILANKA CLOSED ON NEGATIVE GROUNDS DROPPING BY 7.4 POINTS TO 3,372.97 TURN OVER WAS AT 493.9 MILLION CARD 2 THE DAY’S GAINERS LIST WAS TOPPED BY ELPITIYA, KAHAWATTE, CONFIFI HOTEL, BALANGODA AND ASIAL ALLIANCE CARD 3 WHILE AUTODROME, KURUWITA TEXTILE, RADIANT GEMS, TESS AGRO AND METROPOLITAN RESOURCE HOLDINGS WERE THE DAY’S TOP LOSERS CARD 4 CEYLON HOTELS CORPORATION LIMITED MADE A 50 FOR 1 RIGHTS ISSUE. NOW IT’S A LOOK AT THE FOREX RATES CARD 5 CARD 6

SEGMENT DATE REPORTER SLUG

: : : :

MAIN 30/11/07 LASHINI DEBT – VTR

THE SRI LANKAN GOVERNMENT IS NOW CONCENTRATING ON WORKING OUT A LEAST COST DEBT MANAGEMENT STRATEGY THAT WILL HELP CREATE MORE FISCAL SPACE. FINANCE SECRETARY DR. P. B. JAYASUNDERA SAID THIS IS A VITAL STEP THAT NEEDS TO BE ACHIEVED IF THE COUNTRY IS TO TELL A MORE SUCCESSFUL ECONOMIC STORY. HE WAS SPEAKING AT A FORUM ORGANIZED BY CITIBANK. SUPER: Dr. P. B. Jayasundara Finance Secretary Info tags: ‘DEBT RE-ENGINEERING’

VOICE OVER – LASHINI – 30/11/09 – DEBT – VTR JAYASUNDERA SAID EVEN THOUGH SRI LANKA HAS MUSTERED FUNDING SUPPORT FROM DONORS AT CONCESSIONARY RATES OVER SEVERAL DECADES IT HAS NOT HELPED TO RESOLVE THE MUCH NEEDED ISSUE OF SOUND INFRASTRUCTURE. 30.02 WE HAVE, ALMOST FROM 78, THIS COUNTRY HAS MOBILIZED CONFESSIONAL RATE 40 YEAR DEBT, INTEREST RATE IS BELOW 1 PERCENT, GRACE PERIOD IS 10 YEARS, SO WAT MORE WE CAN RAISED, WHAT HAVE WE ACHIEVED, ONLY HIGHER DEBT TO GDP RATIO. ONLY HIGHER DEBT TO GDP RATIO, BCOS THE PORTFOLIO ITSELF IS NOT FOR THINGS THAT WE SHOULD RAISE DEBTS. 30.40 HE SAID THEREFORE THE GOVERNMENT IS LOOKING TO REENGINEER ITS DEBT STRATEGY BY LOOKING AT THE CURRENCY COMPOSITION OF THE COUNTRIES DEBT, ITS MATURITY STRUCTURE AND DOMESTIC AND FOREIGN BALANCE. 32.00 THAT’S WHY WE ARE SPEAKING WITH ALL THE GLOBAL BANKS TO LOOK AT OUR DEBT RE-ENGINEERING ASPECTS, AND WE THINK THAT EVENTHOUGH THE DOMESTIC DEBT PORTFOLIO NEED TO BE REENGINEERED, BECAUSE THERE IS NO POINT PAYING 17 PERCENT INTEREST WHEN CHEAP FUNDS ARE AVAIALBLE TO A COUNTRY, WE ARE IN JOURNEY NOT TO RAISED DEBT, IN FACT DEBT TO GDP RATION WHICH WAS 105 PERCENT IN 2004 HAS BROUGHT TO BELOW 90 PERCENT AND BELOW 85 PERCENT IN THE NEXT TWO YEARS.32.50 33.32 ENDS.

46:06 IN TERMS OF OUR ESTIMATES NOW MAYBE 2, 3 HUNDRED DOLLARS ROLLING OVER WILL BE REQUIRED BECAUSE GOING INTO BOND MARKET IS AS I SAID IN THE VERY BEGINNING IS NOT NECESSARILY TO LOOK AT EXACT ONE TO ONE RUPEE MATCHING 46:28 I TOLD YOU ALL AT THE VERY BEGINNING IT IS THE REENGINEERING OF OUR DEBT PORTFOLIO. 46:35 EVEN PRIVATE SECTOR MAY GO TO REFINANCE THEIR DEBT REPLACE THEIR DEBT. 46:39 BECAUSE IF THE CURRENCY IS IN TERMS OF TODAY’S MOVEMENTS CERTAIN CURRENCIES MAY NOT BE FAVORABLE TO KEEP IN OUR DEBT 46:49 WE MAY NEED TO CHANGE IN CERTAIN CASES WE MAY WANT TO REPLACE FIVE YEARS WITH SEVEN YEARS OR 10 YEARS 44:58 CERTAIN CASES WE WANT TO CHANGE THE DOMESTIC FOREIGN PORTFOLIO 47:02 SHOULD GOVERNMENT GO THIS MUCH DOMESTIC DEBT KIN OF THING. SO IN TERMS OF THAT KIND OF APPROACH 2, 3 HUNDRED MILLION DOLLARS IN ANY CASE WE WILL MOVE 42:16 BUT PARAMETERS SUCH AS DEBT NEUTRALITY, DEBT TO GDP MOVING DOWN AND ALSO AS I TOLD YOU OUR OBJECTIVE IS TO CREATE SOME SPACE IN THE BUDGET ITSELF THAT IS WHILE RAISING REVENUE OUR RECURRENT EXPENDITURE IF WE CAN SAVE A PERCENT IN INTEREST EXPENDITURE AND THAT HAS TO BE CONSIDERED 47:40 BECAUSE IF I CAN REPLACE I WILL NOT GO INTO SOME OF THE CURRENCIES BECAUSE OF THE POLITICS OF THE CURRENCIES 47:47 BUT CERTAIN CURRENCIES, REPLACEMENT OF CERTAIN DENOMINATED CURRENCIES ITSELF WILL BRING SUBSTANTIAL SAVING TO US. CERTAIN DEBT WE SHOULD PAY OFF IMMEDIATELY AND WE ARE LOOKING SUCH INTEREST RATE STRUCTURE THEN IT IS MORE OF A MANAGEMENT STRATEGY AND PRIVATE SECTOR ITSELF WILL GO BECAUSE WE ALSO KNOW PRIVATE SECTOR GO TO THE MARKET AND TELL THE STORY THEMSELVES. APPROX.48:30

49:03 AS FAR AS WE ARE CONCERNED WE THINK WE WOULD BE ABLE TO RAISE THE NEXT BOND ISSUE AT A MUCH LOWER RATE THAN THIS

49:12 AND THE EXCHANGE RATE STABILITY THAT WE BROUGHT I IM MEAN IMMEDIATE VOLATILITY ABRASIONS CANNOT BE USED TO EXPLAIN A MORE MEDIUM TERM DEBT MARKET 49:46 SO WHAT WE THINK IS MEDIUM TERM WILL BE FAVORABLE AND THE SEVEN MONT CREDIT FACILITY WHICH WE HAVE TAKEN FOR THE PAYMENT OF CRUDE PROCUREMENTS WILL ALSO BE CONDUCIVE TO STABILIZE MANY FUNDAMENTAL FACTORS AND THE MARKET PARTICIPANTS WHO ARE TALKING TO US ARE BASICALLY TALKING MUCH MORE RESTRUCTURING THE DEBT AND I DON NOT THINK THAT WE WILL GO BEYOND THE LEVELS THAT YOU ARE REFERRING TO 49:59