Sri Lanka President orders the best team to be selected for 2011 Cricket World Cup

By Santhush Fernando in Colombo

Colombo, 05 January, (Asiantribune.com):

President Mahinda Rajapaksa discussing arrangements for the upcoming 2011 Cricket World Cup with Minister of Sports Mahindananda Aluthgamage, Sri Lanka Cricket Chairman D. S. De Silva and other officials at Temple Trees. (Pix By : Sudath Silva)

Sri Lanka President Mahinda Rajapaksa on Tuesday (January 4, 2011) directed Sri Lankan Cricket (SLC) to select the best players for the upcoming 2011 Cricket Word Cup.


At a meeting chaired by President Rajapaksa held at Temple Trees to discuss the arrangements of World Cup held this year, SLC officials were directed not to select players based on whims and fancies of various decision-makers but to appoint the squad out of the best fifteen players. Current standards of the playgrounds and matches to be played were also discussed.


It had been decided that the 15-member squad would be selected after the premier league matches are concluded. Minister of Sports Mahindananda Aluthgamage, SLC Chairman D. S. De Silva and several other officials participated.


Newly constructed international cricket stadium at Sooriyawewa in Hambanthota District, the refurbished Pallekele (Kandy) and R Premadasa (Colombo) stadiums are the three venues in the island for the 2011 World Cup. Sri Lanka, along with India will be hosting the international event.


Last year, the International Cricket Council (ICC) visited the venues in Sri Lanka that are slated to hold the matches of the World Cup 2011 tournament and expressed their satisfaction on the progress.

http://www.asiantribune.com/news/2011/01/05/sri-lanka-president-orders-best-team-be-selected-2011-cricket-world-cup

Sri Lanka is world’s fastest rising market 2010 – Guardian of United Kingdom

By Santhush Fernando

 

Colombo, 06 January, (Asiantribune.com):

 

Sri Lanka had the world's fastest rising market as its post-war economy boomed, United Kingdom’s leading newspaper- The Guardian said in a recent report titled ‘the best and worst investments of 2010’.
‘In 2009, the little-known Colombo Stock Exchange rose a remarkable 128% after the Sri Lankan government formally declared an end to the 25-year civil war’ the Guardian said.

This year, the market has soared again, rising by 101% (in sterling terms) in the year to 20 December, according to figures compiled for Guardian Money by Vanguard, which operates a wide range of index funds. Argentina, once a by-word for economic default, is also back in fashion among investors. The Buenos Aires Bourse advanced 82%, closely followed by the Thai exchange (up 70%) and the Ukraine (up 68%), and no, we didn't know there was a stock market there, either”.


The Sri Lanka stock market is reported to be one of the most modern exchanges in South Asia, with a fully automated trading platform. The value of the companies traded on the market is now more than $20bn (£13bn), and 2011 will see companies such as SriLankan Airlines listing its shares.

The island's economy is expected to grow 8% in 2010 and 9% in 2011 – rates usually seen in China. Tourism is booming, with 750,000 visitors anticipated in 2011, while tea exporters are also enjoying strong gains.

Bottom end


At the bottom end of the world indices were Ireland and Greece. The FTSE Ireland Banks index fell 67% in 2010, while the FTSE Greece Financials index was down 57%. Ironically, the country which did default, Argentina (albeit back in 2002), enjoyed huge gains in 2010, led by its banking sector. BBVA Banco Francés rose more than 90%, while Grupo Financiero Galicia leapt by an extraordinary 185%, Guardian further said.

http://www.asiantribune.com/news/2011/01/05/sri-lanka-world%E2%80%99s-fastest-rising-market-2010-%E2%80%93-guardian-united-kingdom

Sri Lanka President says challenges of development much greater than challenge of defeating terrorism

Tue, 2011-01-04

By Santhus Fernando in Colombo

Sri Lanka President Mahinda Rajapaksa addressing a gathering of public servants today (January 3, 2011) said that the challenges of developing the economy was much greater than the challenges faced when defeating terrorism. He said so addressing the staff of the Presidential Secretariat marking the first working day for Sri Lanka’s public sector today at old Parliamentary Complex in front of the Galle Face Green.
President Rajapaksa further stated that his staff was fortunate to be working at the Secretariat and expressed his hope that they will set an example for the rest of the public sector. He adding that the staff of the Presidential Secretariat was well prepared to overcome these challenges.
He advised the staff and the entire public sector at large to complete the day’s work without any delay and to be committed to serve the people, adding that they need to ask themselves whether they carried out their duties worthy of their salary.

Secretary to the President Lalith Weeratunga speaking on the occasion said that the Presidential Secretariat should live up to its position in the public sector and be efficient. He pointed out that out of the 365 days, 122 are holidays with an additional 45 days.
Thus, he advised his staff to make the best of the remaining working days to provide an excellent service to the public.
On the occasion, Weeratunge led his staff in taking the pledge of the public service for 2011 themed, ‘Commit towards serving the public with ‘Metta’ (Loving Kindness) through sheer dedication and utmost genuineness. War heroes who lost their lives were also remembered.
Work at the Presidential Secretariat commenced for the New Year today led by President Mahinda Rajapaksa, while the Venerable Maha Sangha along with clergy of other religions invoked blessings on the President, public servants and the whole country.
Economic Development Minister Basil Rajapaksa, Secretary to the President Lalith Weeratunga and the staff of the Presidential Secretariat also participated. Picture shows Lalith Weeratunga presenting 'kiribath' (milk rice) to the President.

Sri Lanka President unveils 2011 National Economic Programme

By Santhush Fernando in Colombo

Colombo, 06 January, (Asiantribune.com):

 Sri Lanka President unveiling the National Economic Programme for the year said that during 2011, country’s economy would realize people’s expectations of development launched during the humanitarian operations.


President Rajapaksa in his capacity as the Finance Minister made these remarks addressing the staff of the Finance Ministry for the New Year on Tuesday (January 4, 2011) . Launching the National Economic Programme for this year President Rajapaksa said that the Finance Ministry has a decisive task in the journey towards the development. He added that development programmes already implemented by the government, has earned many commendations from the international community.

Treasury Secretary Dr. P.B. Jayasundara said that economic victories of 2010 surpassed the desired goals and expressed confidence that the country would achieve double digit economic growth soon.

Senior Minister for International Monetary Cooperation Dr.Sarath Amunugama, Deputy Minister Geetanjana Gunawardena, and the staff of the Finance Ministry were also present.

Meanwhile country’s banking and finance watchdog- the Central Bank of Sri Lanka (CBSL) unveiling its ‘Roadmap: Economic and Financial Sector Policies for 2011 and Beyond’, on Tuesday announced that the country in 2010 accomplished rapid decline of poverty levels, low and stable inflation, stable exchange rates, Middle-income Emerging Market Country status among other achievements.

CBSL said that economy maintained historically high foreign reserves levels amounting over US $ 6.6 Billion by the end of 2010. Sri Lanka showed strong growth momentum last year as peace dividend was clearly observed with impressive performance in all sectors and more confidence shown by the business sector, it added.

http://www.asiantribune.com/news/2011/01/05/sri-lanka-president-unveils-2011-national-economic-programme

Sri Lanka’s state-run utilities to undergo peoplisation 

http://www.asiantribune.com/news/2010/10/10/sri-lanka%E2%80%99s-state-run-utilities-undergo-peoplisation

By Santhush Fernando in Colombo 

Sri Lankan government is considering Peoplisation- issuing stakes of public utilities- Ceylon Petroleum Corporation (CPC) and Ceylon Electricity Board (CEB), following the probable listing of Shell Gas Lanka on the Colombo Stock Exchange (CSE).

The government, in a bid to transform public utilities, which are a great burden to the Treasury and the public at large, into viable and productive ventures, is considering the possibilities of listing the CEB and CPC on the share market, which had been advocated for a long time. 

This week, Minister Keheliya Rambukwella said that the 51 percent stake of Shell Gas Lanka (Pvt) Ltd., the local Liquid Petroleum Gas (LPG) retail unit, and the 100 percent stake of its subsidiary -Shell Lanka Terminal Ltd., held by Royal Dutch Shell (RDS) of Netherlands, would be bought by the government at cost of US $ 63 million (nearly Rs. 6,993 million). 

Minister Rambukwella added that once government has the majority stake it will infuse private sector participation by selling a 49 percent stake to the public at an Initial Public Offering. 

Peoplisation

It is much commendable that the government had decided to broad-base the ownership of public ventures through listing a process that had been earlier referred to as ‘peoplisation’, which is of much benefit to the public, in comparison to nationalisation of the 1950s and 1960s and to privatisation of the 1980s and 1990s.

In its Annual Report for 2009, Central Bank of Sri Lanka (CBSL) advocated move of quoting minority stakes of CEB and CPC to public and pointed out many arguments for doing so. 

CEB and CPC crowding out private sector

“Continuing weak financial position of the CEB exerts pressure on macroeconomic management of the country. The persistently high outstanding liability of the CEB to the CPC has made the CPC to borrow substantially from the banking system thereby crowding out lending to the private sector while impacting on market interest rates. This situation highlights the importance of addressing financial issues of the CEB urgently,” said the Annual Report. 

“It is vital that the power sector is transformed into a sound and a financially viable sector in the economy. To improve the balance sheet, the CEB can introduce distinctive profit centers for key areas of operations such as hydropower, thermal power, transmission, distribution etc. as already have been identified. The profit centre concept will help to improve productivity and achieve maximum efficiency, cost saving and thereby improve the profitability of the CEB. With the improvement of the balance sheet of the CEB and to enhance the accountability and transparency of its operations the authorities may consider listing the CEB in the Colombo Stock Exchange to broad base its ownership and provide the general public the opportunity to hold a minority stake of its share capital,” 

“At the same time, CEB’s financial management system needs to be strengthened with an improved financial management system”

Broad-basing ownership of public enterprises

“The financial position of the CPC registered a marginal improvement in 2009. The CPC reported an operational loss of Rs. 12.3 billion in 2009 compared to that of Rs. 14.7 billion in 2008. The provision of furnace oil at a highly subsidized rate to the CEB and non-revision of retail prices to reflect the cost when prices were rising in the international market during the second half of the year were the main reasons for operational losses of the CPC in 2009. The outstanding bills receivables amounting to Rs. 64 billion by several institutions, particularly a sum of Rs. 52 billion from the CEB, placed a heavy burden on the CPC’s financial situation.”

“Several innovative strategies would need to be implemented to make the petroleum sector a dynamic and viable sector in the economy. A realistic pricing formula needs to be developed to price petroleum products in the local market and the prices should be adjusted at reasonable intervals based on movements in the international oil prices. Profit centre concept covering various key activities of the CPC, such as refinery, agro chemicals, aviation fuel supply may be implemented to improve the financial viability of the CPC. With a view to improving the accountability and transparency of operations, these business units could be diversified, through a possible offering of certain minority stakes of shares to the general public, in order to broad base the ownership through a listing in the Colombo Stock Exchange.”

Shell Gas Lanka is engaged in importing, storing, filling, marketing and selling LPG in Sri Lanka, since 1995, when the then Chandrika Bandaranaike Kumaratunga administration, sold 51 percent of the then Colombo Gas Company to Shell for US $ 37 million.

Privatisation Vs. Peoplisation

The Shell Gas Lanka privatization agreement is a clear case where privatization had not served the interests of the country and its public. It was criticized as Shell was offered exclusive rights for a limited period of five years from 1995 to 2000. However SGLL says that this monopoly enabled it "to develop the LPG market in Sri Lanka whilst requiring Shell to make further capital investments in order to build an LPG import and storage terminal".

It is speculated that minority stake listing of more loss making state entities like SriLankan Airlines and even highly profitable National Savings Bank, Peoples Bank is on the cards.

Nationalisations and acquisitions in Sri Lanka

• 1956- Trincomalee harbour, which was formally a British Naval Base, was taken over by the Sri Lanka Freedom Party Government led by Prime Minister S W R D Bandaranaike, to be developed as a Commercial Port.

• 1957, Bandaranaike removed all the British Military airfields from Ceylon (Sri Lanka), the Katunayake airfield so taken over was later re-named Bandaranaike International Airport.

• 1958 The Government nationalized bus transport (creating the Ceylon Transport Board). The Colombo Port was also nationalized the same year.

• 1961- The local subsidiaries of the foreign owned petroleum companies- Caltex, Esso and Shell had formed a cartel, and in order to break, they were nationalized. The Insurance companies and the Bank of Ceylon were also nationalized in the same year.

• 1971 Graphite mines nationalized.

• 1972 Locally owned Tea and Rubber plantations were nationalized under the Land Reform law.

• 1975 Sterling plantation companies (owned by British plantation companies) were nationalized.

• 2009 Seylan Bank taken over to prevent its collapse. Waters Edge, Sri Lanka Insurance Corporation (SLIC) and Lanka Marine Services were taken over by the government following Supreme Court judgements.

• 2010 government announced that it had finalized talks for the re-purchase of the remaining 51 percent stake of Shell Gas Lanka (Pvt) Ltd.- held by Royal Dutch Shell of Europe.

- Asian Tribune -

 

Sri Lanka’s first semiconductor plant deal to be sealed soon

By Santhush Fernando in Colombo

Sri Lanka’s first semiconductor manufacturing industry project to exploit a super-quality vein quartz deposit in Mahagama, Moneragala, is to be concluded in the very near future.

It is believed that Toyota Japan, which had submitted the proposal for a total investment of Rs.18bn (US$ 160) will secure this strategic project- which is slated to become South Asia’s first semi-conductor fabrication plant.

“The deal will be finalized within the next few weeks. A fully-fledged semiconductor fabrication plant would undoubtedly accelerate Sri Lanka’s growth

Ministry of Environment and Natural Resources called for Request for Proposals (RFPs) on December 9, 2009, "from reputed manufacturers, as well as those having experience in mining and processing of Vein Quartz (Silica) to set up manufacturing plant(s) for value added high-tech products such as fused silica, poly-silicon for semiconductors, solar cells and micro chips". The deadline ended last January 25.

“Earlier, Mahaweli Authority posed a problem saying that the land belonged to it. But we managed to resolve by having one of its members on board the panel,” outgoing Secretary to the Environment Ministry, M.A.R.D. Jayathilake earlier said.

Asked as to why there was no ‘opening’ of proposals in the presence of the bidders, he said that since this was not a formal call for tenders or Expressions of Interest (EoI), the process was ‘not governed by government’s tender procedures and guidelines’. He added that he could not comment on the number of proposals received, off hand.

“They were just proposals and so there are no financial commitments indicated or any deadlines involved as such. However, there’s no secrecy and we are fully transparent.”

Jayathileke added that although there had been a previous cabinet memorandum to develop the quartz deposit, only one party had responded then, and furthermore there was no clear cabinet decision reached.

“A cabinet paper was submitted over six years ago. However, when Minister Champika Ranawaka was appointed as Minister of Environment, he wanted to go for fresh proposals as the requirements had changed,” he said.

Sri Lanka’s mining industry watchdog- Geological Survey and Mines Bureau had previously called for proposals by its advertisement dated November 20, 2008 but the process was later halted.

When inquired on the potential Sri Lanka would have in the semiconductor industry, an expert said on grounds of anonymity that, if the country was to become a commercial and knowledge hub, the government should opt for a high-yielding silicon fab project plan.

“Under the normal extraction and disintegration process only a powder can be obtained between the range of 15 and 18% of the raw vein quartz input whereas for higher returns we should target the manufacture of micro-powder which has a return of over 25% of the raw material,” he said.

It is learnt that Toyota Japan’s proposal anticipates achieving value addition levels of up to 1,700% and purity levels of 99.99999% essential for the manufacture of high-quality semi conductors.

Although a certain interested party had requested Toyota Japan to consider two other silica mines, one in the Matale District and another in the Ratnapura District, Toyota has reportedly turned down the alternate sites due to their small magnitude of less than half an acre, and had ruled out that the two sites were feasible. It is learnt that the party in question had also submitted a proposal with a mere Rs.200 as the total investment.

The Mahagama Vein Quartz deposit is located east of Embilipitiya and in close proximity to the Burusita Weva in the Udawalawe area within the Moneragala District and is about 270km from Colombo, about 75km from Hambantota and about 153km from the Port of Galle.

At present, only one company based in Kandy claims to be ‘the sole legitimate quartz processing industry in Sri Lanka’ with ‘the industrial infrastructure to practice a systematic and professionally managed operation.’ The company purports to export nearly 6,000 tonnes of processed quartz to Japan, South Korea, Singapore and other markets. Sri Lanka is recognised as a rich source of quartz and the company estimates the country to contain over 20 million tonnes of quartz deposits.

“It is shame that we are exporting very valuable quarts at a meager sum of Rs. 3,600 (~US $ 32) a ton whereas one kilo gram of the purified product is worth nearly US $ 50,000,” an expert said.

Despite the global financial crisis, the semiconductor industry grew from US$ 249 bn in 2008 to US$ 260 bn by 2009 and is dominated by USA, South Korea, Japan and the European Union.

- Asian Tribune -

http://www.asiantribune.com/news/2010/09/23/sri-lanka%E2%80%99s-first-semiconductor-plant-deal-be-sealed-soon

Sri Lanka to strike an LNG deal with Qatar

President Mahinda Rajapaksa meets Sheikh Hamad bin Khalifa Al-Thani Emir of the State of Qatar

By Santhush Fernando in Colombo

Colombo, 22 September

President Mahinda Rajapaksa during his meeting with Head of State of Qatar Kalifa Altani, has discussed the possibility of commencing a Liquefied Natural Gas (LNG) power project in Sri Lanka, in a bid to make the island nation an energy hub.

The head of state of Qatar has agreed to extend his fullest support to commence an LNG project of Qatar in Sri Lanka a press statement issued today (September 21) reported.

“The government of the state of Qatar has expressed fullest support to the development programme carried out by the President Mahinda Rajapakse following dawn of peace in the country,” said the statement.

“Emir of Qatar Kalifa Altani expressed his appreciation to President Rajapakse, who is currently in New York city to attend the 65th general session of the United Nations. The meeting between the two head of states took place at dawn today (September 21). The Emir extended his congratulations to the President for ending long standing terrorism in Sir Lanka and added that the President has set an example to the entire world. The head of state of Qatar has agreed to extend fullest support to commence L.N.G. Gas project of Qatar in Sri Lanka,”

Sheikh Hamad bin Khalifa Al Thani led the development of Qatar's oil and natural gas resources.

LNG is natural gas (predominantly methane – CH4) that has been converted into liquid form for ease of storage and transport, as it takes up only about 1/600th the volume of natural gas in its gaseous state. The most difficult and costliest operation in an LNG process is the liquidation process before storage or transportation and re-gasification at the end-point.

Qatar- the best country

Speaking to the Asian Tribune, Secretary to the Ministry of Power and Energy, M M C Ferdinando said that an Inter-ministerial Committee on Energy had been discussing the viability of LNG, and agreed that Qatar was the best country to partner when it came to LNG.

“I am not aware of this matter (President Rajapaksa’s meeting with Emir of Qatar). However there was a proposal that Sri Lanka must explore the viability of LNG and it was pointed out that Qatar was the best country when it came to LNG. Two months back a group (of officials) was entrusted to study its potential and report back. I assume that President Rajapaksa discussed this matter in that context,” Ferdinando said.

High-level Committee on LNG

Earlier Asian Tribune on September 4, 2010, reported exclusively that the Sri Lankan government in a bid to exploit eco-friendly fuels and to ensure energy security set up a high-level Committee on LNG.

“The committee is represented by officials of Treasury, Ministries of Power and Energy and Petroleum Resources and Petroleum Resources Development, Ceylon Electricity Board (CEB), Ceylon Petroleum Corporation (CPC), and Westcoast Power (Pvt) Ltd, who were entrusted with the task of exploring possibilities of using LNG and report back,” a high-ranking Petroleum Resources and Petroleum Resources Development Ministry official told the Asian Tribune.

He added that the government had identified the potential of LNG and understood that it was very beneficial in the long term. The LNG Committee is to conduct a presentation on its findings to the government in the very near future.

LNG highly beneficial

However in another exclusive story that appeared on Asian Tribune on September 15, a local agent of a UAE-based investor consortium contemplating to start an LNG project in Sri Lanka, was quoted to have stated that LNG would “be highly beneficial to an emerging nation like Sri Lanka, which anticipates in becoming a mega global hub in energy”

“LNG is one of the cleanest, safest, and most useful of all energy sources. If you take United Kingdom they are using LNG in a major way both for domestic as well as industrial purposes. We have been studying about the scope in Sri Lanka for the last four to five years and were waiting for just the right time,” said the 25-year old Sri Lankan agent of the consortium, who had been right throughout educated in United Kingdom but has now returned to his motherland to serve her.

“We have already conducted the pre-feasibility study and the results are very positive. From hotels to homes, from garment factories to power plants, lot of businesses will benefit. When you use LNG you don’t have to convert it to electricity but use it directly… for example for cooking and air conditioning,” he said.

Qatar- World’s largest LNG producer

Meanwhile gulf news reports stated that Qatar is set to achieve a milestone of 77mn tonnes annual liquefied natural gas production capacity and take a vantage position in the global energy stage as the world’s largest LNG producer and transhipper.

"With the imminent completion of two super trains (7.8mn tonnes capacity each) at Qatargas, Qatar will have an installed LNG capacity of 77mn tonnes per year (tpy).

Qatar’s two LNG producers – Qatargas and RasGas – currently operate liquefied natural gas facilities with a combined production capacity in excess of 55mn tonnes per year (tpy). At the peak of production, some 14 LNG trains will be in operation; seven each at Qatargas and RasGas,"

"The liquefied natural gas sector has become a key driver of the national economy. According to QNB Capital, the oil and gas sector is expected to account for QR145.5bn of Qatar’s total GDP of QR291.1bn in 2010. Of this, the share of the gas sector is expected to be QR81.3bn compared with QR64.2bn from the oil sector."

- Asian Tribune -