TOP STORYFast-tracked DVP likely after NSB-TFC fiasco
SEC, CSE and CSBA hold positive joint meeting
The stock market is likely to step up the migration to Delivery Versus Payment (DVP) system in a more robust risk management regime following the fiasco triggered by the default of National Savings Bank (NSB).
Daily FT learns the DVP as well as a more robust risk management system came up for discussion at a joint meeting between Securities and Exchange Commission (SEC), Colombo Stock Exchange (CSE) and Colombo Stock Brokers Association (CSBA) officials on Friday.
Hayleys has a hearty FY12
- Achieves best-ever results in 134-year history
- Pre-tax profit at Rs. Rs 4.8 billion, post-tax figure Rs. 3.8 b
- Profit attributable to equity holders of the company up 269% to Rs. 2.5b
- Turnover up 15% to Rs 62.5 b
A challenging operating environment notwithstanding, Hayleys Group has posted its best annual earnings in the history of the 134-year-old conglomerate, tripling net profit in FY 2011-12.
Divided tea industry brews export rebound in March
The industry may be currently involved in infighting, but tea exports have made a welcome rebound in March after suffering sharp declines in the previous two months of the New Year.
Overall exports grew by Rs. 1.1 billion or 7.4% to Rs. 16 billion in March aided by better performance by tea shipments in bulk and in packets though tea in bags continue to struggle.
Planters Association says tea imports spell doom!
The Planters’ Association of Ceylon (PA) yesterday reacting strongly to the statement made by the Tea Exporters Association (TEA), at which they have stated, inter alia, that the import of orthodox black tea would not impact adversely on Pure Ceylon Tea as a premium brand. The PA is in total disagreement.
Hub is no hoodoo, says TEA
- Exporters deny lobbying to import cheap tea
- Insist more liberal regime for select import of orthodox varieties key to boost blending for exports and establish Colombo as a tea hub
- Stress Pure Ceylon Tea will remain supreme and unaffected
By Uditha Jayasinghe
Stirring a fresh storm in the industry, the Tea Exporters Association (TEA) yesterday dismissed claims of substandard imports flooding Sri Lanka under a much-needed hub and liberalised concept and insisted they were equally committed to protecting Pure Ceylon origin.
Chairman Niraj de Mel flanked by members told journalists that TEA “categorically denies” statements made by Dilmah that liberalising tea imports would be negative for the overall industry.
Shareholders furious over lack of disclosure, sale plan of MBSL’s savings subsidiary
Minority shareholders and analysts are fuming over MBSL’s failure of proper disclosure, including providing no justification for the sale of its controlling stake in its savings bank subsidiary.
MBSL selling savings bank for a song!
- Planned divestiture of subsidiary – the sole private savings bank in the country – not advertised
- Deal with in-out-and-in Navara Capital under fire as Rs. 562 m strike price falls below Board recommendation
- Analysts label deal price as “cheap” when CB is unlikely to be generous in issuing new Specialised Bank licences in the future
- Taprobane Securities had made a higher offer but backed out later on
- Analysts opine ‘prized’ entity can be retained with MBSL or its parent BOC infusing Rs. 500 m capital given turnaround and better prospects since takeover from Ceylinco crisis
Hot on the heels of NSB facing flack over the TFC deal, pioneering merchant bank MBSL is now under fire over its move to sell its savings bank subsidiary and at a low price.
CB banks on policy changes
The Central Bank expects a deceleration in both monetary aggregates and imports during the course of this year, but insisted that policy measures implemented thus far are sufficient to moderate the expansion of both credit and the trade deficit resulting in rates remaining unchanged, the monetary policy review said.
NSB-TFC deal’s stench spreads!
- NSB takes one step forward and two back and Govt’s cure appears worse than the disease
- Unprecedented reversal of trade in the offing with sellers agreeable to buy back
- Analysts opine Bourse in Catch 22 situation as stakeholders mixed over the approach to the cancellation and authorities not holding those responsible accountable so far
Confirming worst fears as exclusively speculated by the Daily FT on Tuesday in an article titled ‘Reverse and be doomed,’ the ill-fated NSB-TFC deal is now awaiting cancellation following the fallout as well as backtracking by involved parties amidst pressure from the Finance Ministry and criticism from the Opposition and market stakeholders.
Govt. pledges to protect ‘Pure Ceylon Tea’
The Government has made its strongest statement yet to prevent local tea exports from being contaminated by imported low quality teas to protect its highest foreign exchange earning crop, a top official said yesterday.
• 
