Foreign Flow (US$m)
Market Indicators as at
18 September 2020
18 September 2020
Cabinet nod to table 4 gazettes to restrict imports (Daily FT)
The Cabinet has given approval to table four gazette notifications under the Imports and Export (Control) Act to give effect to restrictions on several imports. These include suspending imports of non-essential items that can be grown or produced locally, commercial goods and motor vehicles while granting permission to import selected goods on loan facility provided by suppliers or on foreign exchange free basis and granting permission to import selected goods required for local industries, agriculture, export processing and local consumption.
Budget 2021 to provide immediate benefits to public (Daily FT)
The Cabinet was informed that the Appropriation Bill for 2021E is scheduled to be tabled in Parliament during the second week of October 2020. Priority is to be given to projects which provide immediate relief to the public such as empowerment of low income families, upliftment of the rural economy, fulfilling the housing needs of the public, educational reforms and achieving transformational progress in the skills development sector.
It was announced that National Development Bank (NDB) has received applications for over Rs.6.5bn for its Basel III compliant – tier 2 listed rated unsecured subordinated redeemable 5 year debentures and accordingly the issue has been oversubscribed. The issue was closed at 4:30 pm on 17 September 2020 as per the prospectus and the basis of allotment is to be notified in due course.
Piramal Glass Ceylon (GLAS) announced as a clarification to a news article published in the Daily Mirror on 17 September 2020 that Piramal Glass Pvt Ltd, which owns a majority stake of the company, believes that due to the current market conditions there are emerging opportunities for consolidation which makes it an opportune time to leverage Piramal capabilities for both organic and inorganic growth. The company plans to selectively evaluate opportunities for further consolidating their market position which includes a potential equity capital raise from financial partners.
It was announced that Commerical Leasing & Finance (CLC) has received applications for over Rs.5.0bn for its issue of listed, rated, senior, unsecured, redeemable debentures and accordingly the issue has been oversubscribed. The issue was closed at 4:30 pm on 17 September 2020 as per the prospectus and the basis of allotment is to be notified in due course.
It was announced that United Hotels Co Ltd, a subsidiary of Ceylon Hotels Corporation (CHOT) has obtained a term loan facility and that CHOT has given a corporate guarantee of Rs.46.7mn and US$60,000. The aggregate value of corporate guarantees given by CHOT to its subsidiaries exceeds 20% of the net worth of CHOT as per the latest balance sheet of the company.
People’s Merchant Finance (PMB) announced that its Board of Directors has decided to revisit the terms of the rights issue of shares announced on 28 February 2020, taking into consideration the effects from COVID-19 outbreak on the company as well as changes to market conditions, subject to receiving approvals from the Central Bank of Sri Lanka (CBSL).