MARKET NEWS

16 July 2018

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COMMENTARY  17 July 2018

SL Purchasing Managers’ Index (PMI) Survey – June 2018

The Manufacturing Sector PMI was recorded at 57.6 in June 2018 which is a decrease of 3.0 index points compared to May 2018. The Services Sector PMI increased to 58.7 index points in June 2018 from 56.9 index points in May 2018.

https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/statistics/news_20180716_SL_PMI_June_20 18_e.pdf

Government to bring amendments to new IRA in six weeks (Daily Mirror)

Minister of Finance and Mass Media, Mangala Samaraweera has indicated that several amendments are to be made to the new Inland Revenue Act (IRA) within next six weeks, following the emergence of several discrepancies during the implementation of the act. The Minister noted that the amendments to the act will resolve confusion that has arisen on the taxes charged on minor savings accounts, royalty payments, NRFC and RFC accounts and certain tax issues pertaining to the Board of Investment.

http://www.dailymirror.lk/article/Govt-to-bring-amendments-to-new-IRA-in-six-weeks-152782.html

First-ever solar panel manufacturing plant in Sri Lanka opens in Katunayake (Daily FT)

Japanese Sri Lanka Friendship (JSF) Corporation (a Board of Investment Company) is set to commence operations at its production facility in Katunayake next week with an investment of ~Rs.5bn. JSF will be manufacturing solar panels, assemble inverters, and provide LED lighting solutions in Sri Lanka to serve domestic and international markets across Europe, Asia, US and the Middle East.

http://www.ft.lk/front-page/First-ever-solar-panel-manufacturing-plant-in-Sri-Lanka-opens-inKatunayake/44-659229

 Jetwing steps in to resort condominium market (Daily FT)

Hotelier Jetwing is set to invest ~Rs.4.5bn to build a 122-unit project (Waterscape) in Negombo. Maga has been contracted to build the luxury resort condominium and construction is expected to be completed by 2020. Chairman of the Jetwing Group, Hiran Cooray has stated that there is demand for mid-market resort living, and that he expects to Waterscape to be sought after by foreigners and Lankan expats, as well as locals, for residential/wellness holiday and investment purposes.

http://www.ft.lk/front-page/Jetwing-steps-in-to-resort-condominium-market/44-659230

Proposals to transform lives of children, and drive Sri Lanka’s economic growth (Daily News)

Minister of Finance and Mass Media, Mangala Samaraweera has stated that the government is committed to increasing and enhancing education policy and that the commitment is reflected in two main initiatives; the 13 years of education program and the budget proposals for a public private partnership model for child care facilities. The Minister further indicated that the government has increased investments in education to ~3.5% of GDP in 2017, and that the objectives is to raise this to ~6% of GDP by 2025.

http://www.dailynews.lk/2018/07/17/business/157072/proposals-transform-lives-children-and-drive-srilanka%E2%80%99s-economic-growth

Corporate Announcement:

It was announced that Commercial Bank of Ceylon’s (COMB) Rs.5bn, Basel III compliant, Tier II, listed, rated, unsecured, subordinated, redeemable debenture issue has been oversubscribed. Therefore, COMB’s debenture issue closed at 4.30p.m on 16 July 2018.

https://cdn.cse.lk/cmt/upload_cse_announcements/5561531738938_.pdf

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