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

LOGISTICS BRIDGE

LOGISTICS VTR CHAMI 02.10

-BREAK 1 - ADD STATE OF BUSINESS BRIDGE

BIG INTERNATIONAL VTR ANOUK 02.35

BREAK 2 - STOCK WATCH

STOCK UPDATE CARDS 01.30

STOCK VTR 01.00
CURRENCY CARDS 00.20

LINE UP EDITOR - ANOUK/ NISHANI

ANCHOR - NISHANI
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 WITH

ACTIVITY LEVELS PICKING UP FOLLOWING A DULL WEEK.
THE INDICES CLOSED ON A MIXED SENTIMENT.

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 : MAIN
DATE : 30/11/07
REPORTER : LASHINI
SLUG : 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: MAIN
DATE: 30 / 11 / 2007
REPORTER: CHAMINDA
SLUG: 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 EXPERTS, ONCE IN OPERATION IN 2011, THE

COUNTRY WILL BE ABLE TO REFINE ITS TOTAL PETROLEUM
REQUIREMENT.

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 SMALL-
TIME 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 BELOW-
THE-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 THE IDEA OF INVESTING IN

MOBILE MARKETING LATER ON.

NOT AN IMPOSSIBILITY, CONSIDERING THAT IT HAS BEEN A

SUCCESSFUL YEAR THAT TOOK THEM BEYOND THE BREAK EVEN POINT.

ENDS/
DATE: 30/11/2007
REPORTER: SAMANTHA
SLUG: 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 : MAIN
DATE : 30TH NOVEMBER
REPORTER : FARVEEZA
SLUG : 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 WITH

ACTIVITY LEVELS PICKING UP FOLLOWING A DULL WEEK.
THE INDICES CLOSED ON A MIXED SENTIMENT.

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 : MAIN
DATE : 30/11/07
REPORTER : LASHINI
SLUG : 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 RE-
ENGINEERING 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