• Exchange Rates
• Unit Trust Prices
• ‘Private sector can have trade ties with Taiwan’
• Strong demand for Low Growns
• ‘Reconstruction Double’ by Overseas Realty
• Official launch of 2nd SAARC Trade Fair ’98 Sept. 8 to 15
• Computer software production here by China firm
• NCE Export Awards Ceremony - Aug. 14

The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of June 05, 1998 were as follows:

The approximate middle exchange rates of following currencies calculated on the basis of cross rates quoted by Gulf International Bank, Bahrain as it appeared in Reuters Financial Information System on June 05,1998 were as follows:

Average rates at which the following currencies were quoted by Commercial Banks in Colombo for Telegraphic Transfers at mid-day on June 05, 1998 were as follows:

Average Weighted Prime Lending Rate (AWPLR) and Lowest Prime Rate (LPR)
The Average Weighted Prime Lending Rate (AWPR) during the week ended May 29th 1998 was 14.8 per cent for all banks. The Lowest Prime Rate among banks during this week was 12.5 per cent.

Average Weighted Deposit Rate of Commercial Banks (AWDR)
The Average Weighted Deposit Rate (AWDR) of Commercial Banks for the month ended April 30th 1998 was 9.6 percent.

‘Private sector can have trade ties with Taiwan’

"The government of Sri Lanka has consistently followed what is known as ‘One China Policy’, accepting the fact that Sri Lanka recognises only the People’s Republic of China as the legitimate China and Taiwan as a province of China. While pursuing this ‘One China Policy’ the government of Sri Lanka recognises the vast potential for trade investment and tourism with Taiwan and has allowed the private sector to conduct trade and economic relations with Taiwan," said Kingsley T. Wickremaratne, Minister For Internal and International Commerce and Food when a Trade and Investment delegation from Taiwan met him at his ministry last week.

In fact, Sri Lanka has no objection to the establishment of a Taiwan Chamber of Commerce office in Colombo. Under the guidelines given by the Ministry of Foreign Affairs there is also provision for the Ceylon Chamber of Commerce to set up an office in Taiwan for promoting trade, tourism and investment from there to Sri Lanka through organised trade missions, Minister Wickramaratne said.

The Taiwan delegation leader, Mr. Su Pin Lang said that the delegation comprised businessmen dealing with wide range of products such as electronics, chemicals, fishing gear, fertilizer and are interested in setting up joint ventures in Sri Lanka.

Kumar Abeysinghe

Strong demand for Low Growns

Auction quantities at June 3 sale remained around last and totalled a 5.4 million kgs of which Ex-Estate offerings were 1.1 million kgs.

Once again, Low Growns continued to meet strong demand and witnessed a firm to dearer trend in prices. This trend would result in the weekly low grown average moving up further on the record average of Rs. 151.06 per kg established at the last week’s sale. It would also be pertinent to note that the monthly low grown average for the month of May ’98 has established a new all time record figure of Rs. 147.45 per kg bettering its previous of Rs. 147.10 per kg established in January ’98.

The 1.1 million kgs of tea on offer in Ex-Estate catalogues this week showed a general decline in quality as is customary at this time of the year. Consequently, majority of the better liquoring BOP’s BOPF’s declined irregularly following quality. However, at the bottom end of the market clean leaf BOP’s often advanced Rs. 5/- per kg and more following improved activity amongst shippers to the CIS. However their corresponding BOPF’s were irregular and barely steady.

— Eastern Brokers Limited

‘Reconstruction Double’ by Overseas Realty

Overseas Realty Ceylon Ltd., (ORCL), owner and developer of the prestigious World Trade Centre (WTC) Colombo, has successfully completed an ambitious financial restructuring programme which it undertook a few months ago. It is significant that this financial reconstruction coincided with the completion of the reconstruction of WTC building which suffered bomb damage in October last year.

ORCL carried Loan Stock to the value of US$ 91 million in its last balance sheet. This amount included the interest accrued on these Loan Stocks amounting to US$ 11.1 Million. These loan stocks were redeemable on 3 different dates between 14th May 1998 and 27th May 2001. The annual interest burden on the company on these loan stocks was Rs. 395 Million.

With a view to eliminating this heavy interest burden and making its operations more feasible, the company undertook the task of converting the loan stock debt to equity. It approached the stock holders with a cogent, well thought out, scheme of reconstruction, by which the loan stocks were to be redeemed at dates prior to their maturity, by the issue of Redeemable Cumulative Convertible Preference Shares (RCCPS).

This received the approval of the loan stockholder at an Extraordinary General Meeting held on March 27, 1998. 99.6% of the loan stockholders voted in favour of the scheme.

When the scheme was offered to the loan stockholders for acceptance, stock holders who held 99.67% of the loan stocks issued opted to have their loan stocks redeemed by the issue of Redeemable Cumulative Convertible Preference Shares (RCCPS).

On 14th May, the date of which the first set of loan stocks were to mature, the company redeemed loan stocks to the value of Rs. 4,790 Million by the issue of 4.79 Million RCCPS. This has enabled ORCL to reduce its interest burden by Rs. 231 Million.

This action by the loan stockholders displayed the confidence they had placed on ORCL and their appreciation of its potential as one of Sri Lanka’s leading property developers who owned world class property.

The reconstruction work at the WTC is now approaching completion. It is expected that the building would be restored to its pristine state by early July this year. The Deli Market, popular restaurant within WTC, is now in operation. Many promotional events have been planned by the operators of the Deli Market in the coming weeks. This is bound to intensify activity at the WTC.

The manager of the WTC is confident that its occupancy level is bound to increase in the near future. A number of new tenants have shown interest in occupying space within the WTC. Among the new tenants who have contracted for space within the WTC is a leading broadcasting company and an internet operator. The availability of ultra modern telecommunication facilities within the WTC makes it a very attractive location to all businesses which require such facilities. A fibre optic communication network is to be linked to the WTC soon and its tenants would be fortunate to enjoy ISDN facilities in the near future.

Official launch of 2nd SAARC Trade Fair ’98 Sept. 8 to 15

The Federation of Chambers of Commerce & Industry (SAARC Chamber — Forum) is organising the 2nd SAARC Trade Fair ’98 in association with Ministry of Internal & International Commerce and Food at the Bandaranaike Memorial International Conference Hall (BMICH) Colombo, from 8th to 15th September ’98. President Chandrika Bandaranaike Kumaratunga will be invited to inaugurate the event on September 8 1998.

The main purpose of this event is to project the image of SAARC member countries through the full range of their respective economic activities and to develop economic co-operation and to promote intra regional trade investment and tourism among the SAARC member countries. This event is based on the theme of "Opportunity for Regional Growth" and it will be a key event under the chairmanship of Sri Lanka.

The 2nd SAARC Trade Fair ’98 will therefore be a window of products and services of the SAARC member countries and will be a major international event in the region.

Computer software production here by China firm

Mr. Huang Guoping, President of the Shanghai Wan Feng China based Real Estate Co Ltd., a prospective investor in Sri Lanka with his company representatives accompanied by the BOI officials met Minister for Internal International Commerce and Food, Kingsley T. Wickramaratne, recently at his ministry.

"Initially we intend bringing in US$ 52 million worth of investment to set up 'Techno Park' We have already selected land area closer to Piliyandala. Computer software development will be a major activity in this selected area. Satellite uplink will facilitate transfer of data and program material. Our aim is to attract the world best software development companies to the proposed Techno Park. At the second stage we shall go into real state development joining with the private sector in Sri Lanka".

NCE Export Awards Ceremony - Aug. 14

The NCE exports awards ceremony is scheduled to be held on August 14. at the Hilton Hotel. The award scheme held annually was intended by the president of the National Chamber of Exporters of Sri Lanka, Patrick Amerasinghe and is being organised by its Executive Director, Rasa Weerasingham.

Awards will be made to outstanding performers in the small, medium and large categories and the services sector for 1997.

Members of the Association have been asked to make their applications for consideration by a distinguished panel representative the Central Bank, Sri Lanka Institute Marketing, The Chartered Institute of Management Accountants, The Export Development Board, Sri Lanka Customs Institute of policy studies and the Federation of Chambers of Commerce and Industry of Sri Lanka.