20 years partnership celebrated by TUI - Aitken Spence Monthly Market Report, November 1998 Central Bank Public Seminar series Unit Trust Prices Exchange Rates

20 years partnership celebrated by TUI - Aitken Spence

Touristik Union International (TUI) the European market leader in organised tourist travel and Aitken Spence, Sri Lanka's leader in destination management and resort hotel management, celebrated 20 years of partnership at two separate ceremonies at Kandalama Hotel and at Triton Hotel, recently.

TUI was one of the first international tour operators to make Sri Lanka a tourist destination. In fact they commenced operations even before the tie-up with Aitken Spence. Since forming the partnership with Aitken Spence Travels, over 200,000 visitors have visited Sri Lanka under the TUI banner. It is interesting to note that a significant number of TUI customers are 'repeaters'. This speaks volumes of the marketing skills of TUI in Germany and the efficiency of Aitken Spence Travels in providing a package of services that gives the tourist just what he or she is wanting - complete relaxation, good food & comfortable accommodation and days of fun & sunshine. Aitken Spence Travels makes use of both the Aitken Spence Hotel chain and also the better known resorts of other companies.

A team of top Directors and senior managers from TUI headed by Dr. Helmut Roland - a Director of TUl's Executive Board - was here in Sri Lanka for this historic occasion.

At the ceremony at Kandalama, the chief guest was the Minister of Tourism and Civil Aviation - Mr. Dharmasiri Senanayake. Also present was the Deputy Minister of Tourism - H. B. Semasinghe, the German Ambassador - Helmut van Edig and high officials of the Ministry of Tourism & Tourist Board. TUI received an award from Mr. Dharmasiri Senanayake, for their contribution to the Sri Lankan tourism industry. This was received on behalf of TUI by Dr. Helmut Roland. Amongst the other awards made were by Aitken Spence to TUI and to the Hotel Partners, namely those hotels where TUI Groups regularly stayed during the last 20 years. These awards were received by the respective hotel Directors or Managers. TUI too made two presentations, one to the Minister and the other to Aitken Spence. The day's proceedings ended with a gala dinner aptly termed 'Raja Bojun'.

On the morning after, a conference was held with the Minister and Tourist Board officials, regarding the country's efforts at International Tourism Promotion.

The distinguished visitors from TUI also visited the Tea Factory, Sri Lanka's unique theme hotel and then visited Triton Hotel, Sri Lanka's first 5 star beach resort.

The ceremony at Triton was spectacular with a section of the hotel being transformed into a fishing village.

At this ceremony, awards were made to members of the staff of Aitken Spence Travels, who had contributed to the success of the partnership with 15 years service and more.

As Mr. R. Sivaratnam - Chairman & Managing Director of Aitken Spence - expressed it in his message 'it is hoped that when the time comes to celebrate the TUI-Aitken Spence 30th Anniversary, ten years from now, the country's terrorist problem would long since have been solved and Sri Lanka will be a tourist paradise, with TUI heading the list of tour operators'.

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Monthly Market Report, November 1998

Price levels appreciated significantly during the month with the ASPI and SPI moving up by 76.4 points (15.3%) and 158.3 points (21.8%) respectively.

The ASPI which opened the month at 498.9 points closed the month at 575.3 points while the SPI moved up from 723.1 points to 881.4 points.

A turnover of Rs. 1.8 Bn. was recorded during the month with an average daily turnover of Rs. 91.05 Mn. The average daily turnover showed a 158% improvement over that of October. During the month a total number of 86.0 Mn. shares were traded. The comparable figure for the last month was 45.9 Mn. shares.

Sector Indices
In keeping with the upward trend in the market all sectors reported positive growth during the month. Significant price gains were observed in Beverage Food & Tobacco (22%), Banks Finance & Insurance (21%), Construction & Engineering (21%), Footwear & Textiles (21%), Manufacturing (17%) & Motors (16%)..

Foreign participation
Foreign investors were net buyers during the month with net purchases amounting to Rs. 152.2 Mn. in comparison to Rs. 64.8 Mn. net sales last month. Foreign purchases accounted for 48% of the total turnover while foreign sales accounted for 39% of the total turnover.

CDS Operations
In November 1998, 2,687 new accounts were opened in the CDS with deposits of 25,829 share certificates. As at the end of the month there were 229,878 local individuals, 1,250 foreign individuals, 2,352 local companies and 2,212 foreign companies registered with the CDS.

The CDS was admitted as a member of the Asian Pacific Securities Depository group (ACG), thus becoming the 18th member of the ACG.

Interest Rates
The Commercial Bank Prime Lending Rate (PLR) moved up from 14.7% p.a. to 15.4% p.a. during the month while the 12 month Treasury Bill Rate (TBR) depreciated marginally from 13.06% to 13.00%. The Commercial Bank Average Weighted Deposit Rate (AWDR) moved down from 9.6% to 9.2%.

Foreign Stock Markets
Many stock markets experienced a new inflow of funds during the month

For the first time in four months the Dow Jones Index Broke through the 9000 point level and appreciated 6% during the month. This no doubt was influenced by the US Central Bank, the Federal Reserve cutting Interest rates by 0.25% in November '98 for the third time in the last quarter.

In London the FTSE Index moved up by 5% to reach the highest close since early August. Tokyo's Nikkei Index also reached a record high for the last three months and appreciated by 10% in November '98.

Eight of Europe's top stock markets announced that they want to join the forces to set up a European wide Exchange. The Stock Exchanges of London, Frankfurt, Amsterdam, Brussels, Madrid, Milan, Stockholm & Zurich were hoping to create a 'Pan European Stock Market'.

In East Asia Hong Kong's Hang Seng moved up by 2% while Kuala Lumpur (KLSE) appreciated by 23%.

In south Asia, Bombay remained unchanged at the end of the month while Karachi appreciated by 12%. In comparison Colombo moved up by 16% during the month. - (CSE)

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Central Bank Public Seminar series

The Central Bank of Sri Lanka commenced a series of public seminars in January, 1998 to enhance public awareness on current economic policies and issues.

The ninth seminar in this series, 'Socio-Economic Developments in Sri Lanka: Major Findings of the Consumer Finances and Socio-Economic Survey - 1996/97 will be held at 4.30 p.m.on December 17, 1998 at the auditorium of the Rural Banking and Staff Training College, Central Bank of Sri Lanka, Rajagiriya.

Mr. A. S. Jayawardena, Governor of the Central Bank will inaugurate the Seminar. Dr. S. S. Colombage, Director, Statistics Department, Central Bank of Sri Lanka will be the main speaker. Mr. A. G. W. Nanayakkara, Director General, Department of Census & Statistics and Dr. R. M. K. Ratnayake, Secretary, Ministry of Samurdhi, Youth Affairs and Sports will be the discussants.

The seminar is open to the general public.

Pyramid Unit Trust Manager's Selling Price Rs. 5.65 (per unit) Managers Buying Price Rs. 5.26 (per unit)

Ceybank Unit Trust Manager's Selling Price Rs. 5.82 (per unit) Managers Buying Price Rs. 5.45 (per unit)

* After deducting exit fees applicable for the first year

+ Exchange Rates

The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of December 10, 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 December 10, 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 December 10, 1998 were as follows:

Average Weighted Prime Lending Rate (AWRP) and Lowest Prime Rate (LPR)
The Average Weighted Prime Lending Rate (AWPR) during the week ended December 10, 1998 was 16.0 per cent for all banks. The Lowest Prime Rate among banks during this week was 13.5 per cent.

Average Weighted Deposit Rate of Commercial Banks (AWDR)
The Average Weighted Deposit Rate (AWDR) of Commercial Banks for the month ended November 30th, 1998 was 9.2 percent.