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Govt. netted $30m. from crude oil imports
The government had, in 1996 earned Rs: 16,516 million by way of taxes and duties through the import of and sale of all petroleum products. This was at a time when a barrel of crude oil cost US $ 20.20 in the world market. In the previous year while a barrel of oil cost 17.48 dollars the Government earned a revenue of Rs:13,895 million.
Lowering of the world market price of oil is said to have given a reprieve to the flagging Balance of Payments account.
In January 1998 a barrel of oil came down from 16.80 dollars to 13.60 by October. Consequently it had netted the government 30 million Dollars.
Currently the world market price is recorded at 10.44 dollars a barrel and is expected to go down further. However, this is a rise from the 9.55 a barrel in the first week of January this year.
Meanwhile the average profit earned by the government in 1996 per litre of petrol is said to be Rs: 15.62 and a loss of Rs: 3.94 per litre of diesel. In the case of kerosene the Government loses Rs: 4.12 per litre. The loss is said to be due to subsidising these two items by the government.
Pramuka Management & Financial Services Ltd. a member of the Pramuka Group of Companies which started operations on 6th March 1997 as the newest and most innovative merchant bank in Sri Lanka offering both fund and fee based services, plans further expansion in 1999.
The company's specialised investment products guarantees high returns to the investor and range from debentures, zero coupon promissory notes and short term discount notes. The Gold Certificate which was a first in Sri Lanka is both a form of investment and savings, with the Pramuka Managed Fund yielding a monthly yield of 11 percent per annum.
The fee based products range from property, life and travel insurance services. Management Consultancy service like preparation of Board of Investment applications for approval, feasibility studies and sourcing of small scale equity. Company Secretarial services and registration of trade marks and trade names, incorporation of companies with the ability to offer shelf companies within 24 hours from a part of their services. Presently Pramuka Management & Financial Services are Secretaries for over 25 Companies.
In the area of fund based business they are fast becoming market leaders in the field of trade finance and other short term finding requirements of the trade. Further the Company's provocative stance has made them aware of the needs and requirements of the client which has resulted in their venturing out into the highly competitive area of marketing and advertising by undertaking publicity and public relations work, product launches and promotions.
In addition they are also in the field of recruitment to the Middle East having incorporated a separate limited liability company for such services.
Tea Market this week
Price drops most significantThe market for liquoring teas on offer in the Ex Estate catalogues were sharply lower this week. Poorer quality and less demand were the main cause for a weaker market in which BOPs and BOPFs declined in value. Price drops were most significant in the case of Western BOPFs, which could be quoted 10% lower on last week's levels.
Low Growns commenced weaker, but tended to really in the latter half of the sale, when much of the morning's losses were recovered. The exception being the OPAs and poorer small leaf types, which continued week.
Fairly widespread rainfall has been reported from both sides of the island, over the past four days. The showers on the western side broke a dry spell that extended over ten days. It is uncertain how much longer this pattern would continue. It is likely however that it would delay the setting in of quality. The second sale of February (9th/10th), closed at seven million kilos; a million less than the record sale of the previous week. Almost half of the drop is from the Ex Estate catalogues, which have declined to a million kilos from the 1.68 million kilos catalogued for the sale of 2nd/3rd February.
The Russian Rouble dropped to 22.98 to the Dollar (says Reuters) amidst queries over the 1999 budget, which was passed by the lower-house of parliament on Tuesday. Critics say inflation will spiral to double or more the 30% foreseen in the budget. The Rouble has already dropped below the planned 21.5 per Dollar. The IMF meanwhile, has said the budget will not entice it to sink more money into Russia. - Asia Siyaka
Top Indian cement company to invest US$ 50 million in the South
Gujarat Ambuja Cements, one of the top cement companies in India will be setting up an integrated cement plant near Galle, in the south.
The company has chalked out an elaborate plan to bring investment of US$ 50 million in a two phase project that includes a storage terminal and a clinker grinding unit. In the initial stage, the plant will have annual capacity of half a million tons. Later, another half a million ton capacity will be added.
The company's Sri Lankan arm, Midigama Cements Pvt. Ltd., is a BOI company having a flagship status. Midigama Cements has already completed preliminary formalities and work at Galle is expected to begin early February.
"We are happy to come to Sri Lanka. The government and the people of Sri Lanka have welcomed us with open arms," said Mr. Ramakrishna, the Chief Executive Officer of Midigama Cements. "On our part, we will repay our gratitude to the people of Sri Lanka by completing the project ahead of schedule. We will do our best to make this project a model for Sri Lanka," he added.
This US$ 50 million project is expected to contribute to the development of southern region. When fully operational, it's likely to create employment - direct and indirect - for more than 1000 people. "Usually, a cement plant of this size helps create and develop ancillary industry and infrastructure, bringing about economic development of the surrounding area," affirms Mr. Ramakrishna.
Gujarat Ambuja Cements, the parent company of Midigama Cements, has five cement plants in the western, northern and eastern parts of India. The company's total annual capacity is seven million tons. It has an outstanding track record. The company's cement plants are acknowledged as one of the cleanest in the world. The pollution level at these plants is even below the stringent Swiss pollution levels. In fact, a rose garden flourishes right next to the kiln of the plant in Gujarat, in western India.
The company is also ranked among the most efficient cement companies in the world with power and fuel consumption and productivity levels matching some of the best cement plants in Japan.
The company is also India's largest exporter of cement, recording more than half a million tons in the last year. Its cement has reached countries as diverse as the Middle East, Mauritius, Singapore and Sri Lanka. Gujarat Ambuja Cements was the first Indian cement company to receive ISO: 9002 quality certification. It has also received the prestigious National Quality award. This award is equivalent to the Malcolm Balridge Award of USA.
"The first phase of our project will be completed in two years. Meanwhile, we are introducing our cement in Sri Lanka by importing it from India", informed Mr. Ramakrishna.
+ Exchange Rates The Central Bank's Spot Rates for transactions with Commercial Banks announced on the morning of January 22, 1999 were as follows:
Buying Selling 100 US Dollars Rs. 67.3299 Rs. 68.6901 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 Financial Information System.
Saudi Arabia Riyal Rs. 18.13 Bahrain Dinar Rs. 180.41 Kuwait Dinar Rs. 225.61 Qatar Riyal Rs. 18.69 UAE Dirham Rs. 18.52 Oman Riyal Rs. 176.66 Average rates at which the following currencies were quoted by Commercial Banks in Colombo for Telegraphic Transfers:
Buying Selling 100 US Dollars Rs. 68.4100 Rs. 68.7800 100 Sterling Pounds Rs. 112.8594 Rs. 114.0707 100 Euro Rs. 78.9781 Rs. 80.1615 100 French Francs Rs. 49.2309 Rs. 50.0787 100 Japanese Yen Rs. 0.5987 Rs. 0.6083 The European Commission Locking Rates of 11 member countries that came into existence from January 1st, 1999 are as follows:
Belgeam Franc 40,33900 Spanish Peseta 166.386000 Irish Punt 0.787564 Luxemberg Franc 40.339900 Austrian Schiling 13.780300 Finish Markka 5.945730 German Mark 1.95583 French Franc 6.55957 Italian Lira 1936.27000 Dutch Guilder 2,20371 Portuguese Becude 200.48200 The maximum and minimum average Weighted Prime Lending Rate (SWPLR) & (LPR) during the week ended January 14th, 1998 by all commercial banbks were 14.4 per cent and 12.5 per cent respectively.
The Average Weighted Deposit Rate (AWDR) of Commercial Banks for the month ended December 31st, 1998 was 9.2 per cent.
* Unit Trust Prices
Comtrust Equity Fund
Manager's Selling Price Rs. 5.38 Managers Buying Price Rs. 5.04
Eagle Gilt Edged Fund
Manager's Selling Price Rs. 11.14 Managers Buying Price More than one year Rs. 11.13 Less than one year Rs. 11.02*
Eagle Income Fund
Manager's Selling Price Rs. 11.14 Managers Buying Price More than one year Rs. 11.12 Less than one year Rs. 11.01*
Eagle Growth Fund
Manager's Selling Price Rs. 8.82 Managers Buying Price More than one year Rs. 8.47* Less than one year Rs. 8.38* * After deducting the relevant exit fees applicable
National Equity Fund
Manager's Selling Price Rs. 8.09 (per unit) Managers Buying Price Rs. 7.59 (per unit)
Namal Growth Fund
Manager's Selling Price Rs. 9.39 (per unit) Managers Buying Price Rs. 8.78 (per unit)
Namal Income Fund
Manager's Selling Price Rs. 10.67 (per unit) Managers Buying Price Rs. 10.55* (per unit) Rs. 10.66** (per unit) Note: * After deducting exit fees
** Without deducting exit fees
Ceybank Unit Trust
Manager's Selling Price Rs. 6.09 (per unit) Managers Buying Price Rs. 5.70 (per unit)
Ceybank Century Growth Fund
Manager's Selling Price Rs. 8.63 (per unit) Managers Buying Price Rs. 8.45 (per unit)
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