Sri Lanka remaining north railway to be built by India
July 15, 2011 (LBO) - India's state-run Indian Railway Construction International Ltd (lRCON) has been given a 149.3 million US dollar contract to build a remaining part of a railway track to Sri Lanka's north, the government's information office said.
The entire track from Vavuniya to Jaffna was destroyed during a civil war which ended in 2009.
A railway track from the northern town of Vavuniya to Omanthai has already been built and trains are being run.
The track from Omanthai to Pallai has already been awarded to IRCON.
The balance part of the track from Pallai to Kankasanthurai in Jaffna has also been awarded to IRCON by the cabinet of ministers.
The 149.3 million dollar project is financed by the Exim Bank of India, the statement said.
Friday, July 15, 2011
Thursday, July 14, 2011
SRI LANKA LAND FOR DEVELOPMENT
July 13, Colombo: Sri Lanka Minister of Economic Development Basil Rajapaksa said the government had identified 47 acres of prime land from the capital Colombo city that is suitable for mass scale investments.
The land which belongs to the Urban Development Authority will be released for investment step by step to prevent the decline of market price of prime land, the Minister had told the media, Sinhala daily The Lankadeepa reported.
The Minister made this statement in response to a question raised by a journalist regarding releasing of prime land in Colombo city for big investments.
Sri Lanka government recently granted 10 acres of prime land at Galle Face to Shangri-La Company of China for a hotel project.
The land which belongs to the Urban Development Authority will be released for investment step by step to prevent the decline of market price of prime land, the Minister had told the media, Sinhala daily The Lankadeepa reported.
The Minister made this statement in response to a question raised by a journalist regarding releasing of prime land in Colombo city for big investments.
Sri Lanka government recently granted 10 acres of prime land at Galle Face to Shangri-La Company of China for a hotel project.
SRI LANKA CREDIT UP
Sri Lanka credit to business up 33.3-pct in May
July 11, 2011 (LBO) - Credit to business from Sri Lanka's commercial banks rose 33.9 billion rupees in May 2011 to 1,664.4 billion rupees, with rupee denominated loans rising 30.5 billion rupees and forex loans rising 3.4 billion rupees, official data showed.
In the year to May commercial bank loans to business rose 33.3 percent or 416 billion rupees, edging up from 31.4 percent in April. Growth in rupee denominated loans was 35.1 percent.
Last week central bank has said that private sector credit may slow during the rest of the year. New loans have been hovering around 30 billion rupees in recent months.
Credit to government from banks rose 13.6 billion rupees 476.9 billion rupees in May through year to date growth was flat at 2.9 percent.
Central bank credit to government (printed money) fell to 95.6 billion rupees from 98.4 billion rupees a month earlier.
Loans in dollars to private business rose 3.4 billion rupees to 180.4 billion rupees. In the year to March dollar loans rose 20.5 percent.
Though rupee interest rates are now low compared to earlier rates and the prime lending rates is now around 9 to 10 percent, dollar loans yields are in the mid to low single digits.
Sri Lanka's central bank has tightened its peg with the US dollar by printing less money and borrowers believed that there will be stable exchange rates in the years to come making them comfortable to borrow in dollars.
The phenomenon is known as 'liability dollarization' and is seen is so-called 'soft-pegged' exchange rate environments.
Unlike a 'hard peg' however the legal framework surrounding a 'soft-peg' allows the monetary authority print large amounts of money in a short time, and the peg can break at any time.
July 11, 2011 (LBO) - Credit to business from Sri Lanka's commercial banks rose 33.9 billion rupees in May 2011 to 1,664.4 billion rupees, with rupee denominated loans rising 30.5 billion rupees and forex loans rising 3.4 billion rupees, official data showed.
In the year to May commercial bank loans to business rose 33.3 percent or 416 billion rupees, edging up from 31.4 percent in April. Growth in rupee denominated loans was 35.1 percent.
Last week central bank has said that private sector credit may slow during the rest of the year. New loans have been hovering around 30 billion rupees in recent months.
Credit to government from banks rose 13.6 billion rupees 476.9 billion rupees in May through year to date growth was flat at 2.9 percent.
Central bank credit to government (printed money) fell to 95.6 billion rupees from 98.4 billion rupees a month earlier.
Loans in dollars to private business rose 3.4 billion rupees to 180.4 billion rupees. In the year to March dollar loans rose 20.5 percent.
Though rupee interest rates are now low compared to earlier rates and the prime lending rates is now around 9 to 10 percent, dollar loans yields are in the mid to low single digits.
Sri Lanka's central bank has tightened its peg with the US dollar by printing less money and borrowers believed that there will be stable exchange rates in the years to come making them comfortable to borrow in dollars.
The phenomenon is known as 'liability dollarization' and is seen is so-called 'soft-pegged' exchange rate environments.
Unlike a 'hard peg' however the legal framework surrounding a 'soft-peg' allows the monetary authority print large amounts of money in a short time, and the peg can break at any time.
SRI LANKA NEW HOTEL INVESTMENT
(Reuters) - Sri Lanka expects $1.5 billion foreign direct investment (FDI) through its first tourist city project, that includes four five-star hotels comprising 2,300 rooms, the government said on Thursday.
The planned hotel city at an 80 hectare site in Katana, a coastal town 15 km from commercial capital Colombo, is the latest destination where the island nation aims to build infrastructure to accelerate its post-war tourism boom.
"The envisaged foreign direct investment for phase one is $1.5 billion," Media Minister Keheliya Rambukwella told reporters. "The project will comprise of four five-star hotels with a total number of 2,300 rooms, exhibition and convention centre, (and) two shopping malls."
On Wednesday a senior minister told parliament Sri Lanka is in discussion with seven hotel chains including Claridges, Six Senses and Four Seasons to build large five-star hotels.
In January Sri Lanka signed agreements with Hong Kong-based Shangri La Asia for a $500 million complex with high-end retail facilities, deluxe apartments and a 500-room luxury hotel in Colombo and a 300-room city resort on approximately 100 acres in Hambantota on the southern coast.
The end of the 25-year war in May 2009 has boosted the $50 billion economy's leisure industry, making it one of the most attractive sectors for investment due to the island's tropical climate that attract high-end western European tourists.
Sri Lanka's tourism industry has secured $1.2 billion foreign investment this year. (Reporting by Ranga Sirilal; Writing by Shihar Aneez; Editing by David Holmes)
The planned hotel city at an 80 hectare site in Katana, a coastal town 15 km from commercial capital Colombo, is the latest destination where the island nation aims to build infrastructure to accelerate its post-war tourism boom.
"The envisaged foreign direct investment for phase one is $1.5 billion," Media Minister Keheliya Rambukwella told reporters. "The project will comprise of four five-star hotels with a total number of 2,300 rooms, exhibition and convention centre, (and) two shopping malls."
On Wednesday a senior minister told parliament Sri Lanka is in discussion with seven hotel chains including Claridges, Six Senses and Four Seasons to build large five-star hotels.
In January Sri Lanka signed agreements with Hong Kong-based Shangri La Asia for a $500 million complex with high-end retail facilities, deluxe apartments and a 500-room luxury hotel in Colombo and a 300-room city resort on approximately 100 acres in Hambantota on the southern coast.
The end of the 25-year war in May 2009 has boosted the $50 billion economy's leisure industry, making it one of the most attractive sectors for investment due to the island's tropical climate that attract high-end western European tourists.
Sri Lanka's tourism industry has secured $1.2 billion foreign investment this year. (Reporting by Ranga Sirilal; Writing by Shihar Aneez; Editing by David Holmes)
SRI LANKA TOURISM INVESTMENT
(Reuters) - Sri Lanka's tourism industry has secured $1.2 billion foreign investment this year due to a post-war tourism boom and has raised its investment target to $3 billion within the next five years, an official said on Friday.
The end of the 25-year war in May 2009 has boosted the $50 billion economy's leisure industry, making it one of the most attractive sectors for investment due to the island's nature and tropical climate that attract more high-end Western Europe tourists.
"So far this year we have got $1.2 billion finalized," said Nalaka Godahewa, the head of Sri Lanka Tourism Authority, told Reuters in the western coastal beach town of Negombo after the launch of a five-star hotel upgraded from three-star status.
The investment includes nearly $1 billion of foreign investment into a 500-room hotel by Shangri-La Hotels Lanka Ltd., a subsidiary of Hong Kong-listed hotel operator Shangri-La Asia Ltd, and a shopping mall by China National Aero Technology Import and Export Corporation, he said.
"We are expecting $3 billion in foreign direct investment for tourism for tourism in next five years," he said.
Sri Lanka had aimed to attract $2.7 billion in investments to upgrade its post-war tourism capacity in the medium term, with the goal of growing revenue to $2.5 billion by 2016.
Arrivals have risen every month, on a year-on-year basis, since May 2009 and the number of visitors in the first five months of 2011 jumped 40.2 percent to 327,902.
"We are well ahead of our targets," Godahewa said. "Already 1,500 hotel rooms are under refurbishment or being upgraded while another 1,000 new rooms have been built. Our target is 45,000 rooms from the current 22,700," he said.
Arrivals hit a record high of 654,476 in 2010 with a 46.1 percent year-on-year rise and broke the previous record of 566,202 set in 2004, when a peace accord between the government
and the separatist Tamil Tigers was in place.
Tourist arrivals into Sri Lanka are forecast to grow by 20 percent to a record of more than 780,000 this year.
Tourism revenue rose 54.7 percent in first four months of this year to $270.6 million compared to the corresponding period last year after jumping 64.8 percent year-on-year to a record $575.9 million in 2010, the central bank's latest data showed.
The booming tourism investments have boosted 2011 first quarter foreign direct investment (FDI) to a record $236 million, the state-run investment promotion arm said this month.
(Writing by Shihar Aneez)
The end of the 25-year war in May 2009 has boosted the $50 billion economy's leisure industry, making it one of the most attractive sectors for investment due to the island's nature and tropical climate that attract more high-end Western Europe tourists.
"So far this year we have got $1.2 billion finalized," said Nalaka Godahewa, the head of Sri Lanka Tourism Authority, told Reuters in the western coastal beach town of Negombo after the launch of a five-star hotel upgraded from three-star status.
The investment includes nearly $1 billion of foreign investment into a 500-room hotel by Shangri-La Hotels Lanka Ltd., a subsidiary of Hong Kong-listed hotel operator Shangri-La Asia Ltd, and a shopping mall by China National Aero Technology Import and Export Corporation, he said.
"We are expecting $3 billion in foreign direct investment for tourism for tourism in next five years," he said.
Sri Lanka had aimed to attract $2.7 billion in investments to upgrade its post-war tourism capacity in the medium term, with the goal of growing revenue to $2.5 billion by 2016.
Arrivals have risen every month, on a year-on-year basis, since May 2009 and the number of visitors in the first five months of 2011 jumped 40.2 percent to 327,902.
"We are well ahead of our targets," Godahewa said. "Already 1,500 hotel rooms are under refurbishment or being upgraded while another 1,000 new rooms have been built. Our target is 45,000 rooms from the current 22,700," he said.
Arrivals hit a record high of 654,476 in 2010 with a 46.1 percent year-on-year rise and broke the previous record of 566,202 set in 2004, when a peace accord between the government
and the separatist Tamil Tigers was in place.
Tourist arrivals into Sri Lanka are forecast to grow by 20 percent to a record of more than 780,000 this year.
Tourism revenue rose 54.7 percent in first four months of this year to $270.6 million compared to the corresponding period last year after jumping 64.8 percent year-on-year to a record $575.9 million in 2010, the central bank's latest data showed.
The booming tourism investments have boosted 2011 first quarter foreign direct investment (FDI) to a record $236 million, the state-run investment promotion arm said this month.
(Writing by Shihar Aneez)
SRI LANKA PORT INVESTMENT
COLOMBO, June 23 (Reuters) - Sri Lanka has secured around $2.5 billion in local and foreign investment for the island nation's port expansion and related infrastructure, the head of country's ports authority said on Thursday.
It is Sri Lanka's largest investment since the end of a 25-year war and comes as the $50 billion economy emerges from the end of a 25-year war.
"We have already secured around $2.5 billion (of) investment," Sri Lanka Ports Authority Chairman Priyath Wickrama told Reuters. "This investment is bigger than the foreign direct investments to Sri Lanka. We will sign the agreements shortly."
The investment includes around $1 billion for the island's newly built port, $700 million for a port city on a reclaimed sea front, $500 million for port expansion in the commercial capital Colombo and $100 million for a cargo village, Wickrama said.
Sri Lanka has been investing heavily on long-neglected infrastructure to woo foreign direct investment, which has not picked up as expected so far despite the end of the war.
However a newly built port in the island nation's deep south city of Hambantota commissioned last year with the help of Chinese loan has attracted more investments.
"Hambantota port has attracted $952 million from 15 investors as it is expected to attract more ships compared to other regional ports," Wickrama said, adding it will have more business once commercial bunkering started shortly. "After August, the port will be fully operational."
"We have also found an investor for the port city for a volume of $700 million. We will reclaim around 500 acres of land from the seafront and lease it for 99 years. We expect global business to come and construct their headquarters there," he said without naming the investor.
The island nation is also expanding its commercial Colombo port with around $500 million deal with China Merchants Holdings and local conglomerate Aitken Spence to boost cargo-handling capacity, Wickrama said.
"We hope to increase the investment to $5 billion by (the) next five years and we hope to increase our contribution to 40 of the GDP (gross domestic product) from the current 10 percent." (Reporting by Shihar Aneez; Editing by David Holmes)
It is Sri Lanka's largest investment since the end of a 25-year war and comes as the $50 billion economy emerges from the end of a 25-year war.
"We have already secured around $2.5 billion (of) investment," Sri Lanka Ports Authority Chairman Priyath Wickrama told Reuters. "This investment is bigger than the foreign direct investments to Sri Lanka. We will sign the agreements shortly."
The investment includes around $1 billion for the island's newly built port, $700 million for a port city on a reclaimed sea front, $500 million for port expansion in the commercial capital Colombo and $100 million for a cargo village, Wickrama said.
Sri Lanka has been investing heavily on long-neglected infrastructure to woo foreign direct investment, which has not picked up as expected so far despite the end of the war.
However a newly built port in the island nation's deep south city of Hambantota commissioned last year with the help of Chinese loan has attracted more investments.
"Hambantota port has attracted $952 million from 15 investors as it is expected to attract more ships compared to other regional ports," Wickrama said, adding it will have more business once commercial bunkering started shortly. "After August, the port will be fully operational."
"We have also found an investor for the port city for a volume of $700 million. We will reclaim around 500 acres of land from the seafront and lease it for 99 years. We expect global business to come and construct their headquarters there," he said without naming the investor.
The island nation is also expanding its commercial Colombo port with around $500 million deal with China Merchants Holdings and local conglomerate Aitken Spence to boost cargo-handling capacity, Wickrama said.
"We hope to increase the investment to $5 billion by (the) next five years and we hope to increase our contribution to 40 of the GDP (gross domestic product) from the current 10 percent." (Reporting by Shihar Aneez; Editing by David Holmes)
power demand
Sri Lanka power demand hits new peak
Mar 23, 2011 (LBO) - Sri Lanka's night power demand hit a new peak load of 2,000 MegaWatts on Tuesday amid hot seasonal weather and growing usage, in a day that the utility officially commissioned a new 300 MegaWatt coal plant.
Power demand hit a peak of 1,999 MegaWatts at 7.30 in the evening not counting power generated by mini-hydro plants which can go up to 200 MegaWatts.
State-run Ceylon Electricity Board cannot immediately count the power generated from private mini-hydros which are not controlled centrally.
"We usually have high demand especially in March due to hot weather," state-run Ceylon Electricity Board chairman Vidya Amarapala said
"We have touched 2,000MW mainly to cater to the air conditioning load. We have also been increasing rural electrification which has increased the number of customers."
The CEB has a goal of electrifying most of the villages by 2012.
Amarapala said hotels were also using more power for air conditioning with high occupancy partly due to foreign fans that came to watch the cricket Word Cup series.
Tuesday had also seen the higher daily energy generated of 32.75 GigaWatt hours. Industry analyst say mini-hydro plants may have generated another one or two GigaWatt hours.
The CEB has also been giving power to the North and East of the country which emerged from a 30-year war in 2009.
Amarapala said the utility had enough installed capacity to meet the demand, which is expected to go up. On Tuesday the utility commissioned a 300 MegaWatt coal plant - the country's first.
Amarapala said the cost of generating a unit from the coal plant was 9.00 rupees a kilowatt hour at the latest coal prices.
This compares with just an energy cost of about 17 rupees for diesel combined cycles, around 9.40 for residual oil. The CEB sells power to small domestic users for only 3.00 rupees a unit.
Mar 23, 2011 (LBO) - Sri Lanka's night power demand hit a new peak load of 2,000 MegaWatts on Tuesday amid hot seasonal weather and growing usage, in a day that the utility officially commissioned a new 300 MegaWatt coal plant.
Power demand hit a peak of 1,999 MegaWatts at 7.30 in the evening not counting power generated by mini-hydro plants which can go up to 200 MegaWatts.
State-run Ceylon Electricity Board cannot immediately count the power generated from private mini-hydros which are not controlled centrally.
"We usually have high demand especially in March due to hot weather," state-run Ceylon Electricity Board chairman Vidya Amarapala said
"We have touched 2,000MW mainly to cater to the air conditioning load. We have also been increasing rural electrification which has increased the number of customers."
The CEB has a goal of electrifying most of the villages by 2012.
Amarapala said hotels were also using more power for air conditioning with high occupancy partly due to foreign fans that came to watch the cricket Word Cup series.
Tuesday had also seen the higher daily energy generated of 32.75 GigaWatt hours. Industry analyst say mini-hydro plants may have generated another one or two GigaWatt hours.
The CEB has also been giving power to the North and East of the country which emerged from a 30-year war in 2009.
Amarapala said the utility had enough installed capacity to meet the demand, which is expected to go up. On Tuesday the utility commissioned a 300 MegaWatt coal plant - the country's first.
Amarapala said the cost of generating a unit from the coal plant was 9.00 rupees a kilowatt hour at the latest coal prices.
This compares with just an energy cost of about 17 rupees for diesel combined cycles, around 9.40 for residual oil. The CEB sells power to small domestic users for only 3.00 rupees a unit.
New wind power plant
May 23, 2011 (LBO) - Sri Lanka's listed Hayleys group said a wind power plant it is building in the island's north western coastal town of Kalpitiya will begin commercial operations in September 2011.
The 10 MegaWatt wind plant is run by its unit Nirmalapura Wind Power (Private) Ltd.
The Kalpitiya peninsula has another wind plant by Sri Lanka's Senok group.
The Hayleys group also has several mini-hydro power companies and a bio-mass plant that generates power from waste heat at its activated carbon plants.
The 10 MegaWatt wind plant is run by its unit Nirmalapura Wind Power (Private) Ltd.
The Kalpitiya peninsula has another wind plant by Sri Lanka's Senok group.
The Hayleys group also has several mini-hydro power companies and a bio-mass plant that generates power from waste heat at its activated carbon plants.
Wednesday, July 13, 2011
Colombo South Harbour port terminal
When ready, Sri Lanka's new Colombo South Harbour port terminal, a US$ 500 million project built by a consortium led by China Merchant Holdings International which put up 55% of the funding compared to local partners Aitken Spence and the Sri Lanka Ports Authority, who will maintain a 30% and 15% stake, respectively, will be the only port in the region equipped to service new 18,000 Twenty foot Equivalent Units (TEUs) container vessels when they come online in 2013, according to Dr. Parakrama Dissanayake, Deputy Chairman of Aitken Spence's Cargo Sector business unit.
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