Milan to Colombo direct ... Page 4 www.island.lk Thursday 17th September, 2009 London Stock Exchange group to acquire MillenniumIT London Stock Exchange Group plc ('the technology business. Group to implement a new, more agile, innovative fields. The potential from this transaction is con- Bourse takes off again Group') has today agreed to acquire MillenniumIT, MillenniumIT will retain its culture of innovation and efficient IT capability for our future business siderable for both parties." a Sri Lankan-based technology services company and creativity, build on its commercial operations development as well as running a new cash trad- Tony Weeresinghe, CEO of MillenniumIT, said: serving the capital markets industry. and continue serving its existing clients, with its ing platform which will provide substantially lower "This transaction with London Stock Exchange after Tuesday’s lull MillenniumIT's high performance technology CEO, Tony Weeresinghe, reporting directly to latency, significantly higher capacity and Group is a tribute to the innovative culture of our will provide the Group with a highly scalable and Xavier Rolet. improved scalability. company, the quality of our technology solutions very low latency in-house developed trading sys- Xavier Rolet, Chief Executive of London Stock "It will also offer cost saving opportunities in the and our deep pool of talented staff. The Group's tem with multi-asset class functionality and quick- Exchange Group, said: future and give the Group a footprint in Asia. backing gives us the resources to continue support- er time to market. In addition, the transaction will "Improving our technology and increasing our Moreover, MillenniumIT is a proven business, ing our existing customers, expanding the company give MillenniumIT the backing of the Group to competitive position in the fast-moving trading already serving multiple clients in multiple geogra- into other markets and investing for the future." enable it to develop further its global exchange environment is vital. This transaction enables the phies, including some of the best known in their Continued on page 3 US$ 500 mn Middlemen control prices for paddy,not market forces: official Sovereign Bond issue: International banks express Lower forecast: Inflation to positive reach 6 percent in Dec 2009 sentiments By Devan Daniel 2009. The Colombo bourse per- close at Rs. 150 contributing By Devan Daniel The Department of Census and When first quarter data was formed strongly yesterday Rs. 487 million to turnover. A senior official of the Statistics has lowered the forecast introduced in June 2009, the with turnover hitting nearly ComBank was next on the Central Bank said representa- for the rate of inflation for 2009 from Department of Census and Statistics Rs. 1.3 billion, up from the turnover league with nearly tives from seven international about 8 percent, according to a fore- had forecast point-to-point change in previous day’s Rs. 886 million 0.5 million shares done banks and investment institu- cast made in the first quarter of the the rate of inflation to be 7 to 8 per- with both indices up sharply between Rs. 162.50 and Rs. tions had been very positive year, to 6 percent forecast in the sec- cent for 2009 while the moving aver- – the All Share by 46.80 170 gaining Rs. 7 to close at about wanting to assume the role ond quarter. age was forecast to be about 5 per- points (1.65%) while the Rs. 170 generating Rs. 79.6 of lead managers to Sri Lanka’s The point-to-point change in the cent. Milanka gained 62.58 points million turnover. US$ 500 million Sovereign Bond rate of inflation was 0.9 percent for “We had to adjust are forecast (1.98%) with JKH, DFCC Bank was up Rs. issue. August 2009 while the 12 month based on recent trends in the change Commercial Bank, DFCC and 4.75 to Rs. 149.75 trading “They had presented their pro- moving average was 8.5 percent. of the rate of inflation, which has Distilleries being the main between Rs. 146.50 and Rs. posals to a steering committee Headline inflation, or the point- inflation was forecast to be around 5 been around one percent for the past business generators. 151 contirbuting Rs. 41.3 mil- comprising officials of the to-point change in inflation peaked to 6 percent for 2009 while the twelve few months. It is a bit difficult to fore- ``Sentiment was very pos- lion turnover while Ministry of Finance and Planning last June at 28.2 percent on high month moving average is expected cast the point-to-point change in infla- itive,’’ Prashan Fernando of Distilleries with over 0.4 mil- and the Central Bank last week global prices for food and commodi- to come down to about 4 percent. tion, which we predict to be about 6 Acuity Stockbrokers said. lion shares traded between and they were all very positive ties. The Department of Census and percent by this December,” D. C. A. ``There was a lot of foreign Rs. 82.25 and Rs. 86 was up about wanting to be the lead man- The Department of Census and Statistics last Monday released this Gunawardena, Director Department activity particularly on JKH Rs. 3 to close at Rs. 86. ager for the Sovereign Bond issue,” Statistics earlier this week said the data along with the national of Census and Statistics said. with several crossings at a Lanka Walltile with near- Central Bank Director Economic point-to-point change in the rate of accounts for the second quarter of Continued on page 3 price of Rs. 150.’’ ly 0.7 million shares traded Research K. D. Ranasinghe told the He added that early trad- between Rs. 46 to Rs. 48.25 Island Financial Review. ing was dull with the market gained Rs. 1.25 to close at Rs. Continued on page 3 Loss of GSP Plus could throw down at one stage but activi- 48. ty picked up later in the day With rumours of E- International with a focus on blue chips. Chanelling changing hands, ceramics into turmoil Brokers said it appeared nearly 2.4 million shares of community to that a foreign investor who this counter were traded By Mario Andree Industry sources said. challenges from low cost manufac- had been negotiating big closing flat at Rs. 11. assist in Sri Lankan Ceramic Council The sources said that loss of the tures such as China, Thailand, blocks of JKH off the floor Ceylon Guardian (SLACC), which represents a large GSP plus facility would throw the Bangladesh, Malaysia, Indonesia had come on to the trading Investment Trust and Ceylon agrarian number of ceramic manufactures industry into turmoil with Sri and India. floor yesterday as he was not Investments announced their and exporters, expressed alarm at Lanka losing out to other competi- The EU, unlike Sri Lanka, does getting the quantities he share buy-back at a cost of development the possibility of losing the GSP tors and that would in turn force not rely on import duties for rev- wanted. Rs. 1.04 billion for Guardian By Don Asoka Wijewardena plus facility which would have a many a ceramic producer to shut enue. The largest revenue is gener- NAMAL said its initial and Rs. 912 million for negative impact on the industry, shop resulting in an increase in the ated from Income tax. The GSP public offering to raise an Ceylon Investments. At the request of the unemployment rate. enables the exportation of 6,244 investment fund had been Under terms of the offer, Agriculture and Agrarian The ceramic industry, with products with minimum Tax while over-subscribed and was 15% of Guardian and 20% of Services Minister Maithrepala around 15 companies, provides GSP plus enables the exportation of exercising the option of rais- Ceylon Investment would be Sirisena a number of countries employment to over 5,500. With US$ 6,336 products without any duty ing a further Rs. 500 million. repurchased by the two com- such as People’s Republic of 42 mn per year in exports it holds cost. The offer will be kept open panies at a price of Rs. 368 China, Egypt, India, Malaysia, less than 01 percent in the global For the period 2009-2011, 16 bene- till 4.30 p.m. today per share for Guardian and Pakistan, Indonesia, Napal, the market. ficiary countries have qualified to (Thursday) particularly to Rs. 189 per share for Ceylon United States of America, Japan, GSP plus is a Tax free scheme receive the benefits offered through accommodate outstation Investments. Korea, Canada, Saudi Arabia and that enables Sri Lanka to export to GSP plus. Sri Lanka is in the top 5 applications. ``These offer values Kuwiat Governments have Europe Union countries and it had beneficiary countries with in the Over 3.2 million JKH was reflect the net asset value of expressed their willingness to enabled the ceramic industry to scheme, and has a total export done yesterday between Rs. the two companies’ portfolios financially support the agricul- keep a head in the global market. A amount as per year 2007 under GSP 148 and Rs. 150.50 with the as at the end of June 2009,’’ tural development in Sri Lanka. struggling industry today, Sri plus of US$ 49Bn counter gaining Rs. 2.75 to the companies said. Continued on page 3 Lanka’s ceramic industry faces Continued on page 3