ATTN: MR CHANDIMA UDABAGE

RUNDOWN

THE STATE OF BUSINESS – 22ND Nov, 2007

SLT DRY RIYAD

TRO CARD NILANTHA

LOGISTICS VTR CHAMI

BREAK 1 - ADD STATE OF BUSINESS BRIDGE

BOND MARKET VTR RIYAD

ADD CORPORATE BRIDGE

INTEL VTR NILANTHA

BREAK 2 - STOCK WATCH

STOCK UPDATE CARDS 01.30

CURRENCY CARDS 00.20

LINE UP EDITOR - ANOUK

ANCHOR - ANOUK
HEADLINES
1. GOVERNMENT PROSCRIBES TAMIL REHABILITATION
ORGANIZATION IN SRI LANKA, AND
2. BONDING WITH CORPORATE DEBT- EXPERTS LOOK AT IMPROVING
SRI LANKA’S BOND MARKET

1. SLT- DRY

THE SUPREME COURT TODAY POSTPONED ITS DECISION ON THE NIPPON

TELECOM/MAXIES CASE TODAY TO FEBRUARY 25TH 2008.

EARLIER THIS YEAR MEMBER OF PARLIAMENT SIRIPATHI SOORIARACHCHI FILED A

PETITION AGAINST NIPPON TELECOM OF JAPAN AND THE GOVERNMENT OF SRI
LANKA AGAINST THE SALE OF NTT’S SHARES TO MAXIES OF MALAYSIA.

APPROXIMATELY 50% OF SLT SHARES ARE OWNED BY THE GOVERNMENT OF SRI

LANKA WHILE NTT OWNS 35%, WHILE 15% OF EQUITY IS OWNED BY THE PUBLIC.

SLT SHARES OPENED THE DAY AT 34 RUPEES AND 75 CENTS AND CLOSED 25 CENTS
DOWN.

READ ON

2. TRO PROSCRIBED: CARD

THE GOVERNMENT HAS DECIDED TO PROSCRIBE THE TAMIL

REHABILITATION ORGANIZATION IN SRI LANKA.

CARD IN: GOVERNMENT BANS TRO

THE CABINET HAS GRANTED ITS APPROVAL TO THE MOVE

FOLLOWING A MEMORANDUM SUBMITTED BY FOREIGN
AFFAIRS MINISTER ROHITHA BOGOLLAGAMA.

THE CABINET HAS ALSO GIVEN THE GO-AHEAD TO MAKING

AN APPEAL TO FOREIGN GOVERNMENTS, INTERNATIONAL
ORGANIZATIONS AND INGO’S THAT HAVE A TRO PRESENCE
IN THEIR COUNTRIES OR HAVE RELATIONSHIPS WITH THE TRO, TO
TAKE ACTION AGAINST THIS ORGANIZATION AND TO CEASE ANY
TRANSACTIONS.

LAST YEAR THE CENTRAL BANK OF SRI LANKA FROZE BANK ACCOUNTS
OF THE TRO.

THE GOVERNMENT ALLEGES THAT THE TRO UNDER THE GUISE OF A

CHARITY ORGANIZATION COLLECTED AND DIRECTED FUNDS TO THE
LTTE FOR PROCUREMENT OPERATIONS.

READ ON..
3. NOW FOR A LOOK AT OUR SPECIAL FEATURE ON THE ‘LOGISTICS
HUB OF COLOMBO’

4. LOGISTICS 2 – VTR

A RECENT STUDY CONDUCTED BY US AID HAS GIVEN SRI LANKA’S OVERALL

TRANSPORT AND LOGISTICS PERFORMANCE FOR THE IMPORT AND EXPORT PROCESS A
RATING OF FAIR TO POOR.

THE STUDY SAYS SRI LANKA HAS A LOT TO IMPROVE IN THIS REGARD IF IT
REALLY WANTS TO BUILD COLOMBO INTO A WORLD CLASS LOGISTICS HUB.

IT HAS IDENTIFIED THAT THE MAIN CONTRIBUTOR TO THIS LOW RATING HAS BEEN
THE TRANSPORT COST INCURRED BY EXPORTERS AND IMPORTERS.

ROLL VTR

BREAK

5. BOND MARKET

SRI LANKA UNLIKE OTHER ECONOMIES IN THE REGION DOES NOT

POSSESS AN ACTIVE BOND CORPORATE MARKET.

DUE TO THIS SITUATION MOST CORPORATE ENTITIES SOURCE THEIR

FUNDS PRIMARILY THROUGH THE BANKING SYSTEM WHICH IS A
COSTLIER AFFAIR FOR BUSINESSES.

A 2 DAY WORKSHOP ON CAPACITY BUILDING FOR DEVELOPMENT OF

SRI LANKA’S BOND MARKET WAS JOINTLY ORGANIZED BY THE
CENTRAL BANK AND THE UNITED NATIONS ECONOMIC AND SOCIAL
COMMISSION FOR ASIA AND THE PACIFIC TODAY.

ROLL VTR

6. CORPORATE- INTEL – VTR

INTEL, THE WORLD LEADER IN SILICON INNOVATION HAS LAUNCHED

16-SERVER AND HIGH-END PC PROCESSORS USING AN ENTIRELY NEW
TRANSISTOR FORMULA WHICH ALLEVIATES WASTEFUL ELECTRICITY
LEAKS.

THESE INTEL CORE 2 EXTREME AND XEON PROCESSORS WERE

LAUNCHED IN SRI LANKA IN COLOMBO LAST EVENING.

ROLL VTR

BREAK
STOX

THE MARKET PICKED UP FROM YESTERDAY TO WITNESS AN ACTIVE

DAY OF TRADING, WITH INTEREST RIFE ON DIALOG.

8 CROSSINGS TOOK PLACE ON DIALOG WITH A TOTAL OF 28 MILLION

SHARES BEING TRADED AT 22 RUPEES EACH.

KOTAGALA ALSO SAW A CROSSING OF 1.75 MILLION SHARES AT

32.50.

419,600 SHARES OF CEYLON LEATHER PRODUCTS CHANGED HANDS AT

75 RUPEES WHILE SLT EXPERIENCED TWO CROSSINGS OF 500,000
SHARES AND 300,000 SHARES EACH AT 35 RUPEES.

VOLUMES WERE LED BY DIALOG TRADING 28.97 MILLION SHARES,

CEYLON LEATHER PRODUCTS TRADING 7.17 MILLION SHARES AND
CEYLON GLASS TRADING 6.14 MILLION SHARES.

DIALOG WAS ALSO THE MAIN CONTRIBUTOR TO TURNOVER INJECTING

637.19 MILLION RUPEES. CEYLON LEATHER PRODUCTS AND E-
CHANNELING CAME NEXT IN LINE.

FOREIGN BUYING WAS AT 1.02 MILLION WHILE FOREIGN SELLING

WAS RECORDED AT 705.94 MILLION.

THE ALL SHARE PICKED UP BY 20.92 POINTS TO END AT 2,598.96

WHILE THE MILANKA ALSO GAINED 26.41 POINTS, CLOSING THE DAY
AT 3,441.83.

TURNOVER WAS AT 1,456.7 MILLION RUPEES.

THE TOP GAINERS TODAY WERE MTD WALKERS, ALUFAB, CEYLON

LEATHER, WALK AND GREIG AND RICHARD PEIRIS, WHILE HEADING
THE LOSERS WERE NUWARA ELIYA, TANGERINE, HORANA, MADULSIMA
AND VIDULLANKA.

LANKA CERAMIC LTD MADE AN AMENDMENT TO ITS DIVIDEND PAYMENT

NOTICE MADE YESTERDAY.

LET’S TAKE A LOOK AT TODAY’S FOREX RATES!

SEGMENT: MAIN
DATE: 22 / 11 / 2007
REPORTER: CHAMINDA
SLUG: LOGISTICS 2 – VTR

A RECENT STUDY CONDUCTED BY US AID HAS GIVEN SRI LANKA’S OVERALL

TRANSPORT AND LOGISTICS PERFORMANCE FOR THE IMPORT AND EXPORT PROCESS A
RATING OF FAIR TO POOR.

THE STUDY SAYS SRI LANKA HAS A LOT TO IMPROVE IN THIS REGARD IF IT
REALLY WANTS TO BUILD COLOMBO INTO A WORLD CLASS LOGISTICS HUB.

IT HAS IDENTIFIED THAT THE MAIN CONTRIBUTOR TO THIS LOW RATING HAS BEEN
THE TRANSPORT COST INCURRED BY EXPORTERS AND IMPORTERS.

ROLL VTR
Jagdesh Mirchandani – Business Advisor
USAID

‘LOGISTICS HUB OF COLOMBO’

“Lot to be done to become a

world class logistics hub” – USAID

Complicated import tariff

Structure is problem - USAID

VOICE OVER – LOGISTICS – CHAMINDA – 22 / 11

THE REPORT HAS IDENTIFIED VOLATILITY, RELIABILITY, AND THE TIME

CONSUMING NATURE OF SRI LANKA’S PORT AND ROAD TRANSPORTATION ALONG WITH
THE LACK OF RAIL TRANSPORTATION FOR IMPORTERS AND EXPORTERS AS KEY
PROBLEMS THE SECTOR IS FACING.

INADEQUATE COMMUNICATION AND INFORMATION SYSTEMS BETWEEN FREIGHT

FORWARDERS AND CUSTOMERS, POOR PERFORMANCE IN RESOLVING PROBLEMS
RELATING TO DISPUTES, THE COMPLICATED IMPORT TARIFF STRUCTURE AND
SIGNIFICANT DELAYS IN VAT REFUNDS WERE ALSO AMONG THE ISSUES.

15.27 SL IS A ALREADY A RECOGNIZED TRANSSHIPMENT PORT. WITH FULL RANGE

OF CONTAINER SERVICES BUT TERMINALS ARE FAST REACHING CAPACITY. THE
PORT HAS DIFFICULTY IN POST MAX CONTAINER VESSELS BUT IT SHOULD BE
REMEDIES THROUGH THE SOUTH HARBOR, OF LOAD CONTAINER YARDS EXISTS BUT
NOT OPTIMIZED, THERE ARE NO INLAND DRY PORTS15.48 CUSTOMS HAS MADE
PROGRESS BUT NEED FURTHER IMPROVEMENTS IN ELECTRIC DATA INTERCHANGE.
THERE IS NO SINGLE ELECTRONIC WINDOW IN SRI LANKA16.00 OTHER COUNTRIES
ARE MOVING IN DIRECTION, 16.06 A RAIL CONNECTION TO THE PORT EXIST BUT
NOT USED, PUTS SRI LANKA FAR BEHIND TO OTHER COUNTRIES16.12

THE REPORT WHICH HAS BEEN CONDUCTED WITH THE PARTICIPATION OF KEY
STAKEHOLDERS OF THE SECTOR INCLUDING THE PRIVATE SECTOR HAS IDENTIFIED
AREAS OF IMPROVEMENT INSIDE THE PORT.

17.16
REGARDING PORT, SPACE PROBLEMS, TOO MANY CHECK POINTS, LONGER WAIT
TIMES. DELAYS IN LOCATING LCL CARGO AND HANDLING MULTIPLE COUNTRY
CONSOLIDATION CARGO DUE TO POOR PLANNING SYSTEM. DAMAGE TO LCL CARGO
DURING RESTUFFING AND RELOCATION AND HIGH TERMINAL CHARGES A COMMON
TOPIC17.39

Card in
THE STUDY HAS RECOMMENDED THE CREATION OF A CUSTOMER FRIENDLY
INFORMATION SYSTEM, ENHANCING COOPERATION AMONG GOVERNMENT AGENCIES,
ADOPTING A POLICY TO REDUCE TERMINAL HANDLING CHARGES AND SPEEDING UP
VAT REFUNDS WHICH WILL HELP MAKE COLOMBO A GLOBAL LOGISTICS HUB.

APART FROM THAT ESTABLISHING TARGET TIMES FOR EXPORT IMPORT ACTIVITIES,
ENHANCING CUSTOMS RISK MANAGEMENT FUNCTIONS, AND COMBINING MANY CUSTOMS
SPECIAL EXAMINATION UNITS INTO ONE UNIT ARE AMONG OTHER KEY
RECOMMENDATIONS.

ENDS.
RECOMMENDATION TO MAKE COLOMBO A LOGISTIC HUB

- Create a Customer Friendly Information System

- Enhance Cooperation among Government Agencies
- Adopt a Policy to Reduce Terminal Handling Charges
- Speed Up Vat Refunds
- Establishing Target Times For Export Import Activities
- Enhancing Customs Risk Management Functions
- Combining Many Special Custom Examination Units into One
Unit
SEGMENT: MAIN
DATE: 22ND NOVEMBER 2007
REPORTER: RIYAD R.
EDITOR: ANOUK T.
SLUG: BOND MARKET

SRI LANKA UNLIKE OTHER ECONOMIES IN THE REGION DOES NOT

POSSESS AN ACTIVE BOND CORPORATE MARKET.

DUE TO THIS SITUATION MOST CORPORATE ENTITIES SOURCE THEIR

FUNDS PRIMARILY THROUGH THE BANKING SYSTEM WHICH IS A
COSTLIER AFFAIR FOR BUSINESSES.

A 2 DAY WORKSHOP ON CAPACITY BUILDING FOR DEVELOPMENT OF

SRI LANKA’S BOND MARKET WAS JOINTLY ORGANIZED BY THE
CENTRAL BANK AND THE UNITED NATIONS ECONOMIC AND SOCIAL
COMMISSION FOR ASIA AND THE PACIFIC TODAY.

ROLL VTR

Super

Ajith Nivard Cabraal

Governor
Central Bank of Sri Lanka

Dr. Hong Bum Jang

UNESCAP

TAG

‘BOND MARKET’
VOICE OVER / BOND MARKET / RIYAD / 22ND NOVEMBER 2007 / VTR

SRI LANKA’S DEBT MARKET IS PRIMARILY DOMINATED BY

GOVERNMENT SECURITIES SUCH AS TREASURY BILLS AND BONDS.

THE CONCEPT OF CORPORATE DEBT IS ALMOST AN UNKNOWN ENTITY

IN SRI LANKA AS MOST OF THE LOCAL CORPORATE DEBT IS ALMOST
ENTIRELY SUBSCRIBED BY THE BANKING SECTOR.

AN ACTIVE LOCAL BOND MARKET IS IMPERATIVE FOR A SOUND

FINANCIAL SYSTEM FOR A NUMBER OF REASONS SUCH AS REDUCING
CONSUMER MISMATCHES, DIVERSIFYING SOURCES OF DEBT FINANCING
WITHIN THE ECONOMY, REDUCING INTERMEDIARY COSTS AND
PROVIDING GREATER INVESTMENT OPPORTUNITIES FOR THE RETAIL
INVESTORS AND CORPORATE ENTITIES.

GOVERNOR OF THE CENTRAL BANK AJITH NIVARD CABRAAL SPEAKING

AT THE EVENT STATED THAT THE GOVERNMENT HAS TAKEN THE LEAD
ROLE IN LIBERALIZING THE DEBT MARKET.

PRESIDENT RAJAPAKSE IN HIS BUDGET 2008 SPEECH STATED THAT

HE ENCOURAGES COMPANIES TO SEEK THEIR FINANCING NEEDS FROM
FOREIGN SOURCES.

13.28 CABRAAL
THE CORPORATE SECTOR THAT WHAT WE ARE TALKING ABOUT TODAY,
IF THAT CORPORATE SECTOR IS TO GO INTO THE BOND MARKET
THEIR MUST BE A LEAD GIVEN BY THE GOVERNMENT TODAY E
TALKING ABOUT INCREASING CAPACITIES FOR CORPORATE TO MOVE
INTO THE BOND MARKET BUT COULD THEY DO THAT FOR THE FACT
THAT THE GOVT. HAD IN FACT GONE AHEAD AND DONE THIS BOND
ISSUE. 13.50 SO THESE ARE LESSONS FOR US TO LEARN 13.53
THESE NEED TO BE DONE FOR THE NEXT STAGE TO DEVELOP. 13.59

SRI LANKA’S LARGEST FIXED LINE TELEPHONE OPERATOR, SLT

ISSUED A 100 MILLION DOLLAR 5 YEAR BOND IN 2004.

HOWEVER EXPERTS SAY SRI LANKA’S BOND MARKET HAS SOME

CATCHING UP TO DO TO REACH DESIRABLE STANDARDS.

5.50 UNESCAP
NUMEROUS STEPS HAVE BEEN TAKEN TO DEVELOP THE GOVT. BOND
MARKET IN RECENT YEARS, HOWEVER THE BOND MARKET SHOWS
LOPSIDED DEVELOPMENT WITH A SLOW PROGRESS OF THE LOCAL
CORPORATE BOND MARKET. 6.05 THERE ARE NO. OF CONSTRAINTS
AND HINDERING FACTORS THAT IMPEDE BOND MARKET DEVELOPMENT.
IN THIS REGARD THE FUTURE DEVELOPMENT OF THE BOND MARKET
WILL BE DETERMINED BY DESIGNATING PROGRESS EFFECTIVELY TO
ADDRESS THIS CONSTRAINTS AND HINDERING FACTORS 6.22 OF
COURSE MAINTAINING A STABLE MACRO ECONOMIC CONDITION WILL
BE A PRE-REQUISITE FOR DEVELOPMENT 6.30

ENDS/
SEGMENT: CORPORATE
DATE: 22/11/07
REPORTER: NK
SLUG: INTEL – VTR

INTEL, THE WORLD LEADER IN SILICON INNOVATION HAS LAUNCHED

16-SERVER AND HIGH-END PC PROCESSORS USING AN ENTIRELY NEW
TRANSISTOR FORMULA WHICH ALLEVIATES WASTEFUL ELECTRICITY
LEAKS.

THESE INTEL CORE 2 EXTREME AND XEON PROCESSORS WERE

LAUNCHED IN SRI LANKA IN COLOMBO LAST EVENING.

ROLL VTR

‘INTEL INNOVATION’

SUPER

Sharad Parmar
Retail & Channel Marketing Manager
Intel – Asia Pacific

IN:
OUT:
VOICE OVER – INTEL

THE NEW 45 NANOMETER PROCESSORS BOAST NEARLY TWICE THE

TRANSISTOR DENSITY OF PREVIOUS CHIPS BUILT ON THE COMPANY’S
65 NANOMETER TECHNOLOGY – THAT IS UP TO 820 MILLION
TRANSISTORS FOR QUAD-CORE PROCESSORS, EACH USING INTEL’S
NEW FORMULA.

INDIKA DE ZOYSA, REGIONAL MANAGER INTEL SRI LANKA SAID THE

MOVE FROM 65 NM TO 45 NM INVOLVES MORE THAN JUST A
SHRINKING OF CURRENT CHIP DESIGNS.

THESE NEW PROCESSORS ARE ENERGY EFFICIENT, BETTER FOR THE

ENVIRONMENT AND COST EFFECTIVE.

V/C – PARMAR

ENDS/
SEGMENT: MAIN
DATE: 22/11/07
REPORTER: NK
TRO PROSCRIBED: CARD

THE GOVERNMENT HAS DECIDED TO PROSCRIBE THE TAMIL

REHABILITATION ORGANIZATION IN SRI LANKA.

CARD IN: GOVERNMENT BANS TRO

THE CABINET HAS GRANTED ITS APPROVAL TO THE MOVE

FOLLOWING A MEMORANDUM SUBMITTED BY FOREIGN
AFFAIRS MINISTER ROHITHA BOGOLLAGAMA.

THE CABINET HAS ALSO GIVEN THE GO-AHEAD TO MAKING

AN APPEAL TO FOREIGN GOVERNMENTS, INTERNATIONAL
ORGANIZATIONS AND INGO’S THAT HAVE A TRO PRESENCE
IN THEIR COUNTRIES OR HAVE RELATIONSHIPS WITH THE TRO, TO
TAKE ACTION AGAINST THIS ORGANIZATION AND TO CEASE ANY
TRANSACTIONS.

LAST YEAR THE CENTRAL BANK OF SRI LANKA FROZE BANK ACCOUNTS
OF THE TRO.

THE GOVERNMENT ALLEGES THAT THE TRO UNDER THE GUISE OF A

CHARITY ORGANIZATION COLLECTED AND DIRECTED FUNDS TO THE
LTTE FOR PROCUREMENT OPERATIONS.

READ ON..
SEGMENT: MAIN
DATE: 22ND NOVEMEBR 2007
REPORTER: RIYAD R.
EDITOR: ANOUK T.
SLUG: SLT- DRY

THE SUPREME COURT TODAY POSTPONED ITS DECISION ON THE NIPPON

TELECOM/MAXIES CASE TODAY TO FEBRUARY 25TH 2008.

EARLIER THIS YEAR MEMBER OF PARLIAMENT SIRIPATHI SOORIARACHCHI FILED A

PETITION AGAINST NIPPON TELECOM OF JAPAN AND THE GOVERNMENT OF SRI
LANKA AGAINST THE SALE OF NTT’S SHARES TO MAXIES OF MALAYSIA.

APPROXIMATELY 50% OF SLT SHARES ARE OWNED BY THE GOVERNMENT OF SRI

LANKA WHILE NTT OWNS 35%, WHILE 15% OF EQUITY IS OWNED BY THE PUBLIC.

SLT SHARES OPENED THE DAY AT 34 RUPEES AND 75 CENTS AND CLOSED 25 CENTS
DOWN.

READ ON
STOX

THE MARKET PICKED UP FROM YESTERDAY TO WITNESS AN ACTIVE

DAY OF TRADING, WITH INTEREST RIFE ON DIALOG.

8 CROSSINGS TOOK PLACE ON DIALOG WITH A TOTAL OF 28 MILLION

SHARES BEING TRADED AT 22 RUPEES EACH.

KOTAGALA ALSO SAW A CROSSING OF 1.75 MILLION SHARES AT

32.50.

419,600 SHARES OF CEYLON LEATHER PRODUCTS CHANGED HANDS AT

75 RUPEES WHILE SLT EXPERIENCED TWO CROSSINGS OF 500,000
SHARES AND 300,000 SHARES EACH AT 35 RUPEES.

VOLUMES WERE LED BY DIALOG TRADING 28.97 MILLION SHARES,

CEYLON LEATHER PRODUCTS TRADING 7.17 MILLION SHARES AND
CEYLON GLASS TRADING 6.14 MILLION SHARES.

DIALOG WAS ALSO THE MAIN CONTRIBUTOR TO TURNOVER INJECTING

637.19 MILLION RUPEES. CEYLON LEATHER PRODUCTS AND E-
CHANNELING CAME NEXT IN LINE.

FOREIGN BUYING WAS AT 1.02 MILLION WHILE FOREIGN SELLING

WAS RECORDED AT 705.94 MILLION.

THE ALL SHARE PICKED UP BY 20.92 POINTS TO END AT 2,598.96

WHILE THE MILANKA ALSO GAINED 26.41 POINTS, CLOSING THE DAY
AT 3,441.83.

TURNOVER WAS AT 1,456.7 MILLION RUPEES.

THE TOP GAINERS TODAY WERE MTD WALKERS, ALUFAB, CEYLON

LEATHER, WALK AND GREIG AND RICHARD PEIRIS, WHILE HEADING
THE LOSERS WERE NUWARA ELIYA, TANGERINE, HORANA, MADULSIMA
AND VIDULLANKA.

LANKA CERAMIC LTD MADE A DIVIDEND ANNOUNCEMENT FOR THE DAY.

LET’S TAKE A LOOK AT TODAY’S FOREX RATES!