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The Colombo Stock exchange recorded its highest annual growth in 2001 after seven years to become one of the best performing equity markets in the world. This was a positive signal to further boost investor confidence which regained after the UNF government assumed office. Some of the other major highlights of 2002 are the Central bank reducing the interest rates.

The Repurchase rates and reverse repurchase rates were reduced by 225 basis points by the Central Bank.Repurchases fell from 12-9.75 percent while reverse repurchase rates fell from 14-11.75 percent in line with declining inflation rates and stability in the foreign exchange markets.

Signing of the MOU between the government and the LTTE also sent positive signals both economically and socially.

During the first half the business community were disturbed by the delay in appointments but it was ironed out. Some of the other highlights during the year were the announcing of Initial public offerings of Apollo, Tess Agro and Sri Lanka Telecom(SLT). With the listing of Lakdhanavi the power and energy sector was introduced while the other new sectors are agriculture and Telecommunications.The business sector expressed worries about the slow progress of reforms and privatisation. January

*Euro become the single currency for 12 of EU's 15 member states.

*US gave china permanent normal trading relations.

*MBSL midcap index revised. It was launched in 1999.

*Samudra Cement open the Rs 500 million Cement bagging plant at the CMB port.

*Unilever Ceylon subsidiaries premium exports and Cey Tea Agrapatana signed a collective agreement with the staff and workforce unions.

*LOLC announce setting up of LOLC Finance Company Ltd.

*City Hoteliers and professional conference organisers sign a landmark agreement to charge US$ 75 net as minimum room rate per night.

*Bangladesh devalue Taka by 1.5790 against the US$.

*Laugfs Lanka Gas Ltd slash the price of a domestic cylinder by Rs 50 to Rs 359.

*Government request banks to halt parate executions.

*Seylan Merchant bank announces debenture issue.

*Expert team from London arrive for final audit on war risk surcharge.

*NSB moves to accept foreign currency notes and travellers cheques.

*NSB launches " express Housing Loans

February

*The apparel sector together with the government hired Sandler Travis and Rosenberg to lobby for greater market access for Sri Lankan garments in the US.

*Peoples Bank begin crediting interest monthly on savings schemes.

*SLT launch project Hope for Jaffna.

*IPO to raise Rs 8 million for Touchwood.

*The price of tyres reduced by 5% by the Sri Lanka Tyre Retreaders Association.

*Commercial banks given the green light by the Central Bank to operate as primary dealers for government securities.

*LPG Powered Three Wheelers launched by shell Lanka together with David Peiris Motor Company.

*Workshop on Deregulation

*Rs 16 billion deal to boost SME's signed by Asian Development Bank(ADB) and government.

*Non essential lighting banned by Government.

*Rs 110 million allocated for international marketing of Ceylon Tea.

*Rs 223 million public share issue by Asha central Hospital.

*The Lipton Brooke Bond Value added Tea Factory at Wattala owned by Unilever close down.

*Government and LTTE sign the MOU

*Kahagolla Workshop reactivated by Latec.

March

*First ever high powered trade delegation from Latvia visit Sri Lanka.

*Asian Development Bank (ADB) President Tadao Chino visit Sri Lanka.

*CB approve two development banks for the North.

*OPEC fund provides $ five million for rural development.

*ADB signs landmark growth oriented Poverty Reduction Partnership agreement.

*NSB launches Sthree the exclusive account for women.

*IPO for e-channelling to raise Rs 100 million.

*Winners of the Business Today Top 10 awards announced.Commercial Bank, Hayleys, CTC, JKH, HNB, Distilleries co of Sri Lanka,NDB, Caltex, Nestle Lanka and DFCC.

*Financial Sector Reforms Conference.

*CB cuts interest rates by 50 basis points. Overnight repurchase rates (12-11.50 points) Reverse Repurchase rates (14-13.50).

* The first budget of the UNF government 2002(highlights)

* VAT in GST out.

*Payee tax relief for middle income groups.

*No free pensions for new entrants.

*freezing of public sector recruitment..

*Major incentives for private sector foreign investments.

*Founder of Sampath and MERC banks and Governor Central Bank N. U Jayawardena pass away.

April

*First meeting of the Young Think Tank appointed by Prime Minister on finacial Sector reforms.

*Kandalama wins worlds first award for service excellence.

*NTB the banking arm of JKH commence negotiations with American Express Bank to purchase banking and foreign Exchange services business in Sri Lanka.

*The syndicated Facility agreement and the amendments to the Security documents of the ACE power Generation Anuradhapura signed by the bank promoters HNB and BOC and Chairman Aitken Spence Prema Cooray.

*National Productivity Policy web portal launch.

*The IMF approves release of US$60 million to Sri Lanka under the US$253 million Stand By Arrangement(SBA)

* The sale of 150 room Club Bentota formerly Robinson Club Bentota by SLIC attracts 18 parties.

*Royal Ceramics start Rs 500 million modern Tile Plant.

*CB releases Annual report 2001.

May

* Sri Lanka Insurance Corporation pays Rs 7.4 million life claim.

*Trevin Jayasekera Group financial controller Aitken Spence joins Phoenix Ventures as Executive Director and Financial Controller.

*HNB launch Prime Elite Credit Card system.

*Government Lift power cuts.

*Deputy Managing Director IMF S. Sugisaki Visit Sri Lanka.

*CPC increases fuel prices to avoid Rs 3.5 billion loss.

* Ceylinco opens 11 group branches in Jaffna.

June

*Ravi Karunanayake minister of Commerce and Consumer Affairs. leads a team to India to review FTA.

*World bank South Asia Vice President Ms Meiko Nishimizu visit Sri Lanka for the Sri Lanka Development Forum.

*HSBC opens branch in Maldives.

*Apollo Hospital with 350 beds opens to the public.

*Hambantota Port feasibility report in one year.

* Foreign Investment worth Rs 500 million sought by Lanka cement.

July

* The latest business venture of CIC is Animal Feed. Plan to aquire Nutrena pvt Ltd a joint venture between Cargills Inc of USA and Bahira Farms Ltd, by paying Rs 130 million.

*Lanka Tiles and Ceradec joins together.

*15 bid for bus companies.

*Launch of national e-commerce gateway.

*CB cuts interest rates by 100 basis points. Repurchase rates from 11.50-10.50 and reverse Repurchase rates by from 13.75-12.75.drop by 50 points to

*Bartleet join hands with Life Insurance corporation of India to develop insurance.

August

*Oman Air resumes flights to Sri Lanka.

*South East Asia's largest carrier Malaysian Airlines begin direct flights.

*Leather, Footwear and Cermic industry unveil five year plans to improve competitiveness.

*Ceylon Brewery to invest Rs 350 million in Lion Brewery.

*Prima invest Rs 220 million to improve flour distribution.

*ADB to grant a loan of US$ 600 million.

*IT guru Narayana Murthy visit Sri Lanka.

*Yuga Dekma Mega Industrial Exhibition begin at Trincomalee.

*Estate crisis ends with the promise of a wage hike. It is an agrement for two years. The plantation unions requested Rs 151 and got Rs 147.

September

*Government introduce new policy for telecommunications.

*CMC launch night economy.

*INFOTEL declared by Government as a national IT event.

* Export Exhibition and Investor forum Intrad 2002

*Country reserves achieves highest in two years with the release of the last tranch of the SBA by IMF.

*Sri Lanka gem and Jewellery show Facets 2002.

*ADB grant a loan of $20 million to boost inland fisheries.

*Shoe manufacturers gets relief under cabinet approval.

* Daily flights resumed by Lionair to Jaffna.

*Tea sector gets $20 million loan from ADB.

*Six parties respond to SLIC issue.

*Habib Bank AG Zurich local operation taken over by HNB.

October

*Single country exhibition in Japan to celebrate 50 years of diplomatic ties between Japan and Sri Lanka sponsored by JETRO.

*The US$ clearing system comes into operation.

*Electricity reform bill approved.

*60 percent of Mobitel taken over by SLT.

*Rural Economic Resuscitation fund to boost the rural economy launched with Rs 100 million .

*Export of metal scrap banned by the cabinet.

*Regaining Sri Lanka the key policy document of the government launch.

*NSB launch Friends.

*Unilever Asia judge Sri Lankan Lux soap best in Asia.

*Signing of Pakistan Sri Lanka FTA.

* first ever national ceremony for licensed Foreign employment Agencies.

*Voluntary retirement scheme by Sri Lanka Ports Authority approved by Treasury.

* CB suspends activities of Pramuka Bank.

November

*IBIS Transport consultants and trans Bus International together with their partners LATEC and Free Lanka invests Rs 1.5 billion in six bus companies.

*2nd budget of the UNF Government.

Highlights

*Incentives to promote competitiveness in selected sectors

*Creation of a human resource endowment fund

*Promote new investments and innovative enterprises by offering concessions to venture capital companies

*Develop corporate bond market and mandatory credit rating of deposit taking institutions

*Provide an Indian credit line to import machinery.

*Enable unit trusts to invest abroad

*Road tax

*Continued commitment to labour reforms

*Curtail consumption and manufacture of illicit alcohol

*ADB grants $130 million loan for the power sector.

*Dirigamana the new scheme to introduce industrialisation to the provinces by Industrial Minsitry.

* Asker S. Moosajee pass away.

*Aruna loan scheme by Agriculture and Live stock ministry to boost multi seasonal crops.

*$15 million YKK zips plant at Seethawaka.

*SLT IPO announcement. Government divest 12 percent of shares at a price of Rs 15 per share.

*Giovanni Bulgari and chief buyer Ms Lucia Silvestri visit to get first hand experience in the gem industry. information.Bulgari is a representative of the Bvlgari Spa is rated among the top three jewellers along with Tiffany and Cartier.

*Sahanya loan scheme to assist SMEs to obtain low cost loans.

*Croatian President Stjepan Mesic visit Sri Lanka.

*Visit of US Deputy Trade representative Jon Huntsman.

*Apollo IPO oversubscribed. It offered 20,554967 shares at a price of Rs 15 per share to raise Rs 308 million.

*eSriLanka smart people smart island the ICT policy of the government.

*Tess Agro IPO opens. Offered 2.5 million shares at Rs 10 each.

*CB cuts interest rates. repurchase rates by 75 basis points to 9.75 percent and reverse repo rates by 100 basis points to 11.75%.

*Corporate battle of RPC and Asia Capital ends with the Peiris family and their nominees steps down pave the way for Dr Yaddehige.

*Raja Hewabowela Managing Director and CEO Nippolac Group entrepreneur of the year.

December

*Udaya Nanayakkara takes over as Chairman of Pramuka with the voluntary step down of Rohan Perera.

*SLT IPO oversubscribed. IT will raise Rs 3.25 billion for the state coffers. First ever national conference on fixed income securities organised by the Primary Dealers Association.

*Sathosa Launch savers club card.

*BIMSTEC EC meetings showcase more opportunities for Sri Lanka.

*BOC Sampath Link the ATM network.

*Visit of William Lash Assistant secretary US department of commerce.

*CB announces the liquidation of Pramuka.

*Lanka IOC pvt Ltd the wholly owned subsidiary of Indian Oil Corporation(IOC) begins takeover of 100 oil stations. its investemnet in Sri Lanka is US$ 62 million.

*Government launch 3b low interest housing loan scheme.

Performance of the Colombo Stock Exchange.

*The Colombo Stock Exchange(CSE) recorded its highest annual growth in 2001 in seven years. In 2001 ASPI has gained by 38.7% and MPI by 17.6.% making CSE one of the best performing equity markets in the world .

*CSE penned on a negatve note ASPI declined by 10 points to close at 610.7 while MPI dipped by 20 points to close at 1011.9.

*MPI dipped below 1000 mark and closed at 992.9.

*CSE introduce the power and energy sector with the listing of power generation Co Lakdhanavi Pvt Ltd.

*The good news of appointments and the hope of peace push the indexes up. MPI rose by 26.7 points to 916 while ASPI rose by 17.2 to 566.7.

*Stock market achieve the 800 point mark in five years. ASPI 807.3, MPI 1386. Turnover Rs 205 million. 

Appointments

*Nihal Welikala CEO NDB

*Parakrama Dissanayake Chairman Sri Lanka Ports Authority

*Prema Cooray Chairman Aitken Spence and Company.

*Asita Talwatte Chairman ICASL.

*Lal Nanayakkara Chairman Peoples Bank.

*Daya Muthukumarana Chairman Fisheries Corporation.

*Mano Tittawella Deputy Chairman International Division Ceylinco Consolidated.

*Daya Palpola Chairman Sri Lankan Airlines.

*Bodhisiri Ranasinghe Chairman Ceylon Hotels Corporation

*Dr Hans Wijayasuriya CEO Dialog Chairman Arthur C.Clarke Centre for Modern Technologies.

*Thilanga Sumathipala Chairman Sri Lanka Telecom.

*Dr Bandula Perera Chairman Industrial Development Board.

*Dinesh Weerakkody -Chairman ETF.

*Tudor Munasinghe Chairman National Engineering Research and Development Centre.

*Ratna Sivaratnam Chairman EDB and Sri Lanka Conventions Bureau.

*Michael Mack Chairman Securities and Exchange Commission.

*Susantha Fernando -Chairman Sri Lanka Bureau of Foreign Employment.

*Lionel De Silva - Chairman Ceylon Fisheries Harbour Corporation.

*Ajantha Madurapperuma Chairman Primary Dealers Association. Themiya Hurulle Chairman Telecommunication Regulatory Commission.

*Sudharshan Senaratne CIMA President.

*Peter Harrold World Bank Country Director.

*Manel De silva Head Commerce Department.

*Janaka Kumarasinghe President IPM.

*Sumithra Munasighe Chairperson BOC

*Ramesh Ramanathan-MD Kelani Associated Holding (CEAT).

*Renton De Alwis Secretary General Ceylon Chamber of Commerce.

*S.N.P. Palihena GM BOC

shares and movements

*EPF buys 4.5 percent of aitken spence for Rs 90 million

*Government gets Rs 111 million from selling off 19.9 percent stake in the two plantation firms Talawakele and Malwatta Valley Plantations

*Apparel Exporter Readywear industries increased its stake in United Motors to 84 per cent.

* Dr Sena Yaddehige buys 27 percent stake in Richard Peiris and Co for Rs 569 million

*Ariyseela Wickremanayake Chairman Master Divers purchase 53 percent of Pelwatte Sugar Industries Ltd for Rs 300 million.

*Ravi Thambiah Hotelier and business leader bought 9 percent stake in Royal ceramics for Rs 80 million

*Sampath Bank Chinkara to take 40 percent stake in Vanik Bangladesh.

*DFCC announced 50 Percent dividend for the financial year ended March 31,2002.

*Phoenix Ventures increased its stake in the group venture Kuruwita Textile Mills upto 38.75 percent.

*HNB purchase 2% stake in DFCC. Payed Rs 140 million to become second biggest shareholder with 12.6 percent stake.

*Lighthouse hotel overcomes crisis year with Rs 21 million profit.

*Ceylon Guardian Group profit ups 26.7 per cent to Rs 195 million. *Peoples Bank records Rs 308 million profit.

*George Ondaatjie invest Rs 28 million to buy 7.6 percent stake in Light House Hotel.

*Yaddehige buys 20 percent of Asia Capital and 3 percent of Richard Peiris for Rs 350 million.Hayleys invest Rs 746million in 2001/2002.

*DFCC records a net profit of Rs 787 million. Share Option plan for senior management announced.

*LOLC achieve a profit of Rs 215.5 million.

*Arisaig increase ownership in Aitken Spence.

*Club Bentota bought for Rs 312.2 million by the consortium Ceylon Tours, SS Impex, and Allson International Hotels.

* Deutsche Bank's personal and private banking portfolio bought over by NTB.

*Net profit of JKH in the first quarter of 2002 increases by 18 percent to Rs 255 million.

* Asia Capital sells 23 percent of LOLC for Rs 277 million.

*NDB shares held by Dhammika Perera is increased by 1 per cent to to 10 percent for Rs 55 million.

*25 percent Asian hotels bought by global Numismatic giant for rs 420 million.

* BOC achives a profit of Rs 893 million. Fitch Rating Lanka assign a SLAA rating for the bank.

*Lanka Marine Services Ltd the country's bunkering monopoly bought over by JKH for Rs 1.2 billion.

LB Finance to raise Rs 100 million debentures.

*DFCC record a post tax profit of Rs 268 million. Acquires vaniks 240 perch land for Rs 187 million.

*2.5 percent of commercial bank bought over by Raj Rajaratnam for Rs 200 million.

*7 Percent of Hayleys bought by Rajaratnam for Rs 420 million.

* Hayleys record a profit of Rs 123 million

*HNB announce Rs 2billion debenture issue.

*The balance 39 percent of NIC bought over by Janashakthi for rs 287.5 million.

*HNB debenture issue oversubscribed.

*SLT declare a 3 per cent dividend.

*Aravinda De silva invests in the stock market. Purchased 20,000 NDB shares and sold 100000 lighthouse shares.

*Singer Sri Lanka to raise Rs 300 million debentures.

* Raj Rajaratnam introduced two $ 5 million funds to invest in Sri Lankan equities. Board members are Rajaratnam, Ken Balendra, Lal Jayawardena, James Mather and Hemaka Amarasuriya.

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