Mahindra to expand business in Sri Lanka

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Mahindra to expand business in Sri Lanka

Written by News TM

Thursday, 19 August 2010 08:52

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The Mahindra group is all set to expand its business in Sri Lanka by venturing into hospitality and finance.

Group Vice-Chairman and Managing Director Anand Mahindra, who met President Mahinda Rajapaksa and other officials in the island nation, said Sri Lanka was poised to register a double digit growth in the post-conflict era.

“The Mahindra group has a long and enduring association with Sri Lanka which is a strategic market for us. As a diversified federation of companies with a presence in several industries, we see immense

opportunities for investment in the country. Over the years, our vehicles and tractors have acquired a reputation as fuel efficient, tough and rugged workhorses and we now look forward to expanding our footprint in the emerald isle, as it takes a step towards greater economic progress,'' said Mr. Mahindra.

Mahindra has already established a base for itself in Sri Lanka where it has been selling its range of tractors and utility vehicles for over a decade. Its automotive sector has sold over 4,000 vehicles in Sri Lanka since its market entry.

“In fact, we are the market leader in the plus one tonne pick up category. India's No. 1 compact truck, the Mahindra Gio, which was launched in Sri Lanka a few months ago, has evoked a good response. In keeping with our long-term plans for this region, we are soon going to enhance our current product portfolio in the market with the launch of several new products, including the Maxximo, a technologically modern sub-1 tonne pick-up and heavy commercial vehicles. We are also studying the possibility of introducing an electric car — the Mahindra Reva — in Sri Lanka in future. Our channel partner for vehicles, Ideal Motors, has created a countrywide sales and service network and has also expanded operations in North and East areas of the country.''

Mr. Nalin Welgama, Chairman, Ideal Motors (Private) Ltd., automobile distributor of the Mahindra group in Sri Lanka, in his remarks said his company was happy to be associated with Mahindra in Sri Lanka where it was a well respected brand name.

Source-Thehindu

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2018 Commonwealth Games: Sri Lanka or Australia. Who will get it?

When the vote is taken in St Kitts today on who will host the 2018 Commonwealth Games, the result will have vastly different consequences for the two competing countries.

If Australia’s Gold Coast gets the nod it will confirm the country’s reputation as one of the world’s sporting leaders.

But should the decision got to Hambantota in Sri Lanka, it will mean a massive investment in infrastructure and jobs as well as providing a positive spotlight on a country that is slowly emerging from a 26-year-long civil war.

The stakes are very high indeed, with some estimates of possible commercial activity in the region of £2bn.

Hambantota was devastated by the 2004 tsunami, and the Sri Lankan government has committed to spending about 60 per cent of the required $1.71bn needed to build the necessary infrastructure.

When Manchester hosted the Games in 2002, the city’s council said they generated £600m of public investment, 6,300 full time jobs, a £22m boost to local business and 300,000 extra visitors to the city.

As a legacy, the stadium was then leased to Premiership football club Manchester City.

On top of that, it claimed that the city was then catapulted to second in the UK tourism league table.

And Sri Lanka wants some of that action. Ajith Nivard Cabraal, co-chairman of the Hambantota 2018 bid team and Governor of the Central Bank of Sri Lanka, said that hosting the Commonwealth Games is an integral part of the country's plan to rebuild a unified nation.

The responsibility for selecting the host city for 2018 rests with the 71 member Commonwealth Games Associations (CGAs). Glasgow will host the 20th Commonwealth Games between 23 July and 3 August 2014.

When the vote is taken in St Kitts today on who will host the 2018 Commonwealth Games, the result will have vastly different consequences for the two competing countries.

If Australia’s Gold Coast gets the nod it will confirm the country’s reputation as one of the world’s sporting leaders.

The stakes are very high indeed, with some estimates of possible commercial activity in the region of £2bn.

Sri Lanka tourist arrivals hit new record high in 2011

Sri Lanka's tourist arrivals in the first 10 months of the year has surpassed 2010's record as visitors to the island nation has continued to rise every month on a year-on-year basis since a 25-year civil war ended in May 2009.

Tourist arrivals in the first ten months of 2011 jumped 34.2 percent to 667,569 from a year earlier, higher than Sri Lanka's record annual tourist arrivals of 654,476 reached last year.

The arrivals rose 32.8 percent in October from a year earlier to 69,563.

The government is targeting annual revenue of $2.75 billion by 2016 from 2.5 million expected visitors attracted by Sri Lanka's beaches, hills and religious and historic sites, while aiming for $3 billion in foreign direct investment.

Sri Lanka has forecast 20 percent growth in visitor arrivals this year to more than 780,000 people. Last year, the industry grew at 46 percent. The island's tourism industry drew $1.2 billion for investment in the first half of 2011.

Tourist arrivals in the first ten months of 2011 jumped 34.2 percent to 667,569 from a year earlier, higher than Sri Lanka's record annual tourist arrivals of 654,476 reached last year.

The arrivals rose 32.8 percent in October from a year earlier to 69,563.

Lanka funds project to construct roads in Maradhoo, Feydhoo

President Mohamed Nasheed and visiting Sri Lankan President Mahinda Rajapaksa today inaugurated a project in Addu to construct the roads of Maradhoo and Feydhoo.

In an exclusive interview with Haveeru after inaugurating the Sri Lanka-funded project, President Nasheed said a high-standard road would be created in the two islands within the next one year.

"It means the main road of Hithadhoo will be connected to this road, which will start from Feydhoo. Our aim is to establish a transport network by constructing this road, which will serve as the backbone of the network,” he said.

President Rajapaksa also inaugurated a monument, which depicts the culture of Sri Lanaka, established in Maradhoo.

The Sri Lankan President arrived in Addu this morning to attend the South Asian Association for Regional Cooperation (SAARC) Summit that will open tomorrow here in Addu.

President Mohamed Nasheed and visiting Sri Lankan President Mahinda Rajapaksa today inaugurated a project in Addu to construct the roads of Maradhoo and Feydhoo.

In an exclusive interview with Haveeru after inaugurating the Sri Lanka-funded project, President Nasheed said a high-standard road would be created in the two islands within the next one year.

Sri Lanka parliament approves asset acquisition act

COLOMBO- Sri Lanka's parliament passed controversial legislation on Wednesday that will allow the government to acquire enterprises or assets it deems underperforming or underutilised, despite concerns the bill could hit investment in the country.

The new law, passed by 122 votes to 46, will pave the way for the state to acquire 37 properties including from two listed companies it has said are underperforming.

Leases on the assets, mainly land, were given away or sold at a discount years ago either as an incentive for investment or with the aim that loss-making state-owned enterprises could be turned around.

President Mahinda Rajapaksa's ruling party has been strongly criticised by opposition parties and leading business chambers for seeking to expedite the bill without public discussion and without any opportunity for the properties' holders to argue against their listing.

"No asset under the bill is owned by the private sector," influential Economic Development Minister Basil Rajapaksa, a younger brother of President Rajapaksa, told parliament during Wednesday's debate.

"These assets are owned by the government and public. The acquisition is to utilise them to get the maximum benefits.

The government says the owners will be compensated, but it is not clear what criteria compensation would be based on.

"I assure that we will never acquire private assets," the minister added, promising to "protect investors both local and foreign".

The main opposition United National Party said during the debate that the bill would damage investor sentiment and discourage foreign investment in the $50 billion economy, hindering Sri Lanka's post-war development.

It said the "politicised" takeover bill included at least three profit-making firms.

NATIONAL INTEREST

The asset acquisition bill allows the government to appoint authorities to manage "in the interests of the national economy" what it has defined as one underperforming enterprise and 36 underutilised assets.

The opposition had argued that the bill violates the country's constitution and should not be debated while a ruling on a fundamental rights case against it is pending.

But Speaker Chamal Rajapaksa, the president's elder brother, overruled the protest and allowed the debate after Sri Lanka's Supreme Court informed parliament on Tuesday that the bill was consistent with the constitution.

Assets listed in the bill include Hotel Developers Lanka Plc , which runs the five-star Hilton Colombo hotel, and 6,300-hectare land owned by Pelwatte Sugar Industries Plc . Shares in Pelwatte Sugar have fallen 15.5 percent and those of Hotel Developers Lanka have dropped 27.1 percent since the market first got wind of the proposed bill on October 1.

Though Rajapaksa has said the bill will be a 'one-off' to acquire the specified properties, economists, investors, state officials and opposition politicians have warned it amounts to nationalisation and could damage business confidence.

"It will impact larger projects and potentially investors of large scale will be worried," Frontier Research economist Amal Sandarathne told Reuters.

The government has also been criticised recently after it cancelled a $500 million hotel deal with a Chinese firm over a land dispute and transferred a top Securities and Exchange Commission official. ,

A senior bank economist speaking on condition of anonymity said the way in which the bill had been introduced risked discouraging investors.

He said greater consultation was needed and suggested the government could have pursued other avenues, such as acquiring the assets under violation of contract if they had been underutilised.

Since the end of its 25-year civil war in 2009 Sri Lanka has been working to improve the investment climate, including making fiscal and tax reforms under the guidance of the International Monetary Fund.

Sri Lanka's foreign direct investment doubled in the first half of 2011 to $413 million compared with a year ago, mainly from Honk Kong based Shangri-La Asia for a luxury hotel in Colombo.

The new law, passed by 122 votes to 46, will pave the way for the state to acquire 37 properties including from two listed companies it has said are underperforming.

Sri Lankan Government Criticized for Targeting Several News Websites

Sri Lankan authorities are facing strong criticism for restricting media freedom after blocking several websites and requiring all news websites to register with the government. The government is defending its actions, saying it is not targeting freedom of expression.

The government says it blocked the websites because some of the reports they carried had damaged the character of the president, ministers and other senior officials.

Information and Media Minister Keheliya Rambukwella told VOA that they had received several complaints about the websites.

“We have a responsibility to the public of this country," said Rambukwella. "They do not give opportunity for other party to explain themselves, so they want to carry out that way which is not permissible. Their views can be expressed, certainly, but others views also have to be respected.”

The editor, Kelum Shivantha, of one of the websites which has been blocked, srilankamirror.com, has defended its news coverage, saying it always told both sides of the story.

A spokesperson for the editor, Shanika Jayasekera, says so far authorities have given them no reason for blocking the website.

“We have not been notified directly," said Jayasekera. "If we are doing anything wrong, we should have been notified, and if we have not been notified, how do we know that we are doing something wrong?”

Newspapers, radio and TV are already required to register with the government, but until now websites were spared.

Authorities say all websites dealing with Sri Lankan affairs must register or face legal action.

Critics say the government’s latest moves are tantamount to internet censorship.

Minister Rambukwella says authorities are not targeting media freedom but they want to be able to identify who operates the sites.

“You should know the people involved in it, and where they operate from, and where they upload these things, even to inform them we have no whereabouts of them," said Rambukwella. "Getting registered is not censorship.”

In the past, the government has been criticized for intimidating journalists critical of its handling of the war waged against the Tamil Tiger rebels. Opposition activists say the recent changes are just another tactic aimed at silencing critical voices.

Among those who believe that the government’s move will affect free debate and the right to dissent is the Director of Colombo’s Center for Policy Alternatives, Paikiasothy Saravanamuttu. He says some of the websites which have been blocked were critical of the government.

“Some suggestions are that websites may well be talking about internal divisions within the ruling family or indeed within the ruling party and they are concerned about that kind of information becoming more widespread," said Saravanamuttu. "There are others who suggest that they [government] may be concerned about any movement on the lines of what happened in the Middle East, some kind of nascent movement taking hold in Sri Lanka via the use of new technologies. It is difficult to put a finger on the precise reason beyond that of this tremendous urge to control.”

In a statement last week, the U.S. Embassy in Colombo said that freedom of expression, including unfettered access to internet news websites is a basic right which must be respected by Sri Lankan authorities.

The government says it blocked the websites because some of the reports they carried had damaged the character of the president, ministers and other senior officials.

Information and Media Minister Keheliya Rambukwella told VOA that they had received several complaints about the websites.

Italy: Umberto Bossi urges Silvio Berlusconi to quit

Italian Prime Minister Silvio Berlusconi's key coalition partner has urged him to step aside ahead of a crucial budget vote.

Northern League leader Umberto Bossi said he should be replaced by former Justice Minister Angelino Alfano.

Mr Berlusconi's majority has crumbled ahead of the vote, with several MPs defecting or saying they will rebel.

Until now he has insisted he has enough support to be able to continue to govern and has denied he will resign.

"We asked the prime minister to stand down," Mr Bossi told reporters on the margins of parliament.

However, when asked about the expected outcome of a normally routine vote on approving state finances, Mr Bossi told reporters: "Nothing will happen today."

Borrowing costs spike

Last month, the same measure was defeated in parliament by a single vote. Mr Berlusconi is reported to be short of the 316 votes needed to prove that he still has a majority.

But analysts say Mr Berlusconi may still win as the centre-left may abstain, allowing the essential measure to pass.

Were he to lose, he could either resign immediately or be ordered by President Giorgio Napolitano to call a confidence vote.

The BBC's Alan Johnston, in Rome, says it is certainly worth remembering that Mr Berlusconi is a master deal-maker and political infighter, having survived more than 50 confidence motions in the past.

But this crisis is different as it goes beyond Italian politics: - it is instead linked to the international money markets, which have lost faith in Mr Berlusconi's ability to fix the Italian economy, our correspondent says.

The markets are now forcing Italy to pay interest rates that could eventually ruin it, which means the pressure on Mr Berlusconi is extraordinary, he adds.

While Italy's deficit is relatively low, investors are concerned that the combination of Italy's low growth rate and 1.9tn euro (£1.63tn; $2.6tn) debt could make it the next to fall in the eurozone debt crisis.

Doubt about Italy's governance and its ability to repay its debts have sent the markets seesawing over the past two days.

On Tuesday, the cost of government borrowing spiked at a new record of 6.74% because of the crisis, just short of the 7% threshold at which Portugal and Ireland were forced to accept bailouts.

Italian Prime Minister Silvio Berlusconi's key coalition partner has urged him to step aside ahead of a crucial budget vote.

Northern League leader Umberto Bossi said he should be replaced by former Justice Minister Angelino Alfano.

Mr Berlusconi's majority has crumbled ahead of the vote, with several MPs defecting or saying they will rebel.

Until now he has insisted he has enough support to be able to continue to govern and has denied he will resign.

"We asked the prime minister to stand down," Mr Bossi told reporters on the margins of parliament.

However, when asked about the expected outcome of a normally routine vote on approving state finances, Mr Bossi told reporters: "Nothing will happen today."

Pakistan win Sri Lanka series as 3rd Test drawn

SHARJAH — Pakistan clinched the three-Test series against Sri Lanka 1-0 after the third and final Test ended in a draw at Sharjah stadium here on Monday.

Persistent rain wiped out play in the pre-lunch session -- a two hours and 35 minutes delay -- which left Sri Lanka with little time to enforce a win despite declaring their second innings at 181-6, setting Pakistan a target of 255 in a possible 61 overs.

By tea, Sri Lanka had taken three early wickets and were pressing for a win. Pakistan lost a further wicket when opener Taufiq Umar fell for 39, before they finished at 87-4 when umpires called off the match four overs early due to bad light.

Skipper Misbah-ul Haq (nine) and Asad Shafiq (seven) survived some anxious moments to salvage a draw.

Pakistan won the second Test in Dubai by nine wickets after the first in Abu Dhabi ended in a draw. The result kept Pakistan on the sixth ranking, as they needed a 2-0 victory to jump one place up and replace Sri Lanka on fifth.

Pakistan started positively before losing Mohammad Hafeez (13), Azhar Ali (seven) and Younis Khan (11) in the space of 37 runs.

Hafeez had struck a boundary in the first over by Chanaka Welegedara but fell in an unwise manner, run out after taking a sharp single as he failed to beat a direct throw from mid-wicket by substitute Lahiru Thirimanne.

Ali, who scored a maiden hundred in the second Test, was trapped leg-before wicket by left-arm spinner Rangana Herath before Younis played an uppish drive off Welegedara and was caught at mid-on.

Umar miscued a drive off spinner Suraj Randiv and was caught by Kumar Sangakkara at point, leaving Pakistan at 77-4.

Misbah said the victory meant a lot to Pakistan cricket, in the news for the wrong reasons after the spot-fixing scandal.

"It is a great win," said Misbah, who has not lost a series since taking over in October last year. "That (scandal) happened last year but we have kept our focus and this is a great win for us."

His counterpart Tillakaratne Dilshan said they tried their best to level the series.

"We were determined to win this Test, but Pakistan played better and deserved to win the series. We need to start a series in a better way," said Dilshan who has yet to win a Test since taking over as captain in May this year.

Sri Lanka, who have now gone 13 Tests without a win since beating India at Galle in 2009, had hoped to score some quick runs in order to set Pakistan a target and then get their rivals out for a victory.

But overnight rain and constant drizzle forced the umpires to keep the team away from the ground, part of which remained covered during the morning session.

When play finally resumed 35 minutes after lunch, Sri Lanka lost Kosala Kulasekara (seven) before declaring the innings at 181-6, after 2.2 overs of batting.

Opener Tharanga Paranavitana remained not out 76, made off 168 balls with five boundaries and a six.

Off-spinner Saeed Ajmal finished with 3-50 and paceman Umar Gul took 2-44.

The series highlighted Sri Lanka's batting frailties, especially in the first innings where they were bowled out for 197 and 239 in the first two Tests.

If not for Kumar Sangakkara's 516 runs in six innings at 86.00, Sri Lanka would have been hard pressed to save the two matches.

Pakistan can take consolation from the fact that they have not lost a single series since the spot-fixing and corruption scandal of last year which ended in jail terms for their former Test captain Salman Butt, Mohammad Asif and Mohammad Aamer.

Both teams will now start a five-match one-day series with the first game in Dubai on November 11. They will also play a Twenty20 in Abu Dhabi on November 25.

SHARJAH — Pakistan clinched the three-Test series against Sri Lanka 1-0 after the third and final Test ended in a draw at Sharjah stadium here on Monday.

Skipper Misbah-ul Haq (nine) and Asad Shafiq (seven) survived some anxious moments to salvage a draw.

Sri Lanka's asset acquisition act constitutional-court

COLOMBO - Sri Lanka's Supreme Court has decided that proposed legislation to acquire underperforming enterprises and underutilised assets is consistent with the country's constitution, parliament was told on Tuesday, despite some concerns it amounts to nationalisation.

The government's 'revival of underperforming enterprises and underutilised act' which was presented to the legislature on Tuesday, will see the state acquiring 37 private businesses it has defined as underperforming.

The bill is expected to be passed on Wednesday in parliament, where the government has a two-third's majority.

President Mahinda Rajapaksa referred the proposed act to the Supreme Court last week to see if it was consistent with the constitution, a procedure followed by the government before when introducing a new act in an urgent manner.

"The Supreme Court has informed its decision that, subject to the drafting of errors, the bill has not been found inconsistent with the constitution," Deputy Speaker Chandima Weerakkody told parliament, relaying the court's decision.

Weerakkody did not elaborate on what the court had referred as 'errors', but the leader of the house Nimal Siripala de Silva said the bill will be presented to the parliament on Wednesday with relevant corrections.

The government has said the new legislation was in the national interest and would provide effective management for listed one underperforming enterprise and 36 underutilised assets.

The properties include listed Hotel Developers Lanka Plc , which owns five-star Hilton Colombo hotel building in the main commercial heart of Colombo, a 6,300-hactare land owned by listed Pelwatte Sugar Industries Plc .

Since the end of its 25-year civil war in 2009, Sri Lanka has been working to improve the investment climate, including fiscal and tax reforms under the guidance of International Monetary Fund.

Though Rajapaksa has assured the bill will be a 'one off' act to acquire the specified properties, economists, investors, state officials and opposition have raised concerns over it, saying it could damage business confidence.

ANTI-INVESTMENT POLICIES

"These kind of adhoc and anti-investment policies are going to drive away potential investors coming to Sri Lanka," a top state official who has been dealing with foreign investors told Reuters on condition of anonymity, citing the sensitivity of the topic.

The government's acquisition effort comes after it annulled a $500 million hotel deal with a Chinese firm over a land dispute and transferred a top Securities and Exchange Commission (SEC) official on complaints from politically-connected investors. ,

"All these give a negative perception on Sri Lanka's investment climate and the government should realise that this is not the only country in Asia to invest. Investors have a lot of choices," the official said.

Sirimal Abeyratne, a professor in economics at University of Colombo, said the move was similar to destroying a whole tree instead of getting rid of some rotten fruit.

Sri Lanka's foreign direct investment doubled in the first half of 2011 to $413 million year-on-year, mainly from Honk Kong based Shangri La Asia for a luxury hotel in Colombo.

"This government has a split personality. It is trying to sell the people one story and sell the investors another story," Harsha de Silva, a main opposition UNP legislator and an economic expert said.

"They themselves are stopping the investors. When you do things like these, who would willing to invest?. Even Shangri-La could be nationalised if they don't perform well."

However, junior economic development minister Lakshman Yapa Abeywardena said there will not be a problem for any investors and the government might consider better investor who can perform efficient and use the lands for optimum utilisation.

The bill is expected to be passed on Wednesday in parliament, where the government has a two-third's majority.

Greek rivals forging new government

Greece's two biggest parties have resumed talks on who should be the new prime minister after agreeing a power-sharing deal to accept a massive financial rescue package.

Fellow European governments will want concrete progress when eurozone finance ministers meet to discuss the possibility of unfreezing bailout loans that had been kept on hold while the country sorted its political turmoil.

Negotiators from the Socialist government and opposition conservatives held fresh talks to hammer out the composition of the new 15-week government, which will be tasked with passing the package from the country's international creditors before elections. Prime Minister George Papandreou and opposition leader Antonis Samaras were also expected to hold further talks.

Former European Central Bank vice president Lucas Papademos is being tipped as the most likely new head of the government that would serve until a February 19 general election.

Officials in Greece's two main political parties have confirmed that the 64-year-old former central banker is a candidate although there is no indication yet he would want the job, for however short a period.

None of the people being considered have been announced publicly.

The power-sharing talks were due to be concluded by the end of the day, with former EU Environment Commissioner Stavros Dimas, a conservative, also being considered for a senior government position.

Mr Papandreou's popularity took a battering last week after his call for a referendum on Greece's latest rescue package, that was agreed less than two weeks ago.

Although the referendum was scrapped after Greece's main conservative opposition said it agreed to the broad outlines of the rescue deal, markets remain in a jittery state, especially as the country needs the next batch of bailout cash within weeks to pay off debts.

European governments remained cautious as they awaited developments on the composition of Greece's new government.

Greece's two biggest parties have resumed talks on who should be the new prime minister after agreeing a power-sharing deal to accept a massive financial rescue package.

Sri Lanka declare in Sharjah

Sri Lanka predictably declared their innings at 181 for six as they tried to force a positive outcome in the third and final Test against Pakistan in Sharjah.

Persistent rain meant no play was possible in the scheduled first session of the final day, a situation which suited the designated hosts Pakistan, for whom a draw would be enough to wrap up a 1-0 win from the three-Test series after they triumphed by nine wickets in the opener in Dubai.

Sri Lanka ended day four leading by 237 runs, having reached 164 for five in their second innings with opener Tharanga Paranavitana unbeaten on 66 and Kumar Sangakkara having added 51.

Kosala Kulasekara was the man out today, bottom-edging a doosra from Saeed Ajmal onto his stumps having added just seven to the tourists' total.

Paranavitana batted on to 76 not out before the declaration came, leaving Pakistan needing a notional 255 to win from 61 overs though their primary target will be to avoid defeat.

Sri Lanka predictably declared their innings at 181 for six as they tried to force a positive outcome in the third and final Test against Pakistan in Sharjah.

Sri Lanka ended day four leading by 237 runs, having reached 164 for five in their second innings with opener Tharanga Paranavitana unbeaten on 66 and Kumar Sangakkara having added 51.

Kosala Kulasekara was the man out today, bottom-edging a doosra from Saeed Ajmal onto his stumps having added just seven to the tourists' total.

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