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Monday April 15th, 2024

Sri Lanka’s Jetwing Symphony June losses grow with Easter Sunday hit

ECONOMYNEXT- Sri Lanka’s Jetwing Symphony said that its net losses for the June 2019 quarter grew 4.1 percent to 161.6 million rupees from a year earlier, as the tourism industry was hit by the Easter Sunday attack.

The firm, which is a holding company for the Jetwing Group’s new hotels, in its interim financials said that the loss per share for the June quarter was 32 cents. The firm’s share closed trading 1 rupee higher at 12 rupees on Tuesday.
Jetwing Symphony’s revenue for the June quarter fell 3 percent to 289 million rupees from a year earlier, while cost of sales were flat at 51.1 million rupees, leading to gross profits falling 4 percent to 232.1 million rupees.
Sri Lanka’s tourism arrivals for May fell 71 percent from a year earlier due to the Easter attack, but recovered to a 57.4 percent fall in June and a 45 percent fall in July.
The Easter Sunday attack took place in the off-peak season which started in April and runs to June, and then from September to October, until the peak winter season which runs from November to March.
“We are seeing a monthly pick up, and we are hopeful that we will be in a better position during the winter months, our traditional peak season,” Chairman Hiran Cooray told shareholders in an earnings release.
He described the period as the “most difficult quarter since Jetwing Symphony’s inception”.
The firm, which has made losses to date was expecting to post profits in the 2020 financial year, as its new hotels matured.
Finance expenses for the quarter grew 9 percent to 116 million rupees.
Long term loans grew to 2.6 billion rupees at the end of the June quarter from 2.2 billion rupees from the start of the current financial year three months earlier.
Short-term borrowings fell to 1.7 billion rupees from 2 billion rupees during the three months. (Colombo/13 Aug/2019)

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Sri Lanka to discuss two contentious points with bondholders: report

ECONOMYNEXT – Sri Lanka and sovereign bondholders are to discuss two matters in the near future which the two sides failed to reach agreement at March talks in London, a media report quoting a top aide to President Wickremesinghe as saying.

Sri Lanka and bondholders had discussed four matters on restructuring international sovereign bonds in late March and agreement had been reached on two, President’s Chief of Staff Sagala Ratnayake was quoted as saying on state-run ITN television.

A restructuring proposal by bondholders was not in line with IMF requirements, and Sri Lanka had sent a counter proposal, he said.

The matters will be discussed at round of talks in the near future.

Sri Lanka was optimistic of reaching an agreement with the bondholders before June, officials have said.

According to matters already in the public domain, sovereign bond holders are keen to get a bond tied to dollar gross domestic product, as they feel IMF growth projections are too low.

In past re-structuring so-called value recovery instruments, a type of warrant, gave their owners extra payments if a country did better than expected and were tied to items like oil prices.

Bondholders had initially proposed bond which would have a lower hair cut initially, and it will have additional hair cuts if growth is low (about 3.1 percent) as projected in an IMF debt sustainability analysis. (Colombo/Apr15/2024)

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BIMSTEC Secretary General visits Sri Lanka, discusses regional cooperation

ECONOMYNEXT – The Secretary General of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), discussed measures to enhance regional cooperation, during his visit to the island last week.

Ambassador Indra Mani Pandey, Secretary General of BIMSTEC visited Sri Lanka from 07 – 12 April 2024, following his assumption of office as Secretary General of BIMSTEC in January this year.

The Secretary General “met with senior officials of relevant Ministries/Agencies to discuss measures to enhance regional cooperation under various BIMSTEC initiatives,” the Foreign Ministry said in a statement.

Several BIMSTEC countries have bilateral trade agreements, such as Sri Lanka and India, Thailand and Myanmar, Sri Lanka and Thailand, but no collective regional agreement to enable intra-regional leverage.

During the visit, Secretary General Pandey held discussions with Ministry of Foreign Affairs officials and paid courtesy calls on the President and the Minister of Foreign Affairs.

Secretary General Pandey participated at an event on “Regional Cooperation through BIMSTEC” organized by the Lakshman Kadirgamar Institute (LKI) on 9 April. (Colombo/April15/2024)

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Sri Lanka rupee closes weaker at 299.00/10 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 299.00/10 to the US dollar in the spot forex market on Monday, from 298.50/55 on Wednesday, dealers said, while bond yields were broadly steady.

A bond maturing on 15.12.2026 closed stable at 11.30/35 percent.

A bond maturing on 15.09.2027 closed stable at 11.90/12.00 percent.

A bond maturing on 15.12.2028 closed at 12.10/20 percent up from 12.10/15 percent.

A bond maturing on 15.09.2029 closed stable at 12.20/40 percent. (Colombo/Apr15/2024)

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