Economy

Sri Lanka’s JKH to up tourism game by striking deal with casino operator

Tuesday September 20, 2022 6:05 am

ECONOMYNEXT – Sri Lanka’s John Keells Holdings will finalize a deal with a casino operator for its Cinnamon Life integrated resort, Chairman Krishan Balendra said after the government issued rules to regularize gaming.

“As the Government has gazetted the legal framework and regulations for gaming, we will finalize arrangements with a license holder and operator to rent the designated casino area at Cinnamon Life,” the Balendra said.

“Then we will begin fitting out and equipping the space.”

CAL Research in a note to clients said a 5-star hotel in an integrated resort usually earns 50 percent more room rents than a stand alone one. Cinnamon Life is expected to open in the first half of 2023 and the casino in 2024.

JKH is expected to get rent and a share of the profits of the casino, in addition to higher occupancy for its 800 room hotel and more patrons for the mall.

“Cinnamon Life will transform Colombo as a leisure and entertainment destination for the region, and lead to substantial foreign exchange earnings for the country,” Balendra said.

“Opening of integrated resorts in Asian destinations like Singapore and Manila resulted in a surge in tourist arrivals.

“We are close to India and there are no integrated resorts in India or the rest of South Asia. Cinnamon Life is a game changer.”

Sri Lanka has gazetted rules to issue five year gaming licenses for 500 million rupees. An operator could apply for a 20 year license with a pre-payment.

JKH could strike a deal with an existing operator or a joint venture, analysts say.

JKH may get a rental income of around 2 dollar per square feet and around 10 percent of profits which will increase to 25 percent by 2030, CAL said.

The operation may at 7.1 million US dollars to JKH revenues in the first year of operation. (Colombo/Sep20/2022)

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General Industry

Sri Lanka to introduce social security system: minister

Wednesday September 27, 2023 10:01 am

ECONOMYNEXT – Sri Lanka’s Labour minister has said that they are set to introduce a comprehensive national social security system, covering all workers.

“The system will address the weaknesses of the current system and provide much-needed support to workers and their families,” Manusha Nanayakkara, Minister of Labour and Foreign Employment said on X (formerly known as Twitter).
He did not specify the details.

Nanayakkara also spoke of the need for robust social security when he met with exporters last week to discuss labor law reforms, boosting female workforce participation and attracting FDI.

Sri Lanka plans to reform labour laws for an export-oriented economy.

The pandemic and the economic crisis highlighted the need to improve the coverage of social security.

Studies have shown that Sri Lanka’s women are kept out of formal employment by childcare, elderly care and housework, as day care and elderly homes are either too expensive or too few.

The government imposed a Social Security Contribution Levy to increase its revenue last year. (Colombo/Sep27/2023)

Sri Lanka’s pandemic-hit unemployment show need for social security: IPS

Commodities

Sri Lanka’s stocks up in trading on Wednesday morning

Wednesday September 27, 2023 9:53 am

ECONOMYNEXT – Sri Lanka shares were picking up in trading on Wednesday morning.

Turnover was at 50 million. Trading in the Capital Goods Industry Group was driving turnover.

The All Share Price Index was up 0.37 percent or 41.78 points to 11,289.94, while the S&P SL20 was also up 0.68 percent or 21.66 points to 3,187.65.

Hatton National Bank, Commercial Bank and LOLC saw gains in morning trade, while Tokyo cement and Lanka Hospitals were trading down during morning trading. (Colombo/Sep27/2023)

Bonds & Forex

Sri Lanka rupee opens at 323.50/324.10 to the US dollar, bond yields stable

Wednesday September 27, 2023 9:35 am

ECONOMYNEXT – Sri Lanka’s rupee opened at 323.50/324.10 to the US dollar on Wednesday, after closing on Tuesday at 323.70/324.20 to the US dollar, dealers said.

A bond maturing on 01.08.2026 was quoted at 15.50/70 percent on Wednesday up from Tuesday’s close at 15.45/65 percent.

A bond maturing on 01.05.2028 was quoted at 14.50/55 percent from closing at Tuesday at 14.30/55 percent. (Colombo/Sep27/2023)