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Wednesday February 1st, 2023

Sri Lanka’s Mercantile Shipping to sell ships for Rs1.8bn to repay debt


ECONOMYNEXT-Sri Lanka’s Mercantile Shipping Company is to sell two cargo ships owned by a subsidiary, Mercantile Emerald Shipping (Private) Limited’s (MESL), for a total of 1.8 billion rupees.

The sale of the ships to a buyer has been agreed with the German bank to which Mercantile Emerald Shipping has been unable to repay loans amid mounting losses.

A stock exchange filing said auditors Ernst & Young had agreed that the going concern matter they had raised over Mercantile Emerald Shipping has now been resolved and the subsidiary is to be wound up.

Mercantile Shipping’s two ships, Mercs Uva and Mercs Uhana, had been mortgaged to Bremer Landesbank-Germany, now merged with Norddeutsche Landesbank, from which MESL had borrowed.

The two ships are to be sold for 4.5 million euro each – about 1.8 billion rupees in total – and proceeds to be used to settle the mortgage loan, overdraft and related interest owed to Bremers Landbank of 4.7 billion rupees

MESL would then be liquidated as the ship sale would leave it without enough resources to settle remaining debt.

Bremer Landesbank has now discharged Mercantile Shipping of its liabilities concerning MESL with the contract to sell the two ships signed and sale to be completed within a year.

 (COLOMBO, 20 September, 2019)

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Sri Lanka coconut prices ease at auction

ECONOMYNEXT- Sri Lanka’s coconut auction prices fell in the last auction in January 2023, with average prices going down by 4.1 percent at an auction on January 26, data showed.

The average price for 1,000 nuts fell to 80.811.89 from 84,116.85 a week earlier at the weekly auction conducted by Sri Lanka’s Coconut Development Authority.

The highest price was 87,300 rupees for 1,000 nuts down from the previous week’s 90,200 rupees, while the lowest was 72,500 down from 73,000 rupees.

The auction offered 469,564 coconuts and 300,983 nuts were sold. (Colombo/ Feb 01/2023)

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Sri Lanka shares edge up at close

ECONOMYNEXT- Sri Lanka’s shares edged up on Wednesday pushed as investors bought in to beaten down shares following the previous session’s drop, market analyst said.“

At this price level what we are seeing is a lot of confidence from the investors to collect when the prices drop. So, the market is not falling sharply,” a market analyst said.

Market had also seen buying in Expolanka shares on speculation that the parent company of SG Holdings was buying back into the shares.

All Share Price Index (ASPI) edged up by 0.96 percent or 84.96 points to 8,950.01.

The most liquid index S&P SL20 gained 1.27 percent or 35.02 points to 2,799.53.

Banking and Insurance counters had seen interest on the back of positive sentiments from the IMF.

The central bank has said it could cut interest rates in future when the the country sees fall in inflation, which has already started decelerating.

The market saw a turnover of 1.5 billion rupees today,lower than the month’s daily average of 1.8 billion rupees and nearly half of 2022 average turnover of 2.9 billion rupees.

The bourse saw a flow of net foreign inflow of 45 million rupees extending the net offshore buying to 1.9 billion so far this year.

Top gainers of the day were Commercial Bank, Expolanka, and Ceylinco Insurance. (Colombo/Feb01/2023)

 

 

 

 

 

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Sri Lanka bond yields down at close

ECONOMYNEXT – Sri Lanka’s bond yields were down at close following a bond auction on Wednesday, dealers said while a guidance peg for interbank transactions remained unchanged.

“The rates were steady at the auction,” a dealer said.

“This can be a signal to the market saying the rates will go down in the future.”

A bond maturing on 01.07.2025 closed at 32.40/60 percent, down from yesterday’s 32.60/85 percent.

A bond maturing on 01.05.2027 closed at 29.10/35 marginally down from yesterday’s 29.20/75 percent.

The Central Bank’s guidance peg for interbank US dollar transactions remained unchanged at 362.14 rupees against the US dollar.

Commercial banks offered dollars for telegraphic transfers at 371.38 rupees on Friday, data showed. (Colombo/Feb 01/2022)

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