ATTN: MR.

CHANDIMA UDABAGE
RUNDOWN

THE STATE OF BUSINESS – 3RD JAN, 2008

CEASE FIRE VTR CHAMINDA 01.17

LAUGFS VTR SHASHIKA 01.30

TRADE VTR RAVI 01.20

BREAK 1 - ADD STATE OF BUSINESS BRIDGE

FUEL VTR RIYAD 02.40

CORPORATE BRIDGE

FITCH CARD NILANTHA 00.50

BREAK 2 - STOCK WATCH

STOCK UPDATE CARDS 01.30

CURRENCY CARDS 00.20

LINE UP EDITOR - NISHANI

ANCHOR - NISHANI
HEADLINES
1. CABINET GIVES GO-AHEAD TO ANNUL CFA WITH LTTE, AND
2. ANOTHER BLOW OF GAS AS LAUGFS INCREASES ITS DOMESTIC GAS
PRICES

1.SLUG:CFA–VTR

CABINET OF MINISTERS YESTERDAY DECIDED TO WITHDRAW FROM THE

CEASEFIRE AGREEMENT SIGNED IN 2002 BY THE THEN GOVERNMENT
OF SRI LANKA WITH THE LTTE.

THIS DECISION WAS TAKEN WITH LESS THAN TWO MONTHS REMAINING
FOR THE CEASEFIRE TO COMPLETE SIX YEARS, WHICH WOULD MAKE
IT THE LONGEST SUCH AGREEMENT ANY SRI LANKAN GOVERNMENT HAD
BEEN IN WITH THE LTTE.

THE GOVERNMENT REVEALED FURTHER DETAILS ABOUT THIS DECISION

TO THE MEDIA THIS MORNING IN COLOMBO.

ROLL VTR

2.SLUG:LAUGFS–VTR

THE CONSUMER AFFAIRS AUTHORITY HAS GRANTED PERMISSION TO

LAUGFS GAS PRIVATE LIMITED TO REVISE THE RETAIL PRICE OF
ITS 12.5 KG DOMESTIC GAS CYLINDER BY 212 RUPEES.

ACCORDINGLY THE NEW PRICE OF A LAUGHS DOMESTIC GAS CYLINDER

WILL BE 1,460 RUPEES FROM MID NIGHT TODAY.

ROLL VTR

3.SLUG:BANDULA–VTR

MINISTER OF TRADE AND CONSUMER AFFAIRS BANDULA GUNAWARDENA

SAYS THAT THE GOVERNMENT HAS LOST 15 BILLION RUPEES DUE TO
THE TAX CONCESSIONS GIVEN TO 14 ESSENTIAL COMMODITIES
DURING THE PAST 10 MONTHS.

THIS WAS DISCLOSED BY THE MINISTER AT A MEDIA BRIEFING HELD

IN COLOMBO TODAY.

ROLL VTR

BREAK
4.SLUG:OIL-VTR

THE NEW YORK MERCANTILE EXCHANGE YESTERDAY RECORDED THAT

THE PER BARREL PRICE OF CRUDE OIL HAD BREACHED THE 100
DOLLAR MARK FOR THE 1ST TIME.

THE PREVIOUS ALL TIME HIGH WAS 99 DOLLARS AND 29 CENTS SET
IN NOVEMBER 2007.

THE STATE OF BUSINESS EXPLORES HOW THIS WOULD AFFECT THE

LOCAL ECONOMY.

ROLL VTR

CORPORATE

5.SLUG:FITCH-CARD

FITCH RATINGS LANKA TODAY AFFIRMED THE ‘BBB LANKA' NATIONAL

LONG-TERM RATING ASSIGNED TO THE FINANCE COMPANY PLC.

AT THE SAME TIME, THE AGENCY AFFIRMED THE BBB MINUS LANKA
RATING OF TFC'S SUBORDINATED DEBENTURES.

THE OUTLOOK IS STABLE.

CARD IN:

TFC'S RATING FACTORS IN ITS SIGNIFICANT MARKET SHARE IN THE

FINANCE COMPANY SECTOR, AS WELL AS COMFORT DERIVED FROM ITS
MAIN SHAREHOLDER - THE CEYLINCO CONSOLIDATED GROUP.

THE RATING IS CONSTRAINED BY TFC'S LOW CAPITALISATION, WEAK

ASSET QUALITY, AND THE RISKS INHERENT TO THE FINANCE
COMPANY SECTOR.

TFC'S PORTFOLIO GREW BY 28% LAST YEAR.

VEHICLE FINANCING AND REAL ESTATE ACCOUNTED FOR 55% AND

40%, RESPECTIVELY, OF ITS PORTFOLIO AT 2007.

THE FITCH SAYS DUE TO THE HIGH INTEREST RATE ENVIRONMENT

AND THE DAMPENING DOMESTIC ECONOMIC ACTIVITY, TFC, AS WITH
OTHER FINANCIAL INSTITUTIONS, SAW ITS ASSET QUALITY
WEAKENING.
TFC IS THE LARGEST FINANCE COMPANY IN SRI LANKA WITH A 27%
SHARE OF SECTOR ASSETS AT END-2006.

READ ON.

BREAK

6.STOX

THE MARKET WAS ON A STEADY DOWNWARD TREND THROUGHOUT THE

DAY. HOWEVER, TURN OVER LEVELS SAW AN IMPROVEMENT MAINLY
DUE TO INTEREST WITNESSED ON JKH.

THE HIGHEST TRANSACTION OF SHARES FOR THE DAY OF 0.96

MILLION TOOK PLACE ON JKH. SLT FOLLOWED WITH 0.27 MILLION
SHARES WHILE BALANGODA WAS NEXT IN LINE.

JKH WAS ALSO THE TOP CONTRIBUTOR TO TURN OVER TODAY PUMPING
IN 121.4 MILLION RUPEES AND WAS FOLLOWED BY SLT AND
KOTAGALA.

THERE WERE NO CROSSINGS TODAY.

CARD 1
BOTH INDICES ENDED THE DAY IN THE RED.

THE ASPI DIPPED 30.14 POINTS TO 2,529.96 WHILE THE MILANKA

DROPPED 38.71 POINTS TO CLOSE AT 3,230.27.

TURN OVER FOR THE DAY RECORDED A FIGURE OF 222 MILLION

RUPEES.

CARD 2
SINGALANKA, HAPUGASTENNE, VANIK INCORPORATION LIMITED,
NESTLE AND LION BREWERY TOPPED THE DAY’S GAINERS LIST.

CARD 3
WHILE METROPOLITAN RESOURCES HOLDINGS, SEYLAN MERCHANT NON
VOTING, UDAPUSELLAWA, HORANA AND AGALAWATTE WERE THE DAY’S
MAIN LOSERS.

CARD 4
ASIRI HOSPITALS LIMITED AND ASIRI SURGICAL HOSPITALS MADE
RIGHTS ISSUES FOR THE DAY.

FOREX RATES
CARD 5 & 6
SEGMENT: CORPORATE
DATE: 03/01/08
REPORTER: NK
SLUG: FITCH - CARD

FITCH RATINGS LANKA TODAY AFFIRMED THE ‘BBB LANKA' NATIONAL

LONG-TERM RATING ASSIGNED TO THE FINANCE COMPANY PLC.

AT THE SAME TIME, THE AGENCY AFFIRMED THE BBB MINUS LANKA
RATING OF TFC'S SUBORDINATED DEBENTURES.

THE OUTLOOK IS STABLE.

CARD IN:

FITCH RATINGS ON TFC

• ‘BBB (lka)’ affirmed

• Outlook is stable
• Portfolio grew by 28%

TFC'S RATING FACTORS IN ITS SIGNIFICANT MARKET SHARE IN THE

FINANCE COMPANY SECTOR, AS WELL AS COMFORT DERIVED FROM ITS
MAIN SHAREHOLDER - THE CEYLINCO CONSOLIDATED GROUP.

THE RATING IS CONSTRAINED BY TFC'S LOW CAPITALISATION, WEAK

ASSET QUALITY, AND THE RISKS INHERENT TO THE FINANCE
COMPANY SECTOR.

TFC'S PORTFOLIO GREW BY 28% LAST YEAR.

VEHICLE FINANCING AND REAL ESTATE ACCOUNTED FOR 55% AND

40%, RESPECTIVELY, OF ITS PORTFOLIO AT 2007.

THE FITCH SAYS DUE TO THE HIGH INTEREST RATE ENVIRONMENT

AND THE DAMPENING DOMESTIC ECONOMIC ACTIVITY, TFC, AS WITH
OTHER FINANCIAL INSTITUTIONS, SAW ITS ASSET QUALITY
WEAKENING.

TFC IS THE LARGEST FINANCE COMPANY IN SRI LANKA WITH A 27%

SHARE OF SECTOR ASSETS AT END-2006.
READ ON.
SEGMENT: MAIN
DATE: 03 / 01 / 2008
REPORTER: CHAMINDA
SLUG: CFA – VTR

CABINET OF MINISTERS YESTERDAY DECIDED TO WITHDRAW FROM THE

CEASEFIRE AGREEMENT SIGNED IN 2002 BY THE THEN GOVERNMENT
OF SRI LANKA WITH THE LTTE.

THIS DECISION WAS TAKEN WITH LESS THAN TWO MONTHS REMAINING
FOR THE CEASEFIRE TO COMPLETE SIX YEARS, WHICH WOULD MAKE
IT THE LONGEST SUCH AGREEMENT ANY SRI LANKAN GOVERNMENT HAD
BEEN IN WITH THE LTTE.

THE GOVERNMENT REVEALED FURTHER DETAILS ABOUT THIS DECISION

TO THE MEDIA THIS MORNING IN COLOMBO.

ROLL VTR

Super

Minister Anura Priyadarshana Yapa

Cabinet Spokesman

CEASEFIRE TO BE ANNULLED

Signed in 2002 to start peace talks

Violence broke out later

despite the Agreement

Governments open for talks

despite abolition

VOICE OVER – CFA – CHAMINDA – 03 / 01 / 08

VOICE CUT- ANURA PRIYADARSHANA YAPA

THE AGREEMENT WILL BECOME INVALID ONCE THE GOVERNMENT

NOTIFIES THE ROYAL NORWEGIAN GOVERNMENT OF ITS DECISION
WHICH ACTED AS THE FACILITATOR OF THE CFA.

AS PER THE INITIAL AGREEMENT EITHER PARTY WHICH WISHES TO

TERMINATE THE CFA HAS TO INFORM THE NORWEGIAN GOVERNMENT 14
DAYS IN ADVANCE OF THE EFFECTIVE DATE OF TERMINATION.

ENDS/
SEGMENT: MAIN
DATE: 3RD JANUARY 2008
REPORTER: RIYAD R.
EDITOR: PIGGY
SLUG: OIL $ 100

THE NEW YORK MERCANTILE EXCHANGE YESTERDAY RECORDED THAT

THE PER BARREL PRICE OF CRUDE OIL HAD BREACHED THE 100
DOLLAR MARK FOR THE 1ST TIME.

THE PREVIOUS ALL TIME HIGH WAS 99.29 DOLLARS SET IN

NOVEMBER 2007.

THE STATE OF BUSINESS EXPLORES HOW THIS WOULD AFFECT THE

LOCAL ECONOMY.

ROLL VTR

Super

Amal Sandaratne
Chief Executive Officer
Frontier research

Ajith Nivard Cabraal

Governor
Central Bank of Sri Lanka

Tags

‘OIL PRICE’

US $ 100 breached @ NYME

CPC’s monthly cumulative loss - Rs.3 Bn.

VOICE OVER / OIL $ 100 / RIYAD / 3RD JANUARY 2008 / VTR
AT THE END OF TRADE YESTERDAY OIL PRICES CLOSED AT 99
DOLLARS AND 62 CENTS, BEATING THE PREVIOUS CLOSING RECORD
OF 98 DOLLARS AND 18 CENTS SET IN NOVEMBER 23RD.

SRI LANKA HAS A RESPITE IN THIS CURRENT SCENARIO AS THE CPC

PURCHASES OIL FROM THE “DUBAI PLATZ” WHICH IS GENERALLY
CHEAPER THAN THE WESTERN MARKETS AND IS CURRENTLY TRADING
AT 92-93 DOLLARS.

HOWEVER SINCE ASIAN COMMODITY MARKETS HAVE A CLOSE

RELATIONSHIP WITH THEIR WESTERN COUNTERPARTS ANY MAJOR
PRICE HIKES IN THE WEST HAS A DIRECT IMPACT ON ASIAN
MARKETS.

AMAL CUT

CURRENTLY THE CPC IS RUNNING AT A LOSS OF 7 RUPEES ON

PETROL, 20 RUPEES ON DIESEL AND 22 RUPEES ON KEROSENE OIL,
WITH A CUMULATIVE LOSS OF APPROXIMATELY 3 BILLION RUPEES A
MONTH.

THE GOVERNOR OF THE CENTRAL BANK AJITH NIVARD CABRAAL

YESTERDAY IN HIS FINANCIAL ROADMAP SPEECH STATED THAT SRI
LANKA’S GROWTH FORECASTS ARE BASED ON 85 DOLLARS A BARREL
PROJECTION.

55.15 CABRAAL
FOR EXAMPLE, IF THE AVERAGE PRICE OF OIL FOR THE YEAR IN
2008 INCREASES TO U.S. DOLLARS 90 PER BARREL AS AGAINST THE
BASELINE FORECAST OF U.S. DOLLARS 85 PER BARREL, THE BOP
SURPLUS MAU REDUCE. SIMILARLY, GDP GROWTH MAY ALSO BE
MATERIALLY AFFECTED BY SUCH AN EXTERNAL SHOCK, SINCE IT CAN
HINDER MANY ECONOMIC ACTIVITIES INCLUDING TRANSPORT,
MANUFACTURING AND FISHERIES SECTORS. UNDER SUCH
CIRCUMSTANCES, THE YEAR-END INFLATION MAY SETTLE AT A
HIGHER LEVEL OF AROUND 12-14%. 55.50
SEGMENT : MAIN
DATE : 03.01.2007
REPORTER: RAVI
SLUG : BANDULA – VTR

MINISTER OF TRADE AND CONSUMER AFFAIRS BANDULA GUNAWARDENA

SAYS THAT THE GOVERNMENT HAS LOST 15 BILLION RUPEES DUE TO
THE TAX CONCESSIONS GIVEN TO 14 ESSENTIAL COMMODITIES IN
THE PAST 10 MONTHS.

THIS WAS DISCLOSED BY THE MINISTER AT A MEDIA BRIEFING HELD

IN COLOMBO TODAY.

ROLL VTR

Bandula Gunawardena
Minister
Trade & Consumer Affairs

ESSENTIAL COMMODITIES

Gas, Cement, Milk Powder & Wheat flour will remain

essential commodities.

Inflation for Dec.07’ – 18.8%

VOICE OVER- RAVI -03/01/2008 – BANDULA

THE MINISTRY OF TRADE AND CONSUMER AFFAIRS PRESCRIBED 10

COMMODITIES AS SPECIFIED GOODS WITH EFFECT FROM THE 7TH OF
MARCH 2007.

CARD IN

THE LISTED ITEMS ARE WHITE SUGAR, DRIED CHILLIES, BIG

ONIONS, RED ONIONS, DHAL, DRIED SPRATS, GRAM, GREEN MOONG,
CANNED FISH AND CHICKEN.

ACCORDINGLY THE MINISTRY HAD THE AUTHORITY TO SET PRICE

CEILINGS FOR THESE ITEMS.

BUT ON THE 25TH OF DECEMBER THE MINISTRY TERMINATED THIS

AGREEMENT. THUS THESE 10 COMMODITIES DO NOT HAVE A PRICE
CEILING ANY MORE.

VC – BANDULA (SUBTITLES)
24:55
No businessman wants their goods to be specified as
essential commodities, especially the multi national
companies. Then these companies pressure the government to
change it. 25:18

MEANWHILE THE GOVERNMENT HAS RE-IMPOSED THE TAX ON THESE 10

ESSENTIAL COMMODITIES, WHICH CAUSED THE RECENT PRICE
ESCALATION OF THESE ITEMS.

ENDS/.
STOX

THE MARKET WAS ON A STEADY DOWNWARD TREND THROUGHOUT THE

DAY. HOWEVER, TURN OVER LEVELS SAW AN IMPROVEMENT MAINLY
DUE TO INTEREST WITNESSED ON JKH.

THE HIGHEST TRANSACTION OF SHARES FOR THE DAY OF 0.96

MILLION TOOK PLACE ON JKH. SLT FOLLOWED WITH 0.27 MILLION
SHARES WHILE BALANGODA WAS NEXT IN LINE.

JKH WAS ALSO THE TOP CONTRIBUTOR TO TURN OVER TODAY PUMPING
IN 121.4 MILLION RUPEES AND WAS FOLLOWED BY SLT AND
KOTAGALA.

FOREIGN BUYING FOR THE DAY AMOUNTED TO AND FOREIGN SALES TO

THERE WERE NO CROSSINGS TODAY.

CARD 1
BOTH INDICES ENDED THE DAY IN THE RED.

THE ASPI DIPPED 30.14 POINTS TO 2,529.96 WHILE THE MILANKA

DROPPED 38.71 POINTS TO CLOSE AT 3,230.27.

TURN OVER FOR THE DAY RECORDED A FIGURE OF 222 MILLION

RUPEES.

CARD 2
SINGALANKA, HAPUGASTENNE, VANIK INCORPORATION LIMITED,
NESTLE AND LION BREWERY TOPPED THE DAY’S GAINERS LIST.

CARD 3
WHILE METROPOLITAN RESOURCES HOLDINGS, SEYLAN MERCHANT NON
VOTING, UDAPUSELLAWA, HORANA AND AGALAWATTE WERE THE DAY’S
MAIN LOSERS.

CARD 4
ASIRI HOSPITALS LIMITED AND ASIRI SURGICAL HOSPITALS MADE
RIGHTS ISSUES FOR THE DAY.

FOREX RATES
CARD 5
CARD 6
SEGMENT : MAIN
DATE : 03.01.2007
REPORTER: SHASHIKA
SLUG : LAUGFS GAS – VTR

THE CONSUMER AFFAIRS AUTHORITY HAS GRANTED PERMISSION TO

LAUGFS GAS PRIVATE LIMITED TO REVISE THE RETAIL PRICE OF
ITS 12.5 KG DOMESTIC GAS CYLINDER BY 212 RUPEES.

ACCORDINGLY THE NEW PRICE OF A LAUGHS DOMESTIC GAS CYLINDER

WILL BE 1,460 RUPEES FROM MID NIGHT TODAY.

ROLL VTR

SUPER

W.K.H. Wegapitiya – Chairman

Laugfs Gas(Pvt.)Ltd.

INFO TAGS

‘LAUGFS GAS’

New price of LPG cylinder - Rs.1,460

Half a million cylinders in circulation

at Laugfs Gas
VOICE OVER / LAUGFS GAS / SHASHIKA / 03/01/08

VOICE CUT – WEGAPITIYA – IN – 00:59:36

FROM TODAY ONWARD….

OUT – 01:00:22

LAUGFS GAS PURCHASES THE ENTIRE PRODUCTION OF LPG FROM THE

REFINERY OWNED BY CEYLON PETROLEUM CORPORATION AT WORLD
MARKET PRICE.

THEREFORE THE COMPANY SAYS WHEN THE WORLD MARKET PRICE OF

LPG INCREASE THE PRICE OF LPG SOLD BY THE CPC TO LAUGFS
ADJUSTS ACCORDINGLY ON A MONTHLY BASIS.

YESTERDAY THE MARKET LEADER IN THE LOCAL DOMESTIC GAS

INDUSTRY “SHELL GAS” TOO INCREASED THE PRICE OF A 12.5 KILO
GRAM DOMESTIC GAS CYLINDER BY 175 RUPEES.

WITH THIS PRICE HIKE, A CYLINDER OF DOMESTIC SHELL GAS

CYLINDER IS SOLD AT 1488 RUPEES.

END/