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M ont hly Bullet in: Augus t 2 0 1 3

In Economic news:
FDIs trickle in as 2013 target of $2.0bn looms large Pawning gold losing shine as international gold prices slide from record high Sri Lanka secures funding from ADB and the World Bank for education and health projects Inflation rose to 6.3% YoY in Aug 13 (+20bps MoM) June exports grow for the first time in 15 months helps contract first half trade deficit by 7.1% YoY Rupee ended the month at 131.69/135.01 vs. USD (rupee weaker ~1.4% MoM) on high importer demand and low exporter activity All Share Price Index closes at 5,834.04, down 3.4% MoM, down 3.4% YTD.

In Business news:
Tourist arrivals in Jul 13 grow 9.5%YoY as Sri Lanka outperforms regional average Vehicle registrations grow 3.3%YoY as government attempts to control imports to save the currency Tea exports recover but production continue to decline due to bad weather Business confidence retreats for the fourth consecutive month as index falls to lowest point since Jul12 Assistance scheme for dairy farmers to increase domestic milk production DFCC Downgraded by Fitch on concerns over competitiveness of commercial banking operations

In Consumer news:
Fonterra finds itself besieged on all fronts as concerns over contamination proliferate Import duty on big onions and potatoes increased to protect farmers Airtel looks to exit Sri Lanka

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In Economic news:
FDIs trickle in as target looms large.
The Central Bank of Sri Lanka (CBSL) revised Sri Lankas Foreign Direct Investment (FDIs) for the first half of the year to $537m from $430m. While inflows are significantly higher than previous year (+19.7% YoY) the run rate is below that required to meet $2.0bn annual target. However encouragingly FDI pipeline for the second half of the year looks healthy with mixed development Crown Ltd. ($400m) slated to take hold and projects such as Shangri La, ITC Hotel and the Krrish Square look to get recorded. Mr. Andrew Colquhoun, Head of Asia Pacific Sovereigns at Fitch Ratings, speaking at Fitch Ratings Sri Lanka Sovereign and Banking roundtable commended Sri Lankas growth outperforming regional trends but cautioned of the growing portion of capital inflows being debt and not investments. He noted that this trend would not be sustainable in the

FDI $m 2,500 2,000 1,500 1,000 500 0 2007

Source: CBSL

Foreign Direct Investment

FDI/GDP
3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0%

2008

2009

2010

2011

2012

2013E

long run and that reduced debt levels and improved fiscal discipline could contribute to a higher a rating. However Governor of the CBSL Mr. Ajith Nivard Cabraal, voiced discontent at rating agencies continued pessimistic rating on Sri Lanka claiming several positive developments in the country had not been reflected in recent rating updates and as such discourage foreign investment.

Pawning gold losing its shine. Fitch Ratings Lanka (Fitch)

and Standard & Poor (S&P) cautioned Sri Lankas commercial banks on pawning loans and its ill effects on the system. Since 2010 loans granted against pawned gold has risen significantly in the country on growing international gold prices and looser domestic regulatory restrictions (no limitations on the maximum permissible loan to value). Several commercial banks view pawning loans as risk free. However this is debatable as these loans are extremely sensitive to gold prices and non-requirement of submitting borrowers credit history to the credit bureau could lead to higher non-performing loans. Gold prices have fallen from around $1,776 an ounce in late 2012 to around $1,380 an ounce (Aug 13). Pawning loans account for about 14% of commercial banks total loan portfolio.

Pawning Loans
350 300 250 200 1,500 150 100 50 0 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Aug-13 1,400 1,300 1,200 Pawning loans (Rs.bn.) Spot gold price in USD in oz 1,800 1,700 1,600

Source: Commercial Banks Loans and Advances to the Private Sector for 2Q13 and August 2013 is not available Source: CBSL, Gold.org

Sri Lanka to improve in Ease of Doing Business index. CBSL governor Mr. Ajith Nivard Cabraal stated Sri Lanka has the
objective of reaching a rank as high as 30th in International Monetary Funds Ease of Doing Business (EODB) Index by 2016. The governor believes Sri Lankas low inflation, robust banking system and interest rates to beattractive for international businesses in the future. CBSL expects to maintain inflation at single digits through the rest of 2013 and it to ease to mid-single digits in 2014. Citing countrys rapid improvement from 96th to 81st in the 2013 EODB index the governor believes a similar improvement is likely at the next assessment.

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In Economic news:
Sri Lanka secures more international funding.
Sri Lanka secured $400m in budgetary support and loans from the Asian Development Bank (ADB) and the World Bank. ADB is to channel $200m into the education sector under the first ever results based lending scheme. Further tranches of the loan will be payable based on achievement of objectives such as the rollout of a full curriculum in schools, implementation of a technology stream, and training principals and teachers. The $200m World Bank loan is to be utilized in the Second Health Sector Development Programme under the Five Year National Health Sector Development Plan (NHSDP) 2013-2017. With the intention of generating about $1bn in revenue Colombo and Hambantota ports were declared as free ports. The move is aimed at developing trans-shipment industries and exports through such zones. Moreover Katunayake and Mattala airports were declared as bonded zones encouraging the establishment of businesses.

Road and port development continues. Governments

focus on infrastructure development remains well in the spotlight as it firmly lays the foundation for a $100bn, $4,000 GDP per capita economy by 2016. Key highlights during the month;

Receives go ahead for the $4.5bn Northern expressway from Colombo to Jaffna via Kurunegala and Dambulla with connections to Kandy and Trincomalee. The first two stages of phase one (Colombo to Dambulla) is to be developed by China Merchants Holdings (International) Company Ltd. and China Merchants Hua Jian Highway Investment Company Ltd. at a cost of $1.5bn. Colombo South container terminal of the Colombo port commenced operations. Costing $500m the terminal is now the only port in South Asia able to handle the largest Triple-E Class vessels (carrying 18,000 containers) thus increasing ports container capacity to 12.7 million per annum from current 4.5million. The China Merchant Holdings International has 85% stake in the project with Sri Lanka Ports Authority owning the remaining 15%.

1,350 1,250 1,150 1 050 1,050 950 850 750

Net Credit to Government (Rs. bn)

YoY%

59% 54% 49% 44% 39% 34% 29% 24% 19% 14%

Sep-12

Nov-12

Dec-12

Nov-11

Dec-11

Apr-12

Feb-13

Apr-13

May-12

May-13

Feb-12

Aug-12

Oct-12

Mar-12

Source: CBSL

Credit to state continues unabated. In Jun 13, Credit to the

central government rose a staggering 24.6% YoY to Rs.1,259.1bn and credit to state enterprises was also up 23.0% YoY to 338.9bn. Further evidencing public sector crowding the loan market, credit to private sector enterprises only grew 8.9% YoY its lowest level in recent years. Government and state enterprises credit is now 39.6% of total debt, its highest level in recent years (26.1% in Nov 2010). Deputy Central Bank Governor Mr. Nandalal Weerasinghe stated that private sector credit utilisation is actually higher than bank loan data suggest due to the sector raising money through other means such as corporate bonds. We note that several companies have indeed raised money through corporate debt, this only accounts for a small percentage of the entire private sector in the country.

2,400 2,350 2,300 2,250 2,200 2,150 2,100 2,050 2,000 1,950 1,900

Mar-13

Jun-12

Jun-13
38% 33% 28% 23% 18% 13% 8%

Jan-12

Credit to the Private Sector (Rs. bn)

Jan-13

Jul-12

YoY%

Source: CBSL

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M ont hly Bullet in: Augus t 2 0 1 3

In Economic news:
AG approves second coal power plant.
Sri Lankas second coal power plant to be built in Sampur, Trincomalee by India based National Thermal Power Corporation (NTPC) Ltd received the nod from Sri Lankas Attorney General. The $500m plant is expected to generate 500MW and be built in association with the Ceylon Electricity Board (50/50 stake). The agreement was sealed after six years of wrangling with charges of unfair benefits being awarded to NTPC, environmental pollution and higher cost of power generation being alleged. Some state officials have noted that each unit of power produced from the new plant would cost Rs.18 higher than Rs.13 incurred at the Norichcholai coal plant.


More blocks for exploration.

Petroleum Resources Development Secretariat made available additional blocks for offshore oil and gas exploration. Six ultra-deep water blocks of approximately

18,000 and 26,000 sq. km. are to be allocated around the countrys coastline. Currently Cairn Lanka is the only gas explorer to have discovered gas in two of the four wells it was allocated.

Inflation rose to 6.3% YoY in Aug 13 (+20bps MoM). However the annual

11.0% 10.0% 9.0% 8.0% 7.0% 6.2% 6.0% 5.0% 4.0% 3.0% 2.0%
Apr-11 Mar-11 Feb-11 Nov-11

Inflation YoY%
8.9% 7.2% 7.7% 8.2% 7.1% 7.5% 7.0% 6.4% 5.1% 4.7% 4.9% 3.8% 2.7% 5.5% 7.0% 6.1% 9.3% 9.8% 9.5% 9.1% 8.9% 9.5% 9.2%

9.8%9.8%

7.5% 6.4%

7.3%

6 8% 6.8%

6.1% 6.3%

Mar-12

Nov-12

Dec-11

Dec-12

May-11

May-12

Mar-13

Feb-12

Feb-13

May-13

Sep-11

Aug-11

Aug-12

Sep-12

Source: CBSL

The rupee ended the monthat131.69/135.01 vs. USD (rupee weaker ~1.4% MoM). During the
month the Sri Lankan Rupee dropped to an all-time low 135.00 to 135.15 compounded by panic buying by importers, exporters staying away awaiting further depreciation and sell off of government treasuries in view of U.S Federal Reserve easing its Treasury purchases. Although the Central Bank believed the downward trend was temporary it directed the market towards 133.40 using state banks.

USD/LKR Exchange Rate

140 135 130 125 120 115 110 105 Mid point (rs. per US$) Bid - Ask spread (Rs. per US$)
7.5 6.5 5.5 4.5 3.5 2.5 1.5

Source: CBSL

Aug-13

average inflation dipped to 8.0% from 8.3% in Jul 13 on food and non-alcoholic beverage prices declining 0.8% MoM. This segment constitutes about 40% of the inflation index

Apr-12

Apr-13

Jan-11

Jan-12

Jan-13

Jul-11

Jul-12

Jun-11

Jun-12

Jun-13

Oct-11

Oct-12

Jul-13

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M ont hly Bullet in: Augus t 2 0 1 3

In Economic news:
The All Share Price Index closed at 5,834.04, down 3.4% MoM, down 3.4% YTD.
Apart from food and beverages (+5.1% MoM) all other sectors ended the month in negative territory with sectors, diversified holdings (-11.7% MoM), services (-9.7%) and stores & supplies (-9.2%) performing the worst.
All Share Price Index (ASPI)
6,600 6,463 6,121 5,972 5,817 5,694 5,700 5,458 5,400 4,966 5,100 4,832 4,800 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 4,945 5,180 5,420 5,419 5,514 5,351 5,643 5,636 5,736 5,953 6,300 6,037 5,834

6 000 6,000

Source: CSE

Navara Capital, an investment banking services provider acquired New World Securities (Pvt.) Ltd. (NWS) a registered trading partner of the Colombo Stock Exchange. Navara Capital intends to leverage NWSs strengths in corporate finance and consultancy as it forays into stock broking. NWS was established in 2011 with Japanese investments and was subsequently acquired by Royal Ceramics and its Managing Director Mr. Nimal Perera in Apr 2013. Separately the Colombo Stock Exchange (CSE) permitted foreign investors to trade in listed mutual fund, Namal Acuity Value Fund placing no limit on the units that can be held by non-residents.

In bond and debenture news; Hatton National Bank offered Rs.2.0bn in deep discount bonds with an option of another Rs.1.0bn should the initial offer be oversubscribed. The 10 year unsecured senior bond is sold at a discount of 67.715 cents on the rupee. Fitch Ratings Lankas expected rating was AA-. National Savings Bank (NSB) is to issue $500m worth of unsecured, unsubordinated debt to foreign investors at 7.0%. The issue has been rated BB- (Exp) by Fitch Ratings. The yield is slightly higher than the five year bonds issued by Bank of Ceylon earlier this year due to comparatively smaller size and higher risk profile at NSB. Proceeds would be invested in Sri Lanka developments bonds and follows the decision by the government to avoid issuing sovereign debt. Road show destinations include New York, Boston, London and Singapore. Softlogic Finance PLC announced a further issue of Rs.250m in debentures as its initial Rs.250m issue was oversubscribed. The instrument is senior, unsecured and redeemable with a tenure of three years.

Exports grow after 15 months.

Sri Lankas exports grew 6.8% YoY in Jun 13 to $807.4m. The increase is the first since Feb 12 but cumulative exports in the first six months of 2013 remain 4.5% lower than a year earlier. Imports also grew a significant 15.3% YoY in June but were lower 5.8%YoY during Jan-Jun 2013. As a result the cumulative trade deficit was $4.5bn for Jan Jun 2013, 7.1% lower than previous year. CBSL commenting on the periodic performance stated that earnings from tourism, workers remittances, foreign direct investments (FDI) and investments in Government securities showed a noteworthy growth during the first half of 2013. Inflows into government treasuries and securities increased 57.9% YoY in Jan-Jun while long term loans declined 15.4% YoY.

Source: CBSL

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M ont hly Bullet in: Augus t 2 0 1 3

In Business news:

Tourist Arrivals
140 120 100
Thousands

2011

2012

2013

80 60 40 20 -

Tourist arrivals up 9.5% in Jul13. Tourist arrivals in

Jul13 grew 9.5%YoY to 98,944 with arrivals reaching 611,255 for Jan-Jul (+12.5%YoY). Most of Sri Lankas large markets including India, UK and Germany showed stable growth. However there is a cause for concern in the performance of the Middle Eastern market as arrivals in Jul13 declined 49.9%YoY to just 2,751. This key off season market has performed poorly over the last few months due to volatile regional conditions. Chinese arrivals remain strong growing 84.4%YoY to 3,626 although it still represents just 3.4% of the total arrivals. Indian arrivals grew by 29.9%YoY to 15,032. Sri Lankas tourism earnings appear to be growing faster than tourist arrivals which remain an encouraging sign although this could simply be due to higher prices and may not translate into higher margins for the sector. According to the World Tourism Organisation global tourism has shown a surprise improvement with tourist numbers growing 5.2%YoYin 1H13. The report shows growth of 6.2% and 11.6% in tourist arrivals to Asia and South East Asia. Sri Lankas cumulative growth to Jun 13 was 13.1% higher than the same period last year. In other related news, shareholders of John Keells Holdings approved the Waterfront Development project as a Major Transaction. The companys board of directors also resolved to raise Rs.39.8bn from shareholders by way of rights issue and attached warrants. The Waterfront Development Project is Sri Lankas biggest private sector investment at $850m.

Jan Feb Source: SourceSLTDA :SLTDA

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Growth in tourist arrivals Vs. Growth in tourism earnings

Growth in tourist arrivals 2012 Growth of tourism earnings - 2012 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth in tourist arrivals 2013 Growth of tourism earnings - 2013

SourceSLTDA :SriLankaTourism DevelopmentAuthority Source:

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In Business news:

Vehicle Registrations - Growth Rates by Category

Total Registrations 100% 80% 60% 40% 20% 0% -20% -40% -60% -80% Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Trucks, Buses and Tractors Cars, SUVs and Vans 3wheelers 2wheelers

Source: JB Securities Source :JBSecurities 

of the vehicle rather than its engine position and is expected to make certain brands such as the Indian Mahindra trucks cheaper.

Vehicle registrations up 3.3%YoY in Jul13.

Motor vehicle registrations grew 3.3%YoY and 13.9%MoM in Jul13 hinting at a slight recovery in the market. Total vehicle registrations were 27,797 led by motor cars, specifically reconditioned cars from Japan which grew 141.9%YoY and 12.8%MoM. SUV registrations, a category heavily reliant on duty free permits issued by the government, also grew 45.2%YoY and 56.3%MoM. The introduction of a new category for vehicles valued between $30,000$35,000 may also boost registrations according to JB Securities. However there is a lower tax exemption which could increase the cost of the vehicles. The government has revised the tax rate on single cab trucks to correct an anomaly on taxing such vehicles according to the Ministry of Finance. The revised rate will consider the cargo carrying capacity

Moreover in late Aug 2013, CBSL issued a directive that with immediate effect, Letters of Credit facilities opened with commercial banks to import vehicles to require a margin deposit of 100%. CBSL noted that during the year 2013, the currencies of several trading partner economies have sharply depreciated against the Sri Lankan rupee and believes this could lead to higher imports. The move is aimed at avoiding any further depreciation of the rupee on higher imports. In related news Colonial Motors PLC, one of Sri Lankas oldest companies in the automotive industry decided to phase out its vehicle sales operations and restructure itself as a property development and investment holding company. Vehicle sale operations would be carried out solely through KIA Motors (Lanka) Ltd a subsidiary of the company. Moreover Diesel and Motor Engineering PLC, a company servicing both the higher and lower end of the market, reported a 91.8% YoY drop in second quarter net profits as revenue declined 42.2%YoY to Rs.5.0bn.

Tea Production and Exports (milion kgs)

Tea Production 40 35 30
Millions

Tea Exports

25 20 15 10 5 0 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13

Source:Forbes&Walker

Source: Forbes & Walker Website

Tea exports recover but production falls in Jul13 Sri Lankas

13.1%YoY to 3.1m kgs due to adverse weather conditions. Moreover the decision to develop Sri Lanka as a tea hub has met opposition. While the action would increase exports some believe it could lead to the dilution of the brand that is Pure Ceylon Tea.

tea exports recovered in Jul 13 growing 12.6%YoY and 20.3%MoM to 29.9m kgs. However production decreased 6.0%YoY to 22.6m kgs. as high elevation production fell

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In Business news:
Business confidence retreats further in Jul13. The LMD
Nielsen Business Confidence Index experienced a sharp decline falling 14 points to 111. According to Mr. Shaheen Cader, Managing Director of Nielsen Sri Lanka, deteriorating consumer spending capacity is the main concern of businesses. This comes in the wake of a preliminary report on the countrys Household Income and Expenditure for 2012/13 by the Department of Census and Statistics which found that household expenditure was outgrowing household income by as much as 3%. 48% of business confidence survey respondents say their business volumes have decreased from the same time last year. This is a drastic

170 160 150 140 130 120 110 100 90 80

LMD- Nielsen Business Confidence Index

Source: lmd.lk Source: Forbes & Walker Website

increase from 19% in Jun13. Of those polled 33% believe sales volumes will decrease further in the next 12 months up from 24% in Jun 13.

DFCC downgraded by Fitch.

Fitch Ratings (Fitch) downgraded DFCC Banks national long-term rating AA- with a stable outlook. The banks commercial banking subsidiary DFCC Vardhana Bank (DVB) has also been rated as AA- with a stable outlook. The concerns raised by Fitch are similar to those cited in its downgrade of NDB Bank earlier this year. They believe that DFCC could face greater risk as it delves into the competitive commercial banking sphere in Sri Lanka. They also feel that DVBs growth into a core subsidiary of DFCC requires a more integrated view when considering stability.

Dairy farmers to receive assistance. Dairy NDB to acquire Union Bank?

Dailyft. lk reported of a possible takeover by National Development Bank PLC (NDB) of Union Bank of Colombo PLC (UBC) with several rounds of talks already being held. However both banks have not made a public statement. NDB have a stated objective of expanding into the commercial banking sector which earned the bank a downgrade by Fitch Ratings in Jun13 AA-. However the synergies involved in such an acquisition cannot be denied given that UBC has focused on the SME sector which is a sector of expertise for NDB. UBC has a 38 branch network which would also enhance NDBs presence around the island.

farmers are to receive concessionary loans through a Commercial Scale Dairy Development Loan Scheme (CSDDLS) of the CBSL. The communiqu by the CBSL highlights the importance of milk in alleviating nutritional poverty and the inability of Sri Lankas dairy industry to provide the necessary production levels current in demand. The CSDDLS expects to provide concessionary loans for several aspects of dairy farming including but not limited to Purchase of cows (for a farm with at least 25 cows) Fodder production and grass cultivation Farm development and construction of bio-gas units, irrigation systems construction of wells etc. Purchase of machinery and equipment Purchase of freezer trucks for milk transportation and construction of cooling room facilities

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In Business news:

Chinese Tourist Arrivals for 2013

Chinese tourist arrivals 4,000 3,500 , 3,000 2,500 2,000 1,500 1,000 500 0 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Growth year on year 140.0% 120.0% 100 0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0%

Source SLTDA Source:: SLTDA

Sri Lankan Airlines to connect with Lufthansa Airlines. The move is to establish maintenance and repair services

at the Mattala International Airport. The service is expected to be operational as early as Apr14 and would have four bays with the capacity to service Airbus A320 and Boeing 737 aircraft.

The strategy is part of Sri Lankan Airlines attempt to breakeven by 2017 following significant losses (Rs.20.6bn) in 2012. Other plans include the purchase of fuel efficient long haul aircraft and significant improvement in service and destination offering. SLA also intends to begin direct flights to China in 2014 as passenger volumes to Sri Lanka have been steadily increasing. Sri Lankas exports have been continuously declining for almost 15 months now. Although the removal of the GSP concession was not immediately felt subsequent recessions and economic crises in Europe have had significant impact on Sri Lanka. Dr. P.B. Jayasundera earlier in the month re-iterated the governments reluctance to apply for GSP as it would make the country a subsistent economy and encouraged exporters to develop and innovate.

Laugfs Gas to establish terminal in Hambantota. in spite of the government

stating it will not reapply for the concession. Outgoing president of the Exporters Association, Mrs. Dawn Austin, urged the authorities to negotiate export concessions as it could re-vitalise the export sector like no incentive.

Cargills (Ceylon) Plc to transfer retail operations to its fully owned subsidiary Cargills Foods Company (Pvt.) Ltd. The

company is planning to expand its geographic coverage with the development of several hospitals. The first of these will be situated in Negombo, will have between 6070 beds and provide all required diagnostic services. The project is expected to cost Rs.575m and will be wholly owned by Nawaloka Hospitals.

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In Consumer news:
Fonterra besieged on all fronts as contamination scares lead to protests
Fonterra Brands Lanka (Pvt.) Ltd (Fonterra) Sri Lankas largest milk powder provider found itself under siege in Sri Lanka as multiple tests of its products returned positive for bacteria (botulin) as well as chemical contaminants (DCD). The company faced suspension of the sale of its products, contempt of court charges and even large scale protests outside of its factory in Biyagama. The temporary closure of its facilities to safeguard the 755 staff is a measure of the extent to which the situation had developed. The factory and offices were reopened shortly. The gross withdrawal of products and banning of products sales and advertising led to significant fear amongst the general public. Sri Lanka remains heavily dependent on Fonterra products as the company holds more than 60% of the market share. Even though several forums have denounced the manufactured demand for milk powder in Sri Lanka the truth remains that local farmers can only meet one third of the local demand. As such, the continued involvement of such multinationals is certainly a necessity.

Import taxes on big onions and potatoes increased. The duty on a kilogram of

potatoes was increased by Rs.15 to Rs.40 while the duty on big onions was increased by Rs.5 to Rs.35. The latest tax revision is the second in three months. The Ministry of Finance and Planning stated that following a good local harvest of these two vegetables the import hike was necessary to ensure farmers receive a good price for their stocks.

Airtel looks to exit Sri Lanka. There is speculation that Bharti Airtel is considering a

sale of its operations to Etisalat, Sri Lankas third largest mobile phone service provider. Bharti Airtel fourth largest player in Sri Lanka with 1.7 million subscribers entered the domestic market in 2007 but failed to gain headway with the market leaders. The company invested over $300m but it has proven hard to recover given the highly cost competitive local market. According to dailymirror.lk citing persons familiar with the development the company is valued at between $110-130m.

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Mo n t h l y B u l l e t i n : August 2013
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