Economic & Market Bulletin
[August 15, 2005]

	Today's Stories
	FEATURE: Economic & Market Bulletin

A weekly publication of the Economic Affairs Division of the Ministry of Foreign    Affairs
Volume 2:Issue 22 
12^th August 2005 

ADB, JBIC loan of Rs. 600 million for plantation sector

• The Ministry of Plantation Industries through the Plantation Human Development Trust (PHDT) will implement a major development programme in the plantation sector with the assistance of the Asian Development Bank (ADB) and the Japanese Bank for International Corporation (JBIC). 

• The total investment of the project is estimated at Rs. 600 million and is to be implemented in two phases; estate infrastructure development and community development programmes. 

• The agreements on these development programmes will be signed with respective donor agencies and the funds are to be obtained by way of a long-term loan. This programme is known as the Plantation Development Project (PDP). 

Sri Lankan firms invited for FOODEX JAPAN 2006 

• Sri Lankan firms are being invited to participate in the JETRO (The Japan External Trade Organisation) Zone at the FOODEX Japan 2006.FOODEX Japan is the world class Food and Beverage trade fair, which will hold its 31^st exhibition at Makuhari Messe (Nippon Convention Centre) in Japan from March 14 to 17, 2006.

• JETRO, as one of the main sponsors, will set up the JETRO ZONE at the fair giving opportunity for developing countries to find their market in Japan. 

• Exhibits include: food, Agricultural products, Bread and Cereal, Confectionary, Dairy Products, Dietetic Products, Eggs and Vegetables, Herbs and Spices, Meat and Meat Products, Oils, Organic Products, Sea food, Seasonings and Condiments, Soup Stock.

Beverages: Beer, Brandy, Liqueurs, Spirits, Whiskey, Wine, Coffee and Tea, Fruit Juice, Mineral Water and Soft Drinks.

• JETRO Colombo office said participants at JETRO Zone should submit their application to EDB (Export Development Board) on or before August 11, 2005 using EDB prescribed forms.  Others, who wish to apply directly, can obtain the details from the web site: http://www.2.jma.or.jp/foodex/en/index.html.  The deadline for direct applications is October 14, 2005. 

New Agreements signed by BOI

• Ankit International Lanka Private Limited signed an Agreement with the BOI to start a project to manufacture in containers and tin components for export.  These tin containers will be exported directly to India.  The project is an Indian investment and is worth Rs. 39 million.  The factory is located at Lot No. 1, Dankotuwa Industrial Park, Dankotuwa.   

• Unit Energy Lanka Private Limited signed an Agreement with the BOI to set up a mini hydro power plant.  This project is worth Rs. 850 million and is a joint venture between companies from Sri Lanka and Germany. The plant is located at Carolina Est., Watawala.   

Aureos Capital Ties Up with Commercial Bank 

• Aureos Capital, which is based in London, has entered into an Agreement with Commercial Bank of Ceylon Ltd. Through this Agreement the two organisations will jointly promote private equity financing for Bangladeshi companies in Dhaka. 

• In 2003 Commercial Bank acquired Credit Agricole Indosuez (CAI) operations in Bangladesh consisting of two branches in Dhaka and Chittagong and two booths in Gulshan and Sonargaon. 

• Commercial Bank, while continuing CIA’s strategy, has further strengthened the retail banking side in Bangladesh by opening one more branch at Dhanmondi. This represents the first acquisition of a foreign bank by a Sri Lankan Bank and paves the way for Commercial Bank to become a regional player. 

HSBC invests Rs. 3 billion in Sri Lanka

• The global banking giant HSBC invested a further Rs. 3 billion in Sri Lanka recently.  HSBC is the largest foreign Bank and the third largest private Bank in terms of capital. 

• With its Rs. 3 billion investment, the total capital of HSBC in its Colombo office has exceeded Rs. 9 billion. 

New tourism zones in over 6000 acres 

• Sri Lanka is exploring the creation of new tourism zones in over 6000 acres. One such zone would be set up in Kalpitiya and 400 acres have been identified and this location would be converted to an upmarket destination, with theme parks, golf courses, cable cars and star class hotels and luxury villas. 

• Over 850 acres in Arumugam Bay and 80 acres in Nuwara Eliya also have been allocated. In addition to that, 1200 acres in Bentota have been allocated.

• It is envisaged to sign  a Rs. 3.5 billion tourism infrastructure development project with the JBIC (Japan bank) to develop specific areas in Sigiriya, Anuradhapuraya, Negombo, Nuwara Eliya and other areas. Srilankan Airlines would also invest US 1million dollars for marketing. 

Japan Grants Rs. 370 million for education 

• The Government of Japan through the Japan International Cooperation Agency (JICA) will provide Rs. 370 million for developing the education sector in Sri Lanka.The funds will be used for the new project  “Improving School Management to Enhance Quality of Education with Special Reference to Science and Mathematics”.  

• The Project aims to expand activities in the country’s education sector through the capacity building of the zonal education offices as well as school staff and improving the quality of education with special reference to science and mathematics. 

• Kurunegala, Wellawaya, Bandarawela, Trincomalee and Jaffna in the North Western, Uva and North East Provinces have been selected as the target areas of this new project for three years commencing from October, 2005.   

EU releases Euro 45 million for Tsunami recovery

• The European Commission released its first tranche of Euro 45 million for long term post Tsunami reconstruction operations in Sri Lanka.

• The amount of Euro 39.5 million approved by the EU on Monday will be spent to reconstruct the road from Matara to Batticaloa, a stretch of 270 km on the Southern and Eastern costal belt. 

• The balance 5.5 million Euro will support livelihood recovery in the areas affected by the Tsunami in the North and East.  This will support approximately 5000, affected people to restart their traditional livelihoods, particularly in the fisheries, agriculture, livestock and the small industry sectors and some approximately 2000 others to find alternate sources of income.

• Implemented through the United Nations Development Programme (UNDP) the community development project will also fund the establishment of boat yards, ice packaging and food processing plants, provision of tools and textile machinery. 

SAFTA talks to continue in Kathmandu from 31^st August

• Official negotiators form the seven South Asian Association for Regional Cooperation (SAARC) member countries will meet in Kathmandu from August 31^st to 2^nd September in a bid to wrap up the long drawn negotiations on the proposed South Asian Free Trade Area (SAFTA).

 EXCHANGE  RATES ON 11^th August,2005 

 EXCHANGE RATES OF GULF CURRENCIES 

Source: Financial Times 12^th August,2005.