ECONOMYNEXT- Sri Lanka has requested proposals from banks to manage an exchange restructured bonds as the Indian Ocean island begings talks to re-structure international sovereign bonds this week.

The firm should have experience being a “Dealer Manager or similar in sovereign bond exchange
offers, consent solicitations and other liability management exercises in relation to
sovereign bonds” within the last five years, a notice posted on the Finance Ministry website said.

Applications should submit a proposed execution strategies for the Exchange Offer, including proposed execution timeline and strategy for maximizing the chances of success of the Exchange Offer.

Sri Lanka is starting discussions with bondholders this week in London to restructure bonds.

Related Sri Lanka team to Europe to begin negotiations with bondholders: President

According to previous information as least a 30 percent hair cut and cuts in coupons are requested.

Sri Lanka’s sovereign bonds are now being quoted at around 58 to 59 cents to the dollar.

Bondholders are keen to have so-called GDP linked bonds tied to economic performance, though Sri Lanka is not keen on so-called ‘downside bonds’ initially proposed.

The exchanged bonds also have to be comparable to that of the bilateral creditors.

The finalization of bilateral creditors may also await the terms of an in-principle deal with the sovereign bondholders, Indrajit Coomaraswamy, an advisor to Sri Lanka’s government said last month.

Related Sri Lanka may need private creditor deal to finalize official MOUs.

President Wickremesinghe has said he hopes to wrap up bond restructuring by June-July before elections.
(Colombo/Mar18/2024)

ECONOMYNEXT – The Development Lotteries Board will introduce lottery tickets via digital technology, its Chairman and CEO Ajith Gunaratne Narangala has said.

“The board has initiated the introduction of lottery tickets via digital technology, aiming to provide consumers in the country with a novel experience,” Narangala was quoted in a statement by the president’s media division.

“Measures have been implemented to boost the prize money for both regular and newly introduced special lottery tickets of the Development Lotteries Board.”

DLB, a state-owned enterprise that is part of a lottery oligopoly, posted the highest profit in its 40-year history of 3.6 billion rupees in 2023. “The DLB recorded a profit margin of 32% for the fiscal year 2022-2023, double the previous year’s figure.”

Development Lotteries Board is one of the state-owned enterprises to be registered under the Companies Act No 07 of 2007 and transferred to a holding company. (Colombo/Mar28/2024)

ECONOMYNEXT –  The local franchisee of U.S. brand McDonald’s is not a subsidiary of Abans PLC as widely claimed by local media but majority of its stake is owned by the company’s managing director, the Sri Lankan listed company said.

Sri Lanka’s Colombo Commercial High Court last week issued an order preventing the island’s McDonald’s restaurant franchisee from using the brand.

Local reports said McDonald’s Corporation had sought an order preventing Abans Plc from selling McDonald’s food items in Sri Lanka.

“The local franchisee of McDonald’s is International Restaurant Systems (Private) Limited incorporated under the Companies Act No 7 of 2007,” Abans said in a statement to the Colombo Stock Exchange, dissociating itself form the court case.

“The majority shareholder of the said company is Mr. Rusi Pestonjee who owns a 98.73% stake in that company, and who is also the Managing Director of Abans PLC.”

“International Restaurant Systems (Private) Limited is not a subsidiary nor an associate of Abans PLC or its parent company Abans Retail Holdings (Private) Limited.”

“Due to the said reason, the financials of International Restaurant Systems (Private) Limited are not consolidated with the financials of Abans PLC.”

The court order is effective till April 4.

McDonald’s has a raft of restaurants in Colombo and suburbs including Kotahena, Nugegoda, Kiribathgoda, Battaramulla, Kollupitiya, Rajagiriya, Welisara, Mount Lavinia, Colombo City Centre, Macleod Road restaurant and Shangri-La restaurant.

McDonald’s had entered into a Development Agreement with the local franchise on August 21, 1997.

McDonald’s has stated that the basis of the Development Agreement has ceased to exist due to the actions of the franchisee and does not desire the existing franchisee to operate any restaurant under the name McDonald’s, reports said. (Colombo/March 28/2024)