Sri Lanka First Capital profits soar on bond gains

(L-R) MD & CIO of Global Business at KRX Doyeon Kim, President & CEO at KRX Sangwan Ahn, KRX Chairman Jiwon Jung, CSE Chairman Ray Abeywardena, SL Ambassador to South Korea Manisha Gunasekara, CSE CEO Rajeeva Bandaranaike, CSE Head of Finance and Administration Kusal Nissanka

Nov 16, 2009 (LBO) – Sri Lanka’s First Capital Holdings said profits in the September 2009 quarter soared over ten times to 168.1 million rupees from 16.1 million on bond gains from is primary dealer unit. Sri Lanka’s bond yields have plummeted over 2009 as the Central Bank cut interest rates and foreign capital flowed into the economy.

First Capital said First Capital Treasuries Limited, the primary dealer headed Mahinda Gokakandarachchi was sitting on further unrealized gains of 419 million rupees on portfolio of 8.7 billion rupees.

First Capital group said it expected opportunities for growth after the end of the war and expected de-regulation.

First Capital Treasuries is one of four non-bank primary dealers in the country. The other units of the group are First Capital Asset Management, a fund manger which deals in government and corporate paper and First Capital Markets.