Sri Lanka stocks firm, Seylan Bank heavily traded

Sri Lankan Police forming a human chain in parliament to protect the Speaker and enable a vote.

Jan 23, 2009 (LBO) – Sri Lankan share prices stayed in positive territory Friday, although barely changed, with heavy trading in Seylan Bank whose controlling shareholder has said it wants to sell out. Tokyo Cement fell 6.25 percent (10 rupees) to 150 rupees.

The company announced a deal with Customs in an under-invoicing investigation where the authorities agreed not to try to recover value added tax and Tokyo Cement agreeing to co-operate in the probe into the alleged under invoicing.

Customs is seeking to fine the firm up to 2.5 billion rupees in the under-invoicing probe.

Sri Lanka Telecom ended up almost three percent (one rupee) at 36.50 rupees while Commercial Bank went up two rupees to 92 following its three rupee rise yesterday.

To receive instant alerts from LBO on your Dialog mobile type ‘lbo’ and send to 678

The All Share Price Index ended up 0.67 percent (11.67 points) to end at 1,761.81 while the more liquid Milanka went up 0.53 percent (10.21 points) to close at 1,929.75.

Turnover was 92.6 million rupees.

Shares of Seylan Bank., whose controlling shareholder, the Ceylinco group wants to sell out to raise funds to pay off depositors of a collapsed unlisted subsidiary, were the most actively traded.

Seylan Bank shares shot up 22.5 percent or eight rupees – the second highest rise – to end at 43.50 rupees.