Sri Lanka cement company resumes trading after two years

Sri Lanka cement company resumes trading after two years
Published: 08 January 2009

Lanka Cement said it had resumed trading in cement with the chartering of a vessel to make regular shipments to Sri Lanka’s northern Jaffna peninsula.

It said in a stock exchange filing its resumption of trading may have contributed to the sudden increase in the trading volumes and price of its shares on the Colombo bourse.

"Lanka Cement PLC has recommenced trading in cement after a lapse of two years," the statement said.

"At present the company is importing regular shipments of cement from Pakistan and its brand ’Lanka Cement’ is available in the market at competitive prices.

"The revival of trading operations in Colombo and Jaffna, the company believes has contributed to the sudden increase of Lanka Cement shares."

Lanka Cement shares closed up 25 cents at 8.00 rupees, Wednesday.

The firm said it was also shipping cement to Jaffna where it owns a defunct factory and a rich limestone deposit.

Lanka Cement was the subject of speculative trading last year when it became known that foreign cement firms were interested in reviving the plant in Kankesanturai in Jaffna.

Two Indian firms, Ramco and Birla, as well as the local unit of Holcim, have expressed interest in the Jaffna plant.

The government has said it will call for proposals once the security situation in the north is good enough to revive commercial operations.

Government forces, on the offensive against Tamil Tiger rebels, have driven back guerrilla forces out of artillery range of the peninsula.