SEPTEMBER 2009

Trustee & CustodianLicensed by the

CEYLON ASSET MANAGEMENT

• Two Investment Funds:•Ceylon Index Fund - TOP 10 Companies on the

Stock Market

•Ceylon Income Fund - Interest yielding Fund

• The only Index Fund Manager in Sri Lanka, with a ten-year track record

• TOP 10 Index - in-house maintained “managed” index

BOARD OF DIRECTORS • Ravi Abeysuriya (Chairman)

Chartered Financial Analyst (CFA) USA, Fellow Member of the Chartered Institute of Management Accountants, UK (FCMA). Masters in Business Administration (MBA). Head - Strategic Business Development/Shared Services of Hayleys PLC. Director of Sri Lanka Insurance Corporation (SLIC). Former CEO of Amba Research and Fitch Ratings.

• Dulindra Fernando (Managing Director)

The founder of Ceylon Asset Management Co. Chartered Financial Analyst

(CFA) USA. A member of the Institute of Chartered Accountants in Australia (CA). Bachelor of Economics, Monash University, Australia. Former CEO of MAS Investments.

• Ravi Fernando

Masters in Business Administration (MBA). Fellow Member of the Chartered

Institute of Marketing, UK. Post Graduate Certificate in Sustainable Business at Cambridge University. Guest Lecturer on Strategic Corporate Sustainability at INSEAD, France. CEO of Sri Lanka Institute of Nanotechnology (SLINTEC) and Director - Branding & Strategic Sustainability of MAS Holdings. Former MD/CEO of Reckitt Benckiser (Lanka)

BOARD OF DIRECTORS - Contd…

• Sivendran Vettivetpillai

Chartered Financial Analyst (CFA), USA. CEO of Auroes Capital Ltd - UK, an

International Private Equity Firm.

• Romesh Jayawickrama

An Asian Equities Specialist, former Head of Equity Sales for Singapore and

Malaysia at CLSA, Director of Equities for ING Securities Singapore and Vice President for the Japanese Investment Bank, Nomura International in London.

• Michael Preiss

Chartered Wealth Manager. Professor and Board Member for Middle East and

Africa, American Academy of Financial Management. Director and Research Fellow, the Asian Bond Market Forum (HK). Previously, Adjunct Associate Professor, Singapore Management University and Guest Lecturer, The People’s Bank of China, China’s Central Bank. A Graduate of the European Business School with a major in Finance and International Economics.

SRI LANKA’S ECONOMY

• Stable Rupee

• Declining Interest Rates & Inflation

• GDP grew at 6.42% over last 5 years

• IMF, World Bank & ADB support

WHY INVEST IN SRI LANKA?

• Infrastructure Projects- Hambantota Port to fuel ships travelling between East & West- Power Projects: Norochalai, Trincomalee & upper Kotmale- Southern Highway, Airport Highway, North-East Highways- Railway Network expansion

• Two New Provinces to join Economy - Northern & Eastern provinces to grow rapidly- New markets & projects

• Sectors poised to bounce back in 2010- Tourism - Telecom- Banking- Ports- Agriculture

TESTIMONIALS

“I have seen that when a long war like this ends, there rise enormous opportunities for investment. Sri Lanka will

need to be rebuilt now and there’s little capital within the country.”

Jim Rogers - Co-Founder of Quantum Fund

” It is going to be one of the best investment opportunities on the planet for the next two to three years.”

Roman Scott - Singapore based British Private Equity Manager

“Looking for private equity or strategic investment opportunities in Sri Lanka.”

Mark Mobius - Chairman of Templeton Asset Management Ltd.

INVESTMENT COMMITTEE

Michael Preiss - CWAEconomic Advisor - Ceylon Asset Management Co.

Ltd.

Mangala Boyagoda - MBA, Debt Market SpecialistMD/CEO - Wealth Lanka Management (Pvt) Ltd.

Dulindra Fernando - CFA, CAMD - Ceylon Asset Management Co. Ltd.

Chaminda Silva - CFARisk Management & Research Analyst

TOP 10 INDEX SELECTION CRITERIA

• Market Capitalization (i.e. size of the company)

• Liquidity of the Stock (i.e. turnover of the stock)

• Diversification of the Fund (Two companies from each sector)

• Reviewed quarterly by the Investment Committee

JOHN KEELLS HOTELS

ASIAN HOTELS & PROPERTIES

THE TOP 10 COMPANIES

THE COLOMBO TOP 10 INDEX

COMPANY NAME SECTORPRICE AS AT

SEPT 18, 09

ISSUED QUANTITY

MARKET CAPITALIZATION

%

SRI LANKA TELECOM PLC TELECOMMUNICATIONS 46.00 1,804,860,000 83,023,560,000 20.11%

JOHN KEELLS HOLDINGS PLC DIVERSIFIED HOLDINGS 155.00 612,001,295 94,860,200,725 22.97%

DIALOG TELEKOM PLC. TELECOMMUNICATIONS 6.00 8,143,778,405 48,862,670,430 11.83%

COMMERCIAL BANK OF CEYLON PLC BANKS FINANCE & INSURANCE 177.75 233,497,207 41,504,128,544 10.05%

DISTILLERIES COMPANY OF SRI LANKA PLC BEVERAGE FOOD & TOBACCO 88.50 300,000,000 26,550,000,000 6.43%

HATTON NATIONAL BANK PLC BANKS FINANCE & INSURANCE 165.00 189,329,400 31,239,351,000 7.57%

NESTLE LANKA PLC BEVERAGE FOOD & TOBACCO 400.00 53,725,463 21,490,185,200 5.20%

AITKEN SPENCE PLC DIVERSIFIED HOLDINGS 894.00 27,066,403 24,197,364,282 5.86%

JOHN KEELLS HOTELS PLC HOTELS & TRAVELS 22.50 1,092,110,085 24,572,476,913 5.95%

ASIAN HOTELS & PROPERTIES PLC HOTELS & TRAVELS 75.00 221,387,650 16,604,073,750 4.02%

TOTAL MARKET CAPITALIZATION OF TOP 10 INDEX 412,904,010,844 100.00%

TOP 10 MARKET CAPITALIZATION AS A % OF TOTAL CSE MARKET CAPITALIZATION 956,767,545,576 43.16%

CEYLON INDEX FUND (CIF)

• An “enhanced” Index Fund

• Enhancements:

- Tracks an in-house index, “TOP 10 Index”

- Maintains 5% in cash as per SEC liquidity requirement - Can invest upto 10% in IPO’s

• The TOP 10 Index covers 43% of the total CSE Market Capitalization

PERFORMANCE• YTD 2009 (September 18, 2009)

Ceylon Index Fund - 76.46%

• Top performing Fund in 2006 (49.2%)

• Strong correlation to ASPI market performance

• Annual distributions & capital gains are

tax free

• Avoids high trading costs - brokerage costs

of 1.4% per trade avoided

TOP 10 INDEX PERFORMANCE

500

750

1,000

1,250

1,500

1,750

2,000

Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09

Index Value as at18-09-2009

1,381.06

INDEX PERFORMANCE IN 2009

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2-Jan

18-Jan

3-Feb

19-Feb

7-Mar

23-Mar

8-Apr

24-Apr

10-May

26-May

11-Jun

27-Jun

13-Jul

29-Jul

14-Aug

30-Aug

15-Sep

TOP 10 ASPI TB

Growth up to 18-09-2009

TOP 10 86.50% ASPI 95.57% T-BILL 11.50%

RISK• Exposure limited to Market Risk

• No Trading Risk or Fund Manager Risk (i.e. eliminates the risk of bias and speculation)

• Trustee & Custodian of the fund is Deutsche Bank

• Fund is regulated by the SEC, Unit Trust Code & Regulations

• Fund Audited by PriceWaterHouseCoopers

• Top 10 companies have sound Corporate Governance & are well researched by Analysts

VALUATION & TRANSPARENCY

• Fund invested directly into Deutsche Bank Account

• Open-Ended Fund - can invest/withdraw anytime on daily published price

• Bank Cheque available in 2 working days of Redemption Notice

• Valuations - daily prices published in newspapers and website

WHY INVEST WITH CIF?• Healthy Returns

• Low Fees - Index Fund Management Fee: 1% per year

• Low Costs - Minimal transaction costs due to absence

of trading

• Low Risk - Index Fund Management style

• Liquidity to invest/withdraw anytime

• Regulatory Framework

HOW TO INVEST

• Complete Application Form

• Provide Cheque or Bank Draft in the name of “Ceylon Index Fund” (A/C No: 41590-000 of Deutsche Bank)

• Corporate Investors:

- include copy of Company Business Registration - Letter of Authorization on Signatories

UNIT TRUST CERTIFICATE

UNIT PRICES(As at September 18, 2009)

Ceylon Index Fund (CIF)

NAV- Rs. 26.61

CEYLON ASSET MANAGEMENT CO. LTD.

281, Union Place, Colombo 2, Sri LankaHot Line: + 94 71 703 0000

T: + 94 11 739 4000

F: + 94 11 739 4007

E: info@ceylonam.com

W: www.ceylonam.com

CEYLON INDEX FUND

BLOOMBERG CODE - CEYINDF:SL