business Sri Lanka

Sri Lankan government’s move to broad base engineering education will boost women participation in development activities of the country to a great extent, said Architect Prof. Chitra Wedikkara.

Despite the fact that industry is considered as a male dominated career, it currently employs more women in areas such as Engineering, Architecture, Quantity Survey and design.

Wedikkara made these remarks participating in a discussion on, ‘Women Friendly Cities Challenge’, jointly organized by the National Chamber of Commerce, Sri Lanka and World University Service of Canada (WUSC) recently.

“Nerveless, female participation in the area of technical education remains notably low. We have looked at women to be included in sub sectors of the construction industry such as painting, tiling, plumbing and plastering.

During the last year, 40 selected women across the country undertook training in painting.

This year, plans are also underway to provide training to another 40 women in painting, 20 women in tiling and 10 women in plastering.”

Noting that very less women are getting into development activities in Sri Lanka, Wedikkara said that Moratuwa is the only university that has the highest female student intake for engineering education in Sri Lanka mainly due to its location and, female students comprise close to 60% of overall students at Moratuwa University.

While female engineering students in rest of the faculties, located outside Colombo consists of 20%.

She also urged the need to introduce more women friendly cities to enable women to fully participate in the economy of the city as well as the country. 

Overseas Realty (Ceylon) PLC recorded a Group Revenue of Rs 2,579 million for the six months ended June 30, 2018, an increase of 118% over the corresponding period of last year.

The Group Gross Profit increased by 80% to Rs 1,606 million and Group Profit After Tax grew by 29% to Rs 2,087 million, compared to the previous period.

Revenue of Rs 1,116 million was recorded from property leasing at the World Trade Center (WTC) Colombo, an increase of 8% in comparison with previous period. The Company is in the process of refurbishing and upgrading its common facilities with the intention of providing a better service to the tenants of the building. Revenue from other services was Rs 172 million, an increase of 15% over the previous period. Revenue of Rs 1,291 million was recorded from Apartment Sales of Havelock City, compared to Rs 2 million in previous period.

Havelock City Phase 3 comprising two towers, Stratford and Melford with 304 luxury apartments is currently under construction with almost 56% construction completed and is expected to be handed over by mid-2019. Over 60% of Phase 3 apartments have been pre-sold as at 30 June 2018. Phase 4 which is also under construction comprising two more towers, Peterson and Edmonton with 340 Luxury Apartments is expected to be launched to the market in August and completed by mid- 2020.

Anchoring the Havelock City Residencies is the Havelock City Commercial Complex which comprises an iconic 50 storeyed office tower and a shopping mall built to international standards, servicing the Life Style needs of the catchment.

The Group Net Asset Value per Share as at June 30, 2018 stood at Rs 29.98 and the earnings per share for the period stood at Rs 1.68.

In 2017 Sri Lanka’s motor vehicle population increased by 7% to 7.2 million says the annual report on the country’s motor vehicle market published by the Ceylon Chamber of Commerce. 2017 saw a rise in import expenditure (5%) despite a fall in import volume (11%) with yearly new registrations declining by 9%.

This report prepared by the Economic Intelligence Unit of the Ceylon Chamber of Commerce, provides a detailed statistical analysis and industry overview of Sri Lanka’s Motor Vehicle Market, featuring the latest information on registration; vehicle population; imports of vehicles by vehicle category, top brands imported under each vehicle category and overview on the global motor vehicle market and global electric vehicle market. 

Sri Lanka Insurance (SLI) yesterday announced the changing of its corporate identity to coincide with the organization’s three-year plan to improve processes and introduce products and features that address the needs of the modern consumer.

Sri Lanka Insurance’s new corporate logo is fresh and modern, highlighting the brand’s position as a strong dynamic leader who is relevant and focused on adapting to the changing needs of customers.

Sri Lanka Insurance is moving forward and adapting to times of change; the company is well-versed with the changing habits of its customers and keeping up with game-changing new technologies and products that include a total Life solution that caters to every stage of a person’s life cycle with ten Life Insurance policies to choose from. The company has also launched the only diabetic policy called Comprehensive D+, which gives a growing diabetic population in the country a sense of relief. Other additions to the life basket include the Rs.10 million Cashless Medical Card which allows customers to make payments with their Cashless Medical Card, without having the hassle or the worry of having to pay upfront across all hospitals in the island.

Sri Lanka Insurance has also expanded and revamped its Retirement Scheme ensuring pensioners get the highest returns on their pension plans.

Showcasing strength and stability with the recently affirmed AA+ (lka) rating from Fitch Rating, Sri Lanka Insurance is led by a dynamic group of individuals, from the appointment of industry specialists to its corporate management team, to a team of over 2,500 members that have extensive knowledge in every aspect of insurance and are spread over a 148 branch network across the island, which is set to expand further, ensuring convenience to the customer.

It has also invested significantly to improve IT infrastructure so that processes can be made more efficient. 

Sri Lankan and South Korean officials have finalized policy recommendations and a framework to develop the future Colombo Municipal Council (CMC) tax administration system by capitalizing the experiences of the advanced tax information system in Seoul, South Korea.

Colombo is the economic centre of the country experiencing rapid urbanization and land development resulting on higher tax rates imposed on land and buildings which account for 28% of total budget of CMC. However, due to existing manual taxing method, CMC is currently facing serious challenges such as uncertain data on taxable property, and missing to charge tax and inefficient administrative procedures.

Therefore, there is an urgent need to build a strong tax information system, especially for the Colombo city which generates considerably high amounts of tax, according to a Korean Embassy statement.

The Sri Lankan and South Korean officials continued consultations through the Knowledge Sharing Program (KSP) policy consultation supported by the Export-Import Bank of Korea (Korea Eximbank) to set up a master plan for the establishment of an advanced automated taxation system for CMC. The program was conducted successfully from February to July 2018. The final dissemination seminar was held on July 26 in Colombo with the participation of Colombo Municipal Council (CMC) officials including the Deputy Municipal Commissioner Thamara Mallawarachchi.

Following the consultations, an improvement model has been proposed which is largely aimed at components such as standardization of administrative work among CMC’s internal divisions, establishment of a system for external linkages with other land related agencies, integration of databases, improvement of efficiency in rates assessment by linking land information with the existing GIS system, digitalization of assessment related formats, and establishment of a portal for taxpayers.

Furthermore, future directions have been proposed including revitalizing the Single Window Center to integrate all local taxation services, the Embassy statement said.

If this proposed framework for automated taxation gets implemented in future, it will not only help CMC to become a model in taxation and administration to other local authorities in the country but it will also contribute to Sri Lankan government’s plan to establish the e-government to reform taxation administration and cut fiscal deficits in the long-run. 

To provide a better economical and friendly transport mode for tourists, Lanka’s first tourist-friendly Tuk Tuk service was launched by Sri Lanka Tourism Development Authority at Galle Face Green. The project is implemented under the Budget proposals presented by Finance and Media Minister Mangala Samaraweera for the year 2018. Prime Minister Ranil Wickremesinghe was the Chief Guest at the event while Ministers Mangala Samaraweera, Japanese Ambassador in Sri Lanka Kenichi Suganuma, Indian High Commissioner Taranjit Singh Sandhu and Colombo Mayor, Rosy Senanayake participated. Picture by Rukmal Gamage 

Leading herbal healthcare brand Baraka, in its quest to improve the quality of human life, held a pharmacy education program enhancing the knowledge of Pharmacy personal of the Kurunegala and suburb pharmacies and Ayurveda outlets.

The program focused to discuss new trends in healthcare and the important role of the pharmacies as care giving personal and how they could add value in healthcare management. A good presence of over 90 pharmacy personnel attended the event.

The Key note speaker Dr. S.K.R Muthugale, Consultant Ayurveda Govt. Hospital Kurunegala, in his address emphasized the important role pharmacies play in dispensing and advising patients. “With the growing incidence of non-communicable diseases today understanding the relationship of lifestyle and treatment and enhancing one’s knowledge in this area would supplement the role of the pharmacists”.

R&D Officer of Baraka Dr. Samanthi Jayarathna, in her address briefed the delegates on the various quality certifications received for BARAKA and their importance in ensuring product standards. BARAKA being exported to many countries around the world are required to meet international standards for quality and safety.

The process of its modern state of the art factory in Ratmalana, producing herbal supplements, registered with the Dept. of Ayurveda, was also highlighted. 

OPPO recently initiated ‘Incentive Holiday Tour’ Program for their loyal Business Partners. The first batch consisting of twenty one best performed business partners was on a four-day tour to Bangkok and Pattaya in Thailand recently.

‘Our business partners are our true strength. We are enjoying an enviable position in Sri Lankan market today and we are happy to say that our business partners are an integral part of that achievement and journey. We take it as our pleasure and honour to commence this incentive program and hope to continue with similar programs in the future’. Bob Li – Chief Executive Officer OPPO Sri Lanka commented.

Arron Yao Marketing Manager, OPPO Sri Lanka also accompanied the business partner tour.

SDB bank has organized an islandwide Lakdaru Scholarship Seminar Series for Grade 5 students.

This was carried out as a CSR project and few of the seminars were from Tamil medium too. The final seminar of the series for 2018 was held on July 21, at Cinecita Hall, Nuwara Eliya.

In parallel to the Scholarship Seminar Series, there was separate seminar for parents regarding development of skills and attitudes of children and child philosophy. Further, parents were instructed regarding their financial administration and banking activities at the same venue.

During the seminars, there was an opportunity to open Lakdaru accounts. Special features of the Lakdaru account include attractive gift schemes, a free hospitalization insurance cover up to Rs.50,000/-, rewards for educational achievements and an additional interest than normal savings.

Seylan Bank opened its doors for customers in the Hettipola area recently, located at Kurunegala Road, Hettipola, the new branch was opened by Seylan higher management, customers and well-wishers.

With the 30 year experience, Seylan Bank strongly focuses on increasing its branch network as a part of its strategy to drive innovative financial solutions and enable retail and corporate customers across Sri Lanka to avail the unprecedented benefits offered through its Current and Savings accounts, Fixed Deposits, Vehicle and Personal loans, leasing facilities and Credit Card propositions.

In addition, Seylan Bank also successfully concluded its Riyapola program in the Hettipola area where the bank sold an array of vehicles, thus fulfilling many customers’ aspirations. 

Bochum Lanka Family Restaurant, was opened at Maradana Road,Beruwala recently, Minister Dr. Rajitha Senaratne was the Chief Guest at the occasion.

The opening was held under the patronage of the Chairman Bochum Lanka Family Restaurant, M.T.M. Rizwan.

Chairman Urban Council Beruwala Mazahim Mohomad, M.M.M. Amjad SLFP Chief organizer Beruwala, were also present at the opening ceremony.

People’s Leasing and Finance PLC signed a Memor and ndum of Undersganding (MoU) with popular film TV actor Hemal Ranasinghe appointing him as the PLC’s Brand Promoter.

The occasion took place at PLC head office at Borella and the MoU was signed by actor Hemal Ranasinghe and Sabri Ibrahim, CEO and General Manager, PLC on behalf of the company.

As per the MoU Hemal Ranasinghe will contribute towards promoting PLC’s financial products and services. Hemal Ranasinghe has a rich profile as an award winning popular film and TV star, model and a dancer.

Sabri Ibrahim, CEO and General Manager, PLC speaking at the occasion of appointing Hemal Ranasinghe as the Brand Promoter of PLC said, “People in Sri Lanka see PLC as a highly reputed and socially responsible finance company. Hemal Ranasinghe too is a personality who has built a solid image in the society and who is loved y the masses of this country. Hence PLC values the services of Hemal Ranasinghe as its Brand Promoter. We believe via his attraction our financial services will be positioned more steadily in people’s minds.”

After signing the MoU with PLC Hemal Ranasinghe said, “This is the very first occasion that I agreed to be the Brand Promoter of a company. The significance is being able to work for a mutual cause with a highly reputed company in Sri Lanka.

People’s Leasing and Finance PLC was commissioned in 1995 as a wholly owned subsidiary of Sri Lanka’s biggest state bank in Sri Lanka, the People’s Bank. Today, People’s Leasing is currently the market leader in the non-bank finance sector in the country. Fitch Rating Lanka has assigned PLC a credit rating of AA-(lka) making it the highest rated finance company in the country.

PLC is also the only Sri Lankan finance company to have two international ratings. Among these one is equal to the Sovereign from Standard and Poor’s (‘B+/B’) and the other is one notch below the Sovereign from Fitch Rating International (‘B’).

National Development Bank PLC [NDB] recorded impressive results for the six months ended June 30, 2018, continuing the strong growth it recorded last year.

The Bank recorded an operating profit before tax on financial services of Rs 4.81 billion, a 26% year-on-year [YoY] growth. Operating profits from core banking activities excluding equity income increased significantly by 53% YoY to Rs 4.25 billion, compared to Rs 2.79 billion in the comparative period.

An impressive 43% YoY growth was recorded in Net Interest Income (NII) to Rs 6.8 billion. Within NII, interest income grew by 15%, benefiting from enhanced loan volumes generated during the period under review, and effective pricing of the loan book.

Interest expenses grew only by 5%, directly benefiting from the improved funding mix of the Bank, with greater reliance on customer deposits. This is reflected in the Bank’s loans to deposits ratio of 103% in 1H 2018 compared to 108% in 1H 2017.

Accordingly, the overall net interest margin [NIM], based on the total assets of the Bank improved from 3% in 2017 to 3.43% by end 1H, 2018. Net fee and commission income grew by 27% to Rs 1.45 billion.

Total operating income grew by an impressive 30% to RS 10.1 billion, whilst the same at the Group level increased by 38% to Rs 10.3 billion.

Marking a new milestone in the Bank’s growth journey, total assets of the Bank crossed Rs 400 billion to reach Rs 417 billion in 1H 2018. This is a 9% growth over the year end position of 2017.

The assets growth was supported by the growth in the loans and receivables by 10%. Accordingly, loans and receivable to customers crossed Rs 300 billion at the end of 1H 2018to reach Rs 301 billion.

NDB Group Chief Executive Officer, Dimantha Seneviratne said continuous improvement in financial performance recorded by the Bank demonstrates the intrinsic capabilities of NDB, which are now being unleashed through a meticulous strategy execution.

Monetary Board of the Central Bank has decided to cancel the License issued to the Standard Credit Finance Limited (TSCFL) with effect from July 25. Accordingly, TSCFL is not permitted to engage in Finance Business under the FBA with effect from 25th July 2018.

TSCFL, a Licensed Finance Company licensed under the Finance Business Act No. 42 of 2011 (FBA) was facing liquidity crisis since 2008. Depositors of the company have been unable to withdraw their money over the last ten years.

All efforts made to revive the company through different strategies had failed. The continuity of current status will be further detrimental to the interest of depositors and other stakeholders of the company. To page iv

Further, the Director of the Department of Supervision of Non- Bank Financial Institutions of the Central Bank of Sri Lanka has decided to cancel the Certificate of Registration of TSCFL as a Registered Finance Leasing Establishment under the provisions of the Finance Leasing Act No. 56 of 2000 (FLA) with effect from July 25, 2018. Accordingly, TSCFL is not permitted to grant new finance lease facilities under FLA with effect from July 25, 2018.

Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) will take necessary actions to pay compensation to the insured depositors of TSCFL up to a maximum of Rs.600,000 per depositor as per the regulations of the SLDILSS. Further, depositors may be able to recover part of their remaining deposits in the process of liquidation subject to the priority of claims.

All debtors of the company are required to pay their dues to the company through a bank account announced by the company.

Central Bank of Sri Lanka also said that legal action will be taken against the responsible parties for the mismanagement and fraudulent activities of the company.

Adding another 289 star class rooms to Colombo’s hotel inventory and adding four floors of Mall space, Damro group’s Marino Mall and Marino Beach Colombo was opened yesterday at Colombo 3.

Chairman and founder of Damro Group, Damitha Ramanayake told ‘Daily News Business’ that they have invested over Rs 12.5 billion to build and open the hotel which would offer 289 rooms including two suites. The Mall has four floors of retails stores. In addition the 12 storeyed building with a three basement car park which could park 350 vehicles also has two large conference facilities which could accommodate over 1,000 guests. The Marino Beach Hotel built similar to Marina Bay Sands Singapore also has Sri Lankans’ largest roof top infinity swimming pool and a large garden and entertainment area. It’s also the first hotel project to have electronic card entry system to the roof top area.

Angsana Spa and a night club too would be introduced soon to Marino Beach Colombo and the hotel would be managed by a 400 member staff under D. R. Hotels (Pvt) Ltd. Marino Mall consists 150,000 square feet of shopping area and has several novel tech features such as ‘Marino Mall 9D Cinema’ Virtual Reality Games and other adventure game areas and a climbing wall as well. “Marino Mall’s construction began in June 2013 and its design and entire project concept including the construction were carried out by the Damro Group,” said Managing Director, Prasanna Kodippili.

Built on a 2.5 acre land the mall and hotel is accessible from both the Galle Road and Marine Drive.

DFCC Bank PLC, the banking arm of the DFCC Group reported a drop in profit for the second quarter amidst a challenging business environment. The drop in profit was due to higher impairment provisions, as well as a one-off gain from the disposal of shares of Commercial Bank during the previous period.

Overall, the DFCC Group, whose business covers commercial banking, investment banking, wealth management, information technology, industrial park management and consultancy recorded a profit before tax of R 2,596 million and profit after tax of Rs 1,861 million for the period ended June 2018 as compared to Rs 3,616 million and Rs 2,944 million respectively, in the comparative period in 2017.

Meanwhile, the Bank posted a profit before tax of Rs 2,402 million and a profit after tax of Rs 1,710 million which reflects a decline of 30% and 39% respectively compared to the same period in 2017. When adjusted for the exceptional gain from sale of Commercial Bank Shares reported in the previous period, the declines in profit before tax and profit after tax were 5% and 10% respectively.

The impairment provision during the current period was Rs 1,407 million compared to Rs 487 million in the comparable period. However, recovery processes are being rigorously pursued to minimize any actual losses that may arise from such exposures. The decline of 11% in Net Operating Income was due to the higher charge for impairment.

On a positive note, with increased customer interest in the Bank’s commercial banking products, the Bank recorded a healthy growth of 24% in Net Interest Income to Rs 6,556 million from Rs 5,303 million mainly as a result of the portfolio growth of Rs 38,229 million in loans and receivables year-on-year and prudent management of asset and liability re-pricing. To page iv

In addition, total Operating Income increased to LKR 7,662 million compared to Rs 7,533 million in the comparative period. Various initiatives adopted in order to grow non-interest income paid dividends as a growth of 30% was recorded in fees and commission income to Rs 906 million from Rs 699 million in June 2017. Trading gains increased by 14% to 172 million in June 2018. However, the reason for the overall moderate growth was due to the adverse impact from revaluation of funding swap contracts and the previous year’s one off gain reported from sale of Commercial Bank equity shares.

The Bank also continued to focus on expanding its branch network and delivery channels in order to reach out to the unbanked and under-banked consumers across the country. In doing so, the Bank added nine fully-fledged branches to its branch network during the period July 2017 to June 2018. This largely contributed to the increase in Operating Expenses to Rs 3,178 million from Rs 2,784 million (14%) in the comparable period. The Bank will continue this expansion drive as well as focus on developing alternate channels backed by the latest technology, with customers’ interests taking precedence.

Other Comprehensive Income

In terms of Other Comprehensive Income, the available for sale equity securities recorded a fair value loss of Rs 1,907 million due to the declining trend in the equity market. Furthermore, the Fixed Income securities recorded a fair value loss of Rs 413 million. The regulatory change in implementation of tax with effect from April 1,2018 for Treasury Bills and Bonds adversely affected the market prices of Treasury Bills and Bonds.

Financial Position

Fortifying its position as a strong business entity, DFCC Bank’s Total Assets grew by Rs 56,346 million year-on-year to Rs 361,272 million which reflects a 18.5% growth compared to June 2017, while the Bank’s Loans portfolio grew by Rs 38,229 million to Rs 236,666 million compared to Rs 198,437 million as at 30 June 2017, reflecting a growth of 19.3% year-on-year.

The Bank’s deposit base reported an increase to Rs 207,862 up 23.5% from Rs 168,357 million in June 2017, further displaying customer confidence. The growth in customer deposits during the first half year 2018 was Rs 14,555 million (8%). The Bank’s CASA ratio, which represents low cost deposits over the total deposits of the Bank improved to 20.2% from 19.8% in March 2018.

DFCC Bank’s CEO, Lakshman Silva said that despite profits being adversely impacted due to impairment, he is encouraged by the growth seen during the period in terms of expansion of island-wide footprint and continued focus on launching technologically advanced products and services such as the recently launched DFCCiConnect, which is a fully integrated Payments and Cash Management (PCM) System for businesses of any scale.

Malaysia has expressed its strong interest on moving forward on the Free Trade Agreement (FTA) with Sri Lanka that was initially mulled in 2013.

“An FTA with Sri Lanka about which we agreed in principle will boost Lanka-Malaysia trade in a great way,” said Sri Lankan Minister of Industry and Commerce Rishad Bathiudeen on July 25 in Kuala Lumpur.

Minister Bathiudeen held discussions with the Malaysian Minister of International Trade and Industry YB Darell Leiking in Kuala Lumpur and lauded Malaysian Minister Darell Leiking’s strong interest in moving forward in respect of the Free Trade Agreement between both countries that was initially entertained in 2013.

During the Second Session of the Joint Commission in Malaysia in October 2013 in Kuala Lumpur both sides agreed in principle to explore the future possibility of an FTA, which would boost bilateral trade further. According to the Department of Commerce of Sri Lanka, bilateral trade between Sri Lanka and Malaysia in the five year period of 2013-’17 has increased by 20% to US$ 693 million.

This year January-June trade was at a strong $361 million. 92% of total trade in 2017 were imports from Malaysia at $641 milllion. Malaysia was the seventh largest source of imports of Sri Lanka in 2017. Main imports from Malaysia (in 2017) were wood, Portland cement, plastics, petrol, synthetic rubber, and gas oil, diesel. Sri Lanka’s leading exports to Malaysia (2017) were food preparations, meslin flour, tea and apparel.

Minister Bathiudeen explained the initial actions taken on Sri Lanka-Malaysia Free Trade Agreement so far and added: “We understand that there are training opportunities for our SMEs to be available in Malaysia and we shall be thankful for provision of such opportunities to Lankan SMEs as well. We invite Malaysian officials and private sectors to explore investment and trade potentials in Sri Lanka. Major economic reforms are planned under our Unity Government.

I welcome your interest on an FTA with Sri Lanka about which both countries agreed in principle earlier. Such an FTA will boost Lanka-Malaysia trade in a big way. I welcome your interest on an FTA with Sri Lanka about which we agreed in principle.”

“Such an agreement will boost Lanka-Malaysia trade in a great way.” 

Adding another international style shopping mall consisting of 150,000 square feet of shopping area to Colombo, Marino Mall was launched yesterday at Colombo 3.

Owned and operated by the Damro Group the Mall which has four floors of shopping area has over 75 outlets and special entertainment options that are being introduced for the first time in Sri Lanka . These include a ‘Marino Mall 9D Cinema’ Virtual Reality Games area and other adventure games centres and a climbing wall as well.

Marino Mall also has many dining options. These include ‘Sea View Food Emporium’ consisting 10 outlets and is an ideal place to enjoy fine cuisine from different regions of the world, Curry Stop [Sri Lankan Cuisine], Bharat Bhojan [Indian Cuisine], Western Bay [Western Cuisine] , Middle Eastern [Arabic Cuisine],Far Eastern [Asian Cuisine].

Food Emporium consists of Coffee Shop, Coffee on Ocean and an outlet of Labbokellie Tea Lounge giving the opportunity for the customers to enjoy the Finest Ceylon Tea. It also consists of the renowned ice cream and Gelato experience by Roots, Gonuts with Donuts with their delicious products, and Royal Cashew store for cashew fans.

Marino Mall is the rewarding shopping experience that Colombo yearned for a long time,” said Managing Director, Prasanna Kodippili.

The management of Marino Mall has dedicated an entire floor area for corporate offices at the shopping mall. Some of the leading corporate brand offices have already reserved their spaces at the corporate office floor – DELL EMC Demo Centre (Asia Pacific Region) / Hybrid Homes. “There are still some spaces available which could be reserved,” they said.

The Mall offers 350 parking slots in the basement and also has two large conference facilities which could accommodate over 1,000 guests.

Marino Mall Shopping Mall also connected with a star classed hotel that has 300 spacious rooms would open its doors to public soon.

Sri Lanka’s first international Mall at Colombo City Centre is currently carrying out its final touches before opening its doors next month.

Following the early topping out of Colombo City Centre in April 2018, the Mall was fast-tracked for completion in August 2018 and is now set to welcome its first visitors to the country’s first integrated lifestyle destination.

This also includes 16 high-end brands that will make their debut in Sri Lanka, along with the country’s first-ever gourmet supermarket and a multitude of other exciting features befitting of the Mall’s futuristic outlook.

“We are ringing in a new age of lifestyle for the urban fabric of Colombo,’said Anand Sundaram, CEO of Colombo City Centre. “The combination of world-class retail, international cuisine, and state-of-the-art entertainment will make the Mall on par with some of the best found around the world, offering an unforgettable experience that the denizens of Sri Lanka’s capital have long deserved.”

The Mall at Colombo City Centre will be Sri Lanka’s largest shopping destination. Foreign shopping trips are set to become a phenomenon of the past with the presence of several international names such as Apple, Body Shop, Nike, Swarovski and more available at a convenient location for the residents of Colombo. Several local brands such as Abans, Colombo Jewellery Stores, ODEL and Spa Ceylon will also be present at the Mall, alongside the specialty gourmet supermarket, which will be operated by Cargills Food City.

On one end of the Mall’s 5th floor, Food Studio, Sri Lanka’s first food atrium, will feature several world cuisines including Indian, Japanese, Portuguese, Singaporean and Sri Lankan, in addition to an island bar that overlooks the historic Beira Lake.

Colombo City Centre is Sri Lanka’s first BOI-approved mixed development project, slated for completion in early 2019. The USD 180 Million joint venture between local retail giant, Abans, and Singapore-based Next Story Group is one of Sri Lanka’s largest foreign direct investments in recent times and rises 47-storeys above the heart of the city. Colombo City Centre is a multi award-winning skyscraper dedicated towards transforming Sri Lanka’s capital into a global metropolis with the first integrated lifestyle complex of its kind. This includes Sri Lanka’s first international mall with high-end brands, a 700-seat food court and 6-screen multiplex cinema, the upscale NEXT Hotel® with 164 keys, and 192 luxurious residential units designed to offer unmatched views of the city, Beira Lake, and Indian Ocean.

Leema Creations an award winning, multi-disciplinary design and furniture manufacturing firm constituted in year 2000 by Incorporated Civil Engineer Channa Wijesekara is hoping to add new services.

The Company currently is considered a market leader in the industry in both commercial and residential segments bringing all Interior fit out disciplines together to provide total solutions to the growing market demand. They operate under the standards of ISO 9001:2008 certification and the guidelines and steered by core values of creativity, quality, value, reliability and service.

Leema Creations’ pace of furniture production has always been intense, but it has long been obvious that the Company would have to scale up quickly to cater to the ever growing clientele.

“We intend to increase the quality of service to our customers at Leema in a sustained manner and implement a number of measures to prepare the organization for the future,” commented Channa Wijesekara, the founder and the Managing Director Leema Creations.

Other key elements of the development are the modernization and makeover of the operation and new services will be provided by Leema Creations. The organization has plans to increase the existing floor area of 80,000 sq.ft by adding more work space.

The aim is to make customers spend more time with our staff by creating a modern and friendly atmosphere and to improve and complement the customer services provided.

Alongside the newly introduced machinery, the Company has created a more efficient floor plan with significantly more automation enabling a streamlined and more consistent workflow. “These upgrades are done based on reliability considerations and upgrading will increase productivity and quality as a forward investment that can have a greater business value.”

The financial sector can unlock value in promoting sustainable development and elaborated on the Bank’s approach in striving to ensure better quality of life said Theja Silva, the Company Secretary and General Counsel of Nations Trust Bank.

Nations Trust Bank PLC is one of Sri Lanka’s fastest growing licensed commercial banks, offering a wide, comprehensive range of solutions to Individuals, SMEs, Corporates and Institutions. The Bank strongly believes that change is needed within the organization and the financial services sector as a whole for it to survive and thrive in the future.

Following is an interview with Theja Silva, Company Secretary and General Counsel of Nations Trust Bank.

How has your bank understood the role of the financial sector in sustainable development and what has been your bank’s approach?

As a bank, we are expected to safeguard and enhance the value of wealth of our stakeholders, so they could enjoy a better quality of life. However, while we continue to provide better financial solutions and returns to our stakeholders, we have come to realize that because of larger environmental, social and economic impacts and vulnerabilities at play, such as the increasing climate variability with intense droughts and floods, the value of this wealth is at risk of being eroded and quality of life of our stakeholders affected.

We want to support our customers to adopt more environmentally friendly and socially inclusive options, while we do the same in our business. For example, over the past three years, we have been measuring the carbon footprint of our hub operations and taking action to reduce our emissions including in installing a 40kW solar PV system in our largest owned office complex. We want to promote such economical options such as Climate Smart Agriculture, Smart Mobility and Green Buildings through our financing that helps our customers to improve their productivity and resilience.

We are also innovating in the digital sphere and understand that the technologies and new economic models arising in the fourth industrial revolution have significant potential to deliver sustainable outcomes. Our digital bank, FriMi, is already helping our customers to go paperless and avoid unnecessary commute and as we continue to evolve, we plan to make sustainable choices more convenient for our customers through these digital channels.

We also will pursue greater financial inclusion through digital mediums and we have already opened our infrastructure for open innovation through Nations Open API Banking.

Could you explain more on your CSR initiatives and outcomes that you are pursuing?

Our Board of Directors have set aside 1% of our Profit After Tax to undertake community development programs that have strong development impact. We have decided that we will focus these funds in to two broad areas: education and environmental stewardship.

In terms of education, we have identified that digital divide will be a major impediment as the country looks to seize opportunities in fourth industrial revolution. Therefore, one of the key outcomes that we are seeking is to improve digital literacy and digital intelligence, so no one is left behind as the country progresses in this direction.

Since last year, we have been partnering with ShilpaSayura Foundation to promote e-learning and develop programming logic in schools. Earlier in the year, we supported Akuressa Godapitiya Kanitu Viduhala in providing a computer lab and conducted a three full day program on e-learning, visual programming and introduced students to IoT using Micro:bit units.

We are also making investments to improve STEM education and last year handed over a full-fledged science lab to Galgamuwa Nithalawa School.

Other outcomes on education related initiatives are to enhance emotional intelligence and build awareness on sustainability. We have a long-term partnership with University of Colombo Alumni Association, where we are conducting workshops and offering mentoring sessionsfor a period of 3 months for students to develop their socio-emotional skills and prepare them for future of work.

We have also supported the BEEZ Society and the Roteract Club of Faculty of Science of University of Colombo to raise awareness amongst youth on the importance of sustainable development in Colombo and Jaffna. We are also currently setting up a research endowment that the local university system could draw upon to conduct meaningful research.

In terms of our environmental stewardship, we work with leading environmental societies in the country such as the Wildlife and Nature Protection Society (WNPS) and the Wildlife Conservation Society of Galle (WCS-G). We support research, awareness and policy advocacy and direct conservation efforts by these societies.

Monthly public lectures and the magazines Loris and Warana/Vaaranam of WNPS are sponsored by us. We fund the animal rescue service and animal hospital operated by WCS-G at Hiyare. Our conservation efforts also include hog deer conservation in Honduwa and also leopard conservation.

What do you see as Critical Success Factors for your efforts in sustainable value creation?

We are fortunate that we have a Board that is long-term oriented and with respect to our community, development efforts are genuinely interested in the impact we make. We are also fortunate to have employees who are passionate and willing to contribute their time in furtherance of our sustainability initiatives. This organization ethos and culture is a critical factor for our success.

We believe that the strength of our partnerships and collaboration will be key to further our sustainability agenda. We have been fortunate to have long-term partners that have shared values and common objectives and we will remain open to collaborate with like-minded organizations.

As an industry too, the banking sector has been collaborating to promote sustainability through Sri Lanka Banks’ Association’s Sustainable Banking Initiative, where 18 banks have come together on a common agenda. With our CEO, Renuka Fernando, as the current Chairperson of Sri Lanka Banks’ Association, we have been playing an active role in supporting this initiative as a member and providing leadership.

We have higher expectations for the 2030 vision and will seek to provide strategic leadership in the industry through innovation and collaboration in continuing to improve quality of life.

Finance and Media Minister, Mangala Samaraweera and German Ambassador Jörn Rohde participated at the inauguration of a 120 day special training program for construction industry in Talalla implemented by National Vocational Training Authority of Sri Lanka and GIZ together with the German Embassy in Sri Lanka and the Ministry of Science, Technology, Research, Skills Development and Vocational Training and Kandyan Heritage yesterday.

Minister of Development Strategies and International Trade Malik Samarawickrama visited New Delhi recently and met Minister of industry and Commerce and Aviation, Suresh Prabhu. Both ministers discussed the progress of the Economic and Technical Corporation Agreement and ways to increase trade between the two countries. High Commissioner Chitranganee Wagiswara and Chief Negotiator K.J.Weerasinghe participated at the luncheon meeting hosted by Minister Prabhu.

Fintech Meetup of the Asia-Pacific Executives Forum was recently held at Hilton Colombo; the forum is jointly organized by Colorado, USA-based American Academy of Project Management (AAPM) and Global Academy of Finance and Management (GAFM), in collaboration with Interstellar Strategic Partners and a number of other institutions.

At the forum, it is initiated the forming of the “Fintech Association of Sri Lanka”.

Andrew Holmes, an Australia based Fintech Consultant in his keynote speech come out with a number issues on Cryptocurrency and blockchain related issues.

Ananda Jayalath, Assistant Governor of the Central Bank explained regulatory role of Central Bank on Fintech.

Sri Lanka based German hotelier Dr. Dietmar Doering, former Federation Chamber of Commerce and Industry of Sri Lanka (FCCISL) and American Chamber of Commerce (AmCham) Sri Lanka President and TJ Associates Managing Partner Dr. Tissa Jayaweera, filmmaker and Asian Aviation Centre (AAC) Chairman Chandran Rutnam and Public Finance Specialist Rifas Raseek also participated in the panel discussion.

AAPM/GAFM Representative in Sri Lanka and Maldives Rajkumar Kanagasingam moderated the forum session. Andrew Holmes in his keynote speech explained the concept of the blockchain and its underlying technology.

He highlighted the importance to distinguish between cryptocurrency digital assets and the blockchain, clearing the common misconceptions held by the public that the two were the same. Holmes said the technology’s revolutionary aspect lies in its ability to enable two parties to transact with each other directly. In current systems a third party is required to mediate transactions, this third party, in most cases, maintains the record keeping and performs activity in relation to verification and facilitation. The blockchain does these automatically without the need for the third party.

He further said to exemplify its potential, one can think of PickMe or AirBnb operating without the organization. The blockchain could connect both the service provider and requestor directly. This would reduce costs to both parties significantly by bypassing high middlemen fees and promote true free market demand and supply.

Holmes highlighted since the blockchains debut with its application for Bitcoin, there has been some upgrades to its features. One of the most significant advances has been the ability to ‘program’ the blockchain. This ability to specify conditions and produce desired outcomes when certain criteria has been met is termed as ‘Smart Contracts’. Ethereum is the world’s first smart contract platform; if Bitcoin is a calculator you can think of Ethereum as a personal computer. Smart contracts are going to be used heavily in the future to automate activity and governance.

He said, “Imagine the ability to program money and how it should behave or create your own ‘will’ that is governed by a program that will execute exactly as you specified. Even a world where you can rent your mobile phone or computers processing power to earn some passive income.”

Holmes said these are some of the possibilities the blockchain is going to facilitate without the need of centralized bodies governing them. And he concluded all of these activities will be occurring by our collective contributions with the help of our own devices.

NDB Investment Bank (NDBIB) cemented its position as the market leader and premier Investment Bank in the country by being awarded as ‘Sri Lanka’s Best Investment Bank 2018’ by Euromoney Magazine.

NDBIB secured this prestigious award for the 7th consecutive year whilst demonstrating its market leadership and unrivalled credentials both in Sri Lanka and the region.

This award recognises the depth and breadth of the transactions executed by NDBIB and propels NDBIB as one of the longest consecutive winners of a country specific award. The Asia Awards Ceremony was held on July 18, 2018 at JW Marriott in Hong Kong.

NDBIB recorded a stellar performance for 2017 with all three product verticals of debt capital markets, equity capital markets and M&A advisory performing exceptionally well.

Darshan Perera, CEO of NDBIB, said, “2017 was yet another remarkable year for NDBIB where we extended our market leadership having executed over 40 transactions with a value exceeding Rs. 55 billion. Winning this award for seven years in a row is not an easy one amidst increasing competition and shows that being the best in what we do is embedded to our organisational DNA”. He further added, “Client satisfaction and delivering on our promise is also something that has enabled us to maintain our leadership position”.

The debt capital markets team was also instrumental in creating capital raising opportunities with structured debt products to match the cash flow needs of clients. Kaushini Laksumanage, COO of NDBIB, commenting on the company’s success said, “Last year was an exceptional year for us having executed many innovative and landmark transactions. On the debt capital side, we were active in raising both rupee and dollar debt across medium to long term tenures for clients from diverse industries both in Sri Lanka and in the Maldives”.

Nilendra Weerasinghe, Vice President and Head-Corporate Advisory, commenting on the performance, said, “Year 2017 was no doubt a tough market from a capital raising perspective”. 

The MTI International team led by CEO Hilmy Cader, is currently in Kathmandu as part of its initiatives to strengthen ties with NBSM Consulting, MTI’s associate in Nepal.

Commenting on the significance of the visit, MTI CEO Hilmy Cader said, “We have always looked forward to working with boutique consultants across emerging markets. Our association with NBSM Consulting gives us the right opportunity to set footprints in Nepal. With a population of 29 million people and an economy growing at over 6%, Nepal is Strategically located between two large and rapidly growing economies - China and India – with easy access to markets of more than 2.8 billion people. Our experience in the South Asian markets gives us an edge in serving the public and private sectors in Nepal.”

MTI Consulting has worked on assignments across emerging and frontier markets in Asian, Middle East and African regions, which include projects carried for multi-national and regional companies and agencies in Algeria, Bangladesh, Cambodia, Egypt, Indonesia, Jordon, Iran, Iraq, Lebanon, Myanmar, Nigeria, Pakistan, Philippines and Syria.

NBSM Consulting Private Limited has been a leading consulting Firm in Providing Service to Banking and Financial Institution and Insurance Industry in Nepal. They have been providing services in the field of Tax Advisory, M&A Advisory and Managed Services to diversified Industries in Nepal viz. Banking and Financial Institutions, Manufacturing, Trading, Mining, Insurance, Feed and Poultry, Regulatory Boards since 2009.

NBSM’s Founder, Nil Saru has an extensive experience in the field of Merger and Acquisition Advisory, Business Advisory and Tax Advisory.

He has been appointed as the Expert Board Member of Securities Board of Nepal by Nepal Government, Ministry of Finance. 

Thanpuying Chanut Piyaoui, Founder and Honorary Chairperson of Dusit International, one of Thailand’s foremost hotel and property development companies, which also has presence in Sri Lanka has received the prestigious SHTM Lifetime Achievement Award from the School of Hotel and Tourism Management (SHTM) of The Hong Kong Polytechnic University (PolyU).

Ranked among the top 3 “Hospitality and Leisure Management” institutions globally in the QS World University Rankings by Subject in 2017 and 2018, the SHTM is a symbol of excellence in the field.

Established in 2016, SHTM’s annual awards are designed to honour outstanding personalities who have contributed substantially to the development of hospitality and tourism in Hong Kong, the region and around the world.

This year, the recipient was selected in accordance with the theme ‘Celebration of Women in Leadership.’

Thanpuying Chanut established Dusit International in 1948 and opened her first property in Bangkok, Princess Hotel, in 1949. It was one of the first properties in the city to feature a swimming pool, an elevator, and air conditioning.

Determined to open a five-star hotel offering luxury hospitality with a distinctively Thai touch, in 1970 she achieved this aim with the opening of the flagship Dusit Thani Bangkok – then the city’s tallest, grandest building – which has been a true icon ever since.

Building on the success of this property, Thanpuying Chanut opened more five-star hotels in major tourism destinations in Thailand and overseas, and branched out into hotel and culinary education with the Dusit Thani College in 1993, and Le Cordon Bleu Dusit Culinary School, a joint venture with Le Cordon Bleu, in 2007.

Area Director Sri Lanka, Maldives and Malaysia, and General Manager of Taj Samudra Colombo Sarabjeet Singh won the prestigious award Best General Manager in the Hospitality Sector at the Golden Globe Tigers Awards ceremony 2018 event for the second consecutive year which was held at Colombo.

Also, Taj Samudra, Colombo received Sri Lanka Best Employer Brand Award 2018 at the Golden Globe Tigers Awards ceremony. The Golden Globe Tigers awards aims to recognize personnel in marketing, branding CSR & social innovation, education and academic across leadership levels.

Taj Samudra Colombo was also awarded the prestigious overall award for ‘ The Most Outstanding Hotel 2017’at the 17th Culinary Art Food Expo organized by the Chefs Guild Lanka.

This feat was achieved by the team of culinary experts who won forty-six medals including 4 Gold Excellence medals, 10 Gold medals, 17 Silver medals and 15 Bronze medals at this prestigious event. 

TripAdvisor has awarded Kings Pavilion Kandy with the Certificate of Excellence for 2018 - ranking a no. 1 placement based on its great consistent guest reviews. (Booking.com 9.5 out of 10 points)

The hotel achieved this merit within a short span of time by proving excellent service delivery, luxury design and impressive layout. It is an ultra-luxury escape within an idyllic hill country environment, where guests are able to immerse themselves in the rich cultural history, spiritual heritage and diverse tropical landscape.

Kings Pavilion has been accepted by Shlomo Gabbai, the Director of the Awards to take part in the 2018 edition of the World Boutique Hotel Awards after being highly recommended in the categories ‘Relaxation Retreat and Newcomer’.

The luxury boutique hotel is situated in a secluded hillside in Anniewatte and just five minutes away from Kandy town. Sensitively built to preserve this site’s unique flora and fauna, it blends with the environment and brings guests closer to nature. King’s Pavilion entices you to discover a blend of history, spirituality and luxury amidst the hill capital of Sri Lanka.

Hotel offers 9 fully air-conditioned bedrooms including 2 spacious suites with private balconies, 4 Junior suites and 3 standard Rooms.

Kings Pavilion room facilities includes, LED TV with Satellite and Local Channels, Free Wi-Fi, Writing Desk, In-Room Jacuzzi, Free Toiletries - Bathrobes and Slippers - Hairdryer - Tea and Coffee making facilities - Complimentary In-Room fresh Fruits - Bottled Water - Telephone - In-Room Digital Safe - Stocked Mini-Bar, Doctor on call and also a Library.

Sri Lanka’s first battery free, JVD Scale manufactured by JVD France was introduced to the local market by Heli Associates International (Pvt) Limited at the recently conclude hotel show .

Heli Associates International (Pvt) Ltd Helitha Fonseka - Director (Business Development) said that the Dyan Model Battery Free JVD Scale, uses kinetic energy which drains off automatically after one minute. “This is the first time a battery free scale is being introduced and there is keen interest already generated for the product after it was displayed at the hotel show.”

He said that today the Sri Lanka hotel sector is booming and in addition to the large hotels that are built there is also a mid-market.

To cater to this segment JVD France also introduced a new safe (Fortress model) for budget hotels which is very economical.

He said that in addition to Sri Lanka they are also servicing the Maldives where many hotels are being built and existing hotels are being upgraded and these two products would be marketed in Maldives as well. Further to USA market via Heli Associates (California) Incorporation.

Heli Associates cater for the majority share of “ In- Room Solution” of the country’s Hospitality need inclusive of JVD France Mini Bars - Safety Lockers -Hair Dryers - Kettles etc.. and Hygiene & House Keeping Solution too. 

Weligama Bay Marriott Resort and Spa, an iconic brand of Marriott International, celebrated its first anniversary on July 20.

Within just one year since its opening, the resort is one of the most sought after hotels among local and foreign travelers. The property offers 198 beautifully-designed expansive rooms and suites, right in the heart of Weligama Bay - a charming seaside fishing village famous for surfing.

Each unit of accommodation offers a King or Twin bed configuration, separate bath and shower, a 55 inch television, Wi-Fi and a balcony. The resort boasts of not just one, but three outdoor swimming pools, overlooking vistas of the seaside.

The property caters to families with young children with a large, interactive indoor kid’s activity center with fun-filled game zones and play areas. Adults are offered the resort’s renowned Quan Spa which offers authentic Thai and Swedish therapies and a well-equipped fitness center.

The all-day dining restaurant, ‘Weligama Kitchen’, spreads across different zones while ‘The Big Fish’ is a chef driven restaurant offering gourmet seafood. ‘Mirissa Baking Company’ provides freshly-baked desserts and snacks, accompanied by a selection of fine coffee, fresh juices and specialty drinks and there is also ‘Surf’s Up’ the pool bar.

“We are thrilled to celebrate our first anniversary, which represents a significant milestone for the hotel and the brand in a destination like Sri Lanka,” said Elton Hurtis, General Manager of Weligama Bay Marriott Resort and Spa, who counts over 21 years of experience in the hospitality industry and close to 17 years with Marriott International.

“We are confident that Weligama Bay Marriott Resort and Spa will continue to inspire travelers from Sri Lanka and around the world to visit and experience more Marriott Hotels in addition to what this extraordinary destination has to offer. We are excited by the increasing demand from our local guests and remain humbled and thankful for their continued patronage of our resort” concluded, Elton.

“Within a short period of one year Weligama Bay Marriott Resort & Spa has created a fine place for our Sri Lankan guests and many have made this property their home when traveling on holiday and corporate outings,” added Mano Gunasekera, Director of Sales and Marketing.

Weligama Bay Marriott Resort & Spa is also offering a limited anniversary offer with an exclusive family getaway package, including meals and some great add-ons.

Movenpick Hotel, Director Sales and Marketing Padmi Fernando recently received the Sri Lanka Women Leadership Award 2018 at a ceremony held in Colombo.

The objective of conducting the annual Women Leadership Awards ceremony in several regions worldwide is to select the finest woman leaders and achievers in organizations.

Movenpick , General Manager George Koumendakos addressing the gathering said the vision and mission of organizations are to produce finest woman leaders and achievers in organizations .

He highlighted that it was a wonderful achievement of Fernando and she strives for excellence.

He said Movenpick needs more people like her to prosper the industry and also to develop the Sri Lankan tourism sector. The winners were shortlisted by a jury comprised of senior professionals from across the globe.

Fernando who has vast experience in the field of sales and marketing joined Mövenpick Hotel Colombo in August 2017. Before joining Movenpick she had also held Senior Management roles with Taj Hotels Sri Lanka, Cinnamon Hotels and Resorts and the Trans Asia Hotel.

Speaking on the occasion Fernando said she was happy to receive this recognition since it was a biggest challenge in her life .

She added , “I am always been the unpredictable nature of the process as my job involves crafting the sales and marketing strategy for the hotel to achieve both short and long-term goals,”.

She also said that she has a fantastic support from Mövenpick with an energetic and enthusiastic team. 

The future of tourism marketing would be based on online marketing said Chairman Sri Lankan Tourism Promotions Bauru, Kavan Ratnayake.

Speaking at the launch of the e-marketing platform for travelers from all around the world last Thursday in Colombo he said that in Sri Lanka too this trend is spreading.

He said that more emphasis should be given to capture business from this online screen.

Managing Director, World Travel Centre, Sudharma de Silva said that presently 25% to 30% of incoming tourists to Sri Lanka and outgoing tourists from Sri Lanka make their bookings online. “We believe these figures would be 70% online and 30% offline in about three years’ time and as such it is important to prepare ourselves to face the future demands by offering more online options.”

“This is why we introduced another innovative travel product e-marketing platform for travelers, (www.pickmyjourney.com) from all around the world and one of the specialties in this system is the availability of all travel products to the online user, be it air ticketing, worldwide hotels, worldwide tours, transport. The most important uniqueness in the system is availability of Seat –in –Coach Tours and sports tours.”

Though Seat-in-coach tours is fairly new concept in Sri Lanka these tours are operated all over the world including countries such as Singapore, Malaysia and Thailand and they are supposed to be Sri Lanka’s main competitors and nearly 50% of their tours are operated on SIC basis also due to many reasons Sri Lanka has a huge potential to develop the tourism industry by combining with sports.

Pick My Journey (PMJ) will be an essential tool in future to travelers as the concept is most likely the cloud - platform containing private and fixed holiday packages.

“The system will help to sustain and up growth the tourism industry of Sri Lanka as the concept to make a Sri Lanka a business hub in the tourism industry.”

He further said they have introduced this system to use as a tool to mitigate the risk of losing existing business and business opportunities.

Whilst targeting the individual online users, PMJ also focused on agent markets by providing special agent platform, where the agent can tailor made package according to customer need.

As the product from Sri Lanka and owned by a Sri Lankan, the product will be valuable to Sri Lanka tourism. (SS) 

Lankaputhra Development Bank celebrated its 12th anniversary recently. Along with the celebrations the bank organized a staff felicitation and awarded employees who have served more than 10 years to the bank with their best. The awards night was held at Solis Hotel, Kotte.

Amazon has reported record quarterly profits helped by a rise in online sales and demand for its cloud services. Profits hit a record $2.53bn (£1.9bn) in the three months to the end of June - about 12 times more than it made during the same period last year.

Sales rose by 39% to $52.89bn, slightly less than analysts had been forecasting. Amazon’s shares jumped more than 3% in after-hours trade.

“It was a strong quarter,” said chief financial officer Brian Olsavsky. “What I attribute it to is continued strength in some of our most profitable areas.”

At the firm’s lucrative cloud services division, Amazon Web Services, sales were up nearly 50% year-on-year to $6.1bn. Amazon is also starting to attract more money from advertising.

Revenue from the firm’s “other” category, which includes advertising, more than doubled to about $2.2bn.

Retail sales in North America were healthy as well, rising about 44% to almost $32.2bn.

Recruitment slowed in the quarter. Amazon is also starting to reap the benefits of previous infrastructure investments, allowing for less rapid spending growth, Olsavsky said.

Daniel Ives, chief strategy officer at GBH Insights, said Amazon’s profitability appears to be accelerating faster than expected.

That, he wrote, will be “music to ears of investors” who have stood by Amazon and its famously long-term approach to deferring profit in favour of reinvesting in the company.

Amazon is expected to account for roughly half of online sales in the US this year, according to research firm eMarketer.

The company told investors that it expects third quarter sales in the range of $54bn- $57.5bn, growth of 23% to 31%. BBC News 

Fitch Ratings has affirmed Sri Lanka-based Lion Brewery (Ceylon) PLC’s National Long-Term Rating at ‘A+(lka)’. The Outlook is revised to Stable from Negative. Fitch has also affirmed the National Long-Term Rating on Lion’s outstanding senior unsecured debentures at ‘A+(lka)’.

The Outlook was revised to Stable because we expect Lion to be able to maintain leverage (defined as lease-adjusted debt net of cash / operating EBITDAR) at less than 3.0x over the medium term. Lion was able to improve its net leverage to 2.7x as of March 31, 2018 (FYE18) from 6.3x at FYE17, helped by the recovery in sales volume and operating profitability. The recovery was underpinned by a revision in excise taxes, which was announced in the Sri Lankan government’s budget on November 9, 2017. The revised regime taxes alcoholic beverages with lower alcohol content at reduced rates compared to spirits. Fitch rates Lion on its standalone strength due to weak linkages between Lion and its ultimate parent, Carson Cumberbatch PLC, in line with Fitch’s Parent and Subsidiary Rating Linkage criteria.

Lion’s ‘A+(lka)’ rating reflects its leading market position in the domestic beer industry, which is protected by stringent regulation, a well-established brand and extensive retail coverage. 

Local Canned Fish Manufacturers Association (LCFMA) lauds the government’s decision to grant an increase of Rs 20 for its canned products.

Local Canned Fish Manufacturers Association’s President Shiran Fernando, thanked the cost of living committee comprising Ministers, Malik Samarawickrama, Mangala Samaraweera, Dr. Sarath Amunugama, Rishad Bathiudeen, and Dr. Harsha de Silva and Chairman of Lanka Sathosa , Mohamed Rizwan Hameem and all others concerned for the increase of Rs 20 for that products of local canned fish manufacturers and stepping in time to save the local industry and also saving millions of rupees of valuable foreign exchange.

The Bourse ended the week on a negative note as the ASPI decreased by 37.18 points (or -0.60%) to close at 6,153.99 points, while the S&P SL20 Index also decreased by 40.06 points (or -1.18%) to close at 3,360.37 points.

Turnover and market capitalization

JKH was the highest contributor to the week’s turnover value, contributing LKR 0.21Bn or 18.97% of total turnover value. Hemas Holdings followed suit, accounting for 17.42% of turnover (value of LKR 0.19Bn) while Central Finance contributed LKR 0.08Bn to account for 7.23% of the week’s turnover.

Total turnover value amounted to LKR 1.10Bn (cf. last week’s value of LKR 2.14Bn), while daily average turnover value amounted to LKR 0.28Bn (-35.63% W-o-W) compared to last week’s average of LKR 0.43Bn.

Market capitalization meanwhile, decreased by 0.60% W-o-W (or LKR 17.40Bn) to LKR 2,881.71Bn cf. LKR 2,899.15Bn last week.

Liquidity (in value terms)

The Diversified sector was the highest contributor to the week’s total turnover value, accounting for 41.46% (or LKR 0.46Bn) of market turnover.

Sector turnover was driven primarily by JKH, Hemas Holdings & Richard Pieris which accounted for 91.95% of the sector’s total turnover.

The Banks, Finance & Insurance sector meanwhile accounted for 28.74% (or LKR 0.32Bn) of the total turnover value, with turnover driven primarily by Central Finance, Commercial Bank and Sampath Bank which accounted for 66.89% of the sector turnover.

The Beverage, Food & Tobacco sector was also amongst the top sectorial contributors, contributing 11.84% (or LKR 0.13Bn) to the market driven by Distilleries, Lion Brewery and Nestle which accounted for 82.43% of the sector turnover.

Liquidity (in volume terms)

The Diversified sector dominated the market in terms of share volume, accounting for 30.98% (or 13.42Mn shares) of total volume, with a value contribution of LKR 0.46Bn.

The Banks, Finance & Insurance sector followed suit, adding 22.62% to total turnover volume as 9.80Mn shares were exchanged.

The sector’s volume accounted for LKR 0.32Bn of total market turnover value.

The Hotels & Travels sector meanwhile, contributed 5.47Mn shares (or 12.62%), amounting to LKR 0.01Bn.

Top gainers and losers

Adam Investments was the week’s highest price gainer; increasing 50.0% W-o-W from LKR0.20 to LKR0.30 while Blue Diamonds [NV] (+33.3% W-o-W), Tess Agro [NV] (+20.0% W-o-W) and Nation Lanka (+14.3% W-o-W) were also amongst the top gainers.

Hunas Falls was the week’s highest price loser; declining 21.9% W-o-W to close at LKR70.20 while Sathosa Motors (-18.9% W-o-W), Paragon (-17.0% W-o-W) and Horana Plantations (-15.9% W-o-W) were also amongst the top losers over the week.

Foreign investors closed the week in a net buying position with total net inflow amounting to LKR 0.02Bn relative to last week’s total net outflow of LKR 0.10Bn (+122.1% W-o-W). Total foreign purchases decreased by 51.4% W-o-W to LKR 0.44Bn from last week’s value of LKR 0.91Bn, while total foreign sales amounted to LKR 0.42Bn relative to LKR 1.02Bn recorded last week (-58.67% W-o-W).

In terms of volume Richard Pieris & Central Finance led foreign purchases while Distilleries & Hemas Holdings led foreign sales.

In terms of value Central Finance & Commercial Bank led foreign purchases while Hemas Holdings & Distilleries led foreign sales.

Point of view

Equity markets reversed two-consecutive weeks of positive momentum as the broad-share Index slipped ~37 points while average weekly market turnover declined 36% W-o-W to hit a 14-week low.

Index losses stemmed largely from greater selling pressure, but improved foreign buying helped avert steeper losses on the Index.

The foreign equity sell-off that has persisted for 6 consecutive weeks eased this week, helping stem losses on the benchmark ASPI. Net foreign inflows to the CSE totaled Rs. 23Mn this week, relative to the net outflows of Rs. 105Mn last week and Rs. 221Mn the week prior.

Despite this week’s net foreign buying, foreigners have consistently sold off domestic risky assets over the month of July, resulting in a net foreign outflow of Rs. 1.2Bn for the month.

Inflows to domestic equity markets have been volatile this year, tracking the broader global theme of waning risk appetite for EM/FM assets since Feb’18 as global financial market volatility has heightened amid worsening US-China trade tensions, the cooling Chinese economy, foreign currency volatility and tightening global market liquidity.

The YTD net foreign outflows from the Colombo bourse has consequently amounted to Rs. 2.8Bn, a stark contrast to last year when net foreign inflows for the comparable period totaled Rs. 25Bn.

Equity market performance over July meanwhile, continued to remain sluggish for the 3rd consecutive month, losing 0.7% over July to add to the loss of 4.4% recorded in Q2’18.

The losses over Q2’18 and the month of July are in contrast to the gain of 1.7% recorded over Q1’18, and the 6.6% gain recorded in the comparable Jan-July period in 2017(ASPI has lost 3.4% between Jan-Jul’18).

Markets in the week ahead are likely to look for cues both from global market developments and results from the June quarter corporate earnings releases.

National inflation rises amid fuel price increases

National inflation levels in June rose in line with urban inflation levels, with headline NCPI rising to 2.5% Y-o-Y from 2.1% Y-o-Y in May 2018.

While urban inflation levels in June (4.4% Y-o-Y in Jun’18 cf. 4.0% in May) were driven mainly by non-food inflation (5.0% Y-o-Y in Jun’18 cf. 4.2% Y-o-Y in May’18), urban food inflation levels declined 2.9% Y-o-Y from 3.3% in May’18. June inflation levels at the national level however were driven by both food and non-food inflation, with higher NCPI levels in June primarily attributable to the 0.5% Y-o-Y increase in food inflation (0% Y-o-Y in May’18).

Higher transport costs on the back of the upward administered price revisions to petrol, diesel and bus fares meanwhile, increased non-food inflation which rose 4.2% Y-o-Y in June’18 relative to 3.8% Y-o-Y in May’18.

Despite headline national inflation rising on a point to point basis, NCPI measured on an annual average basis decreased from 5.7% in May 2018 to 5.3% in June 2018.

However, NCPI Core inflation, which reflects the underlying inflation in the economy, increased marginally to 1.8% Y-o-Y in June 2018 from 1.7% Y-o-Y in May 2018.

Meanwhile, Sri Lanka’s external sector performance in May’18 was modest, with the trade deficit (although expanding over the month), expanding at a slower pace as export growth outpaced import growth.

In terms of current account service inflows meanwhile, although Tourist earnings continued to increase, workers’ remittances declined during the month.

Inflows to the financial account of the balance of payments (BOP) meanwhile moderated, with net outflows from G-sec markets and a reduction in net inflows to the Colombo Stock Exchange (CSE).

Sri Lanka’s gross official reserves at the end May 2018 consequently stood at $8.8Mn while the LKR depreciated by 3.3% by end May 2018 and 4.5% YTD.