business Sri Lanka

The Colombo Stock Exchange has requested a root cause analysis from the system provider Iron One Technologies Pvt Limited regarding a disruption to the order management system provided to four Stockbroker firms during trading, which resulted in trading difficulties to clients of these firms.

System providers are an integral element of a technologically driven, smoothly functioning capital market, especially in the perspective of investor accessibility. The CSE therefore stresses the importance of system providers taking all possible proactive and preventative measures to provide seamless services and access to investors.

The exchange did not view completely limiting market access to local and international investors via a trading halt as a viable response to system difficulties faced by one system provider. The CSE would like to reiterate that close supervision and monitoring of system providers would be done on a continuous basis. Furthermore, CSE categorically states that a WhatsApp message being circulated alleging CSE manipulation in yesterday’s trading is completely false and misleading.

The Consulate General of India in HCM City in collaboration with the Investment and Trade Promotion Centre of HCM City (ITPC) held a webinar about investment cooperation in medical devices between the two countries on Tuesday.

Dr. Madan Mohan Sethi, Consul General of India in HCM City, said the medical device industry in Việt Nam is one of the most promising sectors for foreign investment due to the country’s rising demand for medical care and equipment.

“There is a lot of untapped potential in this area. The current COVID-19 crisis in Việt Nam has given an opportunity to both sides to join hands and set up alternative global supply chains in different products and pharmaceutical products that have been disrupted by the pandemic,” he said.

Last week, the Indian community in southern Vietnam donated an ECMO machine to the Tropical Diseases Hospital in HCM City, according to Sethi.

Trần Phú Lữ, deputy director of ITP, said that domestic medical equipment production only meets 1.5-2 per cent of demand and auxiliary technology is also limited, only meeting about 3% of demand. Currently, most medical equipment is imported from developed countries.

Tran Phu Lu, deputy director of ITP, said that domestic medical equipment production only meets 1.5-2% of demand and auxiliary technology is also limited, only meeting about 3% of demand. Currently, most medical equipment is imported from developed countries.

Gurvinder Singh, director of Engineering Export Promotion Council of India (EEPC), said the Indian healthcare market is expected to reach US$372 billion by 2022.

India is the fourth largest market for medical devices in Asia and among the top 20 in the world. The virtual meeting was well attended by medical device manufacturers and suppliers from both sides.

(Source: VNS)

Central Bank of Sri Lanka said that Sri Lankan reserves were strengthened by receiving USD 787 million from IMF’s SDR facility and a further USD 150 million from Bangladesh Central Bank as a swap arrangement.

In addition a further RMB 2000 million (around USD 300 million) from China Development Bank is expected to be received in the near term.

The Institute of Certified Management Accountants of Sri Lanka (CMA) will conduct a webinar free of charge on ‘Embedding Priority UNSDGs in Corporate Strategy’ on Thursday, September 2, 2021 from 6.00 p.m. to 7.30 p.m. via Online Zoom Platform.

Since the Launch of the UN Sustainable Development Goals in December 2015, and the new Focus on ESG driven through Integrated reporting, Corporates have been trying to do the right thing by attempting to engage with all 17 UNSDG’s.

The session will focus business on the ‘Strategic priority UN SDGs which they should embed in corporate strategy in Sri Lanka, by presenting the rationale for that focus.

The presentation will be made by Dr. Ravi Fernando Chairman / CEO Global Strategic Corporate Sustainability Pvt Ltd and Executive in Residence INSEAD (France). Dr. Ravi Fernando received a US Copyright for his work at Cambridge University for the concept of ‘Strategic Corporate Sustainability’©. In November 2015, he published ‘Strategic Corporate Sustainability – 7 Imperatives for Sustainable business’ (Partridge), based on his work at Cambridge University.

CMA Sri Lanka has been conducting continuing professional development programmes for its members and those in the corporate and government sector all online. Further as a member of the International Federation of Accountants, the global body for the accounting profession, it is now mandatory for all members of CMA Sri Lanka to update their knowledge and attend the CPD programmes.

CMA Sri Lanka has met the challenges of the current COVID Pandemic and have provided uninterrupted services to its students using digital means and conducts education for students online through approved educational institutes and all exams are conducted online with the support of Pearson VUE USA.

It also conducts all class room based mandatory skill based training programmes online.

More details could be obtained from, registrations@cma-srilanka.org

Colombo bourse witnessed some volatility during the first hour of trading and then maintained the upward momentum throughout the trading session to reach a market capitalization Rs. 4.0 trillion yesterday whilst recording a healthy turnover of Rs. 10 billion.

The All Share Price Index inched upwards by 103.2 points (+1.2%) to close at 8,997.6 whilst the S&P SL20 Index also increased by 65.4 points (+1.9%) to close the day at 3,375.7. Expolanka Holdings, Commercial Leasing and Finance, Browns Investments, Commercial Bank and Sampath Bank remained as the top positive contributors to the ASPI during the day.

Further, broader market’s total turnover stood at Rs. 10,864 mn against the 12-month average daily turnover of LKR 3,670 mn, whilst the volume traded for the day was 328,880.5k against the 12-month average daily volume of 200,696.7k. Materials, Transportation, Capital Goods, Diversified Financials and Food and Beverage sectors mostly contributed to the day’s turnover.

In addition, the All share price index gained 877.1 points (+10.8% MoM, +32.8% YTD) whilst S&P SL20 Index also gained 313.6 points (10.2% MoM, 28.0% YTD), recording the total monthly turnover over Rs. 143 bn to conclude the month of August’21. The top traded counters for yesterday were Expolanka Holdings Rs. 4,947.8 mn (+18.9%) which contributed to 45% of the total turnover, Browns Investments Rs. 1,788.1 mn (+1.9%) LOLC Holdings Rs. 717.6 mn (-1.5%), Dipped Products Rs. 493.6 mn (-1.2%) and Hayleys Rs. 458.8 mn (0.0%).

Further, off-board transactions were witnessed in Ambeon Holdings (Rs. 100 mn), Sanasa Development Bank (Rs. 20 mn), John Keells Holdings (Rs. 65 mn), Sampath Bank (Rs. 30 mn) and Windforce (Rs. 63.7 mn) and yesterday.

Additionally, SMB Leasing (Non-Voting), Industrial Asphalts, Shalimar, Expolanka Holdings and Chrissworld were the top price gainers yesterday whilst Serendib Land, The Autodrome, Softlogic Life Insurance and York Arcade were the top price losers. (Courtesy: Softlogic Stock Brokers)

Infomate, Sri Lanka’s first shared service provider and a subsidiary of John Keells Group, is a pioneering BPM organization, with a forte in the Finance and Accounting service sector. The company has achieved significant success in the global arena and is currently rated amongst the top 6 BPMs in terms exporter revenue earnings.

Continuing to remain a top contender in the industry and achieving the highest excellence in the field, through their people, processes and technology, the company has multiple reference clients in Europe and Australia, including leading names in agriculture, manufacturing, real estate, healthcare and professional services.

With 16 years of experience in serving some of the biggest Global brands, commencing from August 2021, Infomate will introduce their renowned HR and Payroll outsourcing services to corporates in Sri Lanka, with the objective of supporting local businesses to reduce costs, leverage on streamlined efficiencies in their operations and boost productivity.

Speaking of this initiative, Jehan Perinpanayagam, CEO of Infomate said “with businesses having to rethink their strategies and adopt digital technologies en-masse, has led to outsourcing being an enabler of business transformation and resilience. This has been proven statistically, where BPOs are shown to be more cost effective as against more traditional delivery models, where the cost typically escalates year-on-year. As such, we felt it was an opportune time to come forward to support local businesses and organizations reap the benefits that we have helped our international clients and John Keells Group’s subsidiaries achieve over the years”.

“Our passion lies in introducing the best practices and processes to an organization’s business operations and enabling our clients to focus on their core areas of expertise, while we take care of the more rule-based tasks in hand. We will be looking to exceed service levels and continuously create value for clients through improved processes, recommendations, automation of manual functions, and benchmarking against world class parameters to help clients uplift their entire functions to premier standards.”

Supporting organizations as an extended office, Infomate’s expertized offerings will include customized payroll solutions that offer flexible formula definitions for allowances, deduction, overtime and leave.

Their powerful reporting features allow easy output of statutory reports and analysis of data to generate actionable insights.

In addition, Infomate will also handle workforce analytics, manage benefits and human resource best practices.

With the introduction of their global outsourcing solutions into the local market, Infomate is optimistic in guiding Sri Lankan businesses to stay competitive, by offering them a comprehensive suite of independently deployable modules to recruit, manage, align and drive performance of an organization’s people related processes.

SDB bank recorded a 53% increase in its profit for the six months ended 30 June, compared to the same period last year.

A leading financial value creator in Sri Lanka for SME and women entrepreneurs, SDB recorded an exceptional Rs. 502 million in profits from total comprehensive income from January to June this year. This achievement rides on the bank’s positive growth trajectory displayed in 2020, where it recorded a whopping 279% annual profit rise compared to 2019, further complemented by its strong performance in the first quarter of 2021.

The bank’s Net Interest Income amounted to Rs. 3,169 million for the first six months of this year – a 9% year on year growth, while its Net Fee and Commission Income grew up 52% compared to last year. Total operating income grew by 10% year on year for the period, reaching Rs. 3.5 billion.

“SDB bank has been steadfast in its growth and performance throughout the pandemic that has crippled many organisations, and the reason lies in the bank’s commitment to its long term objectives and its innovative mindset which is translated into a range of new products we’ve launched to cater to the needs of our customers during these trying times,” SDB bank CEO Thilak Piyadigama said.

SDB bank increased its impairment cost in the second quarter considering the increased risks and uncertainties prevailing due to COVID 19 and in compliance with the stringent controls over NPL and Bucket movements which resulted in reducing the bank’s impairment cost by 24% year on year.

The bank recorded Rs. 108.6 billion net in its loan book as of June 30, 2021, at a growth rate of 6% for the first half of the year, with its loan portfolio growing by 18% year on year. While the NPL ratio was controlled at 4.77%, the net non-performing advance ratio slightly deteriorated to 1.87% in Jun 2021 from 1.79% in December 2020 due to prudent provisioning.

SDB bank’s deposit portfolio reached to Rs. 98.9 billion (net) as at June 30, 2021, at a growth rate of 6% for the first half of year (December 2020 to June 2021), with the deposit portfolio growing by 22% year on year. By the end of June, the bank’s total assets increased to Rs.137.42 billion at a growth rate of 6%, whereas the year on year growth of total assets increased to 20%.

The recently ended Secondary Public Offering (SPO), which was successfully completed with a significant oversubscription, will fuel the SDB bank’s future growth momentum.

Asian Development Bank (ADB) President Masatsugu Asakawa received unanimous support for a second term as ADB President from the members of ADB’s Board of Governors voting in the recently concluded election. His new term runs for 5 years beginning on November 24, 2021.

Asakawa was first elected as ADB’s 10th President on November 30, 2019 and assumed the position on January 17, 2020, serving the remaining term of his predecessor, Takehiko Nakao.

“My vision for the upcoming term is for ADB to serve as the premier development institution for Asia and the Pacific as it supports its developing member countries (DMCs) in recovering from the coronavirus disease (COVID-19) pandemic on a renewed path toward the prosperous, inclusive, resilient and sustainable future we envisioned in our Strategy 2030,” said Asakawa.

Since taking office in January 2020, ADB has made significant contributions to the region’s COVID-19 pandemic response and recovery planning with a US$20 billion comprehensive response package and $9 billion Asia Pacific Vaccine Access Facility. ADB also concluded in September 2020 a successful replenishment of more than $4 billion for its Asian Development Fund and Technical Assistance Special Fund, which provide critical grant resources for vulnerable DMCs.

Prior to joining ADB in 2019, Asakawa was the Special Advisor to Japan’s Prime Minister and Minister of Finance, and has a close-to-four decades’ career at the Ministry of Finance, where he gained extensive and diverse experience in international finance and development.

ADB was established in 1966, it is owned by 68 members—49 from the region.

Janashakthi Insurance PLC (Janashakthi Life) recorded a growth of 145% in first year regular premium business during the second quarter with the upward trajectory of gaining two market positions up in first year premium compared to 2020.

Furthermore, Janashakthi Life also recorded a growth of 50 per cent in gross written premium with year-to-date growth of 45 per cent reaching a premium income of Rs 2.4 billion as at the end of the period under review. The Company recorded a profit before tax of Rs 287.1 million and the investment income recorded approximately Rs 1 billion. Furthermore, net claims and benefits to policyholders during this period also recorded nearly Rs. 1 billion.

“Our strong performance reasserts the agility and success of our business strategies even amid challenging economic conditions. It is commendable how the Janashakthi team has gone above and beyond to cater to the customer’s wellbeing reinforcing our commitment to our policyholders. Health and safety of our employees, customers and community are of paramount importance and we will continue to respond responsibly. Furthermore, as a part of the Janashakthi Group we have the opportunity to utilize combined strengths while adapting to the evolving needs of the community,” commented Prakash Schaffter, Executive Deputy Chairman of Janashakthi Insurance PLC.

Janashakthi Life realigned its sole focus on Life Insurance in 2018, in a strategic move calculated to achieve long-term growth.

Janashakthi Life’s Director/ Chief Executive Officer, Ravi Liyanage said, “The most significant turnaround achievement was the growth of 145% in first year regular premium business during the second quarter with the upward trajectory of gaining two market positions up in first year premium compared to 2020. At the same time, gross written premium also grew significantly with 50% growth during the second quarter of 2021.”

“We have revisited our strategies to respond to the evolving needs in a prudent and far-seeing manner while focusing on our role as a trusted life insurer. We will continue to provide innovative solutions and respond with integrity and transparency to our customer’s needs. These core values of integrity and commitment to growth are what steers us ahead through winning and sustaining the trust of all our stakeholders.”

Over a span of 26 years, Janashakthi Life has continued to revolutionize the insurance industry and in order to facilitate seamless continuation of life policies and enhanced accessibility the company has introduced multiple ways of paying premiums through online platforms and bank transfers.

K E D Sumanasiri -General Manager BOC and Crispin Wijesekera -Country Manager-UnionPay Sri Lanka and Maldives holding the symbolic Union Pay Cup Card. K P Mallika –AGM Digital Products Promotion, Haritha Rajapakse- Assistant General Manager –IT, Eranga Bandara- Assistant General Manager -Electronic Banking Centre, Y. A. Jayathilake-Deputy General Manager-Product and Banking Development, Benzy Fernando-Head of Products and Business Development-UnionPay International, Sri Lanka and Maldives, Arouf Amanath Samoon-Head of Marketing-UnionPay International Sri Lanka & Maldives, Hasitha Amarasekara-Chief Manager-Digital Products Promotion, Thanuja Perera -Chief Manager – IT look on.

Bank of Ceylon (BOC) has partnered with UnionPay International (UPI) to offer UnionPay QR code payment service in Sri Lanka. UnionPay is the first global card scheme to partner with BOC to enable QR code payment service in Sri Lanka, BOC announced.

With this collaboration, Bank’s merchants with LANKAQR QR will also accept UnionPay QRC, enabling UnionPay App holders to make QR payments in Sri Lanka. Anyone, who has a wallet with UnionPay QRC enablement can scan the Bank of Ceylon QR code at merchant locations and pay for goods and services.

“As the largest Bank in Sri Lanka, we are proud to join with the global card Scheme, UnionPay for introducing QR Code payments enabling all BOC SmartPay QR merchants to accept payments from any tourist or foreigner with UnionPay enabled QR App,” stated the General Manager, Bank of Ceylon, K E D Sumanasiri at the launching ceremony held in par with the bank’s 82nd Anniversary.

“With this new facility, SmartPay App will be more popular among our merchants and the leading position secured by us in QR Transactions in Sri Lanka will be improved further. So, this would be a good opportunity for both BOC and UPI to improve their business turnover and market share and enhance the digital footprint in Sri Lanka’’

“Any customer who has the capability of using UnionPay QRC will be able to perform transactions more easily and conveniently to merchants who accept QRC payments in Sri Lanka. This fully reflects UPI’s support for local supervision and is believed to be conducive to Sri Lanka’s economic recovery after the COVID-19 pandemic” said Michelle Shao, General Manager of UPI HK Branch, joining the event virtually from Hong Kong.

“We are very keen to further expand the relationship with BOC in the near future to enhance the payment industry in Sri Lanka.”

The UnionPay QRC is generated in conformity with EMVco standards and in accordance with guidelines provided by UnionPay.

The Ceylinco F&G Depositors Association alleges that the current restructuring committee appointed by the Supreme Court to look after the interests of the depositors and find an investor to bail out Ceylinco F&G and Fingara Company (FGPDL and FGRECL) is purposely delaying its progress.

According to President of Independent Depositors Association, C. Caldera, the Supreme Country recently requested to form a Special Purpose Vehicle (SPV) to coordinate with Sarath Subasinghe from ZTR Company and transfer assets of this company or come up with another solution.

ZRA Holdings was recommended to take over the failed F&G companies as per KPMG’s final report dated September 26, 2018. ZRA Holdings partnered with NLH Holdings to acquire the two companies by collectively showing their proof of funds to invest and revamp the said entities.

“Investor, Subasinghe, involved in the real Estate segment was to sell some of the properties according to the current market value and pay back the deportees. Under this agreement depositors in Ceylinco Property Developers were to receive 51% of their deposits while F&G depositors were to receive 61% of their deposit value.”

The investor was to then formulate a Share Issue and offer the balance in shares 49% and 39% respectably to the depositors of both companies compactly settling them. Subasinghe alleged that the restructuring committee had called for a Special EGM with the former Directors on March 24 where they had said they wanted more time to study the investor’s proposal.

“Calling for an EGM by this committee was ‘not mentioned’ by the Supreme Court and hence it’s a violation of the Supreme Court order,” he alleged.

Meanwhile when contacted by ‘Daily News Business’, ROSHAN FERNANDO (employed in one of the leading conglomerates in Sri Lanka), who was appointed to head the Committee by the Super Court said he was unable to comment on this without the approval of the Board members.

Although he promised six days ago to get a comment after contacting the Board nothing has materialized. There was also no response to the subsequent SMS that was sent by this writer requesting for a comment.

When some of the Ceylinco property companies folded up some 5,600 depositors had around Rs.8.3 billion deposits. Later around 10% of some of the depositor’s capital were paid due to the intervention of the Central Bank. Several depositors also committed suicide due to this issue.

Hence it’s dejected to note that a person/Board who were appointed by the Supreme Court to settle this issue is not responding to the media, to spell out the developments/progress to depositors as well as the public of a burning issue of this nature.

The official sponsor of the National Paralympic team for over two decades, Dialog Axiata PLC, congratulates the extraordinary achievement accomplished by Gold Medalist and new Javelin F46 world recordholder Dinesh Priyantha Herath and Bronze Medalist, Samitha Dulan Kodithuwakku for their unparalleled achievements at the Tokyo 2020 Paralympic Games.

Dinesh Priyantha Herath made history in the morning hours of Monday the 30th of August 2021, when he secured Sri Lanka’s first ever Gold at the 2020 Paralympic Games in Tokyo, Japan, while his team mate Samitha Dulan Kodithuwakku, a short while later secured Bronze on a personal best distance of 65.61 meters in the F64 javelin event.

Dinesh Priyantha Herath, who is also the captain of the nine member Sri Lankan contingent entered the game’s record books by establishing a new world record throw of 67.79 meters in the men’s javelin F46 event.

Commenting on his record-breaking win, Dinesh Priyantha Herath said, “My main target was to set a new world record and win a gold medal for my country. It took years of dedication and I am extremely happy to have achieved these accomplishments. Following the injuries I suffered in 2008 while serving my country, it took four years of rehabilitation, after which I started Javelin in 2012. I would like to thank my family, my team, and everyone who supported me on my journey towards this victory.”

Speaking on this momentous occasion, Hon. Namal Rajapaksa MP - Minister of Youth & Sports said, “It was a defining moment for our nation when the Sri Lankan national anthem echoed across the arena as Dinesh Herath won this historic Gold for our country. We are incredibly proud of his achievement. I would also like to commend the National Paralympics Committee for enabling these athletes to achieve greatness at a global platform, their commitment and dedication to the program has been exceptional. Combined with the efforts of the Department of Sports Development, the Ministry of Youth & Sports & the National Sports Council’s high-performance program the Paralympic committee has set the bar for all other sporting bodies in Sri Lanka. I would also like to thank Dialog Axiata for their unwavering support towards the National Paralympic team for over two decades and for showing us all how empowering sports can truly transform lives.”

Col. Deepal Herath, President of the National Paralympic Committee said, “We are incredibly proud of Dinesh Herath for making Sri Lanka continuously proud over the years and Samitha Kodithuwakku for his personal best throw at the 2020 Tokyo Para Games. It is a testament to the contingent working as one team to achieve this Herculean goal. We are immensely thankful to Dialog for their unwavering support extended since the year 2000, believing in our athletes and empowering their unparalleled achievements through the years”.

Maj. Gen. JR Ampemohotti, the Chef de Mission of the Sri Lanka contingent said, “Sri Lankan Paralympians have performed admirably and have brought glory to their country by winning consecutive medals at the 2020 Tokyo Paralympic Games. Despite restrictions to training due to the COVID-19 pandemic the team has worked hard to do what it takes to climb the podium and we are incredibly proud of their achievements.”

Commenting on this milestone achievement, Supun Weerasinghe, Group Chief Executive of Dialog Axiata PLC said, “The historic win by Dinesh and Samitha is a testament to all Sri Lankans on what can be achieved with dedication, perseverance and discipline. Dialog Axiata is proud to have been part of this historic journey with the National Paralympic Committee and Army Para Games for the last two decades. We remain committed to nurturing Sri Lanka’s Champions of Tomorrow to reach the pinnacle and bring glory to our motherland.”

Dialog Axiata is the proud sponsor of Sri Lanka’s National Cricket, Rugby, Volleyball and Netball teams. The Company also has a close association with the President’s Gold Cup Volleyball, National Junior and Senior Netball tourneys, Club Rugby, Schools Rugby, Premier Football, Schools’ Cricket, Junior Volleyball and Paralympic sports – whilst also powering the Army Para Games, National Para Games and the Sri Lanka contingent to the World Paralympic Games.

The Sri Lankan rupee has further depreciated to Rs 204.89 against the US dollar.

Meanwhile, the buying rate of a rupee stoods at Rs.198.90 against the US Dollar.

Over 200 agribusinesses in Sri Lanka are now better informed on the business need for climate change adaptation following a successful webinar, ‘Experience from Industry Leaders,’ organised by The Ceylon Chamber of Commerce in partnership with the Australian Government-funded Market Development Facility (MDF).

The virtual event was the first in a planned series for local agribusinesses titled, ‘The Business Case for Climate Change Adaptation for Agribusinesses’. The series raises awareness on climate change implications for Sri Lanka’s agriculture sector and highlights the need for strong private sector focus on adaptation and mitigation to ensure resilience of businesses and investments. The kick-off webinar was attended by close to 200 agribusinesses of varying scale, reflecting growing business interest in how to effectively manage climate change alongside growing profits.

The Intergovernmental Panel on Climate Change (IPCC) published a landmark report earlier this month indicating a ‘code red’ alert for humanity. Impacts of climate change like high temperatures, changes in rainfall and extreme weather events like floods and landslides are increasingly felt across Sri Lanka at varying levels, impacting businesses and rural livelihoods.

Opening the event, Australian Deputy High Commissioner to Sri Lanka Amanda Jewell said, “Australia is keen to support Sri Lanka adapt to climate change, and to plan, prepare for and respond to climate change related impacts.”

“We hope this event provides a wonderful opportunity for business leaders in the agriculture sector to come together to discuss common objectives to expand climate change mitigation and adaptation to increase profits and advance business models. Particularly, as the world copes with challenges posed by the COVID-19 pandemic, sustainability has become an essential cornerstone for building resilience of our businesses and investments,” she added.

The event featured expert knowledge from industry veterans such as Dilhan Fernando, CEO of Dilmah Ceylon Tea Company PLC; Charitha Subasinghe, President Retail, John Keells Holdings PLC; Shea Wickramasingha, Group Managing Director, CBL Group; Dr. Rohan Fernando, Managing Director, Aitken Spence Plantation Managements PLC and Dr. Giriraj Amarnath, Principal Researcher and RGL Disaster Risk Management and Climate Resilience, International Water Management Institute. The webinar was moderated by Nisthar Cassim, Senior Journalist and Editor of the Daily Financial Times.

Dilhan Fernando, CEO Dilmah Tea Company PLC noted, “Globally, climate change is expected to reduce crop yields by 10 – 25 per cent by the end of the century. Therefore, we have a very serious issue relating to food security, export economy, and also social instability and could be a result of weakening rural economy.”

“Every business is a product of its environment. We see agribusinesses challenged in an unprecedented way. The solutions are there. We have the tools; we have the knowledge in our ancestors which is incredibly important today. We need to learn to collaborate. We need to change from an attitude of confrontation to one of collaboration with nature. Because in collaboration we have incredible potential,” he said.

“Sustainable approach to agriculture is a necessity and we too are facing the challenges of climate change. I hope that more SMEs and farmers have access to this information and knowledge,” said Suresh Ellawala, Chairman of the Lanka Fruit and Vegetable Producers, Processors and Exporters Association, who participated in the webinar.

Participating businesses also had the opportunity to explore the possibility of accessing MDF funding to invest in socially inclusive and sustainable climate change adaptation and mitigation strategies.

MDF is funded by the Australian Government and implemented by Palladium in partnership with Swisscontact. In Sri Lanka, MDF’s focus is on supporting the high value tourism, agriculture and fisheries sectors with cross-cutting investments to promote climate change mitigation and adaptation, access to finance and digital adoption.

To date, MDF’s investments have benefitted 28,710 disadvantaged men and women and generated an additional income of USD 15,091,000 for Sri Lanka.

Deputy Director General of Health Services Dr. Hemantha Herath yesterday said that the number of COVID-19 cases and deaths is expected to decline after the next two weeks due to the effectiveness of the Quarantine Curfew.

The number of cases that are reported within the next few days will give an indication about the conduct of the people during the prevailing Quarantine Curfew and the future direction of the pandemic, Dr. Herath added. Public discipline and cooperation was vital to curb Covid, he pointed out.

He hoped that the number of Covid cases will see a decline as the Quarantine Curfew has been imposed very strictly by the Security Forces and the Police for the past 10 days with the objective of arresting the spread of the virus islandwide.

The Deputy Health Director General said that there should be proper guidelines for every sector of the economy and public life including public transport to prevent the spread of virus after the quarantine curfew is lifted. It is currently due to be lifted on September 6, but medical professionals’ associations have urged the Government to continue the lockdown for at least two more weeks to see more effective results. They say that at least 7,500 deaths can be prevented if the curfew/lockdown is continued until September 20, 2021. This goes up to 10,000 of the lockdown goes on until October 2.

Dr. Herath said that the respective authorities and heads of institutions should formulate a mechanism to ensure the safety of their work forces after the Quarantine Curfew is lifted at any given time.

“If such a proper mechanism is not in place, the spread of the virus cannot be controlled with the re-opening of the country,” he said.

Meanwhile, with 14,394 recoveries reported on Monday (30), the total number of COVID 19 recoveries in Sri Lanka increased to 371,992, the Epidemiology Unit of the Health Ministry said. Health experts say this is a very good recovery rate.

As per the statistics of the Epidemiology Unit, the total number of Coronavirus cases increased up to 431,519 by yesterday evening and COVID-related fatalities increased to 8,775. Around 50,752 patients are still receiving treatment at hospitals and Intermediate Care Centres (ICCs). The Government has also bought down the required stocks of medical Oxygen for COVID ICU patients.

Tesla is in talks with at least three Indian auto component suppliers as part of its plans to enter the local market, the Economic Times reported. The company is seeking critical electrical, electronic and mechanical components, the report said, citing people familiar with the matter. The parts include instrument panels, windshields, differential brakes, gears and power seats, the paper said.

Sona Comstar, Sandhar Technologies and Bharat Forge are among Indian companies already supplying components to Tesla, the Economic Times said. Tesla didn’t respond to queries by the paper on the talks.

A Tesla factory to produce cars in India is “quite likely” if the electric automaker can first begin sales with imported vehicles, CEO Elon Musk said in July.

Tesla is currently lobbying for lower taxes on imports as it considers plans to expand into India, one of the world’s biggest emerging car markets, Bloomberg News had earlier reported, citing people with knowledge of the matter. (Gulf News)

Capital Alliance Limited (CAL) – one of Sri Lanka’s leading full-service investment solution providers – introduced Video KYC (Know Your Customer) via their CAL Customer Portal to facilitate paperless, digital signature backed onboarding for investment products, offering a winning combination of greater convenience and safety for individual customers. By eliminating the need to fill PDF or physical documents, the end-to-end digital onboarding process available via both mobile and online web channels is tailored to be highly customer-centric with enhanced user experience and digitized workflow, resulting in an effortless and fast-tracked process that can be accessed from any time, anywhere by customers in an increasingly contactless world.

‘Know-Your-Customer’, or KYC is the identity authentication of new customers for account opening or onboarding, a due diligence approach adopted by banks and financial organizations to verify their customers according to heightened regulatory requirements. With Video KYC, CAL enables an encrypted audiovisual engagement, offering customers live assistance with the onboarding process, making the experience more efficient with visual verification, digital signatures and multi-factor authentication.

Interested parties can visit portal.cal.lk or download the CAL Online mobile app for iOS / Android for onboarding.

Sri Lanka’s volatile dollar bonds are set to jump the most in Asia this month after its central bank unexpectedly raised interest rates earlier in August in a move that may help boost the country’s foreign exchange reserves.

But default concerns remain for the notes, with S&P Global Ratings last week cutting the outlook on its junk CCC+ ratings for the country to negative, citing risks that attempts to boost reserves may fall short of the government’s expectations.

The dollar notes have gained 2.9% in August, the biggest increase across Asia, according to a Bloomberg index. The bonds had been falling for the month until the rate hike on Aug. 19, and they were the worst performers in the previous two months.

The debt fell 0.1% on Friday after the S&P move.

Any increase in reserves totaling $2.8 billion at the end of July would help Sri Lanka address debt maturities next year totaling $1.5 billion.

The nation has already used a part of that stockpile to repay $1 billion of bonds last month.

(Courtesy Bloomberg and Anusha Ondaatjie)

Lakdhanavi Limited’s National Long-Term Rating at ‘AA+(lka)’.

The Outlook is Stable. Fitch rates Lakdhanavi based on the consolidated profile of its parent LTL Holdings (Private) Limited (LTLH) due to the strong legal and operational linkages between the two entities, as defined in our Parent and Subsidiary Linkage Rating Criteria.

The affirmation reflects LTLH’s ability to maintain net leverage, with proportionate consolidation of its subsidiaries, 51%-owned Lakdhanavi Bangla Power Limited (LBPL) and 56%-owned Feni Lanka Limited (Feni), below its negative rating sensitivity of 5.5x in the next few years, despite debt-funded investments.

The rating also reflects LTLH’s leading market position in the operation and maintenance (O&M) segment in the country’s power sector, stable cash flow generation from fixed long-term power generation contracts in Bangladesh, and strong EBITDA margins, which are offset by its high counterparty risk.

Strong Linkages with Parent: We view the operational and legal linkages between Lakdhanavi and its weaker parent, LTLH, to be strong under our Parent and Subsidiary Linkage Rating Criteria. The linkages include LTLH’s strong control over Lakdhanavi’s board, presence of a centralised treasury, unrestricted cash flow fungibility between the two entities and upstream guarantees provided by Lakdhanavi.

The active local investor appetite amidst some profit takings backed the Colombo bourse to continue its growth wave where the market touched a daily turnover above LKR12 bn yesterday.

Moreover, given the volatile price movements in certain trading stocks, a market consolidation was observed where the All Share Price Index declined by 36.9 points (- 0.4%) to close at 8,894.4 whilst the S&P SL20 Index also declined by 42.2 points (-1.3%) to close the day at 3,303.1. Expolanka Holdings, Commercial Leasing and Finance, LOLC Development Finance, Hayleys and Ceylinco Insurance remained as the top negative contributors to the ASPI during the day.

Further, broader market’s total turnover stood at LKR 12,852.9 mn against the 12-month average daily turnover of LKR 3,633.5 mn, whilst the volume traded for the day was 650,167.9k against the 12-month average daily volume of 199,601.5k.

Transportation, Capital Goods, Diversified Financials and Food and Beverage sectors mostly contributed to the day’s turnover. In a CSE announcement said, LOLC Holdings PLC, with its robust Micro, Small and Medium Enterprises-based (MSMEs) business model, has disclosed its plans on expanding the global footprint with three parallel investments in Tajikistan in Central Asia as well as to Malawi and Tanzania in East Africa. Further, Expolanka Holdings PLC is making further inroads to Central America with the acquisition of logistics specialists’ firm for $ 9.7 million (around Rs. 2 billion). The acquisition of IDEA Logistics LLC and its group of companies is via EFL Global Logistics Ltd. Singapore and EFL Global LLC, USA fully owned subsidiaries of Expolanka Holdings. Additionally, ICRA Lanka Limited has rated Sri Lanka’s E B Creasy and Company ‘[SL]BBB’ with a stable outlook due to the steady position and improvements in Operation profits On the contrary S&P downgraded Sri Lanka’s sovereign rating outlook to CCC+ negative from stable amidst default worries.

(Courtesy Softlogic Stock Brokers)

Kelsey Developments PLC illustrated its spirit of endurance recording LKR 50 Mn in revenue for the first quarter of the financial year 2021-22. The Company secured cumulative reservations for an expected sales value of LKR. 3,212 Mn as of 30th June 2021, which will be recognized in the following months.

“Our team consistently strived to pursue growth targets while ensuring the safety and wellbeing of all involved. This was not an easy task, yet we succeeded in continuing business operations to achieve sustained growth, in the interest of all our stakeholders. We are confident the country will overcome all challenges and our advantageous position as a member of Janashakthi Group, will strengthen our ability to continue our growth momentum,” commented Eardley Perera, Chairman of Kelsey Developments PLC.

Kelsey Homes’ sales reservations for the period were driven by the projects Central Park Ja-Ela, Verdant Villas Negombo, Urban Gateway Kottawa, and Urban Heights Wattala. Meanwhile, despite operational difficulties stemming from the pandemic situation, the Company completed the sale of housing units of both phases I & II of the Central Park-Ja-Ela project in 2020/2021. At present, the company is successfully carrying out the sale of housing units of phase III of the project, while also focusing efforts on the sale of other ongoing projects.

The sales value of existing inventories is LKR.2.94 Bn. Furthermore, the company has entered into a Sales and purchase agreement to acquire a property in Nugegoda and intends to launch a residential apartment project in the coming months.

“With an insight-driven strategy to create value for all stakeholders, we crafted our strategy to meet the current demand for housing in the country. We are aware that the volatile economic environment amidst the pandemic requires a prudent and time-sensitive approach to operations and will continue to focus our efforts on meeting prevalent challenges on time,” said Kelsey Developments PLC Chief Executive Officer Lalinda Kalubowila.

Kelsey Homes owns a legacy spanning over 35 years with 200 completed projects and over 2,000 happy homeowners.

The Company is known for creating luxurious living spaces that raise the bar in modern living. The company is geared to seek lasting growth through adopting prudent strategies to fuel ongoing and future projects, innovation and drawing strength from the parent company, Janashakthi Group.

Sri Lanka’s first-ever overseas `Laksala’ franchise outlet, organized by Sri Lanka Handicrafts Board (SLHB) to promote the country’s traditional handicraft products to the international market will be opened in Miami, Florida in the USA in early September to strengthen the country’s people-centric economy.

The signing of the business agreement took place at Laksala Head Office, Colombo 7 under the patronage of Batik, Handloom and Local Apparel Productions, State Minister Dayasiri Jayasekera. SLHB, Chairman Attorney at Law Lakmal Wickramaarachchi signed the agreement on behalf of Laksala while Sudarma Warnakulasooriya signed on behalf of Managing Member of Boom Lanka Bathik and Gifts LLC (Ceylon Gallery) in the USA. Ministry Secretary Janaka Dharmakeerthi was also present. The Boom Lanka Batik & Gifts LLC, USA (Ceylon Gallery) is the official franchisee of the Franchise Show Room outlet, at 1381, NW45 Street, Miami, FL 33142, USA.

All Sri Lankan traditional products that are supplied at the franchise outlet are sold under the world-renowned Laksala brand which has been highly recognized among foreign tourists visiting the country annually.

Commenting on the new outlet, State Minister Jayasekara highlighted that Laksala is the country’s only State-owned pioneer gifts & souvenir shop and it was established in 1964 during the tenure of former Prime Minister Sirimavo Bandaranaike. Currently, Laksala has a 12-Showroom island-wide network.

Jayasekara said the main purpose of establishing the new Laksala outlet in the USA was to sell traditional handicraft items including handloom products including batik costumes, gem and jewellery products, Ceylon tea, coffee, local ayurvedic products, organic products and Cosmetic products, produced by Sri Lankan rural craftsmen and also to promote the sale and marketing Sri Lankan handicrafts abroad.

Boom Lanka Bathik & Gifts LLC (Ceylon Gallery), Managing Member Sudharma Warnakulasooriya said both Sri Lanka and USA Trade Associations maintain a long business relationship for a long period and the main objective of this new venture is to popularize Sri Lankan handicrafts in the USA and also to help Lankan rural craftsmen. She said Boom Lanka Batik & Gifts LLC; USA (Ceylon Gallery) has also made arrangements to open 50 new franchise outlets in other states of the USA in the coming months.

India’s telecom giant Bharti Airtel said yesterday it plans to raise 210 billion rupees (RM11.9 billion) by selling shares to existing shareholders ahead of the rollout of its 5G network.

“The board of directors... comprehensively reviewed the industry scenario, business environment, financial/business strategy of the company and approved the company’s plan to raise further capital,” the telco said in a notice to the stock exchange.

The shares will be priced at 535 rupees each, Bharti Airtel said.

Sunil Mittal, the billionaire chairman of Bharti Airtel, and other founding members of the company would take part in the issue, the New Delhi-headquartered firm said.

“In addition, they will also subscribe to any unsubscribed shares in the issue,” it added.

India’s communications ministry in May authorised trials of the super-fast 5G wireless technology.

The trials are being conducted by Airtel and other telecom service providers Reliance JioInfoComm, Vodafone Idea and MTNL. (malaymail.com)

The Coconut Development Authority(CDA) has started discussions with the relevant agencies including the Board of Investment for the establishment of a Specialized Export Processing Zone(EPZ) dedicated to coconut related industries in Hambantota

Priority is to be given for the local industrialists willing to invest in this zone as they have inherited expertise in the industry for decades and coconuts for these industries will be imported from foreign countries in compliance with the required quarantine conditions

Coconut Development Authority Chairman Keerthi Sri Weerasinghe said the Cabinet paper is being prepared for the establishment of this Zone with an investment of US$ 1 billion and it will generate more than 15,000 direct and indirect employments

Weerasinghe said land to an extent of over 400 acres has already been allocated for this project in Hambantota.

“The authority is presently in discussion with the relevant agencies to make groundworks for the project “, he said

Weerasinghe added that the Authority’s main focus is to increase the export earnings to US$ 1 billion from the current US$ 661 million a year with the commencement of commercial operations of the Export Processing Zone

This project is in an area outside the Coconut triangle due to quarantine issues and local industrialists will receive pride of place in this Zone. Foreign investment will also be encouraged as a secondary option.

He said that Sri Lankans have been involved in the industry for over centuries and they have inherited unmatched expertise. Most of our industrialists have opened up industries in Malaysia and the Philippines as the country could not ensure their constant supply of nuts, he said

Weerasinghe added that strict rules and regulations would be introduced to ensure that not a single fibre of imported coconut goes out of this Export Processing Zone This zone will be a boon to the experienced local industrialists who left the country as there was no proper mechanism to ensure a continuous supply of coconuts for their industry.

South Korean institutional economist and best-selling author Ha-Joon Chang called on the Central Bank of Sri Lanka and the government to have targeted credit schemes to boost economic development in the country.

Chang noted that both former and current superpowers namely the United Kingdom and the United States owe their higher standards of living to long periods of protectionist policies. Chang noted that protectionism should be pragmatic if it is to work.

At the time of independence Sri Lanka was over 50% wealthier than South Korea (Korea) with Sri Lankan GDP being US$ 145 to Korean GDP of US$ 94. In 2020 Sri Lankan GDP was US$ 3,682 to Korean GDP of US$ 31,489. Chang noted that there was a notable divergence in the growth trajectories of each country. Chang was speaking at the 71st Anniversary Oration of the CBSL held virtually. Chang noted that countries like Sri Lanka were capable of implementing protectionist policies under WTO regulation but lacked the know-how and political willpower to do so. Chang noted how Korean car manufacturer Hyundai was able to overtake the likes of General Motors and Ford in terms of vehicle output by initially catering to the Korean market under highly protectionist policies and state support.

Chang noted that both the US and the UK used highly protectionist policies during their industrial growth phases. He highlighted the leadership of first British Prime Minister Robert Walpole and Treasury Secretary Alexander Hamilton as implementing protectionist policies which historically account for turning points in the growth of industrial production in their respective countries.

Chang’s research shows that the US for over the last 120-year period averaged between 30-50%. He further opined that large logistical costs act as further protection for domestic producers. Chang noted that even today developing countries have protectionist duties that average at 10%.

He further noted that many countries do not even impose the highest possible taxation allowed under WTO regulation.

Chang likened Free Trade Policies and their advocacy as being akin to kicking away the ‘developmental ladder’ for low-income countries. Chang noted that to this day the United States heavily subsidizes their domestic high-technology industry through Military Defense spending. The Pentagon and the other US Defense establishments play a large role in funding research, acting as a buyer, and directly providing the know-how to firms in the Silicon Valley area.

Chang called on 3rd world countries to flout intellectual property law as had been done historically in current manufacturing hubs like Germany, China, Japan, and Korea. Chang criticized policies that provided subsidized credit to highly speculative and consumption-based sectors of the economy such as real estate and vehicle purchases.

Chang supported recent announcements by the Central Bank to provide targeted credit in the economy.

LOLC with its robust MSME-based (Micro, Small and Medium Enterprises business model is expanding its global footprint with three parallel investments being made in Tajikistan in Central Asia as well as Malawi and Tanzania in East Africa.

LOLC enters Central Asia with its maiden investment in the region through the acquisition of a 75% stake in a company known as Karat, (LLC LTMKh and LLCTMKhL) with a license authorizing them to conduct micro lending and gold loan business in Tajikistan. LOLC will increase its equity stake in the Company to 100% by the year end.

LOLC’s, Deputy Chairman - Ishara Nanayakkara stated that, “Expanding our microfinance model globally is not only about pursuing our commercial ambition, but doing so in a sustainable and socially responsible manner to deliver tangible benefits to those communities at the bottom-of-the-pyramid, who are often overlooked by the formal financial system. I believe the impact we are creating in Sri Lanka, Cambodia and Myanmar, speaks volumes about how our business model is doing just that.”

“How we are holistically responding to the needs of these communities by promoting financial inclusion, empowering women and reducing socioeconomic disparity, in turn triggers broader economic change. It is this formula which has delivered socioeconomic progress for the community and continues to bring commercial success for the Group, that we are looking to replicate through our global expansion strategy. “Meanwhile the LOLC Group’s successful microfinance operations in Nigeria and Zambia have provided the impetus for the Group to further deepen its presence in the African continent through strategic acquisitions of two microfinance companies in Malawi and Tanzania. In Malawi, the Group acquired 100% equity stake of Express Credit Limited, while in Tanzania the Group secured a 96% stake of Tujijenge Tanzania Ltd.

After creating a strong and successful microfinance and SME model in Sri Lanka, LOLC entered into the global MSME arena in 2007 with a maiden investment of just US$0.5 million to acquire an 18% stake in PRASAC MicroFinance Institution in Cambodia. The Group thereafter acquired 70% controlling interest of PRASAC over the next 9-year period. Under the stewardship of the LOLC Group, PRASAC has continued to register exponential growth over the years.

To be able to do so in a Country of a mere 17+Mn people, serves as a clear testament to the versatility of LOLC’s business model in creating value for grass root level communities. The phenomenal success of this investment was further iterated when the LOLC Group divested its stake in PRASAC to South Korea’s largest commercial Bank - Kookmin Bank, with the company being valued at USD 1.1Bn for the second tranche.

LOLC has achieved further success in Cambodia by replicating its MSME business model through LOLC Cambodia, the Group’s second investment in the Country.

Today LOLC Cambodia with a lending portfolio of US$ 900 Mn and US$ 1 billion in assets, is ranked as the fourth largest Microfinance Institution in the Country and also holds the distinct honor of being among the top two most profitable microfinance entities in Cambodia, second only to PRASAC. LOLC’s Greenfield operation in Myanmar, LOLC Myanmar Micro Finance Ltd too remains one of the leading microfinance operations in that Country. Having built a strong lending book and produced consistent profit growth,notwithstanding recent challenges owing to political uncertainty and the COVID-19 pandemic, LOLC Myanmar Micro Finance Ltd has cemented its position as the fourth largest player in Myanmar’s micro finance sector in less than 6 years.

The LOLC Group’s more recent microfinance investments in Indonesia, Philippines and Pakistan too are now recording turnaround results, supported by a steady buildup of MSME portfolios and assets.

Leveraging its success in East Asia, the LOLC Group expects to further grow its microfinance bandwidth across the central Asia, as well as in the Indian sub-continent, where several potential locations have already been earmarked. Similarly, the new investments in Malawi and Tanzania are expected to set the course for the Group to build scale in the Africanregion.

In seeking to further grow its footprint in Africa, the Group expects to focus more intently on penetrating key frontier markets that present strong opportunities for micro entrepreneurship.

LOLC’s global expansion strategy into identified regions in Asia, Africa and Central Asia will be driven by the Group’s tried and tested MSME business model that will aim to reaffirm LOLC’s position as the world’s largest multi-currency, multi-geographic Micro & SME service provider and validate the LOLC Group’s status as the Sri Lankan multination Conglomerates.

Power generation headed upward over the years as defensiveness made the sector resilient against economic fluctuations according to First Capital Research’s GREEN ENERGY report.

Power generation in Gigawatt hours (GWh) has been continuously growing in Sri Lanka over the decades at a 15-year CAGR of 6% and it is expected to grow at even a faster pace over the next decade.

The report adds that Growth in electricity consumption under the tariff categories of

‘Industrial’ and ‘Commercial’ may further accelerate with the gradual rebound in economic activities along with rapid digitalization despite a temporary setback due to the Covid-19 pandemic.

No. of consumer accounts under the commercial category too has been growing over the years at a faster rate than the Domestic and Religious category.

Growth in electricity sales in GWh over the years has been gravitated to the growth in GDP and is expected to follow a similar trend in the coming years.

According to sources from CBSL and Ceylon Electricity Board, First Capital Research estimates that Sri Lanka’s Energy Mix Composition of the total Installed Capacity (MW) over the years shows a continuous growth in Hydro and ORE. Sri Lanka’s vision is to achieve 70% of electricity generated from RE and meet 1/3 of the energy demand from NCRE sources.

Sri Lanka has laid the foundation for various Projects in Sri Lanka towards its Renewable Energy Goal and today ‘Total Renewable Energy’ has a share of 36% of the overall mix.

Planned capacity expansions at the end of 20 years are 1,323MW from wind, 2,210MW from solar, 654MW from mini-hydro and 144MW from biomass.

CEB has also signed Power Purchase Agreements (PPA) for further 539MW ORE power plants. Multiple roof-top solar projects to be developed with more private sector participation.

Operations in Bangladesh and Uganda are distinguished in the composition of income streams of local players, which accounts for a sizable portion in respect of foreign income. Pakistan and Ukraine also generate a noteworthy contribution while Nepal will also expect to join the pack in the coming years.

Commenting on risks for investor the report says, “Occasional changes in policies and regulations pertaining to the power generation will deliver a higher level of risk towards the stability of the sector.

Inability to enforce the policies and goals established upon the adoption of renewable energy sources will lead to confusion and distress among the players as the majority of renewable energy produced by private players.

Given the long-term nature of the projects and high switching costs, any regulatory revisions, political unrest and change in government perception towards the power sector in overseas regions will bring additional risk for the players who are engaged in overseas operations.”

Recording its highest ever profit for a period of six months with a Profit Before Tax (PBT) of Rs. 13. 9 Bn and a Profit After Tax (PAT) of Rs.11Bn, National Savings Bank (NSB) shows strength and financial resilience in performance amidst the heightened uncertainty due to Covid 19 pandemic which has triggered a wide range of shocks on the Banking Sector and the Economy as a whole.

Against the backdrop of COVID-19 impact on the economic activities, the PBT for the first six months of 2021 was Rs. 13.9Bn, which marks an increase of 492.1% from Rs. 2.3Bn recorded in the same period last year, while the PAT was Rs. 11 Bn, with an increase of 942.7% from Rs. 1.1Bn in 2020.

Gross Income of the Bank grew by 9.3% to Rs. 65.8 Bn during the first six months of the year from Rs. 60.2Bn recorded in the corresponding period, last year. During the period under review, the interest income has increased by 8.5% to reach Rs. 64.1Bn, while the interest expense has decreased by 18.8% to Rs. 37.9 Bn due to the prevailing lower interest rate regime which leads to lower interest expenses for the deposits as well as borrowings despite the substantial growth in the deposit base during the first half of the year.

The increase in interest income together with the considerable reduction in interest expenses supported Net Interest Income (NII) to surge by 111.7% to Rs. 26.2Bn against Rs. 12.4Bn stood during the same period last year. Consequently, Net Interest Margin (NIM) clocked in 3.70% at the end of first six months of 2021, higher against the 2.08% as at the same period last year.

Net Fee and commission income grew by 175.4% to Rs. 1.3Bn from Rs. 467Mn mainly driven by the increase in fee and commission income due to conversion/renewal of the existing loans to reduced interest rates as well as increased foreign remittances and coupled with fees generated through digital platforms to where the customers shifted under social distancing and health guidelines. The increase both in NII and Non-Interest Income led the total Operating Income to record a rise of 107.4% to Rs. 27.8Bn during the first six months of the year.

Operating expenses during the period of first six months of 2021, rose by 22.7% to Rs. 9.5Bn compared to the corresponding period of the previous year, which is mainly attributable to the increased personnel expenses owing to the provisions made for the Collective Agreement due in 2021. Meanwhile, the Bank’s cost to income ratio decreased to 34.3% at the end of 1H 2021 compared to 57.8% reported in the 1H 2020.

Even though the NPL increased during the first half of 2021, its rise during the period was relatively lower compared to 1H 2020.

This led to the Impairment charges during the period under review to decrease to Rs. 1.4 Bn by 38.0% compared to the same period in the last year. However, the gross NPL ratio increased to 3.16% mainly owing to the reclassification of some loans and advances under debt and other instruments.

The Bank generated a Return on Equity (RoE) of 37.6% and Return on Assets (RoA) of 1.96% at the end of June 2021. The total asset base of the Bank grew at 9.2% to reach Rs. 1.49 Tn against the Rs.1.36 Tn reported as at the end of December 2020 mainly contributed by the growth in customers’ deposits, which increased by 9.3% to Rs. 1.35 Tn compared to the deposit base reported at the end of December 2020. There is an increase in the pattern of saving of the customers despite the impact of Covid 19 on the economy and lifestyle of the customers.

During the first six months of the year, the Bank has mobilized Rs.118.1Bn worth of deposits which recorded an increase of 23.8% compared to the same period last year. The Bank continued the momentum of mobilizing low-cost funds during the period under review by mobilizing Rs. 30.4 Bn.

Loans and advances witnessed a decline of 2.5% to Rs. 504.1Bn over the last year December figure of Rs. 516.8Bn underpinned by the conversion of Rs.59.4 Bn loans and advances under the “Debt Instruments”.

The Tier 1 Capital and Total Capital ratios stood at 12.28% and 14.80% respectively at the end of June 2021 well above the statutory requirements of 8.00% and 12.00% respectively. The leverage ratio of 5.85% too was well above the minimum requirement of 3.0%.

To foster a saving culture among all Sri Lankans that comes from all segments of the society, and work towards financial and digital inclusion, we focus on strengthening our digital as well as physical footprint.

The ICRA Lanka Limited has assigned the Bank with the issuer rating of [SL] AAA with Stable Outlook. NSB contributes immensely to the wellbeing of the citizens of the country and the development of the economy as one of the biggest lenders in the Banking sector.

The Association of Small & Medium Enterprises in Tourism in Sri Lanka (ASMET) the Apex body which represents the Small & Medium (SME) sector in tourism in Sri Lanka has forwarded its observations and proposals for the amendments to the Sri Lanka Tourism Development Authority Act No.38 of 2005 recently.

Among the main proposed amendments is to amend Sec. 3 of the Act as to identify and define SME Sector individuals, enterprises which engage in the tourism industry in Sri Lanka and safeguard the rights, interest and sustainability of the SME Sector in the tourism industry.

Sec. 4 of the present Act defined the composition of the SLTDA and with the existing composition of the membership in the SLTDA, the ASMET strongly proposed that the Sec. 4 of the existing Act be amended by recognizing and offered one- or two-members Board seats to ASMET in SLTDA which will make possible ASMET to advise the Authority time to time over the SME sector in the Industry to identify and regularize and/or improve SME Sector in the tourism industry.

Sec. 6 of the present Act provides that the SLTDA should be prepared and present long-term goals and a 4-year Plan to develop the tourism industry within Sri Lanka to the Minister of Tourism. ASMET proposes that the 4-year plan be changed into a 5-year plan taking into consideration the implementation difficulties and the delays of the adaptation to the policies made on the proposals by entrepreneurs in the SME Sector in the tourism industry. ASMET also proposes to establish a separate department in the authority to cater the SME sector in the Tourism industry.

ASMET further proposed that the existing Sec. 12(c) (n)(iii) be amended as follows: “to provide financial assistance by way of grant, loan or otherwise, subject to such terms and conditions as may be determined by the Authority, to a SME Sector enterprises in any crisis situations such as pandemic, economic and or civil war crisis prevailing in the country in order to sustain such enterprises and also any persons intending to engage in tourist or travel services;”.

In addition ASMET has made an array of several more suggestions and observations which will be immensely fruitful for the upliftment of the SME tourism sector in Sri Lanka to the Secretary of The Tourism Ministry.

“The ASMET has made several appeals, requests, proposals and grievances during the past to the authorities such as the Ministry of Finance and the Tourism Ministry in time which has always been given a good hearing and provided solutions and granted ASMET favorable replies right throughout the associations history”, President of ASMET M. B. Jayarathna said. (MFJ)

SLT-MOBITEL’s attention has been drawn to recent media reports citing its management of the Lankan Government Cloud (LGC) server and provision of services to the National Medicines Regulatory Authority (NMRA).

Several media reports published have stated that NMRA data which included confidential information on the formulation of drugs and other supporting documents had been allegedly erased from its database last month and a data-backup was unavailable.

The reports note that in 2018 the Authority began accepting online applications for the registration and renewal of drugs and its data was stored on the Lankan Government Cloud (LGC) operated by Sri Lanka Telecom under the supervision of the Information and Communication Technology Agency (ICTA).

SLT-MOBITEL firmly states and places on record that it does not provide hosting services to the ‘Lanka Government Cloud’

Importantly, SLT-MOBITEL confirms that it has not provided such a service to NMRA and no NMRA data is hosted at the SLT Data Center.

As the National ICT solutions Provider, SLT-MOBITEL sincerely assures all Sri Lankans that it has not in any way engaged in any activity that would compromise the trust placed in the company and continues to uphold transparency and accountability in all its operations.

Lenovo, announced the launch of the ThinkPad X1 Fold in Sri Lanka. The ThinkPad X1 Fold is the first of its kind in a new personal computing category that will push boundaries and redefine how we engage with technology and eliminate security threats while working and learning from home.

This latest addition in the ThinkPad family adapts to the new remote, office, and hybrid working models, enabling trailblazers to embrace ground-breaking innovation that will empower creativity, collaboration, and entertainment as it seamlessly transforms to their specific needs.

The X1 Fold offers a revolutionary mix of portability and versatility that defines a new computing category enabled by Intel® Core™ processors, with Intel® Hybrid Technology and Intel’s Project Athena innovation program.

The ThinkPad X1 Fold continues the ThinkPad legacy of trusted quality and reliability thanks to its durable multilink torque hinge design.

Covered in an attractive leather folio, the ThinkPad X1 Fold looks more like a sketchbook than a laptop. At just 2.2 lbs (999g), it provides a split-screen experience and comes with a brilliant and seamless folding OLED screen that provides a full 33.52cms (13.3 inches) 2K display. The device comes bundled with the Lenovo Easel Stand for easy portrait or landscape placement on a desk, and a Bluetooth Mini Fold Keyboard that nests inside the system and are wirelessly charged by being magnetized to the screen when the system is closed.

Users can browse online, stream a video, or watch a presentation, while using the Thinkpad X1 Fold like a tablet, relying on the built-in kickstand or the optional easel to hold it up. Lenovo Mode Switcher appanticipates user movements quickly, and easily allows them to split the screen in two or use full width for one large display.

The ThinkPad X1 Fold offers a true smartphone-like experience in an always-connected PC. Speedy WiFi 6 and the optional 4G / 5G service enable users to enjoy fasterand uninterrupted video streaming.

The X1 Fold comes equipped with the Dolby Access app that uses Dolby Atmos technology to simulate 3D sound.

Naveen Kejriwal, Sales Head – Overseas, Lenovo India said, “With the ThinkPad X1 Fold, we aim to provide our users with the first-ever foldable screen experience in a PC. It will transform productivity on the go for individuals who frequently switch between phones, tablets, and laptops, and are striving for newer benefits and possibilities. With the onset of a hybrid working world, we found that most people want a laptop experience without carrying a laptop for true mobility. The ultra-light and ultra-mobile X1 Fold was developed with this consumer insight in mind.”

The Sri Lanka Association for Software Services Companies (SLASSCOM) driven by their vision of generating USD 5 billion in exports, creating 200,000 employment opportunities and 1,000 start-ups by the year 2025, recently launched the web portal www.startupsrilanka.lk. for their initiative “Startup Sri Lanka” .

Spearheaded by SLASSCOM’s Entrepreneurship and Innovation Forum,”Start up Sri Lanka” is focused on four key strategies, namely, fostering and nurturing startups to become successful internationally; strengthening and creating a cohesive ecosystem to support the start-up lifecycle; positioning Sri Lanka as a high skilled, low risk trial hub, and transforming young disruptors to become successful entrepreneurs, the Entrepreneurship and Innovation Forum is a key enabler of local startups.

Leveraging SLASSCOM’s extensive connections with leading experts from all industries both locally and globally, it will create valuable educational content that would help uplift and empower Sri Lanka’s budding entrepreneurs and facilitate in bringing local businesses together to share knowledge and network through a series of hosted events such as webinars and forum discussions.

The website launch took place with the attendance of the Chairperson of SLASSCOM, Sandra De Zoysa, Entrepreneurship and Innovation Forum board Lead, Sampath Jayasundara, Forum member Romani Rupasinghe and a host of key SLASSCOM members.

“It is a proud moment for SLASSCOM and one of the defining moments of our journey in enabling 1,000 start-ups by the year 2025. The Start-up Sri Lanka website will encourage and empower start-ups in Sri Lanka by giving them a complementary 2-year memberships and support the Startup Sri Lanka Accelerator Program from a digital perspective to ensure the growth of Sri Lanka’s start-ups through a variety of programs," she said.

“Start-ups are energies of growth as they play a significant role in economic growth and contributes to economy dynamism by surpassing innovation and injecting competition. Having a well-connected, nurtured start-up eco-system will give Sri Lanka a huge competitive advantage to emerge as a global destination of choice for knowledge solutions. explained Romani Rupasinghe - forum member and initiative owner of Startup Sri Lanka digital platform.

The Entrepreneurship and Innovation Forum board Lead, Sampath Jayasundara strongly iterated the importance of contributions made by the forum members in order to realise the vision of the creation of the Start-up Sri Lanka web portal.

The Food and Agriculture Organization of the United Nations (FAO) has appealed for humanitarian assistance to be scaled up as Afghanistan continues to be hit hard by an ever-worsening drought that threatens the livelihoods of more than 7 million people who rely on agriculture or livestock.

Many of these people are already among the 14 million people - one in three Afghans - who are acutely food insecure and need urgent humanitarian assistance.

“Farmers and livestock owners must not be forgotten in today’s humanitarian crisis,” said FAO Director-General, QU Dongyu. “Urgent agricultural support now is key to counter the impact of the drought and a worsening situation in Afghanistan’s vast rural areas in the weeks and months ahead.”

The combination of severe drought, COVID-19 related economic impacts and widespread displacement have hit Afghanistan’s rural communities hard, particularly its farmers and herders, who are the backbone of the country’s economy. Food production and agricultural livelihoods are under extreme pressure.

“If we fail to assist the people most affected by the acute drought, large numbers will be forced to abandon their farms and be displaced in certain areas,” the Director-General added. “This threatens to further deepen food insecurity and poses yet another threat to the stability of Afghanistan.”

FAO aims to assist 250 000 vulnerable farming families - some 1.5 million people - for the upcoming winter wheat season. Planting begins in late September and runs into October in many areas. However, current funding will only enable FAO to support 110 000 families. “The window of opportunity to provide this assistance is closing quickly. We must act before it is too late,” said Richard Trenchard, FAO’s Representative in Afghanistan. “If farmers cannot get the seeds they urgently need by the end of September or early October, then the winter wheat season will fail. This will be a disaster for millions of Afghans, both farmers and consumers

New Delhi: The Modi government estimates that around 18-22 crore Covid-19 vaccine doses will be available in September, but this will most likely not include the ZyCoV D vaccine that received emergency use approval Friday.

While manufacturer Zydus Cadila says ZyCoV D could be available by the end or even middle of September, government officials say it is still too early to talk about procurement.

Covishield and Covaxin doses, and Sputnik V, if manufacturing in India meets the deadlines announced, will continue to make up the government’s vaccination programme.

Late Friday, the Department of Biotechnology under the Ministry of Science and Technology, in an official statement announced that ZyCoV D had been given emergency use authorisation. The vaccine is the world’s first DNA vaccine against Covid-19.

Both Health Minister Mansukh Mandaviya and the Central Drugs Standard Control Organisation (CDSCO), the national drugs regulatory body, in separate tweets made it clear that India now has a sixth Covid vaccine in its basket.

These include the three currently in use (Covishield, Covaxin and Sputnik V) as well as those not available yet, such as Moderna’s mRNA vaccine and Johnson and Johnson (J&J)’s Janssen vaccine. Both Moderna and J&J have been struggling with the indemnity question.

The September vaccine availability projections, government officials say, are based on the manufacturing numbers submitted by the vaccine manufacturers. While this is a significant upward move — going up to 46 per cent from 20 per cent from the August numbers of 15 crore doses — this will still mean that the stated target of administering 1 crore vaccine doses per day will not be met in September. The government had originally claimed this would happen by July.

“We are looking at 20 crore doses plus may be a little more. The 20 crore will be from Covishield and Covaxin, and the plus may be some Sputnik or some Bio E. ZyCoV D may come also,” a second government official told The Print.

ThePrint reached Panacea Biotech, Gland Pharma, Hetero Biopharma, Stellis Bipopharma and Virchow Biotech — companies contracted to manufacture Sputnik V in India — over email to understand the issues in the manufacturing of the Russian vaccine, but did not receive a response till the time of publishing this report.

(www.theprint.in)

Information technology company ITX360 has been awarded the Great Place to Work 2021 certification in recognition of its positive workplace culture and employee experiences.

The independent authority Great Place to Work Sri Lanka honours exceptional organizations every year based solely on employees’ feedback.

Saif Yusoof

According to the recent survey conducted by Great Place to Work Sri Lanka with over 120 ITX360 employees taking part, the company scored an impressive 95% confidence rating; a score reflective of highly positive employee engagement, alignment with company values, and confidence in leadership.

“At ITX360 we use technology to make people’s lives better. The passionate spirit which drives our workplace culture is based on the simple principle that ‘greater the dream, stronger the team’,” commented Saif Yusoof, Founder and Managing Director on the award. “To be certified by Great Place to Work® is indeed an honor and testament that our people are behind our success.”

“As leaders we have the opportunity to cultivate an organization by creating an environment and culture for employees to grow, reach their full potential, and become the best version of themselves,” added Silmy Ahmed, ITX360 Chief Executive Officer. “We have always practiced an open door policy of mutual respect and understanding, because I want my team to be proud of what they do.”

“We applaud ITX360 for seeking their employees’ feedback and also the opportunity to certify itself,” said Kshanika Ratnayake of CEO of Great Place to Work in Sri Lanka. “In addition to checking the current pulse of the workplace, these ratings also measure the capacity of a company to earn its own employees’ trust, and subsequently create a great environment to thrive as an employee.”

ITX360 specializes in delivering best-in-class solutions that empower digital transformation, enable organizations to increase productivity, optimize processes, and drive growth with its fit-for-purpose technology services.

Each customized solution is created by combining technical expertise with an unmatched capacity to cater to any industry and scale of business in Sri Lanka and the region.

Great Place to Work is the global authority on high-trust, high-performance workplace cultures.