business Sri Lanka

Colombo bourse concluded an impressive month of November, indices recording fresh highs whilst ASPI gained 12.6% MoM and maintained a healthy average daily turnover over Rs. 7.5 bn with local investor interest on selected counters.

Yesterday, the All Share Price Index increased by 238.4 points (+2.1%) to close at 11,440.5 whilst S&P SL20 Index also gained by46.3 points (+1.2%) to close at 3,829.7.

Expolanka Holdings, LOLC Holdings, Commercial Leasing & Finance, Browns Investments and LOLC Finance remained as the top positive contributors to the ASPI during the day. Further broader market’s total turnover stood at Rs. 10,054.5 mn against the 12-month average daily turnover of Rs. 4,527.3 mn, whilst the volume traded for the day was 350,235.8 k against the 12-month average daily volume of 230,151.0 k.

The Board of Odel PLC in a stock exchange filing announced that Company’s’ fully owned subsidiary Softlogic Brands (Pvt) Ltd has entered into an Operating Lease Agreement with the Kandy Municipal Council on October 1, 2021 via which Softlogic Brands (Pvt) Ltd has been granted the rights to lease, operate and manage the Mahanuwara Commercial Center premises consisting of approximately 164,000 square feet which will be known as the ODEL Kandy Mall for a period of 15 years with the option to renew for a further period of 5 years subject to the terms and conditions of the Operating Lease Agreement.

The Company’s’ fully owned subsidiary Softlogic Brands (Pvt) Ltd intends to operate and manage the ODEL Kandy Mall as a distinguished and unique shopping mall in the City of Kandy.

Early this year in March 2021, the Company announced that it had entered into a lease agreement with the Urban Development Authority for the lease-hold operation and management of the Arcade Independence Square for a period of 10 years with a renewal option for a further 10 years and revealed of its plans in converting the Arcade Independence Square as a luxury boutique experience destination in the country. The ODEL Kandy Mall is another addition to the Company’s cluster of operating and managing high-end shopping malls in the country.

The Company marks this venture as yet another significant milestone in pursuing its objectives of designing the retail landscape in Sri Lanka as a high-end shopping destination in the region.

Singapore media reported that travelers from Sri Lanka, Thailand, Cambodia, Fiji, Maldives, and Turkey will be able to enter Singapore quarantine-free from the middle of next month, with the launch of six new vaccinated travel lanes (VTLs)

This will take the total number of air VTLs announced so far to 27, the Civil Aviation Authority of Singapore (CAAS) was quoted by the Straits Times of Singapore. Pre-pandemic, these 27 countries contributed to about 60 % of the total daily arrivals at Singapore’s Changi Airport, CAAS said. The new travel lanes will further broaden Changi’s network and help reclaim and rebuild Singapore’s status as an international aviation hub with global connectivity, CAAS added.

With the launch of the six new VTLs, the daily quota of travellers allowed to enter Singapore under the VTL scheme will also be raised from 10,000 to 15,000. “This is a further calibrated expansion of the VTL scheme to reconnect Singapore with the world while managing the public health risk,” he said.

Under the VTL scheme, fully vaccinated travellers from VTL countries may enter Singapore without quarantine and just need to undergo Covid-19 testing. Children aged 12 years and below in the calendar year, who are not vaccinated will be allowed to travel under the VTL into Singapore if they are accompanied by a VTL traveller who meets all VTL requirements.

Cambodia, Fiji, Maldives, Sri Lanka and Turkey are all in Category 2 of the Ministry of Health’s Covid-19 risk classification for border measures, and have similar or lower Covid-19 infection rates than Singapore and the other VTL countries, the CAAS said.

Cambodia, Maldives, Sri Lanka and Thailand have already opened their borders to quarantine-free general travel for vaccinated travellers. (RL)

Treasury Secretary S R Attygalle hailed new Finance Minister Basil Rajapaksa for creating a firm stance with his budget expecting line ministries to use funds in the most impactful manner possible.

Attygalle went on to justify the surcharge tax given the costs incurred on the COVID-19 vaccine rollout and highlighted that with the return of tourism revenues the country should regain a comfortable situation in the next 12-18 months.

Attygalle noted that the budget deficit would be around 8.8% in 2022. Attygalle was speaking on November 27 at a Centre for Banking Studies webinar on the recent budget. Attygalle highlighted that the budget aimed to create a strengthened external position, shift towards manufacturing base investments, support vulnerable groups in a targeted manner, and strengthen the fiscal position. Attygalle acknowledged the vital role Samurdhi played in providing support to vulnerable groups but defended the proposed reform mechanisms. He said, “We are aware of the cost-of-living prices going up, mainly due to external factors, but we have identified it. We have noted targeted support for which a sizable amount of funds has been allocated. The most vulnerable groups will be supported.”

The budget shall continue to implement the piped water provision for all citizens of Sri Lanka that is at the core of the current government’s manifesto. The government will look to create non-debt by creating foreign inflows. The government over the short term shall look to divest underutilised assets to foreign investors. The country will also look to securitise the inflows of future foreign remittances.

CBSL Governor Ajith Nivard Cabraal noted that they expect GDP growth to be 6% in 2022 given the low base effect and the high rates of recovery. The calculation of a 6% figure is based on the assumption that the tourism sector will perform at a quarter of its full potential. Cabraal cited the conversation surrounding debt management as being pedantic. Cabraal criticised popular talking heads in the opposition as being frivolous in their usage of the term restructuring. Cabraal noted that debt would in the normal course of business be rearranged to suit the borrower. He highlighted that it was normal practice for a borrower to change between sources of credit, to obtain credit at different costs and tenures, and to look to localise as much debt as possible.

Cabraal was of the view that future financing needs could be met through government-to-government loans further assisted by Central Bank swaps. Cabraal was highly critical of the International Sovereign Bonds issued in the past.

Sustaining growth momentum in FY2021/22, Orient Finance PLC posted a profit before tax of Rs 207.69 million for the first half of the 2021/22 financial year, reflecting an exponential growth momentum compared to the corresponding period in the previous first half financial year.

The Company’s net operating income for the same period increased by 92% from Rs 405.58 million to Rs 777.44 million in 2021/22. While profit before tax of Rs 147.8 million for the second quarter ending September 30, 2021, reflecting a growth of 386% when compared to the corresponding period in the previous financial year. This performance was secured as a result of the expanding the new Gold loan business and reducing the cost of funds. Notwithstanding the challenging economic conditions, the company’s total assets for the period increased to Rs 15.9 billion in comparison to Rs 14.8 billon recorded during the corresponding period in the previous financial year.

Anil Tittawella, Chairman of Orient Finance PLC opined, “Orient Finance has upheld its commitment to its stakeholders to maintain a steady course while driving a sustainable performance. The Company demonstrated resilience in face of adversity and I am confident that we will continue building upwards from where the Company is positioned presently with a legacy of four decades.”

This impressive performance is a testimonial to the visionary management team and the exceptional hard work contributed by staff through the year under review. Sharing the future plans of the Company, K. M. M. Jabir, Director and Chief Executive Officer of Orient Finance PLC said, “The Company has set out on a dynamic course to sustain and grow the profitability in the new normal by leveraging on opportunities, managing costs, launching new products and reinforcing customer relationships.

Recording nearly a tenfold growth with the increase in PAT loss of Rs 20.77 million in the corresponding period in the previous financial year to profit of Rs 200.60 million in the first half of the financial year 2021/22 amid economic challenges faced by the country and the industry gives us confidence that we will end 2021/22 on an even stronger note as compared to the previous year.”

The Ministry of Industry will take the lead in making all the activities carried out by the Ministry of Industry a green mark of the industrialization of Sri Lanka including construction of new industrial zones in accordance with the agreements reached yesterday with the United Nations Industrial Development Organization, said Minister of Industries Wimal Weerawansa.

He was speaking as the Chief Guest at the signing ceremony of an agreement between the Ministry of Industry and the United Nations Industrial Development Organization at the Ministry of Industry in Kollupitiya yesterday.

“The United Nations Industrial Development Organization (UNIOD) has provided US $ 18 million for the next five years for Sri Lanka, especially for minimizing environmental damage, in the field of industrialization, and promoting industrialization under the green concept,” he said.

Commending the Government’s decision allow private sector imports of fertilizer and agrochemicals into the country, to The Planters’ Association of Ceylon (PA) has offered its support to the authorities in arriving at a long-term solution to the issue, amenable to all parties.

The association – which represents the Regional Plantation Companies (RPCs) involved in the commercial cultivation of tea, rubber and other plantation crops – urged collaboration between key stakeholders, to address the underlying reasons which led to the ban.

“We appreciate the Government’s decision and response to the requests of the country’s agriculture and plantation sectors and would also like to request for its implementation to be fast-tracked,” Planters’ Association Media Spokesperson, Dr. Roshan Rajadurai said. “While naturally, given how it impacts many livelihoods across the country, the subject created heated debate, this prudent decision now presents an important opportunity for collaboration between stakeholders.”

“As the country’s premier plantation industry representative, the Planters’ Association expresses its fullest commitment to working in partnership with the authorities, to identify feasible opportunities for organic agriculture adoption and to articulate a comprehensive roadmap to achieve this vision.”

As producers of predominantly export crops – which undergo stringent testing for chemical residue RPCs adhere closely to the recommendations of organisations such as the Tea and Rubber Research Institute (TRI and RRI) in the application of agri inputs. However, since this may not be the case for all crops cultivated in the country, particularly those aimed at the domestic market, it is important to formulate a mechanism in this regard, the PA points out.

Such collaboration will be a win-win for all stakeholders, the PA reiterates. It will minimize the use of agri-inputs an important milestone in the government’s vision in moving towards organic agriculture, ensure the health and wellbeing of the people and provide greater stability and direction to farmers and the private sector.

Air Astana, the flag carrier of Kazakhstan, which was convinced of the post pandemic Sri Lanka recovery will re-start its’ operations by launching direct flights to Bandaranaike International Airport (BIA) commencing from today (1). Flights will be operating thrice a week on Tuesday, Wednesday and Friday from Almaty International Airport to BIA.

Being a landlocked country it was primarily interested in introducing the popular Sri Lankan beaches to it’s’ customers. Lanka Sportreizen (LSR), the GSA for the airline and one of the leading DMCs in Sri Lanka has been in negotiation with the airline in their efforts to promote Sri Lanka over the years has been successful in convincing Air Astana to introduce Sri Lanka as their latest destination. Air Astana is a full-service international carrier.

The Government is expecting to boost the island’s foreign exchange reserves which had fallen to USD 1 billion dollars by October to 3.5 billion US dollars by the year end, Central Bank Governor Ajith Nivard Cabraal said.

Sri Lanka has lost forex reserves steadily from around August 2019 as inflation policy involving liquidity injections began despite having a pegged the exchange rate.

Sri Lanka’s gross foreign currency reserves have plummeted 70 percent to 2.3 billion dollars in the first 10 months of the year and efforts are under-way to boost it with swaps and other borrowings.

“It will include several other swaps as well and it will be at least 3.5 billion US dollars,” he said.

The Central Bank in its six-month policy framework announced on October first had estimated an inflow of 10.85 billion US dollars in the three months through December.

That inflows include 1 billion US dollar bilateral loans, 300 million US dollar multilateral loans, 300 million US dollar syndicated loans, 1 billion US dollars from swaps with other central banks, 4.3 billion US dollars from both merchandise and service exports and 1.8 billion US dollars from worker remittance.

Sri Lanka has 1.5 billion US dollar equivalent Remmibi swap with the People’s Bank of China, which is not drawn down.

“The Chinese one if we take it into our books by drawing the cash then it will be included, but otherwise it won’t. Right now we are taking the reserves without the Chinese loans,” he said. Governor Cabraal said the RMB is an international reserve currency which can be counted among reserves. He said Sri Lanka had some RMB assets already.

Sri Lanka’s 81 billion US dollar economy is facing heightened risk of sovereign debt default according to rating agencies which have downgraded the currency to CCC. Cabraal however said money to repay debt in 2022 has been earmarked and there will be no default. Foreign reserves of a pegged monetary regime go down as dollars are given in exchange for the newly printed money (convertibility) to prevent the exchange rate from falling.

Sri Lanka has found it more difficult to maintain monetary stability after call money rate targeting with excess liquidity began about five years ago, analysts have said, forcing the central bank and government to borrow abroad to repay loans or run-down existing reserves.

Give 2 Asia, an international non-profit based organization in San Francisco Bay Area working in 23 countries across the Asia Pacific last week partnered with HelpAge Sri Lanka to assist over 9400 less-privileged elderly citizens living in Covid affected vulnerable districts in the Southern Province by distributing them with Rs. 1.7 million worth essential medical items to use during this current pandemic situation period.

Accordingly, representatives from both organizations visited elders’ homes and individual elders in Colombo, Gampaha, Kalutara, Matara and Galle districts to make the distribution. Elders received medical items including hand-washing units, face masks, face shields, hand glows, sanitizers, hand washing liquid, soap, personal protection equipment and hygienic items.Elders were also instructed about the importance of having Covid vaccinations and the using hygienic medical items.

HelpAge, Executive Director Samantha Liyanawaduge confirmed that over 100,000 less-privileged elders island-wide were affected during this pandemic period and these medical items will be immensely helpful to beneficiaries to overcome the challenges faced by them. Give 2 Asia, Sri Lankan Country Advisor Sharadha de Saram expressed her gratitude for both HelpAge and Give 2 Asia for this philanthropic gesture.

HASL, Head of the Programmes Chaminda de Silva thanked the Divisional Secretaries and Elders Rights Promotion Officers in respective districts for the support extended by them to identify needy elders.

NKAR Travels & Tours (Pvt) Ltd hosted leading travel agents from Nepal recently in Colombo to promote Sri Lankan Leisure, Mice, Adventure and Pilgrimage travel to Nepal. The delegation was sponsored by the National Tourism Board of Nepal and the delegates were members of the Nepal Association of Tour & Travel Agents (NATAS).

Managing Director NKAR Nilmin Nanayakkara with an Nepal official

In the light of Sri Lankan Airlines operating 4 flights a week from Colombo to Kathmandu and back, the gala event served as a great opportunity to revive the travel industry once again and support SriLankan Airlines as well.

The delegation was hosted at the Ramada Hotel Colombo and business sessions between the Nepal delegates and outbound tour operators of Sri Lanka was followed by a gala dinner with the participation of the Nepal Tourism Board, Nepal Association of Tour & Travel Agents along with Sri Lankan Outbound Tour Operators, the Sri Lanka Tourism Board and SriLankan Airlines. All ground arrangements including tours and business sessions were handled by well-known NKAR Travels & Tours Pvt. Ltd.

Managing Director NKAR Nilmin Nanayakkara, said, NKAR is a fairly known brand image in Nepal. “Because of that they approached us and suggested that they want to bring in about 25 Nepali delegates who were interested in promoting Sri Lankan travel into Nepal.

He said over 45 Sri Lankan outbound operators participated in the business sessions and one to one meetings. “The Nepali delegates are DMCs from Nepal who have come to take business from here to Nepal,“ he said.

Nanayakkara said the delegation was very pleased with the successful manner the event was organized in a very short span of time and said all praise must go to his team led by Praveen Raj who endeavored to make the event a huge success.

He also said Shanthikumar and Ramada Hotel went out of the way to support the event. “This is the time that we have to inject more energy into the industry by having to bring counterparts from other countries and get them to move on.”

“Since Nepal is trying to take some business out from us into other areas we should take a delegation and try to bring some Nepali business here as well.” (MFJ)

Colombo bourse reached new record highs whilst recording a healthy turnover over Rs. 9 bn with local investor interest on selected counters yesterday.

Thus, the All Share Price Index increased by 171.9 points (+1.6%) to close at 11,197.7 whilst S&P SL20 Index also gained by 55.2 points (+1.5%) to close at 3,828.9. Expolanka Holdings, LOLC Finance, LOLC Holdings, Browns Investments and Commercial Leasing & Finance remained as the top positive contributors to the ASPI during the day. Further, broader market’s total turnover stood at Rs. 9,145.3 mn against the 12-month average daily turnover of Rs. 4,460.3 mn, whilst the volume traded for the day was 335,149.2k against the 12-month average daily volume of 227,668.1k. Capital Goods, Materials, Diversified Financials and Food and Beverage sectors mostly contributed to yesterday’s turnover.

The top turnover generators for yesterday were Browns Investments Rs. 1,766.9 mn (+3.9%), Expolanka Holdings Rs. 1,140.8 mn (+5.1%), Lanka Realty Investments Rs. 688.2 mn (+4.3%), Swisstek (Ceylon) Rs. 445.8 mn (+18.0%) and Royal Ceramics Rs. 432.1 mn (+7.4%). Foreigners recorded an outflow of Rs. 277.9 mn during the day. Foreign purchases stood at Rs. 114.7 mn which were approximately witnessed in John Keells Holdings, Browns Investment, Royal Ceramics, CW Mackie and Lanka Tiles whilst total foreign sales amounted to Rs. 392.5 mn, assumed to be seen Lanka Realty Investments, Hatton National Bank, Bogala Graphite, Hayleys Fabric and Sunshine Holdings.

Further, there was off-board transaction in Lanka Realty Investments (Rs. 37.5 mn) and Sampath Bank (Rs. 33.0 mn) yesterday.

Further, Browns Investments, Lanka Realty Investments, LOLC Finance, Swisstek (Ceylon) and Industrial Asphalts were amongst the most actively traded stocks yesterday.

Softlogic Stock Brokers

The Trincomalee area is embellished with military history from decades ago. This town in the Eastern Province has many chapters of history associated with the Royal Air Force and Royal Navy. The Royal Navy maintained naval installations in Trincomalee and the Royal Air Force (RAF) had established an aerodrome in China Bay, Trincomalee before the onset of war. After the fall of Singapore the Royal Navy's East Indies Station was moved to Colombo and then to Trincomalee. The fixed land defences consisted of four coastal batteries at Colombo and five at Trincomalee; these were established just before the war. Air defences were expanded starting in 1941 with the RAF occupying the civil airfield at Ratmalana with its station headquarters set up at Kandawala. Another airfield was rapidly built at Koggala and several temporary airstrips were built across vintage Ceylon.

Several Royal Air Force Squadrons were sent to Ceylon to augment the air power of the Allied Forces. Commonwealth units were also stationed in Ceylon for the duration of the war. I journeyed to China Bay to discover its hidden chapters from a bygone era when Ceylon was targeted by the Japanese. The large gates of SLAF China Bay open to welcome you into its massive premises. Today it is the head quarters of the Eastern Air Command of the Sri Lanka Air Force. It also houses the esteemed Air Force Academy. The present commandant is Air Commodore Bandu Edirisinghe. This base is also home to the No 1 Flying Training Wing, which is the cradle of all SLAF aviators. Its other formations include the No-3 Maritime Squadron, Ground Training Wing (GTW), Junior Command and Staff College (JC&SC).

Royal Air Force

As we delve into history, once it became clear that Germany was a threat, the Royal Air Force started on a large expansion, with many airfields being set up and the number of squadrons increased. From 42 squadrons with 800 aircraft in 1934, the Royal Air Force had reached 157 squadrons and 3,700 aircraft by 1939, in all allied theatres of combat. The RAF had three major combat commands based in the United Kingdom: RAF Fighter Command charged with defence of the UK, RAF Bomber Command (formed 1936) which operated the bombers against the enemy and the RAF Coastal Command which would protect Allied shipping and attack enemy shipping. Tactical air doctrine stated that the primary mission was to turn tactical superiority into complete air supremacy—to totally defeat the enemy air force and obtain control of its air space. This could be done directly through dogfights, raids on airfields and radar stations, by attacking aircraft factories and fuel supplies. The next priority mission was “close air support” to ground units on the battlefront which consisted of bombing targets identified by ground forces, and strafing exposed enemy infantry.

The airfield and air station at China Bay has a mesmerizing history. According to old records the airfield was opened in August 1939 with the 273 Squadron. The early air fleet included Fulmars and Wildebeest aircraft. The air squadron was initially placed here for the protection of the naval fleet and the large oil storage tanks. By March 1942 the 261 Squadron also flew into China Bay with 8 Hurricanes (MK1) and 23 Hurricanes (MK2). Later Hurricanes, Spitfires and Catalina boat planes joined the RAF fleet at China Bay. The allied forces were aware of the impending aerial threat from the Japanese long range bombers. On April 1942 the defiant Japanese aircraft flew over Ceylon unleashing their bombs on Colombo and Trincomalee. The air field at China Bay was bombarded and some aircraft destroyed. British anti-aircraft gun crews fired back at the invading Japanese. One of the enemy pilots initiated a Kamikaze run and rammed his plane into one of the large oil storage tanks, causing a raging inferno.

Amidst the sunshine we walked towards the runway and control tower. It was exciting to view this runway from where British aircraft once took off to counter enemy attacks. By June 30, 1943 work was begun to extend the airfield at China Bay with a large workforce of 1,400 workers from Cochin, India. In January 1944 the RNAS took over the operation of China Bay and renamed the venue as HMS Bambara (meaning hornet in Sinhalese). By March 1944 the runway extension was successfully completed. The Royal Air Force now had the capacity to safely store 43,560 gallons of fuel for their needs. An American B-25 aircraft landed at China Bay to test the new runway.

In the year 1944, during World War II, the British used the runway at China Bay to re-capture Malaya. A large fleet of B-29 bombers flew into China Bay. On completion of the mission they returned to China Bay on their onward journey to Britain.

Subsequently the RAF handed over China Bay to the Royal Navy on November 14, 1944. The control of China Bay airfield was taken over by the Royal Ceylon Air Force in November 1957 as part of the agreement reached between Britain and Ceylon. In 1972, with Sri Lanka becoming a republic, Royal Ceylon Air Force Base China Bay was renamed as Sri Lanka Air Force Base China Bay.

Career advancement

On March 6, 1976, Flying Training Wing and the Ground Training Wing were established within the Sri Lanka Air Force Base China Bay, and it was renamed as the Air Force Academy in 1976. At present this institution can accommodate almost 1,800 personnel who come here for advanced career development courses. Cadet Officers already under basic training from the Combat Training School (CTS) Diyatalawa come for additional training to the China Bay Academy. Senior airmen also attend courses here on leadership for career advancement. Commissioned officers in the rank of Flight Lieutenant and Squadron Leader attend the Junior Command and Staff College. The Junior Command and Staff College of Sri Lanka Air Force is affiliated to the University of Kelaniya.

This course augments their management skills to lead the men and women under their command. This academy also trains the Air Traffic Controllers of the Sri Lanka Air Force. Members of the Air Force Police (AFP) visit China Bay for their basic and advance training phases. In order to enhance the learning experience the academy has its own library and IT rooms. There is a firing range for advanced marksmanship training. Other facilities include a modern gym, squash court and basketball court. The sprawling garden laced with trees creates a green environment conducive for studying. Life on this academy is a refreshing experience for all the officers and other ranks. The present Air Force Commander Air Marshal Sudarshana Pathirana has also served the academy as a commandant. Sri Lanka Air Force Base located at China Bay sustains its beautiful legacy from the vintage era of the Royal Air Force.

Measures to attract foreign IT professionals for the development of the local IT industry may not be apolitically popular decision in Sri Lanka, according to a recent industry related policy document.“Firstly, it is necessary to develop the HR capacity locally. Secondly, if local capacity is not adequate, Sri Lanka may have to attract foreign IT professionals.

A key source may be India. This may not be a politically popular decision in Sri Lanka. However, it is essential for the development of the local IT industry, according to a recent policy document titled, ‘Digital Economy of Sri Lanka National Goals and Lessons from the South’ which was launched at a virtual event by The Information and Communication Technology Agency (ICTA) of Sri Lanka in collaboration with UNCTAD (United Nations Conference on Trade and Development). The report highlights the need to expand R&D capacity which plays perhaps the most important role in capturing the market with innovations. All international firms so far successful in the innovation game are masters in R&D. This requires close coordination between the universities, state or non-state, and industry. “Not that Sri Lanka lacks it today,but it certainly needs to be strengthened to a level that almost all pass-outs are immediately absorbed by the industry with no further orientation or training.

For this, both institutions and industries must clearly understand each other’s needs.”As per the policy document, the other important factor is country readiness. While some approaches could betaken immediately backing on the developments so far happened, others have to wait. “For example, Sri Lanka may not be immediately prepared for supplying AI products or Autonomous Electrical Vehicles to the global market. That may require environmental readiness. On the other hand, for E-Commerce or Education Technology, or maybe even for Fintech, there exist a mature market.It is essential that the successful international approaches are correctly identified and integrated into the Digital Economy Strategy of Sri Lanka for achieving the stipulated targets.”

Sri Lanka’s state-run BCC Lanka Ltd has been allowed to import desiccated coconut after paying 1 rupee special commodity levy from November 24, 2021 in a further addition to existing trade controls.

Finance Minister Basil Rajapaksa has imposed a 300 rupee import tax per kilogram on desiccated coconut, HS Code 08.01 in the form of the special commodity levy for six months, starting from November 24. However from state-run BCC Lanka Ltd only 1 rupee per kilogram tax will be collected and the balance 299 will be waived. BCC Lanka is the second state owned enterprise to get an import monopoly in recent weeks.

Sri Lanka previously waived a 65 rupee per kilogram tax on imported rice for State Trading Corporation and allowed it to pay only 25 cents per kilogram, creating another import monopoly. The Government has been operating a trade control regime for many years partly due to economic nationalism, partly due to lack of knowledge of international trade, and partly to ‘save foreign exchange’.

If the trend continues from December to April during the current winter season, the tourism industry is predicting that 400,000 tourist swill arrive in the country from November 21 to April 22 and it is estimated to generate USD 6 billion.

“With flexible and easier health protocols that were implemented by the government it was possibleto attract tourist during the last three months an there is a positive trend with the arrivals to Sri Lanka increasing month on month,” The Sri Lanka Association of Inbound Tour Operators (SLAITO) and Tourist Hotel Association of Sri Lanka (THASL) said.

A number of airlines such as Air France, Air Astana,Aeroflot, Go Air and Edelweiss will introduce flights during the current winter season. In addition, many other airlines including the national carrier SriLankan Airlines will gradually increase the frequency and the network.

“The tour operators have recommenced their programs to Sri Lanka mainly due to the practical health protocols which were introduced by the government.” “Hence at this stage it is vital to continue with the current health protocols which will encourage the tour operators and the airlines to promote the destination with confidence.’’ “We are of the opinion that the current health protocols should continue without any change. The service providers in the tourism industry registered with the Sri Lanka Tourism Development Authority have to adhere to stringent health protocols imposed by the health authorities and they have to obtain the certificate issued by KPMG/ SLTDA, at all times it is necessary to conform to the health guidelines and protocols of the Ministry of Health.”It is to ensure the safety of the service providers, the citizens and the travelers who visit Sri Lanka.

Any change to the current health protocols will be detrimental to the tourism industry and it will have a negative impact on the overall economy of the country. “Hence SLAITO and THASL request the government to maintain the current status quo pertaining to the health protocols that applies to the foreign passport holders visiting Sri Lanka.”

A discussion was held with Governor of the Central Bank Ajith Nivard Cabraal and the Colombo Business Association (CBA) delegation recently.

Many topics were discussed such as how to work amid the challenges of the global epidemic, working under the new generalization to obtain the working capital required for local businesses, how to provide bank relief to entrepreneurs who are already black-listed, to focus on their previous business dealings, and the working capital required to carry on small and medium enterprises and to develop a new methodology to enable relatives or friends abroad to send in working capital as well as exporting local products to Sri Lankans living abroad, digitalizing local businesses etc.

The Governor appreciated the effort being made by the Colombo Business Association to send to the foreign market quality goods of proper standards of small and medium scale businessmen and to digitalize local businesses.

He said that the assistance of the Regional Development Department of the Central Bank of Sri Lanka will be provided to help make this programme a success.

Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal, President of the Colombo Business Association Ariyaseela Wickramanayake, General Secretary Chaminda Vidanagamage, National Organizer M. S. A. Muneer and M. Nassar participated in this discussion.

Generating a record-breaking profit for three quarters in a straight NSB records sensational performance beating all the odds during a pandemic. Its highest ever profit for a period of nine months with a Profit Before Tax (PBT)of Rs. 20.3 billion and a Profit After Tax (PAT) of Rs.15.6 billion, National Savings Bank (NSB) shows its COVID resistance, strength and continuous financial resilience.

Against the backdrop of COVID-19 impact on the economic activities, the PBT for the first nine months of 2021 was Rs. 20.3billion, which marks an increase of 170.6% from Rs. 7.5billion recorded in the same period last year, while the PAT was Rs. 15.6 billion, with an increase of 258.6%from Rs. 4.4 billion in 2020.

Gross Income of the Bank grew by 5.8% to Rs. 99.2 billion during the nine months of the year from Rs. 93.7Bn recorded in the corresponding period, last year. During the period under review, the interest income has increased by 6.8% to reach Rs. 96.9 billion, while the interest expense has decreased by 15.7% to Rs. 56.7 billion 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 nine months.

The increase in interest income together with the considerable reduction in interest expenses supported Net Interest Income (NII)to surge by 71.6% to Rs.40.1 billion against Rs.23.4 billion stood during the same period last year.

Net Fee and commission income grew by 46.1% to Rs.2 billion from Rs.1.4 billion 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 60.6% to Rs. 42.3 billion as at the end of 30th September 2021. Operating expenses during the period of nine months of 2021, rose by21.9% to Rs.14.6 billion 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.

Impairment charges during the period under review decreased to Rs. 2.8 Bn by 38.3% compared to the same period in the last year. However, the gross NPL ratio increased to 3.51% mainly owing to the reclassification of some loans and advances under debt and other instruments.

The Bank generated a Return on Equity (RoE) of 34.86% and Return on Assets (RoA) of 1.86% at the end of September 2021.

The total asset base of the Bank grew at 13.6% to reach Rs. 1.55 trillion 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 12.7% to Rs. 1.39 Tn compared to the deposit base reported at the end of December 2020. During the nine months ending 30th September 2021, the Bank has mobilized Rs.158.2 Bn and continued the momentum of mobilizing low-cost funds during the period under review by mobilizing Rs.44.2 Bn.

Sri Lanka has reached out to India to boost its sagging economy with Finance Minister Basil Rajapaksa undertaking a visit to India in near future.

The Lankan Finance Minister’s visit is meant to not only secure loans but also seek wider cooperation on a range of other matters, including investment, trade and tourism. Rajapaksa is scheduled to meet PM Narendra Modi, Foreign Minister S Jaishankar and Foreign Secretary Harsh Vardhan Shringla besides a slew of other officials.

India recently bailed out Lanka with fertilisers for the island’s farmers after Chinese made fertilisers had to be rejected on grounds of quality. The Lankan government has strongly argued against repeated calls led by the main Opposition Samagi Jana Balavegaya (SJB) for seeking the assistance of the International Monetary Fund (IMF). Lankan officials have claimed that external factors including Covid contributed to the current state of the economy. It is hoping that its special ties with India will help to overcome the crisis. The Indian High Commission in Colombo has repeatedly stated that Sri Lanka would receive priority in line with India’s ‘neighbourhood first policy’.

Basil Rajapaksa presented the country’s budget earlier this month and declared that the government was confident that the country would not default on its debts and would work to improve its foreign exchange reserves. “Sri Lanka has never defaulted in its history and that record will be maintained,” Rajapaksa claimed.

Lanka’s oil bill has jumped 41.5 % to $2 billion in the first seven months of this year, compared to last year. The country is facing a foreign exchange crisis after the pandemic hit the nation’s earnings from tourism and remittances. The tourism industry, which represents over 10% of the country’s Gross Domestic Product and brings in foreign exchange, has been hit hard by the coronavirus pandemic. India has traditionally been among Sri Lanka’s largest trade partners and Sri Lanka remains among the largest trade partners of India in the SAARC. In 2020, India was Sri Lanka’s 2nd largest trading partner with the bilateral merchandise trade amounting to about $ 3.6 billion.

India is also one of the largest contributors to Foreign Direct Investment in Sri Lanka. A number of leading companies from India have invested and established their presence in Sri Lanka. FDI from India amounted to about US$ 1.7 billion during the period 2005 to 2019. The main investments from India are in the areas of petroleum retail, tourism & hotel, manufacturing, real estate, telecommunication, banking and financial services.

www.indiatimes.com

Sri Lanka had over 3,000 operating graphite mines and was the world’s number one graphite producer and exporter but after World War 2 many were shut down and only two were operating. (Kahatagaha and bogala)

If 50 mines could be activated and operational, Sri Lanka can earner over USD 10 billion revenue with highest value additions (Graphene, Conductive Graphite, Graphite Nanotubes, super Lubricants etc.) making it the biggest export earner of the country, said owner of graphite mines in Ragedara, ,Chairman, Sakura Graphite Kurunegala, Keerthi Wickramaratne.

He is by profession an engineer with master’s degrees in Energy Engineering & Process Engineering. Wickramaratne said that he saw the potential of this mineral two decades ago and they were not taken seriously. “I even had to face very unpleasant incidents and severe pressure when I was the Chairman of the SLSEA and was forced to resign because I made a presentation on these subjects to the “Viyathmaga” presentation for Gotabaya Rajapaksa before the last Presidential election.

Keerthi Wickramaratne

“I witnessed the potential of graphite and quartz and how Sri Lanka’s export sector could get a major boost from it and restarted the Ragedara Mine in Melsiripura, with a German partner which had been shut down for 3 decades. The Graphite from Ragedara was tested as the purest vein graphite in the world. (Analytical Reports of Superior Graphite and SGS). “We were granted an A grade mining licence In April, 2012.

“After mastering the industry, Sakura Graphite introduced value addition and started exporting ‘micronized powder’ and developed Best Graphene in the world market by 2016. We were able to produce the highest grade Conductive Graphite a few years ago. “

Wickramaratne who is also the Managing Director of Blue Bay Mineral International Private Limited, said that Sri Lanka earns less than US$ 50 million annually from the export of graphite and quartz which could be 100 times more in two years with appropriate value addition. “By reactivating 50 more mines this can go up to USD 10 billion mark in few years with appropriate value additions.”

Vein graphite found in Sri Lanka contains the highest “degree of crystalline” perfection of all conventional graphite material. He said that one of the unique features of reactivating Graphite mines is that huge investment is not needed for it.

“These deposits would remain and could be extracted for over 200 years and the government must seriously look at calling for an international JV for value addition to make nano material and EV and other kinds of batteries and energy storage devices.

This material is now dubbed as ‘Black Gold’. He said that these two raw materials are used towards the manufacturing of carbon pencils, brushes to computer chips, medical and war equipment, solar batteries to space gear and the list goes on and it also helps to reduce the global warming. Wickramaratne the former Chairman of the Sri Lanka Sustainable Energy Authority (SLSEA) said that in addition almost all the raw materials for making solar panels could also be manufactured and exported by activating these mines and extracting silica quartz. He also added general public and the professionals of the county must help to achieve this target for the sake of the future generations of the motherland.

The Access Group consists of some of the country’s pioneering and innovative companies that have contributed to Sri Lanka’s corporate landscape.

Access Projects is among them – they commenced their own unique journey into creating iconic Buildings with their flagship Access Towers 25 years ago. At the time, it was a unique building with its own footprint. Heading the Access Projects is Managing Director Dilshan Ferdinando who has been associated with creating architecturally exceptional innovative spaces that have gone on to be some of the finest buildings in Sri Lanka.

The company made their mark in the field of construction in the leisure industry – from the interior fit out of the Cinnamon Lakeside Hotel, to the lobby refurbishment and improvements of Chaya Blue in Trincomalee and Chaya Tranz in Hikkaduwa. Another unique project was The Water’s Edge Golf Club, Club House and the banquet hall, undertaken personally by Dilshan himself to transform a marshy land into Colombo’s second Golf Course. This was a sustainable venture that was spread over 160 acres with an engineered set of water ways, lakes and canals. It involved removing perimeter urban waste and dredging 50 acres and using that material to create the golf playing fields. It still stands today with every tree retained and functional as a banquet facility.

“ This was at the time when the war had ended and the hospitality industry was taking off. “ recalls Dilshan, “ We went on to do several banquet halls for city hotels as well as the renovations of the villas of Club Dolphin at Waikkal, yet another iconic hotel.”

The interiors of Waters Edge Golf & Country Club including the banquet hall was designed and built by Access Projects initially. Yet another unique venture undertaken by Access Projects was the construction of Cape Weligama, a 50 key ultra-luxury resort for The Dilmah Group. “The project involved creating one of a kind, iconic villas with 13 swimming pools – the moon shaped pool was the largest infinity pool in Sri Lanka at the time, in 2014. The projects sought to use timber and locally sourced material for sustainability. It came with specific attention to detail, creating spaces that were all its own,” he adds.

When the iconic Galle Face Hotel sought restoration and renovation to meet the design elements of the Fifties, they chose Access Projects to handle the construction. Dilshan recalls carrying out extensive research with old photographs, paying attention to details and highlights that brought out the old world look and feel. A new ballroom was added to blend in with the existing architectural design of the old one, while all systems were renovated and updated.

Access Projects has also undertaken several iconic projects such as the Anantara Resort , a 250 key luxury hotel for the Hemas Group along with staff quarters and the banquet hall. Access Projects was tasked with the construction of a modern 18 storeyed building for the Academy of Design – it came with specific design requirements – ‘ we made sure every one of those requirements were met – within budget and the time frame given.” he says.

Accredited with ISO 9001 – 2008 and ISO 14001 – 2004, and accredited to CIDA (Construction Industry Development Authority) , Access Projects specializes in midscale specialist construction projects that call for attention to detail and meeting exacting architect and customer needs.

The Government will go ahead with a Fuel Price Stabilization Fund and though the benefits won’t be immediate. The fund shall decide fuel prices going forward and not government ministers, Energy Minister Udaya Gammanpila said.

“What such a fund does is keep fuel prices as stable as possible irrespective of global price fluctuations,” Gammanpila said.

“We decided to establish this fund after thoroughly studying similar funds elsewhere.

“Going forward, the fuel price shall be decided by the fuel price stabilization fund and not by ministers,” he said.

The Minister said the cabinet took over eight months to approve his proposal in March this year to set up the fund.

“On March 15 2021, my cabinet proposal to set up a fund was approved on November 23. It took over eight months, during which crude oil prices in the world market went up by 36 percent. So we are unable to provide instant benefits to the public the moment the fund is set up,” he said.

Speaking in parliament on Tuesday (23), Gammanpila called for a fuel pricing formula in the event a stabilization fund did not materialize. A few days prior, the Central Bank had also called for a formula.

The Government, while in opposition between 2015 and 2019 severely criticized a fuel pricing formula adopted by the then administration and promised to fix prices.

In June this year, Gammanpila said the stabilization fund, a key strategy of the current administration which rejected market pricing of fuel while in opposition, was “not there”.

The Finance Ministry reports showed that the fund was set up in 2020 but contributions stopped as prices started to pick up and a tax surcharge on fuel was removed. Sri Lanka fuel price stabilization account was Rs. 26 billion in the red Official data also showed that the underlying account of the fund was in fact Rs. 26 billion rupees negative by end 2020.

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CEB: ‘highest scorer’ in CPC debt - Gammanpila

Ravi Ladduwahetty

The Ceylon Electricity Board (CEB) is the highest creditor of the Ceylon Petroleum Corporation ( CPC) and they owe the CPC, an astronomical Rs. 98 Billion, Energy Minister Udaya Gammanpila told the Daily News yesterday.

He also said that in the line of credit, the National Carrier- SriLankan Airlines owes the CPC the second highest debt of Rs. 58 Billion.

It is not surprising that the CPC in such a bad position due to it subsidizing these institutions where we sell kerosene at Rs. 77 per litre when the production cost is Rs. 110 per litre; Furnace Oil is also sold at Rs. 40 per litre while the cost is Rs. 70 per litre. It is also similar for the sale of aviation fuel for the National Carrier as well, he said.

“It is high time that that the Treasury provides us with a subsidy which could provide an improvement to the CPC cash flows”, the Minister remarked.

The 24th Presidential Export Awards (PEA) initiated by the Export Development Board since 1981 concluded last Friday at BMICH with Preisdnet gotabaya Rajapaksa sa the Chief Guest.

This year, 63 outstanding export companies of Sri Lanka received the awards for the financial years 2019/20 and 2020/21. The award winners were selected by a panel of judges chaired by a retired Supreme Court judge. This is the highest and most exclusive award an exporter can receive in Sri Lanka and the Presidential Awards are given to exporters who have made the highest contribution to the development of the export sector.

The President appreciated the commitment and the courage of exporters that they had to remain in the export sector in the face of COVID-19 epidemic. The President said that issues faced by the export sector will be solved soon. “The public and private sector should join together to achieve export targets”, he said.

Trade Minister Bandula Gunawardana said that steps will be taken to promote the export sector under a clear export development plan from next year.

The Minister pointed out that the role played by those engaged in the export sector in the midst of many challenges during the global economic crisis has helped to protect the country’s economy and added that he would like to pay tribute to all exporters.

In an endeavor of promoting Sri Lanka’s traditional handicraft items, produced by local craftsmen to international markets, the Sri Lanka Handicrafts Board –Laksala yesterday send the first consignment of handicraft items including handloom products, batik costumes, gem and jewellery products, Ceylon tea,coffee, local ayurvedic products, organic and Cosmetic products to Florida Market in the USA under the supervision of Batik, Handloom and Local Apparel Productions, State Minister Dayasiri Jayasekera

According to the agreement signed by Laksala and its USA business partner Nelu all products available in the franchise showroom are sold under the world renowned LAKSALA’ brand which has been highly recognized among foreign tourists visiting the country. Laksala which was established in 1964 during the tenure of former Prime Minister Sirimavo Bandaranaike has been recognized as the country’s oldest State owned gifts and; souvenir shop. Currently Laksala has a 12- Showroom island-wide network, coordinated under the guidance of State Ministry Batik, Handloom and Local Apparel Productions.

State Minister Jayasekara thanked the support extended by the USA business partner Nelu and said the Laksala opened such franchise outlets in Dubai and Japan and also expected to open more overseas outlets in the future.

He said both Sri Lanka and the USA maintain a business relationship for a long period and the main objective of this new venture is to popularize Sri Lankan handicrafts in the USA since it will help Sri Lankan economy and also Lankan craftsmen.

Chairman, Laksa Lakmal Wickramaarachchi also attended.

Sri Lanka’s biggest inefficiency is the distinction between formal and informal sector, World Bank Chief Economist for South Asia Hans Timmer said.

Noting that it’s not only imperative to focus on big companies in the formal sector that in the past responsible for growth Timmer said, ”it is important to focus on informal sector, quite large in size in Sri Lanka to unleash the new potential that it has.Because if you don’t unleash that potential in particular by giving access to credit in the informal sector thereby creating opportunities to boost productivity,Sri Lanka will not achieve its expected growth targets.”

According to him, Sri Lanka is only using a small part of its potential. And workers or firms in particular in the formal sector are very much protected. As a result of that there are many outsiders.Addressing a seminar held virtually and organized by Centre for Banking Studies –Central Bank of Sri Lanka under the theme, ‘Impact of the Pandemic on South Asian Economies and How Digitization and Services Led Growth Can Help Sri Lanka to Beyond’, he said services not only produce jobs but increasingly produce export growth. With digital technologies or platforms services are actually tradable such as in healthcare and education.

“Services are directly tradable themselves and service sector moreover plays a much more significant role within other sectors in the export industry. It is important to have right competition policies in place as a result everybody will have access to these platforms at the same time.

Sanjeewa Kasthuriratne, Head of Business and Danushka Walpola, Deputy General Manager, Ideal First Choice, Nalin  Welgama, Founder and chairman, Ideal group, Chaminda Wanigaratne, Director, Ideal Motors, Ideal First Choice, Gagan Mathur, Head - Business Development-Cluster Markets, Gulf Lubricants India and Vipin Ohri, Deputy General Manager, Lanka Ashok Leyland.

Sri Lankan vehicle population is one of the highest in the region averaging more than one vehicle for a family while in India its around one vehicle for 10 families said Director Ideal First Choice and Ideal Motors, Chaminda Wanigaratne, “Also the vehicle import ban also has many advantages.”

He said that the Sri Lankan vehicle population is around 8.5 million (50% three and two wheelers) and there are around 6.5 million families which makes an average of more than one vehicle for a family. He also disclosed that there are around 85,000 vehicles owned by the public sector and surprisingly around 50% of them are underutilized. “Due to the import ban we now observe that most of the government institutions are now taking steps to utilize these vehicles and we observe them ‘brought to garages’ for repairs.

In addition, the public too is now keen to repair their unused vehicles and this is resulting in a spare part boom which in turn resulted in many Indian automobile component manufacturing companies moving into Sri Lanka.”

He said that the vehicle import ban has also created an increased demand for their local assembled Mahindra vehicles.

Ideal Group holds the co-ownership of Sri Lanka’s first automotive manufacturing plant in Welipenna, which is a product of the joint venture between Ideal Group and India’s automotive giant, Mahindra and Mahindra.

He also said that Gulf Oil, a part of the Hinduja Group, one of the largest diversified groups in the world, has appointed Ideal First Choice as Sri Lanka’s national distributor.

“In 2008, the government in order to introduce lubricants to the local market, liberalized the market place giving opportunities to the private sector to introduce various lubricant brands to Sri Lanka.

Subsequently in 2010, the automotive industry was re energized and the availability of hybrid vehicles in the market also attracted a large number of customers.

Due to this, the demand for lubricants increased and accordingly we have introduced Gulf Oil which can provide high quality performance to customers.”

Founder and Chairman, Ideal group, Nalin Welgama, said world leaders were keen to promote Electric vehicles and this was a hot topic at the UN Climate Summit Glasgow 2021. “while former US President Trump was not too keen on promoting electric vehicles (EV) , current President Joe Bidden is a keen promoter of this concept and climate change. “Sri Lanka too will move EV towards soon.”

APAC, Gulf Oil and MD & CEO, Gulf Oil Lubricants India Ltd Ravi Chawla, President. said, “The country consumes about 64,000 kilo liters of lubricants annually. 68% of this is used for automobiles and the remainder for industrial lubricants and greases. We aim to provide consumers with high quality lubricants for the automotive and industrial sectors. I am sure this partnership will grow to benefit the industry.”

Head - Business Development-Cluster Markets, Gulf Oil Lubricants India Ltd, Gagan Mathur, commented on the new collaboration, “The Company is extremely glad that we are able to introduce Gulf Oil Lubricants to the Sri Lankan market by partnering with Ideal Group. With the support of Ideal Group we will provide a bona fide choice that will allow consumers to edge ahead with high performance oriented products.”

Amagi Group of Hotels will invest over Rs. 1.9 billion in the next two years in three new hotel projects in Negombo, Marawila and in Katunayake.

Chief Executive Officer, Amagi Group of Hotels, Jude Silva Pulle said that they will invest USD 35 million to build what would be one of the biggest hotel projects in Tangalle in partnership with a Maldivian hotel chain. When completed, it will provide over 400 direct employment opportunities.

The second project would be a 200 room Airport hotel in Katunayake targeting the airport traffic. “This would be a Rs. 400 million investment.”

In addition, the management is also planning to build a separate hotel with water villas in Marawila which would be another Rs. 300 million project. Land for all these projects have already been secured.

. “We have invested nearly Rs. 70 million during the lockdown to upgrade Amagi Aria Negombo; these upgrades offer 40 new employment opportunities for the youth.

Chairman of Amagi Group, Somanathan Ganeshanathan said earlier the proposed project in Tangalle Ozen Oblu would be a 173 room five-star luxury hotel project. It will have individual cabanas and rooms and would be one of its kind in the region.” A chef by profession and a leading sea food exporter, Ganeshanathan has years of work experience with Six Senses in the Maldives. “I always had a dream to create my own hospitality project and I am proud that I reached the milestone. Like many business owners, I wasn’t born to be an entrepreneur, I had a passion for running a business, and I most assuredly had no experience in successfully growing one but I was able to achieve it. I have learned a few things that have helped keep the bumps and bruises to a minimum while maintaining double-digit growth year over year.”

“Technology is changing the world we live in every day. In order to stay relevant, it is important to innovate, regardless of your industry, as well as want to get better. This could mean new programs, new thinking or new processes.’

The management also owns and operates Amagi 27 room resort hotel Amagi Beach in Marawila. (SS)

The Bourse ended the week on a positive note this week with ASPI increasing by 538.96 points (or 5.06%) to close at 11,197.68 points, while the S&P SL20 Index also increased by 148.03 points (or 4.03%) to close at 3,822.61 points.

Browns Investments was the highest contributor to the week’s turnover value, contributing LKR 6.24Bn or 15.82% of total turnover value. LOLC Finance followed suit, accounting for 10.11% of turnover (value of LKR 3.99Bn) while Expolanka contributed LKR 3.47Bn to account for 8.80% of the week’s turnover.

Total turnover value amounted to LKR 39.46 Bn (cf. last week’s value of LKR 36.83 Bn), while the daily average turnover value amounted to LKR 7.89 Bn (-14.30% W-oW) compared to last week’s average of LKR 9.21 Bn. Market capitalization meanwhile, increased by 5.06% W-o-W (or LKR 240.57 Bn) to LKR 4,997.35 Bn cf. LKR 4,756.78 Bn last week.

Liquidity (Value & Volume)

Food Beverage & Tobacco Industry Group was the highest contributor to the week’s total turnover value, accounting for 28.12% (or LKR 11.09Bn) of market turnover. Industry Group’s turnover was driven primarily by Browns Investments, Sunshine Holding and Agalawatte which accounted for 79.10% of the sector’s total turnover.

Capital Goods Industry Group meanwhile accounted for 19.28% of the total turnover value while Diversified Financials Industry Group contributed 18.87% to the weekly turnover.

The Food Beverage & Tobacco Industry Group dominated the market in terms of share volume, accounting for 43.34% (or 672.34 Mn shares) of total volume, with a value contribution of LKR 11.09Bn. The Diversified Financials Industry Group followed suit, adding 18.41% to total volume (285.56 Mn shares) while Materials Industry Group contributed 11.45% (177.70 Mn shares) to the weekly share volume.

Net Foreign Position

Foreign investors were net sellers this week with a total net outflow amounting to LKR 1.53 Bn relative to last week’s total net outflow of LKR 1.44 Bn (-6.1% W-o-W). Total foreign purchases decreased by 32.4% W-o-W to LKR 0.38Bn from last week’s value of LKR 0.56Bn, while total foreign salesamounted to LKR 1.91Bn relative to LKR 2.00Bn recorded last week (-4.8% W-o-W).

Richard Pieris Finance Ltd, a fully owned subsidiary of the renowned Richard Pieris Group, and the sole financing arm under the renowned Arpico brand, recently revealed its plans to drive its network expansion in line with its digital journey.

The company’s digital journey was propelled following its inclusion as a member of the exclusive CEFT club, where only 26 banks and 14 finance companies have been authorised.

“We have shown a strong performance and increased growth trajectory in our financials, and made a profit-before-taxes of LKR 200 million, for the first half of the financial year 2021/22. With our branch expansion plan, we aim to open up three more branches around the country. We currently operate with 15 fully-fledged branches, and we see much more potential for more locations,” commented Richard Pieris Finance CEO Lohika Fonseka.

He further stated that the company’s plans have been strategically aligned with its main objective of amplifying customer convenience, and its current offerings which include Fixed Deposits and Savings, Leasing, Islamic Finance and Business Loans to name a few. Richard Pieris Finance will be implementing gold loan facilities through a new Pawning service, which will be followed by a wider array of customer-centric products and services throughout the company’s digital journey, according to Fonseka.

The company boasts of a deposit base worth LKR nine billion, and an asset base worth LKR 17 billion. Fitch Ratings Lanka has also revised the ratings of RPF’s National Long-Term Rating from A-(lka) to AA-(lka) with a stable outlook, but this was mainly due to the recalibration of the corporate parent’s National Rating.

Headed by a seasoned group of experts, Richard Pieris Finance’s Board of Directors comprise of former C-suite professionals from the finance industry, as well as veteran bankers and legal professionals.

Richard Pieris Group is a diversified business conglomerate with a rich history of 90 years. 

CIPM Sri Lanka announced an exciting and engaging high value programme for the World HR Congress 2021 to be held in virtual mode from 6 to 8 December 2021 over 2+ days, more than 10 parallel sessions and over 100 local and international exhibitors exhibiting their products and solutions at the HR Exhibition which runs parallel to the Congress sessions.

The theme of the Congress “Exalting People Professionals Amidst a Planetary Pandemic: Explore, Expand and Excel” aims to emphasize and deliberate the exciting and crucial role that HR plays from strategic and operational perspectives helping to mitigate business risks and challenges while benefiting from the myriad of opportunities in a new world of work and life.

World HR Congress 2021 opens with the inauguration speech delivered by Rich Lesser – World President, BCG-CPA on the 6th of December which will be followed by the keynote address by Prof TV Rao – Chairman of TV Rao Learning Systems, India.

The Day 2 programme at the Congress on 7th December will start with the 1st Plenary Session on “Strategic HR Response for the Current Pandemic” delivered by John Taylor-President and CEO of SHRM followed by the Panel Discussion on Disruption titled “COVID 19 Disruption and the Role of People Professionals” moderated by Dr Samitha Perera-Director/CEO, CBL Foods International with 4 CEO-level panelists representing blue chip Sri Lankan companies. Next on the programme is the 1st Round of Concurrent Sessions conducted by 10 internationally acclaimed speakers and presenters which will be followed by the 2nd Plenary Session on “Emerging World of Work in Post COVID19” by Peter Cheese, Chief Executive of CIPD, UK.

The 2nd Panel Discussion on “Digitalization and People Professionals” with a panel consisting of CEO-Level panelists moderated by Dr. Neil Bogahalande-Council Member, CIPM Sri Lanka will be followed by the second Round of Concurrent sessions conducted by 10 high profile professionals and business leaders representing foreign institutions and companies.

Day 3 on 8th December will open with the 3rd Plenary Session on “New Vistas of Human Possibilities Management” delivered by Drew Fernandez-Global Chief Officer, Coca-Cola Bottling Investments Group which will be followed by the Panel Discussion moderated by Janaka Kumarasinghe-Past President of CIPM and Director-Kent Ridge (Pvt) Ltd on Diversity titled “Diversity and inclusion in the context of Strategic HRM practices” with 4 panelists representing the National HR Institutes of Fiji, New Zealand, Papua New Guinea and Pakistan.

The third Round of Concurrent Sessions with 10 international speakers in the afternoon will be followed by the 4th Plenary Session jointly presented by Paul Mills-Chief People Officer of Mercedes AMG Petronas F1 and Farehana Hanapiah-Senior Vice President, Group Human Resource Management of Petronas on “Leadership, teamwork and culture for high performance”.

CBSL Governor, Ajith Nivard Cabraal (fourth from right) with HNB MD/CEO, Jonathan Alles (fifth from left), CBSL Assistant Governor, Dharmasiri Kumarathunga (fourth from left) and HNB DGM- Retail and SME Banking, Sanjay Wijemanne (third from left) with the winners    

Underpinning the power of remittances to drive development and in support of Central Bank of Sri Lanka’s (CBSL) efforts to optimize inward remittances to Sri Lanka, leading private sector bank HNB PLC, recognized and rewarded their top achieving customers, at a special ceremony at their premises.

The event featured CBSL Governor, Ajith Nivard Cabraal as Chief Guest, and CBSL Assistant Governor, Dharmasiri Kumarathunga, who together with HNB MD/CEO, Jonathan Alles and senior officers, handed cash prizes of LKR 100,000 to the awardees.

CBSL Governor, Ajith Nivard Cabraal said “We express our gratitude to every Sri Lankan working overseas who is able to send a portion of their hard-earned earnings back home. Remittances are not only a benefit for those who send and receive money, but also an immensely valuable benefit for our nation. In acknowledging these factors, we understood that it is important to offer as many privileges as we can for those who use official channels for their remittances.

These will include immediate measures from the CBSL such as offering Rs. 2 on every US dollar remitted, as well as additional tax benefits. Similarly, if they were to use these funds to start a business, additional concessions will also be provided. Every Sri Lankan who works overseas should be treated as a VIP. We are grateful for their service, and we hope that they will make maximum use of this opportunity.”

Among other initiatives aimed at increasing remittance inflows, from US$ 7 billion to $ 9 billion, CBSL in collaboration with the banking sector, plans to introduce SL-Remit, a mobile app to enable migrant workers to send their earnings via a safe and secure, official channel.

At a national level, worker remittances have been on the decline in recent months with September inflows halving to US$ 353 million as compared with US$ 703 million a year ago. Remittances in the first nine months reduced by 9% YoY to US $ 4.5 billion from the corresponding period of last year.

“Migrant workers who opt to send their precious foreign currency through formal banking channels, will be treated to new privileges, at a national level as well as at bank level. Given HNB’s rich 40 year heritage in the remittance industry, we are ideally positioned to take the lead in streamlining inflows to Sri Lanka, while ensuring that the interests and well-being of migrant workers during their tenor as a migrant, and upon their return to the motherland,” HNB MD/CEO Jonathan Alles stated.

HNB Remittance services offer customers convenience and security to transfer funds through the bank’s worldwide network of partners in every populated continent.

HNB’s global network consists of more than 130 tie-ups with renowned exchange houses and banks across the world, where deposits could be made in 13 designated foreign currencies, along with LKR.

Notably, HNB recorded a significant 15% YoY increase in digital remittances in the first half of 2020 alone, following the introduction of cardless withdrawals for Lankan expatriates and the launch of the HNB RippleNet blockchain facility for enterprises, which helped ease the difficulties faced by customers. By the end of its last financial year, HNB had facilitated inward remittances in excess of LKR 203 billion inward remittances.

Marlbo Trading Company operating since 1989 in the field of electrical and allied products will host their seventh successive ‘Annual Year End Sale’ from December 1 to 4 at their head office at Abdul Gaffoor Mawatha, Colombo 3 under tight health guidelines also offering some of the ‘industry first’ deals.

Marlbo Trading will offer discounts up to 75% for some of their Testing and Measuring Equipment, Industrial Tools and Safety Products during this four-day sale to upgrade user’s instruments and equipment.

M. Maniymuthu

In addition, for the first time we will offer a ‘trade in facility’ where any used electrical equipment in any brand purchased anywhere in the world under any condition will be traded at this sale,” said M Maniymuthu - the Proprietor of Marlbo. The main objective of the sale is to focus on supporting professionals and students of the electrical fraternity to update their equipment, making it affordable with very attractive discounts along with total manufacturer’s warranty.

“Also the use of quality branded Instruments leads to obtaining proper measurements which will lead to the qualitative results of the work done. By this sale, the Company will help the members of the electrical engineering field at all levels to buy quality branded products at an affordable price.”

Another feature would be that for the first time in Sri Lanka an online night sale will be conducted on November 29, from 6 pm to 10 pm. During this session a few selected products will be offered on a basis of competitive bidding. A long-established trading company for over 30 years Marlbo represents many world-renowned brands in the field of testing and measuring instruments, power utilities and safety products such as FLUKE and AMPROBE USA, DILO Germany, KYORITSU Japan, DV POWER Sweden, MICHUAD France, and BAUR Austria known for its dependability, accuracy and durability.

“At this sale, many world-renowned brands of testing and measuring instruments such as Fluke, Amprobe, Kyoritsu, Sanwa and many other brands will be on offer.” Any member of the IESL and IIESL who purchases over Rs. 100,000 will be entitled to annual subscription payment subs to the institute for the year 2022 and will be discounted by us in addition to the discounts offered. In addition, this year we will offer special discounts to students with a full warranty offer. “In our industry we are the only company offering such discounts with the manufacturer’s full warranty.”

Another special feature this year would be that all student members who purchase instruments at the sale will be entitled to annual membership fee of the IESL or the IIESL for the year 2022, and will be discounted in addition to the discounts offered.

“Every year we have been introducing new concepts at this event and it has been a new experience and provides the opportunity to gather knowledge by participation and purchasing our products. We always have ample products and spares stored with us and high freight and air charges, escalating global prices due to the dollar appreciation would not affect our customers as we should be part of the escalating costs,” said M. Maniymuthu.

“The sales have been conducted very successfully during the past six years and have developed a greater demand by the industrialist’s year over year. This is a clear indication that the members of the industry have benefited tremendously and we are confident that it has been a great benefit to the members of the profession.”

More details could be obtained from their website www.marlbo.net

Airtel Lanka, a subsidiary of international telecom giant Bharti Airtel Limited, recently revealed its plans to strategically expand its new 4G network across the island.

As such, over 400 new 4G sites are being commissioned across the country, which is in addition to the 2,000 plus 4G sites Airtel added during the launch of its 4G.

The new 4G sites are mapped out to ensure enhanced capacity in highly populated areas and coverage penetration into rural regions. Airtel’s 4G network is built on a triple layer network, which gives it a solid combination of coverage and capacity to deliver a superior experience with drastically improved indoor coverage with stronger signal penetration. Having already completed over a third of the newly planned 4G sites, the finished sites are estimated to cover over an additional one million of the population. A prominent cause for the company to expedite its expansion drive was the two-fold increase in data usage since the pandemic brought along a new normal.

“I am certain that our rapid expansion strategy will directly benefit our consumers across the island, giving them a refreshed and enhanced network experience through our world-class 4G capabilities. Until adequate or even excess coverage is obtained, we will continue our 4G expansion drive, with every location also being 5G-ready to seamlessly accommodate the next generation of network when the time comes,” commented Airtel Lanka CEO/MD Ashish Chandra.

Through this drive, Airtel users will be given the opportunity to enjoy a network experience unlike ever before. As Airtel is also equipped with a refreshed prepaid and postpaid model with the recent launch of ‘Freedom Packs’, the launch of Airtel 4G is the telco’s single largest investment in Sri Lanka since its entry into the island in 2009. From online learning to work-from-home to virtual socialising, every user from children to adults will be able to benefit from not having to face any more call drops, interruptions or coverage issues.

In addition to the company led expansion of amplifying coverage island wide, Airtel’s joint venture with the Telecommunication Regulatory Commission of Sri Lanka’s (TRCSL) Gamata Sanniwedanaya aims to achieve 100% island wide coverage by 2022 by bridging the digital gap in rural districts with poor network coverage, by providing equal access to mobile connectivity for all Sri Lankans.