Pettah Times, Colombo (2024)

01/03/2024

Gapstars recently hosted its Scale-Up Party on February 16th, 2024. The annual event was the culmination of ‘Scale-Up Week’, hosting a delegation of more than 50 international guests from the global tech industry.

This year’s edition included a series of engaging workshops and events designed to empower partners and employees with valuable insights and knowledge. Attendees had the opportunity to participate in workshops focused on Agile principles and the transformative potential of AI, led by industry experts Azeem Saheer from Luminary and Dr. Sagara Sumathipala of Gapstars, respectively.

The final event, held at Port City, Colombo, brought together industry leaders, partners, employees, and community members to celebrate the company's achievements and future and plans.

01/03/2024

Janashakthi Life, a member of the Janashakthi Group, announces the appointment of Dilip de S. Wijeyeratne as an Independent, Non-Executive Director to the Company’s Board of Directors, effective from 14th February 2024.

Dilip de S. Wijeyeratne is a senior finance/banking professional and a principal consultant who provides advisory services to companies globally to expand operations within the Middle East, Sri Lanka, and Australia.

Wijeyeratne is an Associate Member of the Institute of Chartered Accountants of Sri Lanka (ACA), a Fellow Member of the Chartered Institute of Management Accountants, UK (FCMA), and a Graduate Member of the Australian Institute of Company Directors (GAICD).

He is currently the Senior Independent, Non-Executive Director of Sampath Bank PLC, the Senior Independent, Non-Executive Director of Singer Sri Lanka PLC, and the Senior Independent, Non–Executive Director of Hayleys Fibre PLC. He was also the Head of Finance and Global Markets Operations of HSBC Group Bahrain offices and a Board member of the Bahrain Asian Traders' Committee of Bahrain Chamber of Commerce.

With this appointment, the Janashakthi Insurance PLC Board of Directors PLC comprises of Prakash Schaffter, Ravi Liyanage, Ramesh Schaffter, Avindra Rodrigo, Warini De Costa, Annika Senanayake, Sivakrishnarajah Renganathan, Dr. Nishan de Mel, Dr. Gehan Gunatilleke and Dilip de S. Wijeyeratne.

01/03/2024

Nawaloka Hospitals PLC assures stakeholders of strong financial capability amidst recent rumors.

The Court of Appeal issued an interim order on February 28, 2024, preventing HNB from taking parate action against New Nawaloka Medical Center (Pvt.) Ltd, a subsidiary of Nawaloka Hospitals PLC, one of Sri Lanka's leading healthcare providers. In light of this development, Nawaloka Hospitals stated that it would like to reassure all stakeholders that the organization possesses the necessary financial resources and capability to fulfill its loan obligations without compromising its operations or commitments.

"It has come to the company's attention that certain parties have been circulating rumors regarding its financial ability. Nawaloka Hospitals categorically states that these rumors are baseless and do not reflect the reality of our organization's financial stability. As a prominent player in the healthcare sector of Sri Lanka, our commitment to serving the nation remains as strong as ever."

16/02/2024

The Minister of Ports, Shipping and Aviation Nimal Siripala de Silva discussed with the Japanese government and "JICA" institute about the resumption of the construction of this second terminal.

As a result, a group of representatives including Akihiko Tanaka, Chairman of "JAICA" Institute, met Minister Nimal Siripala de Silva on the afternoon of 14.02.2024 and discussed about this project.

Minister Nimal Siripala de Silva said that due to the rising prices of raw materials, equipment and goods in the construction sector, in addition to the loan amount given by "JICA", another provision of about 450 million US dollars is required.

After a long discussion between the two parties, the chairman of "JICA" said that since Sri Lanka's economy is showing growth, "JICA" will support the construction of the second terminal after the financial restructuring process is implemented by the International Monetary Fund.

The construction of the second terminal of Katunayake Airport, which started in 2020 at a cost of 145 billion rupees under the "JICA" soft loan scheme, was stopped in 2022. The main reason for this was the economic recession in the country by March 2022.

After the country was declared bankrupt due to the economic recession, the concessional loan program given by "JICA" for the second terminal project was also stopped.

As a result, construction of essential components of the second terminal was abandoned by the contractors, which was completed using the financial allocation of the airport company. Accordingly, about 6% of the construction of the project has been completed by now.

16/02/2024

India's Unified Payment Interface (UPI) made its official debut in Sri Lanka in partnership with LankaPay, where Dialog’s Fintech solution, genie business proudly conducted the inaugural UPI transaction in the presence of the President of Sri Lanka, Ranil Wickramasinghe, Prime Minister of India, Narendra Modi, and Prime Minister of Mauritius, Pravind Jugnauth.

India's UPI is a real-time payment system that enables Indian users to link multiple bank accounts and conduct seamless fund transfers and transactions using UPI powered applications. Sri Lankan businesses big or small can now embrace the opportunity to accept payments from UPI powered applications.

This integration not only ensures smooth transactions but will also enhance the growth of Indian Tourism. With increased accessibility to Indian markets, businesses in Sri Lanka can capitalize on new avenues for expansion and collaboration, fostering greater economic resilience and prosperity.

LankaPay

16/02/2024

Sampath Bank’s Profit Before Taxes on financial services stood at Rs. 38.4 billion in FY 23 which is a 89.9% increase over the previous year’s achievement of Rs. 20.2 billion. However, considering the impact of higher tax expenses, the Profit After Tax (PAT) demonstrated a reduced improvement of 30.5%, rising from Rs. 13.1 billion in the previous year to Rs. 17.1 billion for the year ended 31 December 2023.

The Group remained resilient with a profit after tax of Rs. 17.9 billion for the year under review, reflecting a 27.5% growth over the previous year.

The Net Interest Income (NII) for the year amounted to Rs. 72.3 billion, indicating a marginal 1.6% decline year on year, primarily due to the increase in interest expenses for FY 2023 surpassing the increase in interest income. Interest income increased by Rs. 45.8 billion in the year under review, marking a 29.1% improvement compared to the previous financial year, while interest expenses surged by 55.9% year on year reaching Rs. 131.2 billion.

Despite this significant disparity, timely re-pricing strategies, coupled with stringent management of both asset and liability portfolios amidst the backdrop of the declining AWPLR, helped contain the impact on the Bank's NII, ensuring only a marginal drop. The Net Interest Margin (NIM) for the year was 5.16%, compared to 5.66% reported in the previous year.

Sampath Bank

16/02/2024

Agreements have been reached to initiate direct flights between Katunayake Bandaranaike International Airport (BIA) and Tel Aviv in Israel, expanding air transportation services in Sri Lanka.

The diplomatic agreements were signed on February 16, 2024, at the Ministry office in Colombo, between Minister of Ports, Shipping, and Aviation – Nimal Siripala de Silva, and Israel's Minister of Transport and Road Safety - Miri Regive.

According to a Ministry sources, the new service will commence in March of this year on a scheduled timetable. Since last December, five chartered aircraft belonging to Arkia Israeli Airlines have already operated air services to BIA. These A321 aircraft have the capacity to carry almost 300 passengers at a time. The Israeli Minister of Transport and Road Safety emphasizes that several other airlines in Israel have also expressed their consent to start air services between the two airports.

Minister Nimal Siripala de Silva said that since nearly twenty thousand Sri Lankan workers are engaged in various jobs in Israel, this direct flight service is very convenient to fly between the two countries and it is possible to get air tickets at a lower price than at present.

Also, the Israeli Transport Minister said that a large number of tourists from Israel are looking forward to visit Sri Lanka and said that this will lead to the development of bilateral relations between the two countries.

12/02/2024

Soorya, a trusted heritage and household brand of Sun Match Company with a legacy of over 40 years, has proudly announced the launch of its latest offering – Soorya Sambrani, continuing the age-old tradition of burning medicinal resin to purify air, remove negative energy and promote wellbeing.

The unveiling of the new Sambrani product took center stage at The Grand Kandyan Hotel recently. Senior representatives from the company, including Silver Screen Idol Yashodha Wimaladharma, the brand ambassador, were present at the occasion, interacting with the Soorya distributors and dealers.

"As a trusted brand for over 40 years, we wanted to make this ancient wellness practice easier to follow for modern families and introduce it to new customers. Our new Sambrani range helps everyone to enjoy spiritual and health benefits, in line with Soorya's commitment to tradition and integrating daily routines," said Gowri Rajan, Director and Chief Marketing Officer, Sun Match Company. "The launch of Soorya Sambrani demonstrates the brand's dedication to providing quality products that resonate with the cultural and spiritual practices of the community."

Sun Match

12/02/2024

Samsung, the leading consumer electronics brand in Sri Lanka, proudly unveils the latest addition to its lineup - the Galaxy A15 5G, in 2024. As part of the Galaxy A series, this release underscores Samsung's commitment to providing cutting-edge technology at an accessible price point, ensuring that innovation is within reach for all.

Distinguished by Galaxy's renowned design philosophy, the Galaxy A15 5G features a glastic back panel with a subtle haze finish, complemented by a redesigned side panel and a flat linear camera housing, enhancing both aesthetics and grip.

Available in three vibrant colors - Blue Black, Blue, and Light Blue - the Galaxy A15 5G boasts a stunning 6.5-inch Super AMOLED display with Vision Booster technology, delivering smooth, bright, and vivid visuals at a 90Hz refresh rate while minimizing eye strain with a low blue light display.

Equipped with a powerful 50MP triple camera setup featuring VDIS technology, the Galaxy A15 5G ensures crisp and steady video capture, even during dynamic movements. Moreover, with the Knox Security platform integrated at the chip level, users can rest assured that their data remains secure, supported by features like Auto Blocker, Privacy Dashboard, and Secure Folder.

Designed for longevity, the Galaxy A15 5G guarantees up to four generations of OS upgrades and five years of security updates, ensuring continued performance and protection against evolving threats.

Enhancing the Galaxy experience further, the Galaxy A15 5G introduces innovative features like Quick Share and Private Share, enabling seamless file sharing with enhanced privacy controls. Additionally, the inclusion of Samsung Wallet simplifies ID storage and payment transactions, streamlining everyday tasks.

Available in 8GB memory configurations with options for 128GB or 256GB storage, powered by the MediaTek Dimensity 6100+ processor, the Galaxy A15 5G ensures swift and efficient performance. Its robust 5000mAh battery, coupled with 25W fast charging support and adaptive power-saving features, guarantees extended usage with minimal downtime.

To sweeten the deal, Samsung offers customers a One-Time Screen Replacement service for 12 months from the activation date of their Galaxy A15, available as a limited-time seasonal offer.

12/02/2024

The All Island Dairy Association (AIDA) has voiced grave concerns regarding the Sri Lankan government's proposed increase in the Value Added Tax (VAT) from 15% to 18%, set to take effect on January 1st, 2024. This move, intended to broaden the tax base, could have severe repercussions for the dairy sector, a vital contributor to the nation's GDP and a cornerstone of rural livelihoods.

The dairy sector, which witnessed substantial growth with a peak of over 400 million litres of milk production from 2017 up to 2021, now faces a precarious situation. The proposed VAT hike threatens the profitability of the sector and contradicts the government's own objective to boost dairy production by 53%. Fresh milk production and fresh milk-based products were previously VAT exempt, providing essential support to around 300,000 small-scale farmers and over 2 million dependents directly or indirectly involved in the sector.

The potential repercussions of the VAT increase are multi-faceted. The economic stability of the dairy sector, crucial for the well-being of farmers and the broader rural economy, is at risk. The sector experienced a 1.33% decline in 2022, indicating its sensitivity to economic fluctuations. The proposed VAT increase could exacerbate this vulnerability, leading to a more pronounced decline in production and real income losses for farmers.

Furthermore, the cost of producing a litre of milk has surged by 174% between 2013 and 2022, primarily due to rising input costs such as feed ingredients. Retail prices have followed suit, increasing by 168% in the same period. The additional burden of increased VAT could further strain the affordability of dairy products, potentially leading to a decline in consumption. This has dire consequences for public health, particularly among vulnerable groups, intensifying the nation's existing malnutrition problems.

The economic implications extend beyond the dairy sector itself. Anticipated price increases in dairy products, integral to the Sri Lankan diet, could result in a significant decline in consumption, estimated to be around 30-40%. Such a downturn in dairy consumption has ripple effects across ancillary sectors, including packaging, transportation, and retail, potentially leading to job losses and decreased income for workers in these related fields.

The All Island Dairy Association puts forth key policy recommendations to mitigate the impact. Firstly, AIDA suggests implementing the VAT increase gradually, accompanied by support measures. This approach would allow the dairy sector to adjust while ensuring relief for essential inputs.

To enhance productivity and reduce local production costs, AIDA proposes facilitating the import of feed ingredients. Additionally, the association recommends providing the private sector with access to underutilized land resources on government schemes for large-scale intensive dairy farming, fodder cultivation, and silage production through reasonably agreed long-term leases. AIDA also encourages the cultivation of fodder/maize on paddy fields during the Yala season, and between the Maha and Yala seasons to meet the requirements of small and medium-scale dairy farmers.

Another crucial recommendation involves strengthening cooperatives and promoting the production of value-added dairy products to enhance profitability within the sector. AIDA emphasizes the importance of proactive monitoring and consumer awareness initiatives, assigning the Department of Animal Production and Health (DAPH) the responsibility of tracking the VAT's impact, suggesting policy adjustments, and conducting consumer awareness campaigns. This comprehensive set of recommendations aims to safeguard the interests of the dairy sector and ensure sustainable growth in the face of the proposed VAT increase.

12/02/2024

Andre Bonthyus, the newly appointed Group Managing Director of Associated Motorways (Private) Limited (AMW,) during a recent event in Colombo, said that he looks forward to growing the organization and emphasized on AMW’s return to the market.

Kumika Imai, Executive General Manager - Yamaha Motor Corporation Japan, who is handling over 140 countries where Yamaha is present, stated that she had chosen to visit Sri Lanka due to the significance and value placed on the country and its market.

Notably, they mentioned the fact that automotive imports to Sri Lanka which have come to a halt due to the foreign exchange crisis, would get a respite this year, as the country’s macroeconomic indicators are getting into a better shape after four years.

“We believe that motorcycle imports will be allowed into Sri Lanka this year and we want our dealers to be ready to maintain and handle our loyal Yamaha customers, and meet the demand for Yamaha motorcycles,” they said.

“In such circumstances, Yamaha dealers should improve their business processes now, in order to thrive in the boom time. We will be providing the dealer network with strategic guidance and support enabling them to align their business objectives with the overall vision of Yamaha and AMW,” they said.

They emphasized that Yamaha and AMW have developed new strategies to maintain close communication with all of their dealers.

“We will effectively communicate with our dealers and obtain their valuable inputs for strategic pricing of Yamaha motorcycles, spare parts and outboard motors. In addition to that, we will support our dealers in digital order placements, invoice posting, streamlining payment terms and business development through training sessions at regular intervals,” they said.

The import ban on vehicles in Sri Lanka has been in place since 2020; a decision made by the government to prevent the outflow of much needed foreign currency. A high percentage of the Sri Lankan workforce that actively contributes to the economy mainly depends on motorcycles for transportation because motorcycles can be bought and maintained at reasonable prices.

12/02/2024

The Central Bank of Sri Lanka has announced the appointments of Rajeev Amarasuriya and Manil Jayesinghe to the Governing Board, with effect from 30 January 2024 and 01 February 2024, respectively.

Rajeev Amarasuriya is the Immediate Past Secretary of the Bar Association of Sri Lanka and has an extensive Appellate Court practice in the areas of Public Law and most branches of Civil Litigation including contractual, commercial, property, taxation, banking and other disciplines of the law.

He is a former Member of the governing body of the Sri Lanka Law College, the Council of Legal Education of Sri Lanka chaired by the Honourable Chief Justice and has served as former Commissioner of the Securities and Exchange Commission of Sri Lanka, former Member of the Board of Governors of the Sri Lanka National Arbitration Centre and the Immediate Past President of the Alumni Association of the University of Colombo.

Manil Jayesinghe is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka, Fellow Member of the Chartered Institute of Management Accountants (UK), Fellow Member of the Certified Management Accountants of Sri Lanka and a Member of the Chartered Institute of Public Finance & Accountancy.

Jayesinghe, who started his career at the Ernst & Young,
gained extensive experience in a range of sectors including manufacturing, retail, hospitality, wholesale business and telecommunication, in his capacity as Partner of Ernst & Young for 30 years; and was the Country Managing Partner of Ernst & Young Sri Lanka & Maldives from 2021-2023, Head of Assurance Practice in Sri Lanka and the Profession Practice Director of Sri Lanka, from 2003 -2023. His forte in valuation of businesses and development of strategic plans for Financial Institutions, made Mr. Jayesinghe is a key resource in financial services. He also served as Head of the IFRS/SLAS Desk in Sri Lanka.

09/02/2024

Exterminators has appointed Dr. Kishu Gomes as its chairman with effect from February 8, 2024. Dr. Kishu Gomes is a corporate leader with a track record, having held leadership positions in both multinational corporations and local conglomerates.

The company stated that his tenure as Chairman of Exterminators is a significant milestone for the company, as it marks the beginning of a new chapter under his guidance and leadership.

Exterminators Sri Lanka Dr. Kishu Gomes

09/02/2024

Hemas Holdings, for the first nine months of the financial year 2023/24, has recorded cumulative revenue growth of 10.3 percent amounting to Rs. 90.2 billion.

Operating profits for the period mirrored the revenue growth, reaching Rs. 8.8 billion, while earnings experienced a 41.2 percent increase, posting a total of Rs. 4.5 billion.

During the quarter, Group revenue witnessed a marginal increase of 4.9 percent standing at Rs. 31.2 billion.

Hemas Holdings PLC Kasturi Chellaraja

08/02/2024

After carefully reviewing the developments in the domestic money market, as well as the behaviour of Licensed Commercial Banks (LCBs) in terms of market participation along with the improvements in liquidity, the Monetary Policy Board, at its meeting held on 07 February 2024, has decided to relax the restrictions imposed on the Standing Facilities to LCBs under Open Market Operations (OMOs).

Accordingly, with effect from the reserve maintenance period commencing 16 February 2024, the restriction on the SLF will be removed and the restriction on SDF will be relaxed from five times (05) to ten times (10) during a calendar month.

The relaxation of the restrictions on the Standing Facilities is expected to accelerate the downward adjustments in market interest rates as envisaged under the overall monetary policy direction of the Central Bank.

The Central Bank of Sri Lanka introduced restrictions on the usage of the Standing Facilities by the LCBs under the OMOs, with effect from 16 January 2023.

Accordingly, access to the Standing Deposit Facility (SDF) was limited to a maximum of five (05) times per calendar month, while access to the Standing Lending Facility (SLF) was limited to 90 per cent of the Statutory Reserve Requirement (SRR) of each LCB, at any given day.

The Central Bank observes that these measures have yielded positive outcomes by way of reactivating the domestic money market and curtailing excessive competition for deposit mobilisation among financial institutions. These measures were also instrumental in inducing a moderation in the market interest rate structure in line with the monetary policy stance, while preserving stability of financial institutions and the financial system.

07/02/2024

Janashakthi Insurance PLC, a member of the Janashakthi Group, announces the appointment of Dr. Gehan Gunatilleke as an Independent, Non-Executive Director to the Company’s Board of Directors, effective from 24th January 2024.

Dr. Gehan Gunatilleke is an attorney-at-law and a founding partner of LexAG, a law firm based in Colombo. He has previously served as an advisor to Sri Lanka’s Ministry of Foreign Affairs, where he provided counsel on international treaty compliance and facilitated access to the European Union’s GSP+ trade concession scheme. Additionally, he has contributed to several legislative drafting committees in Sri Lanka.

Currently, Dr. Gunatilleke holds positions as a Commissioner at the Human Rights Commission of Sri Lanka and as a post-doctoral Fellow at Pembroke College, University of Oxford. He has earned his doctorate and master’s degree in law from the University of Oxford, where he was a Commonwealth scholar, and obtained an LL.M from Harvard Law School, where he was a Fulbright scholar.

07/02/2024

During the first four days of February alone Sri Lanka has managed to attract over 28,400 tourists, according to the latest data from Sri Lanka Tourism Development Authority.

So far this year, over 236,000 tourists have visited the country.

Pc - Nikkei Asia

07/02/2024

Sri Lanka's gross official reserves have shown improvement in January as it closed the month amassing $4.49 billion in reserves. According to Central Bank of Sri Lanka, this is an increase of 2.3% compared to the $4.3 billion recorded in December 2023.

07/02/2024

The Central Bank of Sri Lanka is set to hold a special monetary board meeting today. However, it has informed the public policy rate revisions would not be done during this meeting.

07/02/2024

Colombo Stock Exchange's daily turnover has exceeded Rs. 12 billion today and the reason is largely attributed to a significant transaction pertaining to John Keells Holdings PLC.

This is because the seventh largest shareholder of John Keells Holdings Citigroup Global Markets Limited Agency Trading Prop Securities A/C sold a whopping 61,904,939 shares, amounting to 4.5% of the company's issued capital.

07/02/2024

Sri Lanka’s book industry is deeply disappointed about the 18% tax that has been imposed by the Government in an attempt to increase the tax revenue. The industry has claimed that the taxes have made knowledge unaffordable for Sri Lankans which is a violation of UNESCO convention.

07/02/2024

Exterminators PLC has announced that the company recently entered a ground-breaking strategic partnership with PestScan B.V. Netherlands and Sentario UK Limited.

Exterminators PLC is aiming to transform the pest management industry in South Asia from a chemical-focused industry to a technology-focused industry by adapting cutting-edge AI-powered digital pest management solutions.

Exterminators PLC is the exclusive distributor of PestScan’s digital pest management software for India, Sri Lanka, and the Maldives and the non-exclusive distributor in Pakistan, Bangladesh, Nepal, and Bhutan.

Marlon Ferreira, Founder and Managing Director of Exterminators PLC, stated, “This strategic partnership enables the company to offer advanced AI-powered digital pest management solutions to over 15,000 pest control companies operating in South Asia, setting a new standard for service excellence in the region. Exterminators PLC is poised to become a leader in digital pest technology in South Asia and is also rebranding its brand from pest management to a pest technology brand.”

Exterminators Sri Lanka

06/02/2024

"While our nation is gradually recovering, I recognize the hardships endured by the people. Efforts have been made to provide relief through programs such as the ‘Aswesuma’ program and salary increases for government employees," President stated addressing a recent event.

He stated: "We must avoid falling into debt again and prevent becoming a nation of beggars. Safeguarding our pride is crucial, and we must embark on this journey together. Today, each one of you is a stakeholder in this country. I encourage everyone to act with pride and wish you all the best."

06/02/2024

The Sri Lanka Export Development Board (EDB), in collaboration with the Sri Lanka Apparel Sourcing Association (SLASA), the Sri Lanka High Commission in the UK, and the Joint Apparel Association Forum (JAAF), is organizing the 'Sourced Sri Lanka – Textile & Apparel Roadshow' scheduled to take place June 2024 in London.

This event, set to take place in early June in the city of London, will feature fifty exhibitors and is expected to attract a diverse audience of a thousand foreign buyers and Sri Lankan trade visitors.

The collaboration aims to establish new connections and strengthen existing ties with UK buyers in order to reach a historic milestone for Sri Lanka's apparel export industry.

Joint Apparel Association Forum Sri Lanka Export Development Board

06/02/2024

Adani Group Claws back narrative a year after Hindenburg Report

When Hindenburg Research accused the Adani Group of "brazen stock manipulation" and accounting fraud a year back, it led to a stock market rout that erased about $150 billion in market value at its lowest point.

But unlike its previous targets, tycoon Gautam Adani, who was the world's second-richest man before the damning January 24, 2023 Hindenburg report, has managed to claw back the narrative on strength of his group's business fundamentals and performance as well as investors continuing to pour in money into his apples-to-airport conglomerate.

The conglomerate vehemently denied all allegations as it redrew its strategy that included trimming debt through prepayments and repayments of borrowings, paring the founder's share pledge and bringing in both promoter and marquee investor equity.

The strategy seems to be paying off with share prices of some of the 10 listed companies recovering all of the Hindenburg losses.