Turning a new page in Sri Lanka’s business history, the entire company registration process is to be fully automated thereby slashing the waiting period for the birth of a new Company.
“The groundwork has been going on for this e-Registration of Companies Project (eROC) for some time and today I am pleased that we are launching work on this pioneering initiative in Sri Lanka’s business sector” said the Minister of Industry and Commerce Rishad Bathiudeen on 30 May. Minister Bathiudeen was briefly addressing the MoU signing event of eROC project between the Department of Registrar of Companies (DRC) under his Ministry and KPMG Sri Lanka, the supplier of the automated solution.
The total number of companies registered in Sri Lanka (under the Companies Act) surged by 11% to 85587 in 2016, from 77116 in 2015.
“This project is part of the business development vision of the Unity government of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe” said Minister Bathiudeen, and added: “The groundwork has been going on for this e-Registration of Companies Project (eROC) for some time and today I am pleased that we are launching work on this pioneering initiative in Sri Lanka’s business sector. We are not starting this work using any taxpayers’ money but are using funds only from our own Company Registrar.”
The eROC envisions the entire company registration process (such as Ltd, Pvt Ltd, Guarantee Ltd, etc) done by DRC-currently around three days- is to be fully automated and waiting period for the birth of a new firm drastically reduced to just one day. The cost of Rs 57 million is funded by the Companies Fund of the Department. The project is executed by KPMG Sri Lanka for DRC under Ministry of Industry and commerce. The online system is scheduled to go live in March 2018. All the required documentation could be submitted online as well as payments too could be made online.
“The main objective is to reduce unnecessary time consuming paperwork and help more startups registration as well as to speed up the process” said Registrar General Siriwardena and added: “This does not result in any discontinuation of current manual process, anyone still wishing to register their firms as usual. Even foreigners can register their companies in Sri Lanka from their countries, by paying through the nominated credit cards. Once online application is paid and successful, the Certificate of Incorporation will be posted to the registrants address if requested.”
Since this is an end-to-end automation of functions of the Department, all the current transitions could be done online as well, even from abroad. The payment gateway is credit card empowered.
The DRC, in developing and fostering a trusted business environment, implements, administers and enforces the Companies Act No. 07 of 2007, the societies Ordinance (Chapter 123), The Public Contract Act No. 03 of 1987 and Cheetu Ordinance.
Photo – Registrar General of Companies D.N.R.Siriwardena (left) and Partner of KPMG Sri Lanka C.P.Jayatilake (right) in the eROC MoU in the presence of theMinister of Industry and Commerce Rishad Bathiudeen (centre) on 30 May in Colombo.
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Work starts on automation of Sri Lanka startup registrations
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Sanjay Wijemanne joins Fairway Holdings
Mr. Sanjay Wijemanne, the former Head of Retail Banking at Standard Chartered Bank Sri Lanka, will join Fairway Holdings’ as Group Director of Sales and Marketing. With his appointment, Fairway Holdings will strengthen its core management team as well as take the Group’s Sales and Marketing functions to a new dimension.
Mr. Wijemanne, a versatile banker with a wealth of experience spanning over 22 years, has a track record of initiating growth strategies and achieving exceptional results in some of the largest banking institutions in the country.
After a successful stint at HSBC where he held the positions of Head of Branches, Head of Sales and Vice President of Custody and Clearing, Mr Wijemanne took up the post of General Manager of the Value Center at Standard Chartered Bank in 2007. He was next appointed as the bank’s Head of Retail Banking, a position he held from 2010 to 2017. During the six years of his leadership of the retail sector, the bank attained the highest year on year sales growth rates as well as the highest ever top and bottom line in 2014. Under his watch, Standard Chartered Bank won the prestigious “Best Retail Bank in Sri Lanka” award for 2014 awarded by The Asian Banker.
Mr. Wijemanne possesses a Bachelor of Science Degree in Business and Finance from Mount St. Mary’s College in Maryland, USA.
A lover of tennis in all its forms, having represented Sri Lanka in the sport even as a schoolboy at Royal College, Mr. Wijemanne is actively involved in several initiatives to promote the sport in Sri Lanka.
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Central Bank, IFC Partner to Promote Sustainable and Inclusive Finance in Sri Lanka
IFC, a member of the World Bank Group, signed a Memorandum of Understanding (MoU) with the Central Bank of Sri Lanka (CBSL) to enhance and develop environmental and social risk management and sustainable financing practices for Sri Lanka’s financial sector, an important step in IFC’s global efforts to promote sustainable finance.
As a new member of IFC’s Sustainable Banking Network (SBN), the Central Bank will benefit from the experience and knowledge of other members, while receiving technical support in green finance from IFC, a global leader in environmental and social standards.
Sri Lanka is unique, with 18 banks already adopting 11 voluntary principles, under the leadership of the Sri Lanka Banks’ Association. The MoU signed by both parties provides a clear vision for cooperation and a commitment to a path forward for the sustainable finance journey in Sri Lanka.
“We see a great opportunity for Sri Lankan banks to support greener, cleaner projects aligned with climate change impacts. We also welcome the cooperation and technical expertise shared by IFC and the Sustainable Banking Network,” said Dr. Indrajit Coomaraswamy, Governor, Central Bank of Sri Lanka.
Under this partnership, the Central Bank will collaborate with SBN to develop a sustainable finance roadmap to guide the local banking and finance industry; strengthen the capacity of the banking sector to implement such practices; facilitate knowledge sharing with other SBN members; and promote green investment in the island nation.
“IFC and the SBN experience has demonstrated how important it is to adopt practices that put environmental, social and corporate governance considerations at the center of efforts to build stable and responsible financial systems,” said Amena Arif, IFC Country Manager for Sri Lanka and Maldives. “We are excited to partner as Sri Lanka looks to become a regional and global leader in sustainable finance.”
The IFC-supported Sustainable Banking Network (SBN) is working with associations and regulators to level the playing field for banks and encourage green investment. To date, 15 SBN member countries have launched sustainable finance polices, guidelines and roadmaps.
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Piling of the iconic 50-storey Capitol TwinPeaks completed ahead of schedule
Capitol Developers Limited’s latest 470 apartment twin tower project – Capitol TwinPeaks – is pleased to announce that it has completed the Piling stage fully and that construction is progressing steadily. Work is now underway on the basement of the twin towers.
The project is well ahead of schedule, which is reflected by the fact that the groundbreaking ceremony was held not too far back in November 2016. Capitol Developers used 5 pilling machines to accelerate construction to meet scheduled completion dates of the project by 2020. One of these pilling machines – the Bauer BG 30 – is the largest piling machine of its kind in Sri Lanka and reflects the developer’s strong investment commitment. Strategically located at 24, Staple Street, Colombo 02, the project is expected to be the most centrally located, high profile luxury residential project in the city.
Capitol Developers and Sanken Construction of the renowned Sanken Group have collaborated to create these iconic skyscrapers whilst the global design firm P&T Group of Singapore are the architects for Capitol TwinPeaks. It is located in the heart of the city, in an elite neighbourhood, with proximity to prestigious shopping malls and other conveniences, in addition to a beautiful entry point with the lake frontage of Beira Lake.
Capitol Developers has to its credit Capitol Residencies on Dharmapala Mawatha, HR Residencies on Havelock Road, Tulasi Mahal Apartments in Jaffna, Capitol 7 on Rosmead Place, Capitol Elite on Horton Place and the business city hotel, Cinnamon Red. This newest project, Capitol TwinPeaks, a luxury apartment project, will feature a unique Sky Lounge, offering a magnificent view of Colombo, the Beira Lake, the Colombo Port City and even the coastal line and harbour.
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Global Service Guru Ron Kaufman Live In Sri Lanka
The world’s No 1 Guru in Service, the frontrunner in marketing and spearhead of pioneering thought cultures that have transformed and revolutionized an element of marketing, Ron Kauffman, will be in Sri Lanka on the 18th and 19th of July at the invitation of the Sri Lanka Institute of Marketing (SLIM). To impart his knowledge and competencies as a global service consultant, speaker, educator, thought leader and customer service exponent, Ron Kauffman will lead a public forum on the 18th of July at Waters Edge on ‘Service Leadership – The Inevitable’ and a CEO Breakfast Forum at Cinnamon Grand on the 19th of July, focusing on ‘Leading the Service – Focused Culture: creating superior service from the C-suite’.
Renowned for his motivational yet simple approach in delivering and communicating service and customer experiences with infectious passion and enthusiasm, at the CEO Forum, Kauffman intends to explain the concept of Creating Superior Service from the C-Suite. He will share powerful insights on gaining sustainable competitive advantage through service, which have resulted in the delivery of real business results in companies on every continent.
Articulating the axiom, ‘Customer is King’ but bringing in a different view on accomplishing and achieving a competitive edge by building a culture that engages and empowers each employee to delight stakeholders through elevated service levels, Kauffman will lead participants at the Public Forum to discover fundamental service principals that raise service levels and improve customer experience at every point of contact. He will also exemplify how to align culture-building activities currently in use throughout organizations, identify opportunities for new culture building initiatives, upgrades and improvements and prioritize activities and develop practical action plans for the best results. His wide experience and scope with customers across diverse businesses from government agencies to multinational companies including Singapore Airlines, Xerox, Marina Bay Sands, Wipro and Changi Airport will come into play during his two day knowledge sharing exercise.
As SLIM President Karthik Elangovan asserts, “Being the national body for marketing in the country, having Ron Kauffman live in Sri Lanka is truly an honor for us as it reiterates our passion to deliver the most effective marketing service principles, expertise and education and training for our business community. Here is a service Guru who has embedded life changing experiences in professionals around the world, a world leader who has undeniably motivated each of us. He has revolutionized the world of customer service training and service culture development and sharing his expertise here will surely give the business community in Sri Lanka an extremely competitive advantage in this era of transformative change for the country. His unique specialty in strengthening, building and uplifting service cultures with some of the world’s largest and most respected organizations has pushed these entities from the realm of simply being a great organization to an extraordinary one.”
Established under an Act of Parliament in 1970, SLIM has been the national body for marketing in Sri Lanka for over 45 years. For tickets, contact Prageeth on 0703 069 031 or Mihirinie on 0703 701 166.
Seating from L to R- Head Table – Mr. Sanath Senanayake- CEO/Executive Director – SLIM, Mr. Thushara Perera- Advisor – Ron Kaufman Project, Mr. Pradeep Edward- Vice President – SLIM, Mr. Roshan Fernando- Secretary – SLIM, Mr. Ranga Perera- Project Chair – Ron Kaufman Project
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SLIIT programmes offer guaranteed internships with Industry Leaders
The Sri Lanka Institute of Information (SLIIT) is currently accepting applications for undergraduate degree programmes in the fields of Computing, Business Management and Quantity Surveying.
Applicants for these programmes are required to have a minimum of three passes at Local or London GCE Advanced Level Examinations, in the same sitting, and would further be required to pass an aptitude test conducted by SLIIT. Recruitment of students is continuing in the month of June 2017.
An internationally-accredited higher education institute, SLIIT provides the perfect opportunity for today’s youth to follow the most sought after undergraduate and postgraduate degree programmes in the fields of Computing, Business Management and Quantity Surveying.
With a success story spanning over 18 years, SLIIT has been ranked as one of Sri Lanka’s best Higher Education Institutes. SLIIT’s state-of-the-art teaching methodologies, along with its research-based learning environment, and ultra-modern, purpose-built classroom facilities, help students to achieve the required international standard qualifications and experience to steer their way through the ever-changing, progressive world.
The need for students to engage with the industrial environment for better professional development is recognized and SLIIT has established solid relationship with industry leaders within the Government and Private sectors to ensure the students get the necessary industry related training and knowledge through internships. These engagements help to guarantee employment for the many graduates that exit the institute ever year.
The BSc (Honours) in Information Technology spanning over a 4-year period, is a UGC approved course with broad spectrum of specializations in Information Technology, Software Engineering, Information Systems Engineering, Computer Systems & Network Engineering, Cyber Security, and Interactive Media. The first four areas of specialization have been accredited by IET, UK enabling students to obtain the “Chartered Engineer” qualification which is the first of its kind in Sri Lanka.
The BBA Honours Degree programme, approved by UGC, offered at SLIIT is a 4 years’ duration. The course aims at producing graduates with a well-rounded and holistic approach which focuses on giving the students the right skill sets and aptitude thus creating the necessary attitude. The course is designed to get students to enhance their thinking ability, encouraging them to be analytical and independent in their views whilst reflecting on the consequences of their actions and thoughts.
SLIIT also offers a UGC-recognized 3 year BSc (Honours) degree in Quantity Surveying. Focus is placed on professional activities with special emphasis on higher learning and research studies on engineering. The newly instated state of the art facilities will be a contributing factor to achieving a qualitative educational experience.
SLIIT additionally provides a Quantity Surveying Top-Up option programme by the Liverpool John Moores University, UK for students who possess a diploma from City & Guilds, EDEXCEL, IQSSL or any other related institute.
A wide range of skills are developed through the programmes, thus ensuring the graduates are fully capable and competent in their chosen discipline. The fully-fledged laboratories along with other facilities help to enhance and sharpen the skills of the undergraduates to prepare them for the rapid transitions in the respective industries.
SLIIT has synergistic relationships with various industries and build strong partnerships with renowned international universities to develop high calibre programmes with the intention of producing star level graduates possessing the ability to perform well in highly volatile work environments.
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13 women entrepreneurs from seven districts in Sri Lanka bag awards
Women in Management, IFC Host Discussion on Women Leadership and Award Upcoming Women Entrepreneurs in Rural Sri Lanka
As part of the 7th Professional and Career Women Awards 2017, Women in Management (WIM) and IFC, a member of the World Bank Group, hosted a panel discussion ‘Women Leadership for the Changing World’ in Kandy, where five women who have championed the corporate sector as leaders, who are also WIM awardees, shared their experience in their journey to success. This was followed by a mini awards ceremony – ‘Upcoming Women Entrepreneurs of the Year Awards 2017’, to recognize women entrepreneurs from seven districts in Sri Lanka, as to how they seized the opportunities and overcame future challenges in their careers, businesses, and everyday lives.
The discussion comprised a distinguished panel including Kasturi Chellaraja Wilson, Managing Director of Hemas Pharmaceuticals/Hemas Logistics and Maritime Cluster; Sonu Grover, Managing Director of Coca-Cola Sri Lanka; Chandi Dharmaratne, Senior Director of Human Resources for VirtusaPolaris Sri Lanka; Dayalanie Abeygunawardena, Chief Operating Officer of Janashakthi Insurance; and Ramya Weerakoon, Vice President of InfoTech – all of whom have achieved remarkably as women corporate leaders in the country.
The inspiring discussion was followed by an award ceremony to celebrate the achievements and experiences of 13 upcoming women entrepreneurs from seven districts of Sri Lanka, namely Kandy, Anuradhapura, Mannar, Vavuniya, Hambantota, Ampara and Batticaloa. This initiative was primarily undertaken to showcase the untapped potential of a larger and more inclusive pool of talented women in Sri Lanka, who could be brought into the local and international spotlight for the benefit of all.
Speaking at the event, Sulochana Segera, Founder and Chairperson of Women in Management said, “The Upcoming Women Entrepreneurs 2017 program is another initiative by Women in Management and IFC to highlight the inspiring stories of successful Sri Lankan women. In fact, two of our panelists are not only distinguished in their own right, they are also winners at previous Professional and Career Women Awards, which makes their stories and advice directly relevant to participants, giving them added stature as role models to look up to.”
The event was attended by Sarath Ekanayake, Chief Minister of the Central Province of Sri Lanka, members of the provincial council, women entrepreneurs, divisional secretariats of the respective districts as well as by students from the University of Peradeniya.
The 13 women entrepreneurs that were recognized as the ‘Upcoming Women Entrepreneur of the Year 2017’ were:
- Batticaloa – Nesaiah Seethaluxshmi (dairy farming); ML Risana (AKRAM Bites & Chips business venture); and Mani Manjula Manidhiwanan (NACHIYAR’ Traditional Restaurant business venture);
- Vavuniya – Luxmanan Jegajothi (palmyrah handicrafts); Edwindias Jegajothy (business in making bags); and Suntharalingam Gantharuby (flower decorations);
- Hambantota – Pullaththara Widanagamage Sisiliyana (tissue culture planting); and Wasanthi Karunathilaka (ALOKA Organic Food Products business venture);
- Anuradhapura – WTDP Anusha Priyangani Sandamali (‘NIMSARA’ Tailors & Bridal business venture); and SPS Kumari Sumathipalage (SUSIL Shoe Palace business venture);
- Kandy – JRJ Asanka Jayawardana (‘BK PRASATH Building Material Suppliers business venture);
- Mannar – Prima Croos Gnanarajan (RIYA Fruit Juices & Ice Cream business venture)
- Ampara – AK Dilini Maheshika (HADDAKARI Batik Fashions business venture).
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Sri Lankan shares snap 3 sessions of falls; flood woes weigh on mkt
Reuters – Sri Lankan shares rose on Wednesday, recovering from a more than three-week closing low hit in the previous session and snapping three straight sessions of falls, though floods and landslides that killed over 200 people weighed on sentiment.
The extent of the damage is yet to be assessed, with the country’s main agricultural exports – tea and rubber – hit by the worst torrential rains in 14 years.
Analysts said it is too early to evaluate the real impact of the floods and landslides, though short-term disruptions in rubber tapping and plucking of tea leaves and buds could lead to a decline in output.
Inflation could rise in the short term, especially due to crop damages and distribution difficulties with regard to fresh food produce and staple food items, they said.
“Market is up mainly on local buying. Investors are still looking for bargains. They are waiting to see weather prices would come down further,” said Dimantha Mathew, head of research, First Capital Holdings PLC.
The Colombo stock index ended 0.29 percent stronger at 6,674.32, posting a monthly gain of about 1 percent. It posted its lowest close since May 5 on Tuesday.
Turnover was 597.8 million rupees ($3.91 million) on Wednesday, less than this year’s daily average of 901.2 million rupees.
Foreign investors, who have been net buyers of 19.42 billion rupees worth of equities so far this year, sold shares worth 43.1 million rupees on a net basis.
Dialog Axiata Plc jumped 3.42 percent, while conglomerate John Keells Holdings Plc rose 0.60 percent.
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Sunshine Holdings records strong growth in turnover and PAT, despite challenging market conditions
Sunshine Holdings PLC posted consolidated revenues of Rs. 19.2 billion for the 2016/17 financial year (FY16/17), up 10.3% Year-on-Year (YoY) leading to an improved Profit After Tax (PAT) of Rs. 1.6 billion, reflecting a 33.1% YoY improvement over the previous financial year.
Profitability was bolstered by drastic improvements in the Group’s Agri-business which recorded a 3.2% YoY increase in revenue up to Rs. 6.5 billion despite a 5.1% YoY contraction in Tea revenue in the wake of unfavorable weather conditions during the year. The sector’s Tea Crop was affected by bad weather, even as the company continues to focus on a concerted strategy to grow quality teas to offset reductions in volumes.
“It has been a year of notable challenges in key sectors however we are pleased to note that the Sunshine Group continues to display a resilient and entrepreneurial spirit in the face of such difficulties. During the year, our subsidiaries were able to generate significant growth, particularly as a result of some of our more recent innovations as seen in the performance of our palm oil business and our popular Healthguard franchise,” Sunshine Holdings Group Managing Director Vish Govindasamy stated.
Notably, the Palm Oil sub sector reported an increase of 43.8% YoY for FY16/17 with Palm Oil volumes rising 18.2% YoY. The company managed to obtain a higher price for its CPO during FY16/17, which positively contributed to both top line and bottom line of the Agri sector.
While escalating tea prices helped support a notable recovery in the Group’s tea sub-sector, they also resulted in increased pressure on FMCG margins during the second half of the year. Nevertheless, FMCG revenue increased by 22.5% YoY on the back of both volume and price growth, closing the year with PAT of Rs. 275 million, down 34.9% YoY.
Moving forward the group’s FMCG brand anticipated improved potential in the sector resulting from the scaling up of the ‘Zesta Connoisseur’ brand across Shangri-La properties worldwide and other growth-oriented strategies designed to further consolidate the brand both locally and internationally.
Meanwhile, the imposition of pharmaceutical drug price controls on 48 separate molecules by the Ministry of Health over the last year continued to generate negative ramifications for Sunshine’s Healthcare segment. While remaining as the largest contributor to total group revenue, the segment recorded a 9.8% YoY increase driven by strong growth in retail business.
However the Pharma sub-segment which represents 64% of Healthcare revenue grew at only 6% YoY, due to the impact of reduced prices leading to a sharp 36.9% YoY contraction in PAT down to Rs. 198 million. The company’s Pharma segment is the 2nd largest player in the country with 11.3% share of the market.
Moving forward the group anticipates weaker consumer activity during the in 1HFY18, as increased tax burden weighs on disposable incomes and increased market volatility as a result of severe adverse weather conditions. Despite these conditions, the Group is gearing for above market growth in all business segments as a result of proactive strategies targeting new growth opportunities.
Photo Caption: Sunshine Holdings Group Managing Director Vish Govindasamy
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MTI acquires an equity stake in Carbon Consulting
MTI Consulting, the internationally accomplished boutique strategy consultancy, has announced its acquisition of a strategic equity stake in The Carbon Consulting Company – Sri Lanka’s pioneering provider of integrated sustainability solutions. (www.carbonconsultingcompany.com/)
Founded by Eswaran Brothers, The Rainco Group and The Munasinghe Institute of Development ( MIND ), Carbon Consulting has rapidly gained a reputation as one of South Asia’s leading sustainability solutions providers. With over 70 clients both locally and internationally the company provides a range of sustainability offerings, spanning Carbon, Water, Waste, Energy and Biodiversity, whilst helping Corporates to develop and execute their sustainability strategy.
“Our strategic tie-up with MTI Consulting will help us reach new domains, offer synergized and seamless solutions to clients internationally” said Prof. Mohan Munasinghe (Director of Carbon Consulting), who shared the 2007 Nobel Peace Prize with Former US Vice President Al Gore.
Commenting at the signing ceremony, MTI CEO Hilmy Cader said “Sustainability is no longer a peripheral issue, it very much an integral part of enterprise strategy, with the potential for deep-impact. Our stake and alliance with Carbon Consulting will help us offer strategic sustainability solutions to our growing client base here in Sri Lanka and internationally. Being driven by a very passionate board of directors motivated us to partner Carbon Consulting”
Photo Prof. Mohan Munasinghe (3rd from right) and Hilmy Cader (2nd from right) after the agreement – along with Sanith de Silva Wijeyaratne (CEO), Fazal Fauz (Director) Subramaniam Eassuwaren
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Uber brings driver compliments to Sri Lanka
Makes it possible for riders to acknowledge and encourage good behaviour
Uber, the world’s largest ridesharing app that connects riders with drivers to provide convenient, reliable and affordable rides at the push of a button, today announced the launch of the ‘Driver Compliments’ feature. Through this feature Uber aims to make it possible for riders to positively reinforce good behaviour and in the process humanize the relationship between the riders and driver partners.
“Last month, we launched community guidelines with the objective of encouraging mutual respect, and we are now excited to introduce ‘Compliments’. Our driver partners deliver millions of safe rides every day and in many instances go beyond their call of duty. We hope our riders take a moment to express their appreciation by using this feature. It will encourage our driver partners to do even better!” said Pradeep Parameswaran, Head, Central Operations, Uber India.
Once a rider leaves a compliment, drivers will get a notification in app, taking them to the message and the compliments badge they’ve collected – whether that’s for expert navigation, great music choice or excellent service – because sometimes the little things make all the difference, and 5 stars are not enough.
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Exciting new leasing promo from Commercial Bank and United Motors
Attractive benefits have been announced for businesses or individuals seeking to purchase trucks and buses from United Motors on lease from the Commercial Bank of Ceylon.
A joint promotion by the two companies comprises of reduced interest rates on leases offered by Commercial Bank and discounts of up to Rs 100,000 and three fully free services for the Fuso range trucks and buses sold in Sri Lanka by United Motors PLC.
Valid till 31st July 2017, the offer is available through Commercial Bank’s branches island-wide, with vehicles purchased covered by a one year or 100,000 km warranty from United Motors.
Lease rentals start as low as Rs 2337.16 for every Rs 100,000 for a five-year lease, with three year and four year leases also assured of a reduction on published lease rentals, the Bank said. The Bank will also expedite processing of the lease agreements under this promotion.
“Promotions of this nature benefit SMEs as well as larger businesses to expand fleets or replace older vehicles, and also stimulate the market,” Commercial Bank’s Managing Director/CEO Mr Jegan Durairatnam said. “Commercial Bank has partnered with United Motors in the past for successful leasing promotions, and we expect good results from this latest collaboration.”
The promotion covers the full range of light, medium and heavy duty trucks, crew cabs, tippers and ‘Rosa’ buses on the United Motors inventory and the Bank offers reduced rentals to existing as well as new customers.
The only Sri Lankan bank to be ranked among the Top 1000 banks of the world for six years consecutively, Commercial Bank operates a network of 256 branches and 668 ATMs in Sri Lanka. The Bank has won multiple awards as Sri Lanka’s Best Bank, Best Trade Bank, Strongest Bank, Most Respected Bank from a number of local and international institutions and publications over several years and has also been adjudged one of Sri Lanka’s 10 best corporate citizens by the Ceylon Chamber of Commerce for several years.
United Motors Group (UML), is one of the country`s oldest automobile companies, and has been ranked among the Top 25 companies by Business Today and listed among the 100 Most Respected entities by LMD. UML is the sole distributer for globally renowned passenger and commercial vehicle brands such as Mitsubishi, Fuso, MG, Perodua, Zotye, JMC, Brilliance, DFSK and TVS two wheelers.
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Photo Caption: Commercial Bank Managing Director Mr Jegan Durairatnam (fourth from left) and United Motors Group Chief Executive Officer/Executive Director Mr Chanaka Yatawara exchange the agreement in the presence of representatives of the senior management of the two companies.
Photo Caption: Commercial Bank Managing Director Mr Jegan Durairatnam (fourth from left) and United Motors Group Chief Executive Officer/Executive Director Mr Chanaka Yatawara exchange the agreement in the presence of representatives of the senior management of the two companies.
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LOLC records historic PBT of Rs. 24 Bn
Sustaining its unblemished track record, LOLC Group concluded an excellent year sealed by its strongest financial performance to date. For the year ended 31st March 2017, the Group recorded PBT of 24.4Bn and PAT of Rs. 20.9Bn, an increase of 106% and 124% respectively, compared to the previous year. The consolidated gross income grew by 37% to Rs. 92Bn, while the interest income from financial services grew by 41% to Rs. 55Bn. The total assets of the Group increased to Rs. 641Bn, a growth of 69% over last year.
Despite external challenges, the Group’s resilient financial sector, led by the key players, LOLC Finance PLC (LOFC), Commercial Leasing and Finance PLC (CLC), LOLC Micro Credit Ltd (LOMC) and BRAC Lanka Finance PLC (BRAC) delivered a consistent strong financial performance. The Profit contribution from these companies together with the rapid penetration into microfinance in the Asian region positioned the Group at a strong level of profitability. Of the Group’s profit, 81% was derived from financial services, while its strategic investments into the non-financial sectors., Leisure, Plantations, Construction, Health care, Trading & Manufacturing, complemented the growth. This diverse portfolio spread over a multitude of growth sectors has made LOLC one of the largest conglomerates in the country.
The flagship finance company of the Group LOFC, recorded PBT of Rs. 2.2Bn, with an asset base of Rs. 123Bn, a deposit base of Rs. 81Bn and an advances portfolio of Rs. 91Bn, thus making LOFC one of the strongest and largest NBFIs in the country.
CLC, a turnaround case study since its acquisition by LOLC in 2008, recorded PBT of Rs. 2.2Bn, with an asset base of Rs. 78Bn, a deposit base of Rs. 16Bn and an advances portfolio of Rs. 54Bn.
LOMC, the largest private sector micro credit company in the country, achieved PBT of Rs. 2.5Bn with an asset base of Rs. 63Bn and an advances portfolio of Rs. 50Bn.
LOMC has made its name in the global microfinance arena with its unique business model that sets itself apart from conventional microfinance models. INSEAD business school, France, included LOMC as one of the case studies in their MBA program following an independent study on the company’s remarkable performance, commitment to empowering women and communities, and outstanding social stewardship reflected in their business model. It is also the first and only Sri Lankan Microfinance Institution to be awarded Client Protection Principles Certification from the SMART Campaign.
BRAC achieved significant financial performance in the current year with PBT of Rs. 352.7Mn with an asset base of Rs. 13Bn, a deposit base of Rs. 3Bn and an advances portfolio of Rs. 11Bn. BRAC was able to replicate the LOLC’s micro business model and operational processes effectively in achieving this superior performance.
Seylan Bank, an associate company of the Group contributed well to the Group’s financial performance with a contribution of Rs. 1.4Bn as profits.
The Group’s Insurance businesses, LOLC Life Assurance and LOLC General Insurance, has performed well during the year, positioning itself among the top 10 players in both general and life business in terms of Gross Written Premiums in less than 4 years of operations. The general business contributed Rs. 310Mn as profits, while the Life business recorded a Rs. 320Mn as surplus during the last financial year.
LOLC ventured into the Asian region with its globally acclaimed microfinance model, and the footprint now stands in Cambodia, Myanmar and Pakistan, with a few more strategic locations identified in the pipeline.
PRASAC, the maiden overseas investment of LOLC and the largest microfinance institution in Cambodia, has achieved unprecedented performance since our initial investment in 2007. PRASAC grew its asset base by 260 times to Rs. 210Bn, 90 times in profitability to Rs. 7.8Bn and 100 times growth in its advances portfolio to Rs. 172Bn while maintaining a low 30 days NPL ratio of 1.16%. Anticipating further value addition from this investment, LOLC Group increased its holding from 22.25% to 70% recently. Hong Kong based, Bank of East Asia (BEA) partnered LOLC Group in this transaction and holds 21% of the Company. PRASAC is now set to transition into a fully-fledged commercial bank in due course.
LOLC Cambodia PLC, the 4th largest micro finance institution in Cambodia, made significant contribution to the Group’s profit with Rs. 2.5Bn holding an asset base Rs. 42Bn, a deposit base of Rs. 5Bn and an advances portfolio of Rs. 36Bn.
LOLC Myanmar, the greenfield operation established in 2013, has demonstrated remarkable growth, reaching profitable status in just 4 years since commencement of business. The profit contribution to the Group was Rs. 61Mn with an asset base of Rs. 2Bn, a deposit base of Rs. 460Mn and an advances portfolio of Rs. 1.6Bn. LOLC was the first Sri Lankan organization and the fourth international operator to commence operations in the Myanmar financial sector.
This year, in recognition of LOLC’s distinctive microfinance model, State Government of Pakistan and the Sultanate of Oman, invited LOLC to take up the major shareholding of their joint venture – Pak Oman Bank Pakistan. Through its new partnership with LOLC, Pak Oman Microfinance Bank hopes to capitalise on the specialty of LOLC’s unique Microfinance model which transforms and enables Micro businesses to become Small and Medium level enterprises through sustainable industrialization.
Aligning itself with the growth sectors of the Sri Lankan economy, LOLC Group has also been a catalyst in the development of the Non-Financial Sector through Brown and Company, a 142-year old conglomerate with exposure in leisure, agriculture & plantation, power generation, marine and manufacturing, home and office solutions, pharmaceuticals and healthcare.
The Battery Division performed with its renowned brands such as EXIDE, LUCAS and Dagenite where EXIDE maintained its standing with 58% market share. The Agriculture Division fared well despite adverse weather conditions with its strong brand portfolio including Massey Ferguson and Yanmar, while TAFE tractors, the premier brand in the portfolio, maintained 55% of market share over the financial year.
As a value addition to the Agriculture portfolio, AgStar, one of the largest fertilizer companies in the country, in its product proposition and performance complements well to the Group’s business. The marine division, with global marine brands like Hyundai, Yanmar, Tohatsu and Isuzu, affirmed its position, with 51% market share. Browns Thermal Engineering recorded 54% market share as the only radiator manufacturer in the country. Displaying resilience in the face of testing external market conditions such as low priced imports on veterinary products, veterinary division grew by 34% in sales. The Pharmaceuticals division expanded their product portfolio into the Human Pharma segment with nutraceutical products introduced in the year under review.
Browns hospitals celebrated its second year as the only hospital with an ISO 9001:2015 certification on quality, recorded steady growth in business with significant progress with it’s in house patient care facilities.
In line with the Group’s dynamic investment management process, the Group divested two of its plantations, Agalawatte and Pussellawa, in the year under review with significant returns to shareholders. In the meantime, the restructuring strategy adopted by the Group with the entry into the plantation sector, saw strong operational performance at Maturata plantations. Galoya Plantation continues with its sugar production and is venturing into other value added services in the medium term.
The construction arm of the group, Sierra, too completed a notable year with a profit contribution to the LOLC Group of Rs. 493Mn.
The Group’s Leisure portfolio made steady progress, holding 4 operational hotels: Eden Resort and Spa in Beruwela, Paradise Resort and Spa in Dambulla, Dickwella Resort and Spa in the deep south and Calm Resort in Pasikudah.
The pipeline is promising with international strategic partners onboard, Sheraton partnering with Turtle Beach Kosgoda to be opened in 2017, while Club Méditerranée, France will take over the management in Riverina Beruwala, which once completed will be one of the largest resorts in the country.
This year marked the Group’s first overseas leisure venture, with the North Malé Resort Development project in partnership with State-owned China Machinery Engineering Corporation (CMEC), where LOLC is pioneering the creation of three islands on lagoons in Maldives with one 5-star and two 4-star properties.
LOLC’s other projects in the Maldives are the Nasandhura Hotel and Apartment Complex in the Male city with 135 room keys and 118 apartments, development of a 5-star resort in Bodufaru in Raa Atoll and a 4-star resort in Bodufinolhu in South Ari Atoll.
The Group’s tremendous success over the year in review was validated by recognition from several independent organizations within the business community. The highlight, however, was being the overall Gold Winner of the National Business Excellence Awards, widely recognized as the pinnacle of corporate accomplishment in Sri Lanka.
With the growth momentum witnessed over the last financial year, LOLC Group is poised to embrace opportunities to empower entrepreneurs in Sri Lanka and beyond.
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Entry of India’s largest gas player to revolutionize Sri Lanka’s LNG market
Ongoing economic reforms in Sri Lanka have excited Indian corporate investors, amongst them India’s biggest player in their domestic LNG gas sector who is bidding to enter the Lankan market to supply the new, green LNG -and also to revolutionise the present LNG supply system here as well.
“Ongoing economic reforms in Sri Lanka have awakened our interest here” announced Ramesh Kumar Mutha (Leader of business delegation to Colombo from Confederation of Indian Industry) on 1 June in Colombo. CII’s Mutha was addressing Minister of Industry and Commerce Rishad Bathiudeen in Colombo during his delegation’s call on Minister Bathiudeen. CII is the largest industry chamber in India.
Among CII industry sectors and companies meeting Minister Bathiueeen on 1 June were automibiles (Tata Motors), exports (Mohan Mutha Exports-an Indian govt accredited star export house), energy (Petronet LNG), refractories (Caldery’s India Refractories), tobacco processing (Ankita Overseas Ltd) and water supplies (Shubham Aqualink). The Indian industry and biz-led, not-for-profit Confederation of Indian Industry has more than 8000 members from Indian multinationals, corporates and SMEs and is a leading policy influencer. More importantly CII is a reference point on overall Indian SMEs, multinationals and industry. It has additional 200,000 other member firms as well. CII’s presence is such that it has offices in nine overseas destinations-China, Australia, Bahrain, Egypt, France, Germany, Singapore, UK, and USA. CII also has institutional partnerships with 320 counterpart organizations in 106 countries.
“Reforms are taking place in both Sri Lankan and Indian economies. Both economies are on a growth path” said CII’s Mutha and added: “Ongoing economic reforms in Sri Lanka have awakened our interest here. Specially members of my delegation are keen in partnering in energy, LNG Gas, export links, and water supplies here. We are scouting for investments in Sri Lanka in these sectors. For example, Petronet LNG Ltd, India’s largest importer of liquefied natural gas, has called for a large scale project in Sri Lanka.”
“We welcome Indian investors to our industries” said Minister Bathiudeen and added: “Our Unity government’s aim is to develop our economy towards higher middle income ranks and reforms play a key role in it. Your ndian Investment to Sri Lanka are annually between $ 50 Mn to $70 Mn. Indian investors have a significant role here-for example India was the fifth largest investor in Sri Lanka in 2015. Your investments can increase our two way trade- last year our total bilateral trade was $4.3 billion and our leading exports to India showed results of diversification efforts; main exports from Sri Lanka being spices, nuts, paperboards, ships & boats. More importantly, more than 60 percent of our exports to India were products under ISFTA. New Indian investments here can strengthen this positive trend further.”
Deputy Manager of Petronet LNG Ltd Manik Jhamb explained that Petronet LNG has already submitted their proposal for Sri Lanka entry. “Our proposal for Sri Lanka envisages an operation where we will supply clean LNG in comparison to what is seen in Sri Lankan market today. Investing in it is a win-win for Lankan government, consumers and for us since it is Green LNG and therefore a shift will occur to cleaner LNG in Sri Lanka. More importantly, we will revolutionise the supply system here-in that we will introduce pipe-borne LNG supply to households, thereby removing the need for use of cylinder based method. It’s a large scale project and we are ready for entry upon the go ahead. Petronet LNG is a Joint Venture by the Government of India to import LNG and set up LNG terminals in the country, and involves India’s leading oil and natural gas industry players including GAIL (India) Limited, Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL). The authorized capital of Petronet is $240 million!”
Minister Bathiudeen praised Petronet LNG for its initiatives in Sri Lanka. “Your efforts can strengthen local gas market. I and my officials shall extend our fullest support to you and other Indian investors partnering with us” he assured.
During their June 1 meeting, Minister Bathiudeen and CII’s Mutha also discussed other avenues of industrial cooperation and his previous interactions with the CII.
Minister of Industry and Commerce Rishad Bathiudeen (second from left) meets Confederation of Indian Industry delegation to Colombo on 1 June as Ramesh Kumar Mutha (Leader of business delegation to Colombo from CII–far left) and Deputy Manager of Petronet LNG Ltd Manik Jhamb (third from left) look on.
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Finance State Minister assumes duties
Newly Appointed State Minister of Finance Eran Wickremeratne assumed duties this morning (1st June) at the Finance Ministry.
Secretary to the Ministry R.H.S. Samaratunghe also participated on this occasion.
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Dilmah and Expolanka Lead Private Sector Support for LKI Research
The Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI), Sri Lanka’s leading foreign policy think tank, recently signed a Memorandum of Understanding with the MJF Group, the group of companies that manufactures, exports, and markets the Dilmah brand. The MoU establishes a 3-year partnership between the MJF Group and LKI, to support LKI’s Global Economy Programme. Expolanka Holdings PLC, one of Sri Lanka’s best known conglomerates, has also committed to facilitate quality research by enabling essential research databases for LKI’s research team.
The establishment of the Global Economy Programme at LKI reflects the increasingly key role of economic diplomacy in Sri Lanka’s foreign policy. The programme will focus on international trade, foreign investment, and tourism, and its research aims to ensure that Sri Lanka’s economic diplomacy reflects sound research and innovative insights, as well as the potential and priorities of Sri Lanka’s private sector.
The programme will be headed by Dr. Ganeshan Wignaraja, who will join LKI as Chair of the Global Economy Programme (supported by Dilmah). Dr. Wignaraja’s experience over the last twenty-five years spans the private sector, international organisations, and academia in the UK and Asia. He has held senior roles at the Asian Development Bank, Maxwell Stamp PLC, OECD, the Commonwealth Secretariat, and Oxford University. Dr. Wignaraja’s expertise covers trade and competitiveness, supply chains and SMEs, infrastructure connectivity, development finance, and macroeconomic policy.
Hon. Ravi Karunanayake, Minister of Foreign Affairs and Chairman of LKI, commented on these developments stating, “Commercial diplomacy is vital to Sri Lanka, as a middle-income country that wants to progress to the next frontier of development. It is inspiring to see Sri Lanka’s private sector step up so generously, to support research that can identify new possibilities for Sri Lanka’s trade, investment, and economic growth.”
Hon. Dr. Harsha de Silva, former Deputy Minister of Foreign Affairs and new Deputy Minister of National Policies and Economic Affairs, also expressed his thoughts at the media briefing he chaired at LKI stating, “This is the first time that the Foreign Ministry of Sri Lanka has established a partnership with our own globally recognised brands such as Dilmah and Expolanka to promote economic diplomacy. I’m appreciative of the fact that Dilmah and Expolanka responded immediately to my request for financial partnership in this endeavour. I hope to see other global brands also join in promoting our efforts in economic diplomacy.”
LKI’s Executive Director, Dr. Dinusha Panditaratne, welcomed these recent developments, stating, “LKI is deeply appreciative of these landmark commitments from the MJF Group and Expolanka Holdings, which enable LKI to build an exceptional research team with access to international research databases.” She added that, “LKI is grateful to the Hon. Dr. Harsha de Silva, M.P. and Former Deputy Foreign Minister, for initiating the call for research support from the private sector. The funding will enable LKI to scale up their research activities, and add compelling new voices to shape Sri Lanka’s foreign policy.”
Dr. Panditaratne observed that the generosity of Dilmah and Expolanka for research builds on contributions by other highly respected corporates for programmes and communications at LKI, including from Hemas Holdings PLC, John Keells Holdings PLC, and J. Walter Thompson Sri Lanka. Together, all these companies are pushing the frontiers of corporate citizenship in Sri Lanka, and showing how the private sector here can – like their counterparts elsewhere in the world – support research, programmes, and communications on issues of global importance.
The Lakshman Kadirgamar Institute (LKI) is a think tank focusing on Sri Lanka’s international relations and strategic interests, to provide insights and recommendations that advance justice, peace, prosperity and sustainability. The Institute reflects the vision of the late Hon. Lakshman Kadirgamar by promoting the country’s intellectual profile in foreign policy research and engagement.
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Sri Lankan shares rise for second day in high turnover
Reuters – Sri Lankan shares rose for a second straight session on Thursday, posting their highest close in nearly one week, in high turnover with foreign investors buying into the island nations’ risky assets.
Last week’s floods and landslides that killed over 200 people, however, weighed on sentiment.
The extent of the damage is yet to be assessed, with the country’s main agricultural exports – tea and rubber – hit by the worst torrential rains in 14 years.
Analysts said it is too early to evaluate the real impact of the floods and landslides, though short-term disruptions in rubber tapping and plucking of tea leaves and buds could lead to a decline in output.
Inflation could rise in the short term, especially due to crop damages and distribution difficulties with regard to fresh food produce and staple food items, they said.
“Market lost a little bit of heat in the morning. But with the foreign buying, the market picked up in the latter part of the day,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers.
The Colombo stock index ended 0.29 percent stronger at 6,693.68, its highest close since May 26.
Turnover was 1.03 billion rupees ($6.74 million), more than this year’s daily average of 902.4 million rupees.
Foreign investors were net buyers of 60 million rupees worth of shares, extending the year-to-date net foreign inflow to 19.48 billion rupees worth of equities.
Shares of Ceylon Tobacco Co Plc jumped over 3 percent, conglomerate John Keells Holdings Plc gained 0.60 percent and Commercial Bank of Ceylon Plc, the country’s biggest listed lender, rose 1.04 percent.
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EU provides €300 000 to support aid delivery to flood victims in Sri Lanka
The European Commission is allocating €300 000 (LKR 51 million approx.) in humanitarian funding to Sri Lanka to bring emergency assistance to communities affected by the recent floods.
“This contribution from the EU will allow our partners on the ground to provide relief to the most-impacted families. This is an expression of solidarity from the European people to the people of Sri Lanka”, said Christos Stylianides, Commissioner for Humanitarian Aid and Crisis Management.
The EU-funded assistance will focus on the most pressing needs of the affected families in the immediate aftermath of the floods, including access to clean water and sanitation facilities, the provision of essential household items, as well as emergency shelter.
The EU funding is being made available via the European Civil Protection and Humanitarian Aid Operations (ECHO) through its Small Scale Response mechanism. Additionally, the Commission’s Emergency Response Coordination Centre has activated its Copernicus mapping service upon request from the World Food Programme. The Copernicus maps will focus on the Southern and Western areas of Sri Lanka that have been affected by the rains.
Background – Over 25 and 26 May, heavy rains have been affecting several Southern and Western areas of Sri Lanka, especially the districts of Kalutara and Ratnapura, triggering floods and landslides that have caused massive destruction and loss of lives. According to the National Disaster Management Centre of Sri Lanka, as of 1 June, 203 people have been killed, 95 people have gone missing, more than 73 400 people have been displaced and relocated in 336 safe locations. Over 9 600 houses have been partially damaged or fully destroyed.
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ikman.lk leads Sri Lankan retail sites e-commerce brand rankings
ikman.lk, Sri Lanka’s largest marketplace has been ranked the second most strongest and loved e-commerce brand in Sri Lanka according to LMD’s Brands Annual 2017 Edition published recently.
For the very first time, the 2017 edition features ‘E-Commerce Brands’ identifying emerging technologically innovative domains that have successfully established their presence in the local online space.
Results are based on an independent survey conducted by Brand Lanka Finance, which evaluated each platform against four criteria; screening criterion, potential respondents, sample population and geographical spread – with over 1,700 respondents completing a structured questionnaire rating brands on a 10-point scale. According to the e-commerce league table, ikman.lk has achieved the highest score topping the list when compared to other online retail sites endorsing its premier ranking.
Launched in 2012, ikman.lk was Sri Lanka’s first revolutionary online classified platform providing consumers a convenient, fast and cost effective buying-selling experience. Having grown leaps and bounds since the platform commenced, today ikman.lk’s popularity and beloved status is well established. The ikman.lk brand is a household name; a classified site where buyers and sellers could buy and sell almost anything. Central to its success is the site’s convenience as an online marketplace and the acceptance that the platform works; where sellers achieve success in selling their products and buyers flock to the site in search of products.
Showcasing the platform’s stellar reputation that has grown over the years, in April 2017, ikman.lk welcomed an impressive +2 million unique visitors, +2 million interested buyers, retained 60,000 classified advertisements across all categories, with 150,000 ads live on the site considering ads are automatically deleted after two months. Propelling this phenomenal online success has been ikman.lk’s ability to include multiple value additions and features that encourage repeat visits, transactions and ongoing brand loyalty. Continuously offering focused value for all stakeholders; ikman.lk’s value additions include ikman Deals, Memberships, Buy Now with a delivery option and premium listing offers.
Leveraging its reach, ikman.lk’s expansive categories include cars and vehicles, house and property, household items, electronics and electronic accessories, fashion, health and beauty, hobbies, sports and kids’ items, jobs in Sri Lanka, services, business and industry, education, work overseas, food and agriculture and more.
Additionally, the average time spent on the site is about 15 minutes as measured by Google Analytics, indicating consumer loyalty and strong brand engagement when compared to other online retail websites.
“Being ranked as the leading online marketplace consolidates ikman.lk’s leadership in e-commerce locally. We understand what matters to consumers and have offered the most convenient way possible to find the products they want. Our value additions have also enhanced ikman.lk’s position as the most sought after household brand online,” said Stefan Beekmeyer, Director Marketing & Sales, ikman.lk.
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Sri Lankan shares fall on profit-taking in telecom shares; investors await direction
Reuters – Sri Lankan shares snapped two straight sessions of gains on Friday on profit-booking in telecom stocks such as Dialog Axiata Plc, while investors assessed the impact of deadly floods that hit rubber and tea plantations last week on exchange rate and inflation.
Analysts said it is too early to evaluate the real impact of the floods and landslides caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.
The Colombo stock index ended 0.07 percent weaker at 6,689.07, edging down from its highest close since May 26 hit on Thursday. The bourse fell 0.13 percent during the week, recording its second straight weekly loss.
Turnover was 523.8 million rupees ($3.43 million), less than this year’s daily average of 898.7 million rupees.
Inflation could rise in the short term, especially due to crop damages and difficulties in distributing fresh food produce and staple food items, analysts said.
“Market wants to find a direction, one day it’s up another day it’s down as investors are awaiting for the direction,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.
Foreign investors were net buyers of 66.5 million rupees worth of shares, extending the year-to-date net foreign inflow to 19.55 billion rupees.
Shares of Dialog Axiata Plc fell 2.5 percent while Carson Cumberbatch Plc dropped 5.7 percent and Lanka ORIX Leasing Company Plc ended 2.7 percent weaker.
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