Sri Lanka had earned over US $ 478 million from Tea Exports from January to April 2018, which is only second to the 2014 record of US $ 508.7 million, a latest Tea Market report by Asia Siyaka Commodities PLC points out. Accordingly this marks the highest earning in quarter during the last 4 years since April 2014.
Further country had earned over a high of Rs. 74.1 billion from tea exports during the first four month period in 2018 from January to April 2018, which is up 7% compared to previous year’s figure of Rs. 69.2 billion. Tea exports for January – April 2018 had recorded at 89.7 Million Kilograms against 88.5 Million Kilograms during the same period the year before.
Meanwhile Sri Lanka had shipped 20.8 Million Kilograms of tea in April 2018 alone, up 4% on last year’s figure of 20.1 Million Kilograms. Russia / CIS have absorbed the highest quantity of 16.9 Million Kilograms, but lower than the last year’s figure of 17.8 Million Kilograms.
Iraq has imported 11.7 Million Kilograms against 10 Million Kilograms during the period January – April 2017, which is a gain of 17%. Shipments through Turkey have risen from 9.5 Million Kilograms to 11.3 Million Kilograms. Meanwhile Exports to Iran had however have dropped 13% from 8 Million Kilograms to 7 Million Kilograms.
– By Devendra Francis
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Sri Lanka 2018 First Quarter Tea Export Earnings at a 4 year high
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Panasian Power PLC enjoys stellar FY18 with a 900% growth in PAT
Panasian Power PLC (PAP.N), one of Sri Lanka’s leading green energy solutions providers, posted a profit before tax of Rs. 207.5 million for the year ending 31st March 2018. The company generated Rs. 489 million in revenue for the year against Rs. 205 million the previous year. This was compounded by a healthy gearing for the company at 48%.
The company attributed this stellar growth to the addition of a further 6.3MW to the grid within the financial year as well as to improved operational efficiencies, energy enhancement exercises and prudent cost control practices. With this foundation in place, Panasian intends to further increase its installed capacity in FY2019 through solar and mini hydro power projects.
Furthermore, Panasian was able to record significant growth in revenue through solar power engineering, procurement and construction services (EPC) which constitutes part of their diversification process. The company’s investments in rooftop and ground solar plants will result in an additional capacity of 7MW once on grid beginning from 2018.
This diversification into solar comes on the back of the CEB’s plan to move away from coal as a source of energy generation and become an energy self-sufficient nation by 2030. According to the CEB’s long term power generation plan renewable energy will contribute at least 21.4% towards total power generation by 2025.
In the near term the company will also explore opportunities in wind to eventually create an energy portfolio with equal exposure to all three renewable energy sources. Additionally, Panasian will look at foreign projects, in Africa and South East Asia, with a view to securing dollar revenue streams as well as aggressively reviewing M&A opportunities for future growth. This is in keeping with the company’s target of becoming Sri Lanka’s largest listed renewable energy solutions provider within the next three years.
Commenting on this record financial year Dr Prathap Ramanujam, Chief Executive Officer – Panasian Power, said, “We are pleased with our performance in FY2018. We were able to streamline many of our processes and create greater efficiencies within the company. We also looked at both organic and inorganic growth to increase our power generation as we aggressively sought bottom line growth. We also believe that the long term viability of our projects will ensure that our nation will be on track towards becoming energy independent which will help us reduce our foreign exchange outflows and lead towards wider economic development and a better quality of life for its citizens.”
Panasian Power PLC, which was incorporated in 2002 owns and operates Mini Hydropower Plants and supplies electricity directly to the Ceylon Electricity Board. In 2017 the company diversified into solar energy to meet its revised target of having an energy portfolio of 30MW by 2020.
Photo Captions
- Dr Prathap Ramanujam, Chairman & Chief Executive Officer – Panasian Power
- Pathmanatha Poddiwala, General Manager & Executive Director – Panasian Power
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Sri Lankan equities attracting the interest of a wider international audience
Investment flows from the Scandinavian region to the Sri Lankan stock market have made a noteworthy improvement in recent years, where inward investments have grown by 39% per annum (CAGR) since 2013. Rs. 2.4 billion in foreign purchases recorded from Sweden so far in 2018 marks a new high for investment flows into the stock market from the country, where the inflows recorded within the first five months of the year have bettered the previous high of Rs. 1.6 billion recorded in 2014.
Scandinavian countries collectively have invested Rs. 8.2 billion in local equities in 2018 YTD, 23% of the total foreign purchases during the period. Foreign purchases originating from Norway also most recently recorded an all-time high, with Rs. 7.6 billion worth purchases establishing a new record in 2017, during a year that established new all-time yearly foreign purchase records for 11 countries.
Commenting on emerging investment flows from non-traditional markets, the Head of Market Development at CSE Mr. Niroshan Wijesundere stated “The stock market has seen encouraging foreign investor interest since 2017, particularly from traditional markets. The emergence of non-traditional segments such as the Scandinavian region in particular offers further encouragement, and highlights the value proposition the market offers at present and its ability to attract the interest of investors from around the world. The sustainable way forward for the Sri Lankan stock market is to consolidate on foreign investment strongholds while also actively pursuing new countries that are indicating positive investment trends in Sri Lanka, and this is set to be a main focus in our international investment promotion strategy going forward.”
ASPI steady when compared to emerging and frontier market indices
Meanwhile, the Sri Lankan Benchmark All-Share Price Index (ASPI) has indicated relative stability in 2018 amid a noteworthy overall decline in frontier and emerging markets. The MSCI Emerging Markets Index, which captures large and mid-cap representation across 24 Emerging Markets countries, has declined in 2018 by 1.88%, while the MSCI Frontier Markets Index, which captures large and mid-cap representation across 29 Frontier Markets countries has declined by 8.37% – indicating the downturn markets have faced in 2018. The CSE ASPI is presently in positive territory for 2018, with a positive YTD return of 1.32%. The ASPI has remained positive during a period where certain main indices in other Asian markets have indicated negative returns.
“A feature of the Sri Lankan Stock Market has been the fact that our market is largely not sensitive to developments in global markets, which has often worked to our advantage, especially when attracting fund allocations by frontier market focused foreign portfolio investors, as it gives them an opportunity to diversify. This unique feature and attractive valuations the market offers at present with a market P/E valuation of 10.83, which is significantly lower than our regional peers, is likely to further capture the attention of portfolio investors that are in the lookout for diversification opportunities,” Mr. Wijesundere added.
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Colombo Port volumes up in 1st quarter, fastest growing Port after Singapore
Sri Lanka’s Ports Authority (SLPA), on Tuesday said the Colombo Port received 1.7 million twenty foot equivalent units (TEUs) in the first quarter of 2018, which is a 16.2 percent growth from a year earlier, making it one of the fastest growing ports globally.
Colombo Port’s transshipment volumes grew 20.9 percent to 1.32 million TEUs, with March volumes up 19.4 percent to 477,043.
Only Singapore grew at a faster rate of 16.5 percent among major ports, the SLPA said, quoting a ranking by Alphaliner Monthly, a shipping publication.
Other fast growing ports in the region were Xiamen, China 11.6 percent, Antwerp, Belgium 10.7 percent and Ningbo-Zhoushan, China at 10.4 percent.
Sri Lanka’s Ports Minister, Mahinda Samrasingha said here recently, that the Colombo Port expects to handle 7.0 million containers in 2018, up 12.9 percent from the 6.2 million twenty-foot equivalent units (TEU) handled in 2017 with joint marketing by the Jaya Container Terminal of the SLPA, South Asia Gateway Terminal of the John Keells Holdings and Colombo International Container Terminal (CICT) of China’s CM Ports.
Samarasingha said all three terminals had inked a deal to jointly promote the port.
Sri Lanka’s Colombo Port was ranked the 13th best connected port in the world in 2017, moving up five places from 18, a year earlier, according to an index compiled by Drewry, a UK based shipping and maritime consultancy.
Under South Asia, Colombo Port was ranked the best connected.
– (MENAFN – NewsIn.Asia) Colombo, May 29 (newsin.asia)
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Breath@work – a revolutionary & award winning program soon in Sri Lanka
We all have a one dream; that is to be that Energetic, Healthy, Successful and Happy person who always makes the right decision and meets with success quite often! Now the Sri Lankan audience can realise this dream, with the ‘breath@work’ workshop due to be held in Sri Lanka, conducted by world class Master Trainer and renown Happyness Coach Murali Sundaram. The program is one of its kind, an award winning workshop that transformed more than 50,000 people across 7 countries. In this workshop you will learn 22 techniques to beat stress and procrastination, in order to live a healthy, happy & prosperous life. It will be held on the 9th of June, at the Waters Edge, from 8.00 am to 5.00 pm.
The happyness program will guide you to, gain high levels of energy, maintain a balance in your family life and work or business, gain the concentration skills you always wanted and live a more stress free life.
Murali Sundaram, THE Happyness Coach, Author, Entrepreneur, Key Note Speaker Health Care & Wellness, NLP Trainer/therapist NFNLP USA, Neurofeedback & Biofeedback Trainer, Psychological Counsellor, is a Specialist in Neuroscience-Yogic Science-Management Science & Pharmaceutical Science. A Reiki Master and practitioner of Swara Yoga, Kriya Yoga & Gnana Yoga, will teach you how to train your mind and brain implementing ancient techniques for leading a successful and fulfilling life.
With his experiences in successfully training more than 150,000 Business Leaders, Entrepreneurs and Executives across the world and more than 2000 Directors being the Master Trainer for BNI Asia Pacific on Happiness, Peak Performance, Leadership & Personal Effectiveness he has come to guide you on how to power up your energy source and increase proficiency and efficiency of yourself.
Mr. Murali Sundaram, the best-selling author of more than 7 books is the founder of “Happyness Institute” and the managing trustee of “Fortune Foundation”. He is also, the Co-Creator of Breath@Work – a revolutionary Mindful Happiness program that combines ancient Indian Science, Management Science & Neuro-Science.
Participants of the workshop will be able to experience this program for the first time in Sri Lanka, which features techniques of Real-time measurement of breath-heart-brain using and advanced scientific tool, unique amalgamation of yogic science, neuro science and management science, techniques to anchor resourceful states to manage emotions at the workplace, and sustainable learning and continuous weekly support through ‘TGR Happyness Circle’
We invite all our readers, students, professionals, business owners and your family members to experience this exciting and much needed program to enhance your productivity and learn secrets to leading a happy and successful life as well as maintaining the positive mindset right throughout.
Recommended by Jack Canfield, Author of ‘Chicken Soup for the Soul’ and America’s #1 Success Coach, this is a program never to be missed, so make use of this once in a lifetime opportunity and book your seats today.
The breath@work workshop will be held on 9th June 2018 at the Waters Edge Battaramulla, from 8.00 am to 5.00 pm. Tickets can be collected from Hotel Galadari (The Management Club) or call Ajith on 0753360320 to reserve your tickets. The program also includes lunch and snacks.
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Sunshine Holdings completes FY17/18 with strong consumer and agri performances bolstering Group profits
Diversified Sri Lankan conglomerate Sunshine Holdings PLC reported strong growth in turnover and profitability during the year ended 31st March 2018, with the group’s consumer and agribusiness, sectors leading growth while its sizeable Healthcare segment remained the major contributor to total group revenues.
During the year in review, the group’s top line expanded by 12.4% YoY (Year-on-Year) up to Rs. 21.2 billion with the group’s healthcare sector accounting for 38% of total revenue—despite recording limited growth during the year—followed by its agriculture and consumer sectors which contributed 34% and 25% respectively.
Profit After Tax (PAT) for the period rose by 11.9% YoY up to Rs. 1.8 billion, supported in particular by stronger performances in the agri-sector, while Profit After Tax & Minority Interest (PATMI) grew by 47.1% YoY to Rs. 829 million and earnings per share increased from Rs. 4.13 in FY17 up to Rs. 6.08 per share in FY18.
“It is been another highly successful year for the Sunshine Group, during which time we were able to take several bold and progressive measures to shore up growth prospects for our Agri and consumer businesses including major investments into the dairy subsector,” said Sunshine Group Managing Director, Vish Govindasamy.
Among notable development within the group during this time was the purchase by Sunshine of Estate Management Services (Pvt) Ltd, the holding company for Sunshine’s consumer and Agribusiness sectors. The share buy-back deal from Tata Global Beverages saw Sunshine increase its stake in the company to 60%—compared to 33% held prior—and Pyramid Wilmar increasing its stake from 35% to 40% with the total deal being valued at Rs. 9 billion.
The group’s consumer sector reported revenues of Rs. 5.4 billion, reflecting an outstanding improvement of 27.7% YoY on the back of both volume and price growth. The domestic branded tea business within consumer sold 4.5m kg of branded tea, up 13.4% YoY, driven by their largest brand ‘Watawala Tea’, and their premium brand ‘Zesta’. PAT from the consumer segment grew by 6.7% YoY, to stand at Rs. 294 million for FY18. The increase was mainly driven by the higher sales volumes, despite a marginal increase in finance cost.
Comprised of Watawala Plantations which manages the group’s substantial oil palm business and Hatton Plantations PLC; it’s recently listed subsidiary—following a demerger from WATA—manages the group’s tea business, the Sunshine Agribusiness sector posted 11.8% YoY growth in turnover to close the year with a combined revenue of Rs. 7.3 billion.
During the period in review, the group’s palm oil segment contracted by 5.5% YoY, owing to decreased price in Crude Palm Oil (CPO) throughout FY18. However, this decline was offset by outstanding improvements in the tea sector which posted 16.8% YoY growth during the period in review owing to higher volumes and favourable market prices.
Group’s healthcare sector posted revenue growth of 3.8% mainly supported by its retail sub sector—represented by its rapidly-growing Healthguard franchise—growing 22% YoY. The growth in Healthguard was primarily driven by the wellness and beauty categories, supported by strong brands such as GNC and Ulta3. Healthcare profits expanded by 30.5% YoY to Rs. 258 million, off a lower base where last year results were adversely impacted from a one-off inventory write-down due to NMRA price controls imposed during October 2016. EBIT margin for FY18 increased by 70 bps to 5.1% due to pharma and retail margin improvements.
The pharma sub-segment which represents 67% of Healthcare revenue grew by 4.6% YoY for FY18, due to higher sales volumes. The company’s pharma segment is the second largest player in the country with 12% share of the market (IMS data). Medical devices sub-sector contracted by 6.2% YoY.
“In healthcare, we expect further growth in volumes to offset the impact of reduced prices in our product portfolio while continuous efforts will be channeled towards growing the Surgical and Medical devices sub sectors which we believe holds significant growth potential,” Govindasamy commented further.
Revenue for the renewable energy division amounted to Rs. 248 million in FY18, up 179.7% YoY from Rs. 89 million during FY17 as a result of commissioning the second plant in 3QFY17. The sector, which currently operates two mini-hydro power plants, made a profit of Rs. 48 million for FY18, compared to a loss of Rs. 35 million in the same period last year.
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London Stock Exchange Group Opens New Office In Colombo
London Stock Exchange Group (LSEG) today announces the opening of a new office, ‘Trading House,’ in Colombo, Sri Lanka. The new facility will employ personnel to provide shared services, including technology, data services, and corporate support functions. Through the development of strategic operational hubs, LSEG is well placed to deliver services across the Group’s global operating entities.
The 30,000 square foot facility has capacity to accommodate 300 personnel, and features video conference facilities and a state-of-the-art 70-seat training centre. The new office is in addition to LSEG’s current 30,000 square foot space located at Trace City, Colombo 10. Trading House will be centrally located on Bauddaloka Mawatha, Colombo 4.
LSEG has a significant presence in Sri Lanka, contributing to development of the country’s IT sector and employing some of the best and brightest talent. LSEG values diversity as a driver for development and innovation. The Group recently launched its Diversity and Inclusion programme with the objective of building a culture where all its employees are inspired to share their talents and to catalyse the development of emerging talent in the technology sector.
Dee Liyanwela, Head of LSEG Sri Lanka said “We are pleased to announce the opening of our new office in Colombo, which reflects our ongoing commitment to Sri Lanka. Our new office further supports LSEG’s strategy of developing strategic operational hubs to deliver services to our global operating entities.”
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SLIM Signs MoU with Sadaharitha Plantations LTD
The Sri Lanka Institute of Marketing (SLIM), the national body for Marketing, has been providing professional training, education and qualifications for prosperous marketing careers to countless professionals since 1970. With a presence of nearly 50 years in Sri Lanka, SLIM, has been adding value to the development agenda of the nation, and is committed to the task of continuously exposing the Marketing fraternity to local and global opportunities for the growth and evolution.
SLIM recently signed a Memorandum of Understanding (MoU) with Sadaharitha Plantations LTD, to provide a professional Marketing qualification to the staff members of the leading commercial forestry conglomerate. The programme was initiated by Sadahartha Plantations in recognition of an achievement of 1 Billion in revenue for the year 2017/2018. Mr. Pradeep Edward, the President of SLIM and Mr. Sathis Nawarathna, the Chairman of Sadaharitha signed the MoU in the presence of the senior management of both entities.
Under this MoU, SLIM will offer the PCM (Preliminary Certificate in Marketing) qualification for the Sales & Marketing staff of Sadaharitha Plantations LTD and it will be conducted at the company premises in Ratmalana. The programme generates excellent opportunity for the members of Sadaharitha Plantations to enhance and improve their skills and knowledge with a solid foundation in Marketing from SLIM.
Mr. Pradeep Edward, the President of SLIM and CEO of Lanka Hospitals Diagnostics (Pvt) Ltd. said, “The knowledge that will be imparted to the sales staff of Sadaharitha Plantations LTD through this education programme will be a platform to successfully climb the corporate ladder. Sales and Marketing are very important aspects in business, and contribute greatly to the success of any organisation. The corporate sector in Sri Lanka has placed confidence in SLIM’s customized corporate educational programmes, which effectively contribute towards enhancing the performance of their employees. The educational pathway created by SLIM programmes can take any employee in the corporate sector to the helm of their careers”.
Speaking at the occasion, Mr. Sathis Nawarathna, the Chairman of Sadaharitha Plantations LTD, stated, “One of the critical challenges of today’s world is to find the right people and develop them to achieve the goals set by the organization. By exposing our Sales and Marketing staff to this programme, we hope to develop their skills, knowledge and experience so that they in turn, deliver our promise to our customers, which is to provide them with exceptional services to ensure that their future is secured.”
Mr. Jayampathy Mirando, the Director of Sales & Marketing, noted that when the business sector expands, the Marketing section of a company expands as well, making the needs of skilled employees become a competitive advantage to the employer. “As the driving force of the Marketing fraternity of Sri Lanka, SLIM has the strength to conduct customised professional programmes for the corporate sector and we believe SLIM may develop our staff to think differently and proactively through the PCM programme”, he stated.
“The fact that we have signed agreements with leading corporates over the years reflects our contribution to the development of the Marketing profession as well as advancing Sri Lanka’s economic journey. Further it adds ample proof of the standard and reliability of our educational programmes and their contribution to the corporate world,” said Mr. Sanath Senanayake, the CEO/Executive Director of SLIM. “With these experiences the corporate sector has endorsed the credibility of SLIM’s educational products, thus their relationship with SLIM has grown exponentially,” he added
Sadaharitha Plantations Limited is an organization that contributes towards sustainable forestry by maintaining Mahogany, Teak, Sandalwood and Agarwood plantations with the commitment to continuously improve the effectiveness of the environmental management system by preventing all types of pollution and wastage, whilst complying with all applicable legal and other requirements.
Photo – Official representatives of SLIM & Sadaharitha Plantations LTD
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Maliban listed as the ‘Most Loved Brand’ of biscuits by Brand Finance
Inspiring goodness for over 60 years in Sri Lanka, Maliban Biscuit Manufactories have become a household name among timeless generations. Elevating the brand’s position further LMD Brands Annual 2018 compiled by Brand Finance ranks Maliban among 125 of the ‘Most Loved Brands’ in the country for the third consecutive year.
Every year Brand Finance values over 3,500 brands – across all sectors and geographies worldwide. The results are tabulated and published in the media, with partners such as The Banker, to raise awareness of brands as valuable business assets, which must be managed and invested in. Concurrently Brand Finance’s office in Sri Lanka conducts a research on behalf of LMD annually to list the ‘Most Loved Consumer Brands’ of the country that are actively marketed and managed in Sri Lanka by assessing individual brands by product category.
‘we stand by our founder’s principle of delivering uncompromised quality and taste at all times’- Kumudika Fernando, Managing Director
Commenting on the recognition Managing Director of Maliban Biscuits Kumudika Fernando said, “From the inception of our founder A. G. Hinnyappuhamy’s artisan bakery in Kotahena we have strived to maintain superior quality of our products. In the years that followed our R & D team’s commitment to constantly innovate and produce ground breaking products have allowed us to satisfy the diverse palates of our beloved consumers. By ranking Maliban above other biscuit brands in Sri Lanka once more, our consumers prove that we stand by our founder’s principle of delivering uncompromised quality and taste at all times. This is now carried forth by our present Chairman Rathnapala Samaraweera”.
‘Delighting consumers with continuous innovations is the key for success,’- Ravi Jayawardena, Group CEO
“As a heritage brand Maliban has been able to understand and delight the consumers of all age groups by continuous improvement and innovations over the years with its innovative biscuit range. 2018 witnessed a production of finest biscuits with an innovative twist as we introduced Maliban Real Temptation Coffee – a cookie filled with liquid coffee cream that delivered an instant caffeine boost on the go for the young adult. It was joined by Maliban Golden Creamy Puff and Maliban Faluda Marie which appealed to our teenage consumers. The Maliban ABC Learnies introduced in 2017 is a favourite among the toddlers and pre-schoolers, who are not only able to nourish but also enrich their knowledge with word games owing to its design representing the English Alphabet,” Ravi Jayawardana – CEO, Sales and Marketing of Maliban Biscuits noted.
Committed to provide quality and safety assured products that win the hearts of all age groups, Maliban continuously improves their Quality Management Systems and promote strategic direction that enables the company achieve quality whilst compiling with the international food regulatory standards. Furthermore Maliban invests in their employees by conducting effective trainings that inspire them to be innovative and be step ahead of their peers.
With a global reach of over 35 countries is produces 25 million packs of biscuits every month at their state-of-the-art manufacturing facility, Maliban products are manufactured under stringent hygienic conditions. It is an ISO 9001, ISO 14001, ISO 22000 and OHSAS 18001 certified company which has won Sri Lanka’s prestigious National Quality Award on multiple occasions. With international recognitions such as the ‘Global Performance Excellence Awards’ (GPEA) by the Asia Pacific Quality Organization (APQO) awarded for Large Manufacturing category, the ‘The Superior Taste Award’ with a two star certification from the International Taste and Quality Institute (ITQI) Belgium, a unique international recognition focused on the blind judgment of Chefs and Sommeliers comprising the World Master Chefs Society (WMCS) and the Association de la Sommelier International (ASI); Maliban is the only foods brand in Sri Lanka to have been recognised and awarded such international accolades for taste and quality.
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Hero Cycles plans to hike stake in Sri Lankan bicycle plant
With zero customs duty on exports to India and Europe from Sri Lanka, Hero Cycles is planning to increase its stake in its Colombo-based bicycle unit this quarter. Hero cycles — world’s largest bicycle manufacturer — had purchased 60 per cent stake in BSH Ventures in April 2016.
Hero Cycles chairman and managing director Pankaj Munjal said: “This plant is strategically located to cater to the Europe and Indian markets and plant acquisition is one of the many steps to expand Hero’s presence globally.” While exporting to Europe from India invites a custom duty of 12-14 per cent, Sri Lanka has a special status for exporting to India and Europe at zero duty.
BSH Ventures is an export-oriented firm located in the Biyagama Export Zone of the island nation.
– The Indian Express
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Moody’s: Currency depreciation poses risk to APAC emerging markets with high external funding needs
Moody’s Investors Service says that the currency depreciation witnessed across Asia Pacific in recent months poses risks to the region’s emerging and frontier markets. Sovereigns with high external financing needs are most exposed.
Most currencies in APAC have depreciated against the US dollar this year, with the largest depreciations in the key Asian emerging markets of India (Baa2 stable), Indonesia (Baa2 stable) and the Philippines (Baa2 stable).
“In Indonesia and the Philippines, currency pressure will exacerbate already weak debt-affordability metrics. If associated with capital outflows, tighter financing conditions will have wider repercussions for the balance of payments.” says Anushka Shah, a Moody’s Vice President and Senior Analyst.
“By contrast, India’s low dependence on foreign currency to fund debt burdens limits the risk of a weaker currency transmitting into weaker debt affordability.”, adds Ms Shah.
Moody’s conclusions are contained in its just-released report “Sovereigns — Asia Pacific: Currency depreciation will weigh on sovereigns with high external funding needs”.
Moody’s points out that the extent of depreciation seen this year has been less pronounced than during the taper tantrum in 2013. Also, ahead of the recent financial market volatility, most large emerging markets in APAC have accumulated sizeable reserve buffers, affording some policy space.
The credit implications are more negative for countries with high external financing needs. This includes the frontier markets of Pakistan (B3 stable), Mongolia (B3 stable) and Maldives (B2 stable).
Countries with large current account deficits are particularly vulnerable to a prolonged rise in risk aversion which could see capital outflows that leave them with lower foreign reserve positions. Sovereigns with high external debt obligations relative to their foreign reserves, such as Sri Lanka (B1 negative) and Mongolia, are also particularly at risk.
Prolonged currency depreciation also presents fiscal risks to those frontier economies with substantial foreign currency debt by inflating debt servicing needs, namely Sri Lanka, Maldives and Mongolia.
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Deshamanya A.S. Jayawardena, Former Governor of the Central Bank, Passes Away
The Central Bank, with deep sorrow, wishes to announce the demise of Deshamanya Amarananda Somasiri Jayawardena, former Governor of the Central Bank of Sri Lanka. He passed away at the age of 82, on the 29th of May, 2018.
Deshamanya A S Jayawardena was the tenth Governor, functioning in this position from November 1995 to June 2004. He joined the Central Bank in 1958 and served in the Secretariat, Establishments and Economic Research Departments before being appointed as Director of Economic Research (1977 – 1980).
He served as Assistant to the Governor and Executive Director during 1980-1981 and also functioned as the Alternate Executive Director of the IMF from 1981 -1986. He served as Deputy Governor from 1986 – 1989 and was the Senior Deputy Governor from 1993 – 1994.
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Change Of Leadership At Jaguar Land Rover Europe
Jaguar Land Rover announced that Bob Grace, Regional Director, Jaguar Land Rover Europe, has stated his intention to leave the business at the end of August 2018.
Grace leaves having served the company with distinction for 33 years. He has held several senior sales and marketing positions internationally including UK, Central America, South America, China and Europe.
Felix Brautigam, Chief Commercial Officer, Jaguar Land Rover, commented: “Bob has worked for Jaguar Land Rover for over three decades, with the last eight years being spent in Europe and China. In 2010, he established our successful commercial business in China and in 2015 was awarded an OBE for his service to the industry and in promoting Sino-British trade. I would like to take the opportunity to thank Bob for his dedication and significant contribution to the company.”
Replacing Grace from within the Jaguar Land Rover organisation is Dmitry Kolchanov.
Kolchanov joined Jaguar Land Rover in 2001 and became Managing Director, Russia in 2005. He has held the position of Regional Director of the Overseas organisation since 2010. During this period he has overseen the growth of Jaguar Land Rover’s business across a diverse range of markets around the world. This has included establishing new national sales companies and regional offices as well as supporting the expansion of vehicle manufacturing in India and Brazil.
Felix Brautigam, Chief Commercial Officer, Jaguar Land Rover, added: “Dmitry Kolchanov will bring the extensive operational experience required to further develop our European business. His appointment further demonstrates the strength and depth of talent within our leadership team.”
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First Capital records highest ever PAT of Rs. 1.96 billion in 17/18
First Capital Holdings PLC (The Group) the only listed investment bank in Sri Lanka, recorded its highest ever Consolidated Profit after Tax of Rs 1,960Mn for the year 2017/18, marking a milestone in the investment bank’s history. The results show a significant growth compared to Rs. 232Mn in 2016/17. First Capital, with its impressive 35 year history, has total assets of Rs.35Bn and Equity in excess of Rs. 3.5Bn.
The Group recorded a total comprehensive income of Rs 1,866Mn for the year, a healthy increase from Rs. 238Mn recorded in 2016/17. First Capital’s performance includes recognition of a deferred tax asset amounting to Rs. 897Mn (2017/18) in accordance to LKAS 12.
The Group’s primary dealer contributed Rs. 1,668Mn Profit after Tax (including recognition of a deferred tax asset of Rs. 845Mn) for the year, bolstered by opportunities derived through secondary market activities, the business displayed an impressive performance.
The corporate finance division, mobilized Rs. 24Bn through the structuring and placement of corporate debt securities. Increasing its contribution to the Group’s profitability, the business reported a total fee income of Rs. 80Mn for the year.
The asset management division, increased its assets under management by Rs. 2.1Bn in 2017/18, demonstrating a positive impact to the Group’s bottom line, with a total fee income of Rs. 38Mn.
The Group’s stock brokering unit, recorded an income of Rs. 78Mn for the financial year.
First Capital also made investments to enhance its regional presence through the expansion of its branch network to Negombo; in addition to fully-fledged branches operating in Matara, Kandy and Kurunegala
The credit rating of SL [A-] with a stable outlook for First Capital Holdings PLC and First Capital Treasuries PLC were re-affirmed by ICRA Lanka Limited.
In March 2018, First Capital Holdings PLC declared a dividend payment of Rs. 2/- per share totaling Rs. 202.5Mn for 2017/18.
Photo – Nishan Fernando-Chairman & Dilshan Wirasekara – Director CEO First Capital Holdings PLC
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Endangered Whale Shark fins found in Singapore Airlines Shipment from Colombo to Hong Kong – Report
Whilst the whale shark is considered an endangered species, Shark fins from endangered species including the giant, placid whale shark were found in a Singapore Airlines shipment from Colombo to Hong Kong in May, highlighting the widespread challenges the Chinese territory faces in regulating the trade, a report from Channel News Asia today revealed.
“The 980kg shipment of assorted fins came from Colombo, Sri Lanka via Singapore” the report said adding that Singapore Airlines, which bans shark fin cargo, said in an emailed statement on Wednesday (May 30) that the shipment had been labelled as “dry seafood”.
The report said that Hong Kong permits imports of shark fins, viewed as a delicacy, but shark species listed by the UN Convention on International Trade in Endangered Species (CITES) must be accompanied by a permit.
Hong Kong is the world’s largest trading hub for shark fins and has moved to stop illegal trading.
The report said that Asia director at Sea Shepherd, who discovered the endangered fins within the shipment, had said that “This is another case of misleading and deceiving. The shipment came declared as ‘dried seafood’ so didn’t flag any alarms.”
According to the report, Singapore Airlines had said that it had sent out a reminder to all its stations to immediately conduct sampling checks on shipments labelled “dried seafood” and had blacklisted the shipper. Over 70 million sharks are killed annually, pushing over a quarter of species into extinction according to WWF.
Photo – Bags of shark fins from a Singapore Airlines shipment are seen in Hong Kong, on May 11, 2018.PHOTO: AFP↧
Indian police launch probe against AirAsia boss Tony Fernandes
NEW DELHI (Reuters) – Indian police said on Tuesday they have filed a case against AirAsia Group Bhd (AIRA.KL), the airline’s CEO Tony Fernandes and its domestic entity AirAsia India, over allegations of corruption and breaking rules in obtaining a flying license.
The Central Bureau of Investigation (CBI) accused the airline, some of its employees and third parties of violating India’s foreign direct investment rules while obtaining the license, and of bribing government officials in an attempt to get regulations relaxed to allow AirAsia India to fly international routes.
AirAsia India said in a statement on Tuesday it refuted any allegations of wrongdoing and was co-operating with all regulators and agencies “to present the correct facts”.
The parent group, AirAsia, on Wednesday referred requests for comment to AirAsia India. Fernandes did not respond to requests for comment.
The police investigation is a blow for the budget airline, which has been planning to add new jets to its Indian fleet as it seeks to expand in one of the world’s fastest-growing aviation markets.
In its complaint, the CBI said the airline, Fernandes and others “chose to beat the legal frameworks and policies of the aviation sector of India” and lobbied government officials “to secure mandatory approvals, some of them through non-transparent means”.
The Malaysian low-cost carrier in 2014 launched domestic flight operations in India along with local joint venture partner Tata Sons.
At the time, India’s aviation rules required AirAsia India to operate in the domestic market for a period of five years and have a fleet of 20 aircraft before it was allowed to fly international routes.
India in 2017 relaxed the rules by abolishing the five-year clause.
According to the complaint, Fernandes wanted the airline’s Indian operation to be able to fly internationally from day one.
The CBI has alleged that bribes were paid to government officials “for securing permit for operation of international scheduled air transport services”.
The complaint listed five other individuals and a Singapore-based company, along with unidentified government officials.
A CBI spokesman said it was conducting searches at AirAsia’s offices, including in Delhi and Mumbai, without elaborating.
Fernandes is also under investigation in Malaysia in a dispute with the country’s regulator, the Malaysian Aviation Committee, over the cancellation of 120 flights during the general election period earlier in May.
AirAsia Group Bhd, said in January it was considering an IPO of the Indian operation, which had 14 planes at end-2017 with plans to grow to 60 over the next five years.
Shares in AirAsia slid 4 percent in early Wednesday trade, compared with a 2 percent decline for the wider market.
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Amãna Bank launches doorstep banking
Offering the convenience of facilitating cash deposits at the comfort of one’s home or office, Amãna Bank recently introduced Doorstep Banking services to its customers. Through this initiative both individual and business account holders can now make cash deposits without requiring to visit any branches nor wait in long queues but still have their accounts updated in real time.
Amãna Bank’s Doorstep Banking services are available from 9.00 am to 4.00 pm for Cash Deposits up to Rs. 500,000/- as well as Cheque Deposits in Colombo and Dehiwala regions and will be expanded to other branch localities soon. Customers interested for this service can call the Bank’s hotline on 011 7 756 756 or Visit the nearest branch.
Speaking on this initiative the Bank’s Vice President Retail Banking and Marketing Siddeeque Akbar said “With their busy schedules, customers have minimal or no time to visit their Bank for day to day transactions. Having understood this changing trend, overtime we have introduced many convenient services such as Internet & Mobile Banking, Extended and 365 Day Banking for the benefit of our customers. The launch of Doorstep Banking is another feature to showcase our commitment to bring in greater value and convenience for everyday banking.”
Amãna Bank is the country’s first and only Licensed Commercial Bank to operate in complete harmony with the globally growing non-interest based banking model. With the mission of Enabling Growth and Enriching Lives, the Bank reaches out to its customers through a growing network of 28 branches and 4000+ ATM access points and has introduced an array of customer conveniences such as Internet & Mobile Banking, Debit Card with SMS alerts, Online Account Opening, 365 Day Banking, Saturday Banking, Extended Banking Hours, 24×7 Cash Deposit Machines and Banking Units Exclusively for Ladies.
Amãna Bank PLC is a stand-alone institution licensed by the Central Bank of Sri Lanka and listed on the Colombo Stock Exchange with Jeddah based IDB Group being the principal shareholder having a 29.97% stake of the Bank. The IDB Group is a ‘AAA’ rated multilateral development financial institution with a capital base of over USD 150 Billion which has a membership of 57 countries. Fitch Ratings, in October 2017, affirmed Amãna Bank’s National Long Term Rating of BB(lka) with a Stable Outlook. Amãna Bank does not have any subsidiaries, associates or affiliated institutions representing the Bank.
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Volunteering Youth stand up to raise awareness on Alcohol
Rotaract Club of Wattala in collaboration with the Rotaract Club of Peace City Hatton, The Interact Club of Highlands and The Interact Club of Highlevel International partnered with The Sri Lanka Narcotic Bureau to initiate ‘DISCOVERY’, an Alcohol Awareness project.
‘DISCOVERY’ succeeded in reaching out and creating interactive sessions with over 50 participants who came to witness change in their lives. Special guest speakers, Mr. Dharmakeerthy Bandaranayake Chief Inspector of Hatton and Rtr. Shan Glinton Coordinator at Prajashakthi Project were invited to join in this life changing experience and advice the youth of today on discovering alcohol addiction and the need for discipline. Just like how discovery opens your heart and mind to new experiences, be it through travel, backpacking, going to school or setting your goals on your dream career and continuing to grow in it, Sobriety is also a discovery to a whole new life experience. A road we all can take in the hope of a better life style.
Participants were given feedback forms with questions such as:
1) Can I stop drinking step by step?
2) Can I decrease my drinking from today?
3) Can I do this program for youth in the future?
4) Share this message with friends & family?
5) Continue this program in various places?
The sessions focused on Liquor addiction and its negative effects in the short and long-term that affects a person’s physical, mental, and spiritual well-being. Participants were advised that if left unaddressed, liquor addiction can also lead to serious medical problems or even death. This is the main reason why a project such as this was organized, to empower and help those in need of it and for others to be aware of its risks and repercussions.
Many were inspired to contribute towards the sustainability of a better lifestyle by posting #SayNoToNarcotics on their personal social network platforms.
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Sri Lankan shares fall to 4-month closing low on foreign selling
Reuters – Sri Lankan shares fell for a third straight session on Wednesday and posted their lowest close in more than four months, as foreign investors sold diversified stocks such as conglomerate John Keells Holdings Plc and Aitken Spence Plc.
A weaker rupee, political uncertainty and the recent fuel price hike also weighed on sentiment, with investors mostly keeping to the sidelines awaiting cues about the real impact of the floods that hit the island nation over the past week, brokers said.
Foreign investors sold net 1.11 billion rupees worth of equities on Wednesday, turning the year-to-date foreign trade to a net outflow of 900.9 million rupees worth of shares.
The Colombo stock index ended 0.5 percent weaker at 6,420.98. It fell 0.4 percent last week.
“Market came down on heavy foreign selling on John Keells,” said Dimantha Mathew, head of research, First Capital Holdings.
Analysts said investors are waiting to see the full impact of the floods, which killed 24 people last week.
Shares of John Keells Holdings fell 2.2 percent, Aitken Spence and Company lost 8.1 percent, Sampath Bank Plc ended 1.7 percent weaker and Ceylon Tobacco Company Plc slipped 0.6 percent.
The rupee hit a fresh low of 158.50 per dollar on May 16 on importer demand for the U.S. currency.
Analysts said market sentiment had been dented by concerns over political instability following President Maithripala Sirisena’s decision to suspend parliament last month after 16 legislators from his ruling coalition defected.
On May 8, Sirisena urged his own coalition government and the opposition to end a power struggle to achieve ambitious goals including anti-corruption measures.
Turnover was 1.7 billion rupees ($10.76 million) on Wednesday, well above this year’s daily average of 984.5 million rupees.
“Foreign investors are worried over the rupee depreciation. Currency depreciation is the major worry for foreigners in any country.”
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Prime Finance to raise over Rs. 864 Million via a Rights Issue
Prime Lands owned registered finance company Prime Finance PLC informed to Colombo Stock Exchange in filing that the company’s Board of Directors had resolved on 29th March 2018 to issue 43.2 million ordinary voting shares by way of a Rights Issue in the proportion 6 new ordinary voting shares for every 5 ordinary voting shares. Accordingly the rights will be issued at Rs. 20 per share to raise 864 million in total.
In the disclosure company further added that the funds are raised to fulfill the Core Capital Requirements according to the Finance Business Act direction (Minimum Core Capital ) No. 02 of 2017 dated 23 February 2017 issued by the Monetary Board of the financial regulator – Central Bank of Sri Lanka (CBSL). According to the directive licensed finance companies are rquired to maintain an unimpaired core capital of Rs. 1,000 million (Rs. 1 Billion) by 1st January 2018 and thereafter enhancing it to Rs .1500 million by 1st January 2019, and further Rs. 2,000 million by 1st January 2020 to Rs. 2,500 million by 1st January 2021.
The filing added that as at 31st December 2017 the Core Capital of the company was Rs. 546 million, which was below the core capital requirement of Rs. 1,000 million by 1st January 2018 for which through their letter dated 24th January 2018 CBSL granted an extension up to 30th June 2018 to meet the requirement. Post rights issue the stated capital of the company which is currently at Rs. 508.5 million represented by 36 million ordinary voting shares will be increased to Rs. 1.37 billion represented by 79.2 million shares.
The disclosure further said that majority of the funds raised will be used to enhance loan portfolio via disbursements, and that the rights issue is subject to approval of the shareholders at an Extraordinary General Meeting (EGM) and the entitlement day for the rights will be the end of the trading day of the 18th June 2018.
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