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Daintee acquisition to boost Sunshine’s defensive cash flows: Fitch

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Sunshine Holdings PLC’s (A(lka)/Stable) 100 percent acquisition of Sri Lanka-based confectionery maker Daintee Limited will increase the cash flow of the group’s fast-moving consumer goods (FMCG) segment, which is defensive in nature, as the lower-priced goods are considered essential, Fitch Ratings said. “We believe the largely debt-funded acquisition will have no immediate impact on Sunshine’s rating as we expect its net leverage to remain comfortably below its negative sensitivity of 3.0x,” the rating agency stated. Fitch believes the acquisition is in line with Sunshine’s strategy of restructuring its FMCG segment as a fully-owned subsidiary to pursue its organic and inorganic expansion. “The Daintee acquisition will help Sunshine to expand the product offerings under its FMCG segment, which was previously limited to branded tea retailing,” Fitch Ratings said. Sunshine is the second largest domestic packaged tea retailer, with product offerings across price points. Daintee holds 40 percent of the domestic confectionery market, which includes product segments such as hard-boiled candy and bubble gum, supported by a distribution network of 90,000 outlets, focused mainly on the rural parts of Sri Lanka. Daintee has shown financial resilience over the years to regulatory changes such as indirect tax increases and rising raw material prices. Sunshine believes it has the ability to use its well-established modern trade-channel partnerships and marketing team to gradually help Daintee transition into more premium product categories and diversify its key product offerings, which should help to increase Daintee’s market share and increase cash flows. Sunshine expects the integration process to take around 24 months. Fitch expects Sunshine’s FMCG EBIT contribution to increase to around 21 percent of proportionally consolidated group EBIT after the acquisition, from an earlier forecast of 16 percent in the year ending March 31, 2021 (FY21). Sunshine agreed to fully acquire Daintee on August 6, 2020, for Rs.1.7 billion or an enterprise value/EBITDA multiple of 5.5x, a discount to the current trading average of around 7x for related companies listed in the food, beverage and tobacco section of the Colombo Stock Exchange. The required funds will be raised via its fully-owned subsidiary, Watawala Tea Ceylon Limited, which will subsequently consolidate Daintee into the company. “We raised our forecast for Sunshine’s leverage, defined as net debt (including proportionate consolidation of Sunshine Wilmar Private Limited) to operating EBITDA, after the acquisition to around 1.2x in FY21, from our previous base-case assumption of 0.8x. Sunshine’s net leverage stood at 0.8x at FYE20,” Fitch stated.

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Ceylon Chamber Of Commerce Launches Online Marketplace to Promote Export amid Growing Demand

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The Ceylon Chamber of Commerce with a view to support companies to promote exports from Sri Lanka, entered into a partnership agreement to integrate an “Online Market Place”, developed by Epic Lanka Technologies (Pvt) Ltd. The platform will be integrated to Chamber’s e-commerce portal https://bizinfosrilanka.lk During the signing ceremony held on 7th August, Mr. Manjula de Silva, Chief Executive Officer of the Ceylon Chamber of Commerce, emphasised that with the introduction of this initiative, priority will be given to promote organisations manufacturing sustainable products that would in return provide environmental, social and economic benefits.  “As our global economy grows, it is critical that local businesses can compete in this marketplace. The Ceylon Chamber of Commerce is looking forward to bring solutions forward that expand opportunities for businesses to participate in the global economy,” said Manjula De Silva, CCC / CEO. “By choosing Doxpro Shopex online marketplace model, the Ceylon Chamber of Commerce is truly distinguishing itself and Epic Lanka Technologies is honoured to be working alongside them on this journey,” said Thareendra Kalpage, CEO, Epic Lanka Technologies. “By fully utilizing the capabilities of the Doxpro Shopex Marketplace Platform, CCC is set up for marketplace success.” According to figures collected by the International Trade Centre (ITC) – Geneva from EU countries such as France, Germany, Italy, Netherlands and Spain, it was found that sustainable product sourcing has become a top priority for retailers in these key European Union markets. The emphasis on environmentally-friendly products, fair and ethical trade, and decent jobs in supplier companies have strong consumer support and it is expected that such businesses will increase significantly in the next five years. In addition, Small and Medium Enterprises (SMEs) and women entrepreneurs in Sri Lanka will also be encouraged to register with the Online Market Place to promote their products to Exporters as partners of the value chain.  The Ceylon Chamber of Commerce recently established a Centre for SMEs in a bid to play a more active role in building this dynamic sector of the economy. Local exporters will be able to source products required through the proposed online system and the Chamber will work closely with the Regional Chambers of Commerce and Product Trade Associations to attract suppliers from various parts of the country.  The platform is expected to be launched in October 2020. Product details uploaded to the Online Market Place will be promoted via social media in addition to the Sri Lankan Diplomatic Missions based overseas, Foreign Diplomatic Missions in Sri Lanka and across 130 Overseas Trade Promotion Organisations.   Exchanging of the agreement –  Mr. Manjula de Silva, CEO of   the Ceylon Chamber of Commerce with Mr.  Thareendra Kalpage, CEO of   Epic Lanka Technologies (Pvt) Ltd. with other officials from the two organizations

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HNB and People’s Bank partner with the Sanken Group to finance “Capitol TwinPeaks” together, to completion

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  • Capitol TwinPeaks breaks the traditional method of import financing mould by activating a Usance LC facility, with a 720-day payment settlement period secured through an offshore partner
  • Capitol TwinPeaks is now able to import raw material until project completion in end June 2021 sans foreign exchange outflow from the economy
Hatton National Bank (HNB) and People’s Bank together with the Sanken Group signed an agreement, on 12th August 2020, to ensure balance funding, for the completion of “Capitol TwinPeaks” – the 50-storey twin-tower mixed development project located at Staple Street, Colombo 2. The recently signed partnership stands as a testament with a vote of confidence by the banks in the Sanken Group’s capacity to deliver on its real estate promise for its investors and residents, whilst also acting as a signifier to potential international and local clientele of the strategy Sanken has envisioned to aid in uplifting the nation. Speaking with Managing Director – Capitol TwinPeaks, Rohana Wannigama commented “The Group made the strategic decision to complete ‘Capitol TwinPeaks’ Superstructure well ahead and to order most of the crucial imports, ahead of schedule, especially to mitigate foreign currency fluctuation risks. This organised and precision planning of Sanken, which is deeply rooted in our Japanese-Mitsui DNA has allowed the project to maintain safety, product quality, timely delivery and also to keep cost escalations under control. All balance raw material that are to be imported are getting cleared by relevant local authorities at present, leaving no reason for the work process to slow down. Through the financial partnership with HNB and People’s Bank, we aim to expedite the remaining construction work, whilst also adhering to Central Bank regulations, in order to support the continued growth of the Sri Lankan economy.” As a resultant of post-COVID-19 restrictions imposed by the Central Bank to control foreign exchange outflow from the country, a large percentage of the real estate industry is currently facing delays when establishing letters of credit to import materials for finishes. An additional major hindrance is the freezing of importation of some vital raw materials for the construction sector. However, the Sanken Group has been able to structure a Usance LC facility through their bankers and an off-shore partner to overcome this foreign exchange outflow restriction whilst ensuring an uninterrupted inflow of imported raw materials necessary for Capitol TwinPeaks, the project has been able to vastly reduce the strain on import payments affecting the real estate contribution to national growth. Capitol TwinPeaks has been able to continually inject foreign exchange into the local economy through foreign currency investments made directly by the project’s expatriate and foreign buyers. Concluding, Chairman, Sanken Group – Mahen Weeresekera noted “We commend HNB and People’s Bank for their positive approach to the opportunity to partner with Sanken Group as we go forward in the construction process to provide a completed project. Through our timely decision-making, we are able to ensure a final, quality product for our customers, whilst easing the strain on a currently recuperating economy.” Resulting from the Sanken Group’s forward-thinking, the present and future clientele of Capitol TwinPeaks can be reassured that the Sanken Group’s Contractor and Developer partnership shares the common goal of ensuring the completion of the project, through a multifaceted approach in overcoming financial and material challenges, currently apparent across the globe. Captions – (From left) Deputy General Manager – Wholesale Banking Group, Hatton National Bank PLC – Mr Damith Pallewatte, Senior Legal Officer, People’s Bank – Mrs Deepika Premadasa and Chairman, Sanken Group – Mr Mahen Weerasekara. (From left) Deputy General Manager – Finance, Sanken Construction Pvt Ltd – Mr Sampath Pathirana, Relationship Manager -Project Finance, Hatton National Bank PLC – Mr M.M.A. Ameen, Deputy Head of Corporate Banking, Hatton National Bank PLC – Mr Vijaya Vidyasagara, Assistant General Manager – Corporate Banking, Hatton National Bank PLC – Mr Majella Rodrigo – Hatton National Bank PLC, Deputy General Manager – Corporate Banking, People’s Bank – Mrs K.N. Senaratne, Chairman, Sanken Group – Mr Mahen Weerasekara, Deputy General Manager – Wholesale Banking Group, Hatton National Bank PLC – Mr Damith Pallewatte, Managing Director, Capitol Towers Limited – Mr Rohana Wannigama, Chief Manager – Corporate Banking, People’s Bank – Mrs Sadhana Perera, Senior Legal Officer, People’s Bank – Mrs Deepika Premadasa and Relationship Manager – Corporate Banking, People’s Bank – Mrs K.W.N.Nadeeshani

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Agrithmics, The Digital Enabler of the Agri Industry

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The Digital Innovation Fund, managed by BOV Capital, has Secured Funding of LKR 100 million in Agrithmics (Pvt) Ltd, an agile Sri Lankan Agri-Tech, IoT cloud-based integrated Process Automation and Fintech solution company that digitally enables a variety of agriculture industries ranging from small-hold farms, their larger buyers and plantation companies. As an IoT enabled Agri-Tech solution for the small-hold farmers, factories and regional plantation companies primarily operating in Sri Lanka’s tea industry, Agrithmics digitally integrates their procurement and payment disbursement operation whilst improving efficiency and transparency of its process. The platform also enables a quick and simple payment system as well as ease-of-use and access by farmers and workers. Currently, a small-hold tea farmer who is connected via the Agrithmics platform has quick access to payments instead of the extensive 30 to 40 day waiting period that was the norm previously. Additionally, the Agrithmics platform also adds significant value to B2B agricultural industries such as tea factories and regional plantation companies, who benefit from its end-to-end process automation integration and produce procurement transparency. As of now, Agrithmics has been adopted by some of the biggest players in the tea industry, including 03 elite principal Tea Factory Groups in Sri Lanka, with a base of approximately 40,000 active farmers and workers presently benefiting from the features of this novel platform. “Our vision for Agrithmics is to positively contribute towards digitally enabling Agriculture based industries and its ecosystem. We are not just a tech solution, but we see ourselves as an entity that can understand and improve the lifestyle of the farmer community and its business environment using digital technology. Although our primary focus will be the tea industry, our mission is to enable the service for all farmers across the country,” said Prashanth Premakumar, the Chief Executive Officer of Agrithmics. Mr. Prashanth also revealed that Agrithmics has plans to soon grow beyond the tea sector, showing its potentially strong utility and value across a spectrum of crops. Managed by BOV Capital, The Digital Innovation Fund looks to attract sector-agnostic digital startups that disrupt or transform industries or even create new sectors. The focus is on fields related to SAAS, Big Data, AI, IoT, Fintech, Health tech, Last Mile, etc. Proposals for funding should include a business plan or investor deck, to be submitted to info@bovcapital.com “Post Covid, our investment thesis has not changed much, but we are now looking for startups with tailwind and strong founding teams who are able to pivot quickly. During these unprecedented times we have been working closely with the companies, especially the ones that did not have enough cash runway to survive. We have been helping them to restructure and sustain,” said Prajeeth Balasubramaniam, Co-Founder of BOV Capital.

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Tokyo Cement Gifts Clean Drinking Water to Three Villages in Poonakary

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Three villages in Poonakary (also known as Pooneryn) in the Kilinochchi District were gifted with purified drinking water facilities by Tokyo Cement Group in partnership with Re-Awakening Lanka.  Over two thousand residents in Veravil, Valaippaadu and Veerapandiyamunai, in Ponnaveli Grama Niladhari Division within the Poonakary AGA Division in Kilinochchi will now gain access to clean drinking water thanks to this project.  The project was carried out under the patronage and guidance of the Poonakary Divisional Secretariat. Mr. E. Kugapriya – Director, Tokyo Eastern Cement Co./General Manager, Power & Energy led the Tokyo Cement Team who implemented the water purification solutions.  This included refurbishing three existing wells and installing water pumps and tanks to store water for purification.  St. Anthony’s Hydro Division supported the project by designing a customised water purification solution after studying the hydrology of the area.  Based on the technical evaluation of groundwater quality, three Pure Hydro® water purification solutions with Reverse Osmosis Technology were implemented at the three locations.  As part of this far-reaching humanitarian project, Tokyo Cement will also undertake to maintain and service the water purification plants during the first three years of installation by working closely with a community representative to ensure the sustainable upkeep of the system.  The drinking water facility gifted to the people of Veravil, Valaippaadu and Veerapandiyamunai fulfils a much-needed basic requirement of the thousands of people in the area. Tokyo Cement Group sponsored the project with Appé Lanka, a rural development project by Re-Awakening Lanka involved in numerous social upliftment and village empowerment programs mainly focused on women and children in the North and East.  They helped identify three of the most deserving villages to install water purification plants based on their experience in working in the area for several years.  Commenting on the deep impact this project will create in the lives of people from Poonakary, Mrs. Shaan Corea, Founder/CEO of Re-Awakening Lanka/Appé Lanka said, “In stage 1 of our project, 21 schools in the Poonakary Division were given safe drinking water within 18 months. This was possible because so many people and organizations contributed in numerous ways to make it possible.  If a village like Poonakary stretches out their hand to us, we need to try to do what we can, in any way possible, to help these people.  Today, Tokyo Cement has partnered with us as we embark on stage 2 of “Let them bloom, give them water”, starting with Ponnaveli, by giving them what we take for granted: safe water.” The three villages, Veravil, Valaippaadu and Veerapandiyamunai has over 2000 residents belonging to 500 families whose livelihood is based on fishing and farming.  A fresh-water Well situated in each village was used for cooking and cleaning purposes, fulfilling only a part of the water requirement of the people and that too was not available during the dry season.  Villagers had access to a limited amount of potable water due to high salinity and hardness of ground water along the coastal belt, and had to expend a significant portion of their meagre income to purchase drinking water on a daily basis.  During the rainy season when the bowsers could not reach the villages, people used to collect rain water in plastic containers for their day-to-day use.  In most of these villages it was a common sight to see children whose schools had clean drinking water facilities, carrying at least one bottle of water for their families back home on their way from school.  Given the salinity and hardness of the water, the community ran the risk of getting kidney diseases and other health complications.  The Divisional Secretariat and the Provincial Council were providing an exceptional service to mitigate the situation by supplying water bowsers for the villages. Mr. Salinda Kandapola, Manager Corporate Sustainability at Tokyo Cement Co. (Lanka) PLC., commenting on this benevolent project said, “Water is one of the basic human needs and since most parts of our country is blessed with good quality drinking water, we tend to take it for granted.  However, there are thousands of people who do not have access to potable water to fulfil even their basic requirements.  And due to the scarcity of clean potable water, people are exposed to many water-related diseases such as the Chronic Kidney Disease which has a devastating effect on the lives in certain parts of the country.  Having identified this issue, when Appé Lanka approached us with their request to supply purified drinking water facilities to three villages in Poonakary, we eagerly took up the prospect.  Our sister organization, St. Anthony’s Hydro Division willingly supported us with their expertise in Water Purification Technology which made this project a reality.  We are immensely pleased to have given the people of Poonakary much needed access to life giving clean drinking water.” The gift of clean drinking water for the people in Poonakary in the Kilinochchi District is the most recent social responsibility initiative undertaken by Tokyo Cement Group.  The Company is among the leading blue-chip companies that have deployed several social empowerment projects that have a far-reaching impact on the people of our country.  Tokyo Cement Group’s commitment to social responsibility breathes life through initiatives such as this, by which they successfully integrate social welfare and environmental conservation into its corporate DNA as part of their vision to be the leading partner in Nation-building.

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Baraka Nature Shoppe flagship store launches at One Galle Face

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Baraka, world-renowned for their black seed oil products and range of herbal remedies, recently launched their ‘Baraka Nature Shoppe’ flagship store at One Galle Face. The new outlet, being the latest addition to Baraka’s retail outlets, is the brand’s attempt to capture both local and international markets. The opening ceremony was held on August 7th 2020, celebrating the Sri Lankan brand’s newest venture and was graced by the Directorate of Aberdeen Holdings including Group CEO Mr. Omar Kayaam, who officially declared the store open. He was joined by Group Directors Mr. Rafik Kassim, Mr. Sattar Kassim and Mr. Shafik Kassim, amongst others. The Baraka Nature Shoppe carries the entirety of Baraka’s range of signature wellness products, making it an inviting outlet for those who are invested in healthy living to drop in and indulge themselves. The store is located at K-12, Lower Ground, One Galle Face Mall, Colombo 01.    

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Sri Lanka vehicle registrations slightly down in July 2020

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According to J. B. Securities monthly review, vehicle registrations in July were slightly down from June but remain at healthy levels indicative of existing inventory driving sales. “It is likely that this momentum slows in August due to stockouts in certain categories,” J. B. Securities stated in its latest review. Motor car registrations recorded 1,712 units in July down from 2,032 units the previous month and 2,584 units 12 months ago. Brand new car registrations recorded 272 units in July down from 316 units the previous month and 299 units 12 months ago. Small cars (<1,000 cc) accounted for a 78.7% share followed by medium size cars with a 18.4% share and larger cars with a 2.9% share. Maruti and Zotye were the category leaders with 67 and 66 units respectively followed by Perodua. Financing share was 50.4%. Preowned motor car registrations recorded 1,440 units in July lower than 1,716 units the previous month and 2,285 units 12 months ago. Small cars claimed an 85% share followed by Medium cars with a 14% share. Toyota was the category leader accounting for 971 units (67.4% share) – Vitz 677, Premio 91 followed by Suzuki with 195 units – Alto 82, Wagon R 55. Financing share was 52.8%. Premium motor cars recorded 106 units in July up from 90 units the previous month and 92 units 12 months ago. In the brand-new segment Mercedes Benz accounted for 31 units – C class 12, E class 5, S class 1 followed by Audi with 10 units – A5 6. The preowned category accounted for 61 units, Mercedes Benz 31 units – C class 16 units, BMW 12 units, Audi 18 units – A1 13. Electric cars registrations recorded a mere 3 units in July like 3 units the previous month but down from 5 units 12 months ago. Van registrations recorded 705 units in July lower than 763 units the previous month but higher than 614 units 12 months ago. Mini vans (< 1,000cc) made up the bulk of registrations accounting for 613 units, the balance 92 units were mid-size. Suzuki accounted for 383 units followed jointly by Nissan with 114 units and Toyota with 112 units. Financing share was 63.8% in line with the normal monthly average. SUV registrations recorded 736 units in July down from 800 units the previous month and 671 units 12 months ago. Brand new units recorded 254 units, preowned accounted for the balance 482 units. Crossovers accounted for 685 units; the balance 26 units were SUVs. Toyota was the brand leader accounting for 377 units – Raize 215, C-HR 140 followed distantly by Mitsubishi and Honda with 56 and 55 units each respectively. Financing share was 42.7% in line with the normal monthly average. Hybrid registrations recorded 163 units in July down from 182 unit the previous month and significantly down from 624 units. Motor cars recorded 143 units of which only 2 were new, the balance 141 units were preowned. Suzuki accounted for 81 units – Wagon R 58, Toyota 38 units – Axio 34 units and Honda 10 units. SUVs recorded 20 units – Honda Vezel accounted for 14 units. 3-wheeler registrations recorded 635 units in July down from 1,098 units the previous month and 1,118 units 12 months ago. Bajaj continued to be dominant with a 94.2% share.  Financing share was 66.6% in line with the normal monthly average. 2-wheeler registrations recorded 22,419 units in July down from 25,162 units a month ago and 24,739 units 12 months ago. Honda is the market leader with a 34.8% share followed by TVS in second place in July with a 21.6% share unseating Yamaha with a 18.4% share. The scooter category recorded 15,047 units – Honda with a dominant 46.9% share followed by TVS with 26.9% and Yamaha with 13.6%. Motor bikes recorded 6,982 units – Bajaj and Yamaha with an equal 29% share followed by Honda and TVS each with a 9% share. Electric bikes recorded 27 units. Financing share was 64.9% in line with the last month but down from the normal monthly level of 75%. Pickup trucks recorded 140 units in July down from 128 units the previous month but up from 73 units 12 months ago. Brand new accounted for 106 units, the balance 34 units were preowned – an emerging trend in the pickup segment especially on Toyota Hilux models. Financing share was 57.9%,  higher than the recent monthly figures but in line with 12 months ago. Mini trucks recorded 21 units in July, an all-time low significantly lower than 91 units in the previous month and 144 units 12 months ago. Brand new was a mere 5 units, the balance 16 units were preowned. Tata Ace or Dimo Batta the mainstay of this category recorded a mere 4 units indicative of a stockout at the distributor. Financing share was 66.7%. Light trucks recorded 212 units in July slightly down from 252 units the previous month and similar to 210 units 12 months ago. Brand new recorded 184 units, preowned were 28 units. Mahindra retained its dominance accounting for 173 units (94% share). Financing share was 85.4% in line with the normal monthly average. Medium trucks recorded 314 units in July slightly up from 293 units the previous month and significantly up from 166 units 12 months ago. Brand new recorded 144 units, the balance 170 units were preowned. Isuzu accounted for 213 units (68% share). Financing share was 79.9% in line with the normal monthly average. Heavy trucks recorded 132 units in July significantly higher than 83 units recorded the previous month and slightly higher than 121 units recorded 12 months ago. Brand new recorded 129 units, the balance 3 were preowned. Lanka Ashok Leyland accounted for 76 units (58.9% share) followed by Tata with 33 units. Tippers accounted for 28 units. Financings share was 72.7% in line with the normal monthly average. Buses recorded 41 units in July up from 28 units the previous month but down from 83 units 12 months ago. Brand new accounted for 30 units, the balance 11 units were preowned. Financing share was 70.7% in line with normal monthly average. Hand tractors recorded 266 units in July significantly up from 151 units the previous month and 158 units 12 months ago. Brand new accounted for 238 units, the balance 28 units were preowned. New Lion was the market leader in the month accounting for 104 units followed by Farm Master accounting for 77 units. Financing share was 47.4%. Large tractors recorded 393 units in July marginally up from 384 units the previous month and significantly up from 160 units 12 months ago. Brand new made up the bulk of units accounting for 387 units, preowned made up the balance 6 units. Tafe is the market leader recording 184 units (47%). Financing share was 76.6%.

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Asia Distillates-Jet cash discounts widest in 2 months. Sri Lanka’s CPC seeks 560,000 barrels gasoil

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Asia’s cash discounts for jet fuel widened on Tuesday, to their biggest discounts in two months, as ongoing border and travel restrictions due to the COVID-19 pandemic continued to impair aviation demand. Cash discounts for jet fuel JET-SIN-DIF were at a 81 cents a barrel to Singapore quotes on Tuesday, the widest since June 23. They were at a discount of 73 cents per barrel a day earlier. The commercial aviation sector remains under pressure as travellers are keeping away from flying not just to avoid infections, but also to steer clear of inconveniences such as quarantine periods, and medical tests, trade sources said. Airlines and airports will ask a UN-led task force meeting on Tuesday to recommend countries accept a negative COVID-19 test within 48 hours of travel as an alternative to quarantines that have decimated demand for travel, according to a document seen by Reuters. Refining margins or cracks for jet fuel flipped to a discount of 50 cents a barrel to Dubai crude during Asian trading hours on Tuesday, turning negative for the first time since May 29. There were at 35 cents a barrel over Dubai crude on Monday. TENDERS – Sri Lanka’s Ceylon Petroleum Corp (Ceypetco) is seeking a combined cargo of 227,500 barrels of 500ppm gasoil and 52,500 barrels of 10 ppm gasoil for discharge at Dolphin Tanker Berth and SPM Muthurajawela, Colombo over Oct. 2-3 on a DAP basis. – Ceypetco is seeking another cargo of 280,000 barrels of 500ppm gasoil over Sept. 24-25 discharge. – Both tenders close on August 25 and will remain valid for three days. SINGAPORE CASH DEALS – One gasoil deal, no jet fuel trades OTHER NEWS – Compliance with OPEC+ oil output cuts is seen at 95% to 97% in July, according to OPEC+ sources and a draft report seen by Reuters on Monday, two days ahead of a meeting of key OPEC+ producers to review adherence with their production pact as demand slowly recovers. – Oil prices steadied on Tuesday, hanging on to gains from the previous session thanks to high compliance with production cuts from members of the OPEC+ producer group. Source – SINGAPORE, (Reuters)

    

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‘ARISE SRI LANKA’ poised to take Sri Lanka to the world

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Details of Sri Lanka’s first-ever Telethon in aid of the frontline health workers who are relentlessly battling to contain COVID-19, was presented to the media at Galadari Hotel recently. Welcoming the well-attended gathering, Richard de Zoysa who is the architect of the event, outlined the manner in which the government together with the armed services, the medical and health officials combined to control the pandemic. He said that their exemplary actions deserved global recognition and he was determined to create an avenue where not only all Sri Lankans but the rest of the world would be made aware of how governments could face a crisis of this nature by being decisive and resolute. “ARISE SRI LANKA a Telethon, would be telecast and live-streamed to the whole world in order to portray our success in combating COVID-19”. De Zoysa stressed the fact that without the dedicated support of his core team comprising Sohan Weerasinghe , Benjy Ranabahu , Ivan Alvis together with Noeline Honter and anchored by Thushi Weerasinghe, this project would have been an uphill task. The Primary individual sponsor of this extravagant musical entertainment is Dr. Walter Jasinghe the renowned, iconic personality who resides in California. De Zoysa made special mention of his generous contribution which lessened his burden of bearing the costs. A few other close friends in the corporate sector have also come forward to support the event with noteworthy contributions. The Telethon will be presented by Elite Promotions & Entertainment together with Real and Kiss FM along with Siyatha TV. X’Periments , Mirage and Aquarius will back the artistes who include Damien, Bonnie , Ranil Amirthiah , Bonnie of Crossroads , Rukshan and Melantha Perera, Umara, Corrinne Almeida , Shiyam and Shamistar , April Shockman , Jackie and Ishini Fonseka, Marlon , Shafi and Sherriden , Rajitha of Misty, Treshelle and Mariazelle  will all perform at what will probably the best ever event to be held in Sri Lanka in appreciation of our real heroines and heroes. One of the main purposes of bringing all this talent together was also to complement their performances with images of how our frontline workers combated the pandemic and also to encourage foreign travelers to visit our country when our points of entry open up. De Zoysa who is the Producer and Director of ARISE SRI LANKA is working together with the World Health Organization on this project. Sohan and Noeline who will compere the concert which is limited to just 100 invitees, also performed at the Press Briefing along with up and coming performers April Shockman and Jackie. The highlight of the Telethon will be a song composed very specially for this event by Noeline and Melantha. “These efforts will come together in solidarity to fulfill  one of the main objectives of  this event which is to raise funds for the frontline health workers.  This will be facilitated during the concert and thereafter for a period of 3 days where any person who wishes to contribute can do so . In his vote of thanks De Zoysa acknowledged the Ministry of Defence, Covid 19 Prevention Center , DG  Health Services , the officers at Nelum Pokuna as well as General Manager Galadari Hotel,  Sampath Siriwardena.          

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Uga Chena Huts, the 3rd Best Boutique Luxury Hotel in the World

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Uga Shines big at the Tripadvisor Travelers’ Choice Best of the Best Awards 2020

The world’s largest travel platform has picked a leading Sri Lankan hotel brand to reward in its latest ‘world’s top 25 boutique luxury hotel’ awards. Uga Chena Huts, has won the latest international commendation, being acclaimed as one of the “Best of the Best Hotels” around the world by securing a commendable 3rd place among world’s Top 25 Boutique Luxury Hotels, bringing travel fame to the island nation. Uga Chena Huts, that already has a track record for winning prominent awards such as 14th place among Asia’s Top 25 Small Hotels, 5th place among Asia’s Top 25 Luxury Hotels, 15th place among Asia’s Top 25 Hotels for Romance and 10th place among Asia’s Top 25 Luxury Hotels, is owned by Uga escapes, one of Sri Lanka’s prestigious hospitality groups duly recognized by previous editions of Tripadvisors Traveler’s Choice Awards as well. Sharing his thoughts, Priyanjith Weerasooria, Managing Director – Uga Escapes Management (pvt) Ltd., commented, “We are extremely delighted of these awards. To have been recognized by world’s largest travel platform TripAdvisor as the 3rd best boutique luxury hotel in the world is no less than a triumph for Uga Chena Huts. This achievement is a testament to the fact that we have prioritized customer satisfaction and above all, provided them a unique eco-retreat among one of the most scenic destinations in Sri Lanka.” Tripadvisor is the world’s largest online travel platform. 463 million travelers in 49 markets and 28 languages seek assistance from Tripadvisor each month.  Traveler’s Choice by Tripadvisor is a coveted awards ceremony that celebrates world’s favorite hotels, restaurants and guides traveler’s to world’s most sought-after destinations. Situated in the picturesque surroundings of Yala, Uga Chena Huts consists of 14 luxurious cabins in a 7-acre land accommodated by individual plunge pools in each cabin. These lavish cabins pack spacious living areas, cozy bedrooms, private bathrooms and modern amenities such as twin vanity controls, shaded outdoor decks with built-in private 5m plunge pools. The travelers to Uga Chena Huts walk in to an array of exotic wild life in Yala nature reserve and a variety of indulgent treats including spas, beach outings, outdoor pools and many more. The huts are enveloped in natural surroundings, entertaining the travelers to a tranquil, eco-accommodation experiences. In addition to the famous safari rides escorted by experienced rangers, travelers can also experience leading travel destinations close-by such as Great Basses Reefs, Bundala sanctuary, Kataragama temple premises and many more. Uga Escapes owned by Finco Grop has pioneered the boutique hotel concept preserving natural splendor and indigenous culture to provide a unique accommodation experience. Uga Escapes hotels comprise of Ulagalla in Anuradhapura, Jungle Beach in Trincomalee, Uga Bay in Passikudah, Uga Chena Huts in Yala and Uga Residence in Colombo. Uga’s parent, Finco Grop comprises of many companies in the fields of manufacturing, leisure, consultancy services and automation and IT.  

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Sri Lanka Tourism holds webinar to brief Pakistani top Tour Operators on COVID-19 situation & the way forward for SL Tourism

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Sri Lanka Tourism Promotions Bureau (SLTPB) participated in a webinar organized by the Sri Lankan High Commission in Pakistan to brief the Pakistani top tour operators on the COVID-19 situation in Sri Lanka, and to explore ideas to promote Sri Lanka to high-end travellers of Pakistan. Sri Lanka Tourism Chairperson, Kimarli Fernando attended the discussion along with other distinguished guests including H.E the High Commissioner of Sri Lanka to Pakistan, Vice Admiral Mohan Wijewickrama,(RSP, VSV, NDC), Mr. Dushan Wickramasuriya – Director Marketing (SLTPB) and top Pakistani Tour Operators. H.E Vice Admiral Mohan Wijewickrama made the opening remarks, while Chairperson, Sri Lanka Tourism gave a current update on the COVID-19 situation in Sri Lanka including the steps taken to implement COVID-19 protocols in the country, especially in the hospitality sector. The key points which were discussed included welcoming tourists to Sri Lanka in a COVID-19 environment, creating greater awareness on Sri Lanka in Pakistan as most of the Pakistan travellers visit competing destinations, namely Malaysia, Thailand, Vietnam, Turkey and Nepal, and that Sri Lanka should focus on luxury and honeymoon travellers. Further, it was also discussed to utilize social media effectively when conducting campaigns focusing on group travellers in areas such as pharmaceutical, telecom, insurance, banking, NGOs, MICE, etc and consider the ease of travel with good connectivity, specially requesting to increase the flights between the two countries. Dushan Wickramasuriya, Director Marketing – SLTPB gave an update on travel patterns of Pakistani travellers to Sri Lanka and key products to be promoted in Pakistan. Conducting an orientation on this to the local DMCs and a trade familiarization tour once the airport is open were also suggested. Most Pakistani tour operators highlighted the importance of direct connectivity to Islamabad (Capital of Pakistan). It was also mentioned that Srilankan Airlines will re-commence their direct flights to Karachi once the airport is open and this will be extended to the City of Lahore and Islamabad. The Webinar was concluded with a Q&A discussion in the end and this was the 1st of the webinar series on briefing the Tour Operators globally on COVID-19 situation and the way forward for Sri Lanka Tourism by SLTPB in collaboration with respective Sri Lankan missions abroad. The next set of webinars will be with tour operators from Russia, Germany, UK, China, Japan, the Middle East and Scandinavian Countries. Image Caption: Sri Lanka Tourism Chairperson, Kimarli Fernando and  High Commissioner of Sri Lanka to Pakistan, Vice Admiral Mohan Wijewickrama

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Four-member committee to probe irregularities & review activities of state banks during past 5 years

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The Ministry of Finance says that a four-member committee has been appointed to look into the allegations of irregularities, unproductive measures, and instances where actions were taken contrary to the objectives at the four main state banks of the country, during the last 05 years. Issuing a statement today, the ministry said that the Cabinet of Ministers granted approval to the Cabinet paper submitted by Prime Minister Mahinda Rajapaksa in his capacity as the Minister of Finance, to streamline the state banking system and make it efficient in order to strengthen the national economy, and also to look into irregularities that had taken place within state banks. Accordingly, a four-member committee has been appointed to formally study the irregularities, instances of violating the objectives and procedures of respective institutions, provision of the Banking Act as well as the unproductive activities and transactions at the Bank of Ceylon, People’s Bank, National Savings Bank (NSB), Regional Development Bank (RDB) and affiliated institutions after January 08, 2015. The said committee has also been tasked with submitting recommendations on legal, financial and administrative steps required to prevent any such situation from occurring in the future and also to identify the officials and external parties responsible for financial losses. The committee will also make recommendations to transform the state banking system into a more people-friendly service. The committee is chaired by former High Court Judge Sisira Ratnayake and also includes Charted Accountant Susantha de Silva and retired Additional Auditor General W. Premananda. A representative of the Finance Ministry will serve as the Secretary of the committee. The has been instructed to submit its report within 03 months to the Secretary of the Finance Ministry who in turn will present it to the Cabinet of Ministers.

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LAUGFS Holdings Limited Celebrates 25 Years of Sri Lankan Entrepreneurship

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LAUGFS Holdings Limited, one of Sri Lanka’s largest diversified business conglomerates, celebrates 25 years in business. Its inception was Gas Auto Lanka, a revolutionary business that introduced LPG as an alternate fuel for motor vehicles. Propelled by this entrepreneurial spirit LAUGFS went on to become trailblazers in many industries in Sri Lanka. Currently, the Group is present in 20 industries and have expanded beyond Sri Lankan borders. Its annual revenue exceeds USD 300 million and is backed by an employee carder of 3500. Speaking on the monumental occasion, Mr. W. K. H. Wegapitiya, Group Chairman of LAUGFS Holdings Limited, said, “25 years ago, we began our journey to draw out the infinite potential of our nation and its people. Though we had humble beginnings, we were filled with the determination to achieve greatness. 25 years later, we have touched the lives of millions of Sri Lankans and are a leading name across the industries in which we operate; moreover we have achieved an international presence for the ‘LAUGFS’ brand. We are proud to celebrate 25 years of our LAUGFS family along with our loyal customers and business partners who have supported us on this journey.” Though the origins of LAUGFS was Gas Auto Lanka established in 1995; in its 25 year journey, it evolved and diversified to progress from local to global. In the year 2000, LAUGFS opened the first 24-hour supermarket in Sri Lanka, in 2001, LAUGFS Gas initiated operations, signalling the beginning of rapid growth for LAUGFS across an industry that was formerly a monopoly. With its strategic vision to become a dominant player in the LPG industry LAUGFS set on to create an overarching LPG supply chain; from trading to shipment, storage and transport. In line with this vision the group acquired 3 seafaring vessels; Gas Challenger, Gas Success and Gas Courage which are used in the transportation of LPG. Moreover LAUGFS owns the largest LPG Transhipment Terminal in South Asia, located within the Hambantota Port and operated under LAUGFS Terminals. Between 2004 and 2010, the group continued to establish a multitude of strategic business units across multiple industries. LAUGFS Petroleum, LAUGFS Corporation (Rubber), LAUGFS Salt & Chemicals and JADE Restaurants were founded during this time frame. In 2008 Eco Sri began operations in cooperation with the Government of Sri Lanka to engage in vehicle emission testing across the island, with the forward thinking vision of a greener tomorrow.  LAUGFS Lubricants became Sri Lanka’s first local lubricant brand, making it another industry first for LAUGFS. “We wanted to be more than just another national corporate entity in the market; we wanted to truly drive the nation forward and extend the innovative zeal of LAUGFS across Sri Lanka and internationally. Our journey has been long and challenging but after two and a half decades of dauntless growth in the face of adversity, we are thrilled for LAUGFS’s prospects over the next 25 years.” said Mr. Thilak De Silva, Group Deputy Chairman of LAUGFS Holdings Limited, reflecting on the history of LAUGFS. Setting its sights to the horizon, the group continued its expansion in the years that followed, with the establishment of LAUGFS Gas Bangladesh in one of the largest emerging energy markets in the region and SLOGAL Energy DMCC in Dubai as the energy trading arm of LAUGFS. Locally the group continued to extend its frontiers in the energy industry through its launch of LAUGFS Power, now operating multiple hydro and solar power projects in Sri Lanka, including the operation of the largest solar power plant in the country. LAUGFS entered the Leisure industry with LAUGFS Leisure and the establishment of Anantaya Resort and Spa Chilaw, earning hallmark accolades for customer excellence which would go on to be achieved by its sister location; Anantaya Resort & Spa Pasikudah. The group is poised to move into a new era of revolutionary growth. Group Managing Director and Group Chief Executive Officer of LAUGFS Holdings Limited, Mr. Piyadasa Kudabalage, said, “The history of LAUGFS has always been driven by innovation, entrepreneurship and the willingness to take risks. As we work towards the future, we will continue to grow with these tenants at the core of our organization and further enhance our operations towards empowering the growth of the nation.” In its pursuit of innovation, LAUGFS explores opportunities to enter into new industries and market segments as it plans its future growth strategies. Recently, the group has expanded into the healthcare industry through its establishment of LAUGFS Life Sciences Private Limited and LAUGFS Pharmaceuticals Private Limited. LAUGFS Life Sciences has initiated its Intravenous (IV)-saline project with plans to develop other IV-related products in the future and LAUGFS Pharmaceuticals will be developing a range of pharmaceutical products. Similarly, the group’s strategic business units are consistently exploring new prospects and technologies for escalating and enhancing their operations as the entirety of LAUGFS gears itself for the next trajectory of its evolution.

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World Vision, Citi Foundation support anti-body testing efforts

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As a part of its response towards COVID-19 prevention, World Vision joined hands with Citi Foundation to provide 1,100 ELISA (Enzyme-linked Immunosorbent Assay) antibody testing kits to the Centre for Dengue Research of the Sri Jayewardenepura University.

These testing kits will help us identify COVID-19 patients who have developed antibodies and facilitate their discharge from hospitals sooner,” says Dr. Chandima Jeewandara, Director Operations of the Allergy, Immunology and Cell Biology Unit. “The medical professionals can now determine whether a person’s body produced an antibody response to COVID 19 —indicating past exposure to and recent infection by the novel coronavirus”.

 

“When patients are diagnosed using the anti-body testing method, medical professionals are able to gauge the patient’s condition and help them understand the risk factors. This, therefore, allows doctors to discharge the ones who are ‘anti-body positive’ deeming them as ones who don’t require in-house medical treatment,” he adds, “This, in turn, helps prevent hospitals getting filled up while helping medical officers pay more attention to the patients who need immediate medical assistance.”

 

“This gift reduces the burden on the healthcare system tremendously. It means a great deal for us as a nation, to every single person who is infected with the virus, the ones who are getting a diagnosis for the virus and the loved ones who are awaiting their quick recovery,” says Prof. Neelika Malavige, Director for Centre for Dengue Research, of the University of Sri Jayewardenepura.

 

World Vision and Citi Foundation formed a partnership in May this year, in a bid to improve preventive measures among the frontline healthcare workers and the most vulnerable families in 16 districts across the country. The contribution by Citi Foundation amounting to USD 100,000 has so far facilitated the distribution of essential medical equipment to five main hospitals and provided Personal Protective Equipment (PPE) to frontline healthcare workers and hygiene and disinfectant supplies to the most vulnerable households.

“World Vision has been relentless in its efforts to create awareness on preventive measures among the communities, providing necessary personal protective equipment to support the frontline healthcare workers as part of the COVID -19 response. We are very excited that the partnership we formed with Citi has now paved the way to provide anti-body testing kits to the Sri Jayewardenepura University, marking a significant stride towards supporting the health sector of the country”, added the National Director of World Vision Lanka, Dr. Dhanan Senathirajah.

Reiterating that this contribution reinforces Citi’s commitment to Sri Lanka and the wellbeing of the nation, Head, Corporate Affairs, Shanaka Waduge said that the timely contribution is fulfilling a current need of the medical institution of the country to ensure that the virus is being curtailed. She also added that the Foundation is glad that the project is being carried out in partnership with World Vision given its impressive record in Sri Lanka.

World Vision is a development and advocacy organization and works in 33 locations in 16 Districts across Sri Lanka directly impacting nearly 100,000 vulnerable children and their families.

 

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Seylan Bank opens new off-site ATM at Sri Lanka Technological Campus

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Seylan Bank recently declared open an off-site ATM at the Sri Lanka Technological Campus (SLTC), Ingiriya Road, Padduka, continuing their commitment towards supporting the financial needs of their customers. The new ATM was ceremonially opened on the 17th of August by Chief Guest Mr. Ramesh Jayasekara- Senior Deputy General Manager, Seylan Bank. The ATM will provide convenience to students who are studying at SLTC, ensuring easy access to those who wish to carry out cash withdrawals at any given time. This expansion will mark the 216th ATM opened by Seylan Bank, further strengthening their ATM network across the island, enhancing customer convenience. Image Caption: Mr. Ramesh Jayasekara – Senior Deputy General Manager- Seylan Bank together with Mr. Ranjith Gunawardana – Director Operations- SLT Campus, Padukka

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50% probability for rate cut to discourage LCBs from using SDFR facility: First Capital Research

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Considering the previously provided 100bps rate cut, First Capital Research believes that there is a modest likelihood that the Central Bank of Sri Lanka (CBSL) may provide a rate cut to ensure the continued supply of credit at a low cost of funding to accelerate the GDP growth. “As per our view, CBSL either can choose to hold policy rates steady or cut by a 25bps or 50bps while, hike is off the table due to the lackluster economic growth. We believe that there is a 40% probability for a 50bps rate cut and 10% probability for a 25bps cut to discourage the Licensed Commercial Banks (LCBs) from using the Standing Deposit Facility Rate (SDFR) facility,” the research firm said in its latest report. Moreover, the research firm believes that there is a 50% probability to hold rates due to four successive rate cuts in the past. The next CBSL’s monetary policy review is scheduled to be announced tomorrow (20) at 7.30 a.m. For the first time in history, the Central Bank of Sri Lanka (CBSL) reduced its policy rates in four consecutive instances providing a total of 200bps rate cuts since March 2020. “With the above initiatives, market interest rates have declined although it hasn’t reflected in private credit growth. There can be a possibility that this time CBSL prefers to conserve its policy space and use it judiciously in the latter part of the year, reflecting a lesser probability of further rate cuts at the upcoming review,” ” the research firm stated. Meanwhile, with the expected recovery in economic activities, First Capital Research believes that monetary policy easing can manifest in demand-pull inflation. “At current levels, inflation, as measured by CCPI, is at 4.2% in July 2020 well within the CBSL’s targeted inflation framework. However, if private credit picks up at an accelerated level and if import restrictions are relaxed towards the later part of the year, that can create a situation of an overheated economy thus creating inflationary pressures,” the research firm said.      

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Powerful New Samsung Note20 and Note20 Ultra Now Available for Pre-order at Dialog Axiata

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Dialog Axiata PLC, Sri Lanka’s premier connectivity provider and the first and only network to offer Voice over Wi-Fi (VoWiFi or WiFi Calling), VoLTE (Voice over LTE) and eSIM service in Sri Lanka for the latest flagship device range, Galaxy Note20 and Note20 Ultra, announced pre-order capabilities for the all new range of Samsung Galaxy Note smartphones. Dialog’s offering of both 4G VoLTE and VoWiFi capabilities are the ultimate accompaniment to the latest Samsung Galaxy Note range to deliver superior call and video-call quality. Additionally, once the Dialog 5G network is commercially rolled out, users will get the opportunity to experience the power of 5G through this 5G enabled device range, designed to be a computer suite in the form of a mobile device, with next-level gaming, pro-grade 8K camera and editing suite. The Samsung Galaxy Note20, available in 256GB, is priced at Rs.207,990/- while the Samsung Galaxy Note20 Ultra available in 256GB is priced at Rs.260,990/-. Customers can now pre-order the impressive Galaxy Note range from Sri Lanka’s number one network via www.social.dialog.lk/note20 till the 27th August, and receive free Galaxy Buds Live for Samsung Galaxy Note20 Ultra and a Samsung Galaxy Buds+ for the Samsung Galaxy Note20, and easy payment plans with leading credit cards – up to 24 months installments with 0% interest, along with the added benefit for Dialog Club Vision members to redeem standard loyalty discounts on device purchases.

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CB continues its accommodative monetary policy stance

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The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 19 August 2020, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 4.50 per cent and 5.50 per cent, respectively. The Board recognised the necessity to continue the accommodative monetary policy stance, particularly as market lending rates are yet to reflect the full passthrough of policy easing measures implemented thus far. The Board decided to adopt targeted measures to reduce specific interest rates that it considered to be excessive, which would help marginal borrowers. The Board anticipates a further reduction in overall market lending rates, thereby encouraging borrowing for productive economic activity and reinforcing support for COVID- 19 hit businesses as well as the broader economy, given the conditions of subdued inflation.   Global monetary easing continued amidst the rapid spread of the COVID-19 pandemic The rapid spread of the COVID-19 pandemic and related containment measures have resulted in a significant downturn in the global economy in the first half of the year. In response, almost all central banks of advanced economies as well as emerging market and developing economies continued to implement monetary easing measures, alongside fiscal stimulus by respective governments, in support of the recovery of economic activity.   Domestic economic activities, which were adversely affected by the COVID-19 pandemic, are expected to recover in the second half of 2020 As per the provisional estimates released by the Department of Census and Statistics (DCS), the Sri Lankan economy contracted by 1.6 per cent in the first quarter of 2020, contrary to the expectations of the Central Bank. As per the available indicators, the adverse impact of COVID-19 on economic activity during the second quarter of 2020 is likely to be substantial. However, a faster rebound of economic activity is expected, especially in the fourth quarter of 2020, supported by improved political stability, the resultant improvement in business confidence, and the lagged impact of monetary and fiscal stimulus. This expected rebound in the fourth quarter is essential for the country to record a positive growth rate during this year. The enhanced focus on domestic production for import substitution as well as to export is expected to drive near term growth, with potentially significant implications on the longer horizon. Sustaining the growth momentum beyond the near term would require reforms to address structural issues in the economy.   External sector has improved with the support of proactive policy measures The external sector continued to demonstrate resilience, reflecting the impact of prudent measures implemented amidst the COVID-19 outbreak. The trade deficit has narrowed during the first half of 2020, as the contraction of imports outpaced the contraction of exports, supported by import restrictions and subdued global petroleum prices. Some improvement in workers’ remittances was observed in June, in contrast to the declining trend observed since March 2020. However, the tourism sector, which has been forced to rely on domestic tourism for its survival in the face of the pandemic, is poised to witness a sizable decline in foreign exchange earnings in 2020. Depreciation of the Sri Lankan rupee against the US dollar has been limited to 1.3 per cent thus far during the year, following a significant depreciation recorded during March-April 2020. With the Central Bank buttressing its reserves through foreign currency purchases from the market and foreign currency swaps with the Reserve Bank of India and licensed banks, gross official reserves were estimated at US dollars 7.1 billion by end July 2020, providing an import cover of 4.7 months.   No demand driven inflationary pressure is expected during the forecast horizon Headline and core inflation, based on the Colombo Consumer Price Index (CCPI) accelerated marginally in July 2020, yet remaining at relatively low levels. The National Consumer Price Index (NCPI) based headline and core inflation also accelerated in June 2020, mainly reflecting the impact of food inflation. In spite of such short term fluctuations, inflation is expected to remain broadly within the desired 4-6 per cent range in the near to medium term, with appropriate policy measures. Slow growth of credit to the private sector is expected to recover gradually in the period ahead Growth of credit extended to the private sector by commercial banks decelerated in June 2020, year-on-year, while the outstanding volume of credit contracted during June 2020 for the second consecutive month, in spite of the large surplus liquidity in the market. However, a gradual recovery in credit extended to the private sector is expected in the period ahead, driven by increased economic activity, improving business sentiment with enhanced political stability, declining market lending rates and rising credit disbursement on account of concessional credit schemes for businesses affected by the pandemic. Credit to the public sector, in the meantime, soared in recent months reflecting the government’s heightened funding requirement, thereby causing a notable expansion of broad money thus far in 2020. The impact of monetary easing measures is reflected in the recent notable decline in market interest rates A noticeable decline in market lending rates was observed in July 2020 in response to the series of policy and regulatory measures adopted by the Central Bank thus far in 2020. With the gradual reduction in market lending rates, interest rates applicable on new lending by commercial banks, on average, have now reduced to single digit levels. The Average Weighted Prime Lending Rate (AWPR) has also declined significantly in recent weeks. While the recent decline in overall market interest rates is encouraging, some market lending rates still remain excessive, affecting marginal borrowers in particular. Overall market lending rates are expected to decline further, commensurate with monetary easing measures adopted in the recent past, enhancing the affordability of credit, which is imperative to support the recovery of economic activity in the period ahead. Policy rates maintained at current levels, while further measures to promote lending introduced In consideration of the current and expected macroeconomic developments as highlighted above, the Monetary Board, at its meeting held on 19 August 2020, was of the view that the current accommodative monetary policy stance is appropriate, and decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 4.50 per cent and 5.50 per cent, respectively. Considering bank lending rates of certain financial products which continue to remain high, the Board decided to revise downward the caps on interest rates on credit cards to 18 per cent per annum, on pre-arranged temporary overdrafts to 16 per cent per annum and on pawning facilities to 10 per cent per annum. Moreover, the Board was of the view that penal interest rates need to be capped at 2 percentage points over the regular interest rates charged on the relevant credit facility. Directions to effect these regulated interest rates will be issued shortly. The Central Bank will continue to monitor domestic and global macroeconomic and financial market developments and take further measures to support the economy to return to a higher growth path without delay, given subdued levels of inflation.  

Policy rates and SRR unchanged.

Standing Deposit Facility Rate (SDFR) 4.50%
Standing Lending Facility Rate (SLFR) 5.50%
Bank Rate 8.50%
Statutory Reserve Ratio (SRR) 2.00%
   

Regulated interest rates revised downwards.

Maximum interest rate on Credit Cards 18.00%
Maximum interest rate on Pre-arranged Temporary Overdrafts 16.00%
Maximum interest rate on Pawning Facilities 10.00%
Penal interest rate over the regular interest rate 2.00 percentage points

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Maximum interest rate on credit cards reduced to 18%

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The Central Bank of Sri Lanka (CBSL) has revised the regulated interest rates for Credit Cards, Pre-arranged Temporary Overdrafts, Pawning Facilities and Penal interest rate over the regular interest rate. Considering bank lending rates of certain financial products which continue to remain high, the Board decided to revise downward the caps on interest rates on credit cards to 18% per annum, on pre-arranged temporary overdrafts to 16% per annum and on pawning facilities to 10%per annum. Moreover, the Board was of the view that penal interest rates need to be capped at 2 percentage points over the regular interest rates charged on the relevant credit facility. The Monetary Board of the Central Bank of Sri Lanka, at its meeting held yesterday (19 August 2020), decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 4.50% and 5.50%, respectively. The Board recognised the necessity to continue the accommodative monetary policy stance, particularly as market lending rates are yet to reflect the full passthrough of policy easing measures implemented thus far. The Board decided to adopt targeted measures to reduce specific interest rates that it considered to be excessive, which would help marginal borrowers. The Board anticipates a further reduction in overall market lending rates, thereby encouraging borrowing for productive economic activity and reinforcing support for COVID- 19 hit businesses as well as the broader economy, given the conditions of subdued inflation.  

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SL will halt oil palm cultivation: President

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Delivering the Policy Statement of the new government at the ceremonial sitting of the Parliament today (20), President Gotabaya Rajapaksa stated that Sri Lanka will halt the cultivation of oil palm in the country. “Currently, the income from tea, coconut and rubber industries is not at a satisfactory level. We will commence operations to develop tea plantations and at the same time, the government will assist the small and medium scale tea estate owners as well. We will also encourage planting of new coconut saplings. In order to enact a reasonable price for rubber, local rubber industrialists will be encouraged to utilize local rubber. Plantation of palm oil trees will be stopped completely,” he said. He also stated that the government will provide opportunities to generate substantial foreign exchange by providing a stable price to the farmers through value addition to agricultural products and exporting them. Full text of the Policy Statement delivered by President Rajapaksa at the inaugural session of the Ninth Parliament: Honourable Speaker, Honourable Prime Minister, Honourable Leader of the Opposition, Honourable Ministers, State Ministers, Honourable Members of Parliament, At the outset I would like to congratulate newly appointed Speaker Hon. Mahinda Yapa Abeywardene. I also extend my congratulations to Deputy Speaker Hon. Ranjith Siyambalapitiya and Deputy Chairman of Committees Hon. Angajan Ramanathan as the as well as all the elected Members of Parliament. The election held on August 5th marked a turning point in the history of Parliamentary Elections in Sri Lanka. We asked the people to give us a 2/3rd majority to form a stable government. First of all, I would like to thank and extend my gratitude to all the patriotic Sri Lankans for giving Sri Lanka Podujana Peramuna and its allied parties a historic and resounding 2/3rd majority for the first time in the history in an election held under the Proportional Representation System. Universal suffrage is a democratic right that we must all respect and uphold. Therefore, I would like to take this opportunity to thank all Sri Lankan voters who exercised their voting right in this election. During the Presidential Election held last November, over 6.9 million people gave me a decisive mandate, placing a very high confidence in me. So far through my actions, I have proved that I will uphold the promise that I will not violate the trust they placed on me. The period between the Presidential Election and the Parliamentary Election has been very challenging for us. What we inherited was an economy that had collapsed. Since we did not have a majority in Parliament we were compelled to function with a minority government. In addition, we had to face the COVID-19 pandemic that disabled the entire world during that period. At a time when even the most powerful countries in the world were left helpless in the wake of COVID – 19 catastrophe, we were able to successfully face the challenge. Even foreign nations praised our efforts to prevent the spreading of the pandemic. The historic mandate received by Sri Lanka Podujana Peramuna has proven that people are impressed with the way we have governed the country during the past 9 months despite various obstacles. People appreciate the change taking place in the political culture of this country. As representatives of the people, we always respect the aspirations of the majority. It is only then that the sovereignty of the people can be safeguarded. In accordance with the supreme Constitution of our country, I have pledged to protect the unitary status of the country and to protect and nurture the Buddha Sasana during my tenure. Accordingly, I have set up an advisory council comprising leading Buddhist monks to seek advice on governance.  I have also established a Presidential Task Force to protect places of archeological importance and to preserve our Buddhist heritage. While ensuring priority for Buddhism, it is now clear to the people that freedom of any citizen to practice the religion of his or her choice is better secured. The Government has paid special attention to the protection of national heritage, culture and our identity as well as the protection and promotion of performing arts and folk arts. When we took over the government, the confidence of the people in the security of the country had been severely dented due to the Easter Sunday attacks that occurred in 2019. Establishing firmly that the prime policy of our Government is national security, we have restructured the security apparatus and intelligence services, eliminating the fears of the people thereby restoring the security of the country. We have re-created an environment where any citizen can live freely without any fear for the safety of themselves and their families. As I have pledged, the launch of the methodical mechanism to protect the people against social evils such as the activities of the underworld and the drug menace that have been a hindrance to the day-to-day lives of the people has also increased the confidence of the public. Accordingly, a virtuous and a law-abiding society is emerging as we promised. We are working towards a significant transformation of the political culture of this country. After I assumed office as the President, changing the existing system, a methodical procedure was introduced to appoint heads of Government institutions whereby qualifications of prospective appointees were examined through a panel of experts. A well-experienced team of professionals, entrepreneurs and academics was appointed instead of relatives, acquaintances and followers. This policy will continue in the future as well. We also took measures to build a production economy. Paddy farmers were given a higher guaranteed price for their products. We took steps to protect local farmers by halting importation of exportable produce for re-export as well as banning importation of crops that could have been grown locally. Farmers were provided with required fertilizer free of charge. People were encouraged to re-cultivate abandoned lands throughout the country. Through all these, we provided a new lease of life to the agricultural sector in this country. After we assumed office, we provided tax concessions targeting local entrepreneurs. Interest rates were brought down to encourage businesses. Competitive imports were restricted in order to protect local entrepreneurs and industrialists. It is clear that people enthusiastically supported us in this election due to the trust we have been able to build in them in this manner. We will continue to serve the people in a manner that affirms this trust. It is equally important to precisely interpret the mandate given by the people. We respect the trust that the people have placed in me and the Prime Minister and the newly elected people’s representatives. We have a clear understanding of the expectations with which the people gave such a powerful mandate to the government. We will leave no room for such expectations to be dashed for any reason. It should always be remembered that the prime responsibility of a people’s representative is to serve the public. We will be sensitive to fulfilling the needs of the people, keeping in mind that all these positions are responsibilities and not privileges. I travelled all over the country to support every candidate who represented our group in this election. Instead of holding political rallies, I went to the people during these visits and listened to their grievances directly. A large majority of issues presented by the general public were not personal, but they were common issues. Even after 72 years of freedom, simple issues have not been resolved. There are people who do not possess proper deeds for the lands on which they have lived for many years. We will provide them with legitimate deeds utilizing a swift and due process. I assure you that without a proper alternative we will not evict people from their ancestral homes or farmlands. Human-Elephant conflict has become a major issue to the people. A group of experts has already been appointed to craft a feasible solution for this issue. A separate state ministry was established solely for this purpose because we are aware that this issue needs a sustainable solution. An incredible percentage of people across the country suffer from a shortage of drinking water. We will take necessary steps to address these humane issues. As a national policy, we will enact procedures to provide drinking water to every part of the country. Parents request for their children’s education suitable schools. The shortage of national schools was evident in every area. Most schools have significantly inadequate facilities. The shortage of teachers, laboratories, libraries and sports facilities was frequently mentioned. Although we request students to follow science and technical subjects in order to successfully contribute to the economy, their schools do not even have basic facilities to teach those subject streams. Funds expended by the government for children to pursue their ambitions and to hone their skills are an investment for the future. We will accord priority to resolve these issues through the ministries which had been assigned with new responsibilities. Both resources and facilities in rural hospitals are inadequate. There is a considerable shortage of doctors, nurses and other staff in these hospitals. Patients in some areas have to travel long distances to seek treatment. We will eliminate these discrepancies in the delivery of free healthcare facilities for people. Both Ayurvedic and indigenous medicinal systems will be preserved and promoted. Instead of spending large amounts of foreign exchange to import medicine, we have already commenced operations to manufacture medicines locally. We will also eradicate corruption which occurs in the importation of medicine. This is why we formed a separate state ministry to manufacture, supply and regulate medicine. A large percentage of citizens of this country, earn their livelihood through self-employment. Also, a large number of people depend on agriculture. Their sole requests are for adequate water and fertilizer during their cultivation seasons. We should address these issues. Therefore we will implement a broad set of activities to rehabilitate the tanks and to develop the irrigation system across the country. Another major social issue faced by the youth is unemployment. Both short term and long term solutions have been discussed to address this issue. We have already commenced a programme to provide employment for 100,000 persons representing the most underprivileged families in the country. Simultaneously, we have set plans in motion to provide job opportunities to 60,000 graduates and train them to render their services efficiently. When offering government job opportunities, we will accord priority to poorest of the households. Further, we will have to ensure equal distribution of job opportunities for every province. Every appointee to the government should contribute productively to the country. Therefore, no unnecessary and arbitrary enrollment will be allowed to any ministry or institution. Both ministries and state ministries will work in cooperation with the respective private sector establishments in the industry to generate job opportunities. In addition, we will take necessary steps to promote self-employment and entrepreneurship in each industry as well. Our duty and responsibility is not to distribute job opportunities but to generate them. In order to overcome both local and global challenges and revive the economy, we will have to adopt new ways of thinking. Out of the box thinking is required in order to meet the economic challenges. This time, the ministries have been formed with this thought in mind. We have ascertained the requirement for a people-centric economy for our economic revival. When forming ministries, special attention was given in assigning their subjects and tasks to cover fields such as agriculture, plantations, fisheries, traditional industries and promotion of self-employed job opportunities which affect most of the people in the country. Our basic aims are to strengthen the local economy and to increase export income. Currently the income from tea, coconut and rubber industries is not at a satisfactory level. We will commence operations to develop tea plantations and at the same time, the government will assist the small and medium scale tea estate owners as well. Due to the shutting down of tea factories, tea estate owners have encountered a number of difficulties. We will restart these factories and eliminate existing irregularities simultaneously encouraging the export of high quality tea products. We will reclaim the global brand name we held for Ceylon Tea. We will also encourage planting of new coconut saplings. In order to enact a reasonable price for rubber, local rubber industrialists will be encouraged to utilize local rubber. Plantation of palm oil trees will be stopped completely. We promote the production of export crops such as pepper and cinnamon. We will provide opportunities to generate substantial foreign exchange by providing a stable price to the farmers through value addition to agricultural products and exporting them. In assigning responsibilities to ministries, special attention was paid to the development of urban as well as rural infrastructure facilities and to find solutions to the issue of housing for the people. We have taken measures to identify several sectors that can directly contribute to the development of the country and to appoint State Ministers responsible for these tasks and to assign them the relevant subjects and activities. As human resource development has been identified as a priority, the subject of education has been brought under one Ministry and four State Ministers were appointed for different responsibilities therein. Separate State Ministries for Pre-School, Education Reforms, Skills Development as well as Dhamma School and Bhikku Education have been set up due to their importance. In achieving our future objectives, special attention needs to be paid to technical education. We will pay special attention in education reforms in respect of Grade 6 to Grade 13. We will increase the capacity of Universities enabling all students who pass the Advanced Level Examination to pursue university education.  Further, we will take measures to improve the Open University network and Distance Learning methods. The curriculum will be revised to ensure that these degree subjects would directly contribute to the growth of the economy. The cost of electricity is an important factor that impacts the economic development process of the country. Therefore, a separate State Ministry has been set up to promote renewable energy sources. Focus of relevant ministries will be directed to assist entrepreneurs to use modern technology for value addition, to encourage innovation and to explore new market opportunities in a creative manner. Although our country is rich in natural resources, the value adding industries are not yet on par with international standards. Measures are afoot to earn a large sum of foreign exchange by adding value to the export of natural resources such as gems and minerals. Methodical development of our traditional industries such as Batik, local apparel, brass, cane, pottery, furniture, gem and jewellery will pave the way for the country to promote self-employment, to generate new employment opportunities as well as to build businesses and earn a large amount of foreign exchange. One third of country’s population depends on agriculture, plantation and fisheries as their livelihood. We should raise the living standards of these people. The development of these industries requires a new approach based on technology that goes beyond traditional methods. This is why ministries directly targeting several sectors related to agriculture, plantation and fisheries have been set up to focus attention on this matter. We will take measures to introduce high quality packaging as well as proper transport facilities to deliver the best quality produce, minimizing wastage while taking steps to produce high quality seeds locally with the aim of providing such seeds to the farming community. We will take necessary measures to develop dairy and poultry industries. We will also target to increase the production of organic fertilizer locally with the aim of producing toxin free foods and in the next decade to ensure total organic farming in Sri Lanka. We are targeting a massive progress in the fisheries sector. We should halt the importation of fish into our country as our motherland is surrounded by the ocean. We will introduce a comprehensive programme to provide new technology and equipment needed to enhance the fisheries sector. All the fishery harbours will be modernized to provide facilities for multi-day fishing boats that fish in deep seas. Similarly, we will take steps to build new harbours as per any necessity. We will bring a halt to the plundering of our oceans by unlawful foreign fishing vessels. It is part of our strategy to introduce new technology to develop the inland fresh water fisheries industry. The scopes and responsibilities of each Ministry and State Ministry have been demarcated very clearly. Through this initiative it is expected that the relevant Ministers will implement policies for related fields as well as to take steps to monitor the functions, activities and efficiency of State Ministries. The State Ministers are able to fulfill their respective duties and responsibilities without any hindrance as the monetary provisions required to implement development projects and financial responsibility are directly placed with them. People are of the view that they are not getting the expected service from the public service in an efficient manner. Therefore, I request all the Ministers and State Ministers to take steps to provide fast and efficient service to the public via Ministries, Departments and Institutions that come under their purview. During my recent visits to several State institutions, I observed that some institutional procedures of those institutions do not add any value to the government or to the public but only waste the time of the public. You should identify new methods to provide efficient, speedy and convenient service to the public instead of continuing with prevailing traditional methods. You need to re-engineer the processes for greater productivity and customer satisfaction. We should find new technological solutions in this regard. In the National Policy Framework ‘Vistas of Prosperity and Splendour’, we promised the people that we would eradicate waste and corruption. This is a core responsibility of all of us. We will take steps to completely eradicate waste and corruption in all the Ministries and institutions. In future I will not hesitate to enforce the law against those who are involved in fraud and corrupt actions, irrespective of the status of any such perpetrators. Constantly I will review the progress of the achievement of the goals of the Government that are implemented through Ministries and the public sector. If I find any Ministry failing to achieve its set targets, I will not hesitate to effect necessary changes to implement policies of the Government. In the current political culture, most of the people’s representatives, after they get elected, neglect the prime duty of going to the people. When I travelled round the country in the recent past, this was confirmed by the people who voiced their grievance on this matter. Henceforth, ministers, state ministers as well as members of Parliament will fulfill this expectation of the people by visiting them often to understand their issues and find solutions to their issues. The basis of the success of a democratic state is its constitution. Our Constitution, which has been amended 19 times, from its inception in 1978, has many ambiguities and uncertainties, presently resulting in confusion. As the people have given us the mandate we wanted for a constitutional amendment, our first task will be to remove the 19th Amendment to the Constitution. After that, all of us will get together to formulate a new constitution suitable for the country. In this, the priority will be given to the concept of one country, one law for all the people. An unstable Parliament that cannot take firm decisions and succumbs to extremist influences very often is not suitable for a country. While introducing a new constitution, it is essential to make changes to the current electoral system. While retaining the salutary aspects of the proportional representation system, these changes will be made to ensure stability of the Parliament and people’s direct representation. I love my country. I am proud of my country. I have a vision for my country. Our ardent desire is to build a prosperous nation with a productive citizen, contented family and a righteous society. What we have done so far as well as the plans we propose to implement in future will be aimed to achieve this objective. We have arrived at an important landmark in history. The people have given the current government a massive mandate. We have been given the responsibility to take the country towards prosperity while safeguarding the people and protecting the sovereignty of the country without succumbing to any force. The present generation must fulfill that responsibility for the sake of the future generations. This is the Motherland of all of us. Hence, the time has come for all of us to join hands for the sake of the country irrespective of race, religion or party differences. I extend my hand of friendship to everyone to join me in building the prosperous nation we promised to our people. May the Noble Triple Gem bless you all!  

The post SL will halt oil palm cultivation: President appeared first on Adaderana Biz English | Sri Lanka Business News.

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