Norges Bank’s Sri Lankan equity portfolio rebounds in 2023

By Nishel Fernando 
Norges Bank Investment Management, which manages Norway’s US $ 1.5 trillion Government Pension Fund Global, saw its equity investments in Sri Lanka rebounding in 2023, driven by the appreciation of the Sri Lankan rupee and market performances during the year. 
According to the official website of Norges Bank Investment Management, the fund’s equity portfolio in Sri Lanka rebounded to US $ 56.22 million at the end of 2023, from US $ 35.49 million at the end of 2022.
During the year, the fund had re-entered Commercial Bank of Ceylon PLC, with a purchase of a 0.43 percent stake in the bank, after divesting its entire 3.42 percent ownership stake in the bank in 2022. 

The fund added People’s Leasing & Finance PLC and Singer Sri Lanka PLC to its investment portfolio by purchasing 0.14 percent and 0.24 percent ownership stakes in them.
On the other hand, the fund divested its entire 1.4 percent stake in Cargills Ceylon PLC, a 0.25 percent stake in Lion Brewery Ceylon PLC and a 0.56 percent stake in Renuka Agri Foods PLC during the year.  
In addition, it had a 0.18 percent stake in Nestle Lanka PLC, which was delisted during the year.  Thereby, the fund’s investment portfolio fell to 21 equities in the period. 
At the end of 2022, Hatton National Bank PLC became the fund’s second largest investment in Sri Lanka, by overtaking Aitken Spence PLC. During the year, it increased its ownership stake in the company to 3.11 percent, from a 2.36 percent stake held at the end of 2022. Similarly, the fund also increased holdings in BPPL Holdings Ltd, Hayleys Fabric PLC, Hela Apparel Holdings PLC, Hemas Holdings PLC, Sampath Bank PLC, Sunshine Holdings PLC and Tokyo Cement Co Lanka PLC.
Meanwhile, the fund marginally increased its holding in John Keells Holdings PLC, from 2.3 percent at the end of 2022 to 2.39 percent at the end of 2023. The value of its holdings in John Keells Holdings PLC rebounded to US $ 19.5 million at the end of 2023, from US $ 11.74 a year ago. However, the fund reduced its stake in John Keells Hotels PLC to 0.87 percent, from 1.57 percent in the same period.
In addition, the fund also reduced its ownership stakes in Ceylon Cold Stores PLC, CIC Holdings PLC and Teejay Lanka PLC.
In the first quarter of 2024, the fund’s Global returns stood at 6.3 percent year-on-year (YoY) while the return on the fund’s equity investments was 9.1 percent YoY.