A lifeline for economy amid crisis: Have banks done enough?

Businesses and individuals continue to struggle due to the impacts brought about by the global health crisis and it was the banking sector that all industries turned to, for help.

COVID-19 will drive banking sector digitisation push: Sampath Bank MD

This is part of the interview series titled ‘Mirror Business S&P SL2 - Insights’ conducted in collaboration with the Colombo Stock Exchange (CSE). The interview features Sampath Bank PLC Managing Director/CEO Nanda Fernando. Following are excerpts from the interview.

Slowdown in worker remittances puts dampener on growth: Moody’s

The slowdown in worker remittances resulted from the pandemic could weigh on economic growth of countries heavily dependent on the foreign income flow as it could cut into the incomes, consumption and thereby the investments of recipient economies raising their credit risk, cautioned Moody’s Investors Service.

Refurbished Excel World to reopen doors next month

Browns & Company PLC, a unit of LOLC Group, plans to re-launch the refurbished Excel World Entertainment Park next month after closing its commercial operations nearly one year ago for upgrading.

Cargills June earnings sharply down as lockdowns hurt retail operations

Cargills Ceylon PLC witnessed the most challenging three months in its recent history as lockdowns prevented in-person visits to their stores while their restaurants remained closed weighing on the group financial performance.

Chevron Lubricants June earnings impacted by lower sales

Sri Lanka’s lubricant market leader, Chevron Lubricants (Lanka) PLC posted a net profit of Rs.427 million for the June quarter, recording 3 percent decline compared to the corresponding period last year, due to lower sales resulting from COVID-19 crisis.

New guidelines issued to passengers travelling to Dubai and beyond

Customers from across Emirates’ network can now travel to Dubai as the city has re-opened for business and leisure visitors with new air travel protocols that safeguard the health and safety of visitors and communities.

Brush maker BPPL sees robust demand for its products amid pandemic

BPPL Holdings PLC became an immediate casualty of the pandemic-induced lockdowns as its factories had to be closed down, disrupting its normal cause of operations, but the company is seeing increased demand for its products from the cleaning sector and the Do-It-Yourself (DIY) sector in the home improvement category.

Freight rates spike seen cooling off

The freight rates out of Colombo, which hit an all-time high during the islandwide lockdown, are observed to be tapering down close to pre-COVID-19 levels, the Sri Lanka Logistics and Freight Forwarders Association (SLLFFA) said.

Central Bank says discussions underway with RBI for US $ 1bn special bilateral swap

The Central Bank (CB) yesterday said it is holding further discussions to secure an additional US $ 1 billion under a special bilateral swap agreement with the Reserve Bank of India (RBI).

Lanka IOC deep in red as lockdowns hurt

Lanka IOC PLC reported extremely sluggish revenues, resulting in a deeper loss during the three months to June 30, 2020, as the demand for gasoline was at its lowest since much of the quarter remained economically inactive amid COVID-19 lockdowns.

Cargills Bank gives dour profit outlook for 2020 as virus bites

Cargills Bank Limited gave a dour outlook for the company’s earnings and asset quality for the remainder of the year, coming directly from the pandemic and the subsequent relief measures extended to affected parties, as the bank said that the crisis had impaired its ability to generate interest incomes and other fees.

People’s Bank Rs.20bn debenture issue oversubscribed

People’s Bank’s Basel III, Tier 2-compliant, unlisted, rated, unsecured, subordinated, redeemable debenture issue was oversubscribed, receiving in excess of Rs.20 billion worth of bids during the early hours of the opening day itself, in a strong expression of investor confidence.

Fitch plans to withdraw ratings of Kotagala Plantations on commercial reasons

Fitch Ratings plans to withdraw the ratings of Kotagala Plantations PLC for commercial reasons, on or about August 21, 2020.

Lankem disposes Sigiriya Village stake to related party

Lankem Ceylon PLC yesterday disposed an equity stake of 23.12 percent, amounting to little over two million shares, in subsidiary company Sigiriya Village Hotels PLC to a related party, with no change to the ultimate ownership.

Treasury facilitates Rs.10.4bn to PMB via state banks to purchase Yala season paddy

The Treasury has made available Rs.10.4 billion worth of funds to the Paddy Marketing Board (PMB), through state banks, to purchase paddy at a set price of Rs.50 per kilo for the Yala season, Finance, Economic and Policy Development Ministry said.

Gold hits record high on haven demand as markets rally sputters

Gold hit a record high yesterday as investors rushed into the safe-haven on concerns about China-US tensions, a spike in virus infections around the world and a lack of progress on a new stimulus bill in Washington.

Decline in private sector credit decelerates in June

The decline in the private sector credit in June decelerated from May indicating that the banking sector is ramping up fresh credit to the private sector under both the Central Bank’s refinance credit scheme and from their own funds.

Central Bank clarifies on repurchase agreement with Federal Reserve Bank

The Central Bank of Sri Lanka (CBSL) has recently entered into an agreement with the Federal Reserve Bank, New York (Fed) as a temporary source of US dollar liquidity to be used when required.

Bogawantalawa Tea Estates in diversification drive

Bogawantalawa Tea Estates PLC, one of the leading high grown tea plantation companies, is diversifying into specialty tea varieties, spices, timber plantations and oil palm cultivations, said ICRA Lanka in a rating report on the company.

CT Holdings and Cargills announce share buyback plans

CT Holdings PLC and its subsidiary Cargills (Ceylon) PLC have announced plans for share buy backs on a pro-rata basis up to a maximum of 5 percent within one year, subject to shareholder and regulatory approval .

Tile and sanitary ware importers call to lift import suspension

Sri Lanka’s tile and sanitary ware importers have raised concerns on the government-imposed import ban stating that the unpopular move is not only detrimental to the industry, but also to the national economy.

SDB Bank plans to raise Rs.1.5bn via rights

Sanasa Development Bank PLC (SDB Bank) is planning to raise upto Rs.1.53 billion via a right issue to enhance the bank’s capital adequacy ratios and partly finance its loan portfolio growth.

THASL welcomes removal of travel restrictions by UK

The Hotels Association of Sri Lanka (THASL) yesterday welcomed the latest update of UK travel advice on Sri Lanka.

Pandemic sends Ceylon Cold Stores deep into red

The performance at Ceylon Cold Stores PLC (CCC) for the quarter ended June 30, 2020 (1Q21) showed the extent to which coronavirus-related lockdowns had inflicted damage to consumer demand in a period where retail stores remained closed and people’s movements restricted.

David Pieris, Indra Silva and Nimal Perera among main buyers of ComBank shares

High net worth investors David Pieris, Indra Silva and Nimal Perera were among the main buyers of the shares of Sri Lanka’s largest private bank, Commercial Bank of Ceylon PLC (ComBank), in the period starting April 1, 2020 to July 10, 2020, Mirror Business learns.

Q & A with Kanishka Senanayake

Sri Lankans now view all politicians as dishonest – either financially or morally. This has to change - and I mean really change – if we are to be trusted as leaders again. Further, Sajith Premadasa is one of the youngest candidate we have witnessed in National Politics. I see his candidacy as an inspiration that has revitalised the conversation on Youth engagement in politics.

Airbus makes gesture to resolve EU-US dispute

Airbus announced yesterday it had made a gesture to end a long-running dispute between the European Union and the United States at the World Trade Organisation over aircraft subsidies.

Eurozone business growth turns positive: IHS Markit

Business activity in the 19-nation eurozone is increasing for the first time since February, before the coronavirus lockdown, according to a survey of purchasing managers by IHS Markit.

India to establish fish processing plants in Maldives

India and the Maldives on Wednesday signed a contract to set up fish processing plants at two of the islands in the Maldives.