HNB upsizes debenture issue by Rs.3bn to raise up to Rs.10 bn

Sri Lanka’s second largest private bank by assets, Hatton National Bank PLC (HNB) has upsized its already announced Basel III debenture issue by Rs.3 billion.  HNB in September last year, announced plans to issue 50 million BASEL III-compliant, Tier II debentures at Rs.100 a share, with an option to issue further 20 million debentures.

Need for smoother school-to-work transitions

The world stands on the brink of a fourth industrial revolution, where dramatic changes in technological advancements will have profound impacts on the future employment landscape and skill requirements. This means that engaging in lifelong learning—be it at school or at work—to anticipate and prepare for future labour market demands is of paramount importance.  

Ten Year Challenge: Has SL made progress in last decade to become a financially literate nation?

The ‘10 Year Challenge’, Facebook’s latest social media phenomenon, has taken the Internet by a storm. People are posting a picture from 10 years ago alongside their current profile picture or some other photograph and the transformation through the decade is remarkable. True, people have changed quite a lot over the last 10 years; not only people but countries also have advanced, developed  and diversified.  

Sri Lanka secures US $ 200mn IBRD loan for primary healthcare system

Sri Lanka is to obtain US $ 200 million from the International Bank for Reconstruction and Development (IBRD) of the World Bank to implement a primary healthcare system strengthening project.  

Repatriation rules on export earnings likely to be relaxed

The government will be looking at further relaxing the rules pertaining to repatriation of export earnings to facilitate the country’s exporters, said the former Export Development Board (EDB) Chairperson and Chief Executive Officer Indira Malwatte.   

Rupee edges down on importer, state bank dollar demand

(Colombo) REUTERS: Sri Lanka’s rupee closed slightly weaker yesterday due to dollar demand from importers and state banks, while investors remained cautious over debt repayment by the government.   

New team of FTA negotiators to be appointed

Development Strategies and International Trade Minister Malik Samarawickrama plans to appoint a new free trade agreement (FTA) negotiation team shortly with the approval of the Cabinet of Ministers, a top ministry official told Mirror Business.   

DFCC Bank in Rs.7.6bn cash call to bolster capital base

DFCC Bank PLC yesterday announced a rights issue to bolster its capital base, in view of supporting its growth projections, the bank said in a stock exchange filing.   

SriLankan loses Rs.40bn in 9 months

The losses at the national carrier, SriLankan Airlines, widened during the nine months ended December 31, 2018, despite the gains at the top line level, due to currency depreciation and higher oil prices, the airline said yesterday in a statement.   

National inflation decelerates to 0.4% in December

Sri Lanka’s countrywide headline inflation, measured by the year-on-year change in the National Consumer Price Index (NCPI), decelerated to 0.4 percent in December 2018, from 1.0 percent a month ago, the da

Rupee falls on importer dollar demand; stocks post 8-week closing low

(Colombo) REUTERS: Sri Lanka’s rupee closed weaker yesterday due to dollar demand from importers, while stocks fell to an eight-week closing low amid concerns over debt repayment by the government. The rupee closed at 18

Managing Sri Lanka-China economic relations: BRI, debt and diplomacy

China holds approximately 9 percent of Sri Lanka’s total outstanding debt as of 2017 and 14 percent amongst bilateral lenders – equivalent to the same share held by neighbouring India. Despite this, Sri Lanka’s engagement with China has become synonymous globally with the Asian giant’s so-called ‘debt diplomacy’ – an euphemism for debt entrapment.

Illicit cigarette market and tax implications

A recent study by the academics of the University of Kelaniya and Open University of Sri Lanka estimates that Sri Lanka lost Rs.18 billion in tax money due to contraband cigarettes in 2018. The law enforcement authorities have seized over 580 million illegal cigarettes smuggled into the country during the same year. However, given the Rs.18 billion number and the ample availability in the market, it can be safely assumed that the majority of the

Mirror Biz Toon

Hayleys Fabric 3Q net up on strong sales

 Hayleys Fabric PLC, the knit fabric maker of Hayleys group, reported solid performance for the three months ended December 31, 2018 (3Q19) as the company extended its positive earnings for the third quarter in a row supported by a strong top line performance.  Hayleys Fabric reported earnings of 52 cents a share or Rs.107.6 million profit for the quarter under review from a loss of 5 cents a share or Rs.10.8 million reported for the sa

Keells Food Products December profits down on higher costs

Keells Food Products PLC (KFP), the processed food maker of John Keells group, reported lower profits for the quarter ended December 31, 2018 (3Q19) amid weak consumer sentiment and difficult operating conditions.

sl urged to strive for 2nd demographic dividend driven by ‘Silver Economy’

Sri Lanka needs to focus on improving productivity, health and saving capacity of its current workforce in order to earn a second demographic dividend driven by its ‘Silver Economy’, a t

JLanka to invest US $10m in Bahrain’s renewable energy sector

TRADE ARABIA: Sri Lanka-based JLanka International, a premier solar and renewable energy technology solutions provider, has announced an investment of up to US $10 million within the coming five years in Bahrain’s renewable energy sector. Commencing operations in Bahrain, JLanka has been commissioned by the kingdom’s Sustainable Energy Unit (SEU) under the supervision of Dr. Abdul Hussain Bin Ali Mirza, Minister of Electr

Bracing for climate change – A matter of survival for the Maldives

For low-lying island states, the impacts of global warming and climate change can be a matter of survival. The irony is that while these states have not contributed much to greenhouse emissions, as they produce very little, they may face some of the worst consequences.   

Rupee slips on importer, bank dollar demand; stocks down

(Colombo) REUTERS: Sri Lanka’s rupee closed slightly weaker yesterday, snapping two straight sessions of gains, due to dollar demand from banks and importers.   

South Asia tops ranks of world’s highest real interest rates

Bloomberg: Real interest rates in South Asia are among the highest in the world, raising the prospect of more dovish monetary policy in the region.  

MTD Walkers transfers subsidiaries to Malaysian parent in US $ 19mn deal to settle debt

The troubled construction firm, MTD Walkers PLC, has transferred three of its subsidiaries to its Malaysian parent, MTD Capital Berhard, for a purchase consideration of little over US $ 19 million, to settle a debt payable by one of its subsidiaries.   

Patterns to politics: Entering 2019

In the new year, Sri Lanka remains at a crossroads. As before, the island nation requires carefully calibrated statecraft from policymakers to choose the path towards prosperity. The political, constitutional and parliamentary crisis over the last months of 2018 was a waste of time. Possibly, the president never was fully in control of the crisis-riddled turbulent political alliance strategized by him.  

Global FDI skids 19% on Trump tax reform, may rebound in 2019: UN

(Geneva) REUTERS: Global foreign direct investment (FDI) fell 19 percent last year to an estimated US $ 1.2 trillion, largely caused by US President Donald Trump’s tax reforms, the United Nations trade and development agency UNCTAD said yesterday.  

New entity to handle Port City land sales

A new procurement and regulatory entity is to be established within next three to six months to conduct land sales, handle regulation and development activities of Colombo Port City (CPC), a top government official told Mirror Business.  

After downgrading Sri Lanka, Fitch says frontier market ratings mostly stable

Fitch-rated frontier markets saw more positive than negative sovereign rating actions in 2018, partly due to higher commodity prices, although the rating agency cut Sri Lanka’s sovereign rating over political uncertainty in December.   

Tax reversal helps Tea Smallholders’ 3Q

Tea Smallholder Factories PLC has returned to the black during the December quarter (3Q19), as the company saw its earnings for the period rising 47 percent year-on-year (YoY) to Rs.13.7 million, thanks to a Rs.8.9 million tax reversal. The earnings per shar

Tourism earnings hit US $ 4.4bn in 2018

Tourism earnings are estimated to have risen 11.6 percent year-on-year to US $ 4.4 billion in 2018, according a press release issued by Sri Lanka Tourism Development Authority (SLTDA)  on Friday.

SLT gets new CEO and COO

Sri Lanka Telecom (SLT) last week announced a new leadership team with the appointment of Kiththi Perera as the Chief Executive Officer (CEO) and B.P. Fernandez as the Chief Operating Officer (COO) with effect from January 1, 2019.  

India’s SBI says lenders awaiting SEBI decision on Etihad offer for Jet Airways

(New Delhi) REUTERS: The State Bank of India (SBI)-led consortium of lenders is waiting for India’s capital markets regulator to decide on a bailout offer by Etihad Airways for the financially stressed Jet Airways, SBI Chairman Rajnish Kumar said, the Business Standard reported on Saturday. The UAE-based carrier, w