Sunshine to buy Daintee for Rs.1.7bn

Sunshine Holdings PLC yesterday said its sub-subsidiary Watawala Tea Ceylon Limited has entered into a share sale and purchase agreement with the current shareholders of Daintee Limited to purchase 100 percent shareholding of the company for Rs.1.7 billion, subject to terms and conditions of the agreement.

Dialog Axiata abandons plans to acquire system integration biz of VSIS

Telecommunication services provider Dialog Axiata PLC this week announced that discussions on the proposed acquisition of the systems integration business of V S Information Systems (Private) Limited (VSIS), namely VSIS Enterprise Solutions (Private) Limited (VES), has been abandoned.

Asian markets mostly up as traders hope for US stimulus

Asian markets mostly rose yesterday building on a two-day rally, with nervous investors keeping an eye on stimulus talks in Washington, while China-US tensions continued to weigh on confidence.

Aitken Spence to reopen five Maldives resorts before Sept.1

Aitken Spence Hotels has announced that five of the hotel group’s Maldives resorts will reopen to international guests by September 1st.

Watawala Plantations delivers robust June performance

Watawala Plantations PLC reported robust revenues and profits for the three months ended June 30, 2020 (1Q21) as the company’s palm oil and dairy businesses stood to benefit from the circumstances that were created by the pandemic where the focus increasingly shifted toward scaling up local production and import substitution.

IMF urges Lebanon to break reform ‘impasse’ after port disaster

The International Monetary Fund urged Lebanese officials yesterday to break an “impasse” and move ahead with reforms after a massive Beirut blast cost the crisis-hit country billions in damages.

The Kingsbury 1Q in red; revenue slumps over 70%

The Kingsbury PLC continues to remain in the red having posted net losses for five straight quarters after being hit with a two-fold impact— first from the Easter Sunday attack in April 2019, and now the global pandemic— both which dealt a crippling blow to the tourism sector.

Treasury guaranteed loans now counted as banks’ liquid assets

The loans to contractors backed by Treasury guarantees can now be considered as part of banks’ liquid assets when calculating and reporting their statutory liquid asset ratio (SLAR) to the Central Bank.

Sri Lanka’s national milk output tumbles in 2019

Sri Lanka’s national milk output tumbled in 2019 amid an outbreak of foot and mouth disease in certain parts of the country and closure of several large-scale farms operating with imported cows, leading to an increase in cost of production and lower profit margins for farmers with no improvement in quality.

Central Bank liquidity facility extended to pharmaceutical suppliers

The Central Bank (CB) has decided to expand its liquidity facility for the construction sector to include the government contractors and suppliers in the pharmaceutical sector, to let them borrow at concessionary rates against the unsettled bills from the government.

Vallibel Finance sustains growth in March quarter, FY19/20

Vallibel Finance PLC reported subdued profits for the three months ended March 31, 2020, as the company made a higher provision for possible loan defaults amid the expectations that the pandemic-driven economic shocks to have an extended bearing on its borrowers.

All-time record price for Veddagala Tea Factory

The Veddagala Tea Factory, situated in Lenagala, has achieved an all-time record price at the weekly tea auction held on August 4, 2020, by securing an attractive price of Rs.1550 per kilogramme, for the PEK1 grade in the Low Grown category. This line was purchased by Shan Teas (Pvt.) Ltd. The Veddagala Tea Factory is managed by Devora Group and is owned by Dr. Nishantha Nanayakkara.

July national tea sales average up 22%

The Ceylon Tea national sales average has witnessed a 22 percent year-on-year (YoY) increase for the month of July, showing an expansion of Rs.113.09 compared with the corresponding period in 2019.

Dialog Axiata reports muted performance for June quarter

Dialog Axiata PLC this week said the pandemic had an adverse impact on its revenues while the provision for bad debt hit profits as the group extended credit to keep people connected during the lockdowns, which significantly affected cash collections.

Gold price rises above US $ 2,000 for first time

Gold has topped US $ 2,000 (£1,527) an ounce for the first time as traders look for havens amid the pandemic.

Banks snared by Hong Kong sanctions laws as US-China spat spirals

International banks in Hong Kong are caught in the crossfire of competing laws enacted by the United States and China as the superpowers clash over the city’s future, with analysts warning businesses are being forced to pick a side.

Apparel exports down by 30% in first half

Sri Lanka’s apparel exports contracted by US$ 785 million or 30 percent year-on-year (YoY) during the first half of 2020 hit by COVID-19 pandemic related economic malaise, Sri Lanka Apparel Exporters Association’s (SLAEA) data showed.

Market closes early on election day

The Colombo Stock Exchange yesterday said it has decided to close the market at 12.30 p.m. today (August 05th) in view of the parliamentary elections.

Economy contracts 1.6% in first quarter

Issuing the national accounts estimates for the first quarter of 2020 (1Q20), the Department of Census and Statistics (DCS) yesterday said Sri Lanka’s GDP contracted 1.6 percent compared to 3.7 percent growth recorded in the first quarter of 2019.

Bayer posts 9.5bn euro loss on glyphosate settlement

German chemicals giant Bayer reported yesterday a second-quarter net loss of 9.55 billion euros (US$ 11.26 billion), reflecting the ‘exceptional impact’ of a US settlement of thousands of claims that its glyphosate weed killer may have caused cancer.

ICRA Lanka projects economic recovery in 2H

Early indications have shown that the Sri Lankan economy is on course to some recovery in the ongoing quarter with lower borrowing costs and benign prices continuing through the year as the country is going to a crucial poll to decide who could be better equipped to accelerate the momentum and lift people’s economic wellbeing.

Lower loan impairments help Pan Asia Bank June profits

Pan Asia Bank reported higher net interest income and profits for the three months ended June 30, 2020 (2Q20), as the bank took advantage of its high priced loans by taking time to adjust them lower while the loan impairments held back due to relief measures that came in the form of moratoria.

Suren Goonewardene appointed MD of Lankem Ceylon

In a strategic move to build in agility, create robust governance structure, transform and steer the company into the next tier of growth, Lankem Ceylon PLC yesterday announced the appointment of Suren Goonewardene as Managing Director for its operations.

ADB forecasts 22% drop in worker remittances

The Asian Development Bank (ADB) forecasts a 21.9 percent drop in worker remittance inflows to Sri Lanka this year, under the worst-case scenario, driving many remittance recipient households into poverty.

Credit card spending gathers momentum

Credit card spending, a gauge for consumer spending of an economy, showed a robust increase in June, in a sign that the economic activities are gaining momentum faster than expected after the coronavirus sapped consumer spending, as people were forced to remain indoors for nearly two months.

SEC introduces unit trust-based REIT framework

The Securities and Exchange Commission (SEC) has announced the introduction of a unit trust-based real estate investment trust (REIT) framework to the Colombo Stock Exchange (CSE).

Colombo inflation accelerates in July

Sri Lanka’s inflation measured by the Colombo Consumer Price Index (CCPI) increased in July from a month ago, driven mostly by the price increases in non-food items such as healthcare, clothing and transport, as people who were mostly confined to their homes left for workplaces with the lockdowns fully lifted.

Vidullanka commissions second hydropower project in Uganda

Vidullanka PLC, a forerunner in the Sri Lankan renewable energy industry, has taken its second gigantic leap in Africa by commissioning the 6.5MW Bukinda Small Hydropower Project in Uganda.

HSBC profit slump adds to bank sector virus woes

HSBC yesterday reported a 69-percent slump in net profit, joining a number of major banks whose earnings have been slammed by the coronavirus fallout.

SLT and Epic Technology Group launch Helaviru Digital economic center, an online platform for farmers

Sri Lanka Telecom - the national ICT service provider and Epic Technology Group – one of the leading digital technology solution providers in the region, proudly launched the Helaviru Digital Economic Center Online Platform for the first time in South Asia on the 31st July 2020.