Banking sector NPLs likely to hit 5% this year

Sri Lanka banking sector’s gross non-performing loans (NPLs) ratio is forecast to reach five percent at the end of this year, the highest level since 2014 amid increased market lending rates and sluggish economy, Central Bank (CB) said. According to CB statistics, the gross NPLs ratio had risen to 4.9 percent by August from 4.8 percent in the second quarter of this year. As of second qu

Mahela, Sanga on board as SL’s brand ambassadors for Expo 2020 Dubai

Sri Lankan cricketing legends Mahela Jayawardena and Kumar Sangakkara have come on board as Sri Lanka’s brand ambassadors for Expo 2020 Dubai to be held from October 20, 2020 to April 10, 2021, in the UAE. Both Mahela and Kumar,

ComBank gets US$ 25mn Proparco loan to support local SMEs

Proparco, a subsidiary of the Agence Française de Développement (AFD) Group, dedicated to private sector financing, recently signed an agreement with Sri Lanka’s Commercial Bank of Ceylon PLC to support the island nation’s small and medium-sized enterprises

Nawaloka Hospitals rating downgraded

ICRA Lanka has cut Nawaloka Hospitals PLC’s credit rating to BBB from BBB + citing the company’s deteriorating liquidity position and the increase in the gearing level amid weak financial performance in the most recent financial year. The rating outlook has also been revised down to ‘Negative’ from ‘Positive’. Further, the rating agency has downgraded the company’s Rs.457.2 million senior debenture issue to the same level of the entity rating w

CA Sri Lanka’s 40th National Conference kicks off today

The 40th National Conference of Chartered Accountants organised by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) will be inaugurated today at Waters Edge, Battaramulla under the patronage of the Institute of Chartered Accountants in England & Wales (ICAEW) President Fiona Wilkinson. ICAEW is one of the oldest accountancy bodies in the world. Ceylon Chamber of Commerc

WB cuts SL’s economic growth forecast to 2.7%

In its latest edition of the South Asia Economic Focus, the World Bank expects Sri Lanka’s economic growth to decelerate to 2.7 percent by the end this year from earlier forecast of 3.5 percent in June amid security challenges and political un

SL eyes launch of US$ 500mn Samurai bond in early Nov.

Sri Lanka is likely to launch its maiden US$ 500 million (60 billion yen) 10 -year Samurai bond next month prior to the presidential election. The Cabinet of Ministers last week approved the appointment of Mizuho Securities Company Ltd., SMBC Nikko Securities Inc. and Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. as the three joint lead managers

Forensic audit on bond scams, EPF deals by mid Nov.

Five forensic audit reports on alleged bond scams and Rs.2.2 trillion Employees’ Provident Fund (EPF) transactions will be completed by mid next month, the Central Bank (CB) said. “The forensic audit reports cover both bond issuances and EPF transactions. Once the reports are handed over to us, the Monetary Board will consider and it was decided to seek Attorney General’s (AG)

China sets timetable to end finance ownership caps

BEIJING (AFP) - China’s securities regulator has set a timetable to remove foreign ownership limits in finance companies next year, as Beijing seeks to attract overseas investment to boost a slowing economy.

US aviation authority blasted over of 737 MAX redesign approval

WASHINGTON (AFP) - US aviation regulators were slammed yesterday for allowing design changes to Boeing’s 737 MAX aircraft that have been implicated in two crashes causing the deaths of more than 300 people.

Stocks hit five-week high; foreigners exit

REUTERS: Sri Lankan stocks rose for the sixth straight session yesterday to hit their five-week high led by banking and beverage shares, but foreign investors exited from risky assets with the start of presidential poll campaigning. The rupee currency ended weaker.

Business registrations from home

The incorporation of a new company in Sri Lanka is now possible from the comfort of one’s own home. “Name reservation of companies could be obtained online. Company registrations and incorporations could be done online and there is no need for physical attendance at the Department of Registrar of Companies,” said the Minister of Industry and Commerce Rishad Bathiudeen in Parliament on October 8.

Abans Group appoints Weerakkody to Board of Directors

Abans Group recently announced the appointment of Dinesh Weerakkody as a Non-Executive Director to Abans Retail Holdings.

Oil spikes on Iranian tanker blasts

LONDON (AFP) - Oil surged yesterday after an Iranian tanker was hit by suspected missile strikes off the coast of Saudi Arabia, sparking fresh conflict fears one month after attacks on Saudi oil facilities that were blamed by Washington on Tehran.

Small businesses provide most jobs in under developed, developing nations: ILO

More than two-third of total employment in under-developed and developing countries is provided by small economic units, the International Labour Organization’s latest report has found.

CB keeps rates steady to stabilize inflation

The Monetary Board of the Central Bank (CB) yesterday decided to maintain policy interest rates at their current levels, awaiting for materialisation of various measures aimed at accelerating subpar economic growth in the country, while being cautious on the implications of the public sector salary hike scheduled for next year.

Demand for carbon emission cut

Police officers arrest an activist at London City Airport during the fourth day of demonstrations by the climate change action group Extinction Rebellion, in London yesterday. Demonstrations occurred in 60 cities around the world this week, with thousands taking to the streets of New Delhi, Cape Town, Paris, Vienna, Madrid, and Buenos Aires. Extinction Rebellion is demanding that governments drastically cut carbon emissions. / AFP

WB urges banks to adopt multifaceted approach to be development enablers

With nearly one-third of Sri Lanka’s adult banking population considered to be inactive account holders and many facing significant constraints in accessing finance, the World Bank (WB) urges the country’s banks to position themselves as development enablers by adopting a multifaceted approach to further promote financial inclusiveness in the country. “Having a bank account isn’t enough; it must be used. The challenge in Sri Lanka is less about

CB tells banks to prepare for sweeping industry changes with new Banking Act

The Central Bank (CB) wants Sri Lanka’s banking sector to start preparing for the anticipated transformation of the current banking industry landscape as the new Banking Act is set to come into effect in 2021 with the regulator gaining more ‘teeth’ to impose monetary penalties on errant banks. The Central Bank (

EU scheme to reduce Greek bad loans

ATHENS (AFP) - The European Commission yesterday approved a Greek scheme to reduce bad loans weighing down the country’s banks, limiting new credit and holding back economic recovery.

New regulations to restrict cross holdings among banks

The Central Bank (CB) is to introduce new regulations to restrict cross holdings among banks to enhance corporate governance in the banking sector. “We are looking

Stocks end tad firmer near four-week high; foreigners exit

COLOMBO (Reuters) - Sri Lankan stocks rose for the fifth straight session yesterday to hit their near four-week high led by beverage shares, but foreign investors exited from the risky assets with the start of presiden

John Keells Hotels provides Rs.2.45bn corporate guarantee to People’s Bank

John Keells Hotels provided a corporate guarantee for Rs.2.45 billion to People’s Bank on Wednesday, in respect of a long-term loan facility obtained by its subsidiary, Ceylon Holiday Resorts Ltd, for redevelopment of Cinnamon Bentota Beach. “The said loan facility was obtained by Ceylon Holiday Resorts to partially finance the redevelopment cost of hotel Cinnamon Bentota Beach,” the company stated in stock filing yesterday. Cinnamon Bentota Be

Apple pulls Hong Kong app used by protesters after China warning

HONG KONG (AFP) - Apple yesterday removed a Hong Kong map application used by pro-democracy protesters, saying it endangered police, after China warned the US tech giant to drop the app. According to a statement p

Asia markets mixed as dealers await start of key trade talks

HONG KONG (AFP) - Asian markets were mixed yesterday with investors moving cautiously as they sifted through conflicting reports about the outlook for upcoming China-US trade talks.

WB urges banks to adopt a multifaceted approach to be development enablers

With nearly one-third of Sri Lanka’s adult banked population considered to be inactive account holders and many facing significant constraints in accessing finance, the World Bank (WB) urges the country’s banks to position themselves as development enablers by adopting a multifaceted approach to further promote financial inclusiveness in the country.

European Union provides EUR 40mn to Sri Lanka’s STRIDE project

The European Union (EU) is providing EUR 40 million to Sri Lanka to co-finance the Strengthening Transformation, Reconciliation and Inclusive Democratic Engagement (STRIDE) project.

SL South Asia’s most improved in latest Global Competitiveness Index

Sri Lanka becomes the most improved economy in the South Asian region in Global Competitiveness Index 2019, by gaining 1.1 index points and improving its ranking to 84th, out of 141 countries, due to the improvements in socio-economic elements.

C.bank seen keeping rates on hold ahead of elections

(Colombo) REUTERS: Sri Lanka’s Central Bank will likely leave its key interest rates on hold at a policy review tomorrow, after a 50-basis-point cut in August, a Reuters poll showed, ahead of presidential elections and as lower bank rates go into effect.

Sri Lanka’s unemployment edges up to 4.9% in 2Q

Sri Lanka’s unemployment rate has inched up to 4.9 percent during the second quarter of 2019, up from 4.7 percent in the quarter ended in March 2019, although the total number of employed persons has increased.