Business

Aitken Spence PLC has announced that the company has recently acquired hydro power operator Waltrim Energy Limited, a subsidiary of Sunshine Holdings PLC for LKR 900 million.

The company contributes 6.6MW to the national grid via three mini hydropower plants located in the Nuwara Eliya district, namely Waltrim Hydropower (Private) Limited, Upper Waltrim Hydropower (Private) Limited and Elgin Hydropower (Private) Limited.

The Waltrim hydro power draws energy from the Kotmale Oya and Upper Waltrim hydropower and Elgin hydropower from the Dambagasthwala Oya.

Aitken Spence expands its portfolio in hydro power in the pursuit of meeting rising energy demands, sustainable development, access to clean energy, and lowering our national carbon footprint.

This is the second hydro power plant which is owned and operated by Aitken Spence. Branford Hydropower (Pvt) Ltd. is the other hydro power plant with a 2.5MW capacity located in Matale.

The company also owns and operates a wind power plant with 3MW capacity located in Ambewela.

“This is yet another investment made by Aitken Spence that shows our commitment to expand the power generation portfolio with renewable energy projects. Hydro power plays a key role in renewable energy segment in Sri Lanka and this initiative strengthens the country’s efforts to move towards cleaner energy sources and effective and efficient management of sustainable and affordable generation of energy supplied to the national grid,” commented Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director of Aitken Spence PLC.

The power segment of Aitken Spence is a leading player in the sector with a reputation for investing in pioneering technologies and has diversified into renewable energy by establishing hydro power and wind power plants to support Sri Lanka’s demand for energy.

With their commitment to increase the country’s energy consumption from renewable energy sources, the company recently introduced Sri Lanka’s first waste to energy power plant that was officially launched in February 2021.

Moreover, these initiatives are in line with the collective efforts of the government and the private sector to produce clean energy sustainably.

The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL)is set to conduct the 24th Sri Lankan Entrepreneur of the year Awards on the 25th of March at the BMICH Main Hall from 3.00 p.m. to 6.00 p.m.

The People’s Bank is currently in negotiation with the China-led Asian Infrastructure and Investment Bank (AIIB) for a USD 75 million - USD 100 million loan to be lent to COVID-19-hit local SMEs, the bank said this week.

The bank celebrates 60 years of yeoman service of providing financial stability, growth, profitability and leading the way in empowering the lives and livelihoods of Sri Lankan citizens this year.

Being a state-owned bank, People’s Bank, as its name depicts, is a people-centric financial institution that sets goals to be an exemplary corporate citizen.

Despite challenging operating conditions due to the COVID-19 pandemic, 2020 was a watershed year for People’s Bank as the bank turned a new chapter in its six-decade old history, passing the LKR 2.2 trillion mark in assets and achieving a loan book of LKR 1.6 trillion, as the bank’s loans and advances grew over LKR 300 billion in 2020, it said in a media release. During the COVID -19 pandemic, in order to soften the impact on the overall economy, the bank swiftly implemented a range of relief packages including moratoriums mandated by the government and provided relief to over 480,000 customers, which is the highest number provided by a bank in Sri Lanka.

The bank offered LKR 13.7 billion worth of loans under the Saubhagya COVID-19 Renaissance Facility, while offering over LKR 10 billion in direct and indirect loans to the country’s agriculture sector, realising the importance of food security during a global pandemic. Further, the bank provided LKR14.2 billion worth of financial assistance to small and medium-sized businesses (SMEs) and LKR 286 million in loans to women entrepreneurs during 2020.

Understanding its wider societal role, the bank also assisted teachers, actors, musicians and other artists by giving loans worth over LKR 330 million while assisting university students lending over Rs.170 million to continue with their education, which included loans to purchase laptops.

Further, the bank extended over LKR 6.1 billion in loans to retired/disabled officers of armed forces as at December 31, 2020. The bank has over one million senior citizen account holders, to whom a preferential rate of interest is being paid. The bank also extended LKR 240 billion in local currency and further Rs.80 billion in foreign currency to the Government of Sri Lanka to manage liquidity shortfalls during the height of the COVID-19 pandemic.

The bank also purchased LKR 358 billion worth of Treasury Bills and Bonds from the primary auction in 2020, enabling the Treasury and the Central Bank to maintain the rupee interest rates at the desired levels. As one of the largest contributors to the revenue of the exchequer, the bank also remitted LKR 14.4 billion in taxes/dividends to the Government in the last financial year. “The year 2020 brought in unprecedented challenges due to COVID-19 pandemic, but People’ Bank was able to wade through them largely unscathed thanks to the commitment and the dedication of the Bank’s senior management and each and every member of the staff. They all understood their national duty and were completely up for the task at hand,” Bank Chairman Sujeewa Rajapakse said.

HUTCH recently demonstrated the fastest 5G speed ever achieved by a Sri Lankan telecom operator in its inaugural 5G trial event at HUTCH One Galle Face Premier Experience Centre held recently.

HUTCH teamed up with ZTE, a global leader in telecommunications and information technology for this groundbreaking 5G trial which included several demonstrations and use cases of 5G.

The 5G trial was demonstrated in the presence of Chief Guest Oshada Senanayake, Director General Telecommunications Regulatory Commission of Sri Lanka, Thirukumar Nadarasa, CEO of HUTCH and the HUTCH Management, the telecom firm said in a media release. The 5G trial consisted of several demonstrations, among which the Ookla global broadband speed test illustrating HUTCH scoring a speed of 1.8Gbps as the fastest ever 5G speed in Sri Lanka and achieving an extremely low latency (Ping) rate.

HUTCH demonstrated a cross section of 5G use cases including gaming, remote meeting, and high definition video playback using 5G and compared the difference in experience with 4G and 3G for the participants to better appreciate the efficiency of 5G and what it has in store for the future. Commenting on the new milestone, HUTCH CEO, Thirukumar Nadarasa said, “This is indeed a special moment for all of us at HUTCH. As a company that seeks to exceed the expectations of our valued customers, the new HUTCH network is 5G-ready, fostering a new era of technological transformation. At HUTCH, we always believe in customer centric innovation and are proud to be at the cutting edge, demonstrating the latest and most advanced technologies to Sri Lanka.”

The release said that 5G is said to have the potential to influence almost every industry backed by ultra-reliable low latency, massive machine type communications and enhanced mobile broadband to deliver lightning fast download speeds and access to real time data-backed insights creating groundbreaking solutions for the betterment of people, businesses and society.

With the strength of being part of a global Fortune 500 conglomerate, HUTCH has leveraged the expertise from its parent company, CK Hutchison Holdings, one of the first telecom operators to launch 5G worldwide.

Powered by Dialog Axiata PLC, Genie, Sri Lanka’s first PCI-DSS-certified payment app has cemented a major milestone moment on its journey in establishing itself as the biggest payment processing network in Sri Lanka through the achievement of over Rs. 10 billion worth transactions.

With more and more customers reliant on smart devices, Genie, powered by Sri Lanka’s premier connectivity provider, is paving the future for digitized Fintech payments in Sri Lanka with its simple and secure payment services.

With over 400,000 downloads to date, Genie has been recognized by SLASSCOM Awards as the ‘Best Startup Product/ Service 2019’ and the ‘Best Disruptor Product 2019’ whilst also bagging two gold awards at the LankaPay Technovation Awards in 2019 for ‘Most Popular Electronic Payment Product (Fintech)’ and ‘Best Mobile Application for Retailer Payments’, Dialog said in a media release.

In addition to these distinct recognition, Genie is constantly transforming its processes to meet the expectations and needs of its virtual audience.

Offering customer’s greater avenues of convenience coupled with a future-fit payment security model Genie has been at the vanguard of the FinTech arena for promoting its recently adopted tokenization technology with a ‘One-Click-Pay’ option across several partner merchants as a digital solution to eliminate friction in its payment process and provide a quick checkout experience with a secure “save card” option on its app/website

Sri Lanka will be promoting specific export products with high potential in Japanese market with the aim of enhancing trade between the two countries, the Export Development Board (EDB) revealed.    

The EDB in collaboration with the Sri Lanka Embassy in Japan has taken steps to promote these products such as solid rubber tyres in Japan for the next 3 years.

Based on the Statistical analysis and desk research carried out by EDB,  a strategy paper has been devised for the Japanese market.

Four specific products viz. Value-added black tea, Solid tyres, T-shirts- singlets and Pepper (ground) were identified as focused products that have high potential in the Japanese market.

Strategies were formulated accordingly to promote these products in Japan during the period 2021-2023 on a short, medium and long-term basis.

EDB has set USD 230 million export target in 2021 for the Japanese market, and a Plan of Actions has been developed accordingly to achieve this target.

The Plan of Actions include Sri Lanka’s participation at trade fairs/exhibitions in Japan (virtual/physical), business-to-business meetings (B2Bs) with targeted buyers.

Inward/outward trade delegations sector-specific promotion programs will be implemented for spices, Ayurveda Cosmetics, coconut oil, food and beverages, gifts and handicrafts, etc.

Webinars/seminars will be conducted to make Sri Lankan exporters aware of market conditions/trends and other important information on the Japanese market.

To move forward with the findings of the Strategy Paper, a meeting was held with the participation of relevant institutions, the EDB, Sri Lanka Embassy in Japan, Foreign Ministry, and the Department of Commerce last month.

As part of this initiative, the 1st sectoral meeting for solid tyres was conducted on 3rd March, 2021, with all stakeholders including private sector companies who are currently exporting solid tyres to the international market.

During the discussion, private sector participants shared their product/ company portfolios and specific assistance required from the Sri Lanka Embassy to penetrate/increase the market share in the Japanese market.

Based on the discussion, the Embassy and the EDB will develop a proper mechanism to increase Sri Lanka’s sold tyre exports to the Japanese market and implement the plan of Action during 2021-2023.

Japan was the 12th largest export destination for Sri Lankan products, generating USD 188 million export income in the year 2020 (approx. 2% of total exports).

The key export products are apparel, tea, cocopeat, shrimps and prawns, industrial and surgical rubber gloves, pneumatic & retreated rubber tyres and tubes, crepe rubber, silica and quartz, tableware and kitchenware, processed food, and foliage.

mCash, the mobile money arm of SLT-MOBITEL has partnered with Visa to enable mCash merchants to process Visa payments via LankaQR. This joint endeavor will empower mCash merchants across Sri Lanka to conveniently use the Visa solution to receive QR payments from customers.

Visa’s QR payment solution, is a mobile push-payment platform that allows customers to send merchants payments directly from their Visa prepaid, debit or credit card accounts by scanning a QR code with their mobile and following the applicable Visa process for QR payments.

With mCash’s latest addition of LankaQR via partnering bank Commercial Bank enables existing mCash merchants; from small businesses to large-scale enterprises, to conveniently accept payments from any customer who uses an app that is LankaQR certified, including the Visa QR solution. LankaQR codes issued by mCash merchants can accept payments sent through the Visa network using cards issued locally and internationally, placing it amongst one of the most fully-fledged LankaQR codes to be issued to the market.

Commenting on the partnership, Shashika Senarath, Chief Marketing Officer of Mobitel said, “As Sri Lanka continues to evolve digitally, we are proud to partner with Visa and roll out QR code solutions for our consumers ensuring convenience, security and reliability. With this partnership, we are able to deliver new payment innovations for our merchant base through mCash and LankaQR’s interoperable standards thus empowering our customers to pay and get paid seamlessly and further uplift Sri Lanka’s digital payment landscape.”

LankaQR was first launched through an initiative by the Central Bank of Sri Lanka (CBSL). This was to ensure that all QR codes and QR-based transactions in Sri Lanka occur in a regulated and inter-operative manner. LankaQR’s island-wide activation is further in support of the Central Bank’s ‘Cash Wade’ campaign which aims to increase the adoption of digital transactions in Sri Lanka and to highlight issues related to using cash and encouraging consumers to enjoy the convenience of payments through digital platforms.

Anthony Watson, Country Manager – Sri Lanka and Maldives, Visa said, “The increased adoption of less-touch payments, be it contactless cards or QR codes, signals the shift of consumers and merchants alike, towards more forms of digital payments. We’re delighted to enable QR payments on Visa for merchants of SLT-Mobitel, so they can accept payments from Visa cardholders easily and safely. With this, we aim to expand digital payment infrastructure, usage and acceptance across small merchants in Sri Lanka.”

The Sri Lanka Institute of Marketing (SLIM) recently unveiled Sri Lanka’s first Agri entrepreneurship programme in transforming today’s farmers into tomorrow’s Agripreneurs, a revolutionary step towards strengthening the Sri Lankan economy and to build 21st Century agricultural mindsets.

For the very first time in Sri Lanka six collaborative partners; Agripreneurs Forum, Federation of Sri Lanka local government authority, Ceylon Chamber of Commerce, Smallholder Agriculture partnership programme and the Export Development board joined hands with SLIM to build an elemental force to bridge the knowledge gap of the agriculture sector.

Five strategic partners; Mobitel, Keells, SDB Bank, Samaposha, CBL and Onish Agriculture joined forces to strengthen its national rollout strategy under Mobile and technology, Retail, Banking, CSR and Agri sector partnerships respectively.

The Certificate in Agri Business and Entrepreneurship (CABE) programme is also the first of its kind qualification available in Sri Lanka. The colorful grand launch took place with the patronage of Suresh De Mel, Chairman, Export Development Board, Andrea Bacarini, Public Economic Attache and Dr. Ravi Fernando, Chairman, Global Strategic Sustainability Pvt Ltd who graced the occasion as Chief Guest and the Guests of Honour respectively.

Agriculture is often seen as the backbone of the local economy even today. While Sri Lanka is rapidly urbanizing and shifting towards a service-economy, the country remains largely rural, and agriculture is still seen as an industry with a massive potential. In a lush tropical climate agriculture takes deep root and once brought Sri Lanka fame as the Granary of the East. Therefore, reaffirming SLIM’s commitment to strengthening the national economy and reviving local industries, the institute introduced this latest professional qualification.

CABE is a three-month qualification conducted in all three languages and the course is delivered through a blended approach—onsite and online sessions depending on the nature of the module. The onsite sessions will be carried out in the Uva and Central provinces as required. Furthermore, the course consists of 11 modules, which will be delivered in the form of interactive learning sessions and practical assignments.

Agriculture is connected and affected by many swirling forces of change like weather fluctuations, scarce natural resources and volatile commodity markets than most other industries, yet, it is also the lifeblood of the economy.

CABE offers the ideal learning experience for aspiring local entrepreneurs who have an insatiable appetite for innovation in the agricultural industry. The course covers the most important areas needed to pursue an agriculture based venture, including Agri Business Management, Entrepreneurship, Agriculture Marketing, Agriculture Finance, Legal Frameworks, People Management as well as Smart Agriculture. If you are an entrepreneur ready to take a leap of faith to build a thriving agri business, CABE is your stepping stone towards success. Commenting on the launch of CABE, Roshan Fernando, President, SLIM stated, “SLIM is committed to empowering local entrepreneurs to propel the national economy. Most importantly, we strive to strengthen local entrepreneurs and give them wings to reach the pinnacle of success so that they can become an invaluable asset to the national economy.”

“Agriculture is a mirror image of the prosperity and self-sufficiency of a nation. We believe that a fortified agriculture sector has the potential to lead the nation to the developed status as all of us wish. With the sustainable agriculture know-how gifted by our ancestors and our fertile soil, this island nation is meant to be a global leader contributing to tomorrow’s food requirement. Transforming our farmers’ commodity mindset to a 21st century value added mindset by cultivating the skill sets to compete in upstream international markets is the need of the hour.   CABE will bridge this knowledge gap by providing the foundation to build professionals in agriculture with a 21st century curriculum. Farmers as well as agri business owners will be developed as Agripreneurs who will be equipped with knowledge, skills and competencies to capture Global opportunities in the industry”, said Charaka Perara, Project Chair – Agri Saviya National Initiative

SLIM is the National body for Marketing in Sri Lanka and has been promoting marketing excellence and elevating the status of marketing since 1970. The Institute is a member of the National Chamber of Commerce of Sri Lanka (NCCSL), Organisation of Professional Associations of Sri Lanka (OPA), and Federation of Chamber of Commerce and Industry of Sri Lanka (FCCISL).

The Sri Lanka Export Development Board (EDB) organised an Export Marketplace (Product Pitching) programme coinciding with the International Women’s Day with the objective of enhancing the export market penetration ability of export-potential women entrepreneurs registered under “EDB Women Cell” on 8th March, 2021, at the Auditorium of Hector Kobbekaduwa Agrarian Research and Training Institute (HARTI). Indira Malwatte, Former EDB Chairperson, graced the occasion as the chief guest and during her speech, she emphasized the importance of government agencies including the EDB carrying out a sustained effort to nurture and encourage women entrepreneurs to achieve their potential. 

Addressing the event, EDB Chairman Suresh de Mel stated that the EDB as a government organization is committed to empower Sri Lankan women entrepreneurs in the global market. “The EDB has identified three areas to develop Women Entrepreneurship - Capacity Development, Products Development and Market Development – these are the main components women entrepreneurs need to be equipped with to be successful in the international market”, he observed. There are more than 850 women Entrepreneurs Island wide registered under the “EDB Women Cell”. Having analyzed their profiles, it was identified that there are some economic, social and physical barriers for them to enter the international market. Although they encounter several difficulties, they have failed to identify the bottlenecks which hinder them to enter the international market.

Therefore, it is important to guide them to find international market opportunities by introducing a marketplace which connects different providers of services that are critical to developing products for export. This marketplace mechanism supports strengthening the quality of the product, develop capabilities of new and existing exporters and aims to validate the relevance of climate smart practices and technologies for firms to reinforce their resilience and value proposition to more sophisticated buyer markets. The EDB organized Export Marketplace Programmes targeting export potential women entrepreneurs, from 2018 to 2020, coinciding with the International Women’s Day. In each programme, the best 3 entrepreneurs who presented the best marketing strategies were selected and cash awards were granted to obtain the services that are considered as key to expanding their business internationally. They have been successful in developing their businesses to suit the international markets.

Prior to the final programme on 8th March, 2021, a one-day ‘Knowledge Sharing Workshop’ on product pitching and developing a marketing plan was conducted for the selected women entrepreneurs on 4th March, 2021, by the EDB Coaching Team.

Sri Lanka’s leading financial conglomerate, LOLC was voted best by the people for the 5th consecutive year when it was crowned as the “Financial Service Provider of the Year” at the SLIM-Nielsen Peoples Awards 2021.

Norwegian Development Finance Institution, Norfund has stepped into infuse funding in National Development Bank PLC (NDB)  to overcome current challenges in the banking sector.  

NDB and the Norwegian Development Finance Institution, Norfund, have reached an agreement for Norfund to invest up to 9.99% in National Development Bank PLC (NDB).

Under this agreement, Norfund will participate in the Rights Issue for Rs 8 billion  that NDB has already announced by way of subscribing to unsubscribed rights and also by way of a private placement if required.

This investment is subject to other conditions, including regulator and shareholders approvals.

The investment comes at a time when international rating agencies have downgraded Sri Lanka’s credit rating.

This shows that Norfund endorses NDB’s resilience in a challenging environment and alignment to international standards, bank officials said.

NDB Chairman Eshana De Silva noted that “Norfund’s decision to invest in NDB shows the confidence they have in NDB and the Sri Lankan Economy.”

Group CEO of NDB Bank Dimantha Seneviratne commented that values Norfund will bring in terms of technical assistance, long term funding, know-how will help the bank and the country overcome the current challenges.

As NDB strives to improve financial inclusion by promoting digital technologies, Norfund can make available its experience and technical assistance to help NDB improve in this area.

The equity investment by Norfund is the first foreign equity placement agreement for NDB bank. This will increase its foreign shareholding percentage to around 21%.

The Private Placement is priced at a 10% premium to the Rights Issue at LKR 82.5 per share.

This equity infusion together with the proposed Rights Issue will help buttress the Tier I capital of NDB bank enabling it to continue its growth momentum and support the economic revival in a post COVID environment.