v2025 (2)

v2025

Business

Sri Lanka faces a severe shortage and price hike in tyres

Sri Lanka is facing a severe shortage and price hike in tyres as a direct result of the government’s import restrictions without providing any substitutions, industry leaders said.
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EDB conducts Export Marketplace programme for women entrepreneurs

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.

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LOLC wins People’s Choice accolade for 5 years in a row

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.

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NDB gets over 9 percent financial infusions from Norwegian fund 

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.

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FCCISL all set to conduct the '24th Sri Lankan Entrepreneur of the Year' awards

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.

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WindForce Ltd goes for Rs. 3.2 billion expansion locally and internationally

Sri Lanka’s biggest renewable energy firm Wind Force Ltd., announced a Rs. 3.2 billion expansion both locally and internationally, funds for which will be sourced via the Initial Public Offering (IPO) now open for subscription.

Founded in 2010 by Akbar Brothers Debug Computers and Hirdaramani Group, who invested in renewable energy as a diversification strategy, WindForce is a pioneer and the largest producer of renewable energy in SL, apart from the first local firm to expand overseas, company officials said.

Starting with two 10 MW wind-power energy plants in the Puttalam district, Wind Force has since grown its footprint as well as expanded to solar and mini-hydro, both in SL and overseas.

At present, it operates 27 power plants (solely and jointly owned) with an installed capacity of 218 MW of which, 55.4% or 120.8 MW is based in SL and the rest in Uganda, Pakistan and Ukraine.

The 218 MW comprises 70 MW of wind plants, 122 MW of solar and 26 MW of small hydro power.  

Their first overseas venture was in Pakistan, where it operates a 50 MW solar power plant among others.

“We want to share the future journey with the rest of Sri Lankans and overseas investors in Colombo stock market,” WindForce Chairman Ranil Pathirana said.

The IPO offers a 15% stake or 202,615,341 new ordinary voting shares at Rs. 16 per share and aims to raise Rs. 3,241,845,456.

The Joint Managers and Financial Advisors to the issue are CT CLSA Capital and Capital Alliance Partners.

The official opening of the IPO is 24 March, but investors can subscribe to it now. WindForce has been issued a [SL] AA- (stable) credit rating by ICRA Lanka, which is the highest rating given to a corporate in SL at the time of the issuance by ICRA Lanka.

Of the IPO funds, WindForce plans to allocate Rs. 2.3 billion as equity investment for two new projects – Rs. 927 million for a 15 MW wind power plant in Mannar and Rs. 1.4 billion for a 30MW solar power plant in Senegal.

Remaining funds of Rs. 932 million will be utilised for future projects the company intends to undertake in SL or in other countries. The total installed capacity of the company will increase from 218 MW to 263 MW with the completion of the projects in the pipeline, which would further strengthen the Company’s position as the largest renewable energy Independent Power Producer (IPP) in SL and one of the largest in the region.

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HUTCH demonstrates fastest 5G experience in Sri Lanka

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.

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'Syngco’ and ‘Platned’ merged to integrate cloud based IT systems  

‘Syngco’ and ‘Platned’, two well established IT companies in UK and Sri Lanka respectively have partnered to form Platned Syngco Consultancy Services Ltd to serve the IFS ERP market in Australia, company officials said in a media release.

IFS application is a cloud-based enterprise resource planning (ERP) solution that helps businesses to integrate data and processes across multiple departments and locations.

ERP market in Australia is currently experiencing a vast need for ERP solutions as more and more firms are adapting to cloud based and hybrid ERP systems for operational efficiency, they added.

By joining forces the company has  made a huge leap in the combined quality and strength of the team expanding its operations recently in Singapore as well ,media release quoted  Chamara Arunoda, the CEO and Co-founder of Platned Syngco as saying.

PS had recently opened a new office in Singapore and now it has a presence in the UK, USA, Australia, Sri Lanka, Singapore and China, he added.

Syngco has been providing IT applications, security solutions and cloud services to a vast clientele in the UK and Europe for over 9 years, whilst Platned has been providing ERP Application consultancy and Oracle DBA support to clients in UK, USA and Australia for over 4 years.

PS has secured global partnerships with leading ERP solution providers – IFS, Infor and Acumatica; whilst offering infrastructure services and cloud hosting services from Microsoft Azure and Amazon Web Services, he disclosed.

The new merged entity Platned Syngco (PS) Ltd has launched its expansion in Sri Lanka shifting its local office to its brand-new premises at No. 288/11, Makumbura, Pannipitiya, close to the Makumbura Multimodal Transport Hub,Mr. Arunoda, said.

For companies planning Digital Transformation, PS offers specialised Consulting, Customised Solutions and Services to accelerate the journey and achieve their goals, he emphasised.

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EDB  promotes specific products in Japan with USD 230 million export target      

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.

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Araliya Group takes bold stride towards expanding its hotel chain

Araliya Group of companies is now ready to expand its hotel room capacity to 1,014 rooms following the opening of 304 roomed Unawatuna luxury beach hotel in Galle on March 20.

The 14 storied new luxury beach resort and spa was built at a cost of USD 17.12 million in the back drop of world renowned Rumassala sanctuary, Unawatuna beach and exotic coral reef with the aim of becoming the number one iconic hotel in Asia, Araliya rice brand business tycoon Dudley Sirisena said.

Unawatuna is one of the ten best and most charming seashores in the world and it was one of the reasons of proving the claim of Asia’s number one hotel, he ascertained.  

"There is simply no way around it as COVID-19 will continue to figure in Sri Lanka‘s future of the hospitality industry amidst zero tourist arrivals for eight consecutive months since the end March last year. Somebody should dare to come up with positive mind set pinning hope for the initial rebound in travel demand pick up slowly, but surely in many destinations including Sri Lanka within a month or two," he said.

Therefore, hoteliers should take necessary, measures to be well prepared for recovery, while also devising proper revival strategy with positive expectations, he added.

“Providing an upscale, luxury hotel experience while implementing safety measures during Covid-19 pandemic is no minor matter," he said, adding that he has already opened Araliya Red Hotel in the picturesque surroundings and the natural beauty of Nuwara Eliya and its race course.

The Araliya Group continues its hotel network expansion with the plan of building 40 room extension to Milton hotel in Unwatuna, Galle with a day/night food court and Irish pub especially for the benefit of local travelers.

The modern food court with all facilities will cater to the needs of travelers using Galle road to visit their home villages and towns in the South, Sirisena said, adding that this will be most probably his last project before bidding adieu to his business empire.

However, environmentalists and politicians are vehemently protesting against these mega hotel projects claiming that an environmentally exotic and highly receptive areas  in the South and Up country were being severely devastated by these initiatives.

Rejecting allegations of environmental destruction, Dudley Sirisena noted that these projects had been carried out following all environmental conservation guidelines with the clearance and approval of relevant government institutions including the coast conservation department.

He told the Business Times that “every good or bad thing has an equal and opposite reaction and he has nothing more to say other than the present plight of Sri Lankans was the result of that reaction."

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AGRI SAVIYA – SLIM unveils Sri Lanka’s first agri business management and entrepreneurial programme

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).

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Ceylinco Life records income of Rs. 36.98 bn in 2020

Ceylinco Life has achieved consolidated income of Rs. 36.98 billion for FY 2020 showing the company’s ability to grow business volumes and investment returns even in the most challenging conditions.

This top line growth of 15.2 per cent was made possible by Gross Written Premium Income of Rs. 22.07 billion for the 12 months ending December 2020 – an increase of 17.9 per cent over 2019 – and investment and other income of Rs 14.9 billion, which was up 11.3 per cent, Sri Lanka’s top life insurance leader said in a media release.

The growth in life insurance business resulted in Ceylinco Life retaining its position as the market leader in Sri Lanka’s life insurance sector for the 17th consecutive year, it said.

Ceylinco Life paid Rs. 12.2 billion in net claims and benefits to policyholders for the year under review, an increase of 15.7 per cent over the preceding year, and transferred Rs. 9.42 billion to its life fund, which grew by 10.94 per cent to Rs. 106.74 billion as at end December 2020.

The company’s total assets grew by Rs. 17.6 billion over the year at a monthly average of more than Rs. 1.4 billion to cross the milestone of Rs. 150 billion at the end of the year, while its investment portfolio recorded an increase of 14.36 per cent in value over the 12 months to reach Rs. 133.7 billion as at end December 2020.

“We attribute our strong top line growth to the company’s agile and speedy acclimatisation to the so-called new normal environment thrust upon us by the global pandemic,” Ceylinco Life Managing Director/CEO Thushara Ranasinghe said. “Technology, determination and innovation kicked in at very short notice, enabling us to keep selling life insurance, process and settle claims, and develop new products, while managing our investments strategically and tactically for best returns. The effects of the pandemic continue to impact the business, but we are confident that our systems and the team’s spirit will keep us on the path of growth.”

Ceylinco Life transferred Rs. 4.1 billion to the shareholders’ fund in respect of the 12 months, increasing the shareholder fund to Rs. 38.1 billion at the end of the year.

The company posted profit before tax of Rs. 8.77 billion for FY 2020, reflecting an increase of 6.75 per cent over the previous year. Net profit after tax for FY 2020 was Rs. 6.93 billion and reflected an increase of 3.93 per cent over the previous year

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