By: Staff Writer

Colombo (LNW):The Colombo Port City Economic Commission (the Commission) yesterday announced that three leading commercial banks of Sri Lanka, the Commercial Bank, Hatton National Bank (HNB), and Sampath Bank, have been issued an Authorized Persons (AP) license from the Colombo Port City Economic Commission.

This significant development marks a major milestone in the development of the Colombo Port City SEZ as a premier international business and services hub in South Asia, a world-class project, transforming Sri Lanka’s economic landscape.

The Commission reiterated its strong commitment to collaborating with the Central Bank of Sri Lanka, the Securities and Exchange Commission, and the Insurance Regulatory Commission of Sri Lanka to ensure that robust and streamlined guidelines are in place to drive the success of the Colombo Port City as a premier multicurrency, export of services SEZ.

Breaking new ground on the nation’s economic revival, Sri Lanka’s leading private sector bank, HNB PLC became one of the first bank’s to be granted an Authorized Person (AP) License to operate within the Colombo Port City Special Economic Zone (SEZ)

The AP License was granted to HNB by the Colombo Port City Economic Commission following a series of strict evaluations, legal and preliminary regulatory approvals.

“As a heritage brand within the Sri Lankan economy, we have been present at the inception of every major pillar of the nation’s economic development, senior official of the bank said.

We are proud to continue that legacy today, as one of the first bank’s to receive preliminary approvals to operate within the Port City Colombo, he added.

Sampath Bank PLC has announced their first step in getting qualified as an Authorized Person and to be permitted to engage in offshore banking business in and from the area of authority of the Colombo Port City.

It will be receiving the Authorized Persons (AP) License from Colombo Port City Economic Commission (CPCEC) and Certificate of Registration as an Off-shore Company from Registrar General of Companies.

This is the first milestone after the receipt of Monetary Board concurrence in 2022 for the issuance of a banking license to engage in business under the Colombo Port City Economic Commission Act, No 11 of 202

As a systemically important bank that is deeply integrated with all facets of the domestic economy, we see Port City Colombo opening-up unprecedented opportunities for the nation, and its corporates.

By: Staff Writer

Colombo (LNW): Lion Brewery was recently recognised by Retail Asia as one of the key leading fast moving comsumer goods (FMCG) brands at this year’s FMCG Asia Awards.

Lion Brewery claimed a Gold Award in the Product Packaging of the Year – Sri Lanka segment for the repackaging of the Lion portfolio and Lion Ice extension which rolled out across its range this year.

The newly developed masterbrand approach strengthens the Lion brand with a cohesive and recognisable system that unites its exceptional beers under a single, strong narrative.

The goal was to rejuvenate the centenarian to lead new consumer segments and evolving market opportunities that are reshaping the beverage landscape and reflected in the company’s future plans and portfolio expansion.

The FMCG Asia Awards 2023 took place at the Sands Expo and Convention Centre at Marina Bay Sands on 23 November.

Organised by Retail Asia, the highly coveted awards program recognises the pioneers in the industry and celebrates excellence in introducing exceptional products or executing remarkable projects.

Lion Brewery’s Chief Sales & Marketing Officer Madhushanka Ranatunga said: “For us to win this Gold Award is the best recognition of the hard work and dedication put in by the entire Lion team.

With a clear intent and purpose, we aim to continue building our iconic Lion portfolio to drive value and resonate with the changing behaviours of consumers, while we remain true to the brand’s DNA.”

Lion Brewery is one of the largest apex investors in the manufacturing sector of the economy with its state-of-the-art brewery in Biyagama.

In addition to earning foreign exchange for the country’s Treasury, it has attracted foreign direct investment to Sri Lanka through Carlsberg’s equity stake in the business.

The Brewery is the second largest tax payer in the alcobev segment, contributing LKR 70 billion in the year ended 31 March 2023 while injecting LKR 16 billion to the economy through the purchase of goods and services excluding its contribution to the Government.

Lion Brewery was recently recognised by Retail Asia as one of the key leading fast moving consumer goods (FMCG) brands at this year’s FMCG Asia Awards.

Lion Brewery claimed a Gold Award in the Product Packaging of the Year – Sri Lanka segment for the repackaging of the Lion portfolio and Lion Ice extension which rolled out across its range this year.

The newly developed masterbrand approach strengthens the Lion brand with a cohesive and recognisable system that unites its exceptional beers under a single, strong narrative.

The goal was to rejuvenate the centenarian to lead new consumer segments and evolving market opportunities that are reshaping the beverage landscape and reflected in the company’s future plans and portfolio expansion.

The FMCG Asia Awards 2023 took place at the Sands Expo and Convention Centre at Marina Bay Sands on 23 November.

Organised by Retail Asia, the highly coveted awards program recognises the pioneers in the industry and celebrates excellence in introducing exceptional products or executing remarkable projects.

Lion Brewery’s Chief Sales & Marketing Officer Madhushanka Ranatunga said: “For us to win this Gold Award is the best recognition of the hard work and dedication put in by the entire Lion team.

With a clear intent and purpose, we aim to continue building our iconic Lion portfolio to drive value and resonate with the changing behaviours of consumers, while we remain true to the brand’s DNA.”

Lion Brewery is one of the largest apex investors in the manufacturing sector of the economy with its state-of-the-art brewery in Biyagama.

In addition to earning foreign exchange for the country’s Treasury, it has attracted foreign direct investment to Sri Lanka through Carlsberg’s equity stake in the business.

The Brewery is the second largest tax payer in the alcobev segment, contributing LKR 70 billion in the year ended 31 March 2023 while injecting LKR 16 billion to the economy through the purchase of goods and services excluding its contribution to the Government.

By: Staff Writer

Colombo (LNW):Sri Lanka apparel manufacturers are to strengthen vertical integration and import substitution of textiles as the way forward for the industry.

Fabric and Apparel Accessory Manufacturers Association (FAAMA) noted that the country currently imports most of its fabric requirements and raw materials, amounting to US$2 billion annually.

Asserting the importance of vertical integration, Fabric and Apparel Accessory Manufacturers Association (FAAMA) Chairman Sahan Rajapakse yesterday said that 50%-60% of Sri Lanka’s fabric requirement is imported.

This dependency on imports prolongs the industry’s lead times and impedes its ability to enhance speed and embrace agile models. Notably, over 40% of these imports consist of cotton, while 70% are composed of synthetic materials.

FAAMA is the governing body of fabric and apparel accessory manufacturers of Sri Lanka and a subsidiary of the Joint Apparel Association Forum (JAAF).

The association has over 40 member companies and is the unified voice for the apparel industry’s supply chain, aiding fabric and apparel accessory manufacturers to identify opportunities and work towards improving logistics, policies, and infrastructure.

Rajapakse stressed that bringing in supply chains within domestic factories will help reduce lead times and allow Sri Lanka to compete with countries that already have well-established vertical integration.

“Countries such as China, Vietnam and Bangladesh all have vertical integration in place. Having this vertical integration will allow investors to develop the product organically within the local supply chain, resulting in reducing freight charges.”

He reiterated that the fabric and cotton fabric industry have great potential for vertical integration. Currently, 40-50% of the required resources is supplied by companies like Hayleys Fabric, Teejay and Ocean Lanka.

The fabric and apparel accessory manufacturing industry is also in dire need of Government policy support given that it continually battles high electricity and water tariffs which have increased industry operational costs.

Rajapakse also highlighted the adverse impact of abolishing the Simplified Value Added Tax (SVAT) can have on the industry including jeopardising the cash flow of businesses.

The industry also sees immense potential for partnerships through foreign direct investment to capitalize on know-how on product and machinery development.

“The industry has not had much investment in the past few years,” states Rajapakse. “Improving Sri Lanka’s investment environment can certainly be a tool in strengthening Sri Lanka’s fabric and apparel accessory manufacturing industry and its supply chain.”

“The US market should be an industry goal while attempting to reach the skilled and ever-evolving markets of China and India.

By: Staff Writer

Colombo (LNW): Sri Lanka’s listed corporations are now recovering after the income recession experienced during the past few years.

First Capital Research makes bullish call on equities as they expect all share price index ASPI of the stock market to reach 13,500 at end 2024

It says corporate earning bottomed out in 3% when they slowed their decline to 5% while expecting 4Q 2024 earnings to record 1% growth from a year ago levels

First Capital Research (FCR) opined that corporate earnings bottomed out in the third quarter of 2023 when such earnings slowed their decline to 5 percent after slumping 65 percent and 70 percent respectively in the first and the second quarters this year, which were more severe than initially anticipated.

This in fact had a bearing on FCR’s 2024 year-end call for the All Share Price Index (ASPI) which they lowered to a range between 13,000 and 14,000.

“Market earnings are to recover from 4Q2023 onwards. However, market earnings for 2024E in absolute terms was tamed down amidst the steep drop in 2023 earnings, pushing the PER to 12x on 2023E earnings,” FCR said in their latest Equity Strategy Report released recently.

They expect the 4Q earnings to have recorded a 1 percent growth from a year ago levels, setting off a continued rebound in the quarterly earnings pushing the benchmark indices higher, making stocks again investable.

Their earnings forecasts are also in line with the growth anticipated in the economy which is expected to have rebounded from the fourth quarter in 2023, although the overall economy would still end up in a decline by about 3.0 to 4.0 percent compared to 7.8 percent contraction in 2022.

They also projected a 3-4 percent growth in the GDP in 2024 and 2025 as the economy gradually recovers from the economic crisis.

While the declining interest rates are going to be a major catalyst for the equities to perform better as expected, FCR however highlighted potential political risks coming from the scheduled elections next year to somewhat dampen the rally and investor sentiments.

They also said the potentially successful completion of the external debt restructuring, progress on State owned Enterprise reforms and the release of the second tranche of the International Monetary Fund will also influence in building investor confidence and bringing the yields of the government securities further down.

Due to their bullish calls for equities, FCR recommended equity funds to raise their equity exposure to 100 percent from their earlier 85 percent while reducing their cash exposure to zero.