Nations Trust Bank PLC (NTB) continued its steady performance to close the financial year ending December 2022 with an Operating Income of LKR 38.8Bn, reflecting a solid growth of 67% year-on-year (YoY).

Carefully navigating the challenging socio-economic environment, the Bank posted a Profit Before Tax of LKR 13.4Bn, a notable growth of 29% and Profit After Tax of LKR 7.2Bn, an increase of 8%, YoY, thereby reporting a record year for the Bank.

Commenting on the results, Hemantha Gunetilleke, Director & Chief Executive Officer of Nations Trust Bank said “We have delivered a strong full year result, building on the trend demonstrated through 2022 with a PBT of LKR 13.4Bn and a PAT of LKR 7.2Bn.

These results underpin the fundamental strengths of the Bank’s Liquidity, Capital Adequacy and Risk Management Framework.

These strengths along with a focus on digital innovation, teamwork and adherence to prudent banking practices, ensured that we were able to consistently provide banking service excellence to our customers despite the challenging external environment”.

Interest rate movement and margin expansion during the year resulted in strong Revenue growth of 67%. Operating Expenses were carefully managed throughout the year resulting in Total Operating Expenses increasing by only 27% YoY despite the high inflationary environment.

Gains in Operating Income were negated to some extent by the sharp rise in Impairments. The Bank’s impairment provisions relating to loans, advances and sovereign bonds, rose 270% YoY.

Provisions were impacted by negative flows from moratorium loans and the overall deterioration in credit quality across most loan portfolios due to the weak economic environment.

The Bank’s exposure to foreign currency denominated security instruments issued by the Government of Sri Lanka were relatively low at 2.6% of the total assets.

Appropriate impairment provisions were made by the Bank on these instruments in line with the industry, considering current economic conditions.

The Bank’s overall tax expense grew by 68% during the reporting period due to higher profits, increased corporate tax rates, VAT on Financial Services and the effect of tax reversals recorded in 2021.

Nations Trust Bank PLC serves a diverse range of customers across Consumer, Commercial and Corporate segments through an island wide network of 96 branches.

The bank is focused on digital empowerment through cutting-edge digital banking technologies, and pioneered FriMi, Sri Lanka’s leading digital banking experience.

Nations Trust Bank PLC is an issuer and sole acquirer of American Express Cards in Sri Lanka with market leadership in the premium segments.

Sri Lanka is likely to fall into darkness soon after the lifting of power cuts after increasing electricity tariff by 66 percent recently not because of shortage of coal or fuel to run power plants by due to the dearth of qualified and experienced in engineers owing to brain drain, energy ministry sources said.

At least 72 engineers of the Ceylon Electricity Board (CEB) and 22 of them were attached to Norochcholai power plant have left the board for greener pastures overseas owing to high taxation and sky rocketing of cost of living in the country a senior official of the ministry said.

This has led to a threat of shutting down the coal power plant causing loss of 540 mega watts to the national grid, he said adding that this situation will prompt the CEB to resume power cuts in the island once again, co; secretary of the CEB engineers union Isuru Kathuriratne said.

Services of 123 engineers are needed to maintain the daily operation of the Norochcholai power plant but only 100 of them are engaged power plant operation at present , he disclosed.

If this situation is continued the CEB has no option other than the shut down of the powerplant paralyzing the power supply he pointed out. .

After a year of load-shedding, Sri Lankans l get continuous power supply recently with a hike in tariff in line with the conditions set by the IMF.

The Sri Lankan government’s move comes as the debt-hit country aims to secure a much-needed US$ 2.9 billion bailout loan from the Washington-based global lender.

President Ranil Wickremesinghe has directed officials to ensure an uninterrupted power supply to customers after the tariff revision is implemented, a statement from the President’s Media Division said.

Without increasing tariffs, the engineers have proposed several policy changes including utilizing the extra hydropower which saved hydropower reservoirs for drinking and farming during the dry season by changing the current minimum level.

Since during monsoons, the majority of these reservoirs reach spill level or spilled over without the saved water being utilized for any purpose.

Further, the Government can introduce a tax concession for solar power users as a concession for solar batteries to save solar power to use during the night-time.

“There are over 30,000 rooftop solar panels that are without batteries due to the high cost given the taxes. If the Government can introduce a tax concession, many would shift to solar, which would contribute to the national grid as well,” he said.

The CEB anticipated a loss of Rs. 152 billion by the end of this year, despite electricity tariff reforms that were implemented in August.

According to the ministry statistics, the CEB has incurred a loss of Rs. 108.6 billion in the first eight months of this year. The CEB expects an additional income of Rs. 15 billion following August’s tariff revisions last year.

No doubt the Sri Lanka Egg and Poultry industry is in deep crisis that has added another mind boggling issue to the government already saddled with many burning problems completing it to import eggs from India as the last resort.

The Finance Ministry said the Special Commodity Levy has been reduced from Rs. 50 to Rs. 1. The levy has been reduced for a period of three months from 21 February.

People fear that this may be another sugar scam type deal of throwing dust in the eyes of the people under guise of bringing down prices and tackling shortage in the market.

Egg prices are skyrocketing which cannot be controlled with the shortages of in the essential commodities in the market.

A shipment of 2 million eggs imported from India by the Sri Lanka State Trading Corporation will arrive in the island with in the next few weeks a sthe stock eggs has been shipped on Thursday 23 from India.

The General Manager of the Sri Lanka Sate Trading Corporation Chimala Iddamalgoda said that the selling price of imported egg will be in the region of Rs 40 and the whole stock will be soald to local bakeries badly affected by the shortage.

Egg producers in the island had rejected the government’s request to reduce egg prices. The government’s decision to impose a ceiling resulted in many poultry producers not supplying eggs to the markets until the prices increased.

The island has been facing a shortage of poultry eggs which resulted in a price hike. Earlier in January egg prices had risen to over 70 Lankan rupees per egg.

Egg producers in the island had rejected the government’s request to reduce egg prices. The government’s decision to impose a ceiling resulted in many poultry producers not supplying eggs to the markets until the prices increased.

Ahead of the two million eggs cargo from India this weekend, the Government has slashed the Special Commodity Levy on imported eggs.

The Finance Ministry said the Special Commodity Levy has been reduced from Rs. 50 to Rs. 1. The levy has been reduced for a period of three months from 21 February.

This has raised eyebrows of many as there were allegations of the involvement of Trade Minister’s close relative behind the deal of indian egg imports and the tax reduction Rs 49 per egg will deprive of the tax revenue of Rs980 million in single shipment for the state coffers.

This was imlar to the sugar scam which deprived the government of tax revenue of a whopping Rs. 16.763 Billion by the reduction of the special commodity levy imposed on imported sugar from Rs. 50/- per kilogram to Rs. 0.25/- per kilogram some times back.

The Department of Animal Production and Health however refused to grant permission to import eggs from India citing concerns over prevalent Avian influenza or bird flu cases.

Sri Lanka’s Trade Minister Nalin Fernando said that eggs will be sold for a price between Rs. 40/- to Rs. 42/-.

He said that 20% of the domestic requirement will be imported, and the ministry is in possession of the necessary funds for the imports.

The Chairman of the All Ceylon Egg Producers Association said that importing eggs would put the local industry at risk.