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People’s Bank reports strong performance for 1H’24

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September 02, Colombo (LNW): People’s Bank has announced its financial results for the first half of 2024, revealing a consolidated operating income of Rs. 44.6 billion and a post-tax profit of Rs. 3.2 billion.

When excluding exceptional adjustments, which were made in light of current macroeconomic conditions, the figures on a normalised basis stand at Rs. 62.6 billion and Rs. 12.7 billion, respectively, marking increases of 29.9 per cent and 104.2 per cent.

The bank’s consolidated net interest income increased to Rs. 35.0 billion, up from Rs. 31.4 billion in the same period last year.

On a normalised basis, the net interest margins improved to 3.2 per cent from 2.1 per cent, reflecting a decrease in term deposit costs.

Net fees and commissions grew by 19.3 per cent to Rs. 7.4 billion, while total consolidated operating expenses rose to Rs. 34.6 billion from Rs. 30.2 billion in 2023.

Customer deposits reached Rs. 2,885.6 billion by the end of June 2024, up from Rs. 2,745.2 billion at the end of 2023. Net loans also increased to Rs. 1,866.8 billion, compared to Rs. 1,823.8 billion at the end of 2023.

The impaired loan ratio improved relative to the previous year. Total consolidated assets rose to Rs. 3,364.1 billion from Rs. 3,208.2 billion.

The bank’s capital adequacy ratios were 11.5 per cent for Tier I and 15.9 per cent for total capital as of June 30, 2024, compared to 12.4 per cent and 17.4 per cent at the end of 2023.

On a consolidated basis, these ratios stood at 12.8 per cent and 16.8 per cent, respectively, down from 13.7 per cent and 18.2 per cent at the end of the previous year. Despite this, the bank’s solvency levels remain robust.

People’s Bank Chairman Sujeewa Rajapakse praised the institution’s resilience and growth potential. He stated, “The Bank continues to demonstrate its strength and capacity for growth across all core operational metrics. As we navigate the ongoing challenges of a recovering macroeconomic environment, our focus remains on innovation, collaboration, and advancing all aspects of our business.”

Chief Executive Officer/General Manager Clive Fonseka added, “The results for the first half of the year reflect our ability to progress despite significant difficulties. By focusing on operational efficiency, enhancing customer experience, and investing in technology and talent, we are well-positioned for sustainable long-term growth. We remain dedicated to driving innovation and transformative change to maintain our leadership in the industry.”

IndiGo launches daily flights to Jaffna, enhancing connectivity between India and Sri Lanka

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September 02, Colombo (LNW): Leading budget airline IndiGo commenced daily direct flights to Jaffna on Sunday (01), a historic city in Sri Lanka’s northern province.

This new route, marking the airline’s second destination in Sri Lanka after Colombo, is a significant addition to its expanding network, bringing the total number of international destinations to 34 and overall destinations to 122.

The introduction of this route aims to bolster cultural and economic ties between India and Sri Lanka.

According to Vinay Malhotra, Head of Global Sales at IndiGo, “This new flight is strategically important, aiming to boost trade and tourism between the two nations.

With a travel time of just 75 minutes between Chennai and Jaffna, we expect this service to meet the growing demand.”

In the past nine months alone, over 21,000 passengers have travelled the Chennai-Jaffna route, highlighting its strong demand.

The daily flights will depart Chennai at 13:55, arriving in Jaffna at 15:10. Conversely, flights from Jaffna will leave at 15:55, reaching Chennai at 17:10.

This new service is expected to stimulate both economic and cultural exchanges. Jaffna, renowned for its rich Tamil heritage and historical landmarks, offers visitors a glimpse into Sri Lanka’s diverse cultural tapestry.

Key attractions include the Jaffna Fort, a symbol of the region’s colonial history, and the Nallur Kandaswamy Kovil, a significant Hindu temple.

Beyond its economic impact, the new route is poised to strengthen social connections.

It will facilitate family reunifications, improve educational opportunities for students, and enable tourists to explore Jaffna’s unique cultural landscape.

Key suspects in ‘Club Wasantha’ murder case further remanded

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September 02, Colombo (LNW): Twelve individuals, including former Western Provincial Council member Amal Silva, have been ordered to remain in remand custody until 13 September 2024.

This decision was handed down by the Kaduwela Magistrate’s Court following their appearance in connection with the murder of businessman Surendra Wasantha Perera, alias ‘Club Wasantha’, and another individual.

Silva was apprehended on 29 August for allegedly aiding the second gunman and the driver involved in the fatal shooting that claimed Perera’s life.

The incident occurred on 8 July during the opening ceremony of a tattoo and piercing studio in Athurugiriya. Six people were injured in the attack, two of whom, including Perera, later succumbed to their injuries.

The second gunman and the driver were arrested on 28 August in Pinwaththa, Panadura, by the Panadura Police Divisional Crimes Detective Bureau. In total, 18 individuals, including a woman, have been detained in relation to the case.

Police Media Spokesman DIG Nihal Thalduwa revealed that more than 95 per cent of the investigation has been completed, with all principal suspects identified and in custody.

However, the investigation is ongoing due to suspected foreign involvement, potentially linked to international crime syndicates or drug networks.

Thalduwa suggested that some individuals involved in the crime may be hiding abroad, possibly connected to these global criminal organisations.

The incident sent shockwaves through the community, especially as it involved notable figures, including popular singer K. Sujeewa and Perera’s wife, who were amongst the injured.

The police investigation also led to the discovery of the van used by the suspects in Bulathsinhala and the car in Kaduwela, both abandoned.

SL’s Headline Inflation drops to 0.5% in August 2024

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September 02, Colombo (LNW): Sri Lanka witnessed a significant drop in headline inflation, as measured by the Colombo Consumer Price Index (CCPI), with the year-on-year rate plummeting to 0.5 per cent in August 2024 from 2.4 per cent in the previous month.

This sharp deceleration aligns with the Central Bank of Sri Lanka’s (CBSL) forecasts, reflecting ongoing efforts to stabilise the economy.

Food inflation saw a decrease, falling to 0.8 per cent in August from 1.5 per cent in July 2024.

Similarly, non-food inflation experienced a notable reduction, dropping to 0.4 per cent from 2.8 per cent during the same period.

On a month-on-month basis, the overall CCPI declined by 1.85 per cent, driven by a 0.64 per cent reduction in food prices and a 1.21 per cent decrease in non-food items.

In addition to these figures, core inflation—which excludes volatile items and offers a clearer view of underlying inflation trends—declined to 3.6 per cent in August 2024, down from 4.4 per cent in July.

Looking ahead, CBSL projects that headline inflation will remain well below the 5% target in the coming months, with expectations that, over the medium term, inflation will stabilise around the targeted level, supported by ongoing policy adjustments.

This decline in inflation is seen as a positive signal for the Sri Lankan economy, suggesting that efforts to manage price levels and economic stability are yielding results.

However, the situation will continue to be closely monitored to ensure that inflation remains within the desired range.

Dollar value against LKR at banks today (Sep 02)

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September 02, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates appreciation against the US Dollar today (02) in comparison to last week, as per leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 293.65 from Rs. 294.73, and the selling price to Rs. 304.19 from Rs. 305.31.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 293.20 from Rs. 294.14, and the selling price to Rs. 303.00 from Rs. 304.

At Sampath Bank, the buying price of the US Dollar has dropped to Rs. 294.50 from Rs. 295.50, and the selling price to Rs. 303.50 from Rs. 304.50.

SLPP Presidential Candidate unveils Election Manifesto ‘Namal Dekma’

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September 02, Colombo (LNW): Namal Rajapaksa, the Sri Lanka Podujana Peramuna (SLPP) Presidential candidate, revealed his election manifesto, titled ‘Namal Dekma’, at a formal event in Colombo today (02).

The manifesto outlines his vision and policy proposals for the country, as he seeks to gain support in the upcoming Presidential election.

The unveiling ceremony was attended by prominent figures within the Rajapaksa family and key political allies. Amongst the attendees were former Presidents Gotabaya Rajapaksa and Mahinda Rajapaksa.

Also present were former ministers Chamal Rajapaksa, Basil Rajapaksa, and Johnston Fernando, as well as the current Speaker of Parliament, Mahinda Yapa Abeywardena.

Customs destroys Rs. 75 mn worth of smuggled cigarettes

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September 02, Colombo (LNW): Sri Lanka Customs recently handed over three million illicit cigarette sticks, valued at over Rs. 75 million, to the Ceylon Tobacco Company (CTC) for destruction.

These cigarettes, seized in operations at Bandaranaike International Airport (BIA) during the first half of 2024, underscore ongoing efforts to combat illegal tobacco smuggling.

The smuggled cigarettes, primarily sourced from countries including the United Arab Emirates, Qatar, India, Cambodia, and China, were intercepted through the diligent efforts of the Border Risk Assessment Center (BRAC), which played a key role in identifying high-risk passengers.

The total evaded duties and levies for these contraband items were estimated at around Rs. 480 million.

Amongst the confiscated goods were several well-known and Chinese cigarette brands, which were forfeited under the Customs Ordinance after penalties were imposed on the individuals involved in the smuggling operations.

The destruction of these items is carried out under strict environmental regulations to ensure compliance with national laws.

Customs officials have highlighted this operation as part of a larger strategy aimed at curbing the illegal tobacco trade, which not only threatens public health but also disrupts the legal market.

Distribution of Presidential Election polling cards set to begin

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September 02, Colombo (LNW): The official polling cards for the 2024 Presidential Election will be handed over to the Postal Department today (02), the Election Commission announced.

Following this, the Postal Department will initiate the distribution of these polling cards to the residences of registered voters across the country.

Deputy Postmaster General Rajitha Ranasinghe confirmed that the delivery of the polling cards is scheduled to commence from tomorrow (03).

This marks a significant step in the electoral process, ensuring that voters receive the necessary documentation to participate in the upcoming election.

The timely distribution of polling cards is crucial for facilitating voter turnout and maintaining the integrity of the election process.

The Election Commission, in coordination with the Postal Department, aims to ensure that all registered voters receive their polling cards well in advance of the election day, allowing them ample time to verify their voting details and prepare to cast their ballots.

As the distribution begins, the authorities will closely monitor the process to address any issues that may arise, ensuring that every eligible voter is equipped with the necessary materials to exercise their democratic rights in the forthcoming election.

Election Commissioner clarifies rules on airtime usage for presidential candidates

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September 02, Colombo (LNW): Election Commissioner General Saman Sri Ratnayake has clarified that candidates in the forthcoming Presidential Election are prohibited from using their allocated airtime to promote other candidates.

He emphasised that each candidate must submit their television footage and audio recordings, containing the material they intend to present to the public, for prior approval by the Election Commission.

This statement was made during a media training workshop organised by the Intenivus Institute on 31st August at the Royal Mall Hotel in Kandy, where Ratnayake participated as a guest.

He pointed out that some candidates enter the race with the intention of backing another contender, leading to the introduction of this regulation based on experiences from previous elections.

Ratnayake further announced that, starting from 1st September, candidates nominated for the Presidential Election would be provided with the opportunity to address the electorate via radio and television channels.

This initiative aims to ensure that all candidates can communicate their platforms directly to the public, while maintaining fairness in the election process.

By enforcing these rules, the Commission seeks to prevent any misuse of media access that might skew voter perceptions or give undue advantage to certain candidates.

Colombo District Land Valuation Indicator rises by 6.9% in early 2024

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September 02, Colombo (LNW): The Land Valuation Indicator (LVI) for Colombo District recorded a 6.9 per cent year-on-year increase in the first half of 2024, reflecting growth across all land categories—Residential, Commercial, and Industrial.

Residential and Commercial LVIs both surged by 8.5 per cent, while the Industrial LVI experienced a more moderate rise of 3.7 per cent.

Compared to the latter half of 2023, the first half of 2024 showed stronger growth across the board, with the Industrial LVI trailing behind the other sectors.

This overall rise in land valuation indicates a robust demand for property in Colombo, driven by various economic factors influencing the real estate market.

The LVI, which evolved from the original Land Price Index (LPI), has been tracking land values in Colombo District since 1998. Initially, it covered five DS divisions on an annual basis but expanded in 2009 to include semi-annual updates.

In 2017, the index broadened its scope to encompass all 13 DS divisions within the district, establishing the first half of 2017 as its base period. In 2020, the LPI was rebranded as the LVI, continuing its semi-annual publication.

The LVI takes into account the diverse nature of land use in Colombo, with distinct sub-indicators for Residential, Commercial, and Industrial properties.

These sub-indicators are calculated based on the average per perch bare land price within each DS division, and the overall LVI is derived as a simple average of these sub-indicators.

This latest increase in the LVI underscores the continued demand for land across different sectors in Colombo, highlighting the district’s ongoing appeal for both residential and commercial development.

The industrial sector, whilst growing at a slower pace, still reflects a steady interest in land for manufacturing and other industrial activities.