June 24, Colombo (LNW): Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe expressed optimism about Sri Lanka’s economic prospects for 2024, forecasting positive annual economic growth for the first time since the onset of the economic crisis.

Speaking on Ada Derana’s current affairs programme “At HydePark“, Weerasinghe emphasised the importance of sustaining the current trajectory of economic recovery.

He highlighted that Sri Lanka is nearing the completion of its debt restructuring programme and has made significant strides towards achieving short-term economic sustainability.

Looking ahead, the Governor stressed the necessity of aiming for an annual economic growth rate of between 4 per cent and 5 per cent in the coming years as part of the country’s long-term economic revitalisation strategy.

He underscored the importance of safeguarding the gains made in the short term through the restructuring programme.

By: Staff Writer

June 24, Colombo (LNW): SriLankan Airlines will spread its wings across the Middle East region after acquiring more aircraft on lease this year to strengthen its fleet, its top official says.

Richard Nuttall, chief executive officer of SriLankan Airlines, said fleet modernisation plays an important role in the carrier’s turnaround as well as caters to growing passenger demand in the region.

He said the airline will strengthen its current fleet of 21 to 22 in July, with plans to add three more aircraft within the next three months to increase the tally to 25 aircraft this year.

“We are aiming to boost SriLankan Airlines fleet with more leased aircraft that will help increase frequency on existing routes as well as add two or three new routes.

The airline will place major orders for fleet replacement after its restructuring is completed under the International Monetary Funds (IMF) programme,” Nuttall told Khaleej Times during his recent visit to Dubai.

Nuttall was in Dubai to attend the International Air Transport Association’s 80th annual general meeting and World Air Transport Summit in Dubai. He joined SriLankan Airlines as the chief commercial officer in November 2021 and was promoted to the position of chief executive officer in April 2022.

Nuttall, an industry veteran, has a wealth of airline industry experience spanning three decades and five continents, having held multiple chief officer and board positions in aviation companies across the globe. He has previously worked for Saudiair.

Bahrain Air, Royal Jordanian, Kenyan Airways and Philippine Airlines, has an exceptional record of delivering performance improvement and driving sustainable growth.

“I’m confident of rosy outlook of SriLankan as it continues to make significant strides in the airline industry despite a challenging environment. We’ve been focusing on strategic initiatives to improve the airline’s operations, enhance customer experience, and expand its global reach with the addition of new aircraft this year,” Nuttall said.

The 57-year-old chief executive from Yorkshire, England, expertise includes airline turnarounds; restructuring; strategy development; mentoring; global leadership; revenue management; network planning; airline distribution and sales and digital strategy.

Nuttall said the privatisation of SriLankan is a part of the country’s IMF programme under which its balance sheet will be improved by restructuring the airline’s debt.

“The government is working on a comprehensive strategy to support the airline through debt restructuring and then find a suitable buyer. It is a time-taking process and I’m unable to give any time frame when it will be completed,” he said.

In reply to a question, he said the government has shortlisted three potential investors out of six candidates who submitted their expressions of interest in April.

“The government is now talking to three shortlisted companies and we’ll see what happens in coming months. One of the consortium involves Qatari [Not Qatar Airways] and Indian investors who are keen to buy a majority stake in SriLankan Airlines,” he said.

VALLIBEL FINANCE PRESS RELEASE:

• PBT grow to Rs. 4.6 billion by 68.1%  
• Assets amass to Rs. 93.2 billion by 13.2%  

Jayantha S.B. Rangamuwa

Managing Director

Spearheading financial inclusion in Sri Lanka for the past 17 years as one of the foremost NBFIs, Vallibel Finance delivered a definitive financial performance for the fiscal year 2023/24, demonstrating its dynamic industry leadership yet again. .

The Company recorded a pre-tax profit of Rs. 4.6 billion (68.1% increase yoy) in comparison with Rs. 2.7 billion recorded in 2022/23 In alignment with our unwavering commitment to economic development and national growth, Vallibel Finance is pleased to announce the payment of Rs. 2.5 billion in Corporate Income Tax and Taxes on Financial Services for the fiscal year 2023/24 which is 50% of the total profit. This reflects a significant increase from the Rs. 1.4 billion paid in the previous fiscal year 2022/23.

As of 31st March 2024, total income surged to Rs. 20.03 billion, from Rs. 16.70 billion in 2022/23, primarily driven by revenue from loans and advances. The Gross Loan Portfolio experienced a remarkable turnaround, achieving an 11.2% growth. This growth underscores the strong trust our customers place in the Vallibel brand. All Key Performance Indicators (KPIs) exhibited robust expansion, including fixed deposits, lending, the pawning portfolio, and overall profitability.

The NPL ratio, a measure of nonperforming loans, decreased to 5.88% at the year-end, compared to the 6.16% recorded at the end of the previous financial year.  The NPL ratio continues to be significantly lower than the industry average, which is a testament to the company’s strict risk management practices.A 59.9% increase was recorded in Earnings Per Share (EPS) in 2023/24 compared toprevious financial year from 54%. Rs. 5.69 recorded during the previous year.

The prevailing economic conditions challenged the financial stability of some customers and Vallibel Finance exhibited a strong customer focus to alleviate their financial burdens to the greatest extent possible by restructuring customer debts to better reflect their cash flowsthroughloan re-scheduling. 

Further, the trust placed with our customers resulted in the expansion of our deposit base to Rs. 58.6 billion, From Rs. 49.6Bn marking a growth of 18.1% in the the2022/23 financialyear. The Company’s total assets increased by 13.2% to Rs. 93.17 Bn compared to the Rs. 82.32 Bn recorded in the previous financial year. Despite facing challenges, the Company’s balance sheet remains robust, a testament to our prudent asset and liability management strategies. 

The Managing Director of Vallibel Finance Jayantha Rangamuwa, commented, “Achieving this milestone despite headwinds reflects the robust nature of our people and processes, backed by digital technology and data-driven insights. I am heartened by the selfless contribution by the entire staff in surpassing the targets set for the year. Our closeness to our customer base continues to deepen withthe opening of new branches during 2023/24 to make our services accessible to more Sri Lankans.”

In an endorsement to its robust financial management and strategic planning, Vallibel Finance secured a BBB+ credit rating from the Lanka Rating Agency during the year under review – a powerful validation of its sound business practices. Furthermore, Vallibel Finance also emerged as the Best Finance Company – Sri Lanka Global Economics Awards for the third consecutive year in 2021, 2022 and 2023, which is a notable achievement. It stands as a testimony to the company’s pursuit of excellence despite extenuating circumstances. The award also serves as powerful inspiration for the company to achieve new milestones.

The Vallibel Finance state-of-the-art corporate office within the greater Colombo area shines like a beacon in the skyline, reflecting its unwavering responsibility to excellence and innovation.This state-of-the-art office complex is positioned to be a symbol of excellence within the financial services industry serving as another remarkable milestone for Vallibel Finance as it reiterates its commitment to driving financial sustainability in the country.

By: Staff Writer

June 24, Colombo (LNW): President Ranil Wickremesinghe reaffirmed Sri Lanka’s commitment to a robust partnership with India to achieve the development goals, highlighting the urgency to expedite joint initiatives.

Speaking at the 31st All India Partner’s Meet 2024 (AIPM 2024) held at ITC Ratnadeepa in Colombo over the weekend, the President outlined a transformative agenda focused on bilateral projects, particularly in the energy sector, to foster development in the Northern region affected by decades of conflict.

The AIPM 2024, organised by KPMG Sri Lanka and KPMG India, provided a platform for reaffirming collaborative projects aimed at redefining bilateral relations and driving socio-economic growth. The event, attended by over 600 Indian Partners and their families, celebrated past achievements and discussed future plans.

President Wickremesinghe acknowledged India’s crucial US $ 3.5 billion loan that helped Sri Lanka navigate two difficult years, underscoring plans to repay the debt, including the $ 200 million loan from Bangladesh.

Highlighting the recent successful IMF Board of Directors meeting, President Wickremesinghe announced ongoing preparations to meet with creditor nations, including the Paris Club, India, and China’s Exim Bank. ”We hope to conclude discussions and move from bankruptcy to the next phase of economic recovery soon,” he stated.

The President emphasised a shift towards a competitive, export-oriented economy. ”We are enacting legislative economic policies to steer this transition, aiming for a digital, green, and export-oriented economy,” he said, adding that the Economic Transformation Bill, currently under pre-legislative scrutiny, outlines these policies and establishes new institutions to drive investment and productivity.

During his recent visit to Delhi, Wickremesinghe discussed accelerating joint programs with Prime Minister Modi, focusing on key projects. These include the grid interconnection between Sri Lanka and India for sustainable energy transmission, the Sampur solar power project, and large-scale renewable energy projects in the Northern Province.

“Developing the Northern Province, worst affected by the wars, through these energy projects is a priority,” he stated. Discussions also covered expanding the Kankesanthurai port and airport development in collaboration with India.

In the dairy sector, the National Livestock Development Board of Sri Lanka is collaborating with India’s Amul Dairy Company to enhance liquid milk production.

President Wickremesinghe also highlighted discussions on land connectivity between Sri Lanka and India, expediting the Trincomalee Development Project, and constructing a multi-product oil pipeline from Nagapattinam to Trincomalee, aiming to transform Trincomalee Port into a significant hub on the Bay of Bengal.

 “The entire East Coast is being opened up for tourism, with plans for more investment zones and professional training programs in collaboration with India,” he added.

June 24, Colombo (LNW): The Sri Lankan Rupee experienced a modest appreciation against the US Dollar on June 24 compared to last Thursday, as per the official exchange rates released by the Central Bank of Sri Lanka.

Despite this change, the buying price of the US Dollar remains in the Rs. 300 range.

The buying price for the US Dollar has decreased slightly to Rs. 300.56 from Rs. 300.63, and the selling price to Rs. 309.88 from Rs. 310.05.

In addition, the Rupee has appreciated against a range of foreign currencies but has shown a general depreciation against Gulf currencies.

June 24, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates appreciation against the US Dollar today (24) in comparison to last week, as per leading commercial banks in Sri Lanka.

At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 299.64 from Rs. 300.03, and the selling price to Rs. 309.79 from Rs. 310.19.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 298.82 from Rs. 299.31, and the selling price to Rs. 309 from Rs. 309.50.

At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 300.50 and Rs. 309.50, respectively.