March 05, Colombo (LNW): Basil Rajapaksa, former Sri Lankan Minister and Founder of the Sri Lanka Podujana Peramuna (SLPP), returned to Sri Lanka this (05) morning after a trip to the United States of America following the change in government.
Upon his arrival, Rajapaksa mentioned to reporters that no official decision has been made regarding candidates for the upcoming elections.
He stated his commitment to leading the SLPP’s preparations for elections regardless of their nature.
March 05, Colombo (LNW): The Ceylon Petroleum Corporation (CEYPETCO) has announced a reduction in fuel prices effective from midnight on March 04.
Petrol 95 Octane will now be priced at Rs. 447 per litre, reflecting a decrease of Rs. 9, while Super Diesel will be priced at Rs. 458 per litre, marking a reduction of Rs. 10.
Similarly, the price of Kerosene has been reduced by Rs. 5 to Rs. 257 per litre.
However, the prices of Petrol 92 Octane and Auto Diesel will remain unchanged, as confirmed by the CPC.
Furthermore, Lanka IOC has announced its intention to adjust retail fuel prices in alignment with CEYPETCO’s revisions.
Additionally, both Lanka IOC and Sinopec have committed to aligning their retail fuel prices with those set by CEYPETCO.
By: Isuru Parakrama
March 05, Colombo (LNW): Mainly fair weather will prevail in most parts of the island, the Department of Meteorology said in its daily weather forecast today (05).
Misty conditions can be expected at some places in Western and Sabaragamuwa provinces during the morning, the statement added.
Meanwhile, the natural hazards early warning centre of the Department stated that the heat index, the temperature felt on human body, is expected to increase up to ‘Caution level’ at some places in Western, Southern provinces and in Rathnapura District.
Marine Weather:
| Condition of Rain: |
| Mainly fair weather will prevail sea areas around the island. |
| Winds: |
| Winds will be easterly to north-easterly in the sea areas off the coast extending from Mannar to Matara via Kankasanthurai, Trincomalee, Pottuvil and Hambantota, and winds will be south-westerly or variable in direction in the other sea areas around the island. wind speed will be (20-30) kmph. |
| State of Sea: |
| The sea areas around the island will be slight to moderate. |
March 04, Colombo (LNW): The Ceylon Electricity Board (CEB) has concluded the fiscal year 2023 with substantial profitability, as indicated by unaudited interim financial statements submitted to the Colombo Stock Exchange (CSE).
The Group reported profits of Rs. 75.7 billion, with the Board recording Rs. 61.2 billion in profits.
This positive financial performance can be attributed to several factors, including increased rainfall from September and a tariff hike implemented in the fourth quarter of 2023.
Even without the beneficial impact of heightened rainfall, which decreased reliance on oil and coal-based generation, CEB would have still generated profits of approximately Rs. 40 billion.
In terms of revenue, the Group garnered Rs. 679 billion during the fiscal year, resulting in a gross profit of Rs. 132 billion and an operating profit of Rs. 143 billion.
Distribution costs saw a reduction of 13.7 percent, while other expenses decreased by 15.3 percent.
Additionally, finance income expanded by 29 percent, albeit with a 42.8 percent increase in finance costs.
However, recent scrutiny by the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis revealed that CEB had notably overestimated the costs associated with electricity production and transmission for the year 2024.
The overestimation amounts to approximately Rs. 140 billion, underscoring the need for accurate financial forecasting and management within the institution.
March 04, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates further appreciation against the US Dollar today (04) in comparison to last week’s Friday, as per the official exchange rates of the Central Bank of Sri Lanka (CBSL).
Accordingly, the buying price of the US Dollar has dropped to Rs. 303.81 from Rs. 304.71, and the selling price to Rs. 313.41 from Rs. 314.23.
The Sri Lankan Rupee indicates similar pattern against several other currencies as well.
March 04, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates further appreciation against the US Dollar today (04) in comparison to last week’s Friday, as per leading commercial banks in the country.
At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 303.27 from Rs. 303.52, and the selling price to Rs. 313.84 from Rs. 314.10.
At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 301.18 from Rs. 302.66, and the selling price to Rs. 312 from Rs. 313.50.
At Sampath Bank, the buying price of the US Dollar has dropped to Rs. 303.50 from Rs. 304.50, and the selling price to Rs. 312.50 from Rs. 313.50.
By: Staff Writer
March 04, Colombo (LNW): With a history of over 45 years, the Expolanka Group has transformed itself into a leading logistics company with an international presence spanning 39 countries.
Being a supply chain specialist, the company is one of the leading service providers to the export industry in Sri Lanka and generates a significant share of its earnings in foreign currency.
With its global presence and international customer base as well as with its multi-cultural work force, The Expolanka Group is one of the few Sri Lankan companies that has been able to expand globally.
Supported by capital infused by its parent company, SG Holdings Global Pte Ltd, as and when needed, the Company has grown amidst turbulent times. SG Holdings Global Pte Ltd, which made its initial investment in EHL in 2014, currently owns 82.43% of the shares of the Company.
The challenging global macro environment and the accompanying geopolitical tensions have resulted in a significant bottleneck for the Group to continue with its expansion drive.
The recent financial performance of the company has been greatly impacted by these challenges and has consequently resulted in a period of earnings volatility.
Notwithstanding the earnings volatility in the recent past, EHL’s parent company has plans for EHL to focus on its core business and grow its international operations.
In those circumstances, the capital requirements for Expolanka Holdings will become increasingly international in nature requiring it to raise capital from outside of Sri Lanka and in foreign currency, which borrowings would result in increased gearing and a high forex risk to the local minority shareholders, thereby impacting shareholder wealth.
The Board, having considered the need to expand its international operations and the resulting high gearing as well as the attendant forex risk occasioned as a result thereof and taking into account the interests of its minority shareholders, has approved a proposal to delist the shares of Expolanka Holdings PLC from the Colombo Stock Exchange, subject to necessary shareholder sanction and regulatory approvals and clearances.
The Company will continue to comply with Sri Lanka’s statutory reporting and compliance requirements and focus on delivering on its promise to the Country and its people.
As previously, post-delisting, the Company will continue to navigate market complexities in a fast-revolving business environment while continuing to drive sustainable growth as it strives to gain market share as one of the top-tier logistics companies in the world,” said Mr. Hanif Yusoof, Director, Expolanka Holdings PLC
Expolanka Holdings is a globally acclaimed conglomerate based in Sri Lanka, known for its diversified presence in four pivotal sectors: logistics, leisure, IT, and food. Guided by a forward-thinking mindset and a meticulously planned growth roadmap, EHL consistently challenges industry standards, further cementing its leadership in these dynamic sectors.
March 04, Colombo (LNW): Concerns have been raised regarding the Central Bank of Sri Lanka’s (CBSL) handling of interest rates for the Employees’ Provident Fund (EPF), highlighting disparities between rates paid to staff and regular contributors, sources told LNW.
The EPF for Central Bank staff received a notably higher interest rate of 19.5 per cent, while the EPF for normal working people, under the oversight of the Monetary Board, received a lower rate of 9 per cent, according to sources.
This significant difference in interest rates has sparked questions about fairness and transparency in the management of EPF funds.
Critics argue that such discrepancies raise doubts about equitable treatment of all contributors and the principles of accountability within the Central Bank.
The disparity in interest rates suggests a need for closer examination of the Central Bank’s policies and practices regarding EPF management.
Transparency and consistency in setting interest rates are essential to ensure the financial well-being of all EPF contributors and maintain public trust in the banking system.
As calls for accountability grow louder, stakeholders are urging the Central Bank to address these irregularities promptly and take steps to restore confidence in its management of EPF funds.
The above concerns surface in the backdrop of the Central Bank facing scrutiny over the controversy sparked by its recent move of increasing CB employees’ salaries in unusual figures.
By: Staff Writer
March 04, Colombo (LNW): Hamilton Reserve Bank (HRB) has opposed the Sri Lanka government’s appeal for a further stay of proceedings of the case against sovereign debt restructuring for five months, submitting a joint status letter to the court in New York.
In the Memorandum of Law in Support of Defendant’s Motion for a further stay of proceedings, the Government of Sri Lanka cited ongoing debt restructuring efforts that are yet to be completed, attributing the delay to the complexity of multi-party negotiations.
The country asserted that additional time is necessary for finalising agreements with official creditors and reaching consensus with private commercial creditors.
The Government was sued in July 2022 by HBR which sought full payment on over $ 250 million of Sri Lanka’s dollar bond that was due that month. HBR claimed it holds over 25% of the bonds, which would likely enable it to block any modification of the notes.
However on Friday, Sri Lankan Government told the US Court, “Sri Lanka had hoped to implement restructuring agreements by the fourth quarter of 2023, but now expects to do so by the completion of the IMF’s second program review in the coming months. Recent progress, facilitated by the stay of proceedings in this case, has made that possible.
For instance, finalising terms with official creditors sets a baseline for ensuring comparability of treatment, thus helping to frame discussions with private commercial creditors.
Consistent with this, the ad hoc bondholder group previously noted the importance of Sri Lanka’s application of the principle of comparable treatment in respect of the debt relief requested and obtained from all their remaining official bilateral creditors.
An additional five-month stay of proceedings would provide critical assistance to that process, whereas an immediate judgment for HRB would severely undermine it.”
According to Sri Lanka, in the November 2023 decision, the Court found that the discretionary factors strongly favoured a six-month stay of proceedings and the same principles strongly favoured an additional five-month stay at this point in time.
“In theory, HRB has an interest in seeking a prompt judgment. However, an additional five-month stay of proceedings would cause HRB minimal prejudice, at most. Even if HRB does not wish to participate in a voluntary restructuring, allowing that process to play out prior to a judgment ‘does nothing to vitiate Hamilton’s pre-existing contractual rights.’
And as the Court noted, any harm from delay can be remedied by prejudgment interest. Moreover, HRB’s claimed interest in expedition (even assuming it is a bona fide beneficial owner of the Bonds) should be heavily discounted. HRB purports to have purchased the Bonds well after it was clear that Sri Lanka was in dire straits.
