Business
Union Bank posts strong performance in 1H2023
The first six months of the year marked improvements to Sri Lanka’s macro-economic landscape with inflation continuing to decrease and the IMF bailout followed by the Domestic Debt Optimization (DDO) announcement.
During the 1H2023, the Bank recorded significant improvement in the core banking performance and posted an overall income of LKR 11,729Mn, which is an increase of 58% over the comparative period.
The increase in the Bank’s revenue is mainly attributed to the increase in the Net Interest Income (NII) which increased by 24% to LKR 3,118Mn resulting from improved yields from the loan portfolio and treasury assets. The Treasury recorded significant contributions in the areas of GSEC Capital Gains and FX profitability. The Bank does not hold any International Sovereign Bonds (ISBs), and the Sri Lanka Development Bonds (SLDB’s) held by the Bank have matured and are awaiting settlement. The Net Interest Margin (NIM) increased by 82 bps due to the timely repricing of the asset book along with prudent management of interest expenses.
Net Fee and Commission Income increased by 18% aided by credit cards, remittances, and increased activity from the trade business. The Bank’s Total Operating Income before impairments was LKR 4,029Mn., an increase of 13%. In comparison to the comparative period the Bank’s impairments charge reduced to LKR 726Mn as a result of stringent recovery measures. Despite the prudent cost management initiatives, the Bank’s Total Operating Expenses increased by 21% to LKR 2,496Mn mainly due to the increases in salary bill, utility tariffs and exchange impacted general expenses.
Consequently, the Bank’s Profit Before Tax ( PBT) including its equity accounted share of subsidiaries as of June 30, 2023, increased by 76% to LKR 533 Mn and the Bank’s Profit After Tax (PAT) also increased by a notable 94% to LKR 295Mn.
The total Assets of the Bank stood at LKR 128,904Mn as of 30 June 2023. The Bank maintained a strong liquidity position during the period under review. The Bank’s Loans and Advances was LKR 62,446Mn, whilst customer deposits were LKR 88,907 Mn. The CASA ratio improved to 25.19% as of 30 June 2023, aided by macro-economic drivers backed by strong sourcing initiatives across all business segments. The Bank’s stage 3 loan ratio stood at 10.5%.
Business
Sri Lanka worthy of being ranked as the world’s top holiday spot – cricketing great Wasim Akram
Pakistani cricketing legend Wasim Akram said Sri Lanka is the best tourist destination and is worthy of being ranked the world’s top holiday spot. ‘The island’s natural beauty and my decades-long connection with the country, are factors that enhance Sri Lanka’s value, he explained.
Speaking at a Softlogic Life investor forum in Colombo last Tuesday Akram said Sri Lanka remained one of his favourite destinations despite having traveled extensively around the world.
Akram who captained the Pakistani national cricket team and was celebrated as Softlogic Life’s brand ambassador said filming the company’s latest television commercial gave him another opportunity to experience some of the country’s most scenic locations, including Galle and the central highlands.
Akram said Sri Lanka’s landscapes, rivers and coastline were among the most beautiful he had beheld during his travels and expressed surprise that the country was not already considered one of the world’s leading tourism destinations.
Having first visited Sri Lanka as a teenager in 1985, Akram said he had returned numerous times over the years as a player, commentator and tourist. He added that he plans to continue visiting the island regularly and hopes to explore more of the east coast in the future.
Softlogic Life had impressive growth last year and is looking forward to introducing new life insurance products to the local market considering the increasing the aging population in Sri Lanka.
By Hiran H. Senewiratne
Business
Veenath Indrajith from the University of Sri Jayewardenepura wins the 2026 Saman Kelegama Memorial Research Grant
Veenath Indrajith, a fourth-year undergraduate from the Department of Business Economics at the University of Sri Jayewardenepura, has been selected as the winner of the Saman Kelegama Memorial Research Grant for 2026. Indrajith’s academic and professional interests lie in economics, finance, investment, and policy-oriented research. In addition to his undergraduate studies, he is currently pursuing the Chartered Accountancy qualification in Sri Lanka, demonstrating a strong commitment to analytical rigour and professional excellence. He aspires to contribute to evidence-based policymaking through applied economic research.
Indrajith’s research study, titled “Small Vehicle Businesses and Household Investors Using the Second-Hand Car Market as an Alternative Investment Method in the Colombo District of Sri Lanka,” will adopt a qualitative research approach to explore the motivations, experiences, perceived returns, and risks associated with investing in used vehicles. By analysing household-level decision-making and investment behaviour, the research aims to shed light on a relatively underexplored area of Sri Lanka’s alternative investment landscape. The findings are expected to provide valuable insights for policymakers, particularly in relation to financial literacy, household investment strategies, and the development and regulation of alternative investment markets in Sri Lanka.
The Saman Kelegama Memorial Research Grant, established in 2018, honours the legacy of the late Dr. Saman Kelegama, former Executive Director of the Institute of Policy Studies of Sri Lanka (IPS), whose work significantly shaped public policy discourse on socio-economic development in Sri Lanka and the broader South Asian region. The grant is awarded annually to an outstanding undergraduate student from a Sri Lankan university, with the aim of encouraging innovative, policy-relevant research and nurturing the next generation of policy thinkers. As part of this grant, Indrajith will receive training and mentoring from IPS senior researchers to complete the proposed study.
Business
Delmege Consumer partners with Daraz
Delmege Consumer, the flagship FMCG cluster of the Delmege Group, has evolved into one of Sri Lanka’s most trusted household names, building lasting relationships with communities across the island through a diverse portfolio of quality products that have become an integral part of consumers’ everyday lives for generations. Renowned for enriching households with Delmege’s own brands, leading local brands, and world-renowned international brands, the company continues to strengthen its presence, reputation, and connection with consumers nationwide.
A key strength of the FMCG cluster lies in the strong and enduring partnerships it has cultivated with suppliers, enabling the company to establish a responsive, time-sensitive, and mutually beneficial distribution network that has made a significant impact across Sri Lanka. Through its extensive reach and customer-focused approach, Delmege Consumer serves retail, wholesale, HoReCa, export, and modern trade channels, supported by flexible channel management strategies and winning consumer-centric propositions that cater to evolving market needs.
Further strengthening its distribution network and expanding its digital footprint, Delmege Consumer has partnered with Daraz, Sri Lanka’s leading e-commerce platform, to offer customers a more convenient, seamless, and accessible way to purchase its extensive range of FMCG products online.
Commenting on the partnership, Anil Meegahage, CEO of Delmege Consumer, stated:
“At Delmege Consumer, we are committed to innovation, continuously strengthening our product portfolio, and enhancing customer convenience and experience. Our partnership with Daraz enables us to serve customers across the country more efficiently by providing them with an easy, secure, and reliable platform to purchase trusted Delmege FMCG products online.”
Adding further, Baratha Piyadigama, Head of Group Marketing, Delmege, said:
“This partnership with Daraz marks another important milestone in our journey to enhance brand positioning, visibility, and awareness, especially at a time when digital and online commerce continue to gain significant momentum. As one of Sri Lanka’s leading FMCG distributors, we are proud to extend our trusted portfolio of products into the digital space through Daraz, ensuring customers across the island can conveniently access their favourite products with just a few clicks.”
Delmege’s extensive FMCG portfolio includes well-known Delmege branded products such as Canned Fish, Hiru Kahata Tea, Delmege Soya, Flavours and Colours, Delmege Pasta,
Delmege Noodles, and Salt, together with the much-loved Motha range of dessert ingredients, beverages, and mixes. The company also represents globally renowned international brands including Kellogg’s cereals such as Corn Flakes, Muesli, and Oats; Pringles; and the Ferrero portfolio featuring Ferrero Rocher, Nutella, Kinder Joy, and Tic Tac. Through its diverse and trusted brand portfolio, Delmege Consumer continues to reinforce its position as one of Sri Lanka’s leading FMCG companies.
-
Features6 days agoKilling of Colombo’s ancient trees — a warning on UN’s World Desertification Day – 17 June
-
News4 days agoCreditor receives USD 2.5 mn as Lankan public bears loss from theft of Treasury funds
-
News3 days agoCreditor not yet paid
-
News3 days agoConsumers bearing 22% tax burden despite 18% VAT claim: Dr. Harsha de Silva
-
Opinion5 days agoBeyond diagnosis: A strategic design for 7% growth by 2029 (Part I)
-
News6 days agoIndia provides military stores worth USD 5.5 mn to SL
-
Opinion4 days agoSriLankan Airbus struck by lightning
-
Editorial2 days agoFuel crisis: Beyond price debate
