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Brisk trading in NDB rights with high net worth investors seeing long term value

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There has been considerable investor interest in the ongoing rights issue of the National Development Bank PLC closing later this week with 35.9 million rights transacted on the trading floor of the Colombo Stock Exchange up to Friday by way of 3,825 trades at a high of Rs. 2.50 per right when trading opened on April 27 and a low of 50 cents on Friday, stock analysts said.

Each new rights share will be issued at Rs. 75, with existing shareholders entitled to 28 new shares for every 61 they presently hold.

“The secondary market price of NDB was fairly close to the issue price at the time of the rights allotment,” a share broker said. “In that context many shareholders were interested in selling their rights at the best price they would command rather than taking new shares. Some market players sold some of their NDB shares soon after the rights issue announcement, planning to re-enter the stock at the lower rights price and possibly increasing their holdings with applications for additional shares. The early birds did better than those who transacted later.”

The last day for acceptance and payment for the new shares is May 5 when the issue closes with renunciation of rights entitlements closing the previous day.

Shares remaining unsubscribed will be initially allotted to Norfund up to 9.99% of the bank’ equity and thereafter, if available, to others including legal entities seeking unsubscribed shares. This will be subject Banking Act restrictions, NDB said in a circular.

A previous rights issue by the NDB several months ago was under-subscribed. In that context, the bank reached an agreements with the Norwegian Development Fund (Norfund), fully owned by the Government of Norway to take a stake in NDB by way of a private placement at a price of Rs. 82.50 a share – Rs. 7.50 higher than they were being offered to existing shareholders through the rights issue.

Analysts said that a total of approx. 106.78 million new shares were being offered by way of rights and approx. 37.6 million by way of the private placement with Norfund.

Existing shareholders were permitted the opportunity to apply for more than their rights entitlement at the same Rs. 75 rights price. Allotment of unsubscribed rights shares to such applicants would be on a “reasonable basis” depending on the availability and subject to restrictions under the Banking Act.

The rights share was considered a good long-term investment in the context of the price of both the rights and privately placed share was less than half the NDB’s net assets value per share which stood at Rs. 192.49.

“That’s the reason for the interest in the issue and the brisk trading of rights on the trading floor,” a broker explained. “Paying a small premium to acquire more than their entitlement was considered worthwhile by some high net worth long-term investors in this context.”

Additionally, there was also the factor that transaction cost applicable to secondary market deals do not apply to tights issues and is a further saving on cost.

Norfund’s only investment in Sri Lanka ahead of its entry into the NDB is a stake in Softlogic Life Insurance and it is looking for further potential investment here, according to NDB. The fund which has committed investments worth over USD 2.88 million up to the end of 2019 prioritizes investment in clean energy, financial institutions, green infrastructure and scalable enterprises aligned with UN sustainable development goals.

If it succeeds in achieving its objective of acquiring 9.99% of NDB equity, it will be the second largest shareholder of the bank behind the EPF which owns 10% Other big shareholders include the Bank of Ceylon (8.36%), Sri Lanka Insurance Corporation (SLIC) General Fund (6.39%), Life Fund (4.37%) and Dr. Sena Yaddehige (4.37%).

Softlogic Insurance, ETF, Perpetual Treasuries, Richard Pieris, HNB and Phoenix Ventures are the other big institutional shareholders. Individually, the biggest private shareholders are Messrs. Ashok Pathirage and Merril. J. Fernando.

The issue has been structured in a fashion that the maximum number of shares Norfund can subscribe for will not trigger the SEC’s mandatory offer requirements under its Takeovers and Mergers Code. This requires any investor acquiring 30% or more of a listed company to offer minority shareholders the highest price they have paid in the previous 12 months for that company’s shares.

NDB said the private placement will only take place if Norfund is unable to get the 9.99% stake under the rights issue.



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Cross-border supply chains seen as key to new business opportunities

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Dignitaries at the launching of the new dhal processing factory.

By Ifham Nizam

Australian High Commissioner to Sri Lanka Matthew Duckworth described Omega Traders’ latest investment in a modern dhal-processing facility as a strong example of how cross-border supply chains can translate into productive investment, local value addition and new business opportunities in Sri Lanka.

The investment, which adds a 150-metric-tonne-per-eight-hour-day processing capacity to Omega Traders’ operations, marks a significant expansion of the company’s manufacturing footprint as it celebrates 45 years in Sri Lanka’s food commodity industry.

Speaking at the inauguration of the new Lentil and Orid Dhal Processing Factory in Wattala, last Friday, H.C. Duckworth said the facility represented more than an increase in production capacity, pointing to the wider economic value created when Australian agricultural production is connected with Sri Lankan processing and distribution.

‘This facility is not operating on its own. It is part of a long supply chain and a trade partnership between Sri Lanka and Australia, Duckworth said.

His comments placed the Omega Traders’ investment within a broader commercial context: Australia brings agricultural production and established export capabilities, while Sri Lanka provides processing capacity, labour, market access and opportunities for further value addition.

The investment comes as Sri Lanka continues to look towards greater domestic processing and value-added manufacturing rather than relying solely on the import and distribution of finished commodities.

Dr. (Mrs.) Siddhika G. Senaratne, Director General/CEO of the Sri Lanka Standards Institution (SLSI), who attended the inauguration as Guest of Honour, highlighted the importance of quality assurance in food processing and the role of standards in maintaining confidence across the supply chain.

The facility is equipped with new-generation cleaning, processing, sorting and quality-control machinery, including advanced colour-sorting technology, automated systems and an in-house quality-control laboratory.

The additional capacity will support Omega Traders’ three principal Mysoor Dhal brands — Rainbow Jumbo Dhal, Komas Dhal and Rozanna Dhal — which serve different segments of the Sri Lankan market.

But the investment also has a distinctly local agricultural dimension.

Through its Orid Dhal operation, Omega Traders plans to source locally grown black matpe from Sri Lankan farmers and process it at the new facility.

That creates a domestic value chain linking farmers to industrial processing and consumers, while potentially increasing demand for locally produced agricultural commodities.

Duckworth said this type of business partnership could generate benefits for both countries.

‘Australia produces some of the world’s best agricultural products and we are very efficient and very capable at trading them. But that alone is not going to bring success to Australia. Just as building a factory like this is not going to bring success to Sri Lanka, he said.

‘It’s when we bring these entities together that our products produced in Australia can be processed in excellence here in Sri Lanka that enables this to be a success, the H.C. explained.

The investment therefore combines two complementary supply streams: imported agricultural commodities, including Australian-origin products, and locally produced black matpe for the Orid Dhal operation.

For Sri Lanka, the business significance extends beyond Omega Traders itself. Increased processing capacity creates demand for logistics, packaging, distribution, services and agricultural inputs, while supporting employment within the food-processing ecosystem.

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Ideal Motors makes history with multiple workplace excellence accolades

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Representatives from Ideal Motors (Pvt) Ltd receive top organizational culture and workplace accolades at the Great Place to Work® 2026 awards ceremony.

HR-led transformation places people, culture and business performance at the heart of the organisation

Ideal Motors (Pvt) Ltd,has achieved a significant milestone by securing multiple prestigious workplace and organisational culture accolades in 2026, reinforcing its position as an employer of choice in Sri Lanka’s automotive sector.

Among its latest achievements, Ideal Motors has been recognised as one of the 20 Great Workplaces for Young Talent in Sri Lanka 2026, ranked No. 1 and awarded the Gold Medal in the Small and Medium category of Best Workplaces™ in Sri Lanka 2026, and ranked No. 18 among Best Workplaces™ in Asia in the Medium Scale category—the highest-ranked Sri Lankan organisation in the category. The company also received Industry Excellence for Workplace Culture – Trading Industry.

The Young Talent recognition was presented at the Great Place To Work® CXO Forum 2026 held on 10 September 2026 at Cinnamon Life, Colombo. The recognition followed an evaluation of more than 100 certified organisations and highlights workplaces that create meaningful opportunities for employees under 35 to develop, contribute and grow.

At the Best Workplaces™ in Sri Lanka Awards Gala 2026, held on 11 September 2026 at Cinnamon Life, Colombo, Ideal Motors achieved another historic milestone by entering the Best Workplaces Sri Lanka list for the first time and securing the No. 1 Gold Medal in the Small and Medium category. The company also achieved No. 18 in Best Workplaces™ in Asia, reflecting the strength of its workplace culture beyond Sri Lanka.

These achievements represent more than a collection of awards. They reflect the transformation taking place within Ideal Motors, where people, culture and business performance are increasingly viewed as interconnected drivers of sustainable growth.

Over the past few years, the organisation’s HR function has evolved from a predominantly administrative role into a strategic business partner, with greater emphasis on employee experience, capability development, engagement, performance, communication, wellbeing, diversity and inclusion, and data-driven HR practices.

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AAC takes seat belt safety message to Colombo motorists

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AAC staff distribute seat belt safety material to motorists on Galle Face Centre Road, Colombo.

The Automobile Association of Ceylon (AAC) conducted a seat belt safety awareness programme in front of its headquarters and along Galle Face Centre Road, encouraging motorists and passengers to make seat belt use a habit on every journey.

AAC staff, working alongside officers of the Sri Lanka Police Traffic Division, distributed specially designed hanging tags and stickers to drivers. The material carries a clear reminder that seat belts protect drivers as well as passengers in both the front and rear seats.

The public awareness drive was held ahead of the requirement taking effect on 20 September 2026, under which seat belt use becomes mandatory for every occupant of a vehicle travelling on an expressway.

AAC emphasized that the regulation should be understood as a life-saving measure rather than only a legal obligation. Wearing a seat belt can help prevent occupants from being thrown inside or from a vehicle during a collision and can lessen the severity of injuries.

The Association said road safety legislation must be supported by sustained public education, visible enforcement and responsible behaviour by all road users. The participation of the Traffic Police helped the campaign reach motorists directly in a busy part of central Colombo.

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