Business
Brisk trading in NDB rights with high net worth investors seeing long term value
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.
Business
SriLankan Airlines Enhances Australia Connectivity with 14 Weekly Flights
11 March 2026; Colombo – SriLankan Airlines is set to increase its weekly service between Colombo and Melbourne to 10 flights, effective from 2 August 2026, with the addition of three more scheduled flights in response to growing demand and evolving market dynamics. The expansion reinforces the airline’s commitment to strengthening its footprint in Australia, recently identified as one of the fastest-growing inbound tourism markets to Sri Lanka, driven by leisure travel and a rising volume of visits by family and friends.
The newly added flights will operate every Tuesday, Thursday and Sunday, departing Colombo as UL608 at 14:10 hrs and arriving in Melbourne at 04:30 hrs the following day. The return service, UL609, will depart Melbourne every Wednesday, Friday and Monday at 06:00 hrs, arriving in Colombo at 12:15 hrs the same day, offering convenient onward connections across the airline’s network. The schedule is designed to maximise time spent in Sri Lanka for leisure travellers while enhancing connectivity for passengers travelling onwards to India via Colombo.
In addition to the new frequencies, the airline will continue operating its daily service, UL604, departing Colombo at 00:20 hrs and arriving in Melbourne at 14:40 hrs, with the return service UL605 departing Melbourne at 16:10 hrs and arriving in Colombo at 22:25 hrs. These services provide seamless connectivity to key destinations across India and beyond.
This addition of flights will provide Sri Lankans with better options when choosing flights between the two countries and enable them to plan their travel more conveniently. The increased frequency will be especially beneficial for the Sri Lankan diaspora living in Australia, providing greater flexibility to visit family and friends while maintaining strong connections with their homeland.
Additionally, Sri Lankan students studying in Australia will find these enhanced services advantageous, as the expanded schedule accommodates academic calendars and holiday breaks, making it easier to travel home and return to their studies. Overall, improved connectivity supports both the expatriate community and students by offering more convenient and accessible travel options tailored to their needs.
The increased frequencies will further strengthen Colombo’s role as a regional hub, enabling Indian travellers to seamlessly connect via Sri Lanka to Melbourne, with convenient schedules and efficient onward connections. For more information and bookings, visit www.srilankan.com or follow us on our social media.
Business
Nestlé Lanka marks 120 years of nourishing Sri Lankan families and livelihoods
Nestlé Lanka Limited this year marks 120 years of operations in Sri Lanka, highlighting a century-long presence that has extended beyond food manufacturing to supporting farmers, communities, youth employment and environmental sustainability.
Established in 1906, the company has grown into one of Sri Lanka’s leading food and beverage manufacturers, today producing more than 90% of the products it sells locally. Over the decades, Nestlé Lanka has built a strong domestic footprint through local sourcing, long-term farmer partnerships and continued investment in manufacturing.
Through widely recognised brands such as Nestomalt, Milo and Maggi, the company has become a familiar presence in Sri Lankan households, offering products designed to meet local nutritional needs. Many of its products are fortified with micronutrients aimed at improving dietary intake, while brands such as Milo and Nestomalt have also supported youth sports and active lifestyles in the country.

Nestlé Lanka’s engagement with local agriculture has also played a role in strengthening rural livelihoods. The company works closely with dairy and coconut farmers, providing technical assistance, skills development and reliable market access as part of its responsible sourcing efforts.
The company has also expanded programmes aimed at improving youth employability. Through the “Nestlé Needs YOUth” initiative, young Sri Lankans are provided with access to training, learning and career opportunities. Partnerships with organisations such as BConnected have also helped promote inclusive employment opportunities for people with disabilities.
Sustainability has become an increasingly central focus of the company’s operations. Nestlé Lanka’s manufacturing facility in Kurunegala operates on 100% renewable electricity, while a biomass boiler commissioned in 2024 has helped reduce carbon emissions from manufacturing. The company aims to achieve net-zero carbon emissions by 2050.
Efforts to reduce environmental impact have also extended to packaging. Nestlé Lanka pioneered the shift from plastic to paper straws in aseptic beverage cartons in 2019 and supported the establishment of Sri Lanka’s first recycling plant for such cartons. The company aims to become fully plastic neutral by 2026.
Chairman and Managing Director Bernie Stefan said the milestone reflects the long-standing trust Sri Lankan consumers have placed in the company and the partnerships it has built across the country over generations.
By Sanath Nanayakkare
Business
Over a century of Business History goes to the National Archives
The Ceylon Chamber of Commerce has formally handed over its historical records to the National Archives Department of Sri Lanka, placing over a century of the nation’s commercial history into the care of the country’s official custodians of heritage.
The historical archive being handed over spans from the Chamber’s founding in 1839 to 1973, and includes correspondence, meeting minutes, reports, ledgers, and publications that chronicle the development of trade, enterprise, and industry in Sri Lanka. Together, these records provide a rare and detailed account of how the island’s economy evolved and how its business community helped shape national progress.
The Ceylon Chamber of Commerce was established on 25 March 1839 on the principle that the interests of commerce and trade are best advanced when merchants unite and cooperate in matters affecting the common good. At the time, Ceylon was among the earliest regions in Asia to establish a chamber of commerce, alongside counterparts in Bengal, Bombay, Madras, Canton, Penang, and Singapore.
From its earliest years, the Chamber played a central role in organising and guiding trade. It played a central role in establishing and growing the export economy built on commodities such as coffee, cinnamon, coconut oil, tea, and rubber, and hosted the island’s renowned tea and rubber auctions. It also developed rules and standards for trading practices, helping create an environment of trust and reliability that enabled Sri Lanka’s commerce to thrive.
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