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Banking and insurance sector counters ‘warmly welcome’ DDR

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By Hiran H.Senewiratne

CSE investors yesterday warmly welcomed the Domestic Debt Restructuring (DDR) exercise, especially banking and insurance sector counters. From 2020 onwards, banking sector counters traded under/lower prices but investor sentiment changed from yesterday for these counters, market analysts said.

From 2020 investors were moving away from investing in banking sector counters due to the latters’ negative image and bank balance sheet issues. But investor appetite quickly shifted to banking sector counters following government and Central Bank assurances that the DDR exercise would not be applicable to the banking and insurance sectors, analysts said.

Amid those developments stocks closed up 7.06 percent with banks leading the charge after domestic bond restructuring was restricted to pension funds, brokers said.

Both indices moved upwards. The All Share Price Index closed up 7.00 percent or 633.07 points to reach 10,109.41, accordingly. The S&P SL 20 Index’s more liquid stocks closed at 10.18 percent or 276.26 points to settle at 2,989.91.

The market generated a turnover of Rs 7.29 billion with nine crossings. Those crossings were reported in JKH, which crossed 4.6 million shares to the tune of Rs 714 million; its shares traded at Rs 156, Melstacorp 3 5.4 million shares crossed for Rs 349 million; its shares traded Rs 65, Commercial Bank 3.1 million shares crossed to the tune of Rs 245 million and its shares traded at Rs 80, National Trust Bank 810,000 shares crossed for Rs 65.5 million, its shares traded at Rs 81, Hayleys 673,000 shares crossed to the tune of Rs 51.5 million and its shares traded at Rs 83, Lanka IOC 316,000 shares crossed for Rs 41.5 million and its shares fetched Rs 131, Chevron Lubricants 451,000 shares crossed for Rs 40.6 million; its shares traded at Rs 90, HNB 200,000 shares crossed for Rs 32 million; its shares traded at Rs 160 and Commercial Bank (Non -Voting) 400,000 shares crossed to the tune of Rs 26.4 million and its shares traded at Rs 66.

In the retail market top seven companies that mainly contributed to the turnover were; Commercial Bank Rs 634 million (7.9 million shares traded), Browns Investments Rs 433 million (68.5 million shares traded), Sampath Bank Rs 371 million (5.8 million shares traded), NTB Rs 310 million (3.9 million shares traded), Hayleys Rs 298 million (3.6 million shares traded), Capital Alliance Rs 295 million (7.5 million shares traded) and LOLC Finance Rs 240 million (41.1 million shares traded). During the day 333.5 million share volumes changed hands in 42000 transactions.

The shares closed higher, with more foreign participation being seen in the market due to positive macro-economic sentiments, an analyst said. Yesterday the bonds closed higher, dealers said and the spot closed stronger at Rs 306.50/308 to the US dollar. The rupee closed at Rs 308.30/310 yesterday.



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Dialog delivers strong growth, stronger national contribution in FY 2025

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Dialog Axiata PLC announced, Friday 6th February 2026, its consolidated financial results (Reviewed) for the year ended 31st December 2025. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).

Group Performance

The Group delivered a strong performance across Mobile, Fixed Line and Digital Pay Television businesses recording a positive Core Revenue growth of 16% Year to Date (“YTD”). Group Headline Revenue reached Rs179.6Bn, up 5% YTD, despite the continued strategic scaling down of low-margin international wholesale business. In Q4 2025, Revenue was recorded at Rs46.5Bn up 2% Quarter-on-Quarter (“QoQ”) and 2% Year-on-Year (“YoY”).

The Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) reached Rs86.0Bn up 30% YTD supported by Core Revenue performance and Cost Rescaling Initiatives. On a QoQ basis Group EBITDA demonstrated a modest growth to record at Rs23.0Bn up 2% QoQ with an EBITDA margin of 49.5% in line with the Revenue performance. Group EBITDA margin reached 47.9% for FY 2025, up 9.2pp.

Group Net Profit After Tax (“NPAT”) reached Rs20.8Bn for FY 2025, up 67% YTD mainly resulting from robust EBITDA growth, despite higher tax and net finance costs. Normalized for forex impact, NPAT growth was recorded at +>100% YTD to reach Rs22.1Bn. On a QoQ basis NPAT grew 3% to reach Rs5.9Bn resulting from strong EBITDA performance.

On the back of strong operational performance, the Group recorded Operating Free Cash Flow (“OFCF”)

of Rs49.3Bn for FY 2025 up >100% YTD.

Dividend Payment to Shareholders

In line with the dividend policy and financial performance of the Group and taking into account the forward investment requirements to serve the nation’s demand for Broadband and Digital services, the Board of Directors of Dialog Axiata PLC at its meeting held on 6th February 2026, resolved to propose for consideration by the Shareholders of the Company, a dividend to ordinary shareholders amounting to Rs1.50 per share. The said dividend, if approved by shareholders, would translate to a Dividend Yield of 5.0% based on share closing price for FY 2025. The dividend so proposed will be considered for approval by the shareholders at the Annual General Meeting (AGM) of the Company, the date pertaining to which would be notified in due course.

Company and Subsidiary Performance

At an entity level, Dialog Axiata PLC (the “Company”) continued to be the primary contributor to Group Revenue (76%) and Group EBITDA (74%). Aided by sustained growth in the Data segment and cost-rescaling initiatives, Company revenue was recorded at Rs135.8Bn for FY 2025, up 18% YTD, EBITDA rose 32% YTD to reach Rs63.6Bn. On a QoQ basis, Q4 2025 Revenue was recorded at Rs34.8Bn, down 1% QoQ due to a reclassification of Hubbing Revenue, while EBITDA decline 1% QoQ to record Rs17.0Bn, largely attributable to network restoration costs and donations made in relation to the Cyclone Ditwah relief efforts. Furthermore, NPAT was recorded at Rs15.6Bn for FY 2025, up 41% YTD. Normalised for forex impacts, the company NPAT was up +>100% YTD to reach Rs17.0Bn. On a QoQ basis, Company NPAT was recorded at Rs4.5Bn, down 6% QoQ.

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Ceylinco Life’s Pranama Scholarships reach 25-year milestone

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Ceylinco Life has announced the launch of the 25th consecutive edition of its flagship Pranama Scholarships programme, marking a significant milestone in the company’s long-standing commitment to recognising and rewarding excellence among the children of its policyholders.

Under the 2026 programme, the life insurance market leader will present scholarships with a total cumulative value of Rs. 22.7 million, continuing a rewards initiative that has now been conducted without interruption for a quarter of a century. Since its inception, the Ceylinco Life Pranama Scholarships programme has benefitted 3,466 students across the country, representing a total investment of Rs. 240 million in nurturing academic achievement and outstanding performance in sports, arts and other extracurricular pursuits.

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Sri Lankans’ artistic genius glowingly manifests at Kala Pola ‘26

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The spirit of Sri Lanka as it was ably captured by an artist.

The artistic genius of Sri Lankans was amply manifest all over again at ‘Kala Pola ‘26’ which was held on February 8th at Ananda Coomaraswamy Mawatha Colombo 7; the usual, teeming and colourful venue for this annual grand exhibition and celebration of the work of local visual artists.

If there is one thing that has flourished memorably and resplendently in Sri Lanka over the centuries it is the artistic capability or genius of its people. It is something that all Sri Lankans could feel a sense of elation over because from the viewpoint of the arts, Sri Lanka is second to no other nation. With regard to the visual arts a veritable dazzling radiance of this inborn and persisting capability is seen at the annual open air ‘Kala Pola’.

A bird of Sri Lanka created from scraps of iron waste.

All capable visual artists, wherever they hail from in Sri Lanka, enjoy the opportunity of exhibiting their work at the ‘Kala Pola’ and this is a distinctive ‘positive’ of this annual event that draws numberless artists and viewers. There was an abundance of paintings, sketches and sculptures, for instance, and one work was as good as the other. Ample and equal space was afforded each artist. Its widely participatory and open nature enables one to describe the exhibition as exuding a profoundly democratic ethos.

Accordingly, this time around at ‘Kala Pola ‘26’ too Sri Lankans’ creative efforts were there to be viewed, studied and enjoyed in the customary carnival atmosphere where connoisseurs, local and foreign, met in a sprit of camaraderie and good cheer. Many thanks are owed once again to the George Keyt Foundation for the presentation of the event in association with the John Keells Group and the John Keells Foundation, not forgetting the Nations Trust Bank, which was the event’s Official Banking Partner. The exhibition was officially declared open by Chief Guest Marc-Andre Franche, UN Resident Coordinator in Sri Lanka.

By Lynn Ockersz

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