Business
CSE plunges by 2.5 per cent in the wake of budget proposals
By Hiran H.Senewiratne
The CSE fell 2.5 percent at the beginning of trading yesterday subsequent to Finance Minister Basil Rajapaksa’s 2022 budget presentation due to the 25 percent retrospective tax surcharge on firms that earned over Rs. 2 billion in 2020/21 and the 3 percent increase in Value Added Tax (VAT) for banks, insurance, and financing firms.
VAT was increased to 18 percent from the current 15 percent on banks and financial service providers under supply of financial services by specified institutions with effect from Jan.1, 2022, targeting Rs 14 billion from the proposal.
CSE fall was led by banks and financial sector institutions. This was expected and banks were worried about the tax because it would adversely impact the banking and financial sector institutions, market analysts said.
However, during the latter part of the day the CSE showed some recovery. It was the same in 2015 when the last government came up with a similar retrospective tax that was introduced, stock market analysts said.
The All- Share Price Index plunged to 10,372 immediately after it opened and dropped to over 2 percent but later recovered slightly due to the LOLC group witnessing some buying pressure from two main companies, LOLC Holdings and LOLC Finance, that drove the market, stock market analysts said.
Accordingly, both indices showed mixed reactions. The All -Share Price Index went up by 86.28 points and S and P SL20 went down by 17.57 points. Turnover stood at Rs 6.9 billion with two crossings. Those crossings were reported in Chevron Lubricants, where 340,000 shares crossed for Rs 35.7 million and its shares traded at Rs 105 and LOLC Holdings 29000 shares crossed for Rs 20.1 million, its shares traded at Rs 696.
In the retail market top five companies that mainly contributed to the turnover were, LOLC Finance Rs 2.1 billion (74.6 million shares traded), Expolanka Holdings Rs 428 million (2.1 million shares traded), Browns Investments Rs 423 million (36.6 million shares traded), RIL Properties Rs 364 million (23.8 million shares traded) and LOLC Holdings Rs 339 million (480,000 shares traded). During the day two LOLC Group companies share prices appreciated. Those were LOLC Holdings, whose share price appreciated by Rs 29.25 or four percent. Its share price shot up to Rs 738 from Rs 692.75, contributing 31 points to the All- Share Price Index. LOLC Finance share price appreciated by Rs 12.90 or 15 percent. Its share price shot up to Rs 95.50 from Rs 82.60. Other than the LOLC Group of companies, significant price appreciation was witnessed in Watawala Plantations, whose share price appreciated by 15 percent or Rs 12.90. Its share price appreciated to Rs 95.250 from Rs 82.60.During the day 316 million share volumes changed hands in 52000 share transactions.
MSCI Inc., the leading provider of research-based indexes and analytics, has included Expolanka Holdings PLC in its Frontier Markets Equity Index.
Expolanka is one of the three largest additions to the MSCI Frontier Markets Index measured by full company market capitalization. The other two are Phat Dat Real Estate (Vietnam) and Islandsbanki (Iceland).
MSCI also announced four deletions from the Index, including Commercial Bank of Ceylon PLC. The MSCI Sri Lanka Index has two constituents. JKH is the other, apart from Expolanka. The MSCI Sri Lanka had offered 7.55 per cent return as opposed to 8.57 percent by MSCI Frontier Markets index since 31 May 2002. MSCI Sri Lanka’s PE ratio is 10.78 times as against 16.59 times of MSCI Frontier Index.
Yesterday, the US dollar was quoted at Rs 202.05 as per the Central Bank controlled price. This was introduced to control price increases of essential items in the local market.
Business
Positive investor interest at SEC & CSE Colombo investor forums
The Colombo Stock Exchange (CSE) in collaboration with the Securities and Exchange Commission of Sri Lanka (SEC) hosted the first of a new series of country-wide investor forums on the iconic CSE trading floor on 25th June and 9th July in Sinhala and English respectively.
The investor forums collectively attracted over 180 participants, with many first-time investors taking the opportunity to speak to members of the SEC, CSE, Unit Trust Associations and Stockbrokers from 5:00 PM onwards.
The forums opened with presentations from senior economists of the Central Bank of Sri Lanka, including Mrs. Lasantha Wijerathne and Chathura Kulawardena, who provided a high-level overview of the country’s macroeconomic landscape. The session also featured presentations by members of leading stockbroking firms, including Tharaka Peiris, Senior Research Analyst at NDB Securities (Pvt) Ltd, and . Cheran de la Harpe, Manager – Research at HNB Stockbrokers (Pvt) Ltd, who provided participants with an overview of the capital market. In addition, representatives from the unit trust industry, including Asanka Herath, Secretary of the Unit Trust Association and CEO and Head of Equity at Lynear Wealth Management (Pvt) Ltd, and Surath Perera, Chief Investment Officer of Senfin Asset Management Pvt Ltd, introduced participants to investing in unit trusts.
The presentations were followed by an interactive panel discussion featuring the speakers as well as Vice President of the Unit Trust Association, Director and CEO of First Capital Asset Management (Pvt) Ltd Kavin Karunamoorthy, Acting Director General of the SEC Tushara Jayaratne and Executive Vice President – Marketing of the CSE Niroshan Wijesundere.
Following the panel discussions attendees enjoyed the opportunity to meet with stockbrokers and unit trust associations to open new investment accounts. All new investors who opened an account on the days of the forum were entitled to receive an investment coupon.
The forum was conducted amidst a remarkable six-year growth in the capital market which saw the All-Share Price Index (ASPI) rise from 4,846 points in May 2020 to 22,310.80 points by the end of May 2026. This represents a growth of 360% and a compound annual growth rate (CAGR) of approximately 28.98% – with capital gains remaining tax-free prospective investors can be notified of through the CSE website and mobile app.
Business
BASL to host inaugural National Sustainable Development Law Symposium
The Bar Association of Sri Lanka (BASL) will host the Inaugural National Sustainable Development Law Symposium on 21 July at The Hilton Colombo, bringing together legal practitioners, policymakers, judges, academics, corporate leaders, financial sector professionals and development stakeholders for a full-day forum on the growing role of law in advancing sustainable development, climate resilience and responsible economic growth.
Held under the theme From Global Trade, Finance and Investment to a National Imperative on Resilience: Integrating a Sustainability Lens in Legal Careers, the programme is structured around several thematic sessions examining the legal dimensions of sustainability in trade, finance, investment, climate governance and national policymaking.
The sessions will cover areas such as Strengthening Domestic Capacity to Succeed and Thrive Amidst a Changing Climate, Sustainability Due Diligence in Global Trade and Positioning Sri Lanka as a Trade Hub in the Region, Sustainable Finance and ESG Due Diligence in Investments: Sri Lanka and CIFC as a Hub for the Region, and Creating the
The keynote address will be delivered by His Lordship Justice A.H.M.D.Nawaz, Justice of Supreme Court.
The programme will also feature distinguished speakers including Justice Shiranee Thilakawardane – Former Justice of the Supreme Court, Prof. Dr. Marie-Claire Cordonier Segger /Chairperson Sustainable Development Law & Policy, University of Cambridge, Simon Tribelhorn – CEO – Liechtenstein Bankers Association, Ravi Algama, Dr. Asanga Gunawansa, PC, Prof. (Dr.) Kokila Konasinghe – Professor in Law University of Colombo, Dr. Ravindranath Dabare, Centre for Environmental Justice, Neshan Gunasekera, CEO – World Future Council, Ms. Chamindry Saparamadu – Former DG Sri Lanka Sustainable Development Council and Executive Director, DevPro, Prof. Dominic Coppens – International Economic Law Maastricht University Netherlands, Deputy Solicitor General Nirmalan Wigneswaran, Deputy Solicitor General, Dr. Avanthi Perera, Senith Abeyanayake – Research Associate Centre for Smart Future, Ms. Prashani Illangasekera – General Manager Group ESG, Hayleys PLC, Shiran Fernando – SG/ CEO The Ceylon Chamber of Commerce, , Dr. Priyantha Thilakaweera – Director Macroprudential Surveillance, Central Bank of Sri Lanka, Mr. Thilan Wijesinghe – Managing Director TWC Holdings, Mr. Adheesha Perera – Core Group Member Sri Lanka Banks’ Association’s Sustainable Banking Initiative, Mr. Leel Randeni – Director Climate Change Secretariat from Ministry of Environment, Dr. Ananda Mallawatantri – Co-Chair, Climate Action Steering Committee, The Ceylon Chamber of Commerce and Ms. Punyamali Saparamadu – Senior Vice President -Commercial Colombo Stock Exchange.
For further details, please contact the BASL Program Office at 077 588 8781 or
b.jayasinghe@basl.lk.
Business
EFC appoints Yashoravi Bakmiwewa as Director General
The Employers’ Federation of Ceylon (EFC), Sri Lanka’s premier employers’ organisation, has appointed Yashoravi Bakmiwewa as its 14th Director General, marking a historic milestone in the Federation’s 97-year history. She is the first female to serve as Director General of the EFC and also the first female Director General to head an Employers’ Business Member Organisation (EBMO) in South Asia. The appointment heralds a significant era for leadership within the region’s employer representative bodies.
Bakmiwewa succeeds Vajira Ellepola, under whose leadership the Federation further strengthened its position as the country’s leading voice for employers. Her appointment is a further reflection of the Federation’s commitment to continuity, professional excellence, and inclusive leadership as it continues to support employers in navigating the evolving world of work.
An Attorney-at-Law with over 16 years of distinguished service at the EFC, Bakmiwewa, is a graduate of the University of Colombo with a Bachelor of Laws (LL.B.) and a Masters in Labour Relations and Human Resources Management. She was admitted as an Attorney-at-Law of the Supreme Court of Sri Lanka in 2007 and commenced her legal career at the Attorney General’s Department before joining the EFC in 2010.
Since joining the EFC, Bakmiwewa has been instrumental in providing strategic legal and industrial relations advisory services to member organisations representing diverse industries. In 2019, Bakmiwewa was appointed as the Head of the EFC’s training division and under her leadership and guidance, the EFC training division reached several important milestones which was instrumental in strengthening workplace compliance and productive employment relations. Apart from representing members before legal forums, throughout her tenure, Bakmiwewa has contributed significantly to national policy discussions by representing employer interests at key tripartite forums, including Wages Boards and national steering committees.
Following her appointment as the Director General, Bakmiwewa noted that amidst ever evolving socio-economic challenges the world of business has to brave, the EFC is well positioned to navigate them with confidence and excellence. “Our history is one of resilience, having successfully weathered many periods of uncertainty and transformation during its nearly century-long journey. Drawing on that legacy, we are confident that we will continue to adapt, innovate and extend support for private sector businesses to thrive in an increasingly complex and dynamic business environment”
Bakmiwewa also remarks that, in the present AI-driven business environment, the Federation is conscious of adapting to support business transformation while being mindful of the unprecedented environmental and sustainability challenges that are reshaping businesses and economies worldwide.
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