Business
CSE turnover improves as investors absorb impact of new policies
By Hiran H. Senewiratne
The CSE slipped yesterday led by stocks that may likely be impacted by the 2023 budget presented this week, but turnover improved as markets and investors gradually absorb the impacts of the policies.
The stock market started on a positive note but could not maintain its momentum due to certain budget proposals. President Ranil Wickremesinghe in his capacity as the Finance Minister presented the 2023 budget in parliament which aimed at raising taxes by 63 per cent year-on-year, while showing some signals on fiscal consolidation.
The overall budget has nothing to do with the share market. But some of the policies will have an impact on some industries and companies. This resulted in both indices moving downwards. The All -Share Price Index went down by 71.7 points and S and P SL20 went down by 15.5 points.
Turnover stood at Rs 1.5 billion with a single crossing. The crossing took place in Kelsey Developments, which crossed 10.4 million shares to the tune of Rs 257 million and its shares traded at Rs 24.60.
In the retail market top seven companies that mainly contributed to the turnover were, SLT Rs 185 million (2.8 million shares traded), Expolanka Holdings (1.1 million shares traded), Hemas Holdings Rs 119 million (2.1 million shares traded), Dialog Rs 103 million (12.2 million shares traded), Lanka IOC Rs 96.5 million (537,000 shares traded), JKH Rs 68.5 million (484,000 shares traded) and HNB Rs 66.8 million (927,000 shares traded). During the day 61.9 million shares traded in 16000 transactions.
‘The budget has mentioned a fuel surcharge tax and that resulted in the fall of Lanka IOC shares. The overall budget is not positive for the retail sector and that dragged Richard Pieris down, observers said.
Richard Pieris fell 12.4 per cent to Rs. 22 and Lanka IOC eased 4.6 per cent to Rs 175.
Market heavyweight Expolanka closed 3.9 per cent weaker at Rs 1422.25.
The budget saw policies that will increase the cost of doing businesses across the board, but relieving the government of depending on excess money printing, analysts say.
The market saw a foreign outflow of Rs 154 million. But the market has seen a total net foreign inflow of Rs 17.7 billion so far for this year.
Analysts expect a bearish sentiment on the banking sector to continue until the government decides on local debt restructuring.
The market has been on a falling trend as investors awaited cues on policies from the 2023 budget.
Investors are also concerned over the impact of local debt restructuring on risky assets, analysts said, as the market is waiting for a debt restructuring decision between the government and its creditors ahead of an IMF loan approval.
Yesterday, the Central Bank- announced US dollar selling price was Rs 360.96 and the buying rate Rs 360.96.
Business
Mention of possible future inflation dampens investor appetite
By Hiran H. Senewiratne
Stock investors were worried yesterday following Central Bank Governor Dr. Nandalal Weerasinghe’s mention at the CBSL monthly monetary policy review meet of possible future inflation pressures that may impact the economy.
The All Share Price Index went down by 4.89 points, while the S and P SL20 rose by 16.1 points. Turnover stood at Rs 1.55 billion with four crossings.
Those crossings were; Access Engineering crossed 1.5 million shares to the tune of Rs 119.8 million; its shares traded at Rs 79.60, Sampath Bank 450,000 shares crossed tfor Rs 63 million; its shares sold at Rs 140, Sunshine Holdings 750,000 shares crossed to the tune of Rs 21.4 million; its shares traded at Rs 28.50 and Softlogic Life 290,000 shares crossed for Rs 20.4 million; its shares sold at Rs 70.40.
In the retail market companies that mainly contributed to the turnover were: Access Engineering Rs 150 million (1.9 million shares traded), JKH Rs 113 million (six million shares traded), Softlogic Life Rs 80 million (one million shares traded), Softlogic Capital Rs 64.7 million (6.7 million shares traded), Lanka Realty Rs 64.3 million (1.3 million shares traded), Colombo Dockyard Rs 53.7 million (452,000 shares traded) and Sierra Cables Rs 50 million (1.43 million shares traded). During the day 58.9 million share volumes changed hands in 13536 transactions.
It is said that mixed market reactions were noted especially in manufacturing while banking, insurance and FMCG sectors performed well. Further, construction sector counters, especially Access Engineering, and banking sector counters, especially Sampath Bank, performed well.
People’s Leasing & Finance PLC announced its allotment basis for 100 million listed debentures it issued to raise Rs 10 billion, after receiving applications for the full amount.
Yesterday the rupee was quoted at Rs 330.68/75 to the US dollar in the spot market from Rs 330.70/90 the previous day, while bond yields were quoted steady to lower, dealers said.
An auction of Rs 80,000 million Treasury bills was ongoing.
Business
Beyond El Niño: Building lasting climate resilience in Sri Lanka’s plantations
Climate resilience has become the defining test of this El Niño year for Sri Lanka’s plantation sector. The National Disaster Relief Services Centre says over 81,000 people across 25,563 families in seven districts, Ampara, Polonnaruwa, Batticaloa, Badulla, Monaragala, Hambantota and Ratnapura, have been affected by the dry weather linked to the phenomenon. The government has raised daily water allocations from six to 15 litres per person, deployed 324 water bowsers, and set aside Rs. 4.8 billion for relief.
Several of the worst hit districts sit close to plantation country, a reminder that El Niño doesn’t stop at the edge of an estate. It touches every elevation, from low grown tea and rubber around Ratnapura and Galle, through the mid grown estates of Kandy, to the high grown gardens of Nuwara Eliya and Badulla. Low grown areas feel it fastest, since prolonged heat and soil moisture loss can hit yields within weeks. High grown tea is more sheltered from dry spells but carries its own slow burning risk from rising night temperatures.
Professor Buddhi Marambe, Senior Professor of Crop Science at the University of Peradeniya, draws a distinction often lost in public conversation. “El Niño is not caused by climate change. It is a natural climate variability that has occurred for hundreds of years,” he says. “But that doesn’t mean resilience building in our agricultural systems isn’t helping. It directly assists in mitigating the impacts of extreme events like El Niño.” That resilience takes time to build. The Tea Research Institute released Sri Lanka’s first drought tolerant tea cultivar only in 2016, after years of work. “It normally takes about 25 years to develop a new tea cultivar,” Marambe notes, underlining why the Planters’ Association keeps pressing for sustained, long term investment in plantation research rather than short funding cycles.
That long view is already showing up on the ground. At Udapussellawa Plantations PLC, the response to the prevailing drought has been an integrated field level programme rather than a single fix. Mother leaf plucking was made mandatory to protect bushes from moisture stress, foliar bio-fertiliser applications were intensified, and water was diverted to the worst affected fields. Shade cover was strengthened, potassium was applied to help regulate water loss through the stomata, and drains were cut in advance of the dry spell to hold moisture in the root zone. Rooftop solar has also been installed, easing pressure on hydro power so that conserved water can flow downstream for drinking and irrigation.
At Browns Plantations’ Maturata region estates, resilience has been built across water, soil and disaster planning together. Water bowsers and sprinkler systems now serve new clearings and nurseries, while thatching in young tea fields conserves soil moisture. Shade lopping and pruning have both been suspended during the dry period to protect plant health, and foliar potassium is being used as an immediate agronomic measure. On the disaster side, vulnerable housing and landslide prone locations are monitored continuously and assessed against the National Building Research Institute (NBRI) recommendations, with relocation planned in consultation with the relevant authorities.
Kelani Valley Plantations PLC has taken the longest horizon, treating climate resilience as something built years ahead of any single crisis. Its Agroforestry Pilot at Halgolla Estate, developed with Sri Lankan and international scientists, layers vegetation to deliver soil conservation, water retention and additional income, and is now being replicated across other estates. Soil and water measures such as soak pits, on site ponds and native tree planting support rainfall infiltration, while the company’s Surakimu Ganga programme has planted more than 10,000 native trees in the Kelani River basin, with a survival rate above 99 percent. KVPL also became the world’s first plantation company, and Halgolla the world’s first tea estate, to achieve regenagri certification, work underpinned by long standing research partnerships with the University of Peradeniya, Wageningen University and IUCN Sri Lanka.
Horana Plantations PLC, part of the Hayleys Plantation Sector, shows how technology is closing the same gap. Weather stations installed with the Arthur C. Clarke Institute feed early alerts on temperature, rainfall and soil moisture, drone mapping flags nutrient and pest problems, and smart fertigation cuts water waste in coffee. Solar installations and mini hydro plants generated 1,243 MWh last year, and the TeaShade Carbon Project is Sri Lanka’s first plantation scheme registered under the Verified Carbon Standard.
Taken together, these examples show a sector that is not waiting for policy to catch up before acting. Regional Plantation Companies (RPC’s) have, on their own initiative, built research partnerships, invested in monitoring technology and renewable energy, and embedded climate planning into daily estate management, often years ahead of national frameworks reaching the ground. Professor Marambe’s own prescription, continuous capacity building tied to economic reality, is one RPCs are already living out: “People respond when they understand the real economic risk. Every plantation crop is an export earner.” The response to El Niño is proof that climate resilience is already a core business strategy, and the strongest case yet for greater government and institutional support to help scale that work further, said Lalith Obeyesekere, Secretary General of the Planters’ Association of Ceylon.
Business
LAUGFS Holdings appoints Dhanusha Muthukumarana Group Managing Director and Group Chief Executive Officer
LAUGFS Holdings Limited has appointed Dhanusha Muthukumarana as Group Managing Director and Group Chief Executive Officer, effective 1st October 2026. Muthukumarana brings a strong background in engineering, technology, professional leadership and entrepreneurship. The appointment reflects the Group’s focus on strengthening leadership, accelerating business transformation and driving sustainable growth across its diversified portfolio.
Muthukumarana is an award-winning professional with more than 26 years of experience across banking and finance, consumer goods, manufacturing, healthcare, logistics, enterprise software and technology consulting, and diversified businesses. He has held senior leadership roles in Sri Lankan and international organisations, including Fortune 500 companies, building expertise in business transformation, enterprise architecture, strategic planning and innovation.
Throughout his career, he has led complex transformation initiatives, improved business operations and aligned technology and operations with corporate strategy. He brings this combination of strategic, commercial and technology leadership to LAUGFS as the Group pursues operational excellence, long-term value creation and value capture.
Muthukumarana is an executive alumnus of the University of Oxford (Saïd Business School), United Kingdom, where he successfully completed his education in Strategic Innovation and ranked among the top performers in his cohort. He holds a Master of Business Administration (MBA) from the Postgraduate Institute of Management (PIM), University of Sri Jayewardenepura, and possesses postgraduate qualifications in Information Technology. He is currently pursuing postgraduate studies in Economics.
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