Business

First Capital navigates market volatility in first quarter of financial year 2026/27

Published

2 months ago

2026/08/15

First Capital Holdings PLC, a subsidiary of JXG (Janashakthi Group) and a pioneering force in Sri Lanka’s capital markets landscape, navigated a challenging first quarter of financial year 2026/27 amid heightened global economic uncertainty, geopolitical tensions and significant movements in interest rates. While market conditions placed pressure on fixed income trading activities, the Group’s diversified business portfolio continued to deliver positive contributions across its Corporate Finance Advisory, Corporate Dealing Securities, Wealth Management and Stock Brokering businesses.

First Capital Holdings PLC (the Group) recorded a Loss after Tax of Rs. 726Mn for the quarter ended 30 June 2026, compared to a Profit after Tax of Rs. 2.15Bn in the corresponding period of the previous year.

The Group’s Net Trading Loss before Operating Expenses for the first quarter of 2026/27 was Rs. 565Mn, compared to Net Trading Income before Operating Expenses of Rs. 3.43Bn in the corresponding quarter of the previous year.

During the quarter under review, the Group’s financial performance was impacted by heightened global economic uncertainties, primarily driven by geopolitical tensions arising from the conflict in the Middle East. The Central Bank of Sri Lanka increased its policy rate by 100 basis points during the quarter to address rising inflationary pressures. Against this backdrop, trading opportunities were substantially restrained, while adverse mark-to-market movements were experienced across trading portfolios.

The Primary Dealer division reported a Loss after Tax of Rs. 741Mn for the quarter ended 30 June 2026, compared to a Profit after Tax of Rs. 1.55Bn in the first quarter of 2025/26. The results included net interest income of Rs. 351Mn and a trading loss on government securities amounting to Rs. 1.80Bn, compared to net interest income of Rs. 503Mn and trading gains on government securities of Rs. 2.06Bn in the corresponding quarter of the previous year.

The Corporate Finance Advisory and Corporate Dealing Securities divisions reported a Profit after Tax of Rs. 22Mn for the quarter ended 30 June 2026, compared to Rs. 587Mn in the first quarter of 2025/26.

The Wealth Management division reported a Profit after Tax of Rs. 6Mn for the quarter ended 30 June 2026, compared to Rs. 27Mn in the corresponding quarter of the previous year. The division continued to maintain a strong asset base, with Assets Under Management standing at Rs. 93.3Bn as at 30 June 2026, compared to Rs. 96.2Bn as at 31 March 2026.

The Stock Brokering division recorded a Profit after Tax of Rs. 24Mn for the quarter ended 30 June 2026, compared to Rs. 32Mn in the first quarter of 2025/26.

Commenting on the performance, Rajendra Theagarajah, Chairman of First Capital Holdings PLC, said, “First Capital has built a strong foundation across multiple areas of the capital markets, enabling us to navigate different market cycles with discipline and perspective. While the quarter presented a challenging environment for fixed income markets, the continued performance of our advisory, dealing, wealth management and securities businesses reflect the strength of our broader platform. We remain focused on strengthening our market position, deepening our capabilities and creating sustainable value for our clients and stakeholders.”

Commenting on the outlook, Dilshan Wirasekara, Managing Director/CEO of First Capital Holdings PLC, said, “The quarter reinforced the importance of maintaining a balanced and diversified business model in an evolving market environment. While movements in interest rates affected fixed income trading activities, our other core businesses continued to deliver positive contributions. We remain focused on strengthening execution, expanding our capabilities and identifying opportunities across the capital markets as conditions evolve. Our established platforms and client relationships provide a strong foundation as we move forward.”

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Business

Rs 160 million + diesel discrepancy at Lakvijaya power plant prompts probe

Published

12 hours ago

2026/09/30

Sahan Weerasooriya

The Lakvijaya power plant in Norochcholai.

By Ifham Nizam

A Rs.160 million-plus diesel discrepancy at the Lakvijaya power plant in Norochcholai has triggered an internal investigation, raising questions over the handling of public funds and the controls governing fuel purchased for electricity generation.

The discrepancy surfaced during an internal audit of diesel supplied to the plant from the Kolonnawa and Sapugaskanda fuel terminals, according to senior officials familiar with the inquiry.

The audit has identified five transactions—two in December 2025 and three in January 2026—in which diesel recorded as delivered to the plant allegedly could not be fully accounted for in its physical stocks.

The investigation is now examining whether these were isolated discrepancies or part of a longer-running practice.

One transaction under scrutiny relates to January 16, when records reportedly showed that 10 diesel bowsers had arrived at the plant. Investigators subsequently found indications that the fuel stock corresponded to only nine bowsers.

A storekeeper responsible for the relevant fuel operation has reportedly been temporarily removed from those duties pending the investigation.

A senior official said investigators were reviewing historical records amid indications that similar discrepancies may have occurred over a longer period. If established, the financial exposure could therefore exceed the Rs.160 million currently identified.

The investigation is comparing fuel-terminal dispatch records, tanker movements, plant-entry records, receiving documents and physical stocks to establish exactly how much fuel was dispatched, received and accounted for.

That audit trail will also be critical in determining who authorised, received and certified the disputed consignments, and whether established controls were followed.

Relevant documents were reportedly transferred from Norochcholai to the company’s Colombo head office on September 26 for further examination, with electricity-sector security personnel assisting in the transfer.

The internal audit has also reportedly uncovered expired chemical stocks worth several hundred thousand rupees in the plant’s stores. Investigators are examining whether further inventory-management irregularities occurred.

The matter was also reportedly taken to the Puttalam Police Special Crimes Investigation Unit on September 26.

When contacted by Puttalam-based journalist Hiran Priyankara Jayasinghe for The Island Financial Review, Lakvijaya Power Plant Manager Nalaka Kumara confirmed that an investigation was under way but declined to provide further details.

The financial issue is direct: if the plant paid for diesel it did not receive, public-sector funds were spent without the electricity sector receiving the corresponding fuel.

Business

Sri Lanka Food Processors Association holds 29th Annual General Meeting

Published

12 hours ago

2026/09/30

Sahan Weerasooriya

The Sri Lanka Food Processors Association (SLFPA) successfully convened its 29th Annual General Meeting (AGM) on September 23, 2026, at the Water’s Edge Hotel, Battaramulla. Bringing together key industry stakeholders and member organizations, the event served as a platform to review milestone achievements from the 2025/2026 term and outline strategic priorities for the nation’s food and beverage processing sector.

At the AGM, the new Executive Committee for 2027/2028 was appointed, comprising: Honorary President Aruna Senanayake C.W. Mackie PLC Imme. Past President Thusith Wijesinghe Trans Continental Packaging & Commodities (Pvt) Ltd.

President Elect Nadishan Guruge Meadlee Trading Co. (Pvt) Ltd.

1st Vice President Damitha Perera Forbes & Walkers Commodity Brockers (Pvt) Ltd.

2nd Vice President Rasika Seneviratne Diesel & Motor Engineering PLC 3rd Vice President Deepal De Alwis Neochem International (Pvt) Ltd.

Honorary Secretary Amila Weerasinghe Nestle Lanka Limited.

Asst. SecretaryDineth Alahakoon Country Style Foods (Pvt) Ltd.

Honorary Treasurer Sameera Jayathilaka Westmann Engineering Company (Pvt) Ltd.

Asst. Treasurer Niroshan Dalpethado C D De Fonseka & Sons (Pvt) Limited. In addition to the above office bearers, the following ten Executive Committee Members were appointed:

Sanjeewa De Silva Unilever Sri Lanka Limited Sheran De Alwis MA’S Tropical Food Processing (Pvt) Limited

Thusitha Ekanayake Anods Cocoa (Pvt) Ltd.

Vijitha Govinna Plenty Foods (Pvt) Limited Ms. Praharshi Wickramasekara International Commodity Exports (Pvt) Ltd.

Sanjeewa Niroshan SGS Lanka (Pvt) Ltd. Kushan Amarasinghe Finagle Lanka (Pvt) Ltd.

Rangajeewa Hettiarrachchi Fonterra Brands Lanka (Pvt) Ltd.

Harindra Abeyrathna Vision Technologies International (Pvt) Ltd. Thilina Weerasekara Ceylon Cold Stores PLC

The event was proudly supported by key industry partners, with SGS Lanka (Pvt) Ltd serving as the Platinum Sponsor. Unilever Sri Lanka Ltd. and Nestlé Lanka Ltd. joined as Gold Sponsors, Ceylon Agro Industries – Prima as the Silver Sponsor, while Lanka Exhibition & Conference Services (LECS) and Hero Nature Products (Pvt) Ltd., supported as Bronze Sponsors.

The proceedings concluded with a vote of thanks delivered by Hony. Secretary Deepal De Alwis, followed by cocktails and a fellowship networking session, providing an opportunity for members to connect and strengthen industry ties.

Business

Uber brings the ‘business class of back seats’ to Sri Lanka with Uber Black

Published

12 hours ago

2026/09/30

Sahan Weerasooriya

New premium ride option expands Uber’s portfolio from affordable Moto and Tuk rides to premium on-demand travel

Uber announced the launch of Uber Black in Sri Lanka, bringing its premium ride experience to the country for the first time. Designed as the “business class of back seats,” Uber Black combines premium vehicles and highly-rated drivers for riders looking for greater comfort, quality and a more elevated travel experience.

The launch comes as demand for premium products and experiences grows across Sri Lanka, with consumers seeking greater choice and quality in their everyday experiences. Uber Black brings this choice to on-demand mobility, whether for an airport journey, an important business meeting, a special occasion or simply when riders want to travel in greater comfort.