Business
First Capital Research publishes its pre-policy analysis report
As per our view, at the upcoming policy meeting, there is an 80% probability for the Central Bank of Sri Lanka (CBSL) to maintain rates at the current levels, allowing further strengthening of key economic indicators, say Dimantha Mathew and Anjali Mathews, analysts at First Capital Research.
In their report titled, “The Road ahead: Steering Interest rates in an uncertain economy’. They say, “There is, however, a 20% probability for CBSL to relax the policy rates, with a probability of 15% for a rate cut of 25bps and a lower level of 5% for 50bps rate cut in order to further reduce rates and government security yields to accelerate economic growth.
“Further, there is an 80% probability to keep SRR unchanged; while considering the improved liquidity levels in the system, we consider a 20% probability for a SRR hike of 100bps.”
“Considering the reduction of SRR by 200bps to 2.0% on 09th Aug-23, we expect SRR to remain unchanged at the same level. However, there is a 20% probability for CBSL to raise SRR by 100bps.”
“Partly in line with our expectations, CBSL decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 25bps to 8.25% and 9.25%, respectively at the monetary policy review held on 23rd Jul-24. The Board reached this conclusion after thoroughly examining the present and anticipated trends in both the domestic and global economy. The objective is to maintain inflation at the targeted level below 5.0% over the medium term, all while supporting the economy in reaching its potential level. The Board acknowledged that inflation is expected to remain well below the target in the coming months due to the adjustments of electricity tariffs, falling domestic food prices, and weak demand conditions. Despite a widening of the trade balance, the external sector has shown improvement with increased foreign currency inflows, tourism-related inflows, and elevated workers’ remittances.
However, the Board emphasized the need to continue to ease monetary conditions to sustain the revival of economic activity towards full potential in the absence of significant inflationary pressures, and will continue to monitor inflation developments”. the report states.
Key Arguments considered by CBSL for its policy stance held on 23rd Jul-24
Inflation is expected to remain well below the targeted level over the medium term The CBSL will continue to monitor inflation and adjust rates as needed
The external sector continued to strengthen amidst a widening trade deficit.
Recovery in domestic economic activity is expected to continue
Business
Ceylinco Life agent among three global finalists for award
Ceylinco Life’s Ambalantota branch agent AIP Manjula has been named one of three global finalists for the prestigious Insurance Agent of the Year award at the 11th Asia Trusted Life Agents & Advisers Awards (ATLAA) 2026.
The recognition places a Sri Lankan insurance professional among the finalists in a regional field spanning South Asia, Southeast Asia, East Asia and the wider Asia-Pacific region.
Ceylinco Life said the achievement reflected the calibre and customer-focused approach of its agency force, while recognising Manjula’s professionalism and commitment to policyholders.
The award evaluates insurance agents on criteria extending beyond sales performance, including ethical conduct, client service, policy persistency, digital adoption, innovative practices and contributions to the insurance industry and community.
The awards are organised by Asia Advisers Network and Asia Insurance Review, with LIMRA as co-organiser. An independent judging and balloting process is monitored by KPMG as the official scrutineer. The judging panel comprises senior insurance executives, association presidents and industry experts from across the Asia-Pacific region.
Business
CEAT Kelani retains AA+ rating for sixth year
CEAT Kelani Holdings (CKH) has retained its National Long-Term Rating of ‘AA+(lka)’ with a Stable Outlook from Fitch Ratings for the sixth consecutive year, reflecting the company’s financial resilience and leading position in Sri Lanka’s pneumatic tyre market.
The ‘AA+(lka)’ rating, the second-highest on Fitch’s national scale, indicates a very strong capacity to meet financial commitments.
Fitch said CKH’s established market leadership and resilient financial profile remained key strengths, while noting its exposure to price-sensitive, cyclical and highly competitive markets.
The Stable Outlook reflects expectations that the company will maintain its market position despite rising input costs and increasing competition from imported tyres, while preserving adequate credit metrics during periods of weaker earnings and higher investment.
Fitch expects CKH’s established brand, extensive dealer network and adaptive pricing strategies to support its market position. Planned production facility upgrades are also expected to improve product quality, particularly in the radial tyre segment.
The rating agency expects near-term pressure on margins from higher raw material and energy costs but said the company’s low leverage and sound liquidity would provide a cushion.
CKH Chairman Chanaka De Silva said the rating reinforced the company’s focus on disciplined financial management, operational adaptability and long-term investment.
Business
Commercial Bank leads nationwide aquatic clean-up drive
Commercial Bank of Ceylon mobilised employees, customers, volunteers and community members for a nationwide coastal and aquatic clean-up campaign across 20 locations on September 19 to mark International Coastal Cleanup Day 2026.
Conducted under the bank’s sustainability platform, themed ‘Forward Together for a Cleaner Future’, the initiative covered 16 coastal locations and four inland waterways, bringing together stakeholders for a coordinated environmental conservation effort.
The flagship programme was held at Mount Lavinia Beach, with additional activities at Wellawatte and Galle Face beaches. Similar initiatives were conducted by the bank’s regional offices at locations including Kalutara, Negombo, Trincomalee, Batticaloa, Puttalam, Jaffna, Galle, Dondra, Tangalle and along the Mahaweli River.
Employees, management, Future Force volunteers, customers and their families participated alongside the Marine Environment Protection Authority (MEPA), United Nations Global Compact Network Sri Lanka, government and local authorities, environmental organisations and community members.
The bank said the initiative reflected its commitment to water stewardship after adopting Sustainable Development Goal 6 — Clean Water and Sanitation — as a priority goal in 2025.
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