News
Fitch downgrades ten Lankan banks to Rating Watch Negative
Fitch Ratings on Thursday downgraded the National Long Term Ratings of 10 Sri Lankan banks following the recent sovereign downgrade and recalibration of the agency’s Sri Lankan national rating scale.Given below is the press release in full: “The recalibration is to reflect changes in the relative creditworthiness among Sri Lankan issuers following Fitch’s downgrade of Sri Lanka’s Long-Term Local Currency Issuer Default Rating (IDR) to ‘CC’ from ‘CCC’/Under Criteria Observation on 1 December 2022. Fitch typically does not assign Outlooks or apply modifiers to sovereigns with a rating of ‘CCC+’ or below.
“National scale ratings are a risk ranking of issuers in a particular market designed to help local investors differentiate risk. Sri Lanka’s national scale ratings are denoted by the unique identifier ‘(lka)’. Fitch adds this identifier to reflect the unique nature of the Sri Lankan national scale. National scales are not comparable with Fitch’s international rating scales or with other countries’ national rating scales. For details, see Fitch Ratings Recalibrates Sri Lanka’s National Rating Scale, dated 19 December 2022.
“The National Ratings of the Sri Lankan banks consider their creditworthiness relative to other issuers in the country. The recalibration of the Sri Lankan National Rating scale has resulted in downgrades of the National Long-Term Ratings of the following banks:
“Bank of Ceylon (BOC) to ‘A(lka)’/Rating Watch Negative (RWN) from ‘AA-(lka)’/RWN, People’s Bank (Sri Lanka) (PB) to ‘A(lka)’/RWN from ‘AA-(lka)’/RWN, Commercial Bank of Ceylon PLC (CB) to ‘A(lka)’/RWN from ‘AA-(lka)’/RWN, Hatton National Bank PLC (HNB) to ‘A(lka)’/RWN from ‘AA-(lka)’/RWN, Sampath Bank PLC (Sampath) to ‘A(lka)’/RWN from ‘AA-(lka)’/RWN, Cargills Bank Limited (CBL) to ‘A(lka)’/RWN from ‘A+(lka)’/RWN, DFCC Bank PLC (DFCC) to ‘A-(lka)’/RWN from ‘A+(lka)’/RWN, National Development Bank PLC (NDB) to ‘A-(lka)’/RWN from ‘A(lka)’/RWN, Seylan Bank PLC (Seylan) to ‘A-(lka)’/RWN from ‘A(lka)’/RWN, Nations Trust Bank PLC (NTB) to ‘A-(lka)’/RWN from ‘A(lka)’/RWN.
“The downgrades of the National Ratings of the 10 banks are driven by the downgrade of the sovereign’s Long-Term Local-Currency IDR and the recalibration of the national rating scale while also reflecting the relative creditworthiness among Sri Lankan issuers.
“A probable default on the sovereign’s local-currency obligations increases the risk that authorities will impose restrictions on banks servicing their local-currency obligations. That said, we believe this risk is lower than non-payment by the sovereign.
“The downgrade of CBL’s rating incorporates the additional consideration of parent CT Holdings PLC’s (CTH) limited ability to provide extraordinary support. This is reflected in CBL’s large size relative to the group and the bank’s weak stand alone credit profile.
We have maintained the national ratings on RWN to reflect the potential for these banks’ credit worthiness relative to other entities on the Sri Lankan national ratings scale to further deteriorate amid the likelihood of capital and funding stress as the default risk on domestic debt increases while access to foreign-currency funding remains constrained. The Rating Watch Negative (RWN) on CBL’s rating reflects our view that CBL is not immune to these system wide stresses despite parental support.”
News
Colombo Metropolitan Region, Eastern Development Plan and the Greater Hambantota Project discussed in detail
A meeting between Secretary to the President, Dr. Nandika Sanath Kumanayake and relevant ministry officials was held on Tuesday (08) at the Presidential Secretariat regarding the development plans to be implemented in Sri Lanka under three zones, in collaboration with the Surbana Jurong Institute of Singapore and 18 Ministries.
During the meeting it was discussed in detail regarding the plans for the Colombo Metropolitan Region, Eastern Development Plan and the Greater Hambantota Project. The officials from Singapore-based urban planning and infrastructure consultancy Surbana Jurong also joined the discussion virtually.
Progress reports on the three projects were reviewed in detail and Dr. Kumanayake instructed the officials to identify any deficiencies and finalize the necessary actions within the next two weeks.
The discussion also addressed delays in securing necessary approvals for investments under the existing regulatory framework, as well as the urgent need to revise certain legislative instruments to better facilitate national development.
The meeting was attended by Secretary to the Prime Minister G.P. Saputhanthri, Senior Additional Secretary to the President Russel Aponsu, Secretary to the Ministry of Urban Development, Construction and Housing U.G. Ranjith Ariyaratne, and several senior officials from the respective ministries.
News
Heat index at ‘Caution level’ in Northern, North-central, Eastern, North-western, Western provinces and Monaragala district today [09]
The Natural Hazards Early Warning Centre of the Department of Meteorology has issued a Warm Weather Advisory for 09 April 2025
The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Northern, North-central, Eastern, North-western, and Western provinces and in Monaragala district.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned below is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated. Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
Prof. Jayasumana raises possibility of Lanka ending up with “Quad’
Opposition and SJB Leader Sajith Premadasa has said it is the responsibility of the NPP government to submit the MoUs/agreements that were recently signed with India to the respective Sectoral Oversight Committees (SOCs).
Premadasa said so when The Island raised the issue with him. He said that during his meeting with Premier Modi his focus had been on opening the Indian market for Sri Lankan garment exports.
The seven MoUs/agreements signed on 05 April included defence cooperation, energy, Eastern Province development and digitalisation.
Meanwhile, the Vice President of Sarvajana Balaya and former lawmaker Prof. Channa Jayasumana said that the government owed an explanation whether the recently signed MoU on defence cooperation directly or indirectly attached Sri Lanka to the Quad security alliance, consisting of the US, Australia, Japan and India.
The former SLPPer raised the issue at a meeting held at Boralesgamuwa on Monday (07) in support of Sarvajana Balaya candidates contesting the May 6 LG polls.
Prof. Jayasumana urged that the MoU on Defence Cooperation be placed before Parliament, and the people, without further delay. The academic who served as State Health Minister during President Gotabaya Rajapaksa’s tenure said that President Anura Kumara Dissanayake’s foreign policy direction should be dealt with.
By Shamindra Ferdinando
Colombo Metropolitan Region, Eastern Development Plan and the Greater Hambantota Project discussed in detail
IPL 2025: Sensational Priyansh Arya condemns Chennai Super Kings to another loss
Heat index at ‘Caution level’ in Northern, North-central, Eastern, North-western, Western provinces and Monaragala district today [09]
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