Business

Futurist Dr. Clarence Tan and LAN president Padmaja Ruparel speak at LAN Investors Night

Published

3 years ago

2023/07/10

a panel discussion held at the LAN Investors Night. Participating (from left to right) were the moderator, Hatch Works Venture Partner Lakshan De Silva, as well as Serial Investor/Futurist Dr. Clarence Tan, IAN President Padmaja Ruparel, and ACUITY Group Chief Strategy Officer Yaveen Jayasekera.

The Lankan Angel Network (LAN), the country’s largest network of angel investors, recently held an Investors Night, where members and other potential investors were updated on what’s happening locally, and globally, in the startup ecosystem.

Held in association with LAN’s ecosystem partner Ford Foundation, the LAN Investors Night was also the setting for the announcement that the Rs. 100 Mln Angel Fund, launched by LAN in 2021, has been fully deployed. The Fund made investments in eight startups, namely MintPay, Chakra Suthra, Spectrify, Billable, QuickHelp, Ruwini Jayarathne Jewelry, True by Tina and Magicbit. Following the full deployment of the Angel Fund, and in line with global trends, LAN is planning to soon launch its follow-on fund, which will be most helpful in accelerating the growth of its startups.

Additionally, this event featured Keynote Speakers Dr. Clarence Tan, a renowned futurist and former Head of AsiaPac at Singularity, and Ms. Padmaja Ruparel, Co-Founder/President of the Indian Angel Network (IAN) and Founding Partner of the US$ 55 Mln IAN Fund; who spoke on the importance of angel investing and having different types of investments available, as well as the need for follow-on funding.

Speaking on his experience as an Angel Investor, Dr. Tan noted that the first question he asked when evaluating potential investments was why the founders were doing it. For example, is it solely to make money? If so, they could move on if a bigger project came along. So, his investments were focused on talented people with the right purpose. He also signalled venture investing would gravitate towards exponential organizations, since concepts like AI could not be adequately serviced by more traditional, linear thinking processes.

The next speaker, Ms. Ruparel, spoke on the beginnings of IAN, and how it initially had an 18 to 20 per cent failure rate, which was an acceptable figure on par with global trends. But more troubling was that, during the early days, an additional 30 per cent of investments had to wind down due to a lack of follow-on funding, which the IAN Fund was set up to address. This Fund, backed by a high profile team of industry stalwarts, was also a valuable resource during COVID. It had the ability to help several clients in its portfolio, who were on the verge of failing, to pivot while also going to the lengths of helping some secure new customers to ensure they made it through COVID.

Further, Ms. Ruparel shared her early experiences with the local startup ecosystem. Currently, Sri Lanka is the third largest in South Asia, with over 800 startups and 100 Angel Investors participating. She added that the current challenge for Sri Lanka is addressing a shortfall in follow-on funding, since capital is primarily raised from Angel Investors at present. She also advised that delays in delivering suitable follow-on funding could result in investors opting out, as they needed to see value creation on capital, and successful exits, to stay interested. As such, unlocking a wider and more diverse funding pool was imperative.

During the unprecedented economic hardships experienced by Sri Lankans in 2022 and 2023, LAN was a driving force in further building the local startup ecosystem, which was ably achieved by LAN’s Immediate Past Chairperson Ms. Chandi Dharmaratne.

According to LAN’s current Chairperson, Prajeeth Balasubramaniam; “Ecosystem building was always a part of LAN since its inception. But, due to a lack of funding in the country, LAN will over the next two years place a greater emphasis on building the investor ecosystem in a sustainable way for this asset class. This will now allow LAN to better serve its members by giving them more investor related information, including access to visibility of deal flow, regional trends, etc. In line with this, LAN is actively planning to launch a follow-on fund that aligns with our commitment to Environmental, Social, and Governance (ESG) principles.”

Balasubramaniam added that this fund aims to accelerate the expansion of the startup asset class in Sri Lanka, contributing to the country’s economic resurgence. “By supporting the growth of the startup entrepreneurship asset class, we anticipate a positive impact on various aspects such as job creation, increased tax revenue, enhanced research and development (R&D), and more. We firmly believe that this growth will not only drive economic progress but also align with our ESG values, fostering sustainable and responsible business practices. Through our strategic investment and support, we aim to create a thriving ecosystem that promotes innovation, social well-being, and environmental stewardship. We are excited about the potential of this initiative to contribute to Sri Lanka’s economic development.”

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Business

Oil at $150 will trigger global recession, says boss of financial giant BlackRock

Published

20 hours ago

2026/03/25

Priyan

Larry Fink was speaking exclusively to BBC business editor Simon Jack (BBC)

If the price of oil hits $150 a barrel it will trigger a global recession, the boss of US financial giant BlackRock has told the BBC.

Larry Fink, who leads the world’s largest asset manager, said if Iran “remains a threat” and oil prices stay high it will have “profound implications” for the world economy.

In a wide-ranging exclusive interview, he also denied there was an AI bubble, although he said the new technology meant too many people were pursuing university degrees and not enough doing technical training.

BlackRock is a financial colossus, controlling assets worth $14 trillion (£10.5tn), and is one of the biggest investors in many of the world’s largest companies.

Its size and spread gives Fink – who is one of the eight co-founders of the business, which started in 1988 – a unique insight into the health of the global economy.

The conflict in the Middle East has triggered wild moves on financial markets as people try to assess what will happen to energy costs.

For Fink, it is too early to determine the ultimate scale and outcome of the conflict, but he believes it will be one of two extreme scenarios.

In one, if the conflict is settled and Iran becomes a country that can be accepted again by the international community then the price of oil could fall back to below where it stood before the war.

But if not, he says, then there could be “years of above $100, closer to $150 oil, which has profound implications in the economy” and an outcome of “a probably stark and steep recession”.

The surge in energy costs has led to some in the UK to argue that it should be focusing more on producing its own oil and gas.

On Tuesday, industry body Offshore Energies UK said that without more domestic production, the country risks becoming reliant on imports “at a time of rising global instability”.

Fink says countries need to be pragmatic about their energy mix by using all sources available to them, but providing cheap energy is key to driving growth and raising living standards.

“Rising energy prices is a very regressive tax. It affects the poor more than the wealthy.”

While the UK already has some solar and wind power and hydrocarbons, if oil prices were to rise to $150 for three or four years, “you would have so many countries moving so rapidly towards solar and maybe even wind”.

Countries should not depend on just one source, he says.

“Use what you have unquestionably, but also aggressively move towards alternative sources too.”

Some analysts have suggested that there are some echoes of the run-up to the 2007-08 financial crisis in the markets at the moment.

Energy prices are surging and some have flagged signs of cracks in the financial system. BlackRock itself is one of several firms to have limited withdrawals by nervous investors from private credit funds.

But Fink is adamant there is no chance of a repeat of the financial trauma seen in 2007-08, when several banks around the world collapsed or had to be rescued, as he believes financial institutions today are more secure.

“I don’t see any similarities at all,” he says. “Zero.”

The issues affecting some funds account for a small fraction of the overall market and investment from institutions remains strong, he says.

Fink also rejects suggestions that the surge in investment in AI, which has seen billions of dollars invested in the new technology, has been overblown.

“I do not believe we have a bubble at all,” he says.

“Could we have one or two failures in AI? Sure, that I’m fine with.”

Last year, BlackRock was part of a consortium that bought one of the world’s largest data centre providers, Aligned Data Centres, in a $40bn deal.

“I believe there’s a race for technology dominance. I believe that if we do not invest more, China wins. I believe it’s mandatory that we are aggressively building out our AI capabilities.”

The biggest issue he feels that is hindering the expansion of AI in the US and Europe is the cost of energy.

While China is investing hugely in solar and nuclear power, in Europe “I just see a lot of talk and no action”, he says, while in the US “as much as we are energy independent, we better start focusing on solar… because we need to have cheap, inexpensive power to move into AI”.

Earlier this week, in his annual letter to shareholders, Fink said the boom in artificial intelligence risked widening inequality, with only a small number of firms and investors seeing the benefits.

However, speaking to the BBC, he emphasised AI was going to create an “enormous amount of jobs”.

He said that in his letter he had written about how many jobs would be created “related to electricians and welders and plumbers”.

In contrast, there might not be as much demand for some office jobs as AI evolves and this could lead to a rethink about what roles are needed as “society is changing and evolving”.

“We really put judgement on so many jobs and so many people who probably should not have gone into banking or media or law, [who] probably should have been a great worker with their hands, and we need to now rebalance that approach,” he says.

In the US, he says, after World War Two “we built the foundation of education, and we said to all the young people, go to college, go to college, go to college. And we probably overdid it”.

“We need to balance that out, and we need to be proud that… a career can be just as strong in these fields of plumbing and electricians.”

(BBC)

Business

Mahindra ldeal Finance’s Rs 1 Bn debut debenture issue oversubscribed on day 1

Published

22 hours ago

2026/03/25

Sahan Weerasooriya

Director/CEO, Mufaddal Choonia

Mahindra Ideal Finance Limited (MIFL) has announced the successful conclusion of its debut Rs 1 Billion debenture issue, which was oversubscribed on the first day of opening, marking a significant capital market milestone for one of Sri Lanka’s fastest-growing licensed Non-Banking Financial Institutions.

The Issue comprised up to Ten Million (10,000,000) Tier 2, Listed, Rated, Unsecured, Subordinated, Redeemable Debentures at a par value of LKR 100 per Debenture, raising up to Sri Lanka Rupees One Thousand Million (LKR 1,000,000,000), with a five-year tenure maturing in 2031.

Commenting on the outcome, MIFL Managing Director/CEO, Mufaddal Choonia said the proceeds of the Company’s inaugural debenture issue will be deployed to strengthen lending capacity across its core business segments, including vehicle leasing, gold loans, SME loans, and business loans.

“The success of our first debenture issue is testament of our performance so far and speaks of the confidence that investors have placed in our future growth story. The strong market response is also the best validation we can secure from the investor community on the strong fundamentals that underpin our business. We will honor that trust by deploying these funds to further provide accessible credit to enrich the lives of our customers and for the communities we serve.”

The capital raise also strengthens the Company’s Tier 2 capital base in compliance with the Central Bank of Sri Lanka’s Capital Adequacy Requirements.

The Debentures were offered in two structures — Type A, at a fixed rate of 12.00% per annum payable annually, and Type B, at a floating rate of the 364-Day Treasury Bill rate plus 3.50% per annum payable semi-annually.

The Issue carried a credit rating of A (lka) from Fitch Ratings Lanka Limited, with MIFL holding an entity rating of AA-(lka) with a Stable Outlook. The Issue was managed by NDB Investment Bank Limited, with Bank of Ceylon serving as Joint Placement Agent. (MIFL)

Business

SEC and CSE strengthen role of auditors of Watchlist Companies

Published

22 hours ago

2026/03/25

Sahan Weerasooriya

From Left to right: Kassapa Weerasekara, Ms. Manuri Weerasinghe and Ms. Nilupa Perera

The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE) jointly organized an awareness session recently, for auditors of companies which are currently on the CSE Watchlist. The session focused on enhancing awareness of enforcement actions and timelines, reducing prolonged Watchlist durations, and fostering a more coordinated regulatory approach among regulators, auditors, and listed companies.

Addressing the session, the Chairman of the SEC, Senior Prof. D.B.P.H. Dissabandara highlighted the core professional virtues of an auditor drawing from his own career beginnings, “At the heart of every auditor’s role lies three virtues: integrity, objectivity and confidentiality.” He reminded the gathering, that while an auditor may formally be recognized as a supplementary service provider under the SEC Act, their true value runs far deeper. Every time a listed company submits its financial statements, it is the auditor’s opinion that gives investors the confidence to trust those numbers. In that sense, auditors are not just ticking a regulatory box, they are the ones holding the line on transparency.

Senior Prof. D.B.P.H.
Dissabandara

Further, Professor Dissabandara drew attention to the current Watchlist situation, noting that while the inclusion of certain companies on the Watchlist is an appropriate regulatory measure, their prolonged presence on the Watchlist may send adverse signals to investors. He called for a structured connected approach involving auditors and listed company management to ensure incremental progress towards resolving Watchlist triggers, particularly those arising from going concern issues and the non-submission of financial statements.

The Head of Listed Entity Compliance at the CSE, Kassapa Weerasekara delivered a presentation focused on enforcement actions that can lead to securities being transferred to the watchlist. Weerasekara reminded the gathering “If companies take the right steps and obtain independent verification on the resolution of all matters giving rise to Modified Opinion and Emphasis of Matter on Going Concern, their securities can be fully reinstated.” He closed by emphasizing that the process is designed to give companies a fair and structured opportunity to correct course.