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HNB records strong and stable performance

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Hatton National Bank PLC (HNB) solidified its position as one of the most sustainable and strongest banks recording a well-rounded performance in 2021. Group Profit After Tax (PAT) increased to Rs 20 Bn, representing a growth of 47% YoY while Bank PAT improved to Rs 17.3 Bn as economic activity picked up during the year.

The monetary policy loosening adopted to spur economic growth post the first wave of the COVID-19 pandemic in 2020 continued to be in place up to August 2021. Although the interest rates increased subsequent to the 50bps increase in policy rates in August, the average AWPLR for 2021 was approximately 160bps below the rate for 2020. This resulted in a decline of 5.1% in interest income to Rs 98.6 Bn, despite a strong loan growth in the second half of the year. Similarly interest expense reduced by 17.2% to Rs 49 Bn, resulting in a Net Interest Income (NII) growth of 10.8% YoY to Rs 49.6 Bn.

Commenting on the performance during the year, Chairperson of HNB PLC Aruni Goonetilleke stated that “2021 was a test of endurance and agility as the COVID-19 pandemic continued to disrupt lives and economic activity. During the tumultuous year, our colleagues around the country, led by our Managing Director/CEO Jonathan Alles and the Management Team have focused on protecting the interests of shareholders, while ensuring the wellbeing of colleagues, supporting our customers and showing solidarity with our communities”.

“I am pleased to note the overall robust performance of the HNB Group during 2021, delivered through sustainable growth and profitability, improved asset quality as well as strong capital and liquidity. The Group was also successful in driving digital adoption through future ready products and services. I wish to place on record my sincere appreciation for the entire Hatna family for their commitment and dedication during testing times, our valued customers for their continuous patronage, our investors and all other stakeholders for their trust and confidence”.

Net Fee and Commission income of the Bank grew by 27.5% YoY to Rs 9.6 Bn driven by higher card and trade business volumes as economic activity rebounded. Other non-interest income grew by 61% to Rs 6.5 Bn, largely due to the position revaluations on account of the deprecation of the LKR by 8% during 2021.

Improvements made with regard to credit underwriting standards, approval processes and recovery action has resulted in further improvements in asset quality reflected by the NPA ratio which improved to 3.38% from 4.31% in 2020 to record one of the best NPA ratios in the industry. The Net Stage III loans ratio also improved by 85 bps to 2.55% as at end of 2021.

The impairment charge for the year increased to Rs 18.8 Bn as significant management overlays were recognized on account of elevated risk industries and a provision of Rs 6.9 Bn was made on account of foreign currency denominated government securities as the sovereign was downgraded to CC by Fitch Ratings.

Total operating expenses increased by only 2.3% YoY mainly due to a 6.1% reduction in personnel costs. The Bank continued its policy of not laying off or cutting salaries due to the pandemic and concluded a very successful collective agreement for the non-executive staff. However, the extension of retirement age to 60 years resulted in a reversal of Rs 2.3 Bn on provision for pension and retirement benefits which led to the drop in personnel expenses. Other operating expenses which account for 52% of total operating expenses increased by 11.4% YoY. However, this was still 3.9% below the pre-pandemic level.

The growth in Total Operating Income at a higher rate of 16.7%, resulted in the cost to income ratio improving considerably to 34.4% compared to 39.3% in 2020.

Commenting on the performance MD/CEO of HNB PLC Jonathan Alles stated that “Humanity has faced the crisis of a generation and HNB has demonstrated remarkable resilience against this backdrop. Our journey over the past 133 years has been through many peaks and troughs . We have continuously strengthened our risk management, compliance and governance, which has helped us overcome challenges. This is testament to our strong and stable performance”.

“HNB has continued to extend support to revive livelihoods. We are pleased to note that many customers have been successful in getting back on their feet as moratoria extended has reduced from 40% of our loan book to 9% as at end of December 2021. Currently the moratoria outstanding is only in the tourism sector, with concessions extended to other sectors ending in 2021. The relaxation of travel restrictions by many countries and high vaccination rate in Sri Lanka augurs well for the tourism sector”.

“Our focus on being future ready and the investments we have made over the past enabled us to support our customers to carry out their transactions seamlessly, through our digital platforms and payment solutions. With evolving customer needs and lifestyles as well as high digital adoption rates owing to the pandemic, we will continue our digital transformation journey to provide an enjoyable banking experience to our customers.”

“Team HNB is at the heart of our business and enhancing the employee value proposition has been a core focus. As we move on, we will continue our efforts on strategic workforce planning, build a strong talent pipeline to operate in a future fit organization, develop future leaders through structured programmes and promote work life balance”. (HNB)



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Saudi Vision 2030 offers new economic opportunities for Sri Lanka

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International delegates

By Ifham Nizam

Saudi Arabia’s Vision 2030 is creating opportunities for Sri Lanka in trade, investment, renewable energy, tourism and employment while strengthening the longstanding friendship between the two countries.

Led by King Salman bin Abdulaziz Al Saud and Crown Prince and Prime Minister Mohammed bin Salman, the programme aims to diversify Saudi Arabia’s economy, attract international investment, develop new industries and reduce dependence on oil revenues.

Launched in 2016, Vision 2030 is built around three pillars: a vibrant society, a thriving economy and an ambitious nation. Its focus on tourism, technology, logistics, renewable energy, industrial development and private-sector growth aligns with Sri Lanka’s need for foreign investment, stronger exports, energy security and sustainable employment.

Trade and investment opportunities

The establishment of the first Saudi–Sri Lanka Joint Business Council in November 2025 created a platform for businesses to identify investment opportunities, develop partnerships and address trade barriers. Saudi participation in Sri Lanka Expo 2027 could further strengthen commercial ties.

Sri Lanka can expand exports of value-added tea, spices, apparel, rubber products and processed foods to Saudi Arabia. Better distribution networks, packaging and compliance with market standards would help local producers, especially small and medium-sized enterprises, compete more effectively.

Saudi investors could explore Sri Lankan tourism, logistics, food processing, renewable energy and export-oriented manufacturing. The goal should be long-term partnerships that create jobs, transfer technology and improve productivity rather than simply increasing trade.

Renewable energy and green investment

Energy is another promising area. Saudi Arabia’s diversification programme includes major investments in renewable energy and emerging technologies. Partnerships in solar power, battery storage, electricity infrastructure and energy efficiency could help Sri Lanka reduce dependence on imported fossil fuels and improve energy security.

Cooperation could also include technical training and technology transfer. Saudi investment in sustainable tourism, modern agriculture, water management and infrastructure could create further opportunities if projects are commercially viable and supported by transparent regulations.

Vision 2030 seeks to make Saudi Arabia a major international tourism destination while improving services for pilgrims visiting Makkah and Madinah.

Sri Lanka could attract more Saudi visitors through better air connectivity, targeted marketing and partnerships with travel operators. Sri Lankan companies could also supply food, hospitality services and other products to Saudi Arabia’s expanding tourism sector.

Employment remains central to bilateral relations. Sri Lankan workers contribute to the Saudi economy, while their remittances provide valuable foreign exchange at home. As Saudi Arabia develops new industries, Sri Lanka can strengthen vocational training and skills-based recruitment in hospitality, healthcare, construction and technical services. Recognised qualifications, ethical recruitment and worker protection would benefit both countries.

Economic cooperation is complemented by Saudi Arabia’s distinctive spiritual role as custodian of Islam’s two holiest mosques.

Through the Custodian of the Two Holy Mosques’ Guests Programme for Hajj, Umrah and Visit, King Salman approved the hosting, at his personal expense, of 1,000 male and female Umrah performers from around the world in June 2026. Implemented by the Saudi Ministry of Islamic Affairs, Dawah and Guidance, the programme’s first group included 250 guests from 16 Asian countries, who visited Madinah and Makkah and took part in cultural and educational activities.

For those invited, performing Umrah and visiting the holy sites is a deeply meaningful religious experience. The initiative reflects Saudi Arabia’s commitment to facilitating worship and strengthening bonds among Muslim communities. It also complements Vision 2030’s Pilgrim Experience Programme, which aims to improve transport, accommodation, digital services and facilities for pilgrims.

This spiritual and cultural engagement adds a human dimension to commercial ties, helping deepen understanding between the two peoples.

Sri Lanka and Saudi Arabia established diplomatic relations in 1974, and their partnership has grown through trade, employment, development cooperation and diplomacy. The next step is to convert this goodwill into measurable results.

Sri Lanka needs a clear portfolio of viable projects, predictable regulations and efficient procedures to attract Saudi investment. Local businesses must be prepared to meet Saudi market requirements, while the Joint Business Council and Sri Lanka Expo 2027 can help connect investors and entrepreneurs.

The partnership should ultimately be judged by increased exports, productive investment, quality employment and the transfer of skills and technology.

Vision 2030 offers Sri Lanka an opportunity to build a more dynamic relationship with Saudi Arabia by combining commercial cooperation with diplomatic, spiritual and people-to-people ties. Together, the two countries can create lasting benefits for their economies and communities.

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LKR 3 billion HLAB fund launched to help Sri Lankan businesses scale

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Hatch, Lankan Angel Network and BOV Capital join forces, with First Capital Holdings PLC committing LKR 300 million as anchor limited partner in a fund built on a commercial investment case.

Starting a business is difficult. Building one that can grow, compete and endure is harder still.

For Sri Lankan founders, the challenge doesn’t end when they prove their idea works. The next stage demands stronger operations, access to new markets and the capital to pursue opportunities that could transform a promising venture into a sustainable business.

A new initiative aims to help more founders take that next step.

Hatch, Lankan Angel Network (LAN) and BOV Capital have launched HLAB, a collective LKR 3 billion fund designed to back early and growth stage regional companies that are incorporated in Sri Lanka. Announced at the final event of First Capital Startup Nation, organised by Hatch, the initiative brings together three established participants in the country’s startup ecosystem around a shared ambition: expanding access to capital for businesses seeking to grow.

Adding institutional participation to the initiative, First Capital Holdings PLC has committed LKR 300 million as the fund’s anchor limited partner, representing 10% of its total size.

From promising startups to enduring businesses

The transition from an early stage venture to a sustainable, growing company is a defining point in a founder’s journey. Businesses must move beyond establishing their models and begin building the operational strength and market reach needed to pursue larger opportunities.

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JXG’s Wasanthi Stephen makes history as the first female recipient of the CIPM Sri Lanka Lifetime Gold Award

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JXG (Janashakthi Group) celebrates Wasanthi Stephen, Group Chief Human Resources Officer, on becoming the first female recipient of the prestigious CIPM-Baurs Lifetime Gold Award 2026 from the Chartered Institute of Personnel Management (CIPM) Sri Lanka .

JXG (Janashakthi Group) celebrates Wasanthi Stephen, Group Chief Human Resources Officer, on becoming the first female recipient of the prestigious CIPM-Baurs Lifetime Gold Award 2026 from the Chartered Institute of Personnel Management (CIPM) Sri Lanka since the award’s inception. Presented on 14 October 2026, at the opening of the National Human Resource Conference (NHRC) 2026 at Monarch Imperial, Kotte, the award marks a historic milestone for Sri Lanka’s Human Resources profession and a proud moment for JXG.

The highest individual recognition in Sri Lanka’s Human Resource Management sphere, the CIPM Sri Lanka Lifetime Gold Award celebrates individuals whose long-standing contributions have advanced the HR profession at organisational, national, and international levels. It recognises professional excellence, ethical leadership, transformational impact, and a sustained commitment to people and institutions.

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