Business
Kanrich boss says they’re not a failed finance company and will become stronger after merger
Merging with Nation Lanka in terms of Central Bank Master Plan
Kanrich Finance Ltd (KFL) is not a failed or collapsed company and is doing well in terms of all financial indicators. Therefore, by respecting the Master Plan of the Central Bank, Kanrich will amalgamate with another finance company and continue/engage in finance business as a stronger merged entity, Chairman and Director KFL, Ravi Ratnayake says.
“We will be merging with Nation Lanka Finance PLC (NFL) and will increase their capital funds to over three billion rupees. This is being done under the Master Plan for Consolidation of Non-Bank Financial Institutions by the Central Bank. We have received the approval for this merger which is aimed at meeting the deficit of the capital adequacy requirements of Rs. 2.5 billion, ” Ratnayake told the Sunday Island.
The Central Bank plans to reduce the number of finance companies in business here from 42 to 25. “One condition of their Plan is that the companies which cannot show a capital of Rs. 2.5 billion must merge with another company or become a non-licensed company. Though Kanrich fulfilled all other requirements, we missed this threshold marginally. We had to fill this capital gap or become a non-licensed company. Therefore, Kanrich is in the process of finalizing a merger with Nation Lanka,” he said.
“As directed by CBSL, Kanrich Finance has already started to settle its public liabilities of customers in full and this process will be completed before the end of February 2023. We are settling these liabilities as part of the conditions for the merger. We have adequate funds to settle all deposits and promissory notes.” Ratnayake added.
He said that Kanrich depositors after they received their deposits are welcome to join the newly merged entity. “There is another advantage to them as they can benefit from the increasing deposit rates in the market. In addition, our staff can provide advice if needed on re-investing.”
Ratnayake said that with the merger, the total branch network would increase to 60 and staff to nearly 1,000 but assured that there would be no re-trenching.He stressed that Kanrich Finance is doing well and continues to make profits demonstrating high financial stability. “Despite the C-19 and regulatory restrictions, we posted Rs. 183 million in profits before tax and Rs. 113 million after-tax profits last year. Kanrich is also reaching Rs. 2 billion capital and possesses an impressive capital adequacy ratio of 29 percent.” he added.
He recalled that prior to this in 2019 Kanrich had a hard time overcoming many challenges. They did so by institutional restructuring, cost reduction, and increased efficiency and productivity resulting in a positive turn around reducing overhead costs. Senior management even voluntarily agreed to cut their salaries and allowances.Commenting on their successful micro finance business, he said their product was entirely different from what is available elsewhere in the market as it was based on a sustainable financing concept.
“However we opted out of such loans mainly due to political interventions in the microfinance industry.”
The political leadership publicly declared in 2019 that they would write off rural masses’ micro-loans, resulting in the accumulation of extensive NPL portfolios by financial institutions, including Kanrich. The extensive NPL portfolio in the micro product resulted in weak income statements and tight liquidity.
The company was subject to severe lending and deposit restrictions by the regulatory authority.He stressed that Kanrich will not exit from the finance business as it is not a failed or collapsed company and does not have any other financial problems.
“On the contrary, we are doing well in terms of all financial indicators. After the merger we will continue to engage in the finance business as an even stronger merged entity,” he added. “With the amalgamation with Nation Lanka we will become stronger and as a standalone lending institution will provide a better service to customers. With the merger we will rebrand and introduce a new product line up.”
Business
Sri Lanka betting its tourism future on cold, hard numbers
National Airport Exit Survey tells quite a story
Australia’s role here is strategic, not charitable
In a quiet but significant shift, Sri Lanka’s tourism sector is moving beyond traditional destination marketing and instinct-based planning. The recent launch of the “From Data to Decisions” initiative jointly backed by Australia’s Market Development Facility and the Sri Lanka Tourism Development Authority, sent an unambiguous message: sentiment is out, statistics are in.
The initiative is anchored by a 12-month National Airport Exit Survey, a trove of data covering 16,000 travellers. The findings sketch a new traveller profile: nearly half are young (20–35), independent, and book online. Galle, Ella, and Sigiriya are the hotspots; women travellers outnumber men; and a promising 45% plan to return. This isn’t just trivia. It’s a strategic blueprint. If Sri Lanka Tourism listens, it can tailor everything from infrastructure to marketing, moving from guesswork to precision.
The keynote speaker, Deputy Minister Prof. Ruwan Ranasinghe called data “a vital pillar of tourism transformation.” Yet the unspoken truth is that Sri Lanka has long relied on generic appeals -beaches, heritage, smiles. In today’s crowded market, that’s no longer enough. As SLTDA Chairman Buddhika Hewawasam noted, this partnership is about “elevating how we collect, analyse, and use data.”
Australia’s role here is strategic, not charitable. By funding research and advocating for a Tourism Satellite Account, it is helping Sri Lanka build a tourism sector that is both sustainable and measurable. Australian High Commissioner Matthew Duckworth linked this support to “global standards of environmental protection” – a clear nod to the growing demand for green travel. This isn’t just aid; it’s influence through insight.
“The real test lies ahead,” a tourism expert told The Island. “Data is only as good as the decisions it drives. Will these insights overcome bureaucratic inertia? Will marketing budgets actually follow the evidence toward younger, independent, female travellers?,” he asked.
“The comprehensive report promised for early 2026 must move swiftly from recommendation to action. In an era where destinations are discovered on Instagram and planned with algorithms, intuition alone is a high-stakes gamble. This forum made one thing clear: Sri Lanka is finally building its future on what visitors actually do – not just what we hope they’ll do. The numbers are in. Now, the industry must dare to follow them,” he said.
By Sanath Nanayakkare
Business
New ATA Chair champions Asia’s small tea farmers, unveils ambitious agenda
In his inaugural address as the new Chairman of the Asia Tea Alliance (ATA), Nimal Udugampola placed the region’s millions of smallholders at the core of the global tea industry’s future, asserting they are the “indispensable engine” of a sector that produces over 90% of the world’s tea.
Udugampola, who is also Chairman of Sri Lanka’s Tea Smallholdings Development Authority, used his speech at the 6th ATA Summit held in Colombo on Nov. 27 to declare that the prosperity of Asian tea is “entirely contingent” on the resilience of its small-scale farmers, who have historically been overlooked by premium global markets.
“In Sri Lanka, smallholders account for over 75% of our national production. Across Asia, millions of families maintain the quality and character of our regional teas,” he stated, accepting the chairmanship for the 2025-2027 term.
To empower this vital community, Udugampola unveiled a vision focused on Sustainability, Equity, and Digital Transformation. The strategic agenda includes:
Climate Resilience: Promoting climate-smart agriculture and regenerative farming to protect smallholdings from environmental disruption.
Digital Equity: Leveraging technology like blockchain to create farm-to-cup traceability, connecting smallholders directly with premium consumers and ensuring fair value.
Market Expansion: Driving innovation in tea products and marketing to attract younger consumers and enter non-traditional markets.
Standard Harmonization: Establishing common regional quality and sustainability standards to protect the “Asian Tea” brand and push for stable, fair pricing.
Linking the alliance’s goals to national ambition, Udugampola highlighted Sri Lanka’s target of producing 400 million kilograms of tea by 2030. He presented the country’s “Pivithuru Tea Initiative” as a model for other ATA nations, designed to achieve this through smallholder empowerment, digitalization, and aligned policy objectives.
By Sanath Nanayakkare
Business
Brandix recognised as Green Brand of Year at SLIM Awards 2025
Brandix Apparel Solutions was recognised as the Green Brand of the Year at the Sri Lanka Institute of Marketing (SLIM) Brand Excellence Awards 2025, taking home Silver, the highest award presented in the category this year.
The ‘Green Brand of the Year’ recognises the brand that drives measurable environmental impact through sustainable practices, climate-aligned goals and long-term commitment to protecting natural resources.
A pioneer in responsible apparel manufacturing for over two decades, Brandix has championed best practices in the sphere of sustainable manufacturing covering environmental, social, and governance aspects. The company built the world’s first Net Zero Carbon-certified apparel manufacturing facility (across Scope 1 and Scope 2) and meets over 60% of its energy requirement in Sri Lanka via renewable sources.
Head of ESG at Brandix, Nirmal Perera, said: “Being recognised as Green Brand of the Year is an encouraging milestone for our teams working across sustainability.”
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