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
Private taxi operators at BIA call for speedy rental relief as tourist arrivals dwindle
Private taxi operators at Bandaranaike International Airport are calling for urgent rental relief, stating that they are struggling to sustain operations after paying nearly Rs. 19 million in monthly rental fees amid a sharp decline in tourist arrivals during the off-season.
The operators said tourist arrivals have dropped by nearly 80%, severely affecting their income and making it difficult to continue meeting high operational costs.
“Only a small number of tourists are now arriving at the airport, and a majority of them are being taken by metered taxi operators, who pay only around Rs. 700 per ride as fees to Airport and Aviation Services, an operator said.
According to the operators, the six long-standing private taxi service providers at the airport each pay monthly rentals ranging from approximately Rs. 2.9 million to Rs. 4 million. In addition, they are required to maintain a minimum a fleet of six vehicles along with dedicated airport staff.
“What we are requesting is a temporary reduction in monthly rental payments for around three to four months until tourist arrivals improve and the industry returns to normal, they said.
The operators noted that they have been operating at the airport for more than two decades, providing transport services to both local and international travelers, while metered taxi services entered the airport transport sector only about two years ago.
They also alleged that metered taxi operators have been granted more favourable operating conditions and questioned the process through which those operators were allowed to operate at the airport.
Operators argue that the present financial burden has become unsustainable, given the sharp drop in business volumes and what they describe as an uneven competitive environment within the airport transport system.
“What we are requesting is a 50% reduction in monthly rental fees for a period of at least three months, they said.
They also raised concerns about the quality and condition of some vehicles operated by metered taxi providers.
“Passengers are often unaware of the condition of some of these vehicles until they enter them, which can compromise safety standards, one operator claimed.
In contrast, the private airport taxi operators say they maintain newer vehicles and employ experienced, professionally trained drivers to ensure higher standards of passenger safety and service quality.
The operators warned that failure to address the issue could have wider economic and social consequences. The six service providers collectively employ around 250 staff, and continued financial pressure may lead to job losses and a reduction in organised airport transport services.
By Hiran H Senewiratne
Business
Refurbished AAC Call Box declared open
The operation of Automobile Association of Ceylon(AAC) Call Boxes, in the past had provided yeoman service to many motorists including during the era of British planters. AAC services for members are a motoring security when they travel.
The Call Box in Nuwara Eliya was recently refurbished to provide a better and improved service to the Members in the area and the touring public. Now from this Call Box the motorists could get Road Side Assistance, Valuation Reports, Technical Advice and also issuance of International Driving Permits.

The refurbished Call Box at Nuwara Eliya was declared open by Dhammika Attygalle, President of the Association in the presence of S V Ganesh – Vice President, several Executive Committee members, Puthrasigamani, Life Member of the Association, Eng. C S Samarasekera of RDA- Nuwara Eliya, Devapriya Hettiarachchi, Secretary (AAC) and Eng. C L Liyanasuriya – Chief Engineer(AAC).
The services from the Nuwara Eliya Call Box are available from 8.00am to 5.00pm.
Call Technical Officer Sampath Madagama on 0767315696.
Business
Ceylon Chamber of Commerce to host Sri Lanka Climate Summit 2026
From Risk to Opportunity: Mainstreaming Climate Action into Sri Lanka’s Growth Story
As climate rules tighten globally and investor expectations shift from commitment to compliance, climate action is now directly tied to trade, competitiveness, and access to finance. Against this backdrop, The Ceylon Chamber of Commerce will host the second edition of the Sri Lanka Climate Summit on 9 June 2026 at the Taj Samudra Hotel, convening policymakers, industry leaders, financiers, and technical experts to focus on pathways for integrating climate action into Sri Lanka’s growth story.
Held as a biennial platform, the Summit returns this year under the theme “From Risk to Opportunity: Mainstreaming Climate Action into Sri Lanka’s Growth Story.” While the inaugural edition in 2024 focused on building awareness and advocacy, the 2026 Summit shifts the conversation toward implementation, technical readiness, and compliance as climate-related obligations begin to directly influence access to markets, finance, and investment.
Rather than treating sustainability as a standalone agenda, this year’s discussions will explore how climate considerations are becoming embedded across core areas of business and economic decision-making, from infrastructure and trade to finance, governance, digitalisation, agriculture, and supply chains.
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