Business
Kanrich Finance to merge with Nation Lanka Finance and increase capital base to over Rs. 3 billion
By Hiran H.Senewiratne
Kanrich Finance Ltd (KFL) will merge with Nation Lanka Finance PLC (NFL) and will increase their capital funds to over Rs. 3 billion, chairman/Director KFL Ravi Ratnayake said.
“This is being done under the Master Plan for Consolidation of Non-Bank Financial Institutions, evolved by the Central bank, and 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 Island Financial Review.
Ratnayake added: “As per directions of the CBSL, Kanrich Finance has already started to settle the public liabilities of their customers in full and this process will be completed before the end of February 2023. The company settles these liabilities as part of the regulations for the merger and we have adequate funds to settle all deposits and promissory notes.
“Kanrich depositors, after they receive 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.
“The Central Bank plans to reduce the number of finance companies 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, Kanrich is missing this threshold marginally. Therefore, Kanrich has to fill this capital gap or become a non-licensed company. Accordingly, Kanrich is in the process of finalizing a merger with another finance company.
Kanrich Finance is performing well and continues to make profits, recording high financial stability. Despite the C-19 and regulatory restrictions, we recorded Rs. 183 million in profits before tax and Rs. 113 million after-tax profits last year. Kanrich is also reaching Rs. 2 billion in capital and possesses an impressive capital adequacy ratio of 29%.
“Prior to this in 2019, Kanrich had a tough time and to overcome this they implemented institutional restructuring, cost reduction and increased efficiency and productivity which resulted in a positive turn around resulting in reducing overhead costs. Senior management even voluntarily agreed to cut their salaries and allowances.
“With regard to Micro Finance Business, the product of Kanrich is entirely different from what is available in the market as it is based on a sustainable financing concept.
“However we opted out of such loans mainly due to political interventions in the microfinance industry. 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 area resulted in weak income statements and tight liquidities.
“The company was subject to severe lending and deposit restrictions by the regulatory authority.
“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 as well.
“On the contrary, it is doing well in terms of all financial indicators and after the merger will continue to engage in finance as an even stronger merged entity.
“On the subject of the Central Bank going ahead with the consolidation of finance companies and undertaking reforms in the finance sector, we have a doubt about the timing of these financial reforms.
“President Ranil Wickremesinghe recently said that he does not want to implement any reforms because they cannot be undertaken in a crisis situation.
“Unfortunately, the economic crisis is still unfolding and it has an enormous adverse impact on the business sector, including finance. Therefore, I believe that the government could consider giving the distressed companies some time to recover before subjecting any reforms.
“With the amalgamation with Nation Lanka we will become stronger and as a standalone lending institution will provide a better service to customers.”
Business
IceWarp expands into Sri Lanka, fostering European innovation in collaboration with FentonsIT
IceWarp, a global leader in business communication solutions, has officially launched its cutting-edge platform in Sri Lanka, bringing European expertise in email and collaboration solutions to support the country’s evolving business landscape.
This expansion is driven by a strategic partnership with Fentons Information Technology (FIT), the Information Technology arm of Hayleys Fentons Limited.
The grand launch event held at The Kingsbury Colombo on 4th April, 2025, was graced by several distinguished guests, including Chief Guest Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC.
The presence of Adam Paclt, Global CEO of IceWarp, and Pramod Sharda, CEO for India and the Middle East of IceWarp, along with their global team, highlighted the significance of this expansion. Industry experts, government officials, corporate leaders, and CIOs from the banking, financial services and insurance sectors were in attendance as well, reflecting strong local interest in IceWarp’s European expertise.
With this launch, Sri Lankan businesses now have access to an affordable, scalable and secure alternative to Microsoft 365 and Google Workspace. IceWarp’s advanced Collaboration Suite integrates a wide range of tools into a single, unified platform designed to streamline communication and boost productivity. Offering flexible hybrid deployment options and cost-efficient solution, IceWarp enables organisations to optimise their operations without compromising security or functionality.
Ceylon Energy and HJT China have successfully completed the Mahiyangana-Kappalthurei 33kV power distribution lines and the Uhana Gantry as part of Sri Lanka’s Supporting Electricity Supply Reliability Improvement Project (SESRIP). Funded by the Asian Development Bank ($42 million), SESRIP aims to expand energy access in underserved regions, including conflict-affected areas and provinces like Uva and North Central.
The project’s infrastructure spans over 270 km of 33kV lines, 13 switching gantries, and 2,372 km of low-voltage extensions.
The projects connect 35,000+ households and improve reliability for 493,000+ consumers; integrates renewables to reduce losses.
The projects’ notable components include: Mahiyangana-Bibila Line: 36 km with 147 steel towers and Kappalthurei-Sixth Mile Post Line: 14 km with 58 towers.
Ceylon Energy Chairman Madushanka Fernando hailed it as a ‘new beginning of a brighter era’, emphasising the project’s role in uplifting rural communities and driving sustainable development.
The initiative underscores Sri Lanka’s commitment to inclusive, reliable energy and climate resilience.
Eventistry Sports, a trailblazer in innovative sporting events, has unveiled the Sri Lanka Padel League (SLPL), the nation’s first franchise-based padel tournament, set to debut in June 2025. This groundbreaking league promises to redefine Sri Lanka’s sports landscape by creating a dynamic national platform for athletes while fostering unity among fans, brands, and communities.
The SLPL will showcase six franchise teams, each embodying the spirit of iconic Sri Lankan locales: the Colombo Chargers, Yala Rangers, Hikkaduwa Riders, Ella Hawks, Arugambay Vipers, and Trinco Warriors. These teams will not only ignite regional pride but also unite the country through a shared passion for padel—a fast-paced racquet sport merging tennis and squash, played on enclosed courts.
“The SLPL is more than a league; it’s a movement,” declared Karin Wijeratne, Director of Eventistry Sports. “By blending franchise sports with Sri Lanka’s vibrant culture, we’re creating a platform where players gain national recognition, fans rally behind their hometown heroes, and brands engage with communities in meaningful ways.”
The league’s launch on June 21–23, 2025, at Colombo’s Padel House courts (CR&FC) will kick off with three days of high-octane matches, preceded by a star-studded player auction on May 16th at The Vault, Colombo City Centre. Local talent—both professional and intermediate—will be drafted by franchise owners, with international registrations now open to elevate the competition’s global appeal.
Please log in to: www.slpadelleague.com and social media: @SriLankaPadelLeague (Facebook & Instagram) for more information.
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