News
LCB Finance goes for IPO
By Hiran H.Senewiratne
Lanka Credit & Business Finance Limited (LCB Finance) will go for a public offering of its shares in the Colombo Stock Exchange through an Initial Public Offering (IPO). The company will go for listing probably on October 25 to raise Rs 500 million, its sources said.
“LCB Finance, which initially began as a grassroot level financial institution, witnessed exponential growth and expansion across the country over the years, its chairman Prof. Abeyratne Bandara said.
Under this IPO the company will issue 1.25 million shares with a share value of Rs 4 to raise Rs 500 million. With the funds it will be improving the balance sheet and also for future expansion plans, he told the Island Financial Review.
Bandara added: “The company has already initiated and partly completed the listing process through NDB Investment Bank. Furthermore, we have already appointed FJ & G de Saram as our Legal Advisors and Sampath Bank PLC as the Banker to the IPO.
“As a financial institute committed to uplift the standards of living of low income earners with a range of micro finance products, it was also recognized as the Emerging Finance Company of the Year 2019.
“LCB was awarded “Fastest Growing Non-Banking Financial Firm in Sri Lanka 2021″ at the Global Economics Awards 2021 in the UK. The customer base of the company comprises farmers, fishermen, vendors, labourers and small business owners, among others, which makes it a truly people’s development financial institution.”
“As at end of the March 31, 2021 Financial Year, LCB Finance’s Core Capital was Rs. 2.16 billion, Profit (PBT) Rs. 100 million, Operational Profit Rs. 122 million, Total Assets Rs. 3,672 million, Capital Adequacy ratio 58%, Credit Portfolio Rs. 2.56 billion, its C.E.O & Executive Director K.G. Leelananda said.
“Over the past 3 years we have made a collective effort to focus on overall betterment of communities. The signature of that trust is deeply ingrained in the business framework of the firm, he said.
“We cater to the needs of individuals across all categories of the economy; the overall logic of operations is strongly inspired by and flavoured with the idea that challenges are best met collectively and that such an approach adds value to individual effort, he added.
He said ICRA Rating [SL] is B+ Stable. The rating Committee of ICRA Lanka Ltd., after due consideration of the rapid development of the company, has revised its rating from [SL]B stable outlook to [SL]+ Stable.
News
Fuel price hikes trigger transport disruptions and calls for fare increases
The latest fuel price increases have sparked widespread concern among transport operators and raised questions about the government’s supportive measures. Cabinet Spokesman and Minister Dr Nalinda Jayathissa told a media briefing yesterday that the government was incurring a monthly loss of Rs. 20 billion by maintaining subsidies on fuel. According to the Minister, the state loses Rs. 100 per litre of diesel and Rs. 20 per litre of petrol under the current pricing system, a burden that the Treasury continues to absorb as part of a “supportive mechanism.”
The Ceylon Petroleum Corporation (CPC) revised fuel prices from midnight on March 21, raising the price of a litre of Lanka Auto Diesel by Rs. 79 to Rs. 382, Super Diesel by Rs. 90 to Rs. 443, Octane 95 petrol by Rs. 90 to Rs. 455, and Octane 92 petrol by Rs. 81 to Rs. 398. Lanka Kerosene was increased by Rs. 60,bringing the price to Rs. 255 per litre. Other suppliers, including Sinopec and Lanka IOC, also implemented similar hikes, with Sinopec’s Super Diesel rising sharply by Rs. 219 to Rs. 572 per litre.
The surge in fuel prices has had an immediate impact on public transport. The Chairman of the Lanka Private Bus Owners’ Association, Gamunu Wijerathne, told The Island that 90% of private buses were off the road yesterday (22). He called for a 15% increase in bus fares, raising the minimum fare from Rs. 27 to Rs. 35, warning that services could be suspended if fare adjustments are not approved.
Three-wheeler operators have also pressed for immediate fare revisions. L. Rohana Perera, General Secretary of the National Joint Three-Wheeler and Industrialists’ Association, said the rising fuel costs have made it difficult for drivers to continue operating. The Association has proposed a Rs. 20 increase for the first kilometre fare for all meter-operated three-wheelers and plans to present its concerns to the Presidential Secretariat.
Fuel price monitoring has also intensified amid concerns over potential smuggling. A senior police officer told The Island that intelligence units have been deployed near fuel stations to prevent hoarding. The police suspect that certain fuel station employees and owners could be facilitating stockpiling.
Political leaders have warned that the hikes will ripple across the economy. SJB MP S.M. Marikkar said transport cost increases will drive up the prices of essential goods such as rice and fish, leaving consumers struggling under rising costs.
Import and export container transportation charges will be increased by 20% from midnight yesterday (22) due to the recent fuel price hike, according to the Container Transport Vehicle Owners’ Association.
The latest increases follow two rounds of price hikes since March 9, driven by surging global oil prices amid the Middle East conflict. Since then, Lanka Petrol 92 Octane has risen by Rs. 105 to Rs. 398, Petrol 95 Octane by Rs. 115 to Rs. 455, Auto Diesel by Rs. 101 to Rs. 382, and Super Diesel by Rs. 114 to Rs. 443 representing an overall increase of around 35% across key fuel categories.
by Norman Palihawadane and Pradeep Prasanna Samarakoon
News
Prof. Peiris honoured by International Institute of Rehabilitation
At the award presentation ceremony of the International Rehabilitation Institute last week, Professor G.L. Peiris, as Chief Guest, in his keynote address, dealt with the special relevance of rehabilitation at this time. The traditional criminal law makes provision for punishment after a crime has been committed, and punishment usually takes the form of a prison sentence. It is even more important, however, to explore practical means of prevention and also to have recourse to a custodial sentence as a last resort rather than as the typical response.
The modern approach is that punishment is seen not as retributive but as a means of rehabilitating the offender in society. Prison sentences, bringing a first offender into the prison environment and association with habitual offenders, carries the risk of recidivism, the available statistics indicating the likelihood of return to prison on repeated occasions.
He placed emphasis on the importance of informed social attitudes to ensure that an offender does not carry a permanent stigma, reducing his opportunities for employment and acceptance in society. The importance of religious instruction in early childhood, and the close connection between temple and village, was stressed.
Professor Peiris was honoured with an award of appreciation by academic colleagues.
News
CMC resumes parking fees
The Colombo Municipal Council (CMC) has resumed parking fees in the city with effect from today (23).
Parking management and fee collection will recommence from 6 am, following a decision by the Finance Standing Committee of the Council.
Charges were temporarily suspended from March 18 due to heavy traffic and long queues near fuel stations. Authorities said the situation had improved with the introduction of the QR code system and odd-even rationing.
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