Business
‘Nations Trust Bank continues to demonstrate resilient performance amid volatile conditions’
Nations Trust Bank ended the third quarter with a strong performance, continuing the trend demonstrated in the first half of the year. The loan book recorded an 18% growth during the nine months ended 30th September 2021 against the private sector credit growth of 10.6% during the same period of the year, amidst the challenging business environment.
The Bank extended its fullest support in the implementation of the Government’s initiatives to minimise the impact of COVID-19 on businesses and the community and to stabilise the economy by partaking in the ‘Saubhagya’ loan scheme.
Over LKR 20 billion new credit facilities were disbursed by the Bank under its own revival fund “Nations Diriya” scheme which is dedicated to extending financial support to key industries, enabling such businesses to recommence and rebuild their business operations. The Bank also offered special payment relief schemes and repayment plans for existing borrowers, in addition to the Central Bank mandated moratorium schemes with low-interest rates and restructured repayment plans for some of the identified industries.
Nations Trust Bank raised USD 65 million from overseas Development Finance Institutions during the year to support the Small and Medium Enterprise (SME) sector. The Bank also raised LKR 4 billion, Fitch ‘A’ rated, Senior, Unsecured, Unlisted, Redeemable Debenture in July 2021 further strengthening the medium-term funding profile of the Bank.
Financial results for the period
The Group recorded a Profit Before Tax of Rs.7.46Bn, a growth of 27% for the nine months ended 30th September 2021 compared to the previous year, despite the challenging operating environment experienced during the period.
Supporting the loan growth and economic recovery efforts, average yields on loans reduced by 350bps. A net reduction in yields in the FIS portfolio also contributed to the decline in net interest income. The absence of a one-off interest reversal on moratorium loans similar to what was recognised in the previous year helped negate the decline in interest income. The improvement in CASA ratio to 37% as at end September 2021 from 31% as at the end of September 2020 helped partially offset the decline in interest margins during the period.
Momentum could be seen in Trade Finance related income with the increase in certain Trade Finance related activities. Growth in cards income was contained on account of a decrease in card spend due to changes in customer behavior patterns owing to the restrictions in mobility and overseas travel. Suspension or refund of certain charges by the Bank, considering the current difficulties faced by customers due to the COVID-19 pandemic, negatively impacted the Bank’s fee-based income.
The Bank was able to realise sizable trading profits on its fixed income securities portfolio with the fall in market rates. Gains on foreign exchange trading also increased primarily from FX funding swaps due to a higher depreciation of the rupee during the current period in contrast to the depreciation during the same period last year.
Impairment charges on loans declined by 18% during the period owing to the new underwriting standards and concentration on loan recoveries. Positive flows in the past due buckets together with lower exposures in most risk buckets, reflects a 193bps reduction in the non-performing loan ratio. The Bank continued to assess the uncertainties in the operating environment and to maintain a management overlay in the impairment provisions on exposures to identified risk elevated industries. The Stage 3 loan ratio (net of impairment) and the provision cover for Stage 3 loans stood at 2.73% and 42.62% respectively as at 30th September 2021. The Bank increased the impairment provision on investments in foreign currency denominated bonds issued by the Government of Sri Lanka in line with market practice to reflect the current macro-economic conditions. (NTB)
The Bank was successful in containing the increase in Operating Expenses to 2% despite the Operating Expenses in 2020 being 10% below the corresponding period of 2019. This reflects the cost management culture entrenched across the organization. Continuation of some of the cost saving strategies and initiatives executed last year along with productivity, efficiency drives and focus on some large cost pools were the main reasons for this favorable outcome. Cost to income ratio improved to 42.3% compared to 45.7% in the same period last year, demonstrating the Bank’s ability to considerably enhance efficiency and productivity through digitalization and new ways of working.
The impact stemming from the income tax rate differential in income tax and deferred tax relating to the financial year ended 31st December 2020 was reversed using the applicable new tax rate of 24%. This resulted in a profit after tax of Rs.5Bn for the nine months ended 30th September 2021 with a 61% growth over last year same period.
The Return on Equity stands at 18% and the Return on Assets at 2.19% for the period under review.
The financial position of the Group remained strong as its Tier I Capital and Total Capital Adequacy ratios as at 30th September 2021 standing well above the regulatory levels at 12.9% and 15.8%, respectively without considering the profits earned in 2021. The Statutory Liquid Asset Ratio (SLAR) for the Domestic Banking Unit and the Off-Shore Banking Unit was at 32% and 34%, respectively, as at the reporting date.
Essential banking services were provided continuously despite some parts of the country being isolated with months long travel restrictions imposed as a result of a third wave of COVID-19 during the period.
In true spirit of supporting the national effort, Nations Trust Bank’s employees came together to contribute essential medical equipment for the national COVID Response, by donating a half a day’s salary to the Bio Medical Engineering Unit at the Ministry of Health. Nations Trust Bank also donated a portable ventilator to the Colombo South Teaching Hospital, Kalubowila earlier this year.
Commenting on the results and achievements, Priyantha Talwatte, CEO/Director stated, “We are committed to growing a healthy asset book and remain focused on delivering our strategic agenda set for the year and enhance digital capabilities with the ultimate intention of achieving customer convenience, cost and process efficiencies, pioneering innovation and thereby, challenging the norm to deliver an unparalleled banking experience to our customers in a new reality. With the nation-wide vaccination program successfully being rolled out, there is an expectancy of a rapid return to economic normalcy, and Nations Trust Bank is fully geared to steer ahead more responsively to the external environment by prioritizing customer requirements supported by an extremely focused and involved Nations team who has demonstrated their agility to deliver sustainable value, given the challenging environment.”
Business
Beyond arrivals: Can tourism and hospitality power Sri Lanka’s next growth phase?
The Australian High Commission in Sri Lanka recently hosted the latest edition of its ConnectED Thought Leadership Series at the Australian High Commissioner’s Residence in Colombo, bringing together senior leaders from Sri Lanka’s tourism, hospitality, travel, events, education and related sectors.
The discussion, themed “Beyond Arrivals: Can Tourism and Hospitality Power Sri Lanka’s Next Growth Phase?”, focused on the role of tourism and hospitality beyond visitor arrival numbers, examining how the sector could contribute to Sri Lanka’s broader economic development.
The distinguished panel comprised Shiromal Cooray, Chairman and Managing Director of Jetwing Travels; Angeline Ondaatje, Chairperson of Tangerine Beach Hotels PLC, Royal Palms Beach Hotels PLC and Tangerine Tours; and Grant Dreher, Chief Executive Officer of William Angliss Institute Australia.
The discussion was moderated by Wayne Crosbie, Director – International and Business Development, William Angliss Institute Australia, who facilitated the conversation around the evolving needs of the tourism and hospitality industry and the importance of connecting education, skills development and workforce readiness with industry demand.
Adding a practical and experiential dimension to the evening, students from the Colombo Academy of Hospitality Management (CAHM) played an active role in delivering the cocktail reception for the distinguished guests.
Business
SL’s ‘Global Destination Marketing and Communication Campaign’ gets into top gear
A high-level discussion on the implementation of Sri Lanka’s Global Destination Marketing and Communication Campaign, supported by the World Bank, was held at the Ministry of Foreign Affairs, Foreign Employment and Tourism. The initiative marks a significant step towards strengthening Sri Lanka’s position as a competitive and attractive destination in the global tourism marketplace.
The meeting focused on the importance of adopting a long-term, data-driven approach to destination marketing, underpinned by comprehensive analysis of tourism demand and supply trends, visitor behaviour, destination branding, and international marketing strategies. Discussions also highlighted the need for a transparent procurement process and institutional capacity-building to ensure the successful implementation and sustainability of the campaign.
Participants welcomed the technical expertise and strategic guidance to be provided by MTI Consulting and Skift Inc./JD, whose support will contribute to the development and execution of a globally competitive destination marketing programme. Through strong collaboration between public and private sector stakeholders, the initiative seeks to establish a sustainable roadmap to guide Sri Lanka’s tourism promotion efforts and enhance the industry’s competitiveness in key international markets.
The campaign is expected to play a vital role in strengthening Sri Lanka’s tourism sector, supporting increased visitor arrivals, generating economic opportunities, and contributing to broader national economic growth.
The discussion was attended by Aruni Ranaraja, Secretary to the Ministry of Foreign Affairs, Foreign Employment and Tourism; Chairpersons and Chairmen of tourism institutions under the Ministry; representatives of SLAITO, TAASL, the Tourism Advisory Committee, the World Bank, MTI Consulting, and Skift Inc./JD; as well as H.P. Somathilaka, Director General of National Planning.
Business
Labour shortages are pushing Plantation Companies towards machines, data and a different kind of worker
Sri Lanka’s plantation sector is entering a new phase of transformation, as technology and innovation reshape how estates operate, manage resources and sustain productivity. Across the country’s tea estates and other plantations, machines are increasingly complementing skilled workers in tasks once done almost entirely by hand, while software and data bring new precision to decisions traditionally guided by experience.
Automated harvesters, pruning machines and drones are being deployed alongside GIS mapping, digital weighing systems and enterprise software. Though the technologies vary, they point to a common shift: plantations are finding smarter ways to meet rising demands with a changing workforce.
Mechanisation, however, is not without challenges. Sloping terrain, fragmented fields and crop variability limit where machinery can be effectively deployed. Still, as operating costs rise and labour availability tightens, the ability to combine human expertise with technology is becoming essential to sustaining productivity, competitiveness and the long-term viability of the industry.
Addressing the labour shortage
Sri Lanka’s plantation companies face a labour market that has changed from the one on which the industry was built. Migration, demographic changes and attraction from other sectors have made it increasingly difficult to retain workers for plantation work.
That is why mechanization is spreading beyond the most obvious applications. At Bogawantalawa Tea Estates PLC, machinery is being used for land preparation, pruning, weeding, harvesting, and agrochemical application. Selective machine harvesting and mechanical pruning have been introduced in tea, while mechanized and semi-mechanized methods are being extended to other crops.
Agarapatana Plantations PLC has taken a similar approach. Fuel-powered and battery-operated harvesters are being used in the field, while backhoes assist with uprooting and levelling new clearings. Drones are being deployed for foliar spraying. In factories, automation and energy efficient machineries are being introduced where production volumes justify the investment.
The changing face of plantation technology
Beyond mechanisation, plantations are steadily evolving into data-driven businesses, with RPC’s increasingly adopting technologies that are reshaping day-to-day operations. Agarapatana Plantations is rolling out automated green-leaf weighing systems with facial recognition and planning fertigation-based irrigation. Ten factories already operate on solar power, with six of them being carbon neutral.
Likewise, Elpitiya Plantations PLC has introduced Ballotronix tea-leaf readers to assess leaf composition, supported by iHarvest and Microsoft Dynamics 365 Business Central, giving managers real-time visibility across thousands of hectares.
Talawakelle Tea Estates PLC has similarly pursued transformation since 1992, introducing hot-water boilers across all factories from 2008, electronic weighing with real time data collection since 2015, as well as tablets, computers and a new payroll system for employees. Rooftop solar along with three in-house hydro power plants located in Palmerston, Radella and Somerset estates provide renewable energy. State of the art, modern colour separators have been provided to its Low Grown factories. Since 2025, drones are been used for chemical/ foliar spraying. These developments highlight how the plantation sector has steadily embraced technology for greater efficiency and sustainability.
The technological shift does not stop at the edge of the field as factories are becoming increasingly automated, giving special emphasis to energy efficient equipment. At Elpitiya, more than 80% of their factories are mechanized with state of the art machineries, with the intention to raise both capacity and efficiency.
On the other hand, Malwatte Valley Plantations PLC illustrates another possibility. After expanding its cinnamon cultivation, the company encountered a shortage of skilled peelers. Its engineers responded by developing and patenting cinnamon-peeling machinery.
That is more than a labour-saving exercise. It shows how a constraint can encourage technological innovation- and potentially allow an industry to expand beyond the limits imposed by the supply of specialised labour.
The company is also investing in automated factory systems and machinery for “matcha” production. Technology, in this case, is being used not merely to reduce costs but to strengthen value addition to products.
Machines will not make workers obsolete
Workers are being trained to use harvesters, pruning equipment and spraying machinery, while new roles are emerging around upkeep, data collection and digital reporting.
Horana Plantations PLC, for instance, has introduced machine plucking to address labour shortages. The company reports improvement in yields, consistency and labour productivity, while technology-driven harvesting has also been used to make plantation work more attractive to younger workers.
“Technology has become a prerequisite requirement for the plantation sector as we deal with labour shortages and the need to improve productivity,” Secretary General of the Planters’ Association of Ceylon, Lalith Obeyesekere stated. He noted that priority should be given to technologies suited to Sri Lankan conditions, supported by training and enabling workers to use them effectively. “That is a more useful way of thinking about mechanisation than simply counting the jobs a machine might replace”, Obeyesekere went on to note. He is confident that these changes will raise the productivity and profitability in the sector.
The next harvest
The direction of travel is becoming clearer. Precision agriculture, digital crop forecasting, automated weather monitoring, smart irrigation, digital traceability and further mechanisation are likely to become more common.
That does not mean the end of the plantation worker, nor the disappearance of generations of agricultural knowledge. It means that both will increasingly operate alongside technology.
For an industry whose competitiveness has long depended on its ability to extract value from land and labour, the new imperative is simpler: create more avenues, waste less and make each worker- and each hectare- more productive.
-
News6 days agoSri Lanka escalates anti-graft drive with Shiranthi’s jailing
-
Latest News5 days agoFarhan and Sadaqat help Pakistan seal series in style
-
News6 days agoIranian ships stranded, Lanka fears US sanctions
-
Latest News4 days agoNissanka’s return headlines Sri Lanka’s Test squad against Pakistan
-
Features5 days agoIntake 16: 45 years of duty and honour
-
News5 days agoMalwathu Chapter issues statement on talks with President over Gnanasara Thera’s robes
-
News6 days agoNavi Pillay’s Lankan affairs in focus as she wins 2026 Nobel Peace Prize
-
News5 days agoCP alleges NPP has taken the blame for illegal US sanctions on Iranian vessels
