Business
NDB posts solid performance in H1 2021 amidst the pandemic
National Development Bank PLC, Sri Lanka’s fourth largest listed bank continued to demonstrate its resilience to external shocks and ability to deliver consistent results, as reflected in financial statements released to the Colombo Stock Exchange for the six months ended 30 June 2021, the bank said in a news release last week.
The review period was marked by month long travel restrictions imposed to curb the spread of the third wave of the pandemic in Sri Lanka which affected business momentum. NDB’s Director and Group CEO Dimantha Seneviratne commented that notwithstanding these deepening challenges, the Bank stayed in top form in delivering uncompromised value to all our stakeholders, thanks to its agile strategies and committed team.
He said the banking sector has always played a crucial role in national economic development, and its importance is more pronounced in a situation like this. With the nation-wide vaccination program successfully rolling out there is expectancy of expedited return to economic normalcy. In such a backdrop, NDB has affirmed its focus in safeguarding the interest of three critical stakeholders, i.e. the customers, the employees and the society at large. This focus has enabled NDB to maintain a sound equilibrium in our performance, for the benefits of all our stakeholders together with a sense of achievement for the team.
Income and profitability
NDB recorded a total operating income of LKR 15.4 Bn which grew by 19% over six months ended June 2020 (YoY). Operating income was strengthened by net interest income (NII), net fee & commission income and consolidated other non-fund based income, all of which recorded a growth over the comparative period, the release explained.
NII, the majority contributor in operating income (67%), grew by 17% to LKR 10 Bn. Reflecting the reduced interest rate environment, both interest income and interest expenses declined YoY with the latter posting a larger decline at 18%. Deposit portfolio’s improving skewness towards CASA base, with over 50% of the fresh deposits growth for H1 2021 over H1 2020 coming from CASA deposits and a significantly improved CASA ratio of 26% (H1 2020: 21%) contributed to reduce interest expenses. CASA base also improved by 54% YoY (LKR 48 Bn). Resultant annualized net interest margin (NIM) for the period was 3.23% (H1 2020 – 3.25%). NIM continues to be under pressure with possible further relief to be granted to customers in loan repayments, due to the cascading effects of the pandemic.
Net fee and commission income grew by an impressive 48% to LKR 2.6 Bn supported by growth in the loan book (YoY 14%), trade business and digital banking transactions conducted through NDB NEOS platforms. All other non-fund based income, including net gains from trading and de-recognition of financial assets collectively grew by 6% to LKR 2.4 Bn., the release said.
Impairment charges for loans and other losses for H1 2021 was LKR 4.2 Bn, an increase of 31% YoY. Provision charges increased in line with the growth in the loan book and provisions made at both collective and individual levels in response to elevated risks caused by the third wave of the pandemic and other stresses. The regulatory gross non-performing loan [NPL] ratio for H1 2021 was 5.63% (2020: 5.35%) reflecting the wider industry NPL behavior. The net NPL ratio for the quarter was 3.37% (2020: 3.23%).
Costs continued to be well managed, benefiting from the Bank’s organization-wide Operational Efficiency and Effectiveness improvement programme (OEE) and strong digital drive. Total operating expenses for H1 2021 was LKR 5.1 Bn, with the YoY increase managed at 10%, amidst business volume growth and a host of other customer-centric initiatives. Gradual increase in deployment of Robotic Process Automations and workflow solutions in internal processes are delivering their investment dividends, with the increase in controllable costs managed at reasonable levels. NDB NEOS digitized platforms undergo continuous upgrades, propelling the uptake of these digital channels over physical banking for our customers. The resultant cost to income ratio for the period was 33%, remaining at the low 30% range.
Operating profit before all taxes for the period was LKR 6.1 Bn, up by 21% YoY. Total taxes for the period was LKR 2.2 Bn, comprising VAT on financial services – which recorded an increase of 16% due to increase in business volumes, and income tax – which reduced by 4% amidst an increase in profits due to the income tax rate reducing to 24% (effective from the prior year) from 28% in the prior year. The effective tax rate for H1 2021 was 36%.
Accordingly, post-tax profitability enhanced to LKR 3.9 Bn, up by 32% whilst profit attributable to shareholders increased to LKR 4.1 Bn, up by a notable 73%. NDB Group’s capital market cluster continued to make valid contribution to the overall Group profitability, benefited by greater opportunities available in the Sri Lankan capital markets.
Balance Sheet Performance
Total assets for H1 2021 was LKR 664 Bn, up by 6% over 2020. On YoY terms this was a growth of 18%. Loan book growth was broad-based, to LKR 487 Bn, a YTD growth of 10% and YoY growth of 14% (quantum of growth – LKR 43.5 Bn and LKR 58.2 Bn respectively), with lending increasing to all segments.
On aspects of funding, the Bank’s deposits base crossed the LKR 500 Bn mark for the first time with deposits closing in at LKR 515 Bn. This was a YTD growth of 5% and YoY growth of 21%, which translated to quantum of LKR 25.0 Bn and LKR 87.7 Bn respectively. CASA deposits grew by 11% YTD (LKR 13 Bn) to LKR 136 Bn.
The period under review booked a total capital infusion of LKR 9.46 Bn, comprising of LKR 8 Bn raised through the Rights Issue and LKR 1.46 Bn, raised through the Private Placement with Norfund – the Norwegian Investment Fund for developing countries, strengthening Tier I equity capital of the Bank. NDB also secured USD 75 Mn from the Development Finance Corporation of the USA as a long term funding line towards lending to SMEs and infrastructure development of the country.
Key performance ratios
Return on equity of the Bank for H1 2021 increased to 13.81% (2020: 13.13%) whilst the same at the Group level was 13.91% (2020: 11.20%). Pre-tax ROA of the Bank was 1.68% (2020: 1.59%) and of the Group was 1.79% (2020: 1.58%). Earnings per share of the Bank was LKR 28.89 (2020: LKR 23.77), whilst the same for the Group was LKR 30.96 (2020: LKR 21.99).
The net asset value per share of the Bank and the Group were LKR 161.48 and LKR 170.94. On capital adequacy, Tier I capital adequacy ratio and Total capital adequacy ratio of the Bank were 10.43% and 14.73% respectively. The same ratios for the Group were 10.83% and 15.03%. Liquidity coverage ratio – Rupee, Liquidity coverage ratio – All currency and Net Stable Funding Ratio were 204.01%, 184.31% and 116.81% respectively. All these ratios were well above the regulator stipulated minimum requirement levels, with capital adequacy ratios having enhanced post Tier I capital infusion as explained above – reflecting the strength, stability and sufficient liquidity of the Bank.
Support extended to COVID-19 affected customers and other aspects of performance
The Bank’s support to its pandemic hit customers to emerge strong continues, with various moratoria and concessions, together with strong advisory support from our relationship managers, including the “NDB Jayagamu Sri Lanka” proposition. NDB continued its digital drive unabated by the pandemic. Enabling CRIB report and CRIB score downloads in the NEOS mobile app and commencing the development of video -Know-Your-Customer (vKYC) which will take virtual banking to a new level using AI, are two of the “first in the industry” launches by NDB. “NDB Cares”, NDB’s structured response in support of employees and the society at large under the theme “Together with Humanity…Stronger with Positivity” continued its mission, which included donations to the healthcare sector and communities in need, amongst other initiatives.
Way forward
With the completion of Tier I capital infusion netting LKR 9.5 Bn, and further funds secured through credit lines, NDB is poised for accelerated growth as market opportunities warrant. This growth will be in alignment with the Bank’s own strategic aspirations as well as the country’s broader needs to propel economic prosperity, which include the SME sector, thereby fortifying NDB’s role as a key contributor in the nation’s development journey.
Business
Remotely conducted Business Forum in Paris attracts reputed French companies
The “Sri Lanka Business Forum 2026” was organized by MEDEF International, the French Business Confederation of leading French companies, in partnership with the Embassy of Sri Lanka in France, on 30 January 2026 at the MEDEF Office in Paris. The event, which was held in hybrid format, had a solid line up of reputed French companies participating.
Delivering the keynote address, the Deputy Minister of Industry and Entrepreneurship Development of Sri Lanka Chathuranga Abeysinghe presented the Government’s policy framework and the reform agenda aimed at strengthening investor confidence, improving ease of doing business, and accelerating export-led growth. The Deputy Minister elaborated on upcoming legislative reforms, including amendments to the Minerals Act, the Colombo Port City legislative framework, implementation of the Investment Single Window, and the Government’s broader digitization drive which would contribute towards enhancing transparency and business confidence.
Highlighting Sri Lanka’s comparative advantage in the South and Southeast Asian region, the Deputy Minister emphasized France’s role as a strategic investment partner, while inviting French companies to engage with Sri Lanka. The Deputy Minister’s address was followed by a vibrant Q&A where he responded to several questions posed.
The Forum was moderated by Chairman of the France–Sri Lanka Business Council at MEDEF International and Advisor to the Chairman of the Michelin Group, Eric Le Corre.
Delivering welcome remarks, the Ambassador of Sri Lanka to France and Permanent Delegate to UNESCO Manisha Gunasekera applauded the convening of the Forum a first step in broadening and deepening the investment partnership. She appreciated the role of MEDEF in connecting reputed French companies with potential investors and partners in Sri Lanka.
The Executive Director of the Board of Investment (BOI) of Sri Lanka Priyanka Samaraweera, in her presentation detailed, inter alia, investor facilitation measures, fiscal incentives including tax holidays, tariff benefits under preferential trade agreements, and upcoming industrial zones. The BOI also invited potential French investors to participate in the upcoming Investors’ Forum scheduled to be held in Colombo on 30 March 2026.
The presentation of the CEO of Orange Marine, Didier Dillard on the company’s successful collaboration with Colombo Dockyard PLC in building their cable vessel “Sophie Germain” in 2023; and two additional vessels scheduled for delivery in 2028 and 2029, helped position Sri Lanka as an attractive and competitive investment destination.
The Embassy highlighted “Sri Lanka Expo 2026” which will be held in Colombo from 18-21 June 2026, as a key global platform for buyers and investors; and encouraged French companies to participate.
Reputed French companies, SNCF, Bureau Veritas, Carrefour, Deviseo Fret, Emovis SAS, Union de Banques Arabes et Françaises (UBAF), Michelin, and Top Tech College, participated in the Forum, thus demonstrating the interest among French cooperates in doing business with Sri Lanka. The participating companies reaffirmed that the engagement marked a first step in expanding dialogue and collaboration between France and Sri Lanka.
Senior officials of the Ministry of Industry and Entrepreneurship Development, and the Export Development Board of Sri Lanka (EDB) also participated in the forum. The Forum was organised by the Commercial Section of the Embassy led by First Secretary (Commerce) Prasadi Boomawalage, in consultation with relevant stakeholders. The success of the Forum reflects the strong commitment of the parties concerned to organise a broader, outcome-oriented engagement with the French private sector in the future.
Business
LANKATILES Celebrates the Grand Opening of Its 58th Showroom in Historic Galle
Sri Lanka’s leading tile manufacturer, LANKATILES, proudly announces the grand opening of its 58th showroom and second in the Galle located at No. 145, Matara Road, Pettigala Watta, Galle. This latest addition marks a significant milestone in LANKATILES’ continued journey of design excellence, innovation, and trusted service built over more than five decades.
Inspired by the heritage charm and timeless architecture of Galle, a UNESCO-valued destination renowned for its cultural tapestry and historic streets, the new showroom blends local architectural heritage with contemporary living needs, truly Creating Spaces That You’d Love to Live In.
“Galle’s unique character shaped by centuries of history, art and human ingenuity resonates deeply with LANKATILES’ ethos of design integrity and aesthetic depth,” said Priyantha Talwatte, Managing Director of LANKATILES. “We’re delighted to bring our design leadership and trusted product portfolio closer to the Southern market, supporting both residential aspirations and the burgeoning tourism-led growth across the region.”
Built on more than five decades of trust and excellence, LANKATILES continues to set the benchmark in tile design superiority while delivering solutions that uplift spaces with beauty and performance. The new showroom features standout products including the Majestica large-format tile collections and Mosaics, ideal for modern living spaces, luxury tourism projects, boutique hotels, and heritage restorations that demand both quality and visual impact.
As Sri Lanka’s tourism sector continues to grow, strategic destinations such as Galle play a vital role in LANKATILES’ long-term expansion strategy. The company aims to strengthen its presence in the Southern market through enhanced accessibility, tailored solutions, and meaningful collaboration with industry stakeholders.
“We recognize the indispensable role of architects, designers, contractors, and tilers in shaping inspiring spaces,” added Talwatte. “We look forward to deepening partnerships across the region celebrating creativity that transforms environments and enriches everyday living.”
The new showroom is operated by Franchise Owner Yasith Ranu Karunasekara, a Southern Province-based entrepreneur with a keen appreciation for design-driven business and customer-centric service. His local expertise and commitment to quality align strongly with the LANKATILES brand promise.
“This showroom is more than a retail space, it’s a destination where imagination meets craftsmanship,” said Karunasekara. “We’re excited to support local homeowners, hospitality developers, and professionals in redefining spaces across the Southern region.”
The LANKATILES Galle showroom officially opened on January 28, 2026, welcoming customers and industry professionals to experience the brand’s curated collections, design expertise, and innovative tile solutions.
Business
Four runs, a thousand dreams: How a small-town school bowled its way into the record books
By the time the last wicket fell at Gangakanda Vidyalaya in Pelmadulla, silence briefly hung over the ground. The scoreboard told an almost unbelievable story: the Under-13 team of Kalawana National School had dismissed their opponents, Mihindu Vidyalaya, Ratnapura, for just four runs. In six overs and five balls, a group of boys from a remote corner of Sabaragamuwa had etched their names into Sri Lanka’s schools cricket record books.
The achievement soon found its way onto the official Sri Lanka Cricket Facebook page. But behind that viral moment lies a quieter, more powerful story of children who train without a proper ground, a coach who works without pay, and parents who refuse to let poverty dictate their children’s dreams.
For the boys of Kalawana National School, cricket is not played on manicured turf. There is no proper pitch. Practice nets are borrowed and returned. The few bats and pads available are worn and broken. During the rainy season, there is often nowhere to practise at all.
Yet, every evening, they turn up.
“Our children play under conditions where even the most basic facilities are lacking,” said N. V. Pushpakumara, a parent. “There is no proper playground, no pitch. Still, they keep winning. We hope the authorities will see what these children are capable of and give them the support they deserve.”
- Cricket players of Kalawana National School undergoing training amid challenges
At the centre of this effort is their coach, Chanuka Pradeep Madhushan, who joined the school in late 2021. He trains the children voluntarily, without a salary, accepting only small contributions from parents who themselves struggle to make ends meet.
“I didn’t come here expecting facilities,” he said. “I came because I saw potential. One of our boys played for the district squad in 2025. This year, our Under-13 team is doing very well. We even have a left-arm bowler who has taken 21 wickets in four matches. When you see their commitment, you want to give your best, even without pay.”
The school’s principal, Ashoka Nandasiri, speaks of cricket at Kalawana National School as a journey marked by quiet persistence. The school began leather-ball cricket in 2011. In 2016, their Under-16 team broke into the top 16 at national level. In 2025, a student was selected to the Sabaragamuwa Under-15 provincial team. And in January this year came the moment that stunned school cricket circles across the country.
- N.V. Pushpakumara, Parent
- Chanuka Pradeep Madhushanka, Cricket Coach
- Ashoka Nandasiri, Principal of Kalawana National School
“These achievements did not come easily,” the principal said. “They came through the dedication of our coach and the sacrifices made by parents. Despite many difficulties, they have kept this programme alive.”
For the boys themselves, the record is not just about four runs. It is about being seen.
“We practise with many difficulties,” said team captain P. A. Pamod Lakshan. “We don’t have proper equipment or a proper ground. When it rains, we have nowhere to go. Once, a kind uncle from Kalawana helped build us a small indoor place to practise. We are very grateful. We want to go a long way in cricket.”
In a country where cricketing dreams often begin in elite school grounds with lush pitches and modern facilities, the story of Kalawana National School stands as a reminder of how talent can grow in the most unlikely soil. These children do not ask for luxury—only for a fair chance.
Their record-breaking performance is now part of Sri Lanka’s cricketing statistics. But the deeper question remains: will their struggle also be noticed? Parents hope that this extraordinary moment will prompt sports authorities and policymakers to look beyond the usual centres of privilege and invest in rural schools where potential waits quietly, often unseen.
For the boys from Kalawana, the scoreboard has already given its verdict. Now they wait for the country to do the same.
By Upendra Priyankara Jathungama
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