Business

‘NSB continued to prove its resiliency within economic shudder’

Published

2 years ago

2024/04/11

Thilina Walpola

Rs. 1.7 Tn Asset base

Rs. 1 Tn investment base

Rs. 1.5 Tn Deposit base

Impaired Loans (Stage 3) Ratio 2.41% (net of stage 3 impairment)

Gross Income raised by 33% YoY

The year 2023 was another challenging year for almost all the sectors of the economy specially the banking sector. Grappling with aftermath of pandemic followed by largest economic crisis in post-independence history, and socio-political uncertainties and monetary tightening, National Savings Bank including all the other banks faced their toughest financial year.

Being a licensed specialized bank with limited financial market opportunities, NSB demonstrated its mettle by recording a Profit after Tax (PAT) of Rs. 7.2 billion for the fiscal year ended December 31, 2023, a testament to its adept management and highly skilled workforce.

The Banks’ achievement of Rs. 7.2Bn PAT was mainly surged by 31% increment of Interest Income. The Bank strategically allocated more than 60% of its customer deposits investing in Government Debt Securities capitalizing on the higher interest rates prevalent in 2022. This prudent investment strategy yielded a substantial interest income of Rs. 137.7Bn which was an upswing of 36%. Interest received through Loans and Advances also grew by 36.3%, an increment of Rs. 23.4 Bn.

Net Gain from trading rose up to Rs. 3.7Bn at the group level which was a 206% increase from last year where we recorded a loss from trading. However, NSB was able to turn around the situation with professional due care and commitment, underscoring NSB’s adeptness in capitalizing on market opportunities.

The Bank however, encountered challenges in net fee and commission income, witnessing a 34% decline due to subdued demand for loans and advances amid higher interest rates then prevailed. Fee and Commission Income was mostly contributed from Retail Loans and Corporate Banking. Both lines of business were clogged due to unwholesome micro financial conditions.

Exceeding the growth rate of Interest Income, the Interest Expense of the Bank also increased by 41% year-over-year (YoY). This rise in the cost of funds, particularly from Fixed Deposits which represent the largest portion (81%) of NSB’s deposit base, contributed to a congestion in the positive growth of Net Interest Income due to the lag effect of liability repricing.

Impairment charges of the Bank decreased by 12% on 2023 compared to the same period last year. The Bank closely monitors and considers the impact of economy to business operations and performance.

In terms of Asset Quality, with all the obstacles, NSB has one of the lowest Impaired Loans (Stage 3) Ratio 2.41% (net of stage 3 impairment) compared to the industry rate of 7% at the end of year fiscal year 2023. Further, the Bank maintains above industry impairment coverage ratio of 53.3%.

Personnel and other expenses were increased by 17% and 16% respectively being in consistent with inflationary situations globally. The Bank recorded a PBT of Rs. 4.3 Bn which was a 5% decrease from the last year. Recording deductible temporary difference of Differed Tax there was a credit of Rs. 2.5 Bn to Income Tax Reversal and created differed tax asset. Accordingly, the Bank was able to spot Rs. 7.2 Bn PAT.

Despite the challenges posted by micro financial conditions and moving to low-interest-rate set-up, the Bank was able to grow its deposit base by Rs. 5.8Bn. On the back of 100% ownership of Government of Sri Lanka (GoSL) and the 100% explicit guarantee provided by the GoSL for the money deposited with the Bank and the interest thereof through the National Savings Bank Act, NSB continued to assure the customer confidence on their deposits.

The Bank’s investment portfolio grew by Rs 62.4Bn amidst the low demand for loans and receivables and the Bank’s strategic move to flow its interest earning assets to a most profitable alternative available. As perfectly described earlier these investments in Government Securities could earn Rs. 137.7Bn Interest Income. Surpassing the industry average of Investment to Total Asset Ratio of 35.8%, NSB recorded 62.4% in 2023.

Total Asset base remarked to Rs. 1.7Tn on 2023 showing a markup of 4% compared to last year. The Bank generated 9.36% of ROE and 0.26% of ROA (Before Tax) in 2023.

The Bank maintained highly liquid asset portfolio when compared with the banking industry. Surpassing the minimum requirement of 20%, NSB has 55% of Statutory Liquid Asset Ratio where the industry average is 44.9% at the end of the year 2023. Liquidity Coverage Ratio (All currency) of NSB is 293.7% which is far more than the minimum requirement of 100% at the end of the year 2023.

The Bank is cushioned adequately to cover potential losses to protect the interests of the Bank’s depositors and other lenders. Accordingly, NSB marked well above regulatory minimum in terms of Capital Adequacy Ratios. The Banks’ Common Equity Tire 1 Capital Ratio was 15.3% at the end of 2023 (minimum requirement -7%) where industry score was 13.4%. Tier 1 Capital Ratio of NSB was 16.9% (minimum requirement – 8.5%) where industry score was 13.8% at the end of 2023. Total Capital Adequacy Ratio of NSB at the end of 2023 was 19.3% where the industry marked it to 16.9%.

As such, NSB continued to stamp its position as “Safest Bank in Sri Lanka” in every aspect such as liquidity, balance sheet management, performance and credit and market risk management. The Lanka Rating Agency (LRA) has assigned the Bank with the issuer rating of [SL] AAA with Stable Outlook. The Bank has been awarded the 6th most valuable brand in Sri Lanka by the Brand Finance Lanka Ltd on 2023. NSB also ranked among the Top 10 Women Friendly Workplaces in Sri Lanka for third consecutive year on 2023.

(NSB)

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Business

Cross-border supply chains seen as key to new business opportunities

Published

41 mins ago

2026/09/22

Sahan Weerasooriya

Dignitaries at the launching of the new dhal processing factory.

By Ifham Nizam

Australian High Commissioner to Sri Lanka Matthew Duckworth described Omega Traders’ latest investment in a modern dhal-processing facility as a strong example of how cross-border supply chains can translate into productive investment, local value addition and new business opportunities in Sri Lanka.

The investment, which adds a 150-metric-tonne-per-eight-hour-day processing capacity to Omega Traders’ operations, marks a significant expansion of the company’s manufacturing footprint as it celebrates 45 years in Sri Lanka’s food commodity industry.

Speaking at the inauguration of the new Lentil and Orid Dhal Processing Factory in Wattala, last Friday, H.C. Duckworth said the facility represented more than an increase in production capacity, pointing to the wider economic value created when Australian agricultural production is connected with Sri Lankan processing and distribution.

‘This facility is not operating on its own. It is part of a long supply chain and a trade partnership between Sri Lanka and Australia, Duckworth said.

His comments placed the Omega Traders’ investment within a broader commercial context: Australia brings agricultural production and established export capabilities, while Sri Lanka provides processing capacity, labour, market access and opportunities for further value addition.

The investment comes as Sri Lanka continues to look towards greater domestic processing and value-added manufacturing rather than relying solely on the import and distribution of finished commodities.

Dr. (Mrs.) Siddhika G. Senaratne, Director General/CEO of the Sri Lanka Standards Institution (SLSI), who attended the inauguration as Guest of Honour, highlighted the importance of quality assurance in food processing and the role of standards in maintaining confidence across the supply chain.

The facility is equipped with new-generation cleaning, processing, sorting and quality-control machinery, including advanced colour-sorting technology, automated systems and an in-house quality-control laboratory.

The additional capacity will support Omega Traders’ three principal Mysoor Dhal brands — Rainbow Jumbo Dhal, Komas Dhal and Rozanna Dhal — which serve different segments of the Sri Lankan market.

But the investment also has a distinctly local agricultural dimension.

Through its Orid Dhal operation, Omega Traders plans to source locally grown black matpe from Sri Lankan farmers and process it at the new facility.

That creates a domestic value chain linking farmers to industrial processing and consumers, while potentially increasing demand for locally produced agricultural commodities.

Duckworth said this type of business partnership could generate benefits for both countries.

‘Australia produces some of the world’s best agricultural products and we are very efficient and very capable at trading them. But that alone is not going to bring success to Australia. Just as building a factory like this is not going to bring success to Sri Lanka, he said.

‘It’s when we bring these entities together that our products produced in Australia can be processed in excellence here in Sri Lanka that enables this to be a success, the H.C. explained.

The investment therefore combines two complementary supply streams: imported agricultural commodities, including Australian-origin products, and locally produced black matpe for the Orid Dhal operation.

For Sri Lanka, the business significance extends beyond Omega Traders itself. Increased processing capacity creates demand for logistics, packaging, distribution, services and agricultural inputs, while supporting employment within the food-processing ecosystem.

Business

Ideal Motors makes history with multiple workplace excellence accolades

Published

43 mins ago

2026/09/22

Sahan Weerasooriya

Representatives from Ideal Motors (Pvt) Ltd receive top organizational culture and workplace accolades at the Great Place to Work® 2026 awards ceremony.

HR-led transformation places people, culture and business performance at the heart of the organisation

Ideal Motors (Pvt) Ltd,has achieved a significant milestone by securing multiple prestigious workplace and organisational culture accolades in 2026, reinforcing its position as an employer of choice in Sri Lanka’s automotive sector.

Among its latest achievements, Ideal Motors has been recognised as one of the 20 Great Workplaces for Young Talent in Sri Lanka 2026, ranked No. 1 and awarded the Gold Medal in the Small and Medium category of Best Workplaces™ in Sri Lanka 2026, and ranked No. 18 among Best Workplaces™ in Asia in the Medium Scale category—the highest-ranked Sri Lankan organisation in the category. The company also received Industry Excellence for Workplace Culture – Trading Industry.

The Young Talent recognition was presented at the Great Place To Work® CXO Forum 2026 held on 10 September 2026 at Cinnamon Life, Colombo. The recognition followed an evaluation of more than 100 certified organisations and highlights workplaces that create meaningful opportunities for employees under 35 to develop, contribute and grow.

At the Best Workplaces™ in Sri Lanka Awards Gala 2026, held on 11 September 2026 at Cinnamon Life, Colombo, Ideal Motors achieved another historic milestone by entering the Best Workplaces Sri Lanka list for the first time and securing the No. 1 Gold Medal in the Small and Medium category. The company also achieved No. 18 in Best Workplaces™ in Asia, reflecting the strength of its workplace culture beyond Sri Lanka.

These achievements represent more than a collection of awards. They reflect the transformation taking place within Ideal Motors, where people, culture and business performance are increasingly viewed as interconnected drivers of sustainable growth.

Over the past few years, the organisation’s HR function has evolved from a predominantly administrative role into a strategic business partner, with greater emphasis on employee experience, capability development, engagement, performance, communication, wellbeing, diversity and inclusion, and data-driven HR practices.

Business

AAC takes seat belt safety message to Colombo motorists

Published

44 mins ago

2026/09/22

Sahan Weerasooriya

AAC staff distribute seat belt safety material to motorists on Galle Face Centre Road, Colombo.

The Automobile Association of Ceylon (AAC) conducted a seat belt safety awareness programme in front of its headquarters and along Galle Face Centre Road, encouraging motorists and passengers to make seat belt use a habit on every journey.

AAC staff, working alongside officers of the Sri Lanka Police Traffic Division, distributed specially designed hanging tags and stickers to drivers. The material carries a clear reminder that seat belts protect drivers as well as passengers in both the front and rear seats.

The public awareness drive was held ahead of the requirement taking effect on 20 September 2026, under which seat belt use becomes mandatory for every occupant of a vehicle travelling on an expressway.

AAC emphasized that the regulation should be understood as a life-saving measure rather than only a legal obligation. Wearing a seat belt can help prevent occupants from being thrown inside or from a vehicle during a collision and can lessen the severity of injuries.

The Association said road safety legislation must be supported by sustained public education, visible enforcement and responsible behaviour by all road users. The participation of the Traffic Police helped the campaign reach motorists directly in a busy part of central Colombo.