Business
Regulators watching LOLC Development Finance PLC’s meteoric rise to fame in no time
By Hiran H. Senewiratne and Sanath Nanayakkare
The small-scale LOLC Development Finance PLC (NIFL) gaining a rapid and phenomenal increase in its share-price within just under a month is reverberating in Sri Lanka’s capital market sector today.
This is more so as there has been no price-sensitive information disclosed to the CSE by NIFL.
Shares of LOLC Development Finance closed at 618.75 rupees a share on June 29, i.e. 123.75 rupees or 25.00 percent up from the previous day.
In comparison to its end-May price of Rs. 73, closing at 618.75 rupees a share on Tuesday June 29 reflected a dramatic and controversial total gain of 747% in a little under a month.
On June 28, LOLC Development Finance shares rose to 495 rupees, up 23 percent, valuing the small finance company at 117 billion rupees making it the fourth-largest company by market capitalization.
It now has a market cap bigger than Commercial Bank, the country’s largest private commercial bank.
It is also valued more than Sampath Bank and Hatton National Bank.
NIFL is now only behind parent company LOLC, JKH and CTC.
When The Island contacted Ajith Nivard Cabraal, the State Minister of Finance, Capital Markets and State Enterprise Reforms about this development, he asked The Island to enquire it from the SEC.
In response, Tushara Jayaratne, Director SEC- External Relations and Capital Market Education said the SEC has also observed this undue pattern of the share price movement in question and has called for information from CSE. |
“The SEC too is evaluating the manner in which the transactions have taken place and we are analysing the pattern and behaviour of the investors. If we find any malpractices, we will take stern action against those whore involved in it,” Jayaratne said.
CSE Chairman Dumith Fernando said that CSE has closely monitored the situation and would take all appropriate action within the current regulatory framework.
Pressed for more information, the CSE chairman said,”As a practice, we do not comment on ongoing market surveillance related matters, but all appropriate action would be taken,”
Former Minister Eran Wickramaratne said that their should be some rationale for investors to buy shares in a small company like that.
He said that if such a thing is happening it should be investigated by the relevant authorities. Maybe outside investors are getting inside information about the parent company and are buying shares of NIFL. There must be some reason for investors at the stock market to purchase shares in this manner,” he said.
Head of Sales in Softlogic stockbrokers Eardly Kern said that NIFL’s basic earnings for the share year ended 31 March 2021 reflected 65 percent, which was also a very big amount in the stock market and its net assets value per share is Rs. 11.83. The company’s free float witnessed above shares of top 20 companies, he said.
The company has only 34,100 shares in public which is 0.01 percent out of the total issued shares and the balance 99.89 percent are with the owners and due to this inequality in the distribution of its shares, it maybe trading at an extraordinary price, Kern said.
Meanwhile Chairman of Sri Lanka Insurance Chairman Jagath Wellawatta said
Sri Lanka Insurance Corporation (SLIC) bought 2.5 million LOLC shares (LOLC parent company) for Rs. 1 billion on Tuesday.
“It was a business decision taken by our investment committee which reviews and makes such decisions on a periodical basis. When we see the opportunity, we will sell them at a higher price and make a profit in the interest of Sri Lanka Insurance Corporation,” he said.
Business
ComBank hands over fully refurbished wards at De Soysa Hospital for Women
The Commercial Bank of Ceylon recently handed over Wards No. 03 and 04 of the De Soysa Hospital for Women, after the completion of a comprehensive renovation project launched in March this year to mark International Women’s Day.
Wards 03 and 04 handle a substantial share of the hospital’s patient load, and account for approximately 2,500 to 3,000 deliveries and 4,000 to 5,000 admissions annually. Their refurbishment was designed to significantly enhance patient care, safety and comfort, and directly benefit thousands of mothers and newborns.
Five Trustees of the Commercial Bank’s Corporate Social Responsibility Trust participated in the formal handing over of the refurbished wards to the hospital authorities. They were Sharhan Muhseen, the Bank’s Chairman, Raja Senanayake, Deputy Chairman, Sanath Manatunge, Managing Director/CEO, Hasrath Munasinghe, Chief Operating Officer, and Prasanna Indrajith, Chief Financial Officer.
Established in 1879, the De Soysa Hospital for Women is the first maternity hospital in Sri Lanka and the second oldest in Asia and is credited with, among others, performing the country’s first caesarean section in 1905 and establishing one of its earliest organised operating theatres in 1907.
The Commercial Bank’s Corporate Social Responsibility Trust, through which this project was implemented, has via its healthcare-related interventions supported more than 100 government hospitals with essential equipment and infrastructure, contributed to emergency medical services through the ‘Adopt an Ambulance’ initiative, and implemented targeted community health interventions such as water storage solutions for families affected by kidney disease.
Business
IIHS expands global nursing pathways
The International Institute of Health Sciences (IIHS) Multiversity is expanding its international education programmes with the aim of creating overseas employment opportunities for Sri Lankan nurses and allied health professionals while contributing to foreign exchange earnings.
Speaking to the media during a conference at IIHS Multiversity in Kerawalapitiya, Dr. Kithsiri Edirisinghe, CEO, Co-Founder and Dean of IIHS aid that the institute has established academic partnerships with overseas universities and higher education institutions, including the University of Surrey in the UK, Deakin University in Australia, Metropolia University of Applied Sciences in Finland, Asia e University in Malaysia and SUNY Canton in the United States.
Under its ‘Study in Sri Lanka, Graduate to the World’ model, students can complete foundational and diploma-level qualifications locally before progressing to international top-up degrees or overseas employment.
Dr Edirisinghe said the model could substantially reduce the cost of obtaining internationally recognised qualifications. It estimates that completing a four-year bachelor’s degree at the University of Surrey in the UK would cost about USD 145,700, including tuition and living expenses, compared with about USD 27,750 through the IIHS pathway in Sri Lanka.
Dr Edirisinghe said the institute’s focus on overseas deployment addressed both Sri Lanka’s economic needs and the growing global demand for healthcare workers.
“Our winning model is producing job-ready, registration-ready healthcare professionals who can seamlessly enter foreign healthcare systems,” he said.
IIHS, which began operations in 2002 as the American College of Health Sciences, established its institutional base in Welisara in 2008 and launched its purpose-built greenfield multiversity campus in 2023.
The institute said it has upgraded the qualifications of more than 5,000 government nurses, supported over 2,500 youth on international employment pathways and trained more than 1,000 allied health professionals. It has also carried out over 250 community health projects.
The institute has identified Germany and Japan among its target markets, with pathways planned for 2,000 nurses for Germany and a one-year preparation programme linked to around 4,000 healthcare positions in Japan.
Dr. Renuka Jayatissa, Vice-Chancellor and a specialist medical doctor, said demographic changes and the growing burden of non-communicable diseases were changing healthcare requirements in Sri Lanka.
Business
Sampath Bank launches Sri Lanka’s first community-powered book discovery platform at Colombo International Book Fair
Sampath GPay customers can enjoy 25% cash back on Book Fair purchases
Sampath Bank PLC has launched Sampath Book Finder, Sri Lanka’s first community-powered book discovery platform, giving visitors to the Colombo International Book Fair a faster and more seamless way to find the books they are looking for across the fair’s 150+ stalls, while also opening up new opportunities to discover titles recommended by fellow readers.
Introduced on the opening day of the Colombo International Book Fair on 25 September, Sampath Book Finder brings together digital innovation and the collective knowledge of readers to address a familiar challenge at one of Sri Lanka’s largest literary gatherings, where the scale of the fair can make locating a particular title a time-consuming exercise. When a book proves difficult to locate, visitors can access bookfairtracker.com or scan the designated QR code and submit a request to the community, allowing readers who have already spotted the title to share its location and help others find it without having to search stall after stall.
Commenting on the initiative, Milinda Weerasinghe, Chief Marketing Officer, Sampath Bank PLC, said, “At Sampath Bank, we believe meaningful innovation begins by identifying everyday challenges and creating solutions that make a real difference. Sampath Book Finder brings this thinking to the Colombo International Book Fair by turning the collective knowledge of readers into a real-time digital solution, empowering them to find what they are looking for, discover something new and help others do the same, while making the overall experience more convenient and connected.”
The platform also turns book discovery into a shared experience, allowing visitors to recommend books they encounter by sharing the title, publisher, hall and stall number, which enables fellow readers to discover sought-after titles and recommendations while making it easier to locate them within the fair.
Sampath Bank’s longstanding association with the Colombo International Book Fair also continues in 2026, marking more than 20 years of partnership, with the Bank serving as the Official Banking Partner for this year’s fair. As part of its presence at the event, SampathCards offer 25% cashback for Sampath GPay customers on their purchases and 3 months 0% instalment plans for book purchases via Sampath credit cards, while visitors can also access banking services through the Bank’s physical presence at the fair. Customers registering to open selected Fixed Deposits at the premises will receive an additional 0.25%, adding further value and convenience for visitors.
-
News6 days agoPolice remove Thileepan statue in Jaffna
-
Features6 days agoThe 22nd Amendment, constitutional recovery and illiberal slippage
-
Features6 days agoOf foreigners as CEOs of Lankan ventures
-
Latest News4 days agoGold winner Tharanga gets brand-new Honda Vezel from SLAAJ
-
News6 days agoSajith rejects Jt. Opp. protest sabotage claim; SJB TU chief demands remedial action
-
Features4 days agoWhy Sri Lanka needs an Inclusive Civic Nationalism – urgently
-
News3 days agoUS-assisted ‘Ice’ detection: NPC to examine IGP’s move to transfer drug-busting team
-
Features5 days agoThailand’s biggest new global star …
