Business

Releasing of State Bank funds to purchase paddy left in limbo

Published

4 years ago

2022/09/19

Thilina Walpola

Agriculture Ministry Secretary keeping his fingers crossed until next Board Meeting at BOC

Farmers say private rice-millers buy paddy at lower prices and sell rice at higher prices

by Sanath Nanayakkare

M.B. Rohana Pushpakumara, Secretary to the Ministry of Agriculture told the media on Saturday that the Cabinet had approved a bank facility of Rs. 2000 million from State Banks to purchase Yala Season’s paddy harvest from the farmers, which decision had been subsequently informed to the Banks by the Ministry of Finance, but nevertheless these funds have still not been released to the Paddy Marketing Board (PMB).

“The Cabinet of ministers had given the approval to get a credit facility of Rs. 2,000 million from the Bank of Ceylon and the People’s Bank to purchase the paddy harvest of the Yala season. Accordingly, the Finance Ministry had informed the Banks to release these funds to the PMB. In this backdrop, we started purchasing paddy from farmers immediately, assuming that we would get those funds. But we have still not received Cabinet-approved funds from the Banks, “he said.

“After the directives, we bought paddy to the value of Rs. 850 which was actually bought on credit. Over the past few weeks, we settled 90% of these credit purchases with funds of the PMB. However, we continue to negotiate with the Bank of Ceylon (BOC) to obtain the credit facility soon. What we hear by today is that the BOC is going to hold a Board Meeting by 2nd October, and a decision would be made at it to release the funds. If that happens, we can resume purchasing of paddy which has come to a halt due to lack of funds,” he said.

Meanwhile, farmers told the media that although harvesting of Yala Season’s paddy has started, the government warehouses are not purchasing their yield, and therefore, farmers can’t sell their yield at a competitive price.

“Government’s paddy purchasing centres must be opened as quickly as possible to prevent private rice millers from buying paddy from us at low prices,” they said.

” If we can sell a kilo of paddy at Rs. 150, that will be sufficient for us to cover our expenses and have a fair profit margin. But now we are compelled to sell at Rs. 96-110. That is not enough to cover even the cost of production. A big warehouse in Polonnaruwa has put up a sign as a ‘paddy purchasing centre’, but it remains closed. If the government starts purchasing paddy, then only private millers will start offering competitive prices. What happens now is they buy paddy at lower prices and sell rice at a higher price. If they buy low and sell low, that’s fine. But they are doing it the other way round.”

A farmer association told the media that this situation could lead to a hunger crisis. They, however, said that officials at the Ministry of Agriculture pledged to resolve the issue within a month’s time. They warned that if a solution is not found to the issue within the timeline, farmers and all the people that consume rice as their staple food would take to the streets to launch an Aragalaya.

However, credible news reports earlier this month said that the government was going to mortgage its paddy stocks to state-run banks to obtain required cash to make purchases from farmers in the current season. The move came after the state-run banks declared they were not in a position to extend loans to the state-run PMB to buy paddy as the debt on previous loans amounting to nearly Rs. two billion was still outstanding.

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Business

Ceylinco Life agent among three global finalists for award

Published

22 hours ago

2026/09/27

Thilina Walpola

Ceylinco Life’s Ambalantota branch agent AIP Manjula

Ceylinco Life’s Ambalantota branch agent AIP Manjula has been named one of three global finalists for the prestigious Insurance Agent of the Year award at the 11th Asia Trusted Life Agents & Advisers Awards (ATLAA) 2026.

The recognition places a Sri Lankan insurance professional among the finalists in a regional field spanning South Asia, Southeast Asia, East Asia and the wider Asia-Pacific region.

Ceylinco Life said the achievement reflected the calibre and customer-focused approach of its agency force, while recognising Manjula’s professionalism and commitment to policyholders.

The award evaluates insurance agents on criteria extending beyond sales performance, including ethical conduct, client service, policy persistency, digital adoption, innovative practices and contributions to the insurance industry and community.

The awards are organised by Asia Advisers Network and Asia Insurance Review, with LIMRA as co-organiser. An independent judging and balloting process is monitored by KPMG as the official scrutineer. The judging panel comprises senior insurance executives, association presidents and industry experts from across the Asia-Pacific region.

Business

CEAT Kelani retains AA+ rating for sixth year

Published

22 hours ago

2026/09/27

Thilina Walpola

CEAT Kelani Holdings (CKH) has retained its National Long-Term Rating of ‘AA+(lka)’ with a Stable Outlook from Fitch Ratings for the sixth consecutive year, reflecting the company’s financial resilience and leading position in Sri Lanka’s pneumatic tyre market.

The ‘AA+(lka)’ rating, the second-highest on Fitch’s national scale, indicates a very strong capacity to meet financial commitments.

Fitch said CKH’s established market leadership and resilient financial profile remained key strengths, while noting its exposure to price-sensitive, cyclical and highly competitive markets.

The Stable Outlook reflects expectations that the company will maintain its market position despite rising input costs and increasing competition from imported tyres, while preserving adequate credit metrics during periods of weaker earnings and higher investment.

Fitch expects CKH’s established brand, extensive dealer network and adaptive pricing strategies to support its market position. Planned production facility upgrades are also expected to improve product quality, particularly in the radial tyre segment.

The rating agency expects near-term pressure on margins from higher raw material and energy costs but said the company’s low leverage and sound liquidity would provide a cushion.

CKH Chairman Chanaka De Silva said the rating reinforced the company’s focus on disciplined financial management, operational adaptability and long-term investment.

Business

Commercial Bank leads nationwide aquatic clean-up drive

Published

22 hours ago

2026/09/27

Thilina Walpola

Sanath Manatunge, Managing Director/CEO of Commercial Bank and some of the Bank’s staff participating in the coastal cleanup programme

Commercial Bank of Ceylon mobilised employees, customers, volunteers and community members for a nationwide coastal and aquatic clean-up campaign across 20 locations on September 19 to mark International Coastal Cleanup Day 2026.

Conducted under the bank’s sustainability platform, themed ‘Forward Together for a Cleaner Future’, the initiative covered 16 coastal locations and four inland waterways, bringing together stakeholders for a coordinated environmental conservation effort.

The flagship programme was held at Mount Lavinia Beach, with additional activities at Wellawatte and Galle Face beaches. Similar initiatives were conducted by the bank’s regional offices at locations including Kalutara, Negombo, Trincomalee, Batticaloa, Puttalam, Jaffna, Galle, Dondra, Tangalle and along the Mahaweli River.

Employees, management, Future Force volunteers, customers and their families participated alongside the Marine Environment Protection Authority (MEPA), United Nations Global Compact Network Sri Lanka, government and local authorities, environmental organisations and community members.

The bank said the initiative reflected its commitment to water stewardship after adopting Sustainable Development Goal 6 — Clean Water and Sanitation — as a priority goal in 2025.