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Sampath Bank Posts Strong 1H 2021

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Harsha Amarasekera, Chairman, Sampath Bank PLC (left) and Nanda Fernando, Managing Director, Sampath Bank PLC

Sampath Bank’s diversified and resilient business model has proved to be valuable in navigating through the current macro-economic environment and has ensured a positive development on the bottom line of the Bank while ensuring the safety and well-being of the staff and customers during this turbulent time.

Sampath Bank posted a profit after tax (PAT) of Rs 7 Bn for the first half of 2021, against Rs 3.9 Bn for the same period in 2020. This significant increase of 78.1% in profit after tax was the result of a 16.7% increase in total operating income coupled with strict cost controls and other innovative efforts implemented by the management. Considering the impact and uncertainty created by COVID 19 in the 1H 2020, the Bank provided a sufficient amount of impairment provision in that period. Since the Bank brought forward a sizable buffer of impairment provision from 2020, it did not require similar provisioning in 1H 2021.

As a result of the growth recorded in PAT, the return on Average shareholder’s Equity (ROE) increased by 533 bps to 12.91% as at 30th June 2021 compared to 7.58% reported at the end of the year 2020. In the meantime, Return on Average Assets (ROA) also increased to 1.67% as at 30th June 2021 against the 1.09% reported for the year 2020.

The Bank recorded a PBT of Rs 9.5 Bn for the first half of 2021 compared to Rs 5.3 Bn reported during the corresponding period in the previous year, denoting a growth of 79.3%. Driven by strong performance recorded by the Bank in the first six months of 2021, the Sampath Group too posted significant growth, with Group PBT and PAT growing by 86.1% and 88.2% respectively over the figures reported for the corresponding period. In the period under review, the Group recorded a PBT of Rs 10.1 Bn and PAT of Rs 7.5 Bn compared to the PBT of Rs 5.4 Bn and PAT of Rs 3.9 Bn recorded in the corresponding period.

The Bank’s Net interest income for the period under review was Rs 19.2 Bn compared to the Rs 17.4 Bn reported for the corresponding period in the previous year, reflecting an increase of 10.4%. Although interest income declined by 9.1%, it was compensated by the decrease recorded in interest expenses, enabling the Bank to record a growth in NII. The pandemic induced uncertainty and the global economic recession prevented businesses and individuals from investing in new projects and business opportunities, which in turn created a lower demand for credit. The lower demand for credit and the low interest rate regime are the main reasons for the 9.1% drop in interest income. The interest income of the Bank stood at Rs 41.9 Bn compared to Rs 46.2 Bn recorded for the corresponding period.

Meanwhile, owing to prudent fund management strategies, Sampath Bank was able to re-price its liability products in line with the prevailing lower interest rates. Timely re-pricing helped the Bank to register a decline in interest expenses. Interest expenses dropped by 21% to Rs 22.7 Bn in the first half of 2021 from Rs 28.7 Bn recorded for the same period in the previous year. This helped to boost the Bank’s NIM to 3.42% as of 30th June 2021, which is 12 bps higher compared to the figure recorded at the end of 2020.

Net fee and commission income (NFCI) recorded a growth of 33.5% from the figure reported in the corresponding period of the previous year. This segment comprises income from various sources such as credit, card, trade, and electronic channels. Growth in this segment was driven mainly by card-related activities. Comparatively higher business activities in Sri Lanka during the first half of 2021, was the main reason for the increase in card-related commission income.

Net other operating income increased by 27.9% in the first half of 2021 compared to the corresponding period in the previous year. This growth was mainly backed by the increase in realized exchange income stemming from the 7.5% depreciation of the Sri Lankan Rupee against the US Dollar. During the first six months of 2021, the Bank recorded Rs 3.3 Bn as net other operating income compared to Rs 2.6 Bn reported in 1H 2020. The Bank recorded a Net trading income of Rs 46.3 Mn in the period under review, compared to the Rs 106.5 Mn loss registered in the corresponding period of the previous financial year. On this basis, the Bank’s net exchange income from foreign exchange transactions amounted to Rs 3 Bn for the period under review.



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JAT Holdings celebrates the 6th Pintharu Abhiman Convocation, uplifting over 800 painters through NVQ certification

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JAT Holdings PLC marked a significant milestone with the successful conclusion of the 6th JAT Pintharu Abhiman Convocation, recognising more than 800 painters who have earned their NVQ Level 3 qualification, an internationally recognised professional certification delivered in partnership with the National Apprentice and Industrial Training Authority (NAITA).

JAT Pintharu Abhiman was established to uplift Sri Lanka’s painter community through structured skills development, professional recognition and stronger earning potential. This year’s graduating cohort reflects the programme’s expanding reach and the tangible changes it continues to deliver for individuals, families and communities.JAT in collaboration with NAITA has streamlined the certification process such that what would traditionally take up to six months has been refined into an efficient and high-impact three-day assessment model. This approach ensures painters can obtain their qualification without sacrificing extended periods of work, while JAT fully absorbs the certification cost, removing financial barriers and enabling wider access to formal recognition.

Research conducted amongst NVQ qualified participants shows meaningful improvements in livelihoods, with 90 percent reporting increased personal confidence and 76 percent noting an improvement in their overall standard of living. This uplift demonstrates the long-term value of industry-aligned professional training.

A noteworthy moment at this year’s convocation was the recognition of four female painters who received their NVQ certifications. Their achievement marks an important step in broadening female participation in a field that has historically been male dominated, reinforcing JAT Holdings’ commitment to creating inclusive pathways for technical development and sustainable employment.

Speaking at the ceremony, Mr. Wasantha Gunaratne, Director Sales and Technical (South Asia) of JAT Holdings PLC, said:

“Pintharu Abhiman is fundamentally about development, giving painters the knowledge, structure and recognition they need to progress in their careers. By equipping over 800 painters with an internationally recognised NVQ qualification, we are not only strengthening the technical standards of the industry but also creating real pathways for entrepreneurship and financial independence. It is especially encouraging to see that one in five certified painters have already begun building their own businesses. These are the outcomes that matter because they show that when we invest in skills, we unlock opportunity. JAT remains committed to expanding these avenues so every painter has the chance to grow, lead and build a sustainable future.”

The 6th JAT Pintharu Abhiman Convocation underscores JAT’s continued dedication to uplifting the painter community, enhancing industry standards and supporting national skills development through accessible, professionally recognised qualifications.

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Industry bodies flag gaps in Draft National Electricity Policy

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The Ceylon Chamber of Commerce, together with the American Chamber of Commerce, Exporters Association of Sri Lanka, Federation of Renewable Energy Developers, Joint Apparel Association Forum, National Chamber of Commerce of Sri Lanka and Sri Lanka Association for Software and Services Companies, has submitted joint observations on the Draft National Electricity Policy, highlighting that several key issues have not been adequately addressed.

Whilst recognizing the need for reform in the electricity sector, the submission flags several gaps in the draft policy that require closer attention. Key areas such as affordability, decarbonisation commitments, incentives for renewable energy, competition, and the long-term financial health of the sector are either missing or not addressed in sufficient depth.

The proposed tariff revisions outlined in the draft energy policy raise concerns, particularly regarding the removal of cross-subsidies and the proposal to restrict subsidies exclusively to households consuming less than 30 kWh per month. Without detailed analysis, these measures could weaken access to sustainable and affordable energy and potentially lead to fiscal risks.

The provisions allowing uncompensated curtailment, removing feed-in tariffs, and imposing mandatory time-of-use tariffs on rooftop solar users could make renewable energy projects un-bankable for international lenders, thereby increasing the cost of capital for Sri Lanka.

Calling for a more future-focused approach, the submission stresses the need for a policy that reflects modern electricity systems, including planning for the energy transition, energy storage, market competition, cross-border electricity trading, and emerging technologies.

The Chambers and Associations request a comprehensive revision of the Draft National Electricity Policy, alignment with the Electricity Act, and resubmission following substantive consultation, and reiterate support to engage constructively with policymakers to shape a policy that supports affordability, investment confidence, and Sri Lanka’s long-term energy security.

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Bank of Ceylon partners with 36th APB Sri Lanka Convention

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Bank of Ceylon (BOC) partnered with the 36th Annual Convention of the Association of Professional Bankers (APB) Sri Lanka, reaffirming its commitment to promoting professional excellence and knowledge sharing within the banking sector. The partnership was officially handed over by Sameera D. Liyanage, Chief Marketing Officer of Bank of Ceylon and M. R. N. Rohana Kumara, Deputy General Manager Business Revival Unit of Bank of Ceylon, reflecting BOC’s focus on empowering banking professionals and supporting the sustainable growth of Sri Lanka’s financial services industry.

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