Business
Sampath Bank Posts Strong 1H 2021
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.
Business
‘Green Chilies’ returns after seven years to reignite Sri Lanka’s advertising industry spirit
After a seven-year hiatus, one of Sri Lanka’s most loved advertising industry gatherings is making a much-anticipated return. Green Chilies 2026, the iconic festival that once defined the fun, camaraderie and creative spirit of Sri Lanka’s advertising fraternity, returns on 4th June 2026 at Rise Up, Colombo 03, bringing together professionals from across agencies, media, digital, production and marketing for an evening of celebration, entertainment, and industry camaraderie.
Originally launched in 2011, Green Chilies was conceived as a platform to celebrate Sri Lanka’s Young Lions winners as they embarked on their journey to represent the country at the prestigious Cannes Lions International Festival of Creativity, while also creating a unique opportunity for the industry to come together outside boardrooms and deadlines.
This year’s revival comes at an especially meaningful time, as an entire new generation of industry professionals have entered the business without ever experiencing the culture and energy that made Green Chilies such a defining event. Some key highlights will be the recognition of the winners of the young Lions competition and the much-loved return of The Agency Idol, the wildly entertaining competition where agencies battle it out on stage in a spirited showcase of talent, humour, and creativity, bringing back one of the event’s most iconic traditions.
Speaking about the return of the festival, Ranil de Silva, Founder of Green Chilies and of Metal Factor, said: “When we first launched Green Chilies, the idea was simple. It was to celebrate our Young Lions and create something that brought the industry together as one community. Over the years it became far more than an event, it became part of our industry culture. Seeing it return after seven years is very special, particularly because so many young professionals will now get to experience the spirit that made this industry such a fun and inspiring place to be.”
Green Chilies 2026 is organized by Metal Factor and supported by the 4A’s Sri Lanka.
Event Details:
Venue: Rise Up, Alwis Place, Colombo 03
Date: Thursday, 4th June 2026
Time: From 6.30 PM onwards
Contact : Shelley +94 77 342 3123
Business
JKH posts 75% EBITDA growth to Rs.80.01 billion as recent investments begin to contribute
John Keells Holdings PLC (JKH) reported a strong financial performance for FY2025/26, with Group EBITDA increasing 75% to Rs.80.01 billion, reflecting the contribution of investments made over the past several years and the continued performance of the Group’s established businesses.
Group recurring EBITDA increased 71% to Rs.78.05 billion, compared to Rs.45.69 billion in the previous year, driven primarily by Retail, Transportation and Leisure. Recurring profit before tax rose 143% to Rs.35.72 billion, while recurring profit attributable to equity holders of the parent increased 155% to Rs.13.24 billion.
The year also marked the culmination of the largest investment phase in the Group’s history, with the operationalisation of key investments signalling a shift in the capital cycle from development to contribution. Overall funding requirements reduced materially in line with expectations, while net debt to EBITDA stood at approximately 2 times and net debt to equity at approximately 31%.
City of Dreams Sri Lanka recorded positive EBITDA for the full year, following the completion and launch of the remaining components of the integrated resort. Cinnamon Life’s conference and event spaces attracted interest from local and international organisers, while casino operations showed an encouraging pick-up from the fourth quarter onwards.
Colombo West International Terminal, the project company of WCT-1, recorded strong throughput growth during the year, supported by an improving volume mix. The business delivered a positive profit after tax ahead of expectations, despite recognising depreciation relating to phase 1, and has reached full utilisation of phase 1 capacity based on its latest monthly run-rate.
John Keells CG Auto recorded an exceptional year, supported in part by pent-up demand and the brand positioning and vehicle range of BYD.
The Supermarket business recorded approximately 14% growth in same store sales, driven primarily by a 14.3% increase in footfall. The Beverages and Confectionery businesses recorded strong volume growth, with Beverages benefiting from higher margins, while Confectionery margins were impacted by higher raw material costs and expenses linked to new product introductions.
Business
RCSS receives Chatham House Senior Research Fellow for discussion on South Asian Regionalism
Dr. Chietigj Bajpaee, Senior Research Fellow for South Asia, Asia-Pacific Programme at Chatham House, visited the Regional Centre for Strategic Studies on 26 May 2026 and met with the ED/RCSS, Ambassador (Retd.) Ravinatha Aryasinha, and researchers at the Centre. The discussion focused on Regionalism in South Asia and evolving geopolitical developments in the region.
Ambassador Aryasinha detailed the recent and ongoing initiatives undertaken by the RCSS and its wide Alumni Network spread throughout the region in strengthening South Asian solidarity. Dr. Bajpaee impressed on the need to consider alternative forms of regional cooperation in South Asia given the absence of India–Pakistan normalization, resulting in the stagnation of SAARC and the growing pull towards external regional frameworks such as the Regional Comprehensive Economic Partnership (RCEP). The two parties explored possibilities beyond state-led regionalism, including stronger networks among civil society, think tanks, diaspora groups, and business communities, as well as thematic “mini-lateral” cooperation on issues such as climate adaptation and maritime governance.
Ms. Chamika Wijesuriya, Ms. Thedini Herath, and Shayan Peris, Research/Programme Officers at RCSS, were associated with the discussion.
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