Business
Sampath Bank reports stable results amidst economic headwinds
Ptofit After Tax showed reduced improvement due to higher tax expenses
Only a marginal drop in its Net Interest Income thanks to stringent management
Backed by its strong capital base, Sampath Bank continues to navigate adeptly through challenging times. The Bank demonstrated resilience and a commitment to prioritizing stakeholder interests in the face of challenging economic headwinds, thanks to its well-executed business strategies, increased vigilance, and proactive risk management measures.
Despite the country showing signs of a broader economic upturn in 2023, Sampath Bank remained steadfast in supporting customers who continued to experience stress due to pressures accumulated over the past few years. Spearheaded by its Credit Nursing Unit, the Bank offered a variety of relief measures, including tailor-made repayment plans, restructures, and rescheduling solutions, to provide much-needed breathing space for distressed customers. This enabled them to focus on revitalizing their businesses. Additionally, the Bank provided financial counseling and business advisory services to empower customers to access fresh equity, seed capital, and other resources to transform their business models. This initiative was aimed at creating stronger and more resilient businesses capable of thriving in an increasingly uncertain world.
Notwithstanding challenges in the external operating environment, the Bank engaged in its CSR commitments with renewed vigour to initiate various projects under its flagship “Weweta Jeewayak” program contributing to rural economy growth. In addition, the Bank gave enhanced focus to contribute to the country’s climate action goals by increasing investments in the “A Breath to Ocean” initiative aimed at restoring the oceanic ecosystems, particularly in turtle conservation, coral restoration and mangrove rehabilitation.
Regardless of continuing uncertainties and challenging economic conditions throughout the year, profitability remained in line with expectations as the Bank’s Profit Before Taxes on financial services stood at Rs 38.4 Bn which is a 89.9% increase over the previous year’s achievement of Rs 20.2 Bn.
However, considering the impact of higher tax expenses, the Profit After Tax (PAT) demonstrated a reduced improvement of 30.5%, rising from Rs 13.1 Bn in the previous year to Rs 17.1 Bn for the year ended 31st December 2023.
The Group remained resilient with a profit after tax of Rs 17.9 Bn for the year under review, reflecting a 27.5% growth over the previous year.
The Net Interest Income (NII) for the year amounted to Rs 72.3 Bn, indicating a marginal 1.6% decline year on year, primarily due to the increase in interest expenses for FY 2023 surpassing the increase in interest income. Interest income increased by Rs 45.8 Bn in the year under review, marking a 29.1% improvement compared to the previous financial year, while interest expenses surged by 55.9% year on year reaching Rs 131.2 Bn. Despite this significant disparity, timely re-pricing strategies, coupled with stringent management of both asset and liability portfolios amidst the backdrop of the declining AWPLR, helped contain the impact on the Bank’s NII, ensuring only a marginal drop. The Net Interest Margin (NIM) for the year was 5.16%, compared to 5.66% reported in the previous year.
Tax expenses on financial services saw an increase of Rs 3.4 Bn, rising from Rs 5.2 Bn in FY 2022 to Rs 8.6 Bn in FY 2023. This growth is attributed to the combined impact of the overall expansion in the tax base and the application of SSCL for the entire year. Income tax too witnessed a substantial increase of 567.7% from Rs 1.9 Bn in FY 2022 to Rs 12.6 Bn in FY 2023. This surge is attributed to the expanded tax base and the application of a higher tax rate of 30%, introduced in the second half of 2022, throughout the year 2023.
Business
Charting a worker-centered AI future: Colombo hosts landmark ITF conference
By Sanath Nanayakkare
Artificial intelligence and automation present serious challenges for workers – such as job consequences seen in docks and rail systems – and emphasises that workers cannot simply stop technological progress. By gathering young trade unionists in Sri Lanka, the ITF aims to establish key principles for engaging with technology, ensuring workers have a strong voice at the bargaining table, and encouraging constructive social dialogue with corporations and governments.
These compelling words from ITF General Secretary Stephen Cotton underscored the urgent reality facing modern labor as rapid technological advancements sweep across global industries.
Confronting this shifting landscape head-on, the International Transport Workers’ Federation (ITF), in partnership with the National Union of Seafarers of Sri Lanka (NUSS), convened a ground-breaking conference on artificial intelligence in Colombo from September 15–17.
As the ITF’s first-ever AI-focused global conference and the first of its kind hosted in Sri Lanka, the landmark event marked a critical milestone in balancing technological innovation with worker-centered safeguards.
Representing over 16.6 million transport workers worldwide, the ITF designed the gathering to tackle the multifaceted impacts of AI on safety, operations, workforce development, and governance. Rather than resisting progress, the conference focused on proactive engagement, establishing guiding principles to protect workers’ rights and privacy both at sea and on land.
Key discussions centred on sharing best practices for upskilling and reskilling transport personnel, ensuring that human oversight remains central to AI-driven logistics, routing, and maintenance.
Reflecting on the historic nature of the event, Boa Athu, CEO of National Union of Seafarers Asia Pacific, noted that the conference represented a monumental moment as AI emerges as a permanent fixture of contemporary life.
Highlighting NUSS’s pride in hosting the event in Colombo, Athu emphasised that AI offers transformative potential when guided by strong social dialogue, equitable access to training, and robust governance safeguards.
Ultimately, the Colombo conference demonstrated that the future of transport must be shaped by those who keep the world moving. By uniting international labour leaders, affiliates, port operators, and regulators, the event laid a vital foundation for inclusive policy frameworks that champion fair labour standards, securing a powerful voice for workers in an automated tomorrow.
Business
Bridging the digital divide: Sri Lanka’s airport licence challenge
By Sanath Nanayakkare
As Sri Lanka experiences a surge in visitors from its largest tourist market, India, a modern administrative hurdle has emerged at Bandaranaike International Airport (BIA).
While nations like India and Pakistan have successfully transitioned to fully digital driving licences and cashless ecosystems, Sri Lanka’s Department of Motor Traffic counter still requires a physical card to issue temporary local permits, The Island Financial Review learns.
This mismatch creates significant friction for independent travelers who rely entirely on smartphones and cloud-stored credentials. Tourists turned away at the airport – and sometimes redirected to the Werahera office in vain – find themselves unable to legally rent and drive vehicles. Consequently, this policy gap harms local car rental operators, causes tourist frustration, and deprives the government of valuable permit revenue.
The situation highlights a distinct irony: Sri Lankan motorists easily travel abroad using International Driving Permits that are readily accepted in India and Pakistan, yet local infrastructure cannot reciprocate due to outdated verification systems.
Recognizing the problem, Department of Motor Traffic officials have noted that upgrades and new equipment are currently in the works to integrate foreign digital platforms.
For a nation aggressively pursuing a national digitalisation drive, rapidly modernising these transport protocols is essential to keeping pace with global travelers and unlocking the full potential of its tourism economy.
Business
International Afro-Latin Dance Festival in Colombo to grow into a larger regional tourism draw
ALIF-SL, Sri Lanka’s first-ever international Afro-Latin dance festival, returns for its 4th edition from 25 to 27 September 2026 at the Galle Face Hotel, Colombo. The festival will bring together over 30 international and national artists and 175–200 participants from more than 20 countries, reaffirming its place as the region’s leading platform for Salsa, Bachata and Kizomba.
This year’s edition is headlined by Tropical Gem, the world’s No. 1 salsa team, travelling from Italy to perform and teach alongside a stellar international line-up. Attendees can also look forward to the ALIF Cup Sri Lanka Open, a keenly contested competition judged by an international panel, giving local dancers a rare opportunity to compete and connect with world-class talent.
“Every year, ALIF connects Sri Lanka to the world. With this year’s artist line-up and the ALIF Cup competition, we’re not just hosting a festival, we’re putting Sri Lanka on the map as a top destination for dance,” said JD Ruban, Founder and Director of ALIF-SL
Beyond the dance floor, ALIF-SL continues to support Sri Lanka’s tourism sector, drawing dancers, judges and enthusiasts from across the globe to Colombo and positioning the capital as an emerging regional hub for social dance. Organizers plan to grow the festival into a larger regional tourism draw, introduce new competition categories, and bring in even bigger headline acts in future editions.
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