Business
Seylan Bank perseveres through macroeconomic challenges to retain momentum in Q1 2022
Seylan Bank PLC recorded a Profit After Tax (PAT) of LKR 1.1 Bn in Q1 2022, maintaining its forward momentum in a period of volatile macroeconomic challenges. The Bank capitalized on its strong fundamentals with capital adequacy ratios well above regulatory requirements; whilst ensuring its liquidity position remained above the required minimum ratios during the quarter, maintaining the Statutory Liquid Asset Ratio (SLAR) for the Domestic Banking Unit and the Foreign Banking Unit at 23.32% and 22.65% respectively. This, along with a strong Net Interest Income (NII) of LKR 6.8 Bn, recording a growth of 22.51% in the period under review, ensured that Seylan Bank perseveres through macroeconomic challenges to retain its forward momentum in the first quarter of 2022.Seylan Bank recorded a total operating income growth of 21.80% amounting LKR 9.1 Bn during the period under review compared to LKR 7.5 Bn in the correspondent year. The Bank’s net gain from trading recorded LKR 3.6 Bn in 1Q 2022 mainly due to an increase in Net Gain on Derivatives Financial Instruments.
Net Fee and Commission Income recorded a notable growth of 24.20% to LKR 1.437 Bn from LKR 1.157 Bn mainly due to increase in Card Related Income, Trade Finance Related Fees, and Other Financial Services Related Income such as commission income and E-banking. The Loans and Advances portfolio of the Bank recorded a growth of 4.56% to LKR 462.1 Bn during 1Q 2022 which also reflects the inflation of the book by currency deprecation. The growth in credit was driven primarily by Term loans, Overdrafts and Packing Credits. Seylan Bank’s overall deposit base recorded a growth of 5.52% to LKR 515.6 Bn in the period under review with the Bank’s CASA ratio (Current and Savings) at 34.24%.Commenting on Seylan Bank’s performance in the first quarter of 2022, Kapila Ariyaratne, Director/Chief Executive Officer, Seylan Bank PLC stated, “Sri Lanka underwent massive upheavals in the quarter under review. As the country seeks to stabilize its position amidst an unprecedented crisis, Seylan Bank has done well to maintain its momentum despite the challenges it faced, achieving LKR 643.1 Bn of Total Assets as of 31 March 2022, resulting in 5.85% growth compared to 31 December 2021. We have managed to keep expense growth at a minimal level by focusing on lean initiatives and automation across the Bank and rationalizing expenditure on key controllable cost lines. Team Seylan is to be lauded on leading by example during times of crisis and adapting a culture of working smarter across all the functions, leading to increased efficiency.”
The Return on Equity (ROE) stood at 8.18% for the period under review, compared to 9.07% recorded in 2021. The Return on Average Assets (ROAA) recorded as 0.94% in 1Q 2022. Earnings per Share (EPS) in 2021 stood at LKR 1.82, a slight increase compared to the LKR 1.74 recorded in the comparative year, while Net Assets Value per Share recorded at LKR 88.31 (Group LKR 91.46).Seylan Bank remained adequately capitalized in Q1 2022, with the key capital adequacy ratios above the regulatory minimum requirements. The Bank’s Common Equity Tier 1 (CET 1) Capital/ Total Tier 1 Capital Ratio was recorded as 9.78% and the Total Capital Ratio as at end March 2022 was 12.78%.The Bank recorded impairment provision of LKR 3.4 Bn for 1Q 2022 compared to LKR 2.2 Bn for the correspondent year as a result of the increase in additional provision accounted for foreign currency denominated instruments due to the current situation. Income tax expenses stood at LKR 413.2 Mn which is a 5.36% increase from the comparative period which stood at LKR 392.2 Mn.
Business
GDP data reaffirms persistent asymmetry of Sri Lanka’s provincial economy
Western Province maintains its dominant position, accounting for 42.4% of nominal GDP
The 2024 provincial GDP data reaffirms the profound and enduring structural asymmetry in Sri Lanka’s economic geography. The Western Province continues to function as the nation’s overwhelming economic core, while the second and third runners-up, the North Western and Central Provinces respectively, operate on a markedly different scale and sectoral foundation.
The Western Province maintains its dominant position, accounting for 42.4% of the country’s nominal GDP. This preeminence is rooted in its commanding role across the high-value Services and Industry sectors, where it contributes 44.5% and 47.6% of national output, respectively. Its economy is distinctively modern, with a scant 2.3% reliance on agriculture and over 98% of its output derived from industry and services. This concentration of finance, trade, administration, and manufacturing creates an unmatched gravitational pull for investment and talent.
In stark contrast, the combined economic share of the North Western (11.5%) and Central (10.7%) Provinces is just over half that of the Western Province alone. Their paths to relevance are fundamentally different. The North Western Province has solidified its role as the nation’s agricultural heartland, contributing a full 20.0% of national agricultural activity. It also holds a significant, though secondary, position in industry at 12.0%. Its internal economic composition is more balanced across sectors than the west, with a notable reliance on industry (29.1% of its own GDP) alongside agriculture.
The Central Province, meanwhile, presents a more services-oriented profile among the runners-up, contributing 10.7% to the national services total. It also holds important shares in agriculture (13.9%) and industry (9.6%). Internally, its economy mirrors the national structure most closely among major provinces, with services constituting about 63% of its output. This suggests a diversified regional economy centered on urban hubs like Kandy, but one that lacks the concentrated high-end service power of Colombo.
The comparative analysis reveals a clear hierarchy. The Western Province is the integrated, metropolitan driver of the modern economy. The North Western Province serves as a vital agro-industrial base, and the Central Province as a diversified regional center. Despite a noted increase in the combined share of the other provinces, the gap remains vast. The economic landscape is thus characterized not by convergence, but by a persistent and specialized asymmetry, where the runners-up support the national economy through different, but essential, sectoral strengths, all while operating in the long shadow of the western province.
by Sanath Nanayakkare
Business
Sri Lanka Insurance supports 1,000 families in flood-affected areas
Sri Lanka Insurance Life and Sri Lanka Insurance General, in collaboration with the National Disaster Relief Services Centre (NDRSC), extended vital assistance to 1,000 families affected by the recent ‘Ditwah’ cyclone. The relief initiative was carried out in two phases on 30th November and 2nd December 2025, reflecting the company’s continued commitment to supporting communities in times of distress.
Dry ration packs were distributed through the NDRSC to the Maharagama Urban Council and the Divulapitiya Pradeshiya Sabha, ensuring that aid reached the most affected households swiftly and efficiently. Both distribution programmes were held with the participation of local authorities and the management teams of SLIC Life and SLIC General, further strengthening the company’s close partnership with the communities it serves.
Speaking on the initiative, Chairman of Sri Lanka Insurance, Nusith Kumaaratunga, stated; “Sri Lanka Insurance has always placed community wellbeing at the heart of its purpose. In difficult times such as these, it is our responsibility to stand with the families who have been affected and offer meaningful support. This relief effort reflects our ongoing commitment to uplift communities and reinforces our role as a trusted national insurer focused on protection, care, and compassion.”
In addition to the relief programme, Sri Lanka Insurance has implemented extended operating hours at selected SLIC General branches in the affected areas to ensure uninterrupted service. Claims, customer care teams, and branch staff are working beyond regular hours to provide prompt assistance to policyholders impacted by the severe weather conditions.
Sri Lanka Insurance remains dedicated to safeguarding its customers and supporting communities across the nation, reaffirming its longstanding promise of protection, stability, and service excellence.
Business
Jaffna Hindu College wins regional AIA Healthiest Schools award
Jaffna Hindu College was named as one of the winners at the regional award ceremony of the prestigious AIA Healthiest Schools Competition, a flagship initiative by AIA Group aimed at promoting healthier habits among students across Asia-Pacific region through innovative school-based projects. The competition, which drew a record number of entries from eight regional markets, recognises schools that implement innovative and impactful initiatives in the areas of healthy eating, active living, mental wellbeing, and sustainability. Jaffna Hindu College stood out in the Active Lifestyles Award Category for its creative and community-focused project that introduced a bicycle rental system, ensuring greater access to physical activity for all students and encouraging healthier lifestyles across the region.
The winners of AIA Healthiest Schools programme were honoured at a vibrant regional awards ceremony in Da Nang, Vietnam, where the prize money was awarded to the respective schools to support the ongoing health and wellbeing initiatives.
The Cycling Club was introduced to make physical activity accessible and enjoyable for all students. The club introduced a bicycle rental system, managed via a custom software platform, ensuring equitable access regardless of financial background. Students participated in a cycle parade and three themed challenges focused on endurance, speed, and teamwork. The initiative quickly became popular, engaging over 100 students and receiving enthusiastic support from teachers, parents, and local businesses. Experienced cyclists from the community volunteered as coaches, while cycling organisations provided safety training and route planning.
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