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
Environmental devastation seen as precipitating economic crisis in Northern Sri Lanka

As parched soil cracks underfoot and once-thriving fields lie fallow, the farmers of Mannar are living on the frontlines of a crisis that is no longer just environmental — it’s economic. Climate change has tightened its grip on this northern region, and with each failed monsoon and dwindling harvest, the livelihoods of entire communities are evaporating.
The Centre for Environmental Justice (CEJ), along with local stakeholders, has raised urgent concerns over the increasingly hostile conditions faced by farmers in the region. At the heart of the problem are erratic weather patterns — prolonged droughts, unpredictable rainfall, and extreme heat — all of which disrupt the delicate balance required for traditional farming practices.
“The erratic weather patterns triggered by climate change are not only drying up water sources but also pushing already vulnerable farming communities deeper into poverty, Dilena Pathragoda, Executive Director, CEJ told The Island Financial Review.
He added: “The economic consequences are severe — from crop failures to loss of livelihoods — and without timely interventions and climate-resilient strategies, the long-term sustainability of agriculture in regions like Mannar is in jeopardy.”
In 2024 alone, nearly 3,000 acres of paddy land in Mannar District were left uncultivated due to lack of water, according to data from local agrarian offices.
In other words, this represents an estimated loss of over Rs. 225 million in potential harvest income, based on average yields and market prices. Farmers who once cultivated rice, onions and vegetables with predictable seasonal success now face devastating uncertainty.
The failure of rain-fed tanks (reservoirs) and the drying up of canals have made irrigation nearly impossible in some areas. In Nanattan and Musali divisions, water availability dropped by some 60 per cent compared to historical averages. As water becomes scarcer, so do incomes, leading many families to take on debt or abandon agriculture altogether in search of daily-wage labour.
This agricultural downturn is having ripple effects throughout the local economy. In Mannar, where over 60% of households depend directly or indirectly on farming, the collapse of agricultural productivity has led to rising food prices, shrinking local markets, and reduced cash flow for small businesses. Fertilizer vendors, seed suppliers and even transport workers are reporting significant losses.
“Some farmers have seen their seasonal incomes drop from Rs. 200,000 to under Rs. 50,000, noted one local agriculture officer. “Many are defaulting on informal loans and are now relying on relief aid to survive.”
Economists warn that this trend, if unchecked, could contribute to broader socio-economic instability. Rural depopulation, youth migration, and heightened inequality are already being observed in vulnerable districts. Women, in particular, face added burdens as household food security becomes more precarious and access to clean water requires greater physical labor.
Despite these challenges, experts insist that solutions are within reach. Climate-resilient farming techniques — such as drip irrigation, drought-tolerant crops, and community-managed water systems — have shown promise in pilot projects across other dry zones. However, scaling these up requires political will, coordinated planning, and substantial investment.
Environmental advocates also call for a shift in national agricultural policy. “Rather than pouring money into outdated infrastructure or monoculture subsidies, Sri Lanka must pivot towards sustainable, adaptive farming models, said Pathragoda. “This includes better support for farmers’ education, access to technology, and integrated land and water management.”
Civil society groups, including CEJ, are urging both the government and international donors to treat the Mannar crisis as a wake-up call. Climate finance mechanisms, they argue, must be made accessible to grassroots communities, not just large-scale development firms. Moreover, climate justice must take center stage — recognizing that those suffering most have contributed least to the global emissions causing these disruptions.
As Sri Lanka navigates an uncertain economic recovery, ensuring food security and rural resilience is more than an environmental imperative — it’s a matter of national stability, Pathragoda stressed.
By Ifham Nizam
Business
CSE and NCE partner to empower Sri Lankan exporters

The Colombo Stock Exchange (CSE) and the National Chamber of Exporters of Sri Lanka (NCE) entered into a strategic partnership to support Sri Lankan exporters by enhancing their access to capital market opportunities and broadening visibility for their businesses.
The partnership agreement was signed by Shiham Marikar, Secretary General / CEO, The National Chamber of Exporters of Sri Lanka, and Ms. Vindhya Jayasekera, Chief Executive Officer Designate, CSE. The signing ceremony was attended by Ms. Dilini Gamlathge, Assistant Director, Member Services/Operations, The National Chamber of Exporters of Sri Lanka; Ms. Punyamali Saparamadu, SVP Commercial, CSE; Ms. Himashi Wickramasinghe, Manager, Commercial, CSE; Ms. Shivandini Liyanage, SVP, Legal, Enforcement and Compliance, CSE; and Kanishka Gunawardana, Manager, Enforcement and Compliance, CSE.
This partnership with the CSE will provide NCE members—both experienced exporters and aspiring ones—with access to vital capital market knowledge and services to support their business expansion efforts.
This collaboration aims to offer exporters tools and resources to strengthen their market presence and growth potential. It also creates a platform for SMEs within the export sector to consider listing on the Colombo Stock Exchange, particularly through the Empower Board—dedicated to facilitating capital raising for small and medium-sized businesses.
Through this partnership, CSE will also gain direct access to a network of established exporters, enhancing the reach of capital market education, awareness-building, and strategic financing solutions among key players in Sri Lanka’s export economy.
The collaboration will further enable opportunities for joint forums, knowledge-sharing sessions, and networking events, providing exporters with guidance on alternative avenues for capital generation and highlighting the benefits of corporate good governance and transparency through listing.
This partnership adds credibility to the CSE and NCE’s shared efforts and signals trustworthiness to potential stakeholders, offering significant advantages for fostering growth, strategic opportunities, and long-term development within Sri Lanka’s export sector.
Business
A case for a visa-free tourism regime in SL

Sri Lanka should not have any restrictions for tourist arrivals and a visa-free regime is the need of the hour to woo more visitors, said travel and aviation expert Nihal C.B. Perera.
The founder of a family-owned company in Sri Lanka, Sparklink Travels, Perera said that Sri Lanka should offer the same ‘Visa Free facility’ initiated by Singapore and now successfully implemented by Thailand.
A former Ceylon Tourist Board, Development and Publicity Director, he said that during his time, they leased or gave several unused state land areas to build hotels. “But we told the investors that the construction has to start in six months, and this happened.”
One such venture was the opening of the Pegasus Reef Hotel at Wattala.
Perera also initiated the creation of special tourism zones in Bentota, Hikkaduwa and several other areas.
After a nearly 15-year stint at the Tourist Board, he formed his own travel company, Sparklink Travels, in 1979 with just 4 employees. “With the rapid expansion of business, and being recognized as an IATA-accredited travel agency, we increased our employee strength and moved into our own four-storey building in Bambalapitiya. We also opened a branch in Australia, he said.
“After the COVID pandemic, we also negotiated with airlines and refunded all passenger tickets purchased and cancelled due to COVID-19, Perera explained.
He recalled the days when people were issued small booklet-type air tickets and how his staff had to visit the airline offices to collect them. Perera added: “The online has changed these and I think this is a time-saving move.
“Unlike two decades ago, online and payment gateways have enabled people to book their own air tickets from home and we too have changed our strategies to find new businesses.”
Today, Sparklink Travels continues with his son Praki Perera, heading the company’s operations in Sri Lanka and Australia.
Their dedication ensures that the company remains a premier provider of air travel, cruises and tours, with professional services tailored to enhance the true essence of travel.
Perera, who has been a pioneering force in Sri Lanka’s tourism sector, was also honored as a ‘Tourism Legend’ at the annual industry awards.
By Hiran H. Senewiratne
-
Features3 days ago
SAITM Graduates Overcome Adversity, Excel Despite Challenges
-
Latest News7 days ago
NPP win Maharagama Urban Council
-
Business6 days ago
John Keells Properties and MullenLowe unveil “Minutes Away”
-
Sports3 days ago
ASBC Asian U22 and Youth Boxing Championships from Monday
-
News3 days ago
Destined to be pope:Brother says Leo XIV always wanted to be a priest
-
Foreign News4 days ago
Mexico sues Google over ‘Gulf of America’ name change
-
Opinion6 days ago
Ratmalana: An international airport without modern navigational and landing aids
-
Opinion3 days ago
Drs. Navaratnam’s consultation fee three rupees NOT Rs. 300