Business

Sri Lanka financial institution ratings not affected by sovereign downgrade: Fitch Ratings

Published

3 years ago

2023/09/18

Broader economic conditions ‘ remain challenging’ amid expected contraction of economy Near-term ‘downside risks’ to credit profiles from spill-over effects of remainder of DDO ‘Uncertainties’ prevail over the completion of foreign-currency sovereign debt restructuring

Sri Lanka bank ratings are unaffected by the downgrade of Sri Lanka’s Long-Term Local-Currency Issuer Default Rating to ‘RD’ from ‘C’, says Fitch Ratings.On 14 September 2023, Fitch downgraded the sovereign’s Long-Term Local Currency Issuer Default Rating following the completion of an exchange of treasury bonds for longer-dated ones, which forms a part of the broader domestic debt optimisation program. The exchange of treasury bills held by the Central Bank of Sri Lanka (CBSL) has yet to be completed.

“We do not believe the completion of the first phase of the restructuring of the sovereign’s local-currency obligations is likely to trigger a loss of depositor confidence in the banking system, leading to a widespread default within the financial system, including for non-bank financial institutions (NBFIs). Therefore, we expect the banks to continue to service their local-currency obligations, given their better funding and liquidity profiles relative to that of the sovereign”, Fitch says.

Fitch continues to maintain the Rating Watch Negative (RWN) on Sri Lanka banks and NBFI’s ratings to reflect the potential for deterioration in their creditworthiness relative to other entities on the Sri Lankan national ratings scale.

This reflects near-term downside risks to credit profiles from spill-over effects from the remainder of the sovereign’s debt restructuring, while access to wholesale foreign-currency funding remains constrained. Further clarity around the sovereign debt restructuring process, particularly on the foreign-currency debt, that points to a reduction in stresses that have affected the banking sector in the past several quarters, would result in a resolution of the RWN with affirmation of the bank ratings.

While the local banks have been spared from the rupee debt restructuring, we believe that the broader economic conditions remain challenging as reflected in the expected contraction of the economy and high volatility of economic variables. This may still place downward pressure on individual credit profiles, particularly for NBFIs, which tend to be more exposed to cyclically sensitive segments. We believe that the re-assessment of the sovereign credit profile following the completion of the debt exchange with CBSL will influence the ratings of the banks and NBFIs, given the high interconnectedness.

While the domestic debt optimisation programme is nearing completion, uncertainties prevail over the completion of the foreign-currency sovereign debt restructuring. Any doubts over this could weigh on the banking sector with spillover effects to the NBFIs, given the banks’ exposure to defaulted foreign currency sovereign bonds, albeit they make up a small share of sector assets (3.6% of assets at end-1H23).

All News Advertisement

Business

Uber introduces Hybrid Subscriptions for Moto and Tuk Drivers

Published

44 seconds ago

2026/05/22

Thilina Walpola

Uber, Sri Lanka’s most loved ridesharing platform, today announced the launch of Hybrid Subscriptions for Moto and Tuk drivers in the country. This includes a new ‘earn first, pay later’ model that gives drivers greater flexibility by allowing them to start earning on the platform without upfront payments. Drivers will continue to benefit from 0% commission on trips, allowing them to keep all of their earnings while paying a subscription fee separately.

With hybrid subscriptions, drivers can choose a model that works best for their driving patterns, making it easier for both full-time and part-time drivers to access trips and earn on Uber. The launch is aimed at improving the overall experience for drivers while continuing to offer reliable mobility for riders.

Flexibility and earning potential remain key priorities for drivers across Sri Lanka’s two- and three-wheeler ecosystem. The new model addresses this by giving drivers more control over how they engage with the platform and how they structure their earnings. By offering both time-based and earning-based subscription options, Uber provides drivers greater flexibility. While time-based subscriptions are ideal for full-time drivers, earning-based subscriptions work well for part-time drivers.

Commenting on the launch, Kaushalya Gunaratne, Country Manager – Mobility, Uber Sri Lanka, said, “”Drivers are at the heart of everything we do. We were among the first to introduce subscription models for Moto and Tuk drivers in Sri Lanka, and with hybrid subscriptions, we’re taking it further – giving drivers the benefits of zero commissions and the flexibility to choose what works best for them.”

Business

Ideal Motors host ‘Ideal Abiyogaya 10’ in Habarana rewarding customer trust

Published

46 seconds ago

2026/05/22

Thilina Walpola

Ideal Motors, the automotive company that has revolutionised Sri Lanka’s automotive industry and won the hearts of its customers through social responsibility, will conduct the unique ‘Ideal Abiyogaya 10’ program on 22 May 2026, at the Habarana Maha Vidyalaya.

The Ideal Abiyogaya program, which began over a decade ago in 2015, is held exclusively for Mahindra Bolero customers. The 10th phase of the Ideal Abiyogaya is centred across the districts of Anuradhapura, Polonnaruwa, Matale, and Trincomalee.

Ideal Motors General Manager Kasun Fernando and Business Relations Manager Vinoj Dahanayake invite all Sri Lankans who are keen to participate in the Ideal Abiyogaya in the districts of Anuradhapura, Polonnaruwa, Matale, and Trincomalee to participate in what promises to be a highly successful program.

During the Abiyogaya, multiple competitions will be held for Mahindra Bolero customers including industrial training programs for school children with the aim of developing their industrial knowledge and singing programs also for school children. To celebrate the culmination of the special event, a grand musical concert will be held with a leading Sri Lankan musical ensemble, and entrance is completely free of charge.

Business

Havelock City Mall celebrates Mother’s Day with exclusive retail offers and debut Mother & Daughter Fashion Show

Published

48 seconds ago

2026/05/22

Thilina Walpola

Havelock City Mall (HCM) wrapped up its Mother’s Day Celebration Weekend 2026 with strong results, attracting a discerning audience on 9 and 10 May. The two-day programme combined premium retail promotions, lifestyle-led activations, and the debut “Mother and Daughter” Fashion Show in a shopping mall setting, reinforcing HCM’s positioning as a premier lifestyle destination in Colombo.

Throughout the weekend, visitors accessed exclusive deals and seasonal specials across leading fashion, food and beverage, and wellness brands. The offer mix supported gifting-led purchases and strengthened retail engagement during one of the year’s most significant family occasions. By pairing commerce with curated experiences, HCM encouraged longer visits and offered premium shoppers a weekend proposition that extended beyond transactional retail.

A key highlight took place on 10 May, in parallel with Mother’s Day, as HCM partnered with Chokolaate to stage the Mother and Daughter Fashion Show, Shopping Mall Edition, for the first time. Held on Sunday evening, the showcase attracted prominent guests and a high-profile audience, adding a refined fashion and lifestyle dimension to the celebrations and underscoring the mall’s focus on experience-driven retail.

The fashion showcase was supported by a line-up of brand partners across categories, including clothing partners AriElle, Baylee, Chenara Dodge, Dilly and Carlo, Fabindia, Jia Moda, and Mimosa; footwear partners DSI Premier and Saheli; jewellery partners GIVA and Moonstone; accessory partner Cool Planet; and hair and makeup partner Salon Naturals.