Business
Sri Lanka Retailers’ Association appeals for 50% concession on rentals and leases
‘Unfavourable forex situation has plunged many retail businesses into a new low’
‘Circumstances could force retailers to consider reduced business locations’
The Sri Lanka Retailers’ Association (SLRA), the apex body for organised retail in Sri Lanka, has issued a communique requesting landlords, lessors, and business partners to reduce leases and rentals for the Association’s membership.
President of SLRA, Murali Prakash appealed to landlords and lessors to provide a 50% concession on rentals and leases on all forms of physical infrastructure on properties leased and rented by SLRA members for the next one year. Furthermore, the association appeals to all business partners to share other costs where possible, to ensure that the sector, as a whole, is sustainable through these difficult times to safeguard the entire ecosystem.
The unfavourable forex situation has plunged many retail businesses into a new low after battling the COVID-19 pandemic for over two years with reduced operability. This has significantly eroded the business sustainability, given that most retailers heavily rely on imported products and raw material. The ongoing dollar crisis could continue to significantly reduce the revenues, impede growth and impact all operational levels to a point where maintaining physical infrastructure would be challenging. Increasing the cost base has further dampened the condition.
Due to this situation, there is a sense of urgency for the retailers to forge partnerships and implement cost sharing in all areas to wade through the challenges. SLRA believes that retailers and their business partners could overcome such adverse conditions only through a shared vision. If they stand together, all costs can be shared and the businesses could continue to operate. The alternative would force retailers to consider reduced business locations, which could hurt many landlords and business partners and result in zero income. A similar impact will befall other business partners, should retail customer points are reduced. Therefore, it is in the interest of everyone, that a shared cost strategy is established.
SLRA is optimistic that landlords, lessors, and other business partners would share part of the costs through reduced rentals and other cost-sharing options; thus, striving to create a better tomorrow. It also understands the impact this would have on the lessors and landlords and other business partners and suppliers. However, the industry needs to stay afloat for all parties to benefit in the future, and therefore a collective action is indeed the way forward.
Retailers have endlessly supported the local economy during good and bad times, and this is an exception where they need support from all business partners. Retail accounts for over one-third of the GDP and over 15% of the employment in Sri Lanka. Vibrant retail is an essential part of a healthy and robust economy. Hence, it is imperative that all parties come together to support the retailers at this juncture for the nation’s greater good.
The SLRA currently represents nine sectors in the retail industry, namely FMCG; Clothing, Fashion & Jewellery; Shelter & Housing; Household & Consumer Durables; Footwear & Accessories; E-Commerce; Mobility; Entertainment, Restaurant, and QSR; Healthcare and Wellness.
SLRA expresses gratitude to all parties, in advance, for the support extended to its membership.
The Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe, officially handed over the Financial Statements and Operations Report 2024 of the Central Bank of Sri Lanka to President Anura Kumara Disanayake at the Presidential Secretariat on Tuesday (29).
A copy of the report was also presented to Secretary to the President Dr. Nandika Sanath Kumanayake.
Several senior officials from the Central Bank were present at the occasion.
Business
HNB Investment Bank promotes Hayleys’ Rs. 7 billion debenture issue as Joint Placement Agent
Hayleys PLC, one of Sri Lanka’s foremost diversified conglomerates, has announced its plans to raise up to Rs. 7 billion through a debenture issue, marking one of the largest corporate debt offerings scheduled for Q2 2025. This strategic initiative has received in-principle approval from the Colombo Stock Exchange.
At the core of this transaction, HNB Investment Bank (HNBIB) plays a leading role as Joint Placement Agent to the issue, alongside Commercial Bank of Ceylon PLC. Renowned for its bespoke financial solutions and strong track record in capital market transactions, HNBIB’s involvement is pivotal to the success of this offering, reaffirming its expertise in structuring and placing sophisticated debt instruments, most recently demonstrated by way of being the exclusive manager for the country’s first-ever high-yield bond issuance earlier this year.
Hayleys’ initial tranche will offer 50 million listed, rated, unsecured, senior, redeemable five-year debentures priced at Rs. 100 each, aiming to raise Rs. 5 billion. In the event of oversubscription, the company retains the flexibility to issue an additional 20 million debentures, increasing the total potential value to Rs. 7 billion. The funds raised are intended to further optimize Hayleys’ capital structure, underlining the company’s forward-looking financial strategy.
The subscription list for the debentures will officially open on 5th May 2025.
Backed by a strong AAA (Lka) rating from Fitch Ratings Lanka Limited and senior status, the securities offer a compelling investment opportunity, combining stability with the potential for attractive returns.
As Hayleys PLC gears up for this significant fundraising exercise, the selection of HNB Investment Bank as a trusted partner, reinforces confidence in the success of the offering, once again highlighting its role in delivering value for issuers and investors alike.
Thai Airways celebrated the one-year anniversary of its resumed operations in Sri Lanka with a series of activities recently. This initiative, which aligns with the airline’s commitment to corporate social responsibility, was successfully held at TRACE City, Colombo 10, on April 4, 2025.
The celebrations culminated with a successful blood donation campaign which involved the community at large.
The campaign underscored Thai Airways’ dedication to the local Sri Lankan community and strengthened the historical and cultural ties between Thailand and Sri Lanka. Blood donation is considered a highly meritorious act in Buddhism, a faith deeply ingrained in both nations. This initiative reflected the shared values of compassion and generosity practised by people in Thailand and Sri Lanka alike.
Since resuming flights between Colombo and Bangkok on March 31, 2024, after a four-year Hiatus, Thai Airways has continuously aimed to enhance its presence in Sri Lanka beyond aviation services. The airline’s Royal Silk Business Class, introduced on March 2, 2025, has elevated the flying experience for passengers traveling between the two countries. With daily flights, passengers benefit from seamless connections to over 60 destinations across Asia, Australasia, the Middle East, Scandinavia, and Europe.
“It’s a great pleasure to be here today as the Sri Lankan Thai Airways team celebrates the first- year anniversary of resuming daily flights between Bangkok and Colombo. This milestone signifies the strong and enduring friendship between Thailand and Sri Lanka. We are thankful to the management of Thai Airways International for establishing this crucial air link. Our partnership has been invaluable. We are deeply honored to have with us today Ms. Prangthip Kongridhisuksakorn, the counsellor of the Royal Thai embassy.
‘Your presence underscores the importance of this occasion and the bond between our nations. Also extending our sincere gratitude to all our partner travel agents for their continued support. Adding to this exciting year, we were thrilled to open Business Class seats offering enhanced comfort and service to our passengers. And thank you once again to our Royal Thai embassy, Thai Airline personnel, travel agents and our dedicated staff for being a crucial part of our success. And thank you all for participating in this meaningful blood donation campaign. Your contribution today embodies the spirit of giving and strengthens the ties between our communities, said Andre Fernando, Managing Director, MAC Holdings Private Limited.
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