Business
AIA Insurance globally recognised as Best Life Insurance Company in SL

What makes a company the best? Is it it’s strength, stability and reputation? Is it the force of an exceptional team that drives it? Perhaps its unrivalled innovation and agility? Or more so, the fact that it goes above and beyond in what it offers its stakeholders. Maybe its world-class standards and exposure with in-depth local understanding? And certainly, its commitment to the community and society that surpasses just business objectives. Indeed, it is all of these and that’s how and why AIA Insurance has been recognised as the Best Life Insurance Company in Sri Lanka, for the fourth year, a company news release said last week..
“Awarded by internationally acclaimed Capital Finance International for 2022, this is testimony to the significant contribution made by AIA to Sri Lanka’s life insurance industry in terms of its innovative and inclusive products and propositions, superlative customer experience, community investment initiatives and workforce empowerment, the release said.
“Last year was no doubt a trying year for Sri Lanka with an unprecedented social and economic backdrop. Despite it being an economically challenging time for all businesses, AIA was determined to be there for Sri Lanka and her people when it was most needed. As such the company’s focus on societal endeavours took precedence.
“Be it renovating underprivileged schools and hospitals around the island or providing support to underprivileged and vulnerable children and elders, AIA’s priority was giving back to the community. The company managed many societal endeavours during the last year, including projects with HelpAge Sri Lanka, SOS Children’s Villages Sri Lanka, Sri Lanka Cancer Society, Lanka Alzheimer’s Foundation, Department of Probation and Childcare Services, not to forget AIA’s flagship CSR projects, the National Poson Safety Programme and Higher Education Scholarships, which are two of the longest standing projects in the country”.
The release added company remained committed to enhancing the customer experience, while increasing efficiency and convenience through new and improved digitalized processes. As a company pioneering digital transformation in the industry, AIA has launched many industry firsts including a modern human centric point of sales (POS) solution, cloud-based workflow automation, robotic process automation, cloud-based strategy, remote digital signatures for customer onboarding and advanced analytics for intelligent decision making. AIA’s efforts towards going paperless has further established its green commitment while also ensuring faster, better connectivity with customers.
Business
Cargills Bank in ‘steady performance’ over nine months ended September 30, 2023 – PAT Rs. 432 Million

Economic conditions and challenges prevailing last year have moderated somewhat, given the steadfast approach by policy makers and regulatory authorities towards economic recovery. We appreciate their efforts, and our results bear testimony to the progress made. Nevertheless, the road ahead remains challenging. A meaningful government budget, continued success of the IMF program, general price stability and regained momentum in tourism, remittances and exports will be key in shaping the country’s short- to medium- term economic revival, a Cargills Bank press release said.
The release adds: ‘Cargills Bank’s results for the nine months ended 30 September 2023 reflected continuing QoQ improvement in profitability. Profit after tax at Rs. 432 Mn was higher by Rs. 324 Mn than in the corresponding period of 2022. We are pleased the Bank has been able to maintain this momentum of profitability growth, and are confident the results of 2023 will reflect the strong commitment of the Bank’s team, successful execution of its strategy, a continued rigorous focus on market trends and its adaptability to a volatile environment.
‘Net interest income grew 15% or Rs. 353 Mn in the nine months compared with the corresponding period of 2022. The Bank directed its resources towards higher yielding assets, hedging interest rate risk and prudently managing deposits. In addition, close monitoring of the Bank’s lending portfolio and timely solutions offered to financially stressed customers helped maintain a healthy NIM to date.
‘Net fee and commission income of Rs. 590 Mn for the nine months was lower than the Rs. 641 Mn in the previous year. The decrease of 6% related largely to lower trade volumes and reduced net income from card related services. Additionally, capital gains realized on derecognition of financial assets, and higher foreign exchange income boosted other income streams by Rs. 265 Mn, to Rs. 391 Mn in the nine months.
‘Total operating expenses increased 25% from Rs. 1.7 Bn last year to Rs. 2.1 Bn. Personnel expenses increased 15% largely due to adjustments to salary and welfare benefits considering increased costs of living and market conditions. Other operating expenses grew 44% mainly from the impact of the Social Security Contribution Levy which was effective from October 2022, the increased cost of utilities and the cost of repair and maintenance of IT assets, particularly where denominated in foreign currencies.
‘Impairment charges totaling Rs. 607 Mn reflected a reduction of 50% in the first nine months of 2023 evidencing a focused and proactive management of delinquencies and commendable overall team efforts in this direction. The Bank’s Stage 3 Loans (net of Stage 3 Impairment) to Total Loans Ratio stood at 6.64% while Stage 3 Provision Cover was 52.74% at 30th September 2023. Additional impairment overlays considered necessary have been incorporated after a careful scrutiny of the status of borrowers.
‘VAT on Financial Services and income tax expenses increased substantially mainly due to growth in profits and the increased corporate income tax rate effective 1 October 2022.
‘The Bank maintains Capital Adequacy and Liquid Assets Ratios well above the minimum requirements prescribed by the Central Bank. The total Capital Adequacy Ratio was 20.43% while the Statutory Liquid Assets Ratio stood at 37.72%.
‘Total assets of the Bank at 30 September stood at Rs. 64.7 Bn, an increase of 20% or Rs. 11 Bn in the first nine months of the year. Financial Assets measured at fair value through other comprehensive income grew by 92% to reach Rs. 19.6 Bn. Positive gains were reflected in Other Comprehensive Income. The loan book registered moderate growth, from Rs. 36.0 Bn to Rs. 36.8 Bn, given conditions prevailing. In this regard, the Bank exercised care in maintaining the quality of its lending in a high interest rate environment, where interest payments threatened borrowers’ viability. A shift in strategy commenced in the latter part of the period, to rebuild momentum in lending.
‘Deposits to customers grew 20% from Rs. 37.8 Bn at the end of 2022 to Rs. 44.9 Bn at the reporting date amidst continued reductions in market interest rates. The Bank will judiciously balance interest expenditure and income, as substantial reductions in interest rates and the time lag in repricing loans have a direct impact on NIMs.
‘In October 2023, Fitch Ratings affirmed Cargills Bank’s National Long-Term Rating at ‘A(lka)’; Negative Outlook.
‘Ms Ruvini Fernando, who has served as a Director since 1 August 2018, resigned from the Bank’s Board on 27 October 2023 due to personal circumstances. Mr Arjuna Herath has been appointed to the Bank’s Board effective 1 November 2023.
‘The Colombo Stock Exchange (CSE) has approved the listing of the Bank’s shares on the CSE. Steps are being taken to duly offer to the public 62.5 Mn shares of the Bank at Rs. 8.oo per share through an Initial Public Offering.’
Business
Unilever Sri Lanka celebrates a Decade of Empowering Sri Lanka’s Youth

Empowering the younger generation, Unilever Sri Lanka recently inducted its 10th batch of Unilever ‘SPARKS’ student Ambassadors, welcoming 26 passionate undergraduates from 10 different universities into its impactful and sought-after student ambassadorship programme.
The SPARKS programme seeks to cultivate the leadership skills and innovative spirit of Sri Lankan undergraduates, encouraging them to become positive influencers among their peers. This is a voluntary student ambassadorship programme in which selected undergraduates from various universities are appointed to be ambassadors of Unilever in their respective institutions for a period of 1 year. The programme was launched in 2014 by Unilever Sri Lanka and was subsequently adopted by Unilever entities across the world.
Hajar Alafifi, Chairperson and Managing Director, Unilever Sri Lanka said, “We are looking forward to working with the selected talented youth in this year’s SPARKS programme. The program is a testament to our commitment towards empowering local youth. This year-long programme serves as an ambassadorship, with students acting as liaison between Unilever Sri Lanka and their respective university. The programme is designed to allow students to exhibit their strength as leaders in their institution. The program is highly sought after among undergraduates, with a remarkable 55% of SPARKS ambassadors transitioning to internships or permanent roles within Unilever in recent years. Celebrating its 10th year, this annual endeavor reflects Unilever’s sustainable approach to making a lasting positive impact on the nation’s youth, preparing them to be ‘future fit.’’
Business
7th Great HR Quiz by CIPM

The Chartered Institute of Personnel Management (CIPM) announces the forthcoming 7th Great HR Quiz, a distinguished event showcasing the expertise of workplace professionals in Human Resources. Scheduled to take place today, at the Hotel Galadari, Colombo, the event is set to commence at 2:00 p.m.
Being a brainchild of Rohitha Amarapala, the past president of CIPM, the Great HR Quiz made its debut in 2014 and has since evolved into a prominent fixture in Sri Lanka’s HR sector. Anticipated to be more significant and more impactful this year, the event is expected to draw the participation of approximately sixty-five esteemed companies.
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