Business
Breaking free from conventional investment paths; How to make your money work harder
Understanding Where Your Money Goes and How Businesses Grow
Picture this: You have some extra money sitting in your drawer, while across town, an established manufacturing company with a solid track record desperately needs funds to expand their operations and hire more workers. How do these two needs meet? Welcome to the fascinating world of capital markets – Sri Lanka’s financial matchmaking service.
What Exactly Are Capital Markets?
Think of capital markets as giant marketplaces where money changes hands. Just like in an ordinary marketplace, companies come to capital markets to “buy” money (through borrowing or selling shares), while people with extra cash come to “sell” their money (by investing) in exchange for returns.
In simple terms, capital markets help channel money from people who have it (savers and investors) to people who need it (businesses and governments) to grow and create jobs.
Breaking Free from the Middleman: Why Direct Investment Matters
It is the general consensus that the depositing your hard-earned money in a bank is the safest option, what’s with the collective financial trauma Sri Lankans have gone through via experiences like the Golden Key Scandal and the Sakvithi Debacle.
For years, the journey of your money looked like this: You earn money → deposit it in a bank → bank lends it to businesses → bank keeps most of the profit. In fact, according to the Economic Financial Review 2024, published by The Central Bank of Sri Lanka, showed that deposits, collectively racked up to an amount of Rupees 17,969.4 billion which accounted for 81% of the banking industry’s total liabilities and equity at the end of 2024. This reveals how there is a massive deposit concentration in the economy created by the overwhelming confidence in the banking sector. It is obvious that Sri Lankans understand the vitality of the banks and that they provide essential services, keep our money safe, and fund countless businesses. Essentially, they have become the backbone of Sri Lanka’s financial system.
However, this system has natural limitations. Banks must be careful with depositors’ money, so they’re selective about who gets loans. Interest rates stay high because banks need to cover their costs and risks. Many promising small businesses get turned away simply because they don’t fit standard lending criteria.
The Bottom Line is that Banks have served Sri Lanka well and continue to play a crucial role. But very little of your bank savings are used for the overall development of the country. So where do we go from here?
The Game Changer: Direct Connection to Funds via The Capital Market
Enter capital markets with a revolutionary idea: “Why not let savers and borrowers deal directly with each other?” Essentially cutting out of the middleman which simply means “removing the go-between.”
Moving away from the role of banks, capital markets offer something additional: the power for ordinary people to directly participate in building the economy while growing their own wealth. It’s not about choosing sides – it’s about having more financial freedom and opportunities.
Instead of your money sitting in a bank that decides who gets it, you can now directly choose to invest in companies you believe in. It’s like buying directly from the farmer instead of going through multiple middlemen.
Two Roads to Raising Money: Equity vs Debt
When companies need money, they have two main paths in capital markets:
When it comes to the ownership in terms of Equity, the ownership dilutes with each share issue but in terms of debt . the holder retains the ownership. In equity shareholders receive a share of their profits and losses but in debt, the holder has no claim on profit and losses
The Ownership Route: Equity Markets
Imagine you and your friends want to start a restaurant. Instead of borrowing money, you decide to sell small pieces of ownership to raise funds. This is exactly what happens in equity markets. Companies sell shares, which represent small pieces of ownership, to the public to raise capital. When you buy shares, you become a part-owner of the company, and if the company performs well, your shares become more valuable. Additionally, you might receive dividends, which are your share of the company’s profits distributed to shareholders.
The Lending Route: Debt Markets
Sometimes companies prefer to borrow money rather than give away ownership, which is where debt markets come in. In this scenario, companies issue IOUs called bonds or debentures to raise funds. When you buy these securities, you’re essentially lending money to the company, and they promise to pay you back with interest over a specified period. You receive regular interest payments throughout the loan term until they repay the full principal amount. Think of it like this: if equity is like having a business partner, debt is like being a money lender with a written promise of repayment.
Things That Set Apart; Equity Vs Debt
Ownership – When it comes to equity financing, ownership is diluted as shares are sold to investors. However, in debt financing, the debt holder retains ownership.
Profit/Loss Sharing – In equity financing, shareholders receive a share of profits and losses, as opposed to debt financing in which lenders have no claim on profits or losses
To be Continued
by Securities and Exchange Commission of
Sri Lanka
Business
Nestlé Lanka celebrates 120 years of ‘Good Food, Good Life’ in Lanka
Nestlé Lanka Limited, the ‘Good Food, Good Life’ company, celebrates 120 years of operations in Sri Lanka this year. Since its founding in 1906, the company has grown into the nation’s leading food and beverage manufacturer, producing over 90% of its locally sold products in Sri Lanka. Guided by its purpose of enhancing quality of life for today and future generations, Nestlé Lanka has touched lives through nutrition, livelihoods, and sustainability.
Over the decades, the company has offered tastier and nutritious choices tailored to local needs, from birth to old age, with micronutrient-fortified products that promote healthier living. Iconic brands such as NESTOMALT and MILO further encourage active and healthy lifestyles through sports sponsorships.
Beyond products, Nestlé Lanka engages communities through partnerships with dairy and coconut farmers, supporting skills development, responsible sourcing, and local livelihoods. Its youth empowerment initiative, Nestlé Needs YOUth, strengthens employability, while collaborations with organisations like BConnected create inclusive work pathways for people with disabilities.
Sustainability is a core focus, with a commitment to achieve net-zero carbon emissions by 2050. Recent steps include a biomass boiler commissioned in 2024 and the use of 100% renewable electricity at the Kurunegala facility. Through these initiatives, Nestlé Lanka continues to deliver on its promise of enriching lives while safeguarding the planet.
Commenting on this milestone, Bernie Stefan, Chairman and Managing Director of Nestlé Lanka said, “Celebrating 120 years in Sri Lanka is a moment of immense pride for all of us at Nestlé. This milestone reflects not only the longevity of our business, but the trust generations of Sri Lankan families have placed in us and the strong partnerships we have built across the country. For over a century, we have been committed to Working Together for Good – contributing meaningfully to the Sri Lankan economy, supporting livelihoods, and positively impacting communities, while consistently providing tasty and nutritious products that consumers love. Through iconic brands such as NESTOMALT, MILO, MAGGI to name a few, we have been part of everyday moments in Sri Lankan homes, helping nourish families and support healthier, more active lifestyles. As we look ahead, we remain firmly committed to continuing this journey with purpose, responsibility and care, enriching Sri Lankan lives every single day.”
Business
Sampath Bank and Apartner Bring Digital Payments to Sri Lanka’s Growing Condominium Sector
Sri Lanka’s condominium landscape continues to expand at pace, reshaping urban living across the country, yet many residential communities still rely on manual payment methods that slow down collections, delay reconciliations and limit financial visibility for both residents and management corporations.
Responding to this growing gap, Sampath Bank PLC has partnered with Apartner (Pvt) Ltd to digitise condominium payments in Sri Lanka, introducing a secure, real-time payment and settlement framework designed to support smarter, more efficient apartment living. The partnership integrates Visa’s Cybersource payment gateway with Sampath Bank’s API Manager, enabling seamless digital payment collection alongside instant outward settlements and reconciliations.
Speaking on the collaboration, Chirath Samarasekara, Head of Card Centre at Sampath Bank, stated, “Condominium living is becoming a defining feature of modern Sri Lanka and the financial infrastructure that supports it must evolve accordingly. Through Visa’s Cybersource payment gateway and our API Manager, this partnership enables real-time settlements and reconciliations that bring greater transparency, control and predictability to condominium payments while offering residents a secure and convenient digital experience.”
Deshan Dias Bandaranayake, Co-Founder and Chief Executive Officer of Apartner, commented, “This partnership with Sampath Bank allows us to remove one of the biggest operational pain points faced by condominium communities. Real-time payment visibility and automated reconciliation give management corporations confidence in their cash flows while residents gain convenience, security and peace of mind through a platform built for everyday living.”
Business
A lifetime of tickets: Kalawana retiree preserves a 76-year long lottery trail
For many Sri Lankans, buying a lottery ticket is a daily ritual. Some do it out of habit; others try their luck from time to time. Morning crowds gathered around lottery kiosks across the country are testimony to the enduring appeal of the small slip of paper that promises fortune.
But in the quiet village of Dolahena in Kalawana lives a man whose relationship with the lottery stretches far beyond hope of a windfall.
At 88, retired postal worker E. M. D. Bandara Ekanayake has spent more than seven decades buying lottery tickets — and, more remarkably, preserving them. His collection, which dates back to the early years of organized lotteries in Sri Lanka, may well be one of the most extensive personal archives of lottery tickets in the country.
“I started buying lottery tickets in 1962, the year the National Lottery Board was established,” Bandara told the Sunday Island. “At that time a ticket cost only 50 cents, and the top prize was about one lakh of rupees.”
His fascination with lotteries, however, predates the National Lottery Board itself. Bandara recalls purchasing his first ticket in 1959 when a lottery was held in connection with an industrial exhibition.
“From then until today, I have been buying five tickets at a time,” he said. “For about 76 years I have continued this habit.”
Unlike most lottery buyers who discard their tickets once the draw is over, Bandara carefully preserved every ticket he purchased. As a result, he now possesses lottery tickets issued by both the National Lottery Board and the Development Lotteries Board from 1962 to the present.
“I don’t think anyone else has such a collection,” he said with a quiet smile.
Ironically, his decades-long participation has not brought him extraordinary winnings. “Apart from small prizes, the biggest amount I have ever won is Rs. 10,000,” he admitted.
Yet Bandara insists that winning has never been his primary motivation.
“I buy lottery tickets with great interest and enthusiasm, but not because I expect to win,” he said. “The lottery boards contribute a great deal to the development of this country. Funds raised through lotteries support education, health and other development work. I feel a deep sense of satisfaction knowing that I too contribute, even in a small way.”
His dedication to buying tickets has endured despite the difficulties he once faced in obtaining them.
“In the early days there were no lottery sales outlets in the Kalawana area,” Bandara recalled. “The only place we could buy them was at Sinnaiah Stores in Nivitigala. I used to travel by bus to buy the tickets and bring them back. Sometimes I would send someone else to buy them for me.”
Over time, lottery sales expanded to Kalawana itself. Bandara remembers that a trader named P. D. T. Lathpadura Mudalali began selling lottery tickets at the Ranasinghe Hotel, making it easier for locals like him to buy them.
From then on, Bandara purchased his tickets locally, but the practice of carefully preserving them remained unchanged.
His passion for collecting does not stop with lottery tickets. Bandara has also maintained an extensive collection of newspapers over the years. Even bus tickets from his journeys have been preserved alongside his treasured lottery slips.
The unusual collection recently drew the attention of officials from the National Lottery Board, who visited Bandara’s home bearing gifts after learning about his decades-long dedication.
For Bandara, however, the recognition is secondary to a larger sense of purpose.
“I will continue buying lottery tickets as long as I live,” he said. “At the same time, I try to help others and engage in social service whenever I can.”
His commitment to community welfare is not merely rhetorical. Using his own funds, Bandara has already built a community hall for the benefit of residents in his village.
“I hope to continue doing social service in the future as well,” he said.
In an era when lotteries are often associated with dreams of instant wealth, Bandara’s story offers a different perspective — one of quiet dedication, civic-mindedness and personal discipline.
For him, the value of a lottery ticket lies not in the promise of riches but in the small contribution it makes towards the collective good.
And after 76 years, that belief remains unshaken.
By Upendra Priyankara Jathungama
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