Business

CDS accounts on the increase, crosses one million accounts

Published

2 weeks ago

2026/03/7

Central Depository Systems (Pvt) Ltd (CDS), a subsidiary of the Colombo Stock Exchange (CSE), has reached a milestone as total registered accounts surpassed the 1 million mark. This achievement coincides with the approach of the organization’s 35th anniversary in September 2026, marking three and a half decades of providing depository infrastructure for the Sri Lankan capital market.

Since its inception in 1991, the CDS has held the distinction of being the first depository in the South Asian region. In its core capacity as a depository, the institution is responsible for holding a wide array of securities including shares, debentures, corporate bonds, and units belonging to investors in electronic form.

The crossing of the one million account threshold also reflects the aggressive broad basing of the retail investor market over the past five years. This expansion is largely attributed to the comprehensive digitalization of the CSE, which has created accessibility for individuals across the country. Digital tools such as the CSE Mobile App and the “CDS e-Connect” portal have revolutionized how investors interact with the stock market, providing them with real time access to their holdings and a seamless interface for account management. The “CDS e-Connect”, originally launched in 2016 and revamped in 2021, has become a one stop shop for stakeholders, by offering services such as client profile management, real time balance and transaction viewing, eNomination facility, monthly statements and newly introduced dividend payment history viewing option. From 2016, by offering eStatements and SMS alert facilities CDS ensures transparency and security for the CDS accountholders. By decentralizing account openings and introducing online facilities in 2020, the CDS successfully brought the stock market to the fingertips of the general public, moving away from the traditional, paperwork heavy processes that once characterized the industry.

A critical pillar of this 35-year history was the 2011 launch of the full dematerialization drive. This initiative was designed to significantly reduce the movement of physical certificates, which were prone to loss, damage, and forgery. Today, the success of this drive is evident as the CDS holds 97 percent of listed equity and 100 percent of corporate debt in scripless form. This near total transition to electronic records has provided a secure and accessible service environment. The Central Control Unit plays a vital role, ensuring that all functions performed by the depository and its participants align with strict rules and regulatory guidelines. By identifying operational, financial, and market risks early, the CDS maintains the integrity of the ecosystem and fosters trust among both domestic and international investors.

Beyond its primary depository functions, the CDS has significantly expanded its influence through the Corporate Solutions Unit (CSU), established in 2017. The CSU was created to standardize and elevate the benchmarks for corporate action services in Sri Lanka and has since grown through the strategic acquisition of PW Corporate Registrar arm. This diversification allows the CDS to expand registrar services and manage corporate actions for both listed and unlisted companies, providing a holistic suite of services that includes the distribution of dividends, rights issues, and e-applications for Initial Public Offerings (IPOs). The digitization of issuer services has been a hallmark of the CSU’s work, introducing innovations such as eDividend payments, eWarrants, and eNotices. These advancements have streamlined the process for issuers while ensuring that shareholders receive their entitlements promptly and securely.

The strategic outlook for the CDS is now centred on the newly formed Research and Development Unit, which is essential to the organization’s vision for the future. This unit functions as a Project Management Office and is responsible for developing innovative services. By cultivating strategic alliances and international collaborations, the R&D unit ensures that the CDS remains a future forward institution capable of adapting to the evolving needs of the global financial sector.

As the CDS looks toward its 35th year of service, it remains focused on digital transformation, strategic partnerships that power progress, new service offerings and enhanced international relations. The integration of new technologies continues to ensure robust infrastructure for the next generation of market participants.

Head of CDS Nadeera Athukorale commenting on the vision of the CDS, remarked “By balancing its core depository duties with non-core registrar and consultancy services, the CDS has positioned itself for long term sustainability and industry leadership.”

The achievement of one million accounts serves as a testament to the resilience and adaptability of the Sri Lankan capital market infrastructure, demonstrating CDS’ ability to facilitate a growing digitized market while continuing to serve as the backbone of the nation’s investment landscape. (CSE)

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Business

Middle East tensions may hit tourism and energy sectors

Published

17 hours ago

2026/03/17

Sahan Weerasooriya

Tourists admiring nature’s abundance in Sri Lanka.

Escalating geopolitical tensions in the Middle East involving Iran are beginning to raise concerns here, with analysts warning that the fallout could affect not only the island’s tourism industry but also its energy sector.

Tourism stakeholders say the first signs of a slowdown in visitor arrivals have begun to emerge as airlines and travel operators adjust to disruptions across key Middle Eastern aviation corridors.

According to Harsha Suriyapperuma, Chairman of the Sri Lanka Tourism Development Authority, the current tensions could temporarily influence travel flows mainly due to disruptions affecting major transit hubs in the Gulf region.

A significant share of travellers heading to Sri Lanka from Europe and other long-haul destinations transit through aviation hubs such as Dubai, Doha and Abu Dhabi.

Industry analysts say that when geopolitical tensions escalate in the Middle East, airlines often revise flight paths, cancel services or adjust schedules due to security concerns and airspace restrictions, which can slow tourism flows to destinations like Sri Lanka.

According to a Tourism industry leader, global travel demand is highly sensitive to geopolitical developments affecting major aviation corridors.

He noted that disruptions to Middle Eastern airspace could result in longer travel routes, higher airline operating costs and increased airfares, which may influence the travel decisions of tourists planning long-haul holidays.

At the same time, economists and energy analysts warn that the conflict could also create ripple effects in global energy markets.

Sri Lanka is heavily dependent on imported fuel, and any instability in the Middle East — particularly involving a major oil producer like Iran — could push global crude oil prices upward.

Energy sector sources said rising oil prices would increase the cost of fuel imports and place additional pressure on the country’s foreign exchange reserves.

Higher global oil prices could also raise operational costs in the power generation sector, particularly for thermal power plants operated by the Ceylon Electricity Board, which relies on fuel and coal imports to meet electricity demand.

Analysts say increased fuel costs could eventually translate into higher electricity generation costs and additional financial pressure on the national power utility.

The tourism sector had entered 2026 on a strong recovery trajectory after attracting more than two million visitors last year, with authorities targeting three million arrivals this year.

However, industry experts caution that prolonged geopolitical instability in the Middle East could slow the momentum of Sri Lanka’s tourism recovery while simultaneously creating new challenges for the country’s energy sector.

Despite these emerging risks, officials remain cautiously optimistic that the impact will be temporary if tensions in the region stabilise in the coming weeks.

They stress that Sri Lanka continues to be viewed internationally as a safe and attractive destination, while authorities are closely monitoring developments in global energy markets and aviation networks.

By Ifham Nizam

Business

NDB raises Sri Lanka’s largest Basel III-Compliant Thematic Bond

Published

17 hours ago

2026/03/17

Sahan Weerasooriya

Kelum Edirisinghe - Director, Chief Executive Officer

National Development Bank PLC (NDB/ the Bank) recently announced that it successfully raised LKR 16.0 billion through the issuance of Basel III-compliant Tier II Rated Unsecured Subordinated Redeemable GSS+ Bonds (the GSS+ Bonds), to be listed on the Colombo Stock Exchange (CSE). This issuance marks a major milestone in thematic fundraising within Sri Lanka’s capital markets landscape, signaling the country’s growing progress in the increasingly important segment of sustainable finance.

The GSS+ Bonds issue opened on 10 March 2026 and was oversubscribed within the same day, demonstrating strong demand from both retail and institutional investors. This response reaffirms the confidence investors place in NDB and its overall financial strength and stability. The issuance of the GSS+ Bonds reflects the Bank’s strong environmental and social considerations embedded in its lending practices. For many years, NDB has maintained a robust Environmental and Social Management System (ESMS) ensuring that funds are directed toward environmentally and socially responsible projects and causes.

NDB’s GSS+ Bonds will be deployed to finance eligible Green (including Blue), Social, Sustainability, and Sustainability-Linked projects, supporting environmentally responsible, socially impactful, and sustainable economic development.

Business

HNB General Insurance fastest in reaching LKR 11 Bn. revenue (GWP) within 10 years of operations

Published

17 hours ago

2026/03/17

Sahan Weerasooriya

Stuart Chapman - Chairman / Sithumina Jayasundara –CEO

HNB General Insurance Limited (HNBGI) announced its financial results for the year ended 31 December 2025, marking a milestone year of accelerated growth, strengthened financial resilience, and sustained business momentum.

The Company recorded a Gross Written Premium (GWP) of LKR 11.0 billion for 2025, reflecting a robust 21% growth compared to LKR 9.1 billion in 2024. This performance significantly outpaced the industry’s growth of 15%, demonstrating the Company’s strong competitive positioning, disciplined execution, and continued customer confidence. With this achievement, HNBGI becomes the first general insurer in Sri Lanka to reach the LKR 11 billion GWP milestone within ten years of operations. The Company also improved its market position, moving up to 6th place from 7th in Sri Lanka’s general insurance sector.

The Fire segment emerged as a standout contributor with a 27% growth, reaching LKR 2.4 billion, while the Motor portfolio grew by 25% to LKR 6.0 billion. Marine recorded a steady 16% increase to LKR 378 million, and the Miscellaneous segment contributed LKR 2.2 billion. The broad-based growth across segments reflects HNB General Insurance’s balanced portfolio, effective distribution reach, and strong customer confidence.

The Company demonstrated its unwavering commitment to customers through timely and efficient claims management, committing LKR 2.5 billion towards Ditwa cyclone-related claims. In addition, a further LKR 4.7 billion was paid in claims across all other segments during the year, underscoring the Company’s financial strength and reliability in times of need.

The Company’s financial strength further consolidated during the year, with Total Assets growing by a significant 31% to LKR 13.38 billion, while Funds Under Management increased by 9% to LKR 6.74 billion. The Capital Adequacy Ratio remained well above regulatory requirements at 190%, reflecting a solid capital base to support future growth.