Business
Commercial Leasing and Finance and LOLC Finance amalgamation boosts CSE
by Hiran H.Senewiratne
CSE activities yesterday started on a positive note especially because of the much-awaited amalgamation of two major financial institutions, namely, Commercial Leasing and Finance and LOLC Finance. This gave a boost to the bourse’s momentum but later mixed reactions were indicated due to selling pressure in two major index heavy entities, Expolanka Holdings and LOLC Holdings, stock analysts said.
It is said that more than 95 per cent of companies have announced their quarterly results and most companies have reported positive earnings despite the current pandemic situation in the country as well as globally. This has positively impacted the investor.
Further banking sector counters indicated a price appreciation owing to positive earning hopes and dividend payments, stock market analysts said. The banking sector was the major contributor to the All- Share Price Index. Those banks were, Sampath Bank (28 points), Commercial Bank (13.8 points), HNB (9.4 points) and NDB (5.3 points).
Major negative contributors to the All- Share Price Index were LOLC Holdings (13.6 points), JKH (7.4 points) and Melstacorp (6.7 points).
Amid those developments both indices showed mixed reactions. All- Share Price Index went down by 12.42 points and S and P SL20 rose by 5.52 points. Turnover stood at Rs 3.8 billion with a single crossing. The crossing was reported in Renuka Hotel PLC, which crossed 2.3 million shares to the tune of Rs 198.5 million, its shares traded at Rs 93.
In the retail market seven companies that mainly contributed to the turnover were; Commercial Leasing and Finance Rs 772 million (15.6 million shares traded), LOLC Finance Rs 703 million (25.6 million shares traded), Browns Investments Rs 271 million (19.2 million shares traded), Expolanka Holdings Rs 219 million (691,000 shares traded), Sampath Bank Rs 182 million (5.2 million shares traded), Guardian Capital Partners Rs 167 million (5.2 million shares traded) and LOLC Holdings Rs 74.5 million (65,000 shares traded). During the day 133 million share volumes changed hands in 35000 transactions.
It said high net worth and institutional investor participation was noted in Melstacorp, JKH and LOLC Holdings. Mixed interest was observed in Expolanka Holdings, Sinhaputhra Finance and Softlogic Life Insurance, while retail interest was noted in LOLC Finance, Commercial Leasing & Finance and Browns Investments.
The foreign sales so far this year has been Rs 3.4 billion. In 2021, the Sri Lanka stock market suffered a net foreign outflow of Rs 50 billion. Analysts had predicted that economic concerns would drag the market from time to time until the government finds a sustainable solution to the country’s looming debt crisis.
Yesterday, the US dollar rate was quoted at Rs 202.27, which was the controlled price of the Central Bank. The Central Bank has imposed a ceiling of Rs 203 per US dollar. However, financial market sources revealed that the actual price of a US dollar would be more than Rs 250. Former Prime Minister Ranil Wickramesinghe predicted at a forum that the US dollar rate would likely go beyond Rs 300 towards the end of the year.
The total outstanding market liquidity surplus or excess funds available in Sri Lanka’s banking system for lending and transactions declined by Rs. 36.65 billion in a week, according to the Central Bank’s latest economic indicators report.
An economic researcher analysing the data noted: “Treasury bill and bond auctions likely drained liquidity. If this tightening persists, short-term interest rates could rise, raising borrowing costs and potentially slowing economic growth. The situation warrants close monitoring, especially as the manufacturing sector is already facing a slowdown whether due to seasonal or structural factors.”
The report also highlighted the following developments in Sri Lanka’s economy:
Fiscal improvements: The deficit has narrowed but remains elevated.
Sectoral trends: The stock market rallied, and the services sector showed slower expansion (tourism, retail and IT driving resilience).
Total expenditure and net lending increased to Rs. 1,301.9 bn during the three months ending March 2025 compared to Rs. 1,197.5 bn in the corresponding period of 2024.
During the three months ending March 2025, the overall budget deficit decreased to Rs. 234.5 bn compared to Rs. 281.3 bn recorded in the corresponding period of 2024
The rupee value of T-Bills and T-Bonds held by foreign investors decreased by 2 per cent in comparison to the previous week.
“The April 2025 industrial slowdown points to weaker output, likely due to seasonal factors such as holidays or subdued demand. However, this was partially offset by an expansion in the Services PMI, offering some relief. The broader economic outlook for Sri Lanka remains uncertain, as these mixed signals unfold as Sri Lanka would receive a tariff letter from the US in the coming weeks. With market liquidity already tightening due to government borrowings from the banking system, policymakers face mounting challenges in balancing growth and stability,” the economic researcher noted.
By Sanath Nanayakkare
AIA Sri Lanka’s ‘Pawfect Match’ campaign, in partnership with animal welfare groups, inspired 500+ adoptions of stray pets. The initiative highlighted adoption, responsible ownership, and compassion, tackling Sri Lanka’s stray animal crisis. AIA thanks all supporters for their life-changing impact.
The campaign served as a reminder that even small acts of kindness like adopting a stray can make a big impact. It also provided an opportunity for the public to learn more about responsible pet ownership, animal rights, and the importance of compassion toward all creatures.
Calton Sweet House Pvt. Ltd., a key part of Calton Group, was honored as the Best National Industry Brand in the Medium-Scale Food and Beverage Sector at the National Industry Brand Excellence Awards 2024, organized by the Industrial Development Board. Deshamanya Mahesh De Silva, Director of Finance and IT at Calton Group, accepted the award.
Established in 1991, Calton Sweet House has over 30 years of excellence, specializing in cakes, snacks, and frozen bakery items, with 20+ outlets across Negombo, Katunayake, and Colombo, including at Bandaranaike International Airport. The company holds ISO, HACCP, and GMP certifications, ensuring top-quality standards.
Starting as a small store in 1983, Calton Group now employs 300+ staff and operates multiple businesses, including Calton Hyper Market and Calton Catering, while partnering with global brands like Unilever and Upfield. The group remains committed to serving customers with high-quality, safely packaged food products.
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