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CSE capital-raising in 2021 reaches record high of Rs. 124 billion

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CSE chairman Dumith Fernando

By Hiran H.Senewiratne

A buoyant CSE in 2021 saw capital- raising increasing to a record Rs. 124 billion. The previous highest, in a 10-year time span was in 2018, amounting to Rs. 105 billion, CSE chairman Dumith Fernando said.

“Last year, of the capital raised, a record Rs. 84.4 billion was via debt and Rs. 39.4 billion in equity. The CSE also saw 28 new listings, including 14 debt IPOs and 13 equity IPOs, Fernando told the media while announcing the CSE’s achievements in 2021 and its proposed plans to be implemented in 2022. The event was held at Hotel Taj Samudra last week.

Fernando said that in 2021, the market had its best year, in terms of ASPI gaining 80.5 per cent and the S&P SL20 improving by 60.5 per cent. Market capitalization also reached a 10-year high of 36.7 per cent of GDP or Rs. 5.5 trillion from 19.7 per cent in 2020 or Rs. 2.96 trillion and 34.5 per cent in 2010 or Rs. 2.2 trillion.

“With proactive efforts by both the CSE and the Securities and Exchange Commission (SEC), especially digitization initiatives, the Colombo stock market saw active local investor participation, the CSE chairman said.

The active investor base rose to 63,000 as opposed to the target of 50,000, while the number of new accounts was 37,000, higher from 2020 but fell short of the target of 50,000, he added. Fernando also said the CSE more than doubled turnover to Rs. 4.9 billion per day.

Amid those developments, CSE trading activities were positive throughout the day and at certain times the index reached the 200 level. Most of the blue- chip counters witnessed fresh buying interest and prices in most of them appreciated during the day, stock market analysts said.

Both indices moved upwards. The All- Share Price Index went up by 125 points and S and P SL20 rose by 63.5 points. Turnover stood at Rs 7.1 billion with two crossings. Those crossings were reported in TJ Lanka, which crossed 2.5 million shares to the tune of Rs 139 million and its shares traded at Rs 52 and LOLC Finance 3.9 million shares crossed to the tune of Rs 111 million, its shares traded at Rs 28.

In the retail market top seven companies that mainly contributed to the turnover were, Vallibel One Rs 582 million (six million shares traded), Expolanka Holdings Rs 557 million (1.4 million shares traded), Softlogic Capital Rs 454 million (3.5 million shares traded), Browns Investments Rs 318 million (18.7 million shares traded), Chevron Lubricants Rs 263 million (2.1 million shares traded), Central Finance Rs 254 million (2.3 million shares traded) and Hayleys Rs 240 million (1.6 million shares traded). During the day 256 million share volumes changed hands in 61000 transactions.

Yesterday the US dollar was quoted at Rs 202.45, which was the Central Bank controlled price. However, in the open market the dollar rate exceeded the Rs 250 level, sources said.



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Manudam Mehewara Initiative by Dialog, MAS, Hemas & CBL reach 10,000 families, invites all corporates to Join its countrywide emergency relief mission

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Emergency relief is currently being distributed across all 25 districts

In a mission to provide emergency relief to the most vulnerable communities across the country amidst the ongoing economic crisis, the ‘Manudam Mehewara’ initiative reached its first milestone of aiding over 10,000 families in-need.

 Joining hands with like-minded partners including its execution partner Sarvodaya Shramadana Movement and independent auditor PwC Sri Lanka, Manudam Mehewara was initiated by Dialog Axiata PLC, MAS Holdings, Hemas Holdings PLC, and CBL Group with the end goal of providing emergency support to over 200,000 vulnerable families and communities across the country that do not have access to essential supplies and basic necessities. ITN, Siyatha, Swarnawahini, TV Derana and Vasantham are also supporting the initiative as media partners.

Emergency relief is currently being distributed across all 25 districts, and the Manudam Mehewara programme will conduct its relief efforts until a sustainable benefit transfer system is established through an effective recovery plan. Manudam Mehewara invites all corporates to join our shared mission to support over 200,000 vulnerable families across Sri Lanka.

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Ninewells Hospital raises awareness on thyroid disease in newborns to commemorate World Thyroid Day 2022

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Ninewells Hospital, Sri Lanka’s leading woman and childcare hospital in the private sector, commemorates World Thyroid Day on 25th May by emphasising the significance of early detection and treatment of Congenital Hypothyroidism among newborns in Sri Lanka.

Congenital hypothyroidism (CHT) is a condition affecting infants from birth, and refers to an absent thyroid gland or a thyroid gland that is present but is unable to produce adequate thyroid hormones. On average, 1 in 4,000 babies are born with a severe form of CHT in Sri Lanka, while milder forms can be seen more commonly. If left untreated, the condition can affect brain development as well as normal growth in children and adolescents. Conversely, if detected and treated early, the damaging effects of CHT can be reversed and prevented completely.

“As Sri Lanka’s leading private sector childcare health service provider, we want to draw attention to the serious implications of Congenital Hypothyroidism on World Thyroid Day this year. Congenital Hypothyroidism is a condition which has a detrimental impact on postnatal development. For this reason, early detection and treatment is vital and should ideally begin within the first two weeks after birth,” said Dr. Vibash Wijeratne, Chief Operations Officer and Director, Ninewells Hospital.

In 2021 Ninewells Hospital unveiled a Thyroid-Stimulating Hormone (TSH) testing facility to support Sri Lanka’s national program for screening newborns for CHT and the country’s vision for a healthier population. Since then, the hospital has carried out over 8,000 tests in 2021 and over 2,000 tests between January and May of 2022.

With the unveiling, Ninewells Hospital became the first in the private sector to introduce a TSH screening machine and became one of the only two hospitals in the country to offer this screening service.

“The screening for CHT is a simple process that is performed using a heel prick test. At Ninewells, the test report following the screening is issued within a short span of three days which is unprecedented in the country. This allows healthcare providers to begin immediate treatment to avoid development impediments in newborns and infants,” Dr. Wijeratne also said.

Ninewells Hospital is Sri Lanka’s premier women’s and children’s hospital in the private sector, providing a variety of specialty services such as Obstetrics, Gynaecology, Paediatrics, and Fertility. The hospital, which is backed by the Access Group of Companies’ visionary leadership, continues to push boundaries and raise the bar for women’s and children’s healthcare in Sri Lanka.

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SL plunges into worst economic contraction in the wake of dramatic currency collapse – CBSL Governor

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By Hiran H.Senewiratne

Sri Lanka will witness the worst economic contraction in its history, as it reels from a currency collapse of the rupee from 200 to 370 to the US dollar and interest rates contracted above 20 per cent, Central Bank Governor Dr. Nandalal Weerasinghe said.

“Sri Lanka is going through severe fuel shortages and power cuts after the credibility of a soft-peg was broken by mis-targeted interest rates in the course of targeting an output gap (printing money to boost growth) under the Keynesian ideology, Weerasinghe said while addressing the Press Club of the Sri Lanka Press Institute. The event was held at the Colombo Hilton on Monday.

Weerasinghe added: “At this juncture we cannot make normal imports for the next three to six months. Industries are saying there is no raw material. Only essential imports can be made on a priority basis in order to maintain day- to- day activities.

‘Sri Lanka’s economy contracted 3.6 per cent in 2020 amid the Coronavirus crisis and it also contracted 1.5 per cent in 2001, after a soft-peg crisis amid a civil war.

‘The latest failure of the unstable peg with the US dollar came after the Central Bank printed over two trillion rupees over two years to mis-target interest rates, leading to a steep collapse of the currency and a correction of the interest rates back to around 20 to 25 per cent.

‘The economic crisis has also spilled over into a political crisis and social unrest.

‘The rupee’s 2022 fall to 380 to the US dollar from 200 to the dollar is the worst currency crisis created by the soft-pegged Central Bank in its 72- year- old history.

‘The money printing Central Bank created its first economic crisis and output shock in 1953, bringing down growth to 0.7 per cent after triggering a now famous “hartal”.

‘An Exchange Control Act was also enacted in 1952 as the printed money from the newly set up Central Bank scrambled to go out, in a phenomenon that was repeated multiple times over the next 70 years and dragged the country into 16 IMF programs.

‘The unstable Central Bank was set up by a US money doctor in 1950 in the style of Argentina’s BCRA, abolishing a Currency Board that had kept the country stable through two World Wars and the Great Depression, where money printing above the external anchor was outlawed.

‘The worst recorded crises in the country include the 1948 uprising against the then colonial administration which took place after the British railway bubble burst, commodity prices fell and the then colonial government upped taxes. However, there is no information on the economic contraction that year.

‘Sri Lanka’s citizens burnt the houses and property of the elected ruling class on May 9, after the unstable peg collapsed in a botched float where interest rates were not allowed to go up before the float and a surrender rule pushed the rupee down.

‘Interest rates were allowed to go up after my appointment as CBSL Governor and the economy is now slowing and the headlong crash of the rupee peg has slowed.’

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