Gearing for one-of-a-kind production in the region
• 80% of production to be exported
• Combines local talent with European technology
• More focus on building tyres for SUVs
by Sanath Nanayakkare
Southeast Asia’s largest tyre manufacturing facility – Ferentino Tyre Corp in Wagawatte Export Processing Zone in Horana is scheduled to be opened by President Gotabaya Rajapaksa on Friday- January 14.
Ferentino Tyre Corporation (Pvt) Ltd is a venture facilitated by the Board of Investment of Sri Lanka (BOI) which consists of state-of-the-art European technology optimised to deliver substantial production volumes.
Estimated at US$ 250 Million, the project’s Phase 1 has been completed while Phase 2 is slated to be completed and ready for commissioning in March 2021.
Ferentino Tyres is the brainchild of well-known entrepreneur and Chairman of Ceylon Steel Corporation Nandana Lokuwithana.
“I am excited about the project as I’m confident it will serve to bolster the economy by way of boosting export revenue as well as generate many new occupational opportunities. We also intend to source our entire requirement for rubber locally thereby empowering the rubber farmers. This project is certainly a win-win for all parties involved,” Lokuwithana said.
The landmark project is one of a kind in Sri Lanka and is tipped to be the largest such facility in the whole of Southeast Asia manufacturing Passenger Car Radials (PCR) including specialised category for SUVs, two-wheelers, three-wheelers, trucks, buses and solid tyres seamlessly combining local talent with sophisticated European technology.
The export-oriented manufacturing plant with its impressive production capacity is expected to bolster the economy by revitalizing exports at this decisive juncture supporting the government’s efforts to bolster foreign reserve levels in the face of external challenges. It is also expected to create thousands of new job opportunities, both directly and indirectly.
Chairman of Ferentino Tyre Corporation (Pvt) Ltd is a businessman of international repute heading ONYX Group in the UAE, Mariott Al Jaddaf Hotel in Dubai and the upcoming state-of-the-art cement factory in Mirijjawila, Hambantota valued at USD 75nn.
Speaking about the Ferentino projects he said,” The first phase of the project worth US$ 100 million is an investment done on our own 100% in an extent of 160 acres. The second phase worth US$ 150 million will be done with a partner and negations for this are underway”.
When ‘The Island Financial Review‘ asked what he felt about being a controversial figure some years ago as someone drew strong criticism and opposition towards his work he said,” Well, that was earlier when they had not understood me and my work correctly, and without knowing me well they gave their versions of me”.
Ferentino Executive Director Dhammika Lokuwithana thanked the government and the BOI for helping to bring the vast area of marsh to its present level within a period of three and a half years for the export-oriented company to operate in.
HNB partners with Gammadda to develop Yaya 6 village in Anuradhapura
HNB PLC recently signed a Memorandum of Understanding with The Capital Maharaja Group’s initiative Gammadda Sri Lanka, the country’s largest rural development movement to develop infrastructure facilities of the Yaya 6 village Mahawilachchiya, in the Anuradhapura District.
The project is powered by HNB’s exclusive private banking proposition, The Club HNB, with the goal of engaging members and in opportunities for focused, impactful philanthropy.
A special event was hosted at The Club HNB premises on Greenpath which was attended by special guests from Yaya 6, Gammadda News 1st team and exclusive invitees of The Club HNB, during which HNB Managing Director/ CEO Jonathan Alles and Capital Maharaja Group Director Chevaan Daniel inaugurated the partnership with the signing of a Memorandum of Understanding.
“Rural communities form the backbone of this nation, therefore, HNB is proud to partner with the Capital Maharaja Group to support their ambitious and vital work under the Gammadda initiative. We are also grateful to The Club HNB membership and our branch network for once again stepping forward and contributing generously towards the upliftment of rural communities across Sri Lanka,” Alles said.
Providing access to clean drinking water is the 1st step in the agenda and a RO plant will be installed under the first phase of the development project. This will not only save lives but also prevent Chronic Kidney Disease (CKDu) prevalent in the region.
A new fully furnished library and computer lab will be just two other infrastructural additions to the village school Saliyamala Vidyalaya Pemaduwa, in addition to new washrooms which are to be constructed for the students and staff members. The project also entails renovation and refurbishment of the main road, the village temple, cleaning of the agrarian tank and construction of a new community hall under the initiative.
“It has been amazing working with HNB to achieve our mutual goal of providing Yaya 6 with much-needed infrastructure facilities. This project would not have been possible if not for the HNB customers, who came forward with their generous contributions to help this village in need. Therefore, I would like to take this opportunity to thank everyone of you who made this possible,” Capital Maharaja Group Director Chevaan Daniel said.
Notably, acclaimed Sri Lankan pianist and music director Soundarie David’s composition of ‘Stand up and be the change’, that was created to help raise funds and create awareness about the project was performed at the event by Soul Sounds with music provided by Ranga Dasanayake at the event.
Editor-in-chief and founder of ARTRA magazine Azara Jaleel, who was also present at the event, auctioned off a painting from the ARTRA Canvas collection to The Club HNB members in aid of the project.
“I am happy to be here today, where two great institutions have come together for this great cause. We are fortunate as customers to be able to contribute in any way possible, and we hope to join you in visiting Yaya 6 soon,” a valued Club customer,Mrs Niloo Jayatilleke said.
Those who wish to make a contribution to the initiative can make a payment via HNB SOLO, through a direct payment on the payment app or deposit funds to the account titled ‘We are the change’, account number: 005010173025.
With 252 customer centres across the country, HNB is one of Sri Lanka’s largest, most technologically innovative banks, having won local and global recognition for its efforts to drive forward a new paradigm in digital banking. Over the recent past, the bank was ranked among the World Top 1,000 Banks list compiled by the prestigious UK-based Banker Magazine. HNB has a national rating of AA- (lka) by Fitch Ratings (Lanka) Ltd.
HNB was also declared Best Sub-Custodian Bank in Sri Lanka at the Global Finance Awards 2020, in addition to winning the coveted Best Retail Bank in Sri Lanka Award for the 11th time at the Asian Banker Awards 2020, in recognition of its sustainable growth and continuous improvements in processes, products and services amidst a challenging macroeconomic environment.
The Finance Houses Association announces revision of Self-Regulation Code
The Finance Houses Association of Sri Lanka (FHA) the apex body of all Registered Finance companies has announced the introduction of its revised Self-Regulation Code which has been voluntarily practised by member companies over a long period of time, but has to be adapted to changing times.
The timely revisions to the Code were effected with a view to maintaining the highest standards on strategic and business operations in Sri Lanka’s Non-Banking Financial and Leasing Institutions (NBFI) sector.
The FHA collective of 39 Licensed Finance Companies (LFCs) is the driver of financial inclusion of Sri Lanka’s MSME sector which has a large footprint in the Bottom of the Pyramid segment of the country. The MSME sector is no less than the backbone of Sri Lankan economy involving over 70% of businesses in Sri Lanka, providing employment for 45% of the labor force and generating 52% of GDP.
Titled “Code of Conduct of Licensed Finance Companies Sri Lanka” the updated instrument was handed over to the Governor of Central Bank of Sri Lanka Prof. W. D. Lakshman and Bank’s officials by FHA Council members on March 18 at the Central Bank premises.
Niroshan Udage, chairman of FHA elaborated: “FHA’s time tested gentlemen’s agreement that was codified some time ago needed revisions and updates as per the requirements of today’s changing times. The overall objectives of updating the Code were to comply to all current regulatory and legal requirements while adhering to industry best practices. We take humble pride in the fact that the Code was not imposed on our sector by any authority but was self-introduced by all FHA members on their own will, which demonstrates the members’ strong commitment to sectoral integrity and their social responsibility.”
On March 18 members of FHA also handed over their Sustainability Mandate to the Governor of Central Bank Prof. W. D. Lakshman and top officials of the Bank. “The purpose of the Sustainability Mandate is to serve as the guideline for the LFCs to integrate sustainability principles holistically into their businesses, enabling sustainable value creation through their own financing approaches, in line with defined sustainability guidelines that would ultimately contribute towards national sustainability agenda and UN Sustainable Development Goals” said chairman Niroshan Udage.
‘CSE to bounce back, provided Corona-19 is held in check’
By Hiran H.Senewiratne
The CSE was, once again, somewhat sluggish yesterday on account of investor fears over a possible Covid-19 third wave, but the expectation in some sections that May corporate earnings will be exceptionally good had an uplifting impact on the market during the latter part of the day. The CSE could be expected to bounce back, top stock market analysts said.
” CSE will bounce back within the next few weeks if the Covid 19 new wave does not impact the global scenario, Head of Sales, Softlogic Stockbrokers (Pvt) Ltd. Eardley Kern told ‘The Island Financial Review’.
He said that the upcoming quarterly corporate earnings will likely be among the best in recent times and this would enable the market to perform in a positive way.
Windforce Ltd., the renewable energy firm, began trading above its price of Rs. 16 per share yesterday after raising Rs. 3.2 billion for wind power projects in Sri Lanka and Senegal. It contributed more than 28 percent to market turnover from its IPO, Kern said
Windforce stocks fetched Rs. 17.90 initially and rose to as much as Rs. 19.00 in intra-day trading, after being heavily oversubscribed, but settled at Rs. 18, which was an increase of Rs. 2.40 or 15 percent.
Amid those developments, both indices moved downwards. All Share Price Index declined by 105.53 points and S and P SL20 went down by 47.08 points. Turnover stood at Rs. 2.61 billion with two crossings. Those crossings were reported in Windforce, which crossed 7.2 million shares to the tune of Rs. 131.6 million; its shares traded at Rs. 18.50 and Sampath Bank 400,000 shares crossed for Rs. 20.4 million; its shares fetching Rs. 51.
In the retail market, five main contributors to the turnover were, Windforce Rs. 738 million (40.3 million shares traded), Browns Investments Rs. 281.5 million (44.6 million shares traded), Dipped Products Rs. 195 million (3.4 million shares traded), Piramal Glass Rs. 126.4 million (11 million shares traded) and Hayleys Rs. 113 million (1.5 million shares traded). During the day 139.3 million share volumes changed hands in 19927 transactions.
“The indices exhibited significant volatility during the early hours of trading and witnessed a continuous downwards movement during the whole session but Windforce gave some notable impetus to the market yesterday, analysts said.
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