Business
Fitch publishes Lakdhanavi first time AA+ rating, Outlook Stable
Power producer Lakdhanavi’s rating reflects LTLH’s leading market position in the country’s power sector
Fitch Ratings has published Sri Lanka-based power producer Lakdhanavi Limited’s first-time National Long-Term Rating of ‘AA+(lka)’. The Outlook is Stable.Fitch rates Lakdhanavi based on the consolidated profile of the parent, LTL Holdings (Private) Limited (LTLH), due to the strong legal and operational linkages between the two entities, as defined in our Parent and Subsidiary Rating Linkage Criteria.The rating reflects LTLH’s leading market position in the country’s power sector, stable cash flow generation stemming from fixed long-term operation and maintenance (O&M) contracts and power purchase agreements (PPAs), strong EBITDA margins offset by the small operating scale of its business segments other than O&M and power generation, which are inherently more volatile.The rating also reflects Fitch’s assessment that the group will maintain an adequate financial profile with EBITDA/interest coverage (including proportionate consolidation of subsidiaries Lakdhanavi Bangla Power Limited (LBPL: 51%) and Feni Lanka Limited (Feni: 56%) above 2.5x over the rating horizon.”We view the operational and legal linkages between Lakdhanavi and its weaker parent, LTLH, to be strong under our Parent and Subsidiary Rating Linkage Criteria. The linkages include LTLH’s strong control over Lakdhanavi’s board, presence of a centralised treasury, unrestricted cash flow fungibility between the two entities and upstream guarantees provided by Lakdhanavi”.”We view LTLH’s links with its parent, Ceylon Electricity Board (CEB, AA+(lka)/Negative), to be weak and rate it on a standalone basis. Even though CEB controls LTLH’s board, the presence of minority shareholders, LTLH’s independent management team, separate financing arrangements and LTLH’s record of no cash leakages other than modest dividends after considering its investment plans supports our view of weak linkages. Fitch believes CEB has limited incentive to access LTLH’s cash beyond dividends because of the latter’s small size; any large outflows will be negative for Lakdhanavi’s rating,” Fitch said.
Business
First multi-stakeholder initiative on Child Rights in Tourism launched in Sri Lanka
On World Tourism Day, representatives from leading hotel businesses, tourism associations, NGOs, and government departments convened in Colombo to officially launch the Mother and Child-Friendly Seal for Responsible Business in Tourism. This pioneering initiative, the first of its kind in Sri Lanka, brings together key actors from the tourism supply chain to enhance the well-being of children and families connected to the sector through long-term, continuous actions.
The launch comes on the heels of a new study by The Centre for Child Rights and Business in partnership with Save the Children, highlighting serious child rights risks in Sri Lanka’s tourism industry. The study identifies key challenges such as sexual exploitation, child labour, and educational disruptions, driven by factors like inadequate regulation of guesthouses and homestays, the absence of child safeguarding measures among tourism providers, and a lack of formalised pathways to decent work for youth.
This event marks a significant milestone in the expansion of the Mother and Child-Friendly Seal, which has already seen success in Sri Lanka’s tea sector, with seven major plantation companies and exporters committing to initiatives that improve the welfare of tea communities. The extension of this Seal to the tourism sector is timely, as Sri Lanka prepares to welcome over 3 million tourists by 2025, positioning the industry to align with global human rights due diligence regulations and the growing demand for ethical tourism.
At the launch, stakeholders engaged in practical discussions about the child rights risks facing the tourism sector and explored collective solutions. Issues such as the outmigration of mothers and its impact on children were brought up, with participants offering valuable insights into areas for Seal members to address.
The panel discussed the critical issues that women and children face in the travel and tourism industries and some of the priorities and opportunities that the industry could address.
“Young children often do not realise they are being exploited. Providing a safe and respectful environment for them should be our primary goal. We must consider the risk factors in these scenarios, as there is currently no data to support issues in tourism, such as trafficking and exploitation. While problems like festival tourism have existed, they have increased since COVID-19 and have been exacerbated by the economic crisis,” said Buddhini Withana, Senior Technical Advisor Child Protection and Child Rights in Business, Save the Children.
Irstel Janssen, Director, Sustainable Sri Lanka added: “10% of women are working in this sector due to social stigma, safety concerns, and harassment. The economic crisis has forced women to step into this industry, but they are not employed in roles that match the nature of the work. The Seal initiative is an important step to address these issues and encourage more women’s participation.”
One of the highlights of the event was a keynote speech delivered by Cinnamon Hotels, where they underscored their commitment to protecting women and children. The company outlined key initiatives, including robust policies to support the female workforce, a zero-tolerance stance on misconduct, and a comprehensive sexual harassment policy. Cinnamon Hotels also conducts awareness sessions to educate staff about these policies, provides parental leave, and offers 100 days of paternity leave. Additionally, the company places a strong emphasis on mental health benefits for all employees. Their efforts served as an inspiration for other accommodation providers, offering practical steps to strengthen child safeguarding and empower women in the tourism sector.
For more information about the Mother and Child-Friendly Seal for Responsible Business, visit srilanka-motherandchildseal.org or contact info.SL@childrights-business.org.
Business
‘Brandix – A Great Place to Work for Women’
Sri Lanka’s premier apparel solutions provider, Brandix, was recognized as one of Sri Lanka’s Most Outstanding Women-Friendly Workplaces at the Satyn Magazine Women Friendly Workplace Awards (WFWA) 2024. Initiated by CIMA Asia, the American Institute of Certified Public Accountants (AICPA) and Satyn Magazine, the accolade recognizes and celebrates organizations committed to gender equality and women empowerment. Senior General Manager Human Resources at Brandix, Dinusha Jayamanne, said Brandix is ‘constantly exploring new avenues to create a more inclusive and enriching environment for its female workforce, and the company stands proud of the pioneering initiatives it launched in this sphere.’ The latest award is a testament to the impact of these measures implemented across Brandix facilities in Sri Lanka and the world.
Business
“Helmet – If you love” ~ UN/ FIA Road Safety Programme
Automobile Association of Ceylon conducts Road Safety programmes annually with the funding of FIA under UN Decade of Action 2021/2023 in Sri Lanka. This year’s campaign is ‘Helmet – If you love’; to educate public on the importance of children wearing helmets when travelling as pillion rider on motorcycles.
The aim of the programme is to educate children, parents, teachers, motorcyclists, etc. on the importance of children wearing helmets, not to simply abide by law, but to keep the safety factor in mind.
In line with World Children’s Day celebrations, Automobile Association of Ceylon (AA) together with Optimum Q Event Management Pvt Ltd. Is conducting awareness programmes at schools (drop off points), where parents drop their kids to school in Motorcycles.
It is being carried out together with teachers, police officers and school children, who deliver the message to parents and educate them on the importance of their children wearing helmets.
Parents who arrived with their children wearing helmets were rewarded with supermarket vouchers and encouraged their efforts towards safeguarding their kids.
Whereas parents who arrived without helmets for their children were educated by other children, who handed them balloons and explained to them that their child’s heads is as fragile as the balloon, in the face of a road accident. All parents understood the gravity of the situation, especially when pointed out the facts by other children in school.
Furthermore, some children were randomly picked and awarded with helmets at the school assembly/ interactive education session conducted by Devapriya Hettiarachchi, Secretary,AA Ceylon and S I Kariyawasam, Sri Lanka Police Headquarters. Teachers, children and parents were made aware of the acceptable safety characteristics of a helmet with the SLS standard and how to wear them properly.
All children, teachers and Principals seemed enthusiastic about the programme, as it is part of a subject that is taught to children at school. The children who took part in educating the parents at the drop off point were also awarded with gift vouchers for their efforts to spread the message to their fellow students’ parents.
The event was concluded with a Thank you speech by one of the school’s prefects.(AAC)
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