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Govt urged to take pragmatic view on debt management

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by Sanath Nanayakkare

If Sri Lanka has the right policy mix to effectively carry on with its debt rollover and to maintain a surplus in its current account, the country can demonstrate that it has entered a path of debt sustainability boosting confidence of the financial markets, Nishan de Mel, Economist- Verite Research said recently.

De Mel, an economist with extensive academic, policy, and private sector experience said so while speaking at a webinar organised by the Veemansa Initiative.

The webinar revolved round the topic ‘External debt situation in Sri Lanka: Are we heading for a resolution or crisis?, where Governor of the Central Bank Professor W. D Lakshman delivered the keynote speech at the virtual forum.

Speaking further de Mel said: ‘I beg to differ with the Governor that Sri Lanka doesn’t need assistance in this regard and can do this alone- if I heard that right. I understand the concerns that an IMF programme will involve conditions impeding our growth drivers. But we need to get our policy mix right and then we can show that we are effectively managing the debt rollover risk backed with a surplus in the current account. That will boost the financial markets’ confidence in our reserves. I think this is something we shouldn’t reject on ideological terms. We need to look pragmatically at how we can attract bridge-financing as well as reducing the cost of our debt. There may be an alternative approach, but we really need to look at the feasibility of managing our foreign debt stock in a way that it could move on a downward trajectory going forward”.

“We should not deplete our foreign reserves too quickly in the process of switching to domestic borrowings from foreign borrowings. We shouldn’t run the risk of markets losing confidence in the Sri Lanka rupee and its exchange rate in a scenario of depreciation affecting our ability to manage our debt stock. Low interest rates are important for Sri Lanka’s debt dynamics. The Central Bank has seized the opportunity arising from the pandemic to introduce a low interest regime. With low interest rates and a positive growth rate the government’s local debt stock could be well managed. Private credit growth is going to be the main driver in pushing interest rates upwards, so it has to be watched. If we keep our inflation and depreciation rates matched, we won’t have a very high level of risk perception. Then on the foreign debt side also Sri Lanka has a path of sustaining its debt,” he said.

Meanwhile, a First Capital research report issued on February 26, 2021 showed: Foreign reserves dipped by US$ 0.8 bn during the month of January 2021 to US$ 4.8 bn from US$

5.6bn in December 2020. Private credit increased by Rs. 25 bn in Jan 2021. Foreign activity showed net outflow of Rs. 3.1 bn in government securities over the past 2 months.



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HNB Finance bags 2 CMA Reporting Awards 2025

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Prof. Ho Yew Kee presents the award, while Rajeeva Bandaranaike hands over the certificate to the HNB Finance team. Featured (right to left): Thushara Jayasekara – Chief Manager / Head of Corporate Planning & Analytics; Randula Munindradasa – Assistant Manager Planning & Analytics; Sandakelum Jayathunga – Senior Manager – Financial Reporting; Maheshika Samarakoon – Manager – Strategy Implementation & Reporting

HNB Finance PLC has been honoured with two prestigious accolades at the CMA Excellence in Integrated Reporting Awards 2025, reaffirming the company’s commitment to transparency, good governance, and integrated business performance.

At this year’s ceremony, HNB Finance PLC was awarded Second Runner Up – joint in the category of “Best Integrated Report , Finance and Leasing Sector”, and also received a Merit Award in recognition of its continued efforts to enhance reporting quality and strengthen stakeholder communication.

The CMA Excellence in Integrated Reporting Awards, organised annually by the Institute of Certified Management Accountants (CMA) of Sri Lanka, acknowledge organisations that demonstrate superior financial reporting standards aligned with global best practices. Winners are assessed on key criteria such as financial performance and strategic management, corporate governance and compliance, innovation and digital transformation, sustainability practices, and professional excellence.

Chaminda Prabhath, Managing Director/CEO of HNB Finance PLC, commented on the recognition, “These awards reaffirm our commitment to upholding the highest standards of integrated reporting and transparent financial disclosure. At HNB Finance, we remain focused on delivering sustainable long-term value through robust governance frameworks, prudent financial management, and continuous innovation. The acknowledgement by CMA Sri Lanka reflects the disciplined efforts of our teams across the organization and motivates us to further enhance our reporting quality, strengthen ESG integration, and reinforce our stakeholder centric approach.”

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ComBank joins ‘Liya Shakthi’ scheme to further empower women-led enterprises

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Mithila Shyamini, Assistant General Manager – Personal Banking at Commercial Bank and Jude Fernando, Chief Executive Officer of the National Credit Guarantee Institution exchange the agreement in the presence of representatives of the two organisations

The Commercial Bank of Ceylon has reaffirmed its long-standing commitment to advancing women’s empowerment and financial inclusion, by partnering with the National Credit Guarantee Institution Limited (NCGIL) as a Participating Shareholder Institution (PSI) in the newly introduced ‘Liya Shakthi’ credit guarantee scheme, designed to support women-led enterprises across Sri Lanka.

The operational launch of the scheme was marked by the handover of the first loan registration at Commercial Bank’s Head Office recently, symbolising a key step in broadening access to finance for women entrepreneurs.

Representing Commercial Bank at the event were Mithila Shyamini, Assistant General Manager – Personal Banking, Malika De Silva, Senior Manager – Development Credit Department, and Chathura Dilshan, Executive Officer of the Department. The National Credit Guarantee Institution was represented by Jude Fernando, Chief Executive Officer, and Eranjana Chandradasa, Manager-Guarantee Administration.

‘Liya Shakthi’ is a credit guarantee product introduced by the NCGIL to facilitate greater access to financing for women-led Micro, Small, and Medium Enterprises (MSMEs) that possess viable business models and sound repayment capacity but lack adequate collateral to secure traditional bank loans. Through NCGIL’s credit guarantee mechanism, Commercial Bank will be able to extend credit to a wider segment of women entrepreneurs, furthering its mission to drive inclusive economic growth.

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Prima Group Sri Lanka supports national flood relief efforts with over Rs. 300 Mn in dry rations

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Defence Secretary Air Vice Marshal (Retd) Sampath Thuyacontha receiving the donation from Sajith Gunaratne - General Manager of Ceylon Agro Industries Limited, and Sanjeeva Perera - General Manager of Ceylon Grain Elevators PLC

Prima Group Sri Lanka has pledged assistance valued at over Rs. 300 million, providing essential Prima food products to support communities affected by the recent floods across the island. This relief initiative is being coordinated through the Ministry of Defence to ensure the timely and effective distribution of aid to impacted families.

As part of this commitment, Prima Group Sri Lanka donated a significant stock of Prima dry rations to the Government of Sri Lanka on 30 November. The consignment will be distributed across multiple severely impacted districts. These supplies will support families facing disruptions to daily life, ensuring they receive assistance as recovery efforts continue.

The handover took place at the Ministry, where the donation was received by the Secretary of Defence, Air Vice Marshal (Retired) Sampath Thuyacontha. Representing Prima Group Sri Lanka, Sajith Gunaratne – General Manager of Ceylon Agro Industries Limited, and Sanjeeva Perera – General Manager of Ceylon Grain Elevators PLC, officially presented the donation.

Prima Group has been standing with the people of Sri Lanka for over 40 years, and this donation reflects its broader commitment to the nation during challenging times. As relief operations continue across the island, the company remains focused on helping families rebuild their lives and supporting the ongoing recovery process in collaboration with the Government Authorities.

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