Asks bankers to introduce attractive deposit products to promote savings

By Sanath Nanayakkare

As saving money has become more crucial than ever with an increasing ageing population in Sri Lanka, Dr. Nandalal Weerasinghe, the Governor of the Central Bank of Sri Lanka (CBSL) yesterday urged the banking sector to introduce innovative solutions to promote savings despite the prevailing low-interest rate environment.

He pointed out that savings that lead to increased capital stock would also help embed elements of liquidity and safety to compensate for interest rate volatilities during business cycles.

“The culture of saving at an earlier stage of life should be nurtured, which will not only promote long-term savings but also will ensure greater financial security for a better life after retirement,” he said.

He made these remarks while unveiling the Central Bank’s policy agenda for 2025 and beyond.

Referring to interest rates, private credit and deposits, Dr. Weerasinghe said:

“The recovery in credit to the private sector has been supported by the noteworthy reduction in market lending interest rates. However, the Central Bank observes some excessive, outlier rates of interest on facilities extended to Micro, Small and Medium Scale Enterprises (MSMEs) as well as marginal borrowers and certain credit products, which are not consistent with the prevailing relaxed monetary policy stance. Moreover, risks associated with lending are on the decline while the credit appetite of banks and financial institutions is improving given the overall stability and recovery witnessed in the economy. Therefore, with a view to making the low interest rate credit accessible, the Central Bank will closely work with banks and other financial institutions to reduce the excessive interest rates still prevalent in the market.”

‘’While low interest rates have helped revive credit and contributed to improving the overall business sentiment, they could also disproportionately hurt savers. However, unlike during the high inflation episode, real returns on deposits have been positive, with inflation successfully being reined into low levels. Interest rates have their cycles, and the Central Bank will manoeuvre interest rates to ensure that inflation is kept low and stable with a view to promoting overall public welfare.”

Fusion Apparel (Pvt) Ltd, the joint venture of Brandix signed an agreement with the BOI. The initial investment is worth U$ 1.06 Mn. This new project aims to provide a much-demanded, technology-driven manufacture of glue-bonded garments. Looking at today’s technical outerwear, performance wear, and intimate garments, it is easy to see the evolution—innovative performance, enhanced usability features, and increased durability, Therefore, the technology and supply chain plays a crucial role in enabling this evolution.

Fusion Apparel works with major international brands, making it a must to address the growing demand for these global brands. The demand for glue bonding services among BOI export-oriented companies is increasing, prompting Fusion Apparel to strategically invest in this technology-driven venture. This project further enhances technology learning for the industry and provides 100 employment opportunities.

This joint venture will yield unparalleled benefits not only for Brandix and Fusion Apparel but also for the industry as a whole. Brandix has been a leading force in the apparel industry in Sri Lanka for over four decades, serving as a virtual training ground for industry leaders. Brandix consistently develops industry-defining technology and best practices, with Fusion Apparel serving as another significant milestone in this ongoing evolution.

Fusion Apparel introduces glue bonding, a next-generation technology that not only eliminates traditional sewing in garments but also enhances the performance of apparel. By using specialized adhesives, this method ensures seamless finishes, greater durability, and enhanced comfort for wearers. The uniqueness of glue bonding is that liquid glue provides a high level of efficiency and scalability in manufacturing sew-free products. Its consistent application enhances production quality, resulting in better-finished goods. Additionally, glue bonding improves the modulus of base fabrics, making it suitable for a wide range of performance apparel, meeting both aesthetic and functional requirements.

Leaf Lanka International (Pvt) Ltd, a visionary company led by the young entrepreneur Mr. Hashan Gunathilaka, is set to redefine luxury hospitality in Sri Lanka.

The company has recently acquired a 17-acre property in Matale and has embarked on an ambitious $6 million USD project to develop an eco-luxury chalet retreat. This strategic move, backed by Maldivian investors, signifies a significant leap in Sri Lanka’s tourism sector. The project aims to offer a unique blend of opulence and sustainability, providing guests with an unforgettable experience immersed in the natural beauty of the Matale region. Mr. Gunathilaka’s entrepreneurial spirit and commitment to sustainable development are at the heart of this venture. The eco-luxury chalet retreat will incorporate cutting-edge eco-friendly technologies and practices to minimize its environmental impact. As the project progresses, it is expected to create numerous job opportunities and contribute to the economic growth of the region. Leaf Lanka International (Pvt) Ltd is poised to elevate Sri Lanka’s tourism industry to new heights with this ambitious endeavor..