Business
HNB Group posts Rs. 8.8bn in PAT during first nine months of 2020
Hatton National Bank PLC (HNB) reported Profit After Taxes (PAT) of Rs. 7.7Bn for the first nine months of 2020, while the Group recorded a PAT for Rs. 8.8Bn for the same period.
Commenting on the performance, Dinesh Weerakkody, chairman of HNB stated that, “Sri Lanka managed the first wave of the pandemic commendably. However, as the situation continues to evolve globally, we as a nation are currently at a crucial juncture once again. Despite the significant challenges brought about by the pandemic, HNB continued to demonstrate strength, stability and resilience. The recent unprecedented two notch downgrade of the Sovereign rating by Moody’s has been a further setback. In this backdrop, I’m happy to note that HNB was able to conclude a long term loan agreement of USD 60Mn with the French Development Financing Institution, Proparco to support the SME sector of Sri Lanka”.
The monetary easing adopted post the pandemic has led to a 400bps drop in AWPLR since the beginning of the year. The Interest Income of the Bank declined in line with the drop in interest rates to Rs. 79.6 Bn, by 8.7% YoY in comparison to the corresponding period of 2019. Interest Expenses of Rs. 45.8 Bn represented a 7.3% YoY drop from last year, resulting in a Net Interest Income (NII) of Rs. 33.8 Bn which was 10.6% lower compared to the first nine months of the previous year.
The impact of COVID-19 continued to hamper the Net Fee and Commission income which declined by 18.9% YoY to Rs. 5.4 Bn as a result of the restrictions placed on imports, low volume of foreign card transactions, removal of certain charges as part of CBSL initiated COVID relief scheme and low level of economic activity etc. However, the Bank witnessed an encouraging increase in income from digital products and platforms with customers shifting to digital channels under social distancing and health guidelines.
Expressing his views on the performance of the Bank, Jonathan Alles, Managing Director / CEO of HNB stated that, “Our country was moving in a positive trajectory over the last few months, until the second wave struck us, however, this has been a common phenomenon across the world. Therefore, it is important to provide the necessary support to drive grass root revival and adapt to the ‘new normal’. As of September, HNB has provided moratoriums to over 85,000 customers and processed working capital finance amounting to over Rs. 24Bn to COVID affected businesses under the CBSL Saubhagya schemes. Over the past two years, the banking sector of Sri Lanka, has stepped in to support distressed sectors, providing necessary financial assistance as our country underwent, multiple shocks. At this critical point in time as a responsible D-SIB, HNB will once again stand by its loyal customers, to ensure that they come out of this crisis successfully. We strongly believe that the authorities will introduce sustainable, long term solutions and more stable alternate funding options to support the most vulnerable segments of our economy”.
He added that “We are cognizant of the tough road ahead of us, however we remain optimistic of the revival of our economy and the time taken for recovery would depend on how successful we are as a nation in managing the crisis. At HNB, we will continue to drive transformational change in our systems, processes and people operating within the new normal, and play a meaningful role in the resurgence of Sri Lanka.”
The NPA ratio of the Bank increased to 6.51% compared to 5.91% as at end of December 2019 and 6.4% as at 30th June 2020. However, an exposure of Rs. 11.5 Bn to a State Owned Enterprise, which was classified as NPA in December 2019, was regularized in October 2020. Accordingly, after adjusting for this recovery, the NPA ratio for the Bank would have decreased to 5.06% from the NPA ratio of 6.51% reported for September 2020. The impairment charge for the period increased by 45.6% YoY over the nine-month period to Rs. 11.8Bn. Although the Bank’s policy is to account for impairment for foreign currency denominated government securities based on the ratings published by Fitch Ratings, the Bank recognized a provision of Rs 427 Mn during 3Q 2020, on account of the sovereign downgrade by Moody’s in September 2020, in addition to the provision made in 1Q 2020 due to the sovereign downgrade by Fitch Ratings.
Business
Lanka’s largest solar park set to transform energy landscape and local economy in Hambantota
A new era in Sri Lanka’s renewable energy is unfolding in the Gonnoruwa Division of Hambantota District, where construction has begun on the country’s largest solar power park. Spanning 450 acres and designed to generate 150 megawatts (MW) of electricity, the US$150 million private-sector-led project is poised to become a cornerstone of the nation’s sustainable energy ambitions.
Officials say the solar park, guided by the Sustainable Energy Authority and the Mahaweli Authority, will make its first contribution to the national grid by the end of this year, with full capacity expected by 2026. Once completed, the facility will rank among Sri Lanka’s largest renewable energy installations, second only to the 210 MW Victoria Dam and the 150 MW Upper Kotmale hydropower project.
The initiative is being framed as a strategic response to recurring power cuts in the Southern Province during annual drought periods. With a projected 20% contribution to the country’s daytime electricity demand, the solar park is expected to significantly stabilize the grid, reduce reliance on fossil fuels, and contribute to the country’s renewable energy targets.
Project Engineer Thilanka Bandara confirmed that preliminary land preparation and boundary works have been completed, with 50 MW already feeding into the national grid. The investment, fully funded through foreign direct investment, local bank loans, and equity capital, requires no government funding. Two private firms are sharing the development, contributing 70 MW and 80 MW respectively.
Bandara highlighted a unique feature of the project: the transmission infrastructure, estimated at US$16 million, is entirely financed by the investors, marking a departure from conventional grid-connected projects. The park will also employ state-of-the-art ground-mounted solar technology, considered the most advanced currently deployed in Sri Lanka.
In a first for Sri Lanka, the solar panels will be installed five feet above the ground, allowing partial-shade crops to be cultivated underneath. Technical Officer Sithmina Bandara explained that this setup will enable the cultivation of food plants such as mushrooms, which thrive in shaded conditions, creating a model for integrated solar-agriculture systems. Agricultural experts have already provided guidance on implementing this initiative, which combines energy production with local food security.
The project is expected to generate 750 to 1,000 direct and indirect jobs, with 400–500 already employed in the initial phase. Long-term maintenance work will provide further employment opportunities, offering a substantial economic boost to the Hambantota region. Environmental management measures are also in place to prevent elephants from entering nearby villages, ensuring harmony between development and wildlife.
All necessary approvals and permits were obtained by February 2025, aligning the project with the Ceylon Electricity Board’s national generation plan. Officials confirmed that upon completion, the total output of the Solar Energy Park will rise to 200 MW, combining existing installations with the new 150 MW facility.
Experts say the Hambantota solar park represents more than just a power generation project. Its innovative design, private-sector financing, and integrated agricultural approach position it as a template for future renewable energy projects in Sri Lanka, reflecting a new model of sustainable development that balances energy, economy, and environment.
By Sirimanta Ratnasekera
Business
ESU Kandy clinches dominant victory at ‘Battle of Esoftians’
The Battle of Esoftians, an annual cricket encounter organized by ESOFT Uni Kandy, concluded with a spectacular display of cricketing prowess as the Kandy team secured a massive 245-run victory over ESOFT Metro Campus, Kurunegala. The match was held on the 15th at the University of Peradeniya Grounds.
Winning the toss and electing to bat first, the ESOFT Uni Kandy batsmen dominated the field from the outset. They showcased an explosive batting performance, posting a formidable total of 280 runs for the loss of 5 wickets in their allotted 20 overs.
In response, the Kurunegala ESOFT Metro team struggled against a disciplined bowling attack. The Kandy bowlers dismantled the opposition’s batting lineup, bowling them all out for a mere 35 runs, sealing a historic win for the Kandy campus.
The event was graced by the presence of key officials from the ESOFT management: Amila Bandara – Chief Operating Officer (ESOFT Uni), Dimuthu Thammitage – General Manager (Central Region), Lakpriya Weerasinghe – Deputy General Manager, ?Lahiru Diyalagoda
Centre Manager-Degree Division, ESOFT Metro Campus Kurunegala and Dushantha Sandaruwan – Master in Charge (ESU Kandy Cricket Club)
Team Lineups
ESOFT Uni Kandy (Winners)
Chamath Ekanayake (Captain), Dinuka Tennakoon (Vice Captain), Dushantha Sandaruwan (MIC), Chalitha Rathnayake, Pulasthi Bandara, Isuru Dehigama, Kesara Nuragoda, Aadhil Sherif, Isuru Pannala, Achintha Medawatta, Ahamed Shukri, Gowtham Hari Dharshan, Danushka Sahan, Eranda Bandara, and Damith Dissanayake.
ESOFT Metro Campus Kurunegala (Runners-up)
Adeesha Samarasekara, Savishan Madusha, Lahiru Diyalagoda, Hirun Damayantha, Naveen Madushanka, Daham Pothuwewa, Senuda Thewnaka, M.R. Abdulla, Arunodya Dasun, Mohamad Afri, Desith Perera, Lasitha Ranawaka, Anton Dilon, Shenuka Thirantha, and Kavindu Bandara.
Text and Pix By S.K. Samaranayake
Business
HNB joins Royal–Thomian “Battle of the Blues” as official banking partner
HNB PLC, Sri Lanka’s leading private sector bank, has joined as the Official Banking Partner for the 147th edition of the historic “Battle of the Blues,” the Royal–Thomian cricket encounter between Royal College, Colombo, and S. Thomas’ College, Mt. Lavinia. Commenting on the partnership, HNB’s Managing Director/CEO Damith Pallewatte highlighted the bank’s long-standing connection with cricket, including sponsorship of Sri Lanka’s first Test match against England in 1982, and emphasized HNB’s commitment to nurturing young talent and promoting school cricket. The three-day clash for the Rt. Hon. D. S. Senanayake Memorial Shield will take place from March 12–14 at the SSC Grounds, with the Mustangs Trophy one-day match following on March 28 under lights. HNB’s inaugural involvement marks a milestone in the bank’s sports marketing journey, strengthening its role in the school cricket ecosystem. The bank will enhance the spectator experience by introducing digital and cashless banking solutions, modernizing the event while preserving its rich heritage and sporting tradition.
-
Business7 days agoMinistry of Brands to launch Sri Lanka’s first off-price retail destination
-
Features15 hours agoWhy does the state threaten Its people with yet another anti-terror law?
-
Features15 hours agoVictor Melder turns 90: Railwayman and bibliophile extraordinary
-
Features15 hours agoReconciliation, Mood of the Nation and the NPP Government
-
Latest News2 days agoNew Zealand meet familiar opponents Pakistan at spin-friendly Premadasa
-
Latest News2 days agoTariffs ruling is major blow to Trump’s second-term agenda
-
Latest News2 days agoECB push back at Pakistan ‘shadow-ban’ reports ahead of Hundred auction
-
Features7 days agoGiants in our backyard: Why Sri Lanka’s Blue Whales matter to the world

