Business

ILO ready to work with CBSL to drive economy via MSE power

Published

2 years ago

2021/04/30

by Sanath Nanayakkare

The International Labour Organisation (ILO) which has conceptualised and introduced a viable Value Chain Financing (VCF) model for the coconut and coir industry in Sri Lanka said on Tuesday that a similar working capital model can be applied to any micro and small enterprise (MSE) sector where buyers have a strong dependencye on producers for supplies.

Ms Simrin Singh, Country Director for ILO in Sri Lanka and the Maldives said, “This means lending for micro and small enterprises (MSEs) appears to be more feasible now which has often remained outside the target of the commercial banks. The ILO is willing to work with the Central Bank of Sri Lanka to set guidelines and sound practices for Sri Lanka’s commercial banks to undertake value chain financing in a symbiotic relationship with the country’s MSE sector gaining advantages from each other.”

She made these comments at a virtual session organised by the Central Bank of Sri Lanka amid the prevailing situation in the country and its impacts on MSEs.

Speaking further as to how the ILO approached industry members who were willing to advance credit to their MSE raw-husk processing suppliers with the intention of providing inputs they need to continue their exports, she said:

“ILO has had had a number of years of exposure to the industry though collaboration with the Coconut Substrate Exporters Association of Sri Lanka. Four of Sri Lanka’s largest coir and coconut related product exporters partnered with the ILO to move forward with this initiative.The partnership guaranteed that the ILO would cost share an equal amount of any loan that the company would provide to the MSE supplier as a grant, to be used for improving occupational safety and health and working conditions, machinery acquisition or similar capital investment at the suppliers’ level. Accordingly, both MSEs and buyers would benefit from the resulting improved business conditions and quality of the products. Thus far, the ILO has engaged with 93 raw husk processing suppliers which has resulted in benefits to over 1,000 working people out of which approximately 50% are women.”

“The VCF intervention is part of an ILO-led initiative in Sri Lanka to facilitate the healthy socio-economic recovery of the MSE sector from the negative impacts of the COVID-19 pandemic. Vulnerability of this sector should not lead to exploitation and indebtedness at the hands of micro lenders of the informal sector. A significant proportion of MSEs in Sri Lanka struggle to secure working capital through formal channels for a number of reasons, including a lack of credit history or a poor credit rating or an inability to offer collateral. In searching for effective measures to help MSEs re-start or continue their business operations, the ILO introduced value chain financing as an effective and pragmatic approach to providing business owners with access to sufficient working capital.”

“For example, if the small business in question is involved in the apparel value chain, a financial institute would offer credit to the business if a reputed buyer from the apparel industry having commercial transaction with the financial institute vouches for the business. In general, VCF is a tool used to increase returns for all stakeholders and growth and competitiveness along the supply chain. In view of this pragmatic approach, commercial banks of Sri Lanka could look at this lending tool in a more favourable manner as they can rely on a symbiotic relationship with MSEs,” ILO Country Director said.

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Business

Once again, AIA ran for their lives – Proud sponsor for the 3rd consecutive year.

Published

3 hours ago

2023/04/2

Thilina Walpola

AIA Insurance was humbled to be a part of Run For Their Lives 2023, in raising funds for the Apeksha Cancer Hospital. The charity run aligns with AIA’s brand purpose of helping people live healthier, longer, better lives with focus on the prevention and management of Non-Communicable Diseases in Sri Lanka. The company will continue its commitment to fight NCDs and actively engage in creating awareness on leading NCDs in the country, AIA said in a news release.

“With AIA’s goal of making a positive impact on one billion lives by 2030, participants at RFTL were encouraged to make a pledge for a healthy habit that could help prevent illness and remain healthy in the long run. The participants also took part in a real-time survey that measured their unhealthy habits and recommended healthy lifestyle habits. Participants were also instantly rewarded for taking part in the wellness games and the free BMI sessions organised by one of AIA’s wellness partner Vida Medical Clinic,” it said.

Business

Exterminators PLC records 48% in capital gains and dividend payout of Rs. 31.5 M one year after listing

Published

3 hours ago

2023/04/2

Thilina Walpola

Managing Director of Exterminators PLC Marlon Ferreira and the team

Exterminators PLC, Sri Lanka’s premier pest tech and environmental enhancement technology company, celebrates one year on March 30th, 2023, upon its listing on the ‘Colombo Stock Exchange’. Founded with an initial investment of Rs. 75,000 way back in 1998, today’s market capitalization is over Rs. 470 million and the company also created history by becoming the first pest management company in South Asia and emerging and developing markets to be listed on the stock exchange. During the first nine months of the FY22-23, the revenue increased by 37%, the gross profit by 29%, the operating profit by 29%, the profit before tax by 63% and the net profit by 62%. The GP margin is 73%, the NP margin is 27% and the capital gain is 48% as of March 28, 2023. The company’s dividend payout in 2022 was LKR 31.5 million, which included a cash dividend of LKR 14 million and a scrip dividend amounting to LKR 17.4 million.

Marlon Ferreira, Managing Director of Exterminators PLC said: “We anticipate that the pest management and agricultural sectors will have significant growth in the mid- to long-term in Sri Lanka and the emerging developing markets. The company is expecting to reduce operational and administration costs due to the creation of synergies within divisions, which would have a positive impact on the bottom line and in turn create value for all stakeholders Operating from four locations in Colombo, Kandy, Malabe, and Dambulla, the company has set in place the necessary groundwork to expand to several key cities on the island and has plans to setup the global business expansion project in the first quarter of the financial year 23/24.

Business

Fcode Labs wins two awards at e-Swabhimani

Published

3 hours ago

2023/04/2

Thilina Walpola

Flingo and CarromBot, two products by Fcode Labs (Pvt) Ltd, a leading software development and digital solutions company, were adjudged winners at the e-Swabhimani Awards, an initiative of the Information Communication Technology Agency of Sri Lanka aimed at recognizing excellence in digital applications. This gala event was held recently in Colombo for the 11th consecutive time. CarromBot, an AI-based robot that can play a carrom game on its own, was awarded as a Winner in the Digital Entertainment category. The robot identifies the correct piece to shoot, the power, and the angle to shoot.

Flingo, a mobile application where you can draw art and chat in real time with your friends and loved ones, won a Merit award at the ceremony. Flingo provides a sophisticated set of drawing features and a smooth user experience for the users. Fcode Labs (Pvt) Ltd is a company based in Sri Lanka and Singapore that focuses on Digital Transformation, Digital Product engineering, AI, and Blockchain services.

Founded in 2018, it now comprises 60-members that work on developing high-quality Software products. Further details of the company can be accessed on their website www.fcodelabs.com. This is not the first time that Fcode Labs has won e-Swabhimani awards. The company was awarded in 2018 and 2019 for their innovative products. Recently it was also recognized as the 35th best workplace to work in Asia (Small to medium category) by Great Place to Work.