Business
LOLC Group companies contribute substantially to main indices

By Hiran H.Senewiratne
CSE trading activities at the beginning of yesterday were buoyant and during the mid and latter parts of the day witnessed considerable profit taking. This scenario evinced mixed reactions from both indices with a healthy turnover level. But one of the subsidiaries of the LOLC Group of companies was at the forefront of the market throughout the day by contributing substantial points to the All Share Price Index.
A subsidiary of the LOLC Group, Commercial Leasing and Finance contributed 194 points to the All Share Price Index and also became the company with the highest market capitalization amounting to Rs 539 billion, which is more than 11.4 percent of the total market capitalization in the CSE, stock market analysts said. Commercial Leasing and Finance now tops the list overtaking Expolanka Holdings where the market capitalization is concerned.
Further, most of the LOLC Group companies exceptionally contributed to the indices: Commercial Leasing and Finance 194 points, LOLC Development and Finance (NIFL) 43 points, LOLC Holdings 25 points, LOLC Finance 23 points and Browns Investments 10 points.
Amid those developments both indices showed mixed reactions. All Share Price Index went up by 220.19 points and S and P SL20 went down by 16.33 points. Turnover stood at Rs 5.6 billion with two crossings. Those crossings were reported in JKH, which crossed 403,000 shares to the tune of Rs 60.5 million and its shares traded at Rs 152 and Distilleries 1.2 million shares crossed for Rs 21 million; its shares traded at Rs 17.50.
In the retail market, the top five contributors to the turnover were; LOLC Finance Rs 1 billion (86 million shares traded), Commercial Leasing and Finance Rs 991 million (12.3 million shares traded), Expolanka Holdings Rs 989 million (4.9 million shares traded), Browns Investments Rs 389 million (36.4 million shares traded) and LOLC Holdings Rs 2.73 million (427,000 shares traded).
During the day notable gains were reported in LOLC Finance and Commercial Leasing and Finance. LOLC Finance shares appreciated by 19.4 percent or Rs 2. Its share price moved up to Rs 12.30 from Rs 10.30. Commercial Leasing’s share price appreciated by 19 percent or Rs 13.60. Its share price shot up to Rs 88.60 from Rs 71.
Meanwhile, Agstar PLC announced a rights issue. The company will issue 153 million voting shares and 8.7 million non- voting shares to raise Rs 802 million. The proportion would be one new share for two shares. The purpose of the right issue was to settle the outstanding working capital loans and adding funds to the working capital. During the day 212 million share volumes changed hands in 47000 transactions.
Yesterday the US dollar was quoted at Rs 202.62, which was the Central Bank controlled price level, which is to prevent the price escalation of essential items.
Business
CSE expected to maintain growth momentum in the wake of brighter IMF bailout hopes

By Hiran H.Senewiratne
The CSE will be able to maintain its growth momentum with IMF bailout prospects brightening this week. Consequently, foreign inflows to the CSE will improve in the future, Head-Market Development, CSE, Niroshan Wijesundara said.
“To date the CSE has been able to register a 14 per cent growth and with the IMF bailout approval we could expect more foreign inflows into the market, Wijesundera told the Island Financial Review.
Amidst these developments the market ended on a positive note at the end of yesterday. Initially there were mild profit- takings but this did not negatively impact the overall performance of the market.
Accordingly, shares edged up in mid-day trade yesterday while investors adopted a wait- and -see approach as the country looked forward to IMF approval on the Extended Fund Facility towards the end of this week.
“Investors are on a wait- and- see approach as the IMF is likely to approve the US$ 2.9 billion dollar loan, market analysts said.
“Selling pressures have eased and now buying sentiments are improving, analysts said.
The ASPI went up by 29.54 points, while the most liquid S&P SL20 index rose by 15.7 points. Turnover stood at Rs 1.8 billion with three crossings. Those crossings were reported in Hemas Holdings, which crossed three million shares to the tune of Rs 199 million, its shares were quoted at Rs 65, Hayleys 738,000 shares crossed for Rs 59.8 million, its shares traded at Rs 31 and JKH 290,000 shares crossed for Rs 42 million, and its shares fetched Rs 141.
In the retail market top seven companies that mainly contributed to the turnover were; Browns Investments Rs 209 million (30.8 million shares traded), JKH Rs 84.6 million (584,000 shares traded), Access Engineering Rs 79.5 million (4.9 million shares traded), LOLC Finance Rs 75.4 million (10.9 million shares traded), Union Bank Rs 62.9 million (6.7 million shares traded), Expolanka Holdings Rs 60 million (420,000 shares traded) and SLT Rs 57.5 million (687,000 shares traded). During the day 98.7 million share volumes changed hands in 20000 transactions.
Top gainers during mid- hours were Commercial Bank, Browns Investment and Access Engineering. Access Engineering is an unusual top contributor and this is because interest had been generated in it after assurances had been given on the IMF deal and there is an assumption that multilateral projects are likely to begin with the IMF restructuring process coming to a close, market analysts said.
Sri Lanka’s growth will be contained at a negative 3 per cent in 2023 after a 12.4 per cent shrinkage in the fourth quarter of 2022 and is expected to turn positive from next year, State Minister of Finance Ranjith Siyambalapitiya said. Siyambalapitiya told reporters on March 18 that Sri Lanka can expect a “positive economy” in 2024.
Yesterday the rupee opened stronger and was quoted at around Rs 330/338 to the US dollar, stronger from Friday’s close of Rs 337/345 to the US dollar, dealers said.
Business
“Surfing Through the Crisis”

EY Sri Lanka, is scheduled to host a discussion ‘Debt Restructuring Implications to the Financial Services Sector’, on March 22, from 08:45 am to 12:30 pm at The Kingsbury Colombo. The session branching under the theme, ‘Surfing through the Crisis’, is designed specifically for CEOs, CFOs, and CRO of the financial sector, as well as the chairpersons of the Audit Committee and the Board Integrated Risk Management Committee. The event hopes to create value for Sri Lanka’s financial sector amidst the prevailing economic challenges. As the largest service providers to the financial sector in terms of audits, tax, consultancy, and strategy & transaction, EY Sri Lanka feels compelled to assist the financial sector as they navigate the challenges of the economic crisis.
Despite the expected positive outcomes of debt restructuring, the process itself can be painful for the country, financial institutions, debtors and creditors. To the financial services sector specifically it could bring several challenges to capital management, financial reporting, Credit Risk and Liquidity Risk management strategies.
This session will explore these implications, under two technical segments, from Risk Management and Accounting lenses, and the mechanisms required for an effective transition. From a Risk Management perspective there will be several simulations on how it affects the financial institution’s capital and profitability whilst the accounting perspective will include discussions relating to how the debt restructuring process shall be accounted for in line with SLFRS 9 Financial Instruments.
The event will be conducted by Manil Jayesinghe, Country Managing Partner of EY Sri Lanka and Maldives, and Rajith Perera, Partner Financial Accounting Advisory Services EY Sri Lanka. To register for the session, or for further inquiries please contact Nurani Rajapaksha (Nurani.Rajapaksha@lk.ey.com)
Business
Participants of Raid Amazones 2023 arrive from Paris on SriLankan Airlines

The participants of the adventure trail ‘Raid Amazones 2023’ arrived at Bandaranaike International Airport on SriLankan Airlines’ flight UL 564 from Paris. SriLankan Airlines is the Presenting Partner of Raid Amazones and extended a warm welcome with a traditional flare to the arriving group.
The group boarded the Udarata Menike train from the Gampaha Railway Station shortly thereafter for a scenic journey to Kandy, where the trail will unfold from 22 – 28 March.
Raid Amazones is the world’s only itinerant women’s adventure race. Nearly 250 female athletes will be participating in the 21st edition of the trail in Kandy.
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