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LOLC Group restructuring viewed as a global strategy to attract investors

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Meanwhile ASPI ended sharply higher amid healthy turnover levels

By Hiran H.Senewiratne 

Stock market analysts said yesterday that LOLC would set up a new company to dilute its share percentage  90 percent or below in order to comply with the Colombo Stock Exchange (CSE) listing rules.

According to them, the new company would be named as LOLC Ceylon Holdings Limited and would go for an Initial Public Offering (IPO) once it is formed,

The stakes in three companies under LOLC Holdings would be transferred to the new entity. The move is expected to attract  large- scale foreign investors to support LOLC companies to grow even further.

Namely these companies would be, LOLC Finance  Commercial Leasing and Lanka LOLC Development Finance would be under the new entity. It is said that  44.8 percent stakes belonging to  LOLC Finance, 98.9 percent belonging to Commercial Leasings and 55.6 percent of Lanka LOLC Development Finance would be transferred to the new company.

The purpose of this move is to comply with the CSE listing rule where the company could hold only 90 percent or below of any listing company and also minority shareholders to invest in the company. stock market analysts said.

Amid those developments the Colombo Stock Exchange ( CSE) remained buoyant recording above average high turnover and indices on the up thanks to sustained investor interest.

The All Share Price Index (ASPI) gained by 78.61 points and the S&P SL20 Index moved up by 24.80 points. Turnover was an impressive Rs. 8.5 billion seven crossings. Those crossings were reported in Cargills, which crossed in one million shares to the tune of Rs 225 million and its sahre price traded at Rs 225, Dipped Products 325,00 shares crossed for Rs 118 million and its share price traded at Rs 365, NDB 1.5 million shares crossed for Rs 118.5 million and its share price traded at Rs 79, JKH 426,000 shares crossed for Rs 65 million and its sahre price traded at Rs 153, Hayleys 125,000 shares crossed for Rs 55 million and its share price traded at Rs 440, Renuka Holdings three million shares crossed for Rs 51 million and its share price traded at Rs 17 and Royal Ceramic 105,000 shares 21 million aand its share price traded at Rs 17.

In the retail trade top five companies that mainly contributed to the turnover were Browns Investments Rs 2.7 billion (387,000 shares traded), Expolanka Rs 1.06 billion (26.4 million shares traded), Hayleys Rs 417 million (940,000 shares traded), Dipped Products Rs 280 million (776,000 shares traded) and LOLC Rs 230 (1.4 million shares traded). During the day  545 million share volume changed hands in 46391 transactions.

Controlling shareholder, the Malaysia based investor Vijayeswaran S. Vijayaratnam bought out the Japanese investors in Asia Capital PLC for Rs. 160 million on Monday.

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HNB promotes cashless transactions; joins CBSL’s ‘Rata Purama LANKAQR’ campaign

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Chief Guest for the event Money and Capital Markets and State Enterprise Reforms State Minister Ajith Nivard Cabraal, CBSL Deputy Governor and National Payments Council chairperson Yvette Fernando, and CBSL Payments and Settlements Director D. Kumaratunge with HNB Executive Director and Chief Operating Officer Dilshan Rodrigo as he completes a transaction via HNB SOLO at a merchant stall

HNB PLC, partnered with the Central Bank of Sri Lanka to promote the Colombo-leg of ‘Rata Purama LANKA QR’ campaign at Diyatha Uyana, to raise awareness and encourage the public towards cashless payments.

Having already linked LANKA QR to its digital payment app HNB SOLO, the bank was among other financial institutions and telecommunication partners in joining efforts to make cashless QR-code based payments the standard for mobile phones and digital payments countrywide, in moving towards a cashless and digitally-savvy Sri Lanka.

“We are entering a new era of financial technology, where almost all of our daily transactions will require no physical banknotes, but just a smartphone and internet connection with our bank account integrated to a digital payment app.

The Central Bank’s national directive for banks and financial institutions to adopt and integrate LANKA QR into their existing digital payment solutions has prompted an aggressive onboarding of merchants to the new payment solution across the country. With our extensive customer base, SOLO is no doubt a significant contributor to this innovative initiative,” HNB Deputy General Manager – Retail and SME Banking, Sanjay Wijemanne said.

The Colombo-leg of the ‘Rata Purama LANKA QR’ campaign raised awareness regarding SOLO’s many facilities, including zero human interaction, efficiency, and eliminated risks that influenced many vendors to come on board.

 

(HNB)

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Bank of Ceylon empowering nation with Lanka Q

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The Bank of Ceylon in its mission to assist the government initiative to empower Sri Lanka through digital technology is joining the customer awareness campaign of Central Bank of Sri Lanka’s Lanka QR digital platform.

Bank of Ceylon had its most recent major awareness programs in Borella and Maharagama along with the other branches in Colombo District in line with the Central Bank’s main program held in “Diyatha Uyana” with the participation of all Lanka QR certified banks on the same day.

Central Bank of Sri Lanka (CBSL) has organized a series of awareness and promotion campaigns for popularizing Lanka QR with the participation of all Lanka QR certified financial institutions throughout the country with the aim of speeding up the customer adaptation process towards digital banking.

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Sri Lanka Insurance posts a staggering revenue of Rs. 55.2 billion during 2020

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Amidst the turbulent and challenging year Sri Lanka Insurance has closed year 2020 on a positive note recording phenomenal revenue growth with exceptional service innovations.

Sri Lanka Insurance the premier insurer to the nation recorded stellar performance in 2020 to record Rs. 55.2 billion revenue for the year, a marked improvement on the Rs.48.6 billion in the year 2019, a press release said.

It adds – In the year of 2020 Sri Lanka Insurance reported 30 % growth in life insurance premium increasing to Rs.19.2 billion whilst general insurance reported 7% growth in premium grew to Rs. 20.1 billion. The company achieved a combined Gross Written Premium (GWP) growth rate of 17 % during the year. General insurance contributed 51% towards the total GWP whilst Life Insurance contributed 49 %.

‘In continuing with its tradition of leadership, Sri Lanka Insurance in 2020 surpassed its own record to declare a sum of Rs.8.2 billion as bonus to policyholders. The cumulative life insurance bonus paid out during the past 10 years tops a massive Rs.54 billion making the SLIC bonus payout unmatchable.

‘As the national insurer we have witnessed yet another challenging year and the consequences brought out by pandemic outbreak urged us to conduct our business operations in a more empathetic manner. SLIC has always taken the lead to protect the nation and during this difficult time Sri Lanka Insurance launched many initiatives to sustain country’s health defenses while ensuring our customers receive uninterrupted insurance service.

‘As the pioneering insurance company in Sri Lanka we are in the forefront to inculcate the importance of insurance to the masses as a national responsibility on our shoulders. We will further strengthen internal capabilities to serve the nation through innovative and affordable insurance solutions which cater to all Sri Lankans under the ‘Insurance for All” concept. Even though the times are defining we will continue protecting our nation turning obstacles into opportunities.’ noted .Jagath Wellawatta, chairman of SLIC.

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