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March 2020 quarter earnings decline by 52.0% YoY for 266 companies: First Capital

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The quarter ended in March 2020 reported a decline in earnings by 52.0% year -on-year for 266 companies, according to a report released by First Capital Research.

“March quarter earnings dipped by 51.9%YoY to LKR 33.6Bn primarily owing to sluggish performance in Diversified Financials (-87%YoY), Capital Goods (63%YoY), Food, Beverage & Tobacco (-72%YoY), Telecommunication (-52%YoY) and Consumer Services (-101%YoY)”, it said.

The report further said: “Upbeat quarterly performance was only witnessed in the following sectors; Banks (+32%YoY) followed by Food, Staples, and Retailing (+96%YoY) and Materials (+8%YoY)”.

“Lackluster performance in Diversified Financials, Capital Goods and Food, Beverage and Tobacco sectors was mainly owing to subdued economic growth which was heightened by the Covid-19 pandemic striking the island. PLC profit dipped by -90%YoY due to high impairments because of the slowdown in the economy caused a reduction in disposable income of customers and business volumes”.

“Consequently, there was a rise in non-performing loans in the sector which was the main factor for the decline in earnings of Commercial Credit and Finance Plc – (-56%YoY), LOLC Finance Plc (-29%YoY), LB Finance Plc (-19%YoY) as well. Therefore, primarily led by the above-mentioned counters, the Diversified Financial sector recorded a decline of 87%YoY”.

“Plunge in earnings by 63%YoY in Capital Goods was chiefly driven by SHL earnings reporting a loss of LKR 3.3Bn (-11033%YoY) followed by the decline in earnings in BRWN (-53%YoY) and SPEN (-45%YoY)”.

“Notably, JKH recorded a growth of 18%YoY primarily due to the growth in profits in Consumer Foods, Retail and Property segments, overall, the Capital Goods sector recorded a decline in earnings”.

|Banking sector witnessed a profit growth of 32%YoY to record LKR 14.6Bn primarily driven by COMB (+20%YoY), HNB (+57%YoY) and SAMP (+27%YoY). COMB, HNB and SAMP profits were boosted due to financial investment gains (forex and mark to market gains) coupled with the removal of NBT and Debt Repayment Levy which improved the bottom line”.

“Cargills Ceylon Plc recorded an impressive growth of 134%YoY driven by the growth in FMCG and retail space, benefiting the Food, Staples and Retailing sector to record a growth of 96%YoY”, First Capital report said.



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LOLC Al-Falaah unveils pioneering Wadi’ah Gold-Storage Facility with multiple customer benefits

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Sri Lanka’s most awarded and trusted Alternate Financial services brand, LOLC Al-Falaah recently unveiled their ground-breaking new product – the Wadi’ah Gold Loan Facility. This is the 1st time a Finance company in Sri Lanka is offering this facility. Al-Falaah Wadi’ah is a unique gold storage option offered to Al-Falaah’s valued customer base. All gold articles are tested for quality and authenticity using state-of-the art equipment by the company’s experienced staff without causing any damage to the jewellery. A unique ‘Gold Storage Certificate’ with the description of articles, including weight, quality and quantity along with the market value will be issued to the customer when obtaining this facility.

Speaking about the new product, Mr. Shiraz Refai, Deputy General Manager of LOLC Al-Falaah said, “Gold is a favourite investment option at all levels within the concentrated community. The metal is usually pawned, sold or exchanged when in need of cash. As the conventional Pawning options and Gold Loan offering has limitations to cater to the specific needs, as well as contradict with certain beliefs of the community, a concept acceptable and practiced in the industry is introduced by LOLC’s Alternate Financial Services Unit to its valued customer segment”.

Accordingly, a unique feature has been introduced to the Al-Falaah Wadi’ah Gold Storage facility offering the Customer the benefit of obtaining an interest-free maximum Cash-Advance in the industry at zero mark-up against the gold storage certificate value for any emergencies. In addition, for the convenience of the customers, the Gold storage facility period is extended from 3, 6 and 12 months without any requirement for a deposit and the custodial fees are comparatively competitive. The stored gold articles will also be offered a free Takaful cover with a reassurance of highest safety and security.

The Al-Falaah Wadi’ah gold storage facility will be initially available at selected branches including Wellawatta, Akkaraipattu, Kalmunai, Pottuvil, Grandpass, Maradana, Mawanella, Matara, Nawalapitiya and Negombo. Al-Falaah aims to make the facility available across all LOLC Finance branches and dedicated Al-Falaah centers island-wide by the end of the 1st quarter of 2021.

Commenting on the new Al-Falaah Wadi’ah Gold loan facility, Nishantha Jayasekera, Chief Manager, SME Unit & Head of Gold Loan Business of LOLC Finance said, “The main aim of this facility is to give financial-access to the grass-root level clients who do not have direct access to banking & finance, but require small cash advances to develop daily businesses and self-employment. Through this product and its value added features, we hope to cover all segments of the population”.

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LANKATILES donates high-end ventilator to Colombo North Teaching Hospital

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A Rs. 4.3 million ventilator has been donated to the Coronary Care Unit of the Colombo North Teaching Hospital, Ragama, by LANKATILES, the country’s leading tile manufacturer.

The machine was described as a high-end, world-class piece of equipment suitable for all patient groups.

Present at the official hand-over were Mr Mahendra Jayasekera, Managing Director of Lanka Walltiles PLC and Lanka Tiles PLC, Dr. S. P. A. Liyanage Ranaweera, Director of Colombo North Teaching Hospital, and Dr. Sanjeewa Rajapakse, Consultant Cardiologist of the hospital.

At a time when state-of-the-art equipment is urgently needed to contain the COVID-19 pandemic, LANKATILES reaffirmed its commitment to help frontline hospital staff in their efforts at reducing the spread of the virus and easing patient numbers.

The company said this was a commitment it is ready to stand by at all times in the interests of the country.

 

 

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Sampath Bank hosts Central Bank’s ‘MatarataQR’ event to promote QR code use

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Matara, April 3rd, 2021: Sampath Bank PLC recently hosted the Central Bank of Sri Lanka’s (CBSL) MatarataQR event, in a bid to drive awareness and increase acceptance and usage of LANKAQR, the common Quick Response (QR) code standard for the country that was introduced in 2020.

Encouraging consumers to adopt the use of QR codes in their day-to-day transactions, the event was held at the Sanath Jayasuriya Grounds in Matara under the patronage of the Chief Guest, Dullas Alahapperuma, Minister of Power and Guest of Honour, D. Kumaratunga, Director – Payments and Settlements, Central Bank of Sri Lanka; along with senior officials from the CBSL, other commercial banks and financial institutions. Sampath Bank was represented by Nanda Fernando – Managing Director; Tharaka Ranwala – Senior DGM – Operations / Group Chief Marketing Officer and Ajith Salgado – Group Chief Information Officer.

At the event, the Bank actively promoted its ‘WePay’ mobile wallet which helped attract more customers while also onboarding new merchants. A 25% cash back was on offer for payments at over 200 merchants in Matara on the day, made via the LANKAQR enabled WePay digital mobile payment app.

“We are very proud to partner with the Central Bank to host this event that will highlight the safety, convenience and speed of getting onboard the LANKAQR payment standard to the people of Matara. These benefits, coupled with the advanced digital banking solutions offered by Sampath Bank, make it a simple choice to migrate to digital payment technology and we warmly invite the merchants in Matara to come experience the benefits of adopting this new method of payments,” said Nanda Fernando, Managing Director, Sampath Bank PLC.

Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the people of Sri Lanka. Established in 1987, the bank has become a state-of-the-art financial institution that continues to be a market leader today thanks to its constant innovation and customer focused approach to business. It has introduced many firsts to the Sri Lankan banking sector including introducing ATMs to Sri Lanka, extended banking hours and slip-less banking to name a few. The Bank is steadily transforming itself into a ‘tech company engaged in banking,’ from the traditional approach of a bank engaged in technology.

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