Business
Notable Rights Issues by two non-blue chip companies to raise Rs. 28.3 billion
By Hiran H.Senewiratne
Two CSE entities, namely Palm Garden Hotels and its associate Eden Hotels Lanka, announced plans to raise a staggering Rs. 28.3 billion via separate Rights Issues. These have been the highest Rights Issues by non- blue chip companies in the recent past, market analysts said.
Palm Garden announced a Rights Issue of 10 new ordinary shares for every one ordinary share held at Rs. 41 each to raise Rs. 17.74 billion. Its net asset per share is Rs. 12.19, while the share price yesterday closed at Rs. 46 down by 18% or Rs. 10.30 from the previous day.
Eden announced a Rights Issue of 2 new ordinary shares for every one held at Rs. 10 each to raise Rs. 10.56 billion. Eden’s net assets per share is Rs. 3.54. Its share price declined by 24% or Rs. 3.70 to close at Rs. 11.80 yesterday.
Eden saw group revenue double to Rs. 2.25 billion, while gross profit grew to Rs. 1.5 billion from Rs. 812 million in FY22. Pre-tax loss doubled to Rs. 6.3 billion due to more than doubling of finance cost to Rs. 5 billion.
Palm Garden Hotels owns a 49.5 percent stake in Eden along with 42.6 percent by Browns Hotels and Resorts. The Public Holding percentage as at 31.03.2023 is 7.85 percent, comprising 6,911 shareholders.
Browns Hotels owns 89.38 percent stake in Palm Garden. The public holding percentage as at 31.03.2023 is 10.622 percent, comprising 2,232 shareholders. Funds raised will be used to rectify the serious loss of capital of both companies.
Sri Lanka’s shares edged up throughout yesterday and trade was pushed up by the bank and financial industries due to the confidence in investors that debt restructuring would not affect the banking and financial sector entities, stock market analysts said.
The market started gaining after the Central Bank policy rate cut and the falling in the inflation rate, stimulating buying interest and driving the sentiment up, analysts added.
The main All- Share Price Index was up by 97.33 points, while the most liquid index S&P SL20 was up 10.5 points. Turnover stood at Rs 2.8 billion with four crossings. Those crossings were reported in Sampath Bank, which crossed 26.5 million to the tune of Rs 1.4 billion, its shares traded at Rs 55, Commercial Bank 659,000 shares crossed for Rs 43.5 million; its shares traded at Rs 66, Distilleries one million shares crossed to the tune of Rs 22.5 million; its shares traded at Rs 22.50 and JKH 150,000 shares crossed for Rs 21.1 million, its shares fetched Rs 140.75.
In the retail market, top seven companies that mainly contributed to the turnover were; Sampath Bank Rs 159 million (2.9 million shares traded), Distilleries Rs 114 million (5.1 million shares traded), HNB Rs 103.3 million (754,000 shares traded), First Capital Treasuries Rs 80.6 million (2.9 million shares traded), LOLC Finance Rs 62.5 million (10.4 million shares traded), Hayleys Rs 54.5 million (750,000 shares traded) and Lanka IOC Rs 54.2 million (409,000 shares traded). During the day 97.2 million share volumes changed hands in 15000 transactions.Yesterday, the Central Bank’s US dollar selling rate was Rs 328.92 and the buying rate Rs 311.60.
Business
JAT Holdings celebrates the 6th Pintharu Abhiman Convocation, uplifting over 800 painters through NVQ certification
JAT Holdings PLC marked a significant milestone with the successful conclusion of the 6th JAT Pintharu Abhiman Convocation, recognising more than 800 painters who have earned their NVQ Level 3 qualification, an internationally recognised professional certification delivered in partnership with the National Apprentice and Industrial Training Authority (NAITA).
JAT Pintharu Abhiman was established to uplift Sri Lanka’s painter community through structured skills development, professional recognition and stronger earning potential. This year’s graduating cohort reflects the programme’s expanding reach and the tangible changes it continues to deliver for individuals, families and communities.JAT in collaboration with NAITA has streamlined the certification process such that what would traditionally take up to six months has been refined into an efficient and high-impact three-day assessment model. This approach ensures painters can obtain their qualification without sacrificing extended periods of work, while JAT fully absorbs the certification cost, removing financial barriers and enabling wider access to formal recognition.
Research conducted amongst NVQ qualified participants shows meaningful improvements in livelihoods, with 90 percent reporting increased personal confidence and 76 percent noting an improvement in their overall standard of living. This uplift demonstrates the long-term value of industry-aligned professional training.
A noteworthy moment at this year’s convocation was the recognition of four female painters who received their NVQ certifications. Their achievement marks an important step in broadening female participation in a field that has historically been male dominated, reinforcing JAT Holdings’ commitment to creating inclusive pathways for technical development and sustainable employment.
Speaking at the ceremony, Mr. Wasantha Gunaratne, Director Sales and Technical (South Asia) of JAT Holdings PLC, said:
“Pintharu Abhiman is fundamentally about development, giving painters the knowledge, structure and recognition they need to progress in their careers. By equipping over 800 painters with an internationally recognised NVQ qualification, we are not only strengthening the technical standards of the industry but also creating real pathways for entrepreneurship and financial independence. It is especially encouraging to see that one in five certified painters have already begun building their own businesses. These are the outcomes that matter because they show that when we invest in skills, we unlock opportunity. JAT remains committed to expanding these avenues so every painter has the chance to grow, lead and build a sustainable future.”
The 6th JAT Pintharu Abhiman Convocation underscores JAT’s continued dedication to uplifting the painter community, enhancing industry standards and supporting national skills development through accessible, professionally recognised qualifications.
Business
Industry bodies flag gaps in Draft National Electricity Policy
The Ceylon Chamber of Commerce, together with the American Chamber of Commerce, Exporters Association of Sri Lanka, Federation of Renewable Energy Developers, Joint Apparel Association Forum, National Chamber of Commerce of Sri Lanka and Sri Lanka Association for Software and Services Companies, has submitted joint observations on the Draft National Electricity Policy, highlighting that several key issues have not been adequately addressed.
Whilst recognizing the need for reform in the electricity sector, the submission flags several gaps in the draft policy that require closer attention. Key areas such as affordability, decarbonisation commitments, incentives for renewable energy, competition, and the long-term financial health of the sector are either missing or not addressed in sufficient depth.
The proposed tariff revisions outlined in the draft energy policy raise concerns, particularly regarding the removal of cross-subsidies and the proposal to restrict subsidies exclusively to households consuming less than 30 kWh per month. Without detailed analysis, these measures could weaken access to sustainable and affordable energy and potentially lead to fiscal risks.
The provisions allowing uncompensated curtailment, removing feed-in tariffs, and imposing mandatory time-of-use tariffs on rooftop solar users could make renewable energy projects un-bankable for international lenders, thereby increasing the cost of capital for Sri Lanka.
Calling for a more future-focused approach, the submission stresses the need for a policy that reflects modern electricity systems, including planning for the energy transition, energy storage, market competition, cross-border electricity trading, and emerging technologies.
The Chambers and Associations request a comprehensive revision of the Draft National Electricity Policy, alignment with the Electricity Act, and resubmission following substantive consultation, and reiterate support to engage constructively with policymakers to shape a policy that supports affordability, investment confidence, and Sri Lanka’s long-term energy security.
Business
Bank of Ceylon partners with 36th APB Sri Lanka Convention
Bank of Ceylon (BOC) partnered with the 36th Annual Convention of the Association of Professional Bankers (APB) Sri Lanka, reaffirming its commitment to promoting professional excellence and knowledge sharing within the banking sector. The partnership was officially handed over by Sameera D. Liyanage, Chief Marketing Officer of Bank of Ceylon and M. R. N. Rohana Kumara, Deputy General Manager Business Revival Unit of Bank of Ceylon, reflecting BOC’s focus on empowering banking professionals and supporting the sustainable growth of Sri Lanka’s financial services industry.
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