Business

People’s Bank’s consolidated financial support extended during 2020 & 2021 crosses LKR 1.0 trillion

Published

5 years ago

2022/03/9

Sujeewa Rajapakse Chairman of People's Bank,Ranjith Kodituwakku, Chief Executive Officer/ General Manager

People’s Bank today announced the results for the year ended December 31, 2021 – with consolidated total operating income reaching LKR 110.7 billion and total operating expenses amounting to LKR 50.5 billion, either of which up 21.9% and 14.9% respectively over 2020. Consolidated pre-tax and post-tax profits amounted to LKR 37.2 billion and LKR 28.1 billion; representing a 51.1% and 74.6% growth. On a Bank standalone basis, figures were LKR 30.4 billion and LKR 23.7 billion, respectively – up 43.2% and 67.3% over 2020.

Income growth primarily stemmed from net interest income, which accounted for close to 90.0% of total operating income and grew by 30.2% in line with the Bank’s growth in its credit and investment portfolio, whilst its fee income grew by 23.4% to reach LKR 9.0 billion; reflecting the Bank efforts to improve its non-funded income sources. Expense growth mostly related to direct business growth. Relative to 2019, the Bank’s cost to income ratio has shown a marked improvement at 51.1% in 2021 as compared with 54.3% in 2020 and 61.8% in 2019. Bank-wide impairment charges rose reflecting macro-economic stresses as seen throughout the industry.

During the year, the Bank invested in rural development, supported small and medium-sized enterprises (SMEs) and encouraged women entrepreneurship. At end 2021, it extended over LKR 63.0 billion to SMEs through various loan initiatives ; which included close to LKR 1.9 billion through its own scheme to help revive businesses across agriculture, information technology, logistics, manufacturing, tea and tourism. In conjunction with the Small Holder Agri-Business Partnership (SAP), introduced a low-interest credit scheme for 5,000 farmers with an initial provision of LKR 1.0 billion. To support the production of local fertilizer, the Bank introduced the Sarabhoomi loan scheme whilst to promote women entrepreneurship, it extended LKR 533.5 million. The Bank also introduced additional loan schemes to assist self-employment in the agricultural and handicrafts spaces. To support the country’s investment in information technology, the Bank committed LKR 6.0 billion of which LKR 750.0 million was already drawn down. From a Personal Loan perspective, in its effort to uplift the housing and construction sector, the Bank granted over 10,000 home loan facilities amounting to over LKR 185.8 billion at end 2021. In addition, by end 2021, it had disbursed over LKR 5.5 billion to retired disabled officers of armed forces and over LKR 68.5 billion to government pensioners. To assist artists and related professionals, the Bank disbursed over LKR 550.0 million, whilst to assist University Students and Teachers, the Bank designed laptop loan schemes through which a total of LKR 350.5 million was extended throughout the year. Medical students at state universities were similarly offered personal loan facilities.

All the above considered, the Bank’s consolidated loan book expanded by 12.1% to reach LKR 1,990 billion at end 2021. The Bank’s stage 3 loans were, however, at 4.3% (2020: 4.5%). In addition, the Bank undertook approximately LKR 453.0 billion treasury bond conversions during the said two-year period. Growth in its consolidated deposits was 12.1% to LKR 2,168.7 billion.

Total consolidated taxes and dividends to the Government of Sri Lanka totaled LKR 20.4 billion during 2021, representing a 25.1% growth over LKR 16.3 billion in 2020. Its Consolidated Tier I and Total Capital Adequacy was 13.4% and 17.9%, respectively at end 2021 (end 2020: 10.7% and 15.6%). On a Bank standalone basis, these were 12.6% and 17.8%, respectively (2020: 9.5% and 15.5%); either of which not institutional all times highs but also amongst the highest in the industry. All other regulatory ratios were all maintained well above the minimum requirement.

Commenting on the results, the Chairman of People’s Bank, Mr. Sujeewa Rajapakse, stated that: “We are very pleased with the results of the Bank more so as attained during unseen like before circumstances. As a service provider, the last two years have put our promise and our ability to deliver to the ultimate test. As a national institution, we don’t measure our success by a typical top line or bottom line but by our national value added – with our results both from a quantitative and qualitative perspective self-attesting to our resilience in these difficult times and overall performance including, most notably, our productivity & efficiency. All the above said, our job is far from over. Not complacent with any of our successes, we remain focused and fully committed to the Government economic revival plan. Mindful of the challenges which lie ahead, we look forward with a great degree of optimism. Together, we can!”

All News Advertisement

Business

ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

6 hours ago

2026/10/2

Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

Business

USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

6 hours ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

Business

CSE activity up, turnover weak at Rs. 1.4 billion

Published

6 hours ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.