Business

Plantation companies to lose Rs 500 mn. due to govt. vacillation on oil palm

Published

6 years ago

2020/08/23

Plantation companies will sustain a cumulative loss of more than Rs 500 million within months due to policy inconsistencies and vacillation by the government on a well-regulated expansion of Sri Lanka’s oil palm cultivation, the sector’s apex industry association has warned.

The Palm Oil Industry Association (POIA) said 356,000 oil palm plants imported on the strength of a government decision to expand cultivation have been maturing in nurseries for more than three years, due to the government’s failure to address concerns arising from falsehoods and disinformation spread by misled activists and lobbyists with vested interests.

“About 40 per cent of these trees may already be unviable and we fear that the entire stock may have to be destroyed within the next two months, unless the government resolves this matter expeditiously,” POIA President Dr Rohan Fernando said.

The Palm Oil Industry Association represents cultivators as well as refiners, processors, manufacturers, marketers and sellers of palm oil and other products of the oil palm, who have cumulatively invested Rs 26 billion in the industry.

Sri Lanka has less than 11,000 hectares under oil palm – just over one per cent of the extents under tea, rubber and coconut – and plantation companies had been mandated to increase the total area under oil palm to 20,000 hectares under strictly-enforced guidelines that ensure the industry is environmentally non-invasive, before the government back-pedalled on the plan.

Fernando said the industry’s appeal to the government for permission to plant whatever viable trees are left in the nurseries, would enable the plantation companies to reduce the losses they are faced with and help increase local production of palm oil at a time when imports are being restricted to conserve foreign exchange. He said even if the entire stock of trees had been planted, the country’s extent under oil palm would only have increased by about 2,750 hectares.

“We are also aware that the government is looking at expanding coconut cultivation to which we have absolutely no objection, but experts have calculated that it would take at least 20 years to reach a point where the country’s edible oil requirements can be met by locally-grown coconut,” Fernando said. “There is also concern that coconut oil production is more costly and requires more land than oil palm.”

He pointed out that baseless vilification of the local palm oil industry had resulted in the country producing just 23,000 tonnes of palm oil per annum and the import of a staggering 220,000 tonnes of crude palm oil into the country each year, at a cost of approximately Rs 22 billion.

The government decision to encourage cultivation of oil palm and to increase the country’s extent under the crop to 20,000 hectares was backed by comprehensive conditions and guidelines that would ensure there will be no environmental degradation, no deforestation and no replacement of other viable crops, Fernando added.

However, lobbyists had used the haphazard, unregulated and rapacious early expansion of oil palm cultivation in countries such as Malaysia and Indonesia to create a baseless fear psychosis about the industry, disregarding the fact that Sri Lanka has cultivated less than 11,000 hectares in 50 years.

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Business

Fifty ninth ADB Annual Meet opens in Samarkand amid global uncertainty

Published

23 hours ago

2026/05/4

Thilina Walpola

Guests from member countries of the ADB arrive at the venue for the 59th Annual Meeting of the Bank in Samarkand, Uzbekistan, yesterday

The 59th Annual Meeting of the Board of Governors is set to commence this week, bringing together finance ministers, central bank governors, policymakers and development leaders from across Asia and beyond at a time of mounting global economic and geopolitical uncertainty.

Addressing journalists ahead of the opening sessions, Bernard Woods, Principal Director of the Department of Communications, said the meetings were beginning at a pivotal moment for the world, with fuel markets, food security and fertilizer supply chains coming under strain due to tensions in the Middle East.

He noted that amid rising political and economic fragmentation, regional connections and stronger collaboration have become more important than ever. Against that backdrop, the key sessions and high-level discussions in Samarkand will focus on building collective resilience and strengthening cooperation among member countries.

Among the major themes expected to dominate the agenda are cross-border digital connectivity, cyber security, energy integration, capital market development, transport corridors and the responsible adoption of artificial intelligence to improve resilience and productivity in member economies. Woods also said discussions would examine how resources can be distributed more effectively to meet the unique development priorities of each country.

The official programme features a series of strategic seminars and media events over four days. The opening session of the Board of Governors will include addresses by high profile authorities and subject experts.

Other key sessions include discussions on how capital markets can drive development across Asia and the Pacific, scaling up investments for critical minerals and manufacturing value chains, digital highways for inclusive growth, and pan-Asia transport and power connectivity initiatives.

ADB President Kanda is also scheduled to hold a press conference to announce major new initiatives, while several technical briefings will examine global value chains, private sector operations, digital transformation and regional energy cooperation.

With global shocks increasingly spilling across borders, the Samarkand meeting is expected to underline a central message: that regional cooperation, practical partnerships and timely investment remain essential for sustaining growth and stability across Asia and the Pacific.

By Sanath Nanayakkare in Samarkand, Uzbekistan

Business

Nations Trust Bank completes transfer of HSBC Sri Lanka’s Retail Banking Business to its portfolio

Published

23 hours ago

2026/05/4

Thilina Walpola

Nations Trust Bank PLC (NTB) has announced that the transfer of Hongkong and Shanghai Banking Corporation’s (HSBC) Retail Banking business in Sri Lanka to NTB has officially been completed, with the acquired portfolio transitioning to NTB effective 1st May 2026.

NTB has integrated HSBC Sri Lanka’s retail banking customers into its operations, ensuring continuity of service and relationship management. The transition also includes the onboarding of HSBC Sri Lanka staff as part of the integration process. The transition has been carried out with a focus on operational stability and minimal disruption, with ongoing support in place as customers familiarise themselves with their banking arrangements at NTB.

The migration brings approximately 200,000 retail customer accounts under NTB, encompassing savings and current accounts, fixed deposits, credit and debit cards, retail loans and a high‑net‑worth customer segment that now joins Nations Trust Bank Private Banking. Through this transfer, Nations Trust Bank’s countrywide network expands to 96 branches. The transition adds seven branches to the network, with locations in Bambalapitiya, Flower Road, Union Place, and Pelawatte operating as dedicated Private Banking Centres, while three other branches are located in Nugegoda, Jaffna, and Kandy.

To support customers during the transition period, NTB has ensured that multiple access points and support channels remain available. Customers may continue to bank through the nearest NTB branch, contact NTB’s 24-hour Help Desk via +94 11 441 4151, and access digital banking services through the Nations Direct mobile app. Dedicated transfer‑related information and FAQs are also available at https://migration.nationstrust.com

Additionally, arrangements were made to extend branch support across two weekends as part of the transition programme.

Business

Amana Takaful named Sri Lanka’s Most Awarded Insurance Company

Published

23 hours ago

2026/05/4

Thilina Walpola

(L) Siva Karthigun, Chief Executive Officer – General and Gehan Rajapakse, Chief Executive Officer – Life

Amana Takaful Insurance has been recognized as Sri Lanka’s Most Awarded Insurance Company for 2026 by LMD Magazine, marking its third consecutive year of achievement. This recognition reflects the company’s consistent focus on delivering value across both its Life and General businesses, supported by customer-centric solutions, operational discipline, and continued innovation.

Over the years, Amana Takaful has strengthened its market position by enhancing service delivery, investing in digital capabilities, and expanding access to insurance solutions for a wider segment of Sri Lankans.

Commenting on the recognition, Siva Karthigun, Chief Executive Officer – General, stated: “This recognition reflects the discipline and focus we maintain across our operations to deliver consistent outcomes for our customers. Our continued investments in process improvements, digital capabilities, and service excellence have enabled us to strengthen our responsiveness and reliability, ensuring we meet the evolving expectations of our customers across all touchpoints.”

Commenting further, Gehan Rajapakse, Chief Executive Officer – Life, stated: “This recognition reflects the consistency of our efforts in delivering meaningful value to our customers, while continuously strengthening our capabilities across both Life and General businesses. As we move forward, our focus remains on enhancing accessibility, leveraging digital innovation, and ensuring our solutions remain relevant to the evolving needs of Sri Lankans, while maintaining the highest standards of service and reliability.”

Notably, a significant portion of these awards were received for digital excellence, underscoring the company’s continued progress in its digital transformation journey. Amana Takaful’s investments in technology-driven solutions, process automation, and enhanced digital customer experiences have played a key role in strengthening accessibility, efficiency, and service delivery across both Life and General businesses.

The recognition further reinforces Amana Takaful’s standing within the industry, highlighting its ability to sustain performance and adapt in a dynamic environment. For Every Sri Lankan, as one.