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Regulators watching LOLC Development Finance PLC’s meteoric rise to fame in no time



By Hiran H. Senewiratne and Sanath Nanayakkare

The small-scale LOLC Development Finance PLC (NIFL) gaining a rapid and phenomenal increase in its share-price within just under a month is reverberating in Sri Lanka’s capital market sector today.

This is more so as there has been no price-sensitive information disclosed to the CSE by NIFL.

Shares of LOLC Development Finance closed at 618.75 rupees a share on June 29, i.e. 123.75 rupees or 25.00 percent up from the previous day.

In comparison to its end-May price of Rs. 73, closing at 618.75 rupees a share on Tuesday June 29 reflected a dramatic and controversial total gain of 747% in a little under a month.

On June 28, LOLC Development Finance shares rose to 495 rupees, up 23 percent, valuing the small finance company at 117 billion rupees making it the fourth-largest company by market capitalization.

It now has a market cap bigger than Commercial Bank, the country’s largest private commercial bank.

It is also valued more than Sampath Bank and Hatton National Bank.

NIFL is now only behind parent company LOLC, JKH and CTC.

When The Island contacted Ajith Nivard Cabraal, the State Minister of Finance, Capital Markets and State Enterprise Reforms about this development, he asked The Island to enquire it from the SEC.

In response, Tushara Jayaratne, Director SEC- External Relations and Capital Market Education said the SEC has also observed this undue pattern of the share price movement in question and has called for information from CSE. |

“The SEC too is evaluating the manner in which the transactions have taken place and we are analysing the pattern and behaviour of the investors. If we find any malpractices, we will take stern action against those whore involved in it,” Jayaratne said.

CSE Chairman Dumith Fernando said that CSE has closely monitored the situation and would take all appropriate action within the current regulatory framework.

Pressed for more information, the CSE chairman said,”As a practice, we do not comment on ongoing market surveillance related matters, but all appropriate action would be taken,”

Former Minister Eran Wickramaratne said that their should be some rationale for investors to buy shares in a small company like that.

He said that if such a thing is happening it should be investigated by the relevant authorities. Maybe outside investors are getting inside information about the parent company and are buying shares of NIFL. There must be some reason for investors at the stock market to purchase shares in this manner,” he said.

Head of Sales in Softlogic stockbrokers Eardly Kern said that NIFL’s basic earnings for the share year ended 31 March 2021 reflected 65 percent, which was also a very big amount in the stock market and its net assets value per share is Rs. 11.83. The company’s free float witnessed above shares of top 20 companies, he said.

The company has only 34,100 shares in public which is 0.01 percent out of the total issued shares and the balance 99.89 percent are with the owners and due to this inequality in the distribution of its shares, it maybe trading at an extraordinary price, Kern said.

Meanwhile Chairman of Sri Lanka Insurance Chairman Jagath Wellawatta said

Sri Lanka Insurance Corporation (SLIC) bought 2.5 million LOLC shares (LOLC parent company) for Rs. 1 billion on Tuesday.

“It was a business decision taken by our investment committee which reviews and makes such decisions on a periodical basis. When we see the opportunity, we will sell them at a higher price and make a profit in the interest of Sri Lanka Insurance Corporation,” he said.

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Altair on track



Altair - the architectural marvel

`Altair’, the iconic building in Colombo – Sri Lanka is designed by Celebrity Architect Moshe Safdie based in Boston, USA. Moshe Safdie has designed many famous iconic structures including the famous Marina Bay Sands with Sky Garden in Singapore. `Altair’ is in the league of iconic buildings of the world, such as Burj Khalifa, Petronas Tower, Marina Bay Sands, Shanghai Tower, The Parc 1 Tower in Seoul – South Korea, ICC Building & Bank of China Tower in Hong Kong to name a few. 

The project `Altair’ was launched by South City Group in Colombo in the year 2013. Due to construction related complications, force majeure reasons and an unfortunate ownership related dispute, the project has been delayed. However, South City Group has expressed with much pleasure that the Group is back in the helm of the real estate project with 100% control. Most importantly, the project is progressing well and will be ready for handing over in the next few months.

The spokesperson of South City stated that that they are getting utmost support and cooperation from the Government of Sri Lanka for completing the project. President Gotabaya Rajapaksa has appointed Mr. Sirinimal Perera, the Special Authorised Officer to steer the project towards its successful completion. South City group is also receiving steadfast backing from the esteemed customers and the project is on track to deliver what it promised since inception. The rich experience of South City Management with a huge knowledge bank will be able to soon create another landmark in Sri Lanka which will be one of the top landmarks in the world.

Altair’ is an architectural marvel and consists of two vertical tower blocks, one straight tower and another stepped tower which is in slope and leaning to the straight tower. The project is in the prime area of Colombo facing Beira Lake as well as the Indian Ocean. The finishes of the project are on high calibre, with Italian marble, wooden flooring, central air-conditioning, hot water supply and super luxurious sanitary fixtures. Additionally, there is a Resident Club on the fifth level with a garden around it and on 63rd level with the swimming pool and other recreational facilities. 

The apartments have been booked by the Crème de la crème of Sri Lanka’s social fabric, HNI and a noteworthy number of overseas residents from the Sri Lankan diaspora. Notably, ‘Altair’ a is the biggest FDI investment in Colombo for real estate to date. Altair is a symbol of a successful foreign investment and a show-piece for the Sri Lankan Government to attract further investment in Sri Lanka.

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A cheering campaign to support Team Sri Lanka at TOKYO 2020



Chethika Rajapaksha, Marketing Manager, ICL Brands, Susanthika Jayasinghe, Dushan Vas, Niloo Jayatilake, Chairperson – Women's Committee, NOCSL, Fazil Hussain, Member, Ex. Committee, NOCSL.

ICL Brands’ Eva lived up to its’ promise of ‘Leading with Confidence’ by partnering with the National Olympic Committee of Sri Lanka (NOCSL) as the Official Cheering Partner for Team Sri Lanka at TOKYO 2020, Olympics. The brand initiated a massive communication campaign, centered around the ‘Official Cheering Song’ to drive Sri Lankans to rally around Team Sri Lanka and support the 9 athletes that bear the pride of the nation at TOKYO 2020.

The launch of the ‘Official Cheering Song’ took place at the Capital Maharaja Group head office with the participation of Sri Lanka’s very own Olympic Silver Medalist, Susanthika Jaysinghe, NOCSL Women’s Committee Chairperson, Niloo Jayatilake, NOCSL’s Executive Committee Board Member, Fazil Hussain and Chethika Rajapaksha, Marketing Manager for ICL Brands. Amidst the other guests who graced the occasion were Sunil Kanojia, Group CEO – CMG, Shanthi Bhagirathan, Group Director – ICL Brands, Rakesh Khosla,CEO – ICL Brands and others.

The event was live streamed via multiple social media platforms simultaneously, reaching out to a wide audience and kicking off the cheering campaign officially. Eva’s campaign to cheer for Team Sri Lanka will continue throughout the period of TOKYO 2020 Olympics on multiple media platforms.

Susanthika Jayasinghe who graced the occasion as chief guest praised the initiative ”’I am extremely happy to see the brands of highest caliber such as Eva coming forward to support Sri Lankan athletes at Olympics. As an athlete who has represented and won for Sri Lanka on the Olympic stage, I know how much this means to our athletes in Tokyo right now”.



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Sri Lanka Development Bonds auction held during July 20-27, 2021



Date of settlement July 30, 2021

An issuance window for SLDBs will be opened with the announcement of the auction results until close of business of day prior to settlement (i.e., preferably by 3.00 pm on 29.07.2021) at the Weighted Average Fixed Rates determined for respective maturities at the auction, up to the limit specified for possible upsizing, at first come first served basis. Applications for subscription through the issuance window are to be forwarded to ‘’ within the stipulated time period.

Public Debt Department

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