Business
Sampath Bank maintains a strong value proposition to all its stakeholders amidst ongoing economic challenges

Sampath Bank continued to reinforce its commitment to all stakeholders notwithstanding the ongoing economic challenges. Stepping in to support the customers affected by the prolonged economic downturn, the Bank continued to offer tailormade options and alternative repayment plans to help its customers sustain their businesses while staying true to its ethos of customer value creation. Similarly, the interests of another stakeholder group of the Bank, the shareholders, were kept in mind by paying the industry’s highest cash dividend of Rs 3.45 per share and a further Rs 1.15 per share in the form of scrip dividend.
The Bank also continues to honor its commitments towards the community via the “Weweta Jeewayak” tank restoration initiative as well as the Oceanic Ecosystem Restoration initiative titled “A Breath to the Ocean” which includes coral restoration, mangrove planting, and turtle conservation programs. The Bank continues to honour its commitment towards the community by focusing on environmental sustainability and towards that end completed the restoration of the Halgahawala forest reserve which it will continue to support even after the project’s conclusion.
The Bank succeeded in raising Rs 10 Bn in Tier 2 capital via a debenture issue in February 2023. Despite the depressing economic outlook in the Country, the issue was oversubscribed – a testament to the investor confidence placed in Sampath Bank and widespread acceptance of the stability and prudent governance of the Bank. The newly obtained capital will enable the Bank to rise above and prevail as one of the Country’s pre-eminent Bank.
Sampath Bank registered a profit before tax (PBT) of Rs 4.5 Bn and a profit after tax (PAT) of Rs 2.6 Bn for the three months ended 31st March 2023, indicating a decline of 30.5% and 44.3% respectively from the figures reported in 1Q 2022. This decline was mainly attributed to the exchange losses recorded during the quarter as a result of the appreciation of LKR by Rs 39 against the USD on its foreign currency reserves. All other income lines recorded performance well above the previous period.
Key highlights of financial results declared by Sampath Bank and the Group for 1Q 2023 compared to 1Q 2022:
* Strong NII buttressed by the higher AWPLR.
* 19% increase in net fee and commission income driven by trade-related operations
* As a result of the appreciation of LKR against USD by Rs 39 in 1Q 2023 vs depreciation of Rs 93.75 in 1Q 2022, the exchange income declined by Rs 10.9 Bn.
* 27% increase in impairment provision on loans and advances.
* The high inflationary conditions resulting in 22% increase in operational expenses.
* The upward revision in Income Tax rate and the introduction of SSCL resulting in higher tax expenses.
* Group’s PBT and PAT for 1Q 2023 was Rs 5 Bn and Rs 3 Bn respectively, reflecting a decline of 27% and 38% respectively.
Impairment charge on loans and advances: In the first quarter of 2023, the impairment charge for loans and advances increased by 27% compared to the same period in the previous year.
Impairment on Individually Significant Loan (ISL) Customers:
During the first quarter of 2023, the Bank evaluated a substantial portion of its loans and advances under the ISL category, taking into account both their financial strength and external macroeconomic pressures. Consequently, Rs 4.6 Bn was charged as impairment provisions against ISL customers in the first three months of 2023, an increase of Rs 1.3 Bn compared to the same period in 2022.
Even though a slow recovery was witnessed in some vulnerable industries, the Bank prudently maintained the previous level of impairment provisioning against ISL customers in these industries as it did not deem that the industry risk had significantly declined.
Collective Impairment: Impairment models used in 2022 were continued in 1Q 2023 to ensure adequate buffers were in place to absorb any potential credit risk that could arise in future. This cautious strategy was in response to the uncertain economic conditions witnessed both locally and globally. The Bank continued to maintain in 2023, the allowance for overlay which it applied in 2022. The probability weightage applied to the worst-case economic scenario remained unchanged during the reporting period.
During the period under review, the Bank also proceeded to reclassify customers from Stage 1 to Stage 2 considering their potential credit risk. Meanwhile customers operating in Risk Elevated Industries were also reclassified under Stage 2, with additional provisions recognized against them.
Impairment charge on other financial instruments:
The impairment charge on other financial instruments amounted to Rs 0.4 Bn for 1Q 2023, a 95% reduction compared to Rs 6.7 Bn reported in the corresponding period of the previous year. In 1Q 2022, the Bank recognised a substantial impairment charge against FCY denominated government securities in response to the downgrade of Sri Lanka’s sovereign rating in April 2022 and the announcement by the Government of Sri Lanka (GoSL) on the restructuring of the country’s external debt through an IMF-supported economic adjustment program. No such provisioning was deemed necessary in 1Q 2023 as substantial provisioning had already been recognized against the said instruments as at 31st December 2022.
Operating Expenses.
Operating expenses in 1Q 2023 showed a 22% increase in comparison to the first quarter of 2022. The 41% increase in other expenses could be attributed to the prevailing inflationary conditions and other factors such as LKR depreciation, increased taxes and import restriction. Personnel costs too grew by 7.4% in 2023 mainly owing to annual salary increases.
Tax Expenses
Total effective tax rate of the Bank increased to 57% in 1Q 2023 from 42% reported in 1Q 2022, owing to the combined effect of the newly introduced Social Security Contribution Levy (SSCL) and the increase in income tax rate.
Key Ratios
The Return on Average Shareholders’ Equity (after tax) decreased to 8.37% as at 31st March 2023 from 10.95% reported at the end of the year 2022. Return on Average Assets (before tax) stood at 1.38% as at 31st March 2023 as against the 1.16% reported as at 31st December 2022.
Capital Ratios
The Bank’s latest capital adequacy ratios improved further in 1Q 2023 from the figures reported in the previous quarter in addition to their being well above the regulatory minimum requirements. As at 31st March 2023, Sampath Bank’s CET 1, Tier 1 and total capital ratios were at 12.51%, 12.51% and 16.12% compared to 11.92%, 11.92% and 14.27% respectively at the end of 2022. These increases are attributed to two main reasons – Rs 10 Bn worth of Tier 2 capital infusion in February 2023 and decline in risk weighted assets resulting from the LKR appreciation.
Assets and Liabilities
Total assets of the Bank declined by Rs 18 Bn (by 1.4%) from Rs 1.32 Tn as at 31st December 2022 to Rs 1.31 Tn as at 31st March 2023. This decline was mainly the result of the Rupee value reduction in foreign currency denominated assets on the back of the LKR appreciation against the USD.
Similarly, the total Advances declined by Rs 22 Bn (by 2.4%) in the first three months of 2023 from Rs 920 Bn as at 31st December 2022 to Rs 898 Bn at the end of the reporting period due to the LKR appreciation against the USD.
Sampath Bank’s total deposit book declined from Rs 1.1 Tn reported at the end of 31st December 2022 to Rs 1.07 Tn at the end of 31st March 2023, a decline of Rs 32 Bn (by 2.9%). The CASA ratio at the end of 1Q 2023 was 32.8% compared to 32.7% reported at the end of 2022.
Dividend
The Shareholders of Sampath Bank at the Annual General Meeting held on 30th March 2023 approved the final Cash Dividend of Rs 3.45 per share and Scrip Dividend of Rs 1.15 per share for the financial year 2022. In its 1Q 2023 Financial Statements, the Bank made a provision of Rs 5.3 Bn to facilitate the payment of the approved final dividend, while Rs 1.1 Bn was capitalized for the purpose of creating shares under scrip dividend. The Bank paid the dividend in April 2023.
Business
US trade war poses risks to Sri Lanka’s creditworthiness, warns Fitch

Meanwhile, tensions between the world’s two largest economies remain high
By Sanath Nanayakkare
Sri Lanka’s already vulnerable financial position could be further threatened by the ongoing US trade war, according to a recent analysis by Fitch Ratings.
The global ratings agency highlights that Sri Lanka, currently rated CCC+, is particularly susceptible to negative impacts if its export earnings are hit by the escalating tariffs.
Fitch Ratings, Hong Kong, in a press release issued on April 15, 2025, warned that increasing US tariffs would weigh on the credit metrics of many sovereigns in the Asia-Pacific (APAC) region. The report emphasised that APAC’s high trade openness and reliance on US demand make it especially vulnerable to the fallout from the trade war.
While the 10% tariffs imposed by the US on most countries are slightly below Fitch’s earlier projections, the agency believes that Asian economic growth will slow as exports and export-oriented investments suffer from tariffs and increased uncertainty.
“This slowdown, coupled with weaker commodity prices and exchange rate adjustments, will affect APAC sovereigns to varying degrees. Several economies in the region, including China, Vietnam, Taiwan, Thailand, and Korea, rely heavily on manufacturing exports and investments, with the US serving as a major export market. These economies could face significant challenges as a result of the trade war,” it stated.
Fitch noted that government policy responses would be crucial in determining the ultimate impact on APAC sovereign ratings. While some higher-rated jurisdictions like China, Singapore, and Taiwan may have the fiscal space to implement stimulus measures, some others, including Sri Lanka, have limited headroom due to high debt levels and constrained fiscal consolidation since the pandemic and its own economic crisis.
The ratings agency also cautioned that the US dollar could appreciate against some APAC currencies, potentially increasing debt burdens for countries with a large share of foreign-currency debt. Furthermore, foreign-exchange reserves could shrink if authorities intervene to support their currencies, further straining economies with low external buffers like Sri Lanka.
Fitch concluded that countries with relatively low external buffers, such as Bangladesh and Sri Lanka, were particularly at risk if their export earnings were negatively impacted by the tariffs.
Meanwhile, tensions between the world’s two largest economies remain high.
After the White House website claimed that imports from China to the US would face tariffs of up to 245 percent, the Chinese Foreign Ministry warned yesterday that China would pay no attention to the US’s further tariff numbers game, and it would take ‘resolute countermeasures’ and ‘fight to the end’ if Washington persisted in substantially infringing on China’s rights and interests.
China Daily – the ruling Chinese Communist party’s English-language mouthpiece published a sharply worded editorial on April 15, rejecting U.S. President Trump’s repeated claims that the US had been ‘ripped off’ by China.
“The U.S. is not getting ripped off by anybody. It is taking a free ride on the globalisation train and is living beyond its means,” China Daily argued.
Business
CEAT’s share in Sri Lanka’s Original Equipment tyre market tops 90%

Now supplies 11 automobile brands assembling vehicles in Sri Lanka, contributing to local value addition
Six years after it entered into its first Original Equipment Manufacturer (OEM) partnership in Sri Lanka, CEAT Kelani Holdings has grown into a significant contributor of value addition to the country’s burgeoning automobile assembly industry.
Locally-manufactured CEAT tyres are now original equipment in 11 brands of vehicles rolling off assembly lines in Sri Lanka, ranging from Sports Utility Vehicles (SUVs), cars, buses, lorries, pick-up trucks, motorcycles and scooters, the company said.
These tyres, many of them designed precisely to vehicle manufacturer specifications, fit more than 30 models of vehicles, including 16 bus models and five models of motorcycles now assembled in Sri Lanka.
CEAT Kelani currently supplies more than 150,000 Original Equipment (OE) tyres annually to the local vehicle assembly industry covering more than 90 per cent of vehicles assembled in Sri Lanka, and the OE segment accounts for 12 per cent of the CEAT branded tyres sold in the domestic market.
“The OEM partnerships a manufacturing brand like CEAT has entered into are extremely significant to all tyre users, because they demonstrate the automobile manufacturers’ confidence in the quality and performance of the products,” CEAT Kelani Chief Operating Officer Mr Shamal Gunawardene observed. “These partnerships are based on stringent evaluations of our tyres by experts and are based on CEAT’s ability to satisfy the technical requirements of each type of vehicle.”
“Through OEM projects, CEAT enhances its own manufacturing capabilities, aligns with global quality standards, and tailors products to meet local needs,” he added.
Among the automobile brands that have chosen CEAT tyres as original equipment in Sri Lanka are Hyundai, JAC, JMC, DFSK, Mahindra, Micro, Tata, Lanka Ashok Leyland, TVS, Bajaj and Dyno.
Business
Citrus Resorts & Hotels witness surge in bookings and interest during festive season amidst travel boom

Citrus Resorts & Hotels, a leading name in Sri Lanka’s hospitality sector, has reported a significant increase in bookings and inquiries, reflecting a growing demand for premium travel experiences. With two iconic beachfront properties—Citrus Waskaduwa and Citrus Hikkaduwa—the brand continues to attract travellers seeking both relaxation and adventure.
Nestled along Sri Lanka’s southwestern coast, Citrus Waskaduwa stands as the ultimate getaway for those looking to unwind. Offering 140 rooms, including 7 suites, an executive suite, and a presidential suite, the resort boasts private balconies with panoramic views of the Indian Ocean.
Guests can indulge in a diverse culinary experience across multiple dining venues, including Lemon Sun Restaurant, Pomelo Hi Bar, Aqua Peel Pool Bar, and Pips n Sips Coffee Shop. The Asian-inspired Citron Senses spa further enhances the experience with expertly curated Eastern and Western treatments by skilled Balinese therapists.
Catering to families and corporate groups who plan to visit during the April holidays, the resort offers exclusive packages for fun-filled getaways as part of its Avurudu celebrations. Guests can enjoy a festive beachfront experience with traditional activities, including Beli Mal tea on arrival, a morning and evening tea table, and a special Sinhalese lunch buffet. The celebrations also feature Avurudu games with equipment setup and access to the swimming pool with changing rooms. Additionally, special rates for rooms and discounts on spirits, chasers, and bites make the occasion even more memorable.
For those seeking a vibrant beachside experience, Citrus Hikkaduwa offers the perfect mix of relaxation, culture, and adventure. With 90 stylish rooms spanning Deluxe, Superior, and Standard categories, the resort provides a comfortable stay in the heart of Sri Lanka’s southern coast.
Adrenaline seekers can enjoy scuba diving, wreck diving, snorkelling, deep-sea fishing, jet skiing, and surfing lessons—an opportunity to experience Hikkaduwa’s famous waves firsthand. Additionally, curated excursions, such as the Madu River Boat Safari, Galle City Tour, and visits to turtle hatcheries, offer guests a chance to explore the region’s natural and cultural heritage.
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