Business
Sampath Bank standing committed to ‘reinvigorating economy’
Sampath Bank has continued its strong contribution to public financing, with an effective tax rate exceeding 56% for the period ending June 2023. These contributions, which include Income Tax, VAT on Financial Services, Social Security Contribution Levy, Crop Insurance Levy, and other indirect taxes, underscore the Bank’s role as a significant participant in Sri Lanka’s economic landscape, a Sampath Bank press release said.
The release adds: ‘Sampath Bank’s dedication extends beyond financial matters, as demonstrated by its impactful Corporate Social Responsibility (CSR) initiatives. The Bank’s flagship project “Weweta Jeewayak,” a tank restoration endeavor, and the “A Breath to the Ocean” initiative aimed at restoring the oceanic ecosystem, reflect the Bank’s commitment to sustainability, environmental preservation, and community well-being.
‘During the first half of 2023, Sampath Bank reported robust financial performance, with a profit before tax (PBT) of Rs 13.2 Bn and a profit after tax (PAT) of Rs 7.7 Bn, representing growth of 46.6% and 8.1% respectively compared to 1H 2022.
Key financial highlights for 1H 2023 compared to the same period in 2022 include:
Growth in Net Interest Income (NII) supported by higher AWPLR.
A 13.6% increase in net fee and commission income driven by trade-related operations.
A decline of exchange income due to LKR appreciation against USD.
A significant 74.4% decline in impairment provision on loans and investments.
Operating expenses increased by 19.1%.
A 104% increase in total tax expenses due to the upward revision in income tax rate and the introduction of SSCL.
The Group’s PBT and PAT for 1H 2023 were Rs 13.4 Bn and Rs 7.6 Bn respectively, reflecting growth of 39.3% and 3.6% respectively.
‘Sampath Bank’s capital adequacy ratios continued to improve, with CET 1, Tier 1, and total capital ratios standing at 13.89%, 13.89%, and 17.36% respectively as of June 30, 2023. This improvement is attributed to several factors, including a Tier 2 capital infusion, profit generation in 2023, and a decline in risk-weighted assets due to LKR appreciation.
‘In recognition of its exceptional performance, Sampath Bank was honored with the esteemed title of “Best Bank in Sri Lanka for 2023” at the Euromoney Awards ceremony held in Hong Kong. This prestigious award, the fifth time the Bank has received it, underscores Sampath Bank’s enduring excellence and positive impact on society.
‘Sampath Bank’s total assets increased by Rs 97 Bn (an annualized growth of 14.6%) from Rs 1.3 Tn as of December 31, 2022, to Rs 1.4 Tn as of June 30, 2023. Despite the LKR’s appreciation against the USD, the Bank’s total deposit book grew from Rs 1.1 Tn to Rs 1.14 Tn during the same period, demonstrating strong customer confidence.
‘Looking ahead, Sampath Bank remains committed to navigating challenges, contributing to the economy, supporting its customers, and positively impacting society through its sustainable initiatives. The Bank’s enduring resilience and commitment to excellence position it as a cornerstone of stability in the Sri Lankan financial landscape.’
CSE trading in the early part of yesterday was positive but such momentum petered out during the latter part of the session because investor confidence has not improved the market’s attractiveness.
The Central Bank’s decision to keep policy rates unchanged has also not created a positive impact on the market. Both indices moved downwards. The All Share Price Index went down by 60.4 points, while the S and P SL20 declined by 10.05 points.
Turnover stood at Rs 1.64 billion with five crossings. Those crossings were reported in HNB, which crossed 173,000 shares to the tune of Rs 240 million; its shares traded at Rs 310, VallibelOne 1 million shares crossed for Rs 58.5 million and its shares traded at 310.
Richard Pieris 1.79 million shares crossed for Rs 46.6 million; its shares traded at Rs 26, JKH 2 million shares crossed for Rs 40.2 million; its shares traded at Rs 20.10 and Sampath Bank 260,000 shares crossed for Rs 30.3 million; its shares traded at Rs 121.25.
In the retail market top six companies that have mainly contributed to the turnover were; CCS Rs 135 million (1.64 million shares traded), Commercial Bank Rs 100 million (682,000 shares traded), CT Land Rs 75 million (three million shares traded), Valibel One Rs 68.7 million (1.2 million shares traded), Sampath Bank Rs 67.5 million (5.50 million shares traded) and HNB Rs 57.5 million (183,000 shares traded). During the day 88.2 million share volumes changed hands in 10803 transactions.
It is said that during the day banking sector performed well, especially HNB, and the manufacturing sector was the second largest contributor to the turnover, mainly with JKG and CCS.
Yesterday, the rupee was quoted at Rs 29.40/49 to the US dollar in the spot market, stronger from Rs 296.55/65 on the previous day, dealers said, while bond yields were steady.
A bond maturing on 15.10.2028 was quoted at 10.00/02 percent, down from 10.00/10 percent.
A bond maturing on 15.09.2029 was quoted at 10.20/30 percent, down from 10.25/35 percent.
A bond maturing on 15.10.2030 was quoted at 10.30/40 percent, down from 10.35/50 percent.
A bond maturing on 15.12.2032 was quoted at 10.55/75 percent, down from 10.65/80 percent.
An auction of Rs. 100,500 million Treasury bills was ongoing.
The Central Bank was quoting a rate of Rs 292.3299 for buying and Rs 300.8497 for selling for US dollar telegraphic transfers; 1.9365 buying and 2.0126 selling for Japanese yen for telegraphic transfers; and Rs 376.7046 buying and Rs 390.8964 selling for sterling pound for telegraphic transfers.
By Hiran H Senewiratne
The Ceylon Electricity Board (CEB) has announced an international call for proposals to develop two 50 MW wind farm facilities in Mullikulam on a Build, Own & Operate (BOO) basis. The initiative aims to bolster Sri Lanka’s renewable energy capacity, aligning with the government’s strategy to increase the share of clean energy in the national grid.
The bidding process, launched on behalf of the Cabinet Appointed Negotiating Committee, invites local and international project proponents to finance, design construct and maintain the wind farms under a 20-year agreement. The deadline for proposal submissions is June 12, 2025.
A senior electrical engineer at the CEB, speaking on the significance of the project, told The Island Financial Review: “This initiative is a crucial step towards achieving Sri Lanka’s renewable energy goals. Wind power is a key component of our strategy to reduce reliance on fossil fuels and enhance energy security.”
According to the CEB, interested parties can obtain the Request for Proposal (RFP) document by paying a non-refundable fee of Rs. 300,000 (or USD 1,035 for foreign applicants). The RFP provides comprehensive details on project requirements and evaluation criteria.
“Given the global shift towards clean energy, we expect strong interest from both local and international developers. This project not only supports our sustainability targets but also creates investment opportunities in Sri Lanka’s energy sector, the engineer added.
The wind farm project is part of a broader initiative to achieve 70% renewable energy generation by 2030, a key target set by the Ministry of Energy. Experts believe that projects like these will play a vital role in stabilizing electricity supply and reducing carbon emissions.
by Ifham Nizam
LOLC once again emerges as the “People’s Financial Services Brand of the Year”, securing the prestigious title bestowed at the SLIM Kantar People’s Choice Awards 2025 for an unparalleled ninth consecutive year. This recognition, conferred through a comprehensive consumer research, reflects the brand’s firm connection with the Sri Lankan people and its consistent leadership in financial services.
Unlike many industry awards, the SLIM Kantar People’s Choice Awards is determined by independent consumer research conducted by Kantar, a global leader in brand insights. Instead of relying on a judging panel, this recognition is purely based on public perception, brand recall, and customer loyalty, making it one of the most authentic measures of a brand’s standing. Securing this title for ninth consecutive years highlights LOLC’s deep-rooted connection with its customers and its ability to evolve with their changing needs while maintaining a firm commitment to excellence.
Kapila Jayawardena-
Group Managing
Director/CEO of LOLC
Holdings PLC
LOLC’s continued success is driven by its assurance to financial empowerment, innovation, and inclusiveness. It has redefined accessibility to financial services by reaching underserved communities and pioneering digital transformation. Beyond its core financial solutions, LOLC is a brand that stands with the people, for the people, embodying resilience and hope through the years. In times of crisis, be it economic hardships or global disruptions, LOLC has remained a pillar of strength, stepping in when the nation needed it most. This deep-rooted connection with the people is what truly sets LOLC apart. The company has also been recognized for initiatives that create real social impact, such as the Divi Saviya Humanitarian Project, which uplifts vulnerable communities through sustainable support.
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