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Sri Lankan govt. seen as mulling Singapore’s Temasek Holdings’ model on SOE listing

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Renuke Wijayawardhane (L) / Nishantha Hewavithane (R)

By Ifham Nizam

The Sri Lankan government might be thinking of Singapore’s Temasek Holdings’ model on State Owned Enterprises (SOE), when it comes to listing individual companies or pooling companies in the future, a stock market expert said.

Responding to queries at an Awareness Session on Regulatory Initiatives, New Products, and Sustainability Initiatives, recently at Taj Samudra, Colombo, Colombo Stock Exchange’s Chief Regulatory Officer, Renuke Wijayawardhane said that they have no idea about what the government’s decision is on this matter: `Which company they pick as model is not our call; it’s the government’s call’.

‘The Central Bank of Sri Lanka (CBSL) decides on the role models and decisions, he explained.

Wijayawardhane added: ‘The CSE’s daily turnover of Rs. 1.7 billion is low in comparison to that of last year.’ However, he agreed there was a positive cash flow.

The CSE’s expert team pointed out that their dedication to sustainability is motivated by commercial considerations.

Plans are in the pipeline to attract institutional investors. CSE will shortly launch an Environmental, Social, and Governance (ESG) index and grading system for listed companies that place a high priority on sustainable development, they explained.

CSE Senior Vice President of Research and Strategy Nishantha Hewavithana said that the organization is dedicated to advancing sustainability among listed firms.

Responding to queries, he said that there is more than USD120 trillion in assets under management by participants in the UN’s Principles for Responsible Investment (PRI) program.

PRI is an international organization whose mission it is to advance sustainable investment by incorporating environmental, social and governance (ESG) factors into the process of making investment decisions.

Hewavithana added: ‘By the first quarter of 2024, the CSE would be bringing an ESG rating system and an ESG index with about fifteen to twenty-five businesses to the Colombo Exchange.

‘The CSE would cover all expenses associated with this endeavor since it had teamed up with an international rating organization to evaluate the ESG score of every listed firm.

`The ESG index is not always about the companies who do the best in terms of ESG. They must be sizable and profitable because they must be liquid. The index will thus be subject to the following four requirements: size, liquidity, profitability, and ESG performance as determined by the ESG rating.

‘There are 49 stock exchanges worldwide that publish ESG indices and 34 stock exchanges that have made ESG reporting mandatory in their listing rules.’



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

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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.

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USD 40.84m pipeline to secure aviation fuel supplies to BIA

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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.

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CSE activity up, turnover weak at Rs. 1.4 billion

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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.

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