Business
Union Bank records ‘resilient performance’ despite challenging environment in 3Q
Union Bank continued to focus on its prudent cost and portfolio management strategy to remain resilient amidst a volatile macro-economic landscape that prevailed through the third quarter of the year, a bank press release said.
It adds – ‘The Covid-19 outbreak weakened the country outlook substantially and affected the overall business landscape of the country. Amidst a challenging economic landscape, the Average Prime Lending Rate (AWPLR) dropped by approximately 400bps YoY while the Treasury Bill rates continued on a downward trend during the period under review. In line with directives of the Central Bank, Union Bank implemented a downward revision of interest rates on its various lending products including credit cards. The Bank took measures to provide loans at concessionary rates for Working Capital requirements of SMEs and exporters by participating in the CBSL credit schemes including the Saubhagya Covid-19 Renaissance Facility.
‘In a backdrop where the negative impacts of Covid-19 on the economy, businesses and consumers continued to weigh down on the banking industry, the Bank focused on continuing the Covid-19 related benefits schemes granted to its customers in a bid to support their financial recovery while focusing on maintaining business operations in compliance with health safety guidelines set by health officials to ensure safety of staff, customers and other stakeholders.
‘Amidst mounting challenges, Union Bank increased its liquidity buffers on a prudent basis and has been able to maintain a strong excess liquidity position. During the period under review average fixed deposits remained stable whereas average CASA ended at Rs.23,805 Mn, with an increase of 18% over the comparative period.
As a consequence of the Bank’s policy to support its customers during these tough times and a decline in interest rates, its Net Interest Margin (NIM) declined from 3.8% to 3.3% over the comparative period.
Late payment fee and other fee waivers provided in line with the CBSL guidelines aimed at supporting the customers affected by the pandemic, alongside a decline in economic activity, caused a reduction of the overall fee income by 25% over the comparative period.
‘The Treasury performed notably within the period under review, recording impressive trading profit/capital gains with a significant YoY increase of 108%. Other Operating Income of the Bank increased on the back of exchange rate deflation during the said period.
‘Amidst the challenging environment, the Operating Income of the Bank for the quarter was Rs. 1,692 Mn, and reduced by 3% over the comparative quarter. The Total Operating Expenses were prudently managed through bank-wide cost management initiatives and reduced by 5% QoQ to Rs. 941 Mn.
‘Consequently, Pre-impairment profits of the Bank were Rs. 751 Mn for the quarter and was similar to that of the comparative quarter. While the Bank’s actual credit losses were low, the Bank recorded significant provisions through management overlays to account for the deteriorating environment, leading to a 31% QoQ increase in impairment charges. The entire day one loss on account of Covid-19 moratoriums was recorded under the impairment charge as per the non-substantial modification method which is in line with the Sri Lanka Accounting Standard – 9 (SLFRS 9).’
The Central Bank of Sri Lanka today (07) presented its flagship publication, the Annual Economic Review for 2024 (AER 2024), to President and Minister of Finance, Anura Kumara Disanayake, highlighting the steady progress of Sri Lanka’s economic recovery following the country’s most severe downturn in recent history.
The report was officially handed over by Dr. P. Nandalal Weerasinghe, Governor of the Central Bank, during a special ceremony held at the Presidential Secretariat.
AER 2024 comprises four main chapters: Macroeconomic Developments, Conditions of the Financial System, Review of Central Bank’s Policies and Macroeconomic Outlook.
According to the Review, the Sri Lankan economy showed significant signs of recovery in 2024, following the deep economic crisis experienced two years ago. The recovery trajectory, though challenging, has been notably faster than that of many other debt-distressed countries.
Improvements in economic activity, a partial resurgence in purchasing power and reduced uncertainty are among the key positive indicators noted in the report.
The event was attended by Dr. Nandika Sanath Kumanayake, Secretary to the President, K. M. Mahinda Siriwardena, Secretary to the Treasury, Mrs. K. M. A. N. Daulagala, Senior Deputy Governor, Dr. C. Amarasekara, Assistant Governor, Dr. (Mrs.) S. Jegajeevan, Director of Economic Research and Dr. L. R. C. Pathberiya and Additional Director of Economic Research at the Central Bank Dr. V. D. Wickramarachchi.
[PMD]
Business
IceWarp expands into Sri Lanka, fostering European innovation in collaboration with FentonsIT
IceWarp, a global leader in business communication solutions, has officially launched its cutting-edge platform in Sri Lanka, bringing European expertise in email and collaboration solutions to support the country’s evolving business landscape.
This expansion is driven by a strategic partnership with Fentons Information Technology (FIT), the Information Technology arm of Hayleys Fentons Limited.
The grand launch event held at The Kingsbury Colombo on 4th April, 2025, was graced by several distinguished guests, including Chief Guest Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC.
The presence of Adam Paclt, Global CEO of IceWarp, and Pramod Sharda, CEO for India and the Middle East of IceWarp, along with their global team, highlighted the significance of this expansion. Industry experts, government officials, corporate leaders, and CIOs from the banking, financial services and insurance sectors were in attendance as well, reflecting strong local interest in IceWarp’s European expertise.
With this launch, Sri Lankan businesses now have access to an affordable, scalable and secure alternative to Microsoft 365 and Google Workspace. IceWarp’s advanced Collaboration Suite integrates a wide range of tools into a single, unified platform designed to streamline communication and boost productivity. Offering flexible hybrid deployment options and cost-efficient solution, IceWarp enables organisations to optimise their operations without compromising security or functionality.
Ceylon Energy and HJT China have successfully completed the Mahiyangana-Kappalthurei 33kV power distribution lines and the Uhana Gantry as part of Sri Lanka’s Supporting Electricity Supply Reliability Improvement Project (SESRIP). Funded by the Asian Development Bank ($42 million), SESRIP aims to expand energy access in underserved regions, including conflict-affected areas and provinces like Uva and North Central.
The project’s infrastructure spans over 270 km of 33kV lines, 13 switching gantries, and 2,372 km of low-voltage extensions.
The projects connect 35,000+ households and improve reliability for 493,000+ consumers; integrates renewables to reduce losses.
The projects’ notable components include: Mahiyangana-Bibila Line: 36 km with 147 steel towers and Kappalthurei-Sixth Mile Post Line: 14 km with 58 towers.
Ceylon Energy Chairman Madushanka Fernando hailed it as a ‘new beginning of a brighter era’, emphasising the project’s role in uplifting rural communities and driving sustainable development.
The initiative underscores Sri Lanka’s commitment to inclusive, reliable energy and climate resilience.
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