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Weak demand for consumer electronics expected to continue for another 12-18 months

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‘Consumer income has yet to adjust to the higher cost of living’

‘Increase in taxes in early 2023 has weakened purchasing power’

by Sanath Nanayakkare

The electronic products sales market in Sri Lanka is expected to show sustained weakness in the next 12-18 months due to prolonged weak demand, according to a report from Fitch Ratings.

Fitch expects Sri Lanka’s GDP to contract by 1.4% in 2023 (2022: 7.8% decline), before growing modestly by 3.3% in 2024, indicating only a gradual recovery in economic activity.

“Consumer income has yet to adjust to the higher cost of living while the increase in taxes in early 2023 weakened purchasing power”, Fitch states.

The ratings agency expects sales volumes of Singer Sri Lanka, the foremost consumer durables retailer in the country, to rise in the low single digits in the financial year 2024.

The report titled, ‘Fitch Downgrades Singer (Sri Lanka) PLC to ‘A(lka)’; Outlook Stable’, the agency points out that the downgrade reflects the sustained deterioration in Singer’s financial profile such that Fitch-forecasted EBITDAR fixed-charge cover will fall to 0.7x in the financial year ending 31 March 2024 (FY24), compared with 1.1x in FY23.

“The Stable Outlook reflects Singer’s adequate liquidity supported by its access to domestic banks. We expect that the company’s EBITDA will recover gradually in the next two years supported by a slow improvement in demand amid falling interest rates and the removal of the ban on consumer durable imports since October 2023,” Fitch says.

However, Fitch doesn’t expect Singer Sri Lanka’s fixed charge cover to improve to above 1.2x – the level commensurate with a higher rating – until after FY25.

“We forecast Singer’s sales volumes to grow by double digits in FY25, due to a gradual recovery in income supported by a revival in the agriculture sector, which accounts for 30% of the population, salary increments across the public and private sectors, and a full year’s impact of pent-up demand after the removal of a ban on consumer-durables imports in October 2023. Hire-purchase (HP) and credit sales should also rise with interest rates almost halving from the highs in FY23, and we expect Singer will selectively grow its HP book, which shrank in the last few years, to cater to this demand. We expect Singer’s EBITDAR margin to improve to around 9% in FY25, from 3.3% in 1HFY24, benefitting from revenue growth, prudent inventory management, and a shift towards high-margin product categories.

“We estimate Singer’s cash interest to reduce by 35% in FY24 as interest rates fall. Market interest rates have fallen to 13% by November 2023, from 30% a year ago. Given most of Singer’s debt is short-term, the company should be able reprice faster at favourable rates. However, we do not believe Singer’s EBITDAR generation in FY24 will be sufficient to cover the reduced interest cost,” Fitch says.

According to the report, Singer’s rating is not notched for support from its stronger parent, Hayleys PLC, as they believe Hayleys has limited incentive to provide support according to their Parent and Subsidiary Linkage Rating Criteria.

“The ‘Low’ legal incentive stems from the absence of corporate guarantees from Hayleys on Singer’s debt, and the lack of cross-default clauses between the two entities. Hayleys is a highly diversified group, resulting in limited operational synergies with Singer. Furthermore, Singer has an independent management team and its brand is separate from that of Hayleys. Therefore, the operational incentive to support is also regarded as ‘Low’, Fitch says.



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HNB Assurance Recognized with Merit Award at the Great HR Awards 2025

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Team HNBA at the Great HR Awards

HNB Assurance PLC was recognized at the Great HR Awards 2025, receiving the Merit Award in the Finance, Insurance, Real Estate, and Investment sector. This recognition reflects the company’s continued commitment to strengthening its people strategy, nurturing a progressive culture, leveraging technology and maintaining strong industrial relations.

Sharing his thoughts on this accomplishment, Lasitha Wimalarathne, Executive Director / Chief Executive Officer of HNB Assurance PLC, stated, “This recognition reiterates our belief that people are the true drivers of our success. Over the years, we have invested significantly in building an environment where our teams feel inspired and supported to deliver their best. As we continue to grow as one of Sri Lanka’s best insurance companies, this award reflects our ongoing efforts to build a workplace where both our people and our business can thrive. My sincere thanks go out to our HR team for continuously driving these initiatives.”

Commenting on the award, Navin Rupasinghe, Head of HR / DGM at HNB Assurance PLC, said, “Our people-first philosophy shapes every HR initiative we design, from strengthening learning pathways and leadership development to enhancing employee well-being and engagement. This recognition validates our ongoing efforts to build a workplace culture grounded in trust, inclusivity and performance. As we look ahead, we remain committed to evolving our HR practices to meet the expectations of our people and the future of work. My sincere thanks to the CIPM for this recignition.”

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MullenLowe Sri Lanka named Creative Agency of the Year in South Asia

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MullenLowe Sri Lanka has been awarded Gold as the Rest of South Asia’s Creative Agency of the Year at the Campaign Agency of the Year Awards 2025, held recently at Mumbai’s ITC Maratha Hotel. The accolade marks a landmark year for the agency, driven by breakthrough ideas, ambitious brands, and a surge in economic activity.

Campaign Agency of the Year – South Asia 2025 (Rest of South Asia – Creative Agency) awarded to MullenLowe Sri Lanka

Guided by a clear creative vision and extensive category expertise across 111 brands in 33 sectors, MullenLowe strengthened its position through strategic leadership appointments, talent acquisition, and the integration of AI-enabled tools. These initiatives created an environment where creativity, learning, and commercial impact worked in tandem, supporting long-standing client relationships and consistent new business momentum.

Thayalan Bartlett, Executive Chairman, said, “Our growth is rooted in a people-first, creative-centred culture. By attracting top talent and focusing on continuous upskilling, we have enriched both our creative and strategic capabilities.”

The agency’s innovation was further enhanced by Fever, its AI-enabled production studio, and LoweGo, a subscription-based design unit, enabling faster and more scalable solutions for modern marketers. Training programs, including an international AI workshop in Baku for top creative minds, helped unify teams around technology-driven creativity, leading to MullenLowe’s highest Effie points haul in a decade.

Harendra Uyanage, Senior Vice President and Executive Creative Director, added, “This recognition celebrates a team that constantly stretches its creative boundaries, transforming every brief into opportunity.”

The win adds to a series of recent accolades, including Most Effective Agency of the Year at the 2024 Effie Awards, and multiple awards at Dragons of Sri Lanka and SLIM Digis 2025, cementing MullenLowe’s vision to become Sri Lanka’s most commercially impactful creative company by 2030.

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ComBank named Sri Lanka’s Best Trade Finance Bank at Euromoney Awards 2025

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Com Bank honoured for outstanding support to Sri Lanka’s trade sector

The Commercial Bank of Ceylon PLC was named Sri Lanka’s Best Trade Finance Bank at the prestigious Euromoney Transaction Banking Awards 2025, in recognition of the Bank’s strong performance and continued contribution to supporting Sri Lanka’s export and import sectors.

This global recognition from Euromoney, a leading authority in financial markets, celebrates institutions that demonstrate innovation, leadership, and measurable impact in transaction banking across cash management, payments, trade finance, and technology. Commercial Bank is Sri Lanka’s clear market leader in trade finance, commanding a 21% share in exports and a 14.26% share in imports, demonstrating its strong presence across both segments.

In 2024, the Bank supported over US$ 5 billion in trade transactions, underscoring its unmatched role in enabling the flow of goods, services, and foreign exchange. Its leadership has also been recognised regionally by the Asian Development Bank (ADB), which named Commercial Bank its Leading Partner Bank in Sri Lanka for the fourth consecutive year under the Trade and Supply Chain Finance Programme.

At the forefront of Commercial Bank’s recent innovations is ComBank TradeLink, Sri Lanka’s first fully integrated, end-to-end digital trade finance platform. The system brings all trade finance operations – from Letters of Credit to export collections and shipping guarantees – into one secure online interface, providing customers real-time visibility, faster processing, and paperless convenience. This digitalisation drive has redefined the client experience, reduced manual processes and improved turnaround times across thousands of transactions.

The Bank’s commitment to advancing Sri Lanka’s trade sector extends beyond technology. Through initiatives such as the ComBank Trade Club, which facilitates connections between buyers and suppliers both locally and internationally, and ComBank LEAP | GlobalLinker, a digital business networking platform for SMEs, the Bank is actively building bridges between Sri Lankan entrepreneurs and global markets. Its Diribala Exporter Development Programme further empowers micro, small, and medium enterprises to become export-ready, providing access to expert guidance, training, and financial support.

Reflecting on the award, Commercial Bank said the recognition from Euromoney was a tribute to the trust placed in the Bank by Sri Lanka’s exporters and importers, and to the dedication of its trade finance teams who continue to innovate and deliver excellence in a rapidly evolving global landscape.

As Sri Lanka’s largest private sector bank and the first to surpass US$ 1 billion in market capitalisation, Commercial Bank continues to lead in supporting national trade, driving digital transformation, and shaping a more inclusive and resilient export economy, the Bank said.

Commercial Bank was the first bank in the country to be listed among the Top 1000 Banks of the World, and has the highest Tier I capital base among all Sri Lankan banks. The Bank is the largest private sector lender in Sri Lanka and the largest lender to the country’s SME sector. Commercial Bank is also a leader in digital innovation and is Sri Lanka’s first 100% carbon-neutral bank.

Commercial Bank operates a network of strategically located branches and automated machines island-wide, and has the widest international footprint among Sri Lankan banks, with 20 branches in Bangladesh, a fully-fledged Tier I Bank with a majority stake in the Maldives, a microfinance company in Myanmar, and a representative office in the Dubai International Financial Centre (DIFC). The Bank’s fully owned subsidiaries, CBC Finance Ltd. and Commercial Insurance Brokers (Pvt) Limited, also deliver a range of financial services via their own branch networks.

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