With over 3,000 graduates that are currently empowering over 250 multinational and local blue-chip companies, the Informatics Institute of Technology (IIT) is renowned for producing innovators, entrepreneurs and business leaders.

Obhasha Priyanka is a multi-talented IIT graduate who is currently employed as a Software Engineer at 99X technology. Following are excerpts of the interview with Obhasha who shared his thoughts on his journey towards becoming a software engineer.

Obhasha studied at Kingswood College, Kandy and graduated with a first class honors from University of Westminster last year. He started working at 99X technology right after the final year, even before his graduation as he had to do a one year internship at a company as part of his programme curriculum. With that he started the master’s degree at IIT to gain more value.

Higher education at IIT

He thought of doing higher education at IIT, mainly because it is one of the most reputable and oldest institutes in Sri Lanka and University of Westminster has great recognition. Even at a young age Obhasha was very keen to learn about computer technology, soon after the advanced level examinations he enrolled at IIT. “It was one of the best decisions I made in my life,” he said.

During his days at IIT, Obhasha held many leadership positions like the batch representative, Education Director of IEEE students’ a branch of IIT and organized several events and sessions. The institution gave him the chance to develop such leadership skills in addition to an excellent education.

Student life

At IIT, the student life is very balanced and students are given responsibility and ownership to initiate new thoughts, both academic and extra curricular activities, says Obhasha.

“I had an awesome time with the IIT choir, where it helped me a lot to gain valuable exposure. I also should mention the support that lecturers give me at IIT is really commendable. I believe our IEEE committee made a huge impact and conducted the first ever inter university hackathon in Sri Lanka, which led our IEEE student branch to gain a much exposure in Sri Lanka. IIT life is simply one of the best you can expect if you have the right attitude,” he commented.

One of the main achievements, Obhasha said was being a national finalist at the Microsoft Imagine Cup where they developed a very unique concept of a help oriented smart mug to prevent coronary diseases.

“Organizing the first ever inter university hackathon in Sri Lanka was another experience I had. It gave us a huge exposure in the industry and also among all universities in Sri Lanka.”

Shape for corporate success

The academic standards and quality, along with the most important part of the programme, which is the one-year long internship, that gives you the best experience. “That internship truly made my career a success since the most important factor for success in the industry is the positive attitude towards whatever you do. So I would say that the one year internship programme is the key to that success.”

Staff support

At IIT you can easily approach anyone and seek for knowledge support without any barriers. The support given by the staff was really helpful when we were doing group projects even over night, says Obhasha.

“The staff helped us a lot in many different ways. The academic staff at IIT will make sure that you are guided in the right direction while doing many extra curricular activities. The support from IIT was the best.”

IIT conducts internal postgraduate and undergraduate degrees from the University of Westminster (UOW), UK and Robert Gordon University. The University of Westminster degrees offered at IIT are Software Engineering, Business Information System, Business Management and Computer Science with specialization pathways in gaming and computer graphics development, mobile and web computing and multimedia computing.

IIT is an award winning campus, which has bagged many accolades for innovation in local and international competitions such as Microsoft Imagine Cup, National Best Quality Software Awards (NBQSA), APICTA, British Council-HSBC Youth Enterprise Award and e-Swabhimani.

With its strong international affiliations, outstanding resources and focus on quality higher education, IIT without a doubt is an ideal place for students to follow world renowned IT and Business degrees.

Ceylinco Healthcare Services Limited (CHSL) recently sent Jayantha Gunaratne, a medical physicist at its Radiation Treatment Centre for a training program in Switzerland, arranged by Varian Medical Systems International AG, a global leader in Radiation Oncology.

Gunaratne’s training follows the commissioning in December last year of a new hi-precision Clinac® iX linear accelerator to treat cancer patients at CHSL’s the Radiation Treatment Centre. The new linear accelerator was supplied by Varian Medical Systems.

Titled ‘Varian Advanced Techniques Physics IMRT/RapidArc,’ the training program was conducted over four days and included classroom lectures and on-site training at the Municipal Hospital Triemli, Switzerland. The course was designed to provide training for medical physicists responsible for the initial system commissioning and configuration of Varian’s Intensity Modulated Radiotherapy (IMRT) techniques.

The aim of this course was to provide a comprehensive understanding of the treatment technique process, quality assurance tasks and treatment planning strategies, so that attendees would be able to implement IMRT/RapidArc® and Portal Dosimetry in their clinical routines, the Company said.

“We have invested in state-of-the-art equipment for radiation therapy to enable Sri Lankans to receive the most advanced treatment available, in their own country,” CHSL Chairman R. Renganathan said. “As the private sector’s Centre of Excellence in radiation treatment, we also require our physicists and technicians to undergo world class training that could enable them to maximise the benefits of the equipment.”

Jayantha Gunaratne has been a medical physicist at CHSL for the past 11 years. He previously worked as a Scientific Officer at the Atomic Energy Authority of Sri Lanka, for a decade. Gunaratne holds a B.Sc. (Special) Degree in Physics from the University of Peradeniya and a M.Sc. in Medical Physics from the Post Graduate Institute of Science, University of Peradeniya. He also holds a Post Graduate Diploma in Radiation Protection from the National University of Malaysia.

With more than 7,400 linear accelerators installed around the world, of which nearly 200 are operating in India, Varian Medical Systems has extensive global and regional experience in radiation oncology. The Varian Clinac iX linear accelerator houses a range of capabilities that not only streamline the treatment process, but also expand possibilities for clinics.

Munchee Samaga Gamata Sarana community work projects by Galenbindunuwewa, a remote area in North Central Sri Lanka, in the Anuradhapura district, home to a community of about 120 families, was the most recent beneficiary of the ‘Munchee Samaga Gamata Sarana’ community program designed to uplift the living standards of our rural people.

Munchee, a household favourite and the flagship brand of Ceylon Biscuits Ltd., (CBL) has been reaching out across the country to the least privileged communities with their CSR program Munchee Samaga Gamata Sarana over the past several years. Last year, the program saw an acceleration in activities which enabled it to reach a fresh new milestone of 25 projects in one financial year bringing the total to 150. Residents of Galenbindunuwewa, teamed up with the contractors and the Munchee sales team of the area and workers on the site to help build a community hall for the area.

Stakeholder participation is a key factor in the success of these projects as the feeling of ownership is inculcated in the community who are eager to join the workforce to construct buildings that would be used by them and enhance life in their towns or villages.

Munchee Samaga Gamata Sarana CSR project has exceeded a budget of Rs. 40 million to date since its launch in 2004. The key factors and mainstays of the program’s unequivocal success is that it benefits the entire community of the area and are not confined to a group or one person. Munchee’s programs uplift the facilities and the living standard of the entire community giving them an ownership of the project they helped to complete.

The mechanism to select beneficiaries are through the company’s own sales team who has developed close links with the community leaders and have a good understanding of the community requirements of the area. Once projects are identified by the relevant sales teams, they are forwarded to head office for evaluation. The sales teams work with the community to ensure project coordination, completion and accountability in fund allocation. They maintain a link with the project beneficiaries at all times.

CBL identifies villages or towns with minimal infrastructure development and facilities for their CSR activities and launch projects that have long term benefits.

“Munchee Samaga Gamata Sarana program reflects the essence of our objective in simple words. Our CSR is not designed for sporadic spending however worthy the cause may be. Rather it is designed to fund sustainable projects bringing long-term benefits to the entire community. We make a genuine attempt to be involved at all levels of the projects because employees of CBL truly believe in making a difference to the lives of the people said Mr. Nalin Karunaratne, CEO of Ceylon Biscuits Limited.

“For an example it is not unusual for our sales team who initiates and coordinates projects and in-house teams who assist the sales team with the paper work involved, to spend time to visit those places, help to finish the projects in addition to the actual work/targets they perform in office because they believe in making a change in the lives of these people,” Karunaratne further added.

So far about 60% of the projects have focused on developing education channels for the community and concentrate on developing or constructing school buildings, libraries, and science laboratories. One of the main projects for schools have been installing water purification systems as children in these areas do not have access to clean drinking water. Munchee Samaga Gamata Sarana also has a Scholarship scheme, where children’s education is funded for a period of one year on a monthly basis and based on the student’s academic performance will continue until the university education is completed. Other projects of the programme includes health clinics, building of community centers and foot bridges.

Hutchison Telecommunications Lanka recently, concluded its acquisition of Etisalat’s local operations. Having completed the acquisition, both 078 and 072 mobile prefixes would continue to operate under the Hutch brand.

As Hutch would ensure that the full spectrum of services are provided for all 078/072 customers, a process of unifying its products and services are ongoing, assuring all customers benefit the most affordable mobile services in Sri Lanka.

As part of this progression, Hutch recently introduced a ‘common’ top-up card into the market, enabling all Hutch 078 and 072 customers to conveniently top-up their mobile credit through unified 078/072 top up cards.

The Common Card is freely available across Hutch’s 75,000+ retail outlets across the country, ensuring that customers could purchase the cards from anywhere conveniently.

Additionally, with Hutch’s ongoing network expansion and enhanced distribution, both 078 & 072 customers would soon have access to a larger 2G/3G network and the most advanced 4G network that would deliver an enhanced coverage and service. 4G Mobile Broadband solutions are already available in the Western and Eastern Provinces and would soon expand across Sri Lanka.

Commenting on the new Common Card, Melroy Thomas, Asst. General Manager Acquisition and Distribution, Hutch Sri Lanka said, “As the country’s fastest growing mobile operator with expanding 2G/3G & 4G network coverage and sales distribution, we sought to create a platform to deliver greater convenience for 078 & 072 customers.”

The Open University of Malaysia has partnered with IIHS to offer Bachelors in Education (TESL), Bachelors in Teaching and Bachelors in Early Childhood Education (Hons.) degrees to students who have completed their Advanced Levels and also the existing teachers of Sri Lanka.

The Bachelors in Education (TESL) degree is a 3 year internationally recognized degree which is offered by the Open University Malaysia, but the program is conducted at IIHS, Sri Lanka. (1 year exemptions apply for certain applicants with recognized teaching diplomas).

The aim of this program is to promote the academic and career development of teachers, educators, principals of schools and others in the field of education, especially to those who teach English as a second language. The program would ensure students are equipped with adequate knowledge of methodology of teaching English. Whilst addressing the core subjects related to education, the program further addresses research modules which add value to the learning experience at IIHS.

Whilst providing an employment opportunity in Sri Lanka, the degree also increases openings for employability as a teacher in Commonwealth countries too. Furthermore, students are provided with the option of visiting the Open University Malaysia for study visits. Currently, this program is one of the very few international education programs in Sri Lanka which is offered to students at a nominal price.

The Bachelors in Teaching program aims to produce graduates who have wide education knowledge and skills to function as effective teachers, education officers or college lecturers specializing in primary education. The Bachelors in Early Childhood Education (Hons.) program is designed to meet the needs of those interested in pursuing careers in early childhood education and who are currently (or in the future hope to be) employed in pre-schools. Entry requirements for all bachelors programs in education include GCE Advanced Level or IIHS Foundation in Education or HNDE (Higher National Diploma in English) or a Diploma in English obtained from a recognized institution. This program is ideal for students of all ages and backgrounds, even mature students who were not able to complete their higher education due to personal commitments. The above mentioned international programs are affordable in nature compared to similar international programs. Furthermore, students who complete the bachelors programs would have the opportunity to complete a Master’s In Education in Australia and Europe.

The government has paid 65 percent of this year’s debt obligations and the Central Bank was looking at all possible options to go in for more borrowings to raise money as much as possible to meet necessary commitments, Central Bank Governor Dr Indrajit Coomaraswamy told the third Monetary Policy Review media briefing on Friday.

The Cabinet has approved raising USD 1.5 billion from international markets for the government’s cash flow requirements and another USD 2 billion will be raised separately to meet debt obligations.

The market conditions seems stable at the moment and due to the fact that the country has not missed any of its debt repayments up to now, the international markets are still open to carryout trade activities.

Further, the Executive board of the IMF has recently passed the fifth review of the Extended Fund Facility (EEF) which is also another positive point. ”They would not have done so if our macro-economic fundamentals are not in good shape,” the governor said.

With the Easter Sunday explosions and the disturbances that took place afterwards there had been a slight negative impact on the financial market. The exchange rate is broadly stable which has been appreciated to 3.6%. However prior to April 18 the rupee had appreciated to about 4% which marks depreciation to some extent afterwards, he said.

There also had been some capital outflows. On a net basis the capital outflow for this year is USD 77million, where the last year outflow was about a billion. “This year given the circumstances again, a fair amount of stability in capital flows into our government securities market,” the Governor said.

In terms of worst case scenarios, the tourism industry, which expects to bring in revenue of USD five billion would likely miss its target. Also the foreign direct investment which was USD 2.7 billion at the beginning of 2019 will likely to get affected for the next year if new investments are not received.

Thus the expected revenue of USD 8.2 billion for this year will not be achieved if worst case scenarios come to effect.

The entire tourism industry may have come down from about a 30% following the Easter Sunday terror attacks, Finance Minister Mangala Samaraweera yesterday said.

Quoting Secretary to the Treasury Dr. R.H.S. Samaratunge, Minister Samaraweera said that the said percentage may amount to USD 1.5 billion.

The Minister made these observations at a press brief held at Finance Ministry premises last week. Minister Samaraweera also announced a relief package for informal tourism sector, transportation and entertainment which grants concessionary credit facilities, grace periods and low or free interest rates.

Dr. Samaratunga who was present at the press brief, said that a proper estimation has not yet been done on the total impact on the tourism industry resulted by the Easter Sunday carnage.

“The inflow of the tourism sector approximately is USD 4.6 billion. One third of it is coming closer to a USD 1.5 billion. This is the inflow to the country from the entire tourism industry, both formal and informal sectors.” Samaratunga said.

Meanwhile, the government announced a special loan facility named ‘Sancharaka-Poddo’ with a total interest subsidy cost worth Rs. 1.5 billion, which can be applied from June 10. Furthermore, musical band members will be given a working capital loan facility, a maximum of Rs. 500,000 for 3.46% interest rate and a two years repayment period that can be obtained from June 10, from Bank of Ceylon. Similarly, the government will also grant a short term special grace period for private bus owners for the installments due on the months of April and May this year on the loans or leasing facilities obtained by them.

The shipping sector is witnessing a 10 to 15% drop in business due to the Easter Sunday attacks, General Manager Ship Repairs, Colombo Dockyard, Bennie Fernando said.

Speaking at a special felicitation event for their agents and the shipping sector at Marino Hotel, Colombo 3, he said that this is however less than the impact seen in the tourism sector.

“We have lost business running to a couple of millions of dollars since ships are not keen to call over for repairs to Colombo Port and also place new orders due to the current security concerns”. Similar to the Travel sector, Fernando also said that shipping industry too is affected by the adverse travel advisories, especially from European countries as some of them were the main buyers. “Though some EU travel advisories are toned down, we are yet to see a positive move from The Netherland which is one of their largest buyers.

He however said that the Colombo Dockyard swiftly acted and has managed to convince their overseas clients that Sri Lanka is now safe to do business once again. D.V. Abeysinghe MD/CEO Colombo Dockyard PLC while acknowledging that they have lost business in the aftermath of Easter Sunday blasts said that they are once again consolidating their businesses.

“We have built a US$ 50 million worth sophisticated cable laying vessel for Japan and this is the biggest single order we have done so far.”

This Cable Laying Vessel is a high technology vessel, which is intended for subsea operation and cable installation and repair works of ‘optical cables’ as well as ‘power cables’ adding to the versatility of the vessel.

CDL recently also built and delivered an Underwater Restaurant to a Maldivian hotel. He said that to meet the future demands of the shipping industry they also launched a 24/7 Rapid Response Afloat Repair Service (RRARS) to undertake any mid sea repair. “We have a subsidiary company, Dock Tech Service (DTS) and trained staff from this has been assigned too, from this Rapid Response Repair Section”. CDL operates in joint collaboration with Onomichi Dockyard Company Limited of Japan who owns a stake of 51% at Colombo Dockyard PLC while Sri Lankan Government institutions have a 35% shareholding at Colombo Dockyard.

The daily average turnover for the year ended December 31, 2017 was Rs 915 million from Rs 737 million in 2016 the SEC annual report which was published in its website stated.

There were three new listings and two de-listings in the period. The market capitalization was Rs 2.89 trillion from 2.74 trillion in 2016.

The total return on the S&P 20 Sri Lanka 20 index was 8.6 percent from the previous year. The number of Debt market trades increased by 81 percent. Unit trust holdings were 128.8 billion from 103.8 billion. The total expenditure of the SEC stood at Rs 422 million from Rs 362 million in 2016. Staff salaries increased to Rs 108 million from Rs 99 million in 2016.

The rent and car park rental cost Rs 71 million for the year. Profits from the stock broking industry stood at Rs 4.2 million from a loss of Rs 452 million in 2016. The report mentions demutualization and the SEC playing a leading role in submitting the bill to the Cabinet of Ministers in January 2018. The Bill was thereafter published in the Gazette and the Order Paper in February 2018.

The report notes ‘The new SEC Act deals with the legal framework necessary to facilitate the capital market of Sri Lanka to move to the next stage of development whilst enhancing the protection granted to investors.

(New) mandatory provisions on auditors to whistle blow to the Commission in the event or probable event of a violation of the provisions of the SEC Act by listed public companies and stakeholders under regulation of the SEC, paying a bounty to whistleblowers.

Sundara (Pvt) Ltd from USA, inked an agreement with Board of Investment (BOI) to build “The Plantation Koggala” a luxury hotel project in Koggala on Friday.

This is the first foreign party agreement to be signed after the Easter Sunday blasts, stamping investor confidence towards Sri Lanka. Dale Rennie and Sabrina Van Cleef Ault signed the agreement to build ‘The Plantation Luxury Villas’ in Koggala, a luxury resort project valued at over USD 4.5 million (approximately Rs 792 million).

The project was designed by celebrated Sri Lankan architect Manjula Kalhara and will consist of 14 exclusive one and two-bedroom pool residences. The first phase of the construction is expected to be completed within a period of 18 months. The property developer Sundara (Pvt) Ltd also own and operate The Heritage Café and Bistro in Galle Fort. “We are also investing in another hotel project in Ahagnagama with an investment of US$ 1 million.” This will bring their total investment in Sri Lanka to over Rs. 1 billion.

With this investment, founders Dale Rennie with a 26-year career in the entertainment industry and Sabrina Van Cleef Ault are complementing a portfolio of successful developments around the world which includes nearly 800 keys in Philippines and Indonesia.

“Sri Lanka is our home now, and despite recent events we have always felt absolutely safe and looked after here and want our investors and visitors to feel the same way,” said Dale and Sabrina on their investment.Sabrina is the original co-founder and Creative Director of the iconic uber luxury nightclub brand Panagaea, the highest earning property of its kind in the world. “I am trying to move out of the night club business and concentrate on the hotel segment.” BOI Chairman Mangala Yapa said that the Easter blasts would result in dip of FDI. “Tourism sector is certainly strong enough to bounce back from setbacks and we are very happy to have the confidence of two seasoned investors and developers like Dale and Sabrina. They have our full support- Sri Lanka remains as ready and open to investment as ever.”

The Solar Industry Association on Friday expressed its dissatisfaction over the sudden decision taken by the Ceylon Electricity Board (CEB) and the Ministry of Power and Energy to stop the installation of country’s future solar power projects that could add 200 MW to the national grid.

This was highlighted at a seminar, conducted by the Solar Industry Association with the participation of eminent personalities involved in the Sri Lankan solar power sector.

The seminar also revealed that the `Surya Bala Sangramaya’ programme was launched in 2016 with the sole objective of producing energy using solar power and over 17,000 solar power installations have so far been successfully carried out in all parts of the country. Addressing the seminar Regen Renewables (Pvt) Ltd, Director, CEO Lakmal Fernando expressed concern over the decision taken by the CEB and the Power and Energy Ministry to stop future installations of solar power projects other than small size solar power projects.

He said the solar power projects were installed in 2016 with the sole authority of relevant authorities and this decision is contravening even the Cabinet decision taken on June 25, 2016 to install solar power projects. Fernando further highlighted that the decision, taken to stop installation of solar power projects will also lead to the complete destruction of the solar industry in Sri Lanka and it will also lead to the loss of over 10,000 employment opportunities. He said such a decision will also lead to the contravention of international agreements signed by Sri Lanka such as the Sustainable Development Goals and the Paris Convention which say that 50 percent of the total energy needs of the country through renewable energy sources such as solar power by 2030.
The Solar Industry Association will therefore request the President, Prime Minister and Cabinet ministers to look into this matter at least until the target of generating 1,000 MW of solar power projects in the country is achieved.
 

Under the novel concept of ‘taking the country to the fore, retaining its own identity,’ the 100% local enterprise, Nelna celebrated its 20th anniversary in grand scale with pomp and pageantry on May 30.

Nelna, with a vision to conquer the international market while retaining the Apekama identity, is now a large group of companies, which introduce nutritious and hygienic products to the public.

Nelna, has during the past two decades, expanded its business into several fields. By now, Nelna Group has diversified into Nelna Farm, Nelna Agri Business, Nelna Breeders, Nelna Feed Mill and Nelna Impex. Over 1,500 employees have been provided direct employment by Nelna and several thousand people in indirect livelihood.

Commenting on the 20th Anniversary, Nelna Group Founder and Chairman W G Eddi Gunapala Nanayakkara said, “I am profusely happy that the small business that I commenced two decades ago has grown up to be a large scale business conglomerate today. The path to success was in no means an easy journey.

There was a large crowd that stood with me in the passage that made Nelna brand a huge success. Among them the support I received from customers and clientele, which could be considered the live line of the company, is unforgettable. Our company provides customer only high quality and hygienic products. My objective is to covert the Nelna brand which has won the local market by winning the trust and confidence of the Sri Lankan people, a world accepted global brand.”

Nelna after identifying chicken as a cheaper and easy to obtain source of protein which is an essential nutrition for a healthy life, has taken measures to provide the Sri Lankan public with high quality chicken.

The main task of Nelna Farm which is a subsidiary of the Nelna Group, is the rearing and production of chicken into processed food such as sausages, meat balls to cater to the requirements of the customers. For all these products Nelna uses only Nelna Chicken and local spices, sans any flavouring agents and artificial colouring to maintain high quality. The company for its management and production process has also received the ISO 9001, ISO 22 000, ISO 14100, SLS, HACCP and GMP certifications.

Nelna, in the meantime has become the largest and main mango producer under the Nelna Mango brand and produces high quality mangoes in large scale under the TJC category for the local and foreign market. The harvest of over 70,000 mango trees spread over 500 acres is used for this purpose. Nelna has made a huge investment to produce mangoes to international standards and has won the Global GAP certification for its effort.

Nelna Group’s Founder and Chairman is W .G. Eddie Gunapala Nanayakkara. His wife Sita Ranjani Nanayakkara and children Punya Nanayakkara, Hemamali Nanayakkara and Asanka Nanayakkara perform as Directors of the company.

Nobel Peace Laureate Muhammad Yunus today called for a complete change in the ways to address the often-related issues of hunger and conflict. He made the appeal at an event at FAO headquarters in Rome highlighting progress made by the FAO-Nobel Peace Laureates Alliance for Food Security and Peace.

“If you continue the same way as you have done before, you’ll always end up with the same result...particularly on the issues of food security, agriculture, and the environment,” Yunus said. “Unless we think differently, unless we work differently, (these issues) are not going to be resolved”.

The FAO Nobel Alliance, established in May 2016, is an advocacy group of Nobel Peace Laureates focused on breaking the cycle between conflict and hunger.

Hunger and conflict are intrinsically linked. According to FAO figures, more than 60 percent of people suffering from hunger live in areas of conflict. At the same time, there is a growing number of conflicts over natural resources to produce food.

“There can be no food security without peace, and no lasting peace without food security,” FAO Director-General José Graziano da Silva told the audience at today’s event. “Whenever conflict looms large, or hunger threatens peace, we need to sustain rural vulnerable communities. To save lives, we also have to save their livelihoods,” he said.

Today’s event provided a solid example of a new approach to address conflict and hunger. A pilot peace-building project in the Central African Republic works with Christians and Muslims on agricultural production, training and social business development, as well as community dialogue to encourage social cohesion.

It draws on Yunus’ expertise in social business by encouraging agricultural entrepreneurship, particularly among young people, and on the expertise of Yemeni human rights activist and 2011 Nobel Peace Prize recipient Tawakkol Karman through encouraging inter-religious dialogue towards peace.

The pilot takes place on land owned by the Catholic Church outside the capital Bangui where around 3,000 people displaced by conflict live.

“Farmers are excellent entrepreneurs,” Yunus said. He also told the audience that the CAR project demonstrates that agricultural entrepreneurship can help transform communities which in turn encourages people to stay in their community rather than being forced to seek better opportunities elsewhere.

The project is designed by FAO, funded by the Government of Italy and implemented by the Italian organization Cooperazione Internazionale (COOPI).

FAO’s work for food security through peace Twelve Nobel Laureates are currently part of the Alliance, including the Iraqi Yazidi human rights activist Nadia Mura who was awarded the 2018 Nobel Peace Prize for her campaign against the use of rape as a weapon of war, and the former President of Colombia Juan Manuel Santos who was awarded in 2016 for his efforts to bring the country’s more than 50-year-long civil war to an end.

The Bourse ended the week on a positive note as the ASPI increased by 15.84 points (or +0.30%) to close at 5,310.95 points, while the S&P SL20 Index also increased by 5.65 points (or +0.23%) to close at 2,469.82 points.

Turnover & Market Capitalization

Hatton Plantations was the highest contributor to the week’s turnover value, contributing LKR 1.05Bn or 37.28% of total turnover value. JKH Holdings followed suit, accounting for 27.42% of turnover (value of LKR 0.78Bn) while Janashakthi Insurance contributed LKR 0.29Bn to account for 10.16% of the week’s turnover. Total turnover value amounted to LKR 2.83Bn (cf. last week’s value of LKR 0.83Bn), while daily average turnover value amounted to LKR 0.57Bn (+174.25% W-o-W) compared to last week’s average of LKR 0.21Bn. Market capitalization meanwhile, increased by 0.34% W-o-W (or LKR +8.59Bn) to LKR 2,502.27Bn cf. LKR 2,493.67Bn last week.

Liquidity (in Value Terms)

The Plantations sector was the highest contributor to the week’s total turnover value, accounting for 37.48% (or LKR 1.06Bn) of market turnover. Sector turnover was driven primarily by Hatton Plantations which accounted for 99.45% of the sector’s total turnover. The Diversified sector meanwhile accounted for 30.19% (or LKR 0.85Bn) of the total turnover value, with turnover driven primarily by JKH which accounted for 90.81% of the sector turnover. The Banks, Finance & Insurance sector was also amongst the top sectorial contributors, contributing 22.65%(or LKR 0.64) to the total turnover, with turnover driven primarily by Janashakthi Insurance, Seylan Bank[NV], Central Finance, Sampath Bank, Commercial Credit & Commercial Bank accounting for 85.04% of the total turnover.

Liquidity (in Volume Terms)

The Plantations sector dominated the market in terms of share volume, accounting for 67.74% (or 128.03Mn shares) of total volume, with a value contribution of LKR 1.06Bn. The Banks, Finance & Insurance sector followed suit, adding 11.81% to total turnover volume as 22.32Mn shares were exchanged. The sector’s volume accounted for LKR 0.64Bn of total market turnover value. The Diversified sector meanwhile, contributed 11.96Mn shares (or 6.33%), amounting to LKR 0.85Bn.

Top Gainers and losers

Hatton Plantations was the week’s highest price gainer; increasing 33.9% W-o-W from LKR5.90 to LKR7.90 while Dunamis Capital(+33.2% W-o-W), Morisons(+21.0% W-o-W) and Fort Land(+20.7% W-o-W) were also amongst the top gainers. Lucky Lanka were the week’s highest price loser; declining 35.3% W-o-W to close at LKR1.10 while Lucky Lanka[NV](-30.0% W-o-W), Industrial Asphalts (-23.8% W-o-W) and Kelsey Developments(-15.3% W-o-W) were also among the top losers over the week.

Foreign investors closed the week in a net buying position with total net inflow amounting to LKR 0.31Bn relative to last week’s total net outflow of LKR 0.15Bn (+305.8% W-o-W). Total foreign purchases increased by 515.1% W-o-W to LKR 0.59Bn from last week’s value of LKR 0.10Bn, while total foreign sales amounted to LKR 0.28Bn relative to LKR 0.25Bn recorded last week (+11.9% W-o-W). In terms of volume, JKH & Commercial Bank led foreign purchases while Access Engineering and LOLC Finance led foreign sales. In terms of value, JKH and Commercial Bank led foreign purchases, while Hemas Holdings and Access Engineering led foreign sales.

Point of view

The recovery in Sri Lankan equities continued this week as the broad-share market index gained for a 2nd consecutive week amid expectations that the Central Bank would cut policy rates in view of rising macro-economic pressures following the Easter Sunday attacks. Consequently, the ASPI gained ~29 points by the end of trading on Thursday, ahead of the Monetary Policy Review on Friday. Selling pressure on Friday however, trimmed some of the market’s early gains, and the benchmark index lost ~14 points on Friday amid selling on Index heavyweights such as JKH and Commercial Bank. The gain on the benchmark index for the full week consequently reduced to ~15.8 points or 0.3% W-o-W to close at 5,310.95 points. The weekly uptick was supported by gains in Commercial Bank, Chevron, Browns Investments and Ceylon Tobacco which collectively contributed 9.35 points to the total weekly gain. Activity levels on the Colombo Bourse also picked up considerably over the week, with turnover for the week reaching Rs. 2.8Bn (up 243% W-o-W) from last week’s total turnover of Rs. 0.8Bn.

Consequently, daily average turnover for the week improved to Rs. 0.57Bn, in line with the YTD average of Rs. 0.55Bn. The sharp increase in turnover levels this week was largely attributable to a strategic transaction in Hatton Plantations whereby Lotus Renewables acquired a 51% controlling stake in the former for a total consideration of Rs. 1.0Bn. Crossings for the week consequently accounted for ~69% of this week’s total turnover c.f. YTD average contribution of 34%. HNI and institutional buying interest was also visible in JKH (26% of crossings), Janashakthi Insurance (13% of crossings), Seylan Bank and Three Acre Farms. Global market sentiment meanwhile was largely pessimistic this week as fears of a renewed trade war between the U.S. and China and dampened global economic growth, restrained the largely positive investor sentiment which has prevailed through Q1’19. Despite the largely negative sentiment in global financial markets, the persistent foreign equity sell-off on Sri Lankan equities over the last three week’s eased this week, with strong foreign buying in JKH resulting in a net foreign inflow of Rs. 313.0Mn for the week relative to a net foreign outflow of Rs. 152.1Mn last week. The YTD net foreign outflow consequently fell to Rs. 5.6Bn from Rs. 5.9Bn last week. Markets in the week ahead are likely look for cues both from ongoing economic and political developments and from the ongoing corporate earnings releases for Q1’19.

CBSL cuts policy rates by 50 bps

The Central Bank on Friday reduced policy rates by 50Bps (SDFR to 7.50% and SLFR to 8.50%) citing pressure on already subpar economic growth post the Easter Terror attacks and the failure of market lending rates to adjust downwards despite recent monetary policy actions. The move was line with the CBSL’s forward guidance at its previous policy review in April, when the Monetary authority indicated that a policy relaxation is possible if the current trends in the global financial markets, trade balance, and credit growth continue.

The CBSL noted that dovish monetary policy has being observed globally due to increased trade tensions, weakened business confidence and a slowdown in global economic growth, and this has remained conducive to the rate relaxation in Sri Lanka. The CBSL further noted that although GDP growth in 2019 was originally anticipated to improve on the back of Agriculture and Industry-related activities, the Easter Terror attacks have worsened prospects by affecting the confidence of economic agents and that growth is thus likely to be lower than initially projected.

Meanwhile, despite the CBSL’s sizable liquidity injections, the steep decline in G-Sec yields, and the recent introduction of a ceiling on deposit rates, market lending rates have remained sticky upwards, further justifying the CBSL’s moved to reduce monetary policy rates. The CBSL also noted that the notable contraction in private sector lending (due to sluggish economic growth and high lending rates) along with improvements in the country’s trade balance have also supported its decision to adjust policy rates down.

The Monetary Authority added that the improved trade balance is likely to negate some of the negative impact of the Easter Attacks on Tourism while the resumption of the EFF with the IMF is likely to support investor sentiment.

Union Bank recently announced to the Colombo Stock Exchange (CSE) that the Bank has convened an extraordinary general meeting on June 11, 2019, to obtain shareholder approval to carry out a repurchase of up to a maximum of 7,851,844 ordinary shares from its shareholders at the price of Rs 15 per shares, amounting to a maximum distribution of Rs117,777,660 and that the Bank expects to commence the offer to repurchase shares as aforesaid on June 27, 2019 and close the said offer on July 11, 2019.

As per applicable law, the said offer will be made to all shareholders of the Bank, on a pro rata basis. Accordingly, the proportion in which the said repurchase offer will be made to the shareholders of the Bank will be, one ordinary share for every 139 ordinary shares held by each shareholder.

Where a shareholder does not accept the offer or accepts the offer only in part, the Bank will re-purchase additional shares from any shareholder who tenders shares over and above their pro rata entitlement for repurchase by the Bank (on a pro-rata basis) up to the aforesaid maximum number of shares that the Bank intends to re-purchase.

On May 8, 2019, the Bank announced to the CSE that Culture Financial Holdings Limited, Alexis Indrajit Lovell and Vista Knowledge Pte Ltd., who together hold 853,033,616 shares of the Bank representing 78.16% of the issued shares in the Bank have informed the Bank in writing that they will not accept the offer to repurchase their shares.

Accordingly, given that the shareholders identified above will not accept the offer, and assuming all remaining shareholders accept the offer and in addition thereto, apply for additional shares over and above their entitlements, the Bank will be in a position to distribute among the remaining shareholders, up to a maximum of Rs.117,777,660 by re-purchasing from each remaining shareholder, the number of shares offered to be repurchased by the Bank under the offer and any additional shares tendered by the said remaining shareholders, at the same consideration of Rs.15 per share, subject to the maximum number of shares the Bank intends to purchase. 

Sri Lanka Tourism with the Sri Lanka Association of Inbound Tour Operators (SLAITO) and The Hotels Association of Sri Lanka (THASL) joined hands with the National Carrier Sri Lankan Airlines to launch attractive, promotional packages to stimulate the Indian market.

“We look forward to activating this campaign as soon as possible in India and looking at similar offers in other key source markets including China which is expected to be rolled out in the future. Our tourist sites and hotels are fully operational and Sri Lanka Tourism is looking forward to welcoming visitors.” stated Minister of Tourism Development, Wildlife & Christian Religious Affairs, John Amaratunga.

The five packages include a combination of stays ranging from Colombo, Kandy, Nuwara Eliya, Dambulla, Sigiriya, Down South etc. The client could select standard, superior or deluxe accommodation to suit their budget.

The Ceylon Chamber of Commerce (CCC) in a communiqué stated that it was deeply concerned about the possibility that events that threaten the law and order situation in the country, will unfold.

This concern stems from positions taken and utterances made very recently by certain parties.

As the highest ranking official vested with responsibility for the maintenance of law and order, we expect you will ensure that all necessary measures are taken to maintain peace, law and order and prevent the occurrence of unlawful and disruptive activities that will disturb the peace of the communities.

We also need to understand whether all allegations against those who are suspected and accused of engaging in terrorist activities have in fact been investigated and that the administration of justice process has been complied with.

Following a higher than projected credit expansion, particularly in the latter part of 2018, credit extended to the private sector by commercial banks contracted during the first four months of 2019.

The factors which contributed to this contraction are high market lending rates, sluggish growth in economic activity, subdued business confidence, as well as the settlement of arrears by the government on account of various projects which enabled repayments to the banking sector. Because of the slowdown in private sector credit, the year-on-year growth of broad money (M2b) also decelerated so far in 2019.

Meanwhile, the Monetary Board of the Central Bank of Sri Lanka decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 50 basis points to 7.50% and 8.50% last week. This decision was taken through a careful analysis of current and expected developments in the domestic economy, the financial market as well as the global economy.

However, a lower growth than initially projected could be anticipated this year due to the Easter Sunday

 day attacks although normalcy is gradually returning. This mainly affected confidence and sentiments of economic agents, particularly disrupting tourism and related activities.

The trade deficit narrowed with increased performance in export earnings, while import expenditure declined sharply during the first three months of this year mainly in response to the flexible exchange rate policy maintained by the Central Bank ahead of adopting the proposed flexible inflation targeting monetary policy framework.

The improvement in the trade deficit is likely to negate the adverse impact on the current account arising from the slowdown in services exports caused by the contraction in tourism recently.

Furthermore as measured on the year-on-year change in both Colombo Consumer Price Index (CCPI) and National Consumer Price Index (NCPI), some acceleration was noticed this year, thus the inflation is likely to remain in the desired 4-6% range in 2019 and beyond, supported by appropriate policy measures.

 The news item that appeared in the Finance section on May 31, 2019 under the title ‘DFCC appoints Jegan Durairatnam on May 31, 2019, is incorrect.

The news item should have read as:

“The Board of Directors of DFCC Bank PLC at their meeting held on May 30, 2019, unanimously appointed J. Durairatnam, Non Executive/Independent Director as Chairman of the Bank with effect from July 28, 2019.

Current Chairman C. R. Jansz will retire with effect from July 27, 2019 on completion of 9 years as a Director of the Bank,” the DFCC Bank said in a stock exchange filing.

The error is regretted.