Business
Sri Lanka, the contrarian investment opportunity of 2021, says CAM
Global equity interest in emerging markets expected to trickle down to CSE
Despite global negativity, the CSE has emerged the best performing stock market in the world as of 19th January 2021 due to local positivity. Analysts expect global equity market growth to move away from the US to favour the rest of the world. The capital flow into Emerging Markets can also be expected to flow into Frontier Markets while SL has the potential to outperform other frontier equity markets during 2021 since it is trading at attractive valuations, as per the latest Economic & Market Outlook report of the Colombo-based Ceylon Asset Management (CAM).
Sri Lanka offers the highest negative correlation in Asia compared to India, United States and Japan while Malaysia is the 2nd highest in Asia compared to the same countries. It reveals that the CSE’s negative correlation to US, India and Japan stock markets during the past 5 years offer investment opportunities to global investors.
Frontier economies such as Sri Lanka are experiencing credit distress reflected by a series of country rating downgrades by the international rating agencies. As a result, Sri Lanka International Sovereign Bond (SLISB) yields spiked to an all-time high level in last year since the first issue during 2007. The 2030 SLISB yield of 9.1% before the pandemic (11 March) increased to 19.6% during May 2020. Currently, it has recovered marginally and trading at a yield of 15.5%. The 2030 ISB price declined by -37.8% during 2020. The 2022 ISB maturities still trade at yields above 30% reflecting global investor concerns over Sri Lanka’s ability to repay maturities next year given insufficient Reserves.
Despite the adverse economic environment, the research report published by Ceylon Asset Management (CAM) highlights a contrarian investment Opportunity in the Sri Lanka International Sovereign Bond Market. However, Global negativity towards SL is strong due to existing external debt obligations, weak debt sustainability, insufficient foreign reserves and hesitance to engage with the International Monetary Fund. As a result, all other “CCC” rated countries trade below 10% while Sri Lanka trades at 18.5% p.a.
The foreign analysts are negative on the external debt repayment ability of Government of Sri Lanka over the next five years due to mounting adverse economic conditions. The absence of a credible debt repayment strategy by the Government of Sri Lanka has diluted foreign investor confidence despite the statements provided on the willingness and ability to settle the upcoming debt obligations.
Despite the negative impact of the pandemic on Sri Lanka and exit of foreign investors from the CSE, analysts observe a contrarian behavior of local investors due to their confidence in the government policies and measures to reduce the trade deficit, a strengthening current account balance, arrangements of dollar SWAPs of USD 2.5Bn to strengthen FX reserves to overcome prevailing challenges. In addition to the dollar SWAPS, The Government of Sri Lanka expects committed FDIs of USD 2.5Bn during 2021.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
