Business
Ideal Finance targets more than doubling branch network
Ideal Finance Limited (IFL) has opened its 13th branch in Welimada, as part of the company’s massive expansion drive to more than double its branch network, by adding 15 new locations within the current financial year (FY 2021/22).
The new branch, which provides a range of services such as leasing, loans (including gold loans) and deposits, was opened by IFL at Welimada, given the area’s importance as a production hub for up-country vegetables and as the location of the Keppetipola Economic Centre, a key trading centre for many types of produce.
The Welimada branch opening will be followed by the opening of new branches at several key locations in September, as Ideal Finance ramps up its branch network on the back of several key recent developments. These include attracting new Foreign Direct Investment (FDI) from India’s Mahindra & Mahindra Financial Services Limited (MMFSL), an upgrading of IFL’s rating by Fitch and the company recording its best-ever financial performance in the last financial year (FY 2020/21).
With the latest investment, MMFSL is now Ideal Finance’s largest shareholder with a 58.2% stake, making Ideal Finance its second foreign subsidiary. MMFSL’s total investment in IFL amounts to LKR 2 billion. Earlier, in 2020, MMFSL secured a 38.2% stake in Ideal Finance, providing the latter the backing of a massive financial giant with over USD 11 billion assets under management, which far exceeds that of Sri Lanka’s entire banking industry.
Fitch Ratings also recently upgraded Ideal Finance’s rating to ‘AA-(lka)’ from ‘BB-(lka)’ and assigned a ‘stable outlook’, providing a further vote of confidence on the company’s stability and prospects.
Adding further positive momentum to these developments, Ideal Finance recorded its best-ever annual financial performance in the financial year ended 31st March 2021, emphatically overcoming a host of issues stemming from COVID-19. In this same period, the country’s Non-Bank Financial Institution (NBFI) sector recorded a notable decline, reporting a drop in profitability and a surge in Non-Performing Loans (NPLs).
However, going against the industry trend, Ideal Finance achieved a simultaneous increase in profitability and a reduction of its NPL ratio. Profit Before Tax (PBT) increased by 76% to LKR 288.4 million in the financial year ended 31st March 2021, on a year-on-year (YoY) basis. Profit After Tax (PAT) grew by 74% to LKR 183.8 million YoY. Gross NPL ratio improved to 3.3% for the financial year, from 5.2% in the previous year.
“Mahindra & Mahindra Financial Services demonstrating its confidence in Ideal Finance and in Sri Lanka with this investment is a timely vote of confidence on both the country’s economic prospects and in Ideal Finance’s stability and growth trajectory,” Nalin Welgama, Chairman, Ideal Group, said. “The company’s stellar performance in the midst of numerous challenges, in out-performing the industry in all key indicators, demonstrates that confidence in Ideal Finance was well-placed.”
“Prudent strategic changes delivered dividends, as evidenced by this performance,” Ideal Finance CEO, Duminda Weerasekare said. “However, it is perhaps even more commendable that in addition to short-term improvements, developments undertaken during this challenging period has laid the foundation for a high long-term growth trajectory – particularly with the launch of our new digitization strategy.”
“The expansion of our branch network will further strengthen Ideal Finance’s presence in key areas outside of the Western Province,” Ideal Finance Regional Manager, Nilanga Jayalath said. “This positions Ideal Finance well to support and benefit from the growth of sectors such as agriculture, as the country focuses on boosting domestic production.”
Ideal Finance Ltd. (IFL), a NBFI registered with Central Bank of Sri Lanka, commenced operations in March 2012 with a clear focus on the rural and semi-urban sectors. Its lending portfolio consists of gold loans, SME loans, personal loans, motor cars, three wheelers and commercial vehicles. IFL has developed a quality lending portfolio, while recording sustainable annual growth in profitability.
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.”
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