Business
CSE plunges by 2.5 per cent in the wake of budget proposals
By Hiran H.Senewiratne
The CSE fell 2.5 percent at the beginning of trading yesterday subsequent to Finance Minister Basil Rajapaksa’s 2022 budget presentation due to the 25 percent retrospective tax surcharge on firms that earned over Rs. 2 billion in 2020/21 and the 3 percent increase in Value Added Tax (VAT) for banks, insurance, and financing firms.
VAT was increased to 18 percent from the current 15 percent on banks and financial service providers under supply of financial services by specified institutions with effect from Jan.1, 2022, targeting Rs 14 billion from the proposal.
CSE fall was led by banks and financial sector institutions. This was expected and banks were worried about the tax because it would adversely impact the banking and financial sector institutions, market analysts said.
However, during the latter part of the day the CSE showed some recovery. It was the same in 2015 when the last government came up with a similar retrospective tax that was introduced, stock market analysts said.
The All- Share Price Index plunged to 10,372 immediately after it opened and dropped to over 2 percent but later recovered slightly due to the LOLC group witnessing some buying pressure from two main companies, LOLC Holdings and LOLC Finance, that drove the market, stock market analysts said.
Accordingly, both indices showed mixed reactions. The All -Share Price Index went up by 86.28 points and S and P SL20 went down by 17.57 points. Turnover stood at Rs 6.9 billion with two crossings. Those crossings were reported in Chevron Lubricants, where 340,000 shares crossed for Rs 35.7 million and its shares traded at Rs 105 and LOLC Holdings 29000 shares crossed for Rs 20.1 million, its shares traded at Rs 696.
In the retail market top five companies that mainly contributed to the turnover were, LOLC Finance Rs 2.1 billion (74.6 million shares traded), Expolanka Holdings Rs 428 million (2.1 million shares traded), Browns Investments Rs 423 million (36.6 million shares traded), RIL Properties Rs 364 million (23.8 million shares traded) and LOLC Holdings Rs 339 million (480,000 shares traded). During the day two LOLC Group companies share prices appreciated. Those were LOLC Holdings, whose share price appreciated by Rs 29.25 or four percent. Its share price shot up to Rs 738 from Rs 692.75, contributing 31 points to the All- Share Price Index. LOLC Finance share price appreciated by Rs 12.90 or 15 percent. Its share price shot up to Rs 95.50 from Rs 82.60. Other than the LOLC Group of companies, significant price appreciation was witnessed in Watawala Plantations, whose share price appreciated by 15 percent or Rs 12.90. Its share price appreciated to Rs 95.250 from Rs 82.60.During the day 316 million share volumes changed hands in 52000 share transactions.
MSCI Inc., the leading provider of research-based indexes and analytics, has included Expolanka Holdings PLC in its Frontier Markets Equity Index.
Expolanka is one of the three largest additions to the MSCI Frontier Markets Index measured by full company market capitalization. The other two are Phat Dat Real Estate (Vietnam) and Islandsbanki (Iceland).
MSCI also announced four deletions from the Index, including Commercial Bank of Ceylon PLC. The MSCI Sri Lanka Index has two constituents. JKH is the other, apart from Expolanka. The MSCI Sri Lanka had offered 7.55 per cent return as opposed to 8.57 percent by MSCI Frontier Markets index since 31 May 2002. MSCI Sri Lanka’s PE ratio is 10.78 times as against 16.59 times of MSCI Frontier Index.
Yesterday, the US dollar was quoted at Rs 202.05 as per the Central Bank controlled price. This was introduced to control price increases of essential items in the local market.
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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