Business
Fitch says finance and leasing companies more susceptible to interest-rate risk
Any signs of funding or liquidity stress in banking sector would carry contagion risk for FLCs’
Fitch believes that finance and leasing companies (FLCs) are more susceptible to interest-rate risk in the currently rising interest rate environment, as their mostly fixed-rate loans reprice more slowly than their liabilities.Fitch Ratings said so when they announced that they have maintained Sri Lanka-based People’s Leasing & Finance PLC’s (PLC) National Long-Term Rating of ‘A+(lka)’ on Rating Watch Negative (RWN).
“The RWN reflects potential deterioration in the finance and leasing company’s creditworthiness relative to other entities on the Sri Lankan national rating scale, given the heightened stress on its funding and liquidity. We see the funding and liquidity conditions of domestic FLCs as tied to those of the banks. This is due to the direct funding and deposit relationships as well as the banking sector’s importance to the financial system. We believe any signs of funding or liquidity stress in the banking sector would carry contagion risk for FLCs,” Fitch said.
“The credit profiles of FLCs are under pressure from Sri Lanka’s (Long-Term Local-Currency Issuer Default Rating: CCC (Under Criteria Observation)) challenging operating environment, with significant near- to medium-term downside risk presented by the weakened sovereign credit profile. This could further impair the economy and weigh on financial market performance, damaging the asset quality and earnings of FLCs,” Fitch observed.
Referring to People’s Leasing & Finance PLC it said,” PLC’s business profile is supported by its domestic franchise as the country’s second-largest FLC, with a market share of 11% of total FLC-sector assets at end-June 2022, benefiting from links to its 75% parent, state-held People’s Bank (Sri Lanka) (PB, AA-(lka)/RWN). However, we believe PLC’s business profile is vulnerable to the intensifying risks in the domestic market, similarly to peers, which may limit its ability to generate and defend business volume in the medium term.”
They further said: We expect key asset-quality metrics to deteriorate, similarly to those of peers, in the financial year ending March 2023 (FY23) and believe this may extend into FY24 owing to the weak operating environment. Pressure is likely to emanate from high interest rates, rising inflation and the prolonged impact of the economic contraction. Deterioration is already evident in PLC’s elevated loan impairment charge of 4.0% of average gross loans at end-1QFY23, compared with an average of 1.5% in FY20-FY22.”
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
