Business
Kanrich boss says they’re not a failed finance company and will become stronger after merger
Merging with Nation Lanka in terms of Central Bank Master Plan
Kanrich Finance Ltd (KFL) is not a failed or collapsed company and is doing well in terms of all financial indicators. Therefore, by respecting the Master Plan of the Central Bank, Kanrich will amalgamate with another finance company and continue/engage in finance business as a stronger merged entity, Chairman and Director KFL, Ravi Ratnayake says.
“We will be merging with Nation Lanka Finance PLC (NFL) and will increase their capital funds to over three billion rupees. This is being done under the Master Plan for Consolidation of Non-Bank Financial Institutions by the Central Bank. We have received the approval for this merger which is aimed at meeting the deficit of the capital adequacy requirements of Rs. 2.5 billion, ” Ratnayake told the Sunday Island.
The Central Bank plans to reduce the number of finance companies in business here from 42 to 25. “One condition of their Plan is that the companies which cannot show a capital of Rs. 2.5 billion must merge with another company or become a non-licensed company. Though Kanrich fulfilled all other requirements, we missed this threshold marginally. We had to fill this capital gap or become a non-licensed company. Therefore, Kanrich is in the process of finalizing a merger with Nation Lanka,” he said.
“As directed by CBSL, Kanrich Finance has already started to settle its public liabilities of customers in full and this process will be completed before the end of February 2023. We are settling these liabilities as part of the conditions for the merger. We have adequate funds to settle all deposits and promissory notes.” Ratnayake added.
He said that Kanrich depositors after they received their deposits are welcome to join the newly merged entity. “There is another advantage to them as they can benefit from the increasing deposit rates in the market. In addition, our staff can provide advice if needed on re-investing.”
Ratnayake said that with the merger, the total branch network would increase to 60 and staff to nearly 1,000 but assured that there would be no re-trenching.He stressed that Kanrich Finance is doing well and continues to make profits demonstrating high financial stability. “Despite the C-19 and regulatory restrictions, we posted Rs. 183 million in profits before tax and Rs. 113 million after-tax profits last year. Kanrich is also reaching Rs. 2 billion capital and possesses an impressive capital adequacy ratio of 29 percent.” he added.
He recalled that prior to this in 2019 Kanrich had a hard time overcoming many challenges. They did so by institutional restructuring, cost reduction, and increased efficiency and productivity resulting in a positive turn around reducing overhead costs. Senior management even voluntarily agreed to cut their salaries and allowances.Commenting on their successful micro finance business, he said their product was entirely different from what is available elsewhere in the market as it was based on a sustainable financing concept.
“However we opted out of such loans mainly due to political interventions in the microfinance industry.”
The political leadership publicly declared in 2019 that they would write off rural masses’ micro-loans, resulting in the accumulation of extensive NPL portfolios by financial institutions, including Kanrich. The extensive NPL portfolio in the micro product resulted in weak income statements and tight liquidity.
The company was subject to severe lending and deposit restrictions by the regulatory authority.He stressed that Kanrich will not exit from the finance business as it is not a failed or collapsed company and does not have any other financial problems.
“On the contrary, we are doing well in terms of all financial indicators. After the merger we will continue to engage in the finance business as an even stronger merged entity,” he added. “With the amalgamation with Nation Lanka we will become stronger and as a standalone lending institution will provide a better service to customers. With the merger we will rebrand and introduce a new product line up.”
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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