Business
Kanrich Finance to merge with Nation Lanka Finance and increase capital base to over Rs. 3 billion
By Hiran H.Senewiratne
Kanrich Finance Ltd (KFL) will merge with Nation Lanka Finance PLC (NFL) and will increase their capital funds to over Rs. 3 billion, chairman/Director KFL Ravi Ratnayake said.
“This is being done under the Master Plan for Consolidation of Non-Bank Financial Institutions, evolved by the Central bank, and 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 Island Financial Review.
Ratnayake added: “As per directions of the CBSL, Kanrich Finance has already started to settle the public liabilities of their customers in full and this process will be completed before the end of February 2023. The company settles these liabilities as part of the regulations for the merger and we have adequate funds to settle all deposits and promissory notes.
“Kanrich depositors, after they receive 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.
“The Central Bank plans to reduce the number of finance companies 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, Kanrich is missing this threshold marginally. Therefore, Kanrich has to fill this capital gap or become a non-licensed company. Accordingly, Kanrich is in the process of finalizing a merger with another finance company.
Kanrich Finance is performing well and continues to make profits, recording high financial stability. Despite the C-19 and regulatory restrictions, we recorded Rs. 183 million in profits before tax and Rs. 113 million after-tax profits last year. Kanrich is also reaching Rs. 2 billion in capital and possesses an impressive capital adequacy ratio of 29%.
“Prior to this in 2019, Kanrich had a tough time and to overcome this they implemented institutional restructuring, cost reduction and increased efficiency and productivity which resulted in a positive turn around resulting in reducing overhead costs. Senior management even voluntarily agreed to cut their salaries and allowances.
“With regard to Micro Finance Business, the product of Kanrich is entirely different from what is available in the market as it is based on a sustainable financing concept.
“However we opted out of such loans mainly due to political interventions in the microfinance industry. 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 area resulted in weak income statements and tight liquidities.
“The company was subject to severe lending and deposit restrictions by the regulatory authority.
“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 as well.
“On the contrary, it is doing well in terms of all financial indicators and after the merger will continue to engage in finance as an even stronger merged entity.
“On the subject of the Central Bank going ahead with the consolidation of finance companies and undertaking reforms in the finance sector, we have a doubt about the timing of these financial reforms.
“President Ranil Wickremesinghe recently said that he does not want to implement any reforms because they cannot be undertaken in a crisis situation.
“Unfortunately, the economic crisis is still unfolding and it has an enormous adverse impact on the business sector, including finance. Therefore, I believe that the government could consider giving the distressed companies some time to recover before subjecting any reforms.
“With the amalgamation with Nation Lanka we will become stronger and as a standalone lending institution will provide a better service to customers.”
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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