Business
Sovereign is the ‘overarching constraint’ on banks’ ratings: report
Weak operating environment continues to pressure Sri Lankan Bank ratings and the Sovereign is the overarching constraint on the large banks’ ratings due to the banks’ high Sovereign exposure and Sri Lanka-centric operations, a new report by Fitch says.
“Heightened risks from the challenging operating environment stemming from the Sri Lanka sovereign’s (CCC) weak credit profile and the ongoing Covid-19 pandemic continue to pressure the ratings of large Sri Lankan banks, says the credit ratings agency in its report. “Large banks’ financial performance since the pandemic’s onset has been better than we expected, supported by relief and forbearance, although there are significant risks to the banks’ standalone credit profiles. We expect a recovery in real GDP in 2021 and 2022 relative to the contraction in 2020, which underpins our forecasts for better near-term performance of these banks. However, this is subject to a high degree of uncertainty, as it depends on the trajectory of the pandemic. Sri Lanka has experienced a surge in Covid-19 infections since April 2021 and the disruption to domestic economic activity may hinder the recovery in real GDP recorded in 1Q21,” Fitch says.”The sovereign is the overarching constraint on the large banks’ ratings due to the banks’ high sovereign exposure and Sri Lanka-centric operations. This has led to rating compression, with the national ratings of most large banks placed at ‘AA-(lka)’. The deteriorating operating environment has impacted, in particular, the large banks’ risk and financial profiles, although their franchises remain intact despite the pandemic. We see negative rating action as most likely to stem from a deterioration in the sovereign credit profile and the operating environment, with upside for the large banks’ ratings being limited,” Fitch says.Meanwhile, the report, “Large Sri Lankan Bank Peer Review – 2021″, available at www.fitchratings.com says,” The National Ratings of Sri Lanka’s large banks reflect unchanged relativities on the national rating scale. Most of the banks are rated at ‘AA-(lka)’, as current conditions do not permit their Viability Ratings or Local-Currency IDRs on the international scale to be higher than the sovereign’s Local-Currency IDR of ‘CCC’ and the banks’ OE score of ‘ccc’. This has led to rating compression.”
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
