Banking

Sri Lanka’s People’s Bank posts Rs19.3bn pre-tax profit

Friday March 29, 2024 8:02 pm

ECONOMYNEXT – People’s Bank, Sri Lanka’s second largest state bank by assets, posted 96.8 rupees consolidated operating income and 19.3 billion rupees of pre-tax profit for the financial year ended December 31, 2023, the Bank said in a statement.

The net interest income, however, slipped to 67.8 billion rupees during the year from the previous year’s 91 billion rupees, reflecting high interest costs on term deposit funding due to the high interest rate environment prevailed in 2022 and early 2023 as well as significant interest concessions extended to the customers, it said.

Sujeewa Rajapakse, the Chairman of People’s Bank said he was pleased with the Bank’s overall performance on both quantitative and qualitative front considering the added burden shouldered as a State Bank – amid the most challenging set of circumstances over the past four years.

“Taking on some of these challenges head-on, we have navigated the first phase of the Domestic Debt Optimization program with great success, converted our rupee liquidity stresses to now an all-time high excess, further augmented our regulatory capital amidst limiting circumstances and drive super normal growth across all our overall digital platforms,” he said in the statement.

“Looking ahead, with the economy showing signs of rejuvenation as expected, we remain focused and well geared to support the country in its next phase of its growth.,” he said.

“As we have done so over the last several years, we reaffirm our commitment to play our role to foremost safeguard national interest.”

The Bank said its interest expense continues to normalize with the current interest rate environment from the last quarter of 2023.

Despite inflation-pushed cost pressures, total consolidated operating expenses rose by only 5.5 percent to reach 62.2 billion rupees in 2023 compared the previous year’s 59.0 billion rupees, the Bank said, citing it stringent cost control and efficiency improvements.

Total consolidated customers deposits grew by 12 percent and rupee loans rose by 1.4 percent while the lender’s all currency net loans contracted by 4.0 percent year-on-year, partly reflecting the rupee appreciation impact on its foreign currency loan book.

The Bank’s total consolidated assets stood at 3.21 trillion rupees at the end of 2023 compared to 3.13 trillion rupees.

It said the Bank’s Tier I ratio was 12.4 percent (vs 11.9 percent in 2022) while Total Capital Adequacy Ratio was 17.4 percent as at December 31, 2023 (vs 16.3 percent in 2022).

“The Bank’s solvency levels remain sound ultimately reflecting efforts made since the onset of Basel III on July 1, 2017. Further efforts to bolster its regulatory capital, including for the purposes of additional contingency, is currently in process,” the lender said.

The Bank’s Chief Executive Officer/General Manager Clive Fonseka said they had embarked on a new strategic direction during 2023 focusing on rebalancing the business model, embracing technology integration, and intensifying the migration towards all our digital platforms.

“The year ended has witnessed notable success in each of these areas – the core of them being a proactive mindset, characterized by a constant search for innovation and adaptability,” Fonseka said.

“Amidst these challenging times, it must be said that our team has demonstrated steadfast commitment and admirable dedication. Their unrelenting drive to push the Institution forward is the force behind us.”

“Looking ahead, we will further our current path whilst also focusing on further streamlining our operations and enhancing efficiency across all parts of our business. Central to our approach is prioritizing customer satisfaction, ensuring that every decision and action is aimed at delivering exceptional value and experiences to our valued clientele,” he said.

“Through these concerted efforts, we are ready to not only meet the evolving needs of our stakeholders but also emerge as a leader in our operating landscape. With some of our most difficult challenges now behind us, we look forward with a great degree of hope and optimism”. (Colombo/March 29/2024)

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Weather and Climate

Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Monday June 3, 2024 2:17 pm

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

Politics

UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

Monday June 3, 2024 1:59 pm

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

Accidents

300 of 100,000 trees in Colombo considered high risk: state minister

Monday June 3, 2024 1:05 pm

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)