News & market updates

HNB PLC appointed Damith Pallewatte as Managing Director/CEO effective 22 November 2024. He has been Acting CEO since April; under his leadership HNB recorded Rs. 38.7 billion PBT for 9 months of FY24 and outlined priorities including MSME revival, digital banking, trade/export facilitation and a potential Bangladesh acquisition.

Government will compile a comprehensive report on SME loans and is reviewing whether to extend a temporary suspension of debt recovery under the Parate law that currently expires on 15 December. The Central Bank and commercial banks are preparing the loan data to design targeted relief and assess feasibility.

The Colombo market ended the post-election week with ASPI down 1.1% for the week (S&P SL20 down 2.7%) but closed yesterday up 0.56% on below-average turnover of Rs.1.9bn. Banking stocks led turnover (Seylan, Pan Asia, Sampath, HNB) while BREW, COMB, CINS, SEYB and DIPD were top positive contributors and JKH dipped.

Phantom Investments (Rayynor Silva) bought a 9.75% stake in DFCC Bank (42.2m shares) for Rs.3.58bn at Rs.85/share. The shares were sold by LOLC Investment Holdings; Rayynor, who earlier took ~10% of Sampath Bank, said the DFCC investment is strategic and long term.

Colombo Stock Exchange rose as the ASPI gained 0.56% (72.17 pts) to 13,054, led by bank activity which accounted for Rs736mn of turnover. Investors cited profit-taking after bank gains linked to ISB debt-restructure reports and Fitch noted banks' profiles would improve after a successful sovereign restructure.

Colombo Stock Exchange closed up: ASPI +0.06% to 13,113 and S&P SL20 +0.13% to 3,919 on turnover Rs2.7bn. Top contributors included John Keells, Commercial Bank, Lion Brewery and Access Engineering; banking stocks were mixed and there was a net foreign outflow of Rs366mn.

Colombo market slipped on profit-taking: ASPI fell 0.95% (126 pts) and S&P SL20 fell 1.6% on turnover of Rs.6bn. John Keells, Hatton National and Sampath were major decliners while SERV and MARA saw investor interest; foreigners were net sellers of Rs.772.5m.

Colombo Stock Exchange fell as the ASPI closed down 0.95% (125.63 pts) at 13,105 and the S&P SL20 down 1.66% to 3,914 amid profit-taking; turnover was Rs6 billion led by capital goods. Top negative contributors included KHL.N0000, HNB.N0000, SAMP.N0000, COMB.N0000 and NDB.N0000.

A seminar on 27 Nov will outline Central Bank-issued corporate governance directives for licensed banks, which take effect 1 Jan 2025 and include requirements such as a minimum of 12 board meetings per year and vacancy for directors missing more than three meetings.

Hatton National Bank PLC reported Group PBT of Rs 38.7 Bn and Bank PAT of Rs 22.2 Bn for the nine months ended Sept 2024. Deposits reached Rs 1.62 Tn, LKR CASA rose to 35.8%, net stage 3 ratio improved to 3.32% and Tier I capital was 15.51%.

HNB Group reported nine-month PBT of Rs. 38.7bn (up 26% YoY) and PAT of Rs. 22.2bn (up 34% YoY). Deposits rose to Rs. 1.62tn, Net Stage 3 ratio improved to 3.32% with 60.5% provision coverage, while NII fell 18% due to lower rates and the bank recognised an FX revaluation loss.

Colombo Stock Exchange rose, with the ASPI up 0.24% to 13,231 on Nov 18 and turnover of Rs5.5bn led by banks (Rs1.8bn) and capital goods (Rs1.1bn). Distilleries Company announced a first interim dividend of Rs1 and its share closed at Rs32.90.

Hatton National Bank's HNB Toastmasters Club held its 21st Club Officer Installation Ceremony on Nov 1, 2024 at HNB Towers, inducting a new executive committee led by President Don Nilanka Dushmantha. The event featured performances and was attended by HNB senior management including Acting CEO Damith Pallewatte.

Colombo's ASPI briefly touched 13,000 while turnover rose to Rs. 4.3 billion as markets rallied ahead of parliamentary elections. The banking sector led turnover and counters such as John Keells, Richard Pieris, C T Holdings, Bukit Darah and DFCC were among top contributors.

Lasantha Fernando was appointed Chairman of Regional Development Bank (RDB) on 1 November 2024. He brings over 35 years of banking experience, including senior roles at Hatton National Bank (HNB), and will lead RDB's push to support rural and semi-urban economic growth.

HNB PLC has partnered with the Women’s Chamber of Industry and Commerce as the official Banking Partner for the Ramp Up 24 event to support women-led MSMEs and promote export-ready local brands; proceeds will go to the Special Entrepreneur Fund and WCIC Academy.

Daraz launched its 11.11 sale running until Nov 17 with up to 90% discounts, vouchers worth over LKR 150 million, free delivery and partner bank discounts (including Commercial Bank, DFCC, HNB, Pan Asia, LOLC Finance, NDB) and featured brands such as DIMO.

Government will compile a comprehensive report on SME loans to design relief and is evaluating extending a temporary suspension of debt recovery under the Parate law due to expire on Dec 15. Representatives from Commercial Bank, Hatton National Bank, Union Bank and Sampath Bank attended the meeting.

ASPI rose 0.6% to 12,875 (a multi-week high) as banking and blue-chip stocks led gains; turnover was Rs.2.4bn and foreign investors were net sellers of Rs.23.3m.

Hatton National Bank PLC (HNB) is the official banking partner for the WCIC Ramp Up 24 event at Hilton Colombo, supporting women-led MSMEs to showcase export-ready brands; proceeds will support the Special Entrepreneur Fund and WCIC Academy.

Banks, regulators and SMEs met at the Presidential Secretariat to discuss SME loan repayment difficulties and parate execution; the parate execution law has been suspended until Dec 15. The Central Bank and commercial banks will evaluate temporary suspension of debt recovery and compile a report to design relief.

Colombo Stock Exchange closed higher as the ASPI rose 0.58% to 12,875 and the S&P SL20 gained 0.91% to 3,866, with banking stocks contributing over LKR 1bn of turnover. Vidullanka announced a scrip dividend listing and Ceylon Tobacco declared a third interim dividend of 40.9 per share.

HNB PLC signed an MOU with United Mercury Group to provide leasing solutions for agricultural and construction machinery. Offers include warranties (e.g., one-year/600‑hour for Matador harvesters, one-year/2000‑hour for construction machines), Rs50,000 spare parts, parts discounts, a buyback on default and insurance cover (Rs4.5M accidental death, Rs600,000 natural death).

Sampath Bank (SAMP.N0000), Commercial Bank (COMB.N0000) and Hatton National Bank (HNB.N0000) were awarded foreign exchange counters at Bandaranaike International Airport, receiving Rs633.662m, Rs381.364m and Rs225.689m respectively as part of contracts totalling over Rs2.3bn. Contracts run for three years.

The Cabinet approved three-year contracts for currency exchange counters at Bandaranaike International Airport, awarding Sampath Bank (Counter No.02) Rs.633.662m, Commercial Bank (Counter No.04) Rs.381.364m and Hatton National Bank (Counter No.11) Rs.225.689m. The awards followed a competitive bidding process.

HNB PLC signed an MoU with H. T. Peiris Company to provide comprehensive tax advisory services to its SME and Business Banking customers, including free regional workshops and dedicated regional SPOCs to support client tax compliance and operations.

Colombo Stock Exchange closed mixed with the ASPI up 0.07% to 12,727 and the S&P SL20 down 0.02% to 3,823. Top gainers included John Keells, Melstacorp, Dipped Products, Hemas and LOLC, while banking stocks fell (HNB, Sampath, DFCC, NDB down; Commercial Bank up) with a net foreign inflow of Rs45mn.

WCIC’s ‘Ramp Up! 2024’ fashion fundraiser will be held on 12 November at the Hilton Colombo, showcasing over 100 collections to support female designers and women-led SMEs; sponsors include Hatton National Bank (official banking partner) and Janashakthi Group.

Colombo market fell for a third day as ASPI lost 77 points to 12,719 on profit taking, with turnover up at Rs.3.2bn and net foreign inflow of Rs.200m (Rs.199.8m into JKH). Banking and capital goods led activity while several counters (COMB, MELS, DFCC, RICH, NDB) weighed on the index.

Hatton National Bank PLC (HNB) signed an MoU with H.T. Peiris & Company to provide comprehensive tax advisory services to its SME and business banking customers, including free specialised workshops across HNB’s nine regions and dedicated regional SPOCs.