News & market updates

Fitch says Hatton National Bank’s potential acquisition of Bank Alfalah’s Bangladesh operations is unlikely to affect HNB’s rating and would have a modest impact (BAFL: ~Rs.80bn assets, Rs.15.5bn equity — about 5% of HNB’s assets and 8% of its equity). Fitch estimates <1pp drop in capital ratios and flags manageable FX risk; HNB's CET1 was 16.2% at end‑1H24.

ASPI fell 4.7% and the S&P SL20 lost 6.3% last week amid election-related bearishness, with banking and blue-chip counters (HNB, JKH, CTC, RICH, VFIN) dragging the market; Renuka Agri Foods saw a large off-board block and price rise.

Fitch says Hatton National Bank's potential purchase of Bank Alfalah's Bangladesh operations is unlikely to affect HNB's A(lka)/Stable rating and would reduce capital ratios by under 1 percentage point; BAFL had LKR80bn assets and LKR15.5bn equity. HNB's CET1 was 16.2% and Fitch said taka depreciation risk would be manageable.

Fitch says Hatton National Bank’s (HNB) potential acquisition of Bank Alfalah’s Bangladesh operations is unlikely to affect HNB’s ratings and would cut its capital ratios by under 1 percentage point. BAFL’s Bangladesh assets were about LKR80bn (≈5% of HNB’s assets), and central bank approval is needed to start due diligence.

Colombo Stock Exchange fell, with the All Share Index down 0.36% to 10,869 and the S&P SL20 down 0.38% to 3,058. Turnover was 759 million; top turnover/price moves included Renuka Agri Foods and Sampath Bank (up), HNB, John Keells and Commercial Bank (down), with a net foreign inflow of 0.37 million.

HNB PLC has partnered with Wonrich Dairy under a Value Chain Financing initiative to provide tailored finance, technical support and inputs to over 12,500 dairy farmers nationwide.

Port City Colombo has onboarded 100+ companies as Authorised Persons (APs) as of 24 Aug 2024, with 22 designated Businesses of Strategic Importance. Several local banks including Sampath, Commercial Bank, HNB, NDB, Nations Trust and DFCC have applied to establish offshore banking branches in the SEZ under new offshore banking regulations.

Port City Colombo onboarded 100+ companies as Authorised Persons by Aug 24, 2024; banks including COMB.N0000, SAMP.N0000, HNB.N0000, NDB.N0000, NTB.N0000 and DFCC.N0000 have applied to open offshore banking branches under the July 26, 2024 offshore banking regulations.

The Exporters' Association of Sri Lanka held its 27th AGM on 30 Jul 2024, electing Yohan Lawrence as Chairman and appointing HNB's Rozanne de Almeida and Hayleys' Nalaka Rathnayake as 1st and 2nd Vice Chairs; the managing committee includes listed exporters such as HNB, Sampath, Hayleys, Dipped Products, Lion Brewery, Bogala Graphite and Hela Apparel.

Colombo Stock Exchange closed down: ASPI fell 0.95% to 11,093 and S&P SL20 fell 1.26% to 3,148, with turnover at 513 million and net foreign inflow of 41.9 million. Top turnover generators included John Keells, Ceylon Cold Stores, Commercial Bank and Nations Trust; SMB Finance and Browns Investments were among gainers while several banks, Ceylon Cold Stores, L B Finance and Sigiriya were down.

Hatton National Bank (HNB) has approved starting discussions and issuing a non-binding offer to acquire Bank Alfalah's Bangladesh operations. The proposal is subject to due diligence, negotiations and necessary regulatory clearances.

Hatton National Bank (HNB.N0000) has submitted a non-binding offer to acquire Bank Alfalah’s Bangladesh operations. Bank Alfalah’s board gave in-principle approval, but the transaction requires approvals from the central banks of Pakistan and Bangladesh and completion of due diligence.

Hatton National Bank (HNB) said its board has approved entering talks and making a non-binding offer to buy Bank Alfalah's Bangladesh unit; HNB will update once due diligence, negotiations and regulatory clearances are completed.

ASPI fell 162.1 points (-1.43%) to 11,200 and the S&P SL20 dropped 2.0%, led by declines in banks and frontline counters including HNB, COMB, LOLC, JKH and SAMP; turnover was Rs. 554.3m and foreigners were net buyers of about Rs. 49m.

HNB Assurance (HNB Life) and HNB General Insurance reported group GWP of Rs.10.9 billion in 1H 2024, up 20% YoY. HNB Life GWP was Rs.6.4bn (+24%) and HNB General GWP Rs.4.6bn (+14%), with group PAT +14% and assets up to Rs.56.5bn.

Colombo stocks slipped as the S&P SL20 fell 0.4% and the ASPI 0.2%, with turnover rising to Rs. 798 million aided by crossings. Banking counters (Commercial Bank, HNB, Sampath) and blue chips (JKH, CTC) led losses while Kelani Tyres gained and foreign investors were net buyers (+Rs.15.6m).

Colombo Stock Exchange closed down: All Share Index fell 0.21% to 11,458 and S&P SL20 fell 0.43% to 3,288; turnover was 797 million with a net foreign inflow of 15.5 million. Top foreign buying included Melstacorp and John Keells, while foreign selling hit Commercial Bank, Ceylon Cold Stores, Associated Motor Finance and Talawakelle; top turnover contributors were Commercial Bank, Dialog, Kelani Tyres, HNB and John Keells.

Fintech Forum, Sri Lanka was launched and registered as a national association to represent and promote the fintech industry, collaborating with banks, NBFIs, LankaPay and the Central Bank; the inaugural board includes executives from LOLC Finance, Hatton National Bank, Commercial Bank and Dialog Finance.

HNB General Insurance, part of the HNB group, won the Silver Award at the SLITAD People Development Awards 2023/24; it was the only general insurer among 19 companies to receive the recognition.

Fintech Forum, Sri Lanka was launched as a national association to position Sri Lanka as a regional centre for Fintech, with an inaugural board including executives from LOLC Finance (LOFC.N0000), Hatton National Bank (HNB.N0000), Commercial Bank (COMB.N0000) and Dialog Finance (CALF.N0000).

Fintech Forum, Sri Lanka was established as a national association to promote Sri Lanka as a regional centre of excellence for fintech; the inaugural board includes senior executives from LankaPay and member firms such as LOLC Finance, Hatton National Bank, Commercial Bank and Dialog Finance. The forum will engage with the Central Bank and government to shape fintech regulation and foster partnerships and exports.

The Sri Lanka–Korea Business Council panel featured Advocata chair Murtaza Jafferjee warning that rising debt, high interest rates and sharp rupee depreciation threaten fiscal stability and require reforms; IMF projects about 3% annual GDP growth for 2024–29 contingent on disciplined policy.

Nine Sri Lanka banks, including Commercial Bank, HNB, NDB, NTB and DFCC, have applied to open branches in the Colombo Port City special economic zone to serve offshore customers; Bank of China has also expressed interest. The banks will be regulated by Sri Lanka's central bank and the Port City is a dollarized SEZ exempt from central bank liquidity tools.

Colombo market opened lower with the ASPI closing at 11,495, down 9 points, on turnover of Rs.580.5m; capital goods led turnover (38%) while banking and blue-chip counters put pressure on the index.

Commercial Bank of Ceylon's home loans portfolio grew to Rs. 72.965 billion as at 31 March 2024, making it the market leader in Sri Lanka's home loans market. The bank highlighted product suites including first-time buyer, green and flexible home loan schemes.

Commercial Bank of Ceylon's home loans portfolio reached Rs. 72.965 billion as at 31 March 2024, making it the market leader in Sri Lanka's home loans. The bank — the first private sector leader in this segment — highlighted product offerings including first-time buyer schemes, Green Home Loans (including residential solar) and flexible repayment options.

Hatton National Bank PLC said its Rs12 billion debenture issue was oversubscribed. The Basel III-compliant Tier-2 unsecured subordinated debentures (5/7/10-year) were offered at Rs100 each with 120 million units issued; basis of allotment will be notified to the CSE.

Hatton National Bank (HNB) has partnered with the Sri Lanka Tennis Association to sponsor the 109th Sri Lanka Nationals 2024 Tennis Tournament, scheduled for August–September with over 1,400 expected entries. The event will feature Junior, Senior and Wheelchair competitions across 17 clay courts at multiple venues.

Colombo Bourse rose for a fifth straight session as the ASPI gained 1% to close at 11,531 (S&P SL20 +1.3%), with banking and food & beverage stocks led by HNB, SAMP, DFCC, MELS and LMF driving the rally amid Rs.776m turnover.