News & market updates

An IPS panel argued that targeted trade, energy and agricultural reforms — including potential RCEP accession and energy-price adjustments — are needed to boost Sri Lanka's export competitiveness; electricity cost shares rose in apparel from 3.38% (2019) to 5.58% (2023) and in tea from 10% to 13%, squeezing margins.

Asia Siyaka Commodities PLC said Sri Lanka's tea export value for Jan–Sep reached $1.059 billion while September volumes dropped 15% YoY to 19.7m kg (a 26-year low). The company noted Rupee strengthening left rupee earnings flat at Rs.323.3bn, limiting benefits to producers.

ASPI closed down 4 points at 12,309 while S&P SL20 rose 2 points, with turnover of Rs.1.5 billion and foreign investors net selling Rs.109.4 million. ACL, UAL and HELA were among gainers while CFIN, LMF, LIOC, HAYL, RCL and SPEN were notable losers; Capital Goods led turnover.

Hayleys Solar (Hayleys PLC) installed a 1,273 kWp grid-tied solar PV system at Martin Bauer Hayleys' tea extract facilities in Hatton, Nuwara Eliya, expected to generate 1,486 MWh/year and offset over 1 million kg CO2.

Industries Minister Vijitha Herath said the tea industry is crucial to economic growth and that the government will include measures in Budget 2025 to improve the sector's competitiveness. He noted estate workers' daily wage was recently raised to Rs. 1,350 and urged stakeholders to cut production costs and boost export earnings.

Uplands Tea Factory achieved record auction prices of Rs. 2,800/kg for PKE1 and Rs. 2,200/kg for BOP (medium grown) at the 15–16 October auction, surpassing its previous PKE1 record of Rs. 2,550/kg.

The ASPI closed the week up 0.2% at 12,313 (23-point gain) while the S&P SL20 fell 0.5%, with market turnover averaging Rs. 1.75 billion. Diversified financials led turnover and there was positive investor interest in plantation names (BALA, AGPL), LB Finance, Lankem, C T Holdings, Central Finance, HNB and Digital Mobility (PKME).

Commercial Bank of Ceylon plans to raise Rs.5 billion via a green bond on the Colombo Stock Exchange in September 2024 with support from GGGI. GGGI is also assisting Sri Lanka on sovereign green bond frameworks, Article 6 carbon-market readiness, e-mobility and tea-industry sustainability.

Kotagala Plantations (KOTA.N0000) was downgraded by Fitch to 'CCC(lka)' and its unsecured debentures to 'CCC-(lka)' after a statutory wage hike and weakening liquidity. Fitch flagged insufficient cash to meet ~LKR540m and LKR496m maturities in FY25–26 and noted guarantees/possible support links to CFLB and Lankem (LCEY).

September tea production hit a seven-year high of 24.13 million kilos (+27.7% YoY); Jan–Sep 2024 cumulative production rose 1.41% to 196.21 million kilos.

Siyapatha Finance PLC opened its 51st branch in Matugama, expanding its islandwide network. The branch will offer leasing, deposits, gold financing, loans and Smart Pay, and the company carried out CSR activities including tree planting and donating computers.

Colombo Stock Exchange rebounded as the ASPI rose 0.27% to 12,290 on turnover of about Rs.1.75 billion, driven by gains in hotel counters and select plantation and telecom stocks.

Colombo Stock Exchange closed higher: All Share Index +0.27% to 12,290 and S&P SL20 +0.17% to 3,613 on turnover of Rs 1.7 billion. Top movers included Dialog, Digital Mobility, Dipped Products, Maskeliya and Hemas, with net foreign outflow of Rs 317 million and mixed foreign buying/selling across counters.

Sri Lanka's Ambassador to Jordan, J.A.D.S. Priyangika Wijegunasekara, met the Al-Salt Chamber of Commerce on 09 Oct 2024 to boost two-way trade and tourism and promote Sri Lankan exports (notably tea, coconut and rubber), inviting a Jordanian business delegation to visit Sri Lanka.

DIMO.N0000 partnered with SDF.N0000 to offer special financing for STIHL tea pruners and tillers, with downpayments of 10% for tea pruners and 20% for tillers. The scheme includes after-sales service and training and aims to boost agricultural mechanization for small and medium farmers.

Sampath Bank's fully owned subsidiary Siyapatha Finance PLC opened its 51st branch in Matugama. The branch will offer leasing, deposits, gold financing, loans and digital services (Smart Pay); the company also carried out a tree-planting CSR initiative and donated computers to a local school.

Colombo market closed lower with the S&P SL20 down 0.7% and ASPI down 0.4%, while foreigners were net buyers of Rs.153.6m. Banks (e.g. Commercial Bank, Sampath) dragged indices, while Balangoda Plantations, John Keells and Hayleys Fabric led turnover with mixed price moves.

Colombo market closed the week higher with the ASPI up 1.07% on Friday (ASPI +2% for the week) and S&P SL20 +1.10%, with turnover at Rs.2.3bn. Banking stocks (Commercial Bank, HNB), renewed interest in plantation names (KAHA, HAPU, UDPL, MASK) and strong foreign buying in JKH drove activity.

Colombo Stock Exchange closed up as the All Share Index rose 1.07% to 12,294, led by banks with total turnover of Rs2.3bn and Rs563mn in bank trades. Top contributors included Commercial Bank, Sampath Bank, Lanka IOC and Browns Investments, and net foreign inflow was Rs107mn.

Colombo bourse saw net foreign inflows of Rs. 339.1 mn while the ASPI fell 19 points on turnover of Rs. 2.1 bn. John Keells drew the most foreign buying and led turnover, banks (Sampath, DFCC) weighed on the index and AGPL rose 9.8% after a dividend.

Rajpal Obeyesekere has been appointed Chairman of the Sri Lanka Tea Board effective 4 October 2024, succeeding Niraj de Mel. He brings decades of private-sector experience and a record of building diverse, innovative teams.

IPS Executive Director Dushni Weerakoon, launching 'Sri Lanka: State of the Economy 2024', urged fiscal austerity to protect debt sustainability and warned foreign reserves may be insufficient for 2028 repayments. The report also flags unequal VAT burdens, low public healthcare spending, need for renewable energy investment, export (tea) growth and IT/skills gaps.

Ratan Tata, the former chairman who led the Tata Group for more than 20 years, has died aged 86, the group said. He oversaw major overseas acquisitions and the growth of group firms including TCS, Tetley and Jaguar Land Rover.

Dividend · Rs 1.00 · XD Oct 21, 2024

First Interim dividend of LKR 1/share; XD 2024-10-21; record 2024-10-21; payable 2024-10-28; FY Ending 31st March, 2025

Aitken Spence PLC's Deputy GM Dr. Stephanie Rahaman participated in the UN Global Compact 'Forward Faster Now | Asia & Oceania' event in Kuala Lumpur (Aug 5-6, 2024), presenting on corporate sustainability. Sri Lankan delegates also showcased sustainability initiatives in tea and apparel and discussed AI for sustainability and SME support.

Sri Lanka's Ambassador to Poland Priyangika Dharmasena met the Polish Chamber of Commerce on 6 October 2024 and proposed promoting Sri Lankan exports beyond tea and textiles, inviting a Polish trade delegation to visit Sri Lanka and holding an online seminar for Polish businesses.