CIOB highlights new investment opportunities in the construction industry

 

The Ceylon Institute of Builders, a leading building institution and service provider in the construction industry, organized a seminar to raise awareness among decision-makers, practitioners, and other industry stakeholders of the new Government's new opportunities. Dr. Priyathbandu Wickrama, Secretary for the Ministry of Water Supply, Urban Development Authority, Consultancy General Manager Ananda Samarasinghe, Infrastructure, and IT Board of Investment Director Ranjan Sibera, CIOB President Dr. Rohan Karunaratne, and CIOB Secretary Eng. Saliya Kaluarachi joined the program as a presenter.

Dr. Wickrama claimed in the keynote speech that the Government would serve as a catalyst to help the construction industry and would make the payments via the planned interim budget due to the construction companies. He further mentioned that four main cities to be built, i.e., Hambantota, Trincomalee, Jaffna, and Colombo, with nine corridors of the economy. In these leading cities.

He also said that the state would use foreign funding from overseas construction firms and give sub-contracts for mega projects to local companies. The builders for local investment would be local construction firms. Dr. Priyathbandu Wickrama told the participants that in the next few years, the Government plans to invest around Rs. 790 b on other developments in water projects. He said they needed professional contractors for construction.

The Government claims that in a system made under a national strategy, there are many resources available for the construction industry. Siberia said that the Government has agreed to achieve its objectives by building as the primary industry and has called foreign players to undertake international projects. Via the construction sector, the BOI hopes to contribute 5% to the GDP.

Dr. Karunaratne claimed that he wished to help the membership of the CIOB and the industry with the new opportunities available to them in the new growth plans in Sri Lanka, in particular. He said the sector had been seriously affected over the last few years, adding that the country had acquired strong leadership with the mandate provided by the majority of citizens.

To achieve anticipated growth and financial stability, the CIOB aims to assist market stakeholders by disseminating knowledge from time to time through seminars and forums. This active seminar attends by CIOB participants from all major and specialist construction firms and branded manufacturers, experts, academics, and other industry stakeholders.

OSL Take: Sri Lanka is presently undergoing an aggressive program of growth covering all principal areas of the economy on the island.  The Colombo Port City development is one of the country's major continuing mega-projects to match Sri Lanka with many financial hubs in South East Asia. Given the geographical location of Sri Lanka in the Indian Ocean, the country's relaxed corporate climate and numerous trade arrangements and the island's trade concessions have created Sri Lanka, the perfect company destination in the South Asian area. Foreign businesses/investors could, therefore, investigate possibilities for business/investment in the Port City project in Sri Lanka.

 VBS/AT/22102020/Z_TB2

GrandSpace unbolts at Astoria-Colombo

 

GrandSpace will expand its services to Astoria-Colombo, situated in the heart of the city center, by providing its wide range of customers with the best services and increased connectivity at a popular location in the center of Colombo. This launch will be GrandSpace 's second initiative to include thoroughly serviced office facilities, including virtual offices, conference rooms, and utterly facilitated co-working spaces for day offices.

The first Kohuwala project continues to accommodate multiple small businesses and entrepreneurs with various inexpensive and scalable solutions in different fields of commerce. The new location at Colombo 3 will make the new center one of the city hub's most sought after sites, offering upgraded facilities worthy of the dynamic business lifestyle you want.

For postal purposes and other business requirements, the virtual offices also provide customers with the primary official Colombo 3 location address. Customers are often equipped with a dedicated telephone line, thereby opening up an opportunity for the customer to retain their private office without the hassle of maintaining a physical office space.

These services come with 24/7 electricity, comfortable air-conditioned rooms, an expansive lobby room, in-house tea/coffee service, housekeeping, 24/7 CCTV surveillance, adequate parking, a dining area, and resting bays for a fast power-nap or quiet time at noon, along with other services.

The versatility in office spaces offers the deciding factor for a new company and a professional location for small businesses, budget-friendly with no furnishing or infrastructure hassle, which GrandSpace already provides. "For those who are dissatisfied with cramped workplaces and those who work from home for reasons of health protection, GrandSpace is the solution. Here, anyone can opt for a seat where you are entitled to your own technical, but private and secure office space," GrandSpace Director Samila Maddumage said.

Sri Lanka is presently undergoing an aggressive program of growth covering all principal areas of the economy on the island.  The Colombo Port City development is one of the country's major continuing mega-projects to match Sri Lanka with many financial hubs in South East Asia. Given the geographical location of Sri Lanka in the Indian Ocean, the country's relaxed corporate climate and numerous trade arrangements and the island's trade concessions have created Sri Lanka, the perfect company destination in the South Asian area. Foreign businesses/investors could, therefore, investigate possibilities for business/investment in the Port City project in Sri Lanka.

OSL Take: Sri Lanka's government's aggressive development program has further risen property prices, making properties on the island an accessible investment opportunity with short-term advantages. The proposed project of Colombo Port City will also improve land value. Foreign businesses/investors could, therefore, explore possibilities for business/investment in the real estate industry in Sri Lanka.

 VBS/AT/22102020/Z_TB1

Webinar promotes investment opportunities in Brazil and Sri Lanka

 

On 15 September 2020, the Embassy of Sri Lanka in Brazil organised a webinar on 'Business Prospects and Strategies for Effective Business Entry into Brazil' in collaboration with the Export Development Board (EDB) and the Sri Lankan Department of Commerce, aimed at introducing the Brazilian market to potential exporters in Sri Lanka and assisting them in identifying the prospects available and stringent market entry into Brazil.

Over 40 Sri Lankan exporters attended the webinar, while over 1600 viewers watched the EDB video upload. In delivering the welcome remarks, Director of the Market Promotion Division, Anoma Premathilake, highlighted the importance of organising this webinar. The trade presence of Sri Lanka in the Latin American region is minimal. During the keynote speech, Ambassador Musthafa M. Jaffer emphasised the need for Sri Lankan companies to actively participate in the Latin American area to gain market access to Sri Lankan exports. The current volume of trade and market share of exports to the Latin American Region from other Asian countries, especially Brazil, is very high compared to Sri Lanka. However, many of them face similar market conditions, a level playing field, and the same tariff rates.

Maurício Manfré, the resource person of this webinar, delivered his presentation covering critical areas of the Brazilian market, including the market opportunities available for Sri Lanka in Brazil, market barriers and other impediments/challenges, standards needed, certifications and authorities' knowledge, effective business strategies, business culture (negotiation/communications).

Manfré, who has 30 years of experience in international business and law, is the Executive Director of Ultrameres Brazil. He was the former head of the Cabinet's Business Directorate, responsible for promoting exports, strategic intelligence, and attracting foreign investment through its international representative offices in the Brazilian Export Promotion Agency (APEX) under the Brazilian Ministry of Foreign Affairs.

After the presentation, the Q&A session helped answer several concerns posed by companies regarding practical problems they faced while highlighting significant gaps between Brazilian rules and regulations on imports and other significant markets. Sri Lankan companies were also encouraged to adopt creative ways of conducting market penetration during the webinar. The program was also open for importers and through the initiation of joint ventures, business alliances, and partnerships with Brazilian companies, all of which will significantly facilitate access to the MERCOSUR market.

OSL Take: OSL Take: Sri Lanka has registered continuous growth in its commercial sector by implementing the latest techniques and technology. Sri Lanka's geographical position in the Indian Ocean, its ease of doing business, and the many government-enjoyed trade agreements and trade concessions have also made it an attractive business destination in the South Asian region. This initiative has resulted in a further rise in Sri Lanka's trade and bilateral ties with many countries. Therefore, market prospects for attractive returns in Sri Lanka may pursue by foreign companies/investors.

VBS/At/21102020/Z_TB7 

United Nations and Brandix partner to promote Biomass Energy

 

COVID-19 has contributed to ongoing health and economic crisis, exacerbating the global situation in poverty and climate. Driving change in the human-environment nexus to protect the health of human and natural resources is crucial to a future that does not replicate the crisis we are in today, as Sri Lanka works to construct 'forward' better coming out of the pandemic.

In this context, renewable clean energy will provide affordable, climate-compliant solutions that can help alleviate the COVID-19 crisis and beyond. Against this backdrop, Brandix Apparel Ltd. has partnered with the United Nations Development Program ( UNDP) to promote renewable energy in Sri Lanka by facilitating model fuelwood plantations for a sustainable supply of energy in Sri Lanka.

In speaking about this relationship, UNDP Deputy Resident Representative Faiza Effendi said, "There is a huge potential for a reset as nations brace for the COVID-19 aftermath." Ambitious green recovery strategies would enable countries to rebuild their economies and deepen their energy transition. This situation is an excellent time for Sri Lanka to speed up the switch to clean energy to maintain a more substantial recovery for everyone.

Sustainable biomass energy as a renewable energy source has the potential to improve local economies. The collaboration between the UNDP and Brandix, a pioneer in Sri Lankan apparel manufacturing at the forefront of sustainability efforts and a conscientious energy user, will ensure low carbon growth in Sri Lanka while improving the company's initiatives to encourage the use of renewable biomass energy. Some of the significant initiatives include helping biomass energy suppliers implement SLS 1551, a sustainable biomass energy standard, and developing sustainable fuelwood plantations.

As the first corporate organisation to move forward in our efforts to ensure that the biomass used by Brandix responsibly purchased from accredited suppliers under SLS 1551, this MoU also reaffirms Brandix. Besides, as an extension, we will continue to engage our associates through a home garden concept to participate in the UNDP energy planting program across the region, thereby paving the way for them to improve their livelihoods while becoming active participants in our sustainability agenda.

Easily accessible, affordable, and reliable renewable energy is available. However, the potential for large-scale renewable energy remains largely untapped in many developing economies. Investments in this region will allow Sri Lanka and other countries to reap the full benefits of renewable energy in terms of growth and environment ahead of the 2030 Sustainable Development Agenda.

OSL Take: Sri Lanka requires to add substantial ability to satisfy present and future energy requirements expected to expand at around eight per cent per year. Sri Lanka has a total energy-generating capacity of 40 GWH as it depends primarily on heat energy, including a coal-fired Chinese energy plant, which accounts for 45% of its production. Insufficient rainfall has restricted the ability to generate hydropower, and the government compelled to impose power cuts in early 2019 owing to an absence of an ability to produce. To satisfy electricity shortages, the government has resorted to buying costly emergency power.

 VBS/At/21102020/Z_TB6

Trade Finance and Investments to merge with Commercial Credit and Finance

 

Sri Lanka's Trade Finance and Investments PLC and Sri Lanka's Commercial Credit and Finance PLC have declared their intention to merge the remaining company with the latter. They reported that the Central Bank approved the proposed amalgamation of Trade Finance and Commercial Credit by letter dated 21 January 2020. Further, this merger was also supported by the Board of Directors of Trade Finance and Investments PLC and the Commercial Credit and Finance PLC (COCR) on 23 September 2020.

The scheduled merger is subject to the approval of the amalgamation by the shareholders of Trade Finance and COCR in compliance with Section 241(5) of the Companies Act No. 7 of 2007. An extraordinary general meeting of COCR shareholders will convene to discuss and, if considered necessary, pass the relevant resolutions authorising the amalgamation mentioned above and related issues.

COCR currently owns 99.65 per cent of Trade Finance and Investments PLC's ordinary shares, and such claims will cancel according to Section 240(3)(a) of the Companies Act No. 7 of 2007 upon amalgamation. For each share owned in such a stock, the other shareholders of Trade Finance and Investments PLC will pay Rs. 60, and no claims in COCR and Finance PLC will allocate.

Consequently, after the amalgamation takes effect, the number of shares in Commercial Credit and Finance PLC issued will remain unchanged. Two hundred forty-seven million previously reported capital would be Rs. 2.15 billion after amalgamation. The modified floated market capitalisation was Rs. 11 million as of 21 September 2020, and it will be Rs. 984 million after amalgamation. The percentage of public holdings as of 21 September 2020 was 0.35%, and it will be 13.22% after amalgamation.

Sri Lanka ended 2018 with inflation of 4.8 per cent, and economic growth estimates at around 2.5 per cent of GDP. Most central banks globally have lowered interest rates. India's Reserve Bank has lowered interest rates to counter India's economic slowdown. Accommodation, food service, and transportation services have contracted following the attacks on Easter Sunday.

OSL Take:

The observations of the local industry savant that Sri Lanka's goal of US$ 5 billion IT exports was attainable indicate the developments recorded by the IT sector including the emergent prospects in the field. Interested foreign businesses/investors could look at investing ventures in Sri Lanka's IT sector and gain profits while expanding the local IT market.

 VBS/At/21102020/Z_TB5

Sri Lanka's Sampath Bank ranked amongst Top 1000 World Banks 2020

 

On the 50th anniversary of the rankings, Sampath Bank PLC was recently ranked among the Top 1000 World Banks in 2020 by the UK Banker magazine, continuing to win awards and recognition in Sri Lanka and worldwide. The Banker, which has been delivering global financial intelligence since 1926, is the world's premier banking and finance resource. The Banker is the industry's leading source of knowledge and research.

The Banker's Top 1000 World Banks list has set the industry benchmark since 1970, providing comprehensive intelligence on the health and prosperity of the banking sector. "It is a great privilege to be recorded alongside the world's leading financial service providers in the Top 1000 World Banks 2020 of The Banker magazine," said Nanda Fernando, Managing Director of Sampath Bank PLC.

This achievement reflects our strong foundations, coming when we struggle for more than a year with competitive market conditions. This achievement would not have been possible, deprived of the leadership of our Board of Directors, the support of my entire Sampath Bank team, and the love and trust that countless Sri Lankans have invested in us. To give the nation more excellent value, we will continue to work.

The asset base of Sampath Bank exceeded Rs. 1 trillion earlier this year, making it the youngest Bank in Sri Lanka and one of very few to achieve this in the country's banking sector. Despite the uncertain market conditions over the past one and a half years, the Bank has continued to increase its asset base. This initiation reflects a true testament to Sampath Bank's strength and stability and the confidence invested by investors and customers alike in it.

At the significant World Finance Banking Awards organized by the UK-based World Finance journal, Sampath Bank recognizes as Sri Lanka's 'Best Retail Bank' and 'Best Commercial Bank.' In a survey commissioned and conceptualized by LMD and conducted by Brand Finance, the Bank was voted the most loved banking brand globally, placed among the top 10 'Most Loved Brands' in LMD's Brands Annual rankings, and placed 5th among the Most Valuable Entities in Sri Lanka.

Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the Sri Lankan people. Founded in 1987, the Bank has become a state-of-the-art financial institution which, thanks to its constant innovation and customer-focused approach to business, continues to be a market leader today. The Sri Lankan banking sector has launched many firsts, including the introduction of ATMs to Sri Lanka, extended banking hours, and slip-less banking, to name a few.

OSL Take: The statements by the top management of the Sampath Bank reveals the many business opportunities in Sri Lanka, and also for global companies, it is a welcome sign looking at expanding into other parts of the region. Further, the government of Sri Lanka focused on increasing the inflow of foreign direct investments to the country.

A hopeful sign for international companies/investors looking at doing business with the state is to recognize the need to modernize the laws of the country to attract more foreign investments to Sri Lanka. The geographical location of Sri Lanka in the Indian Ocean, the country's ease of doing business, and the many trade deals and trade concessions enjoyed by the state have made it an attractive business destination in South Asia.

VBS/At/21102020/Z_TB5

Sri Lankan Government to boost foreign income from exporting Moringa leaves to the foreign market

 

One hundred farming families in the Wellawaya Divisional Secretariat successfully harvest Moringa (drumstick) leaves in Athiliwewa and Siripuragama districts. The farmers in the area who grow drumsticks claim they can easily earn about 60,000 rs a month. Moringa trees leaves are harvested and shipped into foreign countries. Farmers who grow these trees say Sri Lankan drumstick leaves are in high demand on the foreign market. Farmers now earn a high income because of the market value of drumstick leaves of Rs—45-47 per kilo.

The project launched under the Ministry of Agriculture has already taken actions to provide the farming community with the requisite technical know-how and agricultural equipment free of charge. No disease affects the Moringa trees, and they grow in the dry region, according to the agriculture officials.

The farmers are thus able to conduct this cultivation very quickly and will take steps in the future to popularise this cultivation in the district, they said. State Agriculture Minister Sashindra Rajapaksa visited the plantations yesterday afternoon to inspect the farms and inquire into the necessary state intervention.

Speaking to the media, Sashinda Rajapaksa said it would provide all appropriate state support for these cultivations. He further said the state would take all possible measures for the good of the farmers and take steps to improve the peoples economy by bringing in foreign exchange in the future by growing this form of crops

Interested foreign businesses could look at introducing the latest technologies and trends in the global agriculture industry to Sri Lanka and also look at forming joint ventures with local companies to produce agricultural goods for export markets as well.

OSL Take: Sri Lanka’s agriculture sector-driven towards growth following setbacks suffered due to changing weather patterns. Also, the agriculture sector is engaged in improving the yields of key crops, especially paddy, which remains the main livelihood of the rural Sri Lankan community.

The change to upgrade the country’s agriculture sector by introducing the newest technologies with assistance from India and China would enhance Sri Lanka’s agriculture exports. Sri Lanka already has trade accords with several countries and trade privileges from the EU and the US, which would benefit any business involved in exporting goods from Sri Lanka. Therefore, Sri Lanka offers an excellent base for foreign companies interested in exporting goods from Sri Lanka to overseas markets.

The support prolonged by multilateral donor agencies to uplift Sri Lanka’s agriculture sector and the Sri Lankan government’s commitment to developing the industry are encouraging signs for foreign businesses/investors to discover business/investment opportunities in the island’s farming sector. Foreign businesses could also examine the possibility of engaging in the farming export sector, given the many trade agreements and trade privileges enjoyed by Sri Lanka with foreign countries.

 VBS/At/21102020/Z_TB3