Sri Lanka's UTECH Technologies explores overseas markets with the all-new 'UTECH BLACKBOX.'

 

UTECH Technologies Ltd., the leading provider of Industrial IoT (Internet of Things) and Industrial Automation Solutions in Sri Lanka, has entered overseas markets with its flagship 'UTECH BLACKBOX' telematic product. The UTECH BLACKBOX is a universal telematics portal used in a wide variety of industrial installations, such as manufacturing equipment, power generators, building equipment, air compressors, UPS systems, chillers.

The UTECH BLACKBOX's unique feature is that it can fit seamlessly into machinery through a wide variety of link protocols. Computer monitoring and control is possible from anywhere in the world via the UTECH Remote Web Portal. Real-time dashboards, data logging and graphing, routine service scheduling, GPS, geofencing, and SMS / email alerts are allowed by the web portal.

UTECH Managing Director Riyad Ismail commented, "After comprehensive field trials in harsh environments in those countries, we are proud to obtain export orders to India and the Americas." We see this as the beginning of the involvement of Sri Lanka in the global marketplace for an end-to-end solution for IIoT (Industrial IoT). Hence we aim to grow into other international markets while retaining our core values of continuous innovation, cutting-edge technology, and superior customer service.

An international award at the NBQSA honors that year awarded to UTECH BLACKBOX in 2019. UTECH also has a strategic partnership with the domestic mobile service provider of Sri Lanka, Mobitel, to deploy UTECH solutions across the vast corporate customer base of Mobitel. Besides, the product range of UTECH includes cold-chain monitoring systems, smart agriculture, tracking of vehicles, access control systems, and other tailored solutions for factory automation.

OSL Take: In some key areas, Sri Lanka is emerging as a destination of choice as a regional IT Business Process Outsourcing (BPO). AT Kearney ranked Sri Lanka eleventh among the top 50 outsourcing destinations in the world in 2017, moving up three slots from 2016. Sri Lanka's computer industry manufactures world-class goods and has dramatically expanded over the past decade. In the information services industry, telecommunications, banking, finance, and insurance (BFSI) and software testing included.

The ICT and digital infrastructure sectors of Sri Lanka are on a growth path, generating many opportunities for business/investment in the two industries. The government of Sri Lanka has also prioritized the growth of digital infrastructure and the expansion of the ICT education sector, providing various incentives to increase connectivity while removing intrusion and improving data services for both business and consumer users. Such technologies can help maximize business performance, which is an attractive asset for investors in infrastructure. OSL also sees investors leasing spectrum capital for the further growth of the telco sector as an opportunity.

VBS/AT/23102020/Z_TB6

Sri Lanka Tourism partners with Australia for a 5-year roadmap

 

Yesterday, the Sri Lanka Tourism Development Authority (SLTDA) announced its collaboration with the Australian Market Development Facility (MDF) to develop a research roadmap that would pave the way for the positioning of Sri Lanka as the leading tourism destination in Asia. Since the industry needs accurate knowledge to make evidence-based decisions, the roadmap will allow for a clearer understanding of tourism behavior, which will, in turn, help the public and private sectors prepare strategically.

This strategy is the first time a systematic review has conduct to assess the efficacy and use of the SLTDA's data collection efforts. In position with the ambitions set out in the Sri Lanka Tourism Strategic Plan, the SLTDA established the need for better quality data and research to enhance the strategic direction of Sri Lanka's tourism sector, said Kimarli Fernando, Chairman of Sri Lanka Tourism. He spoke of the SLTDA's objective of finding a diverse range of visitors, tourism facilities, and services to make Sri Lanka a top global tourism destination.

Mrs. Fernando also said the roadmap would help improve the research capabilities and practices of the SLTDA to identify opportunities for new investments, promotions, and policies. To analyze the existing research systems and procedures, the SLTDA and MDF will work closely. The alliance will also carry out a different review.

"Based on this, a five-year roadmap will create, focusing on improving the collection, analysis, and use of tourism data," Fernando said. She added that a series of measures to take over the next five years are listed in the roadmap, putting Sri Lanka Tourism's potential to the levels adopted globally by leading tourism destinations. 

The initiative expects to support the national tourism organization (NTO) and industry stakeholders effectively respond to the current global travel and tourism industry standard.

The involvement of Australia in this study is part of its broader support for the Sri Lankan tourism industry through the MDF, supported by the Government of Australia and implemented by Palladium, in collaboration with Swiss Touch. Australia has offered support to the SLTDA in the past to improve its research potential by facilitating a study tour with Tourism Research Australia (TRA) for the SLTDA staff.

OSL Take: Sri Lanka's tourism trade is on an uninterrupted growth path and is one of the fast-growing economic sectors in the country. Traveler entrances to the country are on a constant growth path as well, which in turn has resulted in the development of business/investment opportunities in Sri Lanka's tourism industry. Sri Lanka continues to make it to the top as a must-visit destination in lists of travel destinations compiled by renowned travel publications. Foreign businesses/investors could, therefore, explore business opportunities in Sri Lanka's tourism industry.

VBS/AT/23102020/Z_TB5

Sri Lanka Tourism Board to develop a 5-year strategic plan to transform tourism research

 

Sri Lanka Tourist Development Authority (SLTDA) and the Market Development Facility of Australia (MDF) have joined forces to establish a research roadmap to encourage the role of Sri Lanka as the leading tourism destination in Asia. The strategic plan will surface the way for a deeper understanding of Sri Lankan visitors and help the public sectors make evidence-based tourism decisions and investments.

This initiative is the earliest time that Sri Lanka has conducted a systematic review to assess the efficacy and use of SLTDA's data collection efforts. In position with the goals set out in Sri Lanka's Tourism Strategic Plan, SLTDA established the need for better value data and research to enhance the strategic direction of Sri Lanka's tourism sector.

"The objective of SLTDA is to recognize a diverse range of visitors, tourism services, and products that would make Sri Lanka a top global tourism destination," said Kimarli Fernando, Chairman of Sri Lanka Tourism. "As the primary agency for gathering, analyzing, and publishing tourism-related data, we plan to use this roadmap to update SLTDA's research capabilities and practices to identify new investment, promotion, and policy opportunities," she added.

A global consultancy will work closely with SLTDA to review existing research processes and practices and perform a gap analysis through funding given by MDF, the flagship private sector development program for the Australian Government. They have decided on a five-year plan focusing on enhancing the collection, research, and use of tourism data will establish.

The roadmap outlines a series of steps to be taken over the next five years to put Sri Lanka Tourism's potential to the levels followed globally by leading tourism destinations. Australia's participation in this study is part of its more comprehensive support to the Sri Lankan tourism industry through MDF, which, in collaboration with Swisscontact, is supported by the Australian Government and implemented by Palladium.

Australia has extended support to SLTDA in the past to expand its research potential by facilitating a study tour with Tourism Research Australia (TRA) for SLTDA employees. Implementing the five-year research roadmap will strategically support Sri Lanka Tourism and the brotherhood of the tourism industry with data-driven, informed decision-making that will help them with target marketing while allowing higher ROI for resources and investments. It also expects that the initiative will enable the National Tourism Organization (NTO) and industry stakeholders to respond effectively to the current global travel and tourism industry standards.

OSL Take: Sri Lanka's tourism industry is on a continuous growth path with tourist arrivals to the country also on the increase. Sri Lanka continues to list as a must-visit destination by globally renowned travel publications. All this has stemmed from a rise in foreign investments in the country's tourism industry. The continuous growth in Sri Lanka's tourism industry has further expanded the business potential in the country's leisure and hospitality sectors.

Once the plan is in place, the corporate/investment opportunities in Sri Lanka's tourism industry would further expand. Therefore Sri Lanka's tourism industry would become a hotspot for business opportunities. Sri Lanka continues to list as a must-visit destination by globally renowned travel publications.

VBS/AT/23102020/Z_TB5

Sri Lanka explores investment opportunities with EIB on green projects

 

The possibilities for collaboration in green projects were discussed by Sri Lanka and the European Investment Bank (EIB) when an envoy from Sri Lanka to the European Union recently met with top EIB officials in Brussels. As a follow-up to the conference between the Foreign Ministers of Sri Lanka and Luxembourg held in Colombo on 31 January 2020, Ambassador Grace Asirwatham of Sri Lanka to Belgium, the European Union, and Luxembourg met Dr. Werner Hoyer, President of the European Investment Bank (EIB), on 24 September 2020.

The conference also joined by a team of senior EIB officials consisting of Vice President Christian Kettel Thomsen, Director General / Deputy Head of Operations Luca Lazzaroli, Head of the Asia & Pacific Division, Public Sector Operations, Edvardas Bumsteinas Global Partners Group, and Donal Cannon, Head of the EIB Regional Representation for South Asia based in New Delhi.

The discussion focused on the ongoing activities of the EIB in Sri Lanka and the possibilities for Sri Lanka and the EIB to establish cooperation in the field of Green Projects and impressed by the emphasis on promoting green projects in Sri Lanka under the National Policy System 'Views of prosperity and splendor' with medium to long-term objectives, in particular green public transport, the establishment of eco-industrial zones for the recycling of industrial waste, the construction of green buildings under the green and smart cities, etc.

Concerning the proposals for the growth of the renewable energy sector, particularly for wind and solar energy projects, the President of the EIB confirmed that the areas proposed for financial cooperation are well within reach of the EIB and agreed to assist Sri Lanka in achieving the proposed renewable energy targets.

The President of the EIB welcomed Sri Lanka's contribution to environmental conservation, climate change mitigation, and cooperation with the UNFCC, including exchanging information on nationally defined goals, GHG emission reduction goals by 2030, and progress towards achieving SDGs. Dr. Hoyer advised Sri Lanka to continue the technical discussion with the EIB Vice-President and Senior Officials on the necessary project proposals to develop the financial cooperation envisaged for investments in green projects.

OSL Take: The government of Sri Lanka's focus is on making the country a maritime hub in the Indian Ocean region. The port already has an industrial zone on the premises, which provides an ideal business space for companies engaged in exports and logistics. The recent achievements of the ports of Colombo and Hambantota suggest that the country is moving closer to achieving this goal. All these innovations will help Sri Lanka engage with other countries in trade activities. On the other hand, by developing other harbors around the nation and developing the necessary infrastructure facilities, Sri Lanka could attract more cruise liners to the state. Foreign businesses/investors should explore the increasing investment opportunities in Sri Lanka's ports and shipping sector.

 VBS/AT/23102020/Z_TB3

Sri Lanka anticipates US$500mn influx to rupee bonds, US$700mn China loan in 2020

 

Sri Lanka expects a $700 million loan from China's purchases of Chin and rupee bonds and a Samurai and Panda bond to raise dollar inflows in 2020, Nivard Cabraal, Capital Markets State Minister for Finance, said. After forex risk cover provides via a dollar-rupee swap, foreign investors expected to invest about US$ 500 million in rupee bonds in 2020, he said. Inquiries from investors are already arriving, Minister Cabraal said.

In the last two weeks, before the swap announced, there was a net purchasing of rupee bonds. The central bank will also begin work to collect $500 million from bonds denominated in Panda (Yuan) and Samurai (Yuan). Sri Lanka would not default on foreign obligations, and on October 02, he said, a billion US dollar bonds repaid with money credited to investors.

He said the downgrade by Moody's to Caa1 (CCC+ equivalent) of Sri Lanka's sovereign rating sufficiently justified, and the economy was recovering. Cabraal said it was necessary to keep the rupee steady and that the central bank had bought dollars on the interbank market in the last three months.

The central bank purchased 30 million dollars on September 29 to avoid the rupee from appreciating. While the rating agency has downgraded, he said, the country's economic agents are sending money and continuing operations.

As domestic credit slows and inflows not completely expended, Sri Lanka's rupee, loosely attached to the US dollar, appreciates. Sri Lanka reversed the worst import controls since the fall of the Bretton Woods regime in 1971 in April 2020. The import controls introduce to allow capital to repay debt obligations, Cabraal said. Sri Lanka had never lost and would have held the record that he had claimed.

OSL Take: The latest report launched by the Central Bank of Sri Lanka highlights a crucial area of focus in the next five years. The announcement that it would create investments worth Rs. Thirty billion within the next five years is a positive sign for foreign businesses/investors exploring business/investment opportunities in Sri Lanka. They could start exploring investment opportunities in the biodiversity restoration and management sector and even present to the government of Sri Lanka projects that could implement under the program.

Sri Lanka's economic policies and the continuously improving ease of doing business environment have helped promote the country as an ideal business/investment destination in the South Asian region. Therefore, the proposed issuance of the bond would offer a perfect investment opportunity for the discerning investor.

The call by the Central Bank of Sri Lanka for private investment banks has opened up an investment opportunity for foreign businesses/investors. Sri Lanka's economic indicators show the country is heading in the right development path, and the government's development agenda would also help in this aspect. Therefore, foreign businesses/investors could invest in Sri Lanka without having any doubts. The move by the Colombo Stock Exchange and the South Pacific Stock Exchange to reach a deal to collaborate on market development would serve as a confidence booster for foreign businesses/investors to invest in Sri Lankan stocks.

 VBS/AT/23102020/Z_TB2

Softlogic Capital to obtain majority shares of Abans Finance for Rs.995mn

 

Yesterday, Softlogic Capital PLC, the diversified Softlogic Holdings PLC's financial sector holding firm, said it had agreed to buy Abans Finance PLC's majority stake in a transaction of Rs.995 million from Abans PLC. Abans PLC owns 33 million shares in Abans Finance PLC or 49.67 percent.

In terms of the 1995 Takeovers and Mergers Code as amended in 2003, Softlogic Capital said it would pay Rs.30.10 per share and declare a mandatory offer to Abans Finance's minority shareholders. As of the end of June 2020, Abans Finance had an asset base of Rs.8.5 billion and a deposit base of a little over Rs.5 billion. The net asset per share of the business was Rs.24.08. Yesterday, Abans Finance shares closed at Rs.29, up Rs.8.50, or 41.46 percent.

In a media release, Abans PLC said it is divesting its interest in Abans Finance with a capital gain from Softlogic Capital. The selling price at which the mandatory bid will declare represents a 47 percent premium to the recently traded price of Rs.20.50.

Meanwhile, shortly after completing the mandatory bid, Softlogic Capital said that Abans Finance would merge with Softlogic Finance PLC. Softlogic Capital has a 72.94 percent shareholding, with the surviving company being Softlogic Finance. Softlogic Capital also said minority shareholders of Abans Finance PLC do not accept the mandatory offer grants 11 Softlogic Finance shares for every six shares held following the amalgamation by Abans Finance PLC.

"As per the most recent issued quarterly financial statement as of June 30, 2020, this ratio determined based on the corresponding net asset values of the two firms," Softlogic Capital said in a stock market filing. The accord is subject to governing approval by the Sri Lankan Central Bank, the Commission on Securities and Exchanges, and the Colombo Stock Exchange.

OSL Take: The latest report launched by the Central Bank of Sri Lanka highlights a crucial area of focus in the next five years. The announcement that it would create investments worth Rs. Thirty billion within the next five years is a positive sign for foreign businesses/investors exploring business/investment opportunities in Sri Lanka. They could start exploring investment opportunities in the biodiversity restoration and management sector and even present to the government of Sri Lanka projects that could implement under the program.

Sri Lanka's economic policies and the continuously improving ease of doing business environment have helped promote the country as an ideal business/investment destination in the South Asian region. Therefore, the proposed issuance of the bond would offer a perfect investment opportunity for the discerning investor.

The call by the Central Bank of Sri Lanka for private investment banks has opened up an investment opportunity for foreign businesses/investors. Sri Lanka's economic indicators show the country is heading in the right development path, and the government's development agenda would also help in this aspect. Therefore, foreign businesses/investors could invest in Sri Lanka without having any doubts. The move by the Colombo Stock Exchange and the South Pacific Stock Exchange to reach a deal to collaborate on market development would serve as a confidence booster for foreign businesses/investors to invest in Sri Lankan stocks.

 VBS/AT/23102020/Z_TB1

SL's foreign currency debt falls beneath US$ 500mn this year

 

The remaining foreign currency-denominated debt owed by Sri Lanka for repayment over the remainder of the year falls below US$ 500 million, like last week, the Central Bank settled its US$ 1.0 billion sovereign debt due on October 4, including coupon payments due at the time of settlement. 'On October 2, 2020, on behalf of the Government of Sri Lanka, the Central Bank of Sri Lanka effectively finalized the settlement of the maturing US dollar 1 billion Foreign Sovereign Bond (ISB) along with the due coupon payments,' the Central Bank said in a statement released on Friday.

With this settlement, Sri Lanka now has a remaining foreign currency debt of US$ 438.6 million maturing from October 5 to December 31. Hence, alleviating fears about the country's ability to fulfill its foreign currency debt in the face of impaired access to international capital markets to roll over such debt triggered by market unrest caused by a pandemic.

Last week, Moody's Investors Service issued a rare two-tier downgraded from B2 to Caa1 on the Sri Lankan sovereign, revising the outlook to stable from negative, citing Sri Lanka's high risks of debt refinancing, strained fiscal deficit and governance, and institutional vulnerabilities. Many, including the private sector, were shocked by the fact that the rating reduction came on the verge of a billion-dollar bond settlement and, despite the government's repeated assurances of its capability and commitment to connecting debt obligations as they come due.

 This settlement and other recent positive improvements in the Sri Lankan economy have positively responded from the domestic foreign exchange market. The expected inflows to the domestic foreign exchange market, backed by constructive steps taken by the State of Sri Lanka and the Central Bank of Sri Lanka, are expected to reinforce market sentiment further in the period ahead," it added.

The data shows that Sri Lanka has US$ 4.6 billion in foreign currency debt repayments due in 2021. This data includes principal payments of US$ 3.6 billion and interest payments of US$ 996 million. By the end of August, Sri Lanka had US$ 7.4 billion in foreign currency reserves. Still, debt settlements could have dented their position, as, during September, there were US$ 991.2 million in debt repayments and US$ 1.031 million in bond settlements on October 2.

Nevertheless, the narrowing gap in the merchandise trade account due to the rapid recovery of exports and the slowing down of imports, and the $700 million owed by the China Development Bank as the additional tranche of the $1.2 billion syndicated facility could partially offset the full impact of debt repayments on the reserves.

OSL Take: The decrease in foreign debt in Sri Lanka is indicative of the level of confidence in Sri Lanka's economy and investment interest. Therefore foreign investors could confidently explore investment opportunities in Sri Lankan bonds.

Sri Lanka's export portfolio expanded continuously, and now poultry will add to the long list of exports.  Further improving the discussion between the World Bank and the Sri Lankan government would result in a further increase in development assistance to the island nation. This initiative is an encouraging sign for foreign businesses/investors keen on doing business with Sri Lanka since the interest shown by multinational lending agencies would help secure funding for large scale projects.

 VBS/AT/22102020/Z_TB6