Category: business

අර්බුදකාරී ශ්‍රී ලංකාවෙන් ගෙවීම් ලබා ගැනීමේදී අපනයනකරුවන් මුහුණ දෙන
දුෂ්කරතා සැලකිල්ලට ගනිමින්, ඉන්දියානු සංචිත බැංකුව (RBI) ඊයේ (19)
ආසියානු නිෂ්කාශන සංගමයේ (ACU) යාන්ත්‍රණයෙන් පිටත ඉන්දියානු
රුපියල්වලින් වෙළඳ ගනුදෙනු පියවීමට අවසර ලබා දී තිබේ.

ඉන්දියාවෙන් අත්‍යවශ්‍ය භාණ්ඩ මිලදී ගැනීම සඳහා ශ්‍රී ලංකාවට මූල්‍යකරණය
කිරීම සඳහා State Bank of India (SBI) විසින් ශ්‍රී ලංකාවට ලබා දුන්
ඩොලර් බිලියන 1 ක වාරික ණයක් මාර්තු මාසයේදී රජය විසින් සහතික කර තිබුණි.

ශ්‍රී ලංකාවෙන් අපනයන ආදායම සහ SBI හි ණය පහසුකම ලැබීමේදී අපනයනකරුවන් අත්විඳින දුෂ්කරතා සැලකිල්ලට ගනිමින්, විධිවිධානයට යටත්ව ශ්‍රී ලංකාව සමඟ එවැනි වෙළඳ ගනුදෙනු ACU වලින් පිටත ඉන්දියානු රුපියල්වලින් පියවීමට තීරණය කර ඇති බවට ඉන්දියානු සංචිත බැංකුව නිවේදනයක් නිකුත් කර ඇත.

Sri Lanka Telecom Group (SLT Group), the National ICT solutions
provider, recorded a Group Profit After Tax (PAT) in Q1 2022 of Rs.
2.7 billion, despite challenging economic conditions.

Consolidated revenue recorded a year-on-year (YoY) growth of 5.4% to
Rs. 26 billion in the same period, in comparison to the corresponding
period in the previous year.

SLT Group Chairman Rohan Fernando stated: “The first quarter of 2022
proved more challenging than we had expected; however SLT-MOBITEL’s
overall performance reflected the resilience and strength of our
portfolio. Throughout 2022, we aim to continue to deliver value for
all stakeholders reinforcing our support to bridge the digital divide
serving the Nation and our people. Prudent financial discipline was
also a key factor in our success.”

Beginning the new year, the group continued its focus on the digital
transformation agenda, streamlining the cost base and automating
processes while delivering and creating value for stakeholders and the
nation.

SLT Group’s EBITDA (Earnings Before Interest, Tax, Depreciation, and
Amortisation) recorded a 9.9% YoY growth to stand at Rs. 10.7 billion,
with the EBITDA margin improving to 41% for the quarter against 39.4%
in the corresponding period of the previous year. The Group recorded a
Profit Before Tax (PBT) of Rs. 3.5 billion for the quarter.

SLT Group CEO Lalith Seneviratne added: “We continue to invest in the
best of emerging technologies, including networks and digital
capabilities, and continue our efforts to deploy an innovative
portfolio of products and services implementing the transformation of
the Company. Our considerable infrastructure investment allows us to
continue innovating and improve customer experience.”

The group stated that its revenue growth was primarily driven by the
increased broadband revenues resulting from the ongoing accelerated
fibre expansion project under the National Fiberisation Programme and
due to the expansions and upgrades in the 4G/LTE network. The
investment towards fiberisation and the aggressive roll-out and
marketing of fibre solutions paid off, as it contributed to achieve Q1
targets for the group with increased consumer demand. Further, the
group saw an increase in PEO TV revenues due to the accelerated fibre
expansion project. The group’s revenue from career domestic services
too improved during the period.

The Operating Cash Flows of the group grew to Rs. 16.3 billion, up by
35.3% YoY. The group recorded a favourable cash and cash equivalents
position of Rs. 31.6 billion as at the end of the quarter. SLT Group’s
contribution to the Government of Sri Lanka during the first quarter
of 2022 amounted to Rs. 4.2 billion in direct and indirect taxes,
including levies.

Sri Lanka Telecom PLC (SLT), the holding company of the group,
recorded Rs. 4.1 billion, in Profit After Taxes for Q1 2022. Revenue
for the quarter recorded at Rs. 15.9 billion, whilst the EBITDA and
Operating Profits stood at Rs. 6.3 billion and Rs. 1.1 billion,
respectively.

SLT CEO Janaka Abeysinghe commented: “We are on track for business
growth and improved profitability, driven by rapid adoption of
broadband services, fiberisation and increased bandwidth consumption,
which is generating robust demand. My team is focused on growth. We
are committed to re-invigorating our core broadband and fixed
operations while pursuing modernization of our infrastructure. We will
continue to work to maintain this positive momentum throughout 2022.”

The Mobile services arm of the Group, Mobitel (Pvt.) Ltd, sustained
revenues at previous levels, earning Rs. 11.6 billion in the Q1 2022.
Both EBITDA and Operating Profit margins remained positive at 38.9%
and 19.3%, respectively, whilst foreign exchange losses negatively
affected the bottom line of the company, resulting in a net loss of
Rs. 0.8 billion for the quarter.

Mobitel CEO Chandika Vitharena stated: “Even in these unprecedented
times, we are poised to capitalise on the growing need to simplify
communications. As the National Mobile Service Provider, we
continually aim to introduce next-level solutions driven by the
digital acceleration across our market segments, delivering
superlative customer experience.”

The SLT Group stated it is looking to implement several key strategies
to meet the economic slowdown and the challenging operating
environment that includes cost increases, inflation, rupee
depreciation against the US dollar, and delays in importing necessary
equipment. Consolidating infrastructure at group level, restructuring
field staff to work smarter, encouraging and deploying more staff to
work from home, offering value addition to all customer segments, and
a focus on delivering long-term financial performance through a more
sustainable business model are among these strategies.

Source: The Morning News Paper

Sri Lanka is sliding inexorably into default as the grace period on
two unpaid foreign bonds nears an end, the latest blow to a country
rattled by economic pain and social unrest.

The island nation could be formally declared in default if it fails to
make an interest payment to bondholders before Wednesday (18), when
the 30-day grace period for missed coupons on dollar bonds ends. That
would mark its first default.

Sri Lanka’s Government announced in mid-April it would stop paying
back its foreign debt to preserve cash for food and fuel imports as it
struggled with a dollar crunch that’s led officials to implement
capital controls and import curbs. A few days later, it failed to
service a $ 78 million coupon on its dollar bonds due in 2023 and
2028, leading S&P Global Ratings to declare a selective default.

“Without an agreement, there will be a formal default,” said Carlos de
Sousa, a money manager at Vontobel Asset Management in Zurich.
“Legally that matters. But for markets, Sri Lanka is already de facto
in default, so the price effect of such an event is probably not going
to be significant.”

Source: The Morning News Paper

The U. S.  Department of States, in its 2021  Investment Climate Statement, identifies Sri Lanka as a challenging place to do business, with high transaction costs aggravated by an unpredictable economic policy environment, inefficient delivery of government services, and opaque government procurement practices.

The statement, published on its website, says investors noted concerns over the potential for contract repudiation, cronyism, and de facto or de jure expropriation.

It says public sector corruption is a significant challenge for U.S. firms operating in Sri Lanka and a constraint on foreign investment.

“While the country generally has adequate laws and regulations to combat corruption, enforcement is weak, inconsistent, and selective.  U.S. stakeholders and potential investors expressed particular concern about corruption in large infrastructure projects and in government procurement.  The government pledged to address these issues, but the COVID-19 response remains its primary concern.  Historically, the main political parties do not pursue corruption cases against each other after gaining or losing political positions,” the statement said

A tongue lashing given by President Gotabaya Rajapaksa over a delay in the central bank giving loans with re-finance (printed money) erupted without prior discussion, but the issue has been resolved a channel of communications established, Governor W D Lakshman said.

“This is something that had given rise to a lot of debate, accusations and counter accusations,” Governor W D Lakshman told reporters in Colombo in Sinhalese.

“The central bank as a representative agency of the government, as part of it, has to do certain thing on behalf of the government.”

The issue raised new questions over the independence of the institution which had depreciated the currency from 4.70 to 185 to the dollar since independence from British rule in the worst performance among pegged South Asian monetary authorities through money printing.

President Rajapaksa slammed the central bank in public after summoning Governor Lakshman to his office, over a delay in giving credit to Coronavirus affected companies with printed money (central bank re-finance) at time when the rupee was already under pressure and imports were controlled.

Responding to questions from reporters Governor Lakshman said there had been no prior discussion before the institution and officials were summoned for the meeting.

“If such a question had been asked it would have happened in a different way,” Governor Lakshman said.

“Later when there were problematic situations on two occasions, the problem was solved in that way. I acted and got a discussion early we have started a process to inform the Prime Minister and President.

“We have now solved this problem and are working with some agreement.”

President Rajapaksa’s brother Mahinda Rajapaksa, who is Prime Minister is also the Finance Minister.

“About this credit program, the Cabinet took certain decisions, and the central bank was informed to carry them out,” Governor Lakshman explained.

“Usually the Monetary Board meets, and decides on the most appropriate way and implements it.”

2023 වන තෙක් ශ්‍රී ලංකාවට GSP + බදු සහන ලබා දෙන බව යුරෝපීය සංගමය ප්‍රකාශ කළ බව අමාත්‍ය ප්‍රසන්න රණතුංග මහතා සඳහන් කර තිබෙනවා.

කාර්මික අපනයන, ආයෝජන ප්‍රවර්ධන, සංචාරක හා ගුවන් සේවා ඇමති ප්‍රසන්න රණතුංග මහතා සහ යුරෝපා සංගම් නියෝජිතයන් අතර පැවති සාකච්ඡාවකදි එම කොමිසමේ ශ්‍රී ලංකා මාලදිවයින් නියෝජිත කණ්ඩායමේ නියෝජ්‍ය සභාපති සහ දේශපාලන, වෙළද හා සන්නිවේදන ප්‍රධානී ත්‍රෝර්ස්ටන් බර්ග්ෆෙඩ් (Thorstenbargfarde) මහතා මේබව ප්‍රකාශ කර තිබෙනවා.

යුරෝපා සංගම් නියෝජිතයන් සහ කාර්මික අපනයන, ආයෝජන ප්‍රවර්ධන, සංචාරක හා ගුවන් සේවා ඇමති ප්‍රසන්න රණතුංග මහතා අතර මෙම හමුව එම අමාත්‍යංශයේ දි පැවැත්වුණා. වෙළද වරණයන් පිළිබඳ පොදු ක්‍රමය හෙවත් GSP යුරෝපා සංගමය වෙත අපනයනය කරන සංවර්ධනය වෙමින් පවතින රටවලට හඳුන්වා දුන් බදු සහනයකි.

GSP+ යනු GSPසහනය ලබන සංවර්ධනය වෙමින් පවතින රටවලටම ලැබෙන අතිරේක උපාංගයකි. යුරෝපා සංගම් නියෝජිතයන් සහ ඇමති ප්‍රසන්න රණතුංග මහතා අතර පැවති සාකච්ඡාවේ දි එම මෙහෙයුමේ පෙන්වා දුන්නේ GSP+ බදු සහනය වැඩි වශයෙන් හිමි වන්නේ මෙරට ඇගළුම් ක්ෂේත්‍රයට බවයි.

ඇගළුම් අපනයනයෙන් 60%ක්ම අපනයනය කෙරෙන්නේ යුරෝපා සංගම් රටවලට බව ද ඔහු මෙහි දි පෙන්වා දුන්නේය. ඇමති ප්‍රසන්න රණතුංග මහතා සඳහන් කළේ ඇගළුම් කර්මාන්තය මෙරට සමස්ත අපනයනයෙන් 43%ක් පමණ නියෝජනය කරන බවයි.

අපනයන ආදායමට වසරකට ඇමෙරිකානු ඩොලර් බිලියන 05ක් පමණ එක් කරනු ලබන ප්‍රධානතම නිෂ්පාදන කර්මාන්තය ද ඇගළුම් කර්මාන්තය බව පෙන්වා දුන් ඇමතිවරයා යුරෝපා සංගමයේ රටවල් ඒ සඳහා දක්වන සහයෝගය පිළිබද ව රජයේ ස්තූතිය පළ කරන බව ද සඳහන් කර තිබෙනවා.

යුරෝපා සංගමයේ රටවල ආයෝජකයින් මෙරට ආයෝජනය සදහා කැමැත්තෙන් සිටින බවත් එහිදී යුරෝපා සංගම් උප සභාපතිවරයා ප්‍රකාශ කර ඇති බව සඳහන්. යුරෝපා සංගම් රටවල් වලට ශ්‍රී ලංකන් ගුවන් සේවා නැවත ආරම්භ කරන ලෙස ද ඔහු ඇමතිවරයාගෙන් ඉල්ලා තිබෙනවා.ඇමති ප්‍රසන්න රණතුංග මහතා සඳහන් කර ඇත්තේ දැනටමත් ඒ පිළිබඳව අවධානය යොමුව ඇති බවයි