One Galle Face celebrates completion of One Galle Face Tower structure

The prestigious internationally developed and managed mixed-use development project by the Shangri-La Group, One Galle Face, continued its scheduled progress with the topping out ceremony of One Galle Face Tower held yesterday.

The exclusive One Galle Face Tower, which is nearing completion, is scheduled to begin operations during the second quarter of 2019.

As the One Galle Face Tower nears completion, the prime and upscale workspace is available for rent and prospective tenants are now able to view the prototype of the office suite. With the signing of maiden tenancy agreements with ZTE Lanka Ltd. and Softlogic Life Insurance Plc, the One Galle Face Tower is expected to be Colombo’s most sought after and premier business hub.

“It brings us infinite pleasure to reach this point, where we are able to unveil the prototype of office suites at the One Galle Face Tower. We have been working tirelessly to ensure that all needs will be met, and that the One Galle Face Tower will provide the necessary facilities to uplift and redefine business, corporate and lifestyle spaces in Colombo. In keeping with international protocols, we are dedicated to ensuring luxury, convenience and a seamless work experience to our tenants,” said Shangri-La Hotels Lanka Ltd. General Manager Callie Yah.

Facebook partners ICTA to empower SMEs in Sri Lanka with digital toolkit

Continuing with its recently-announced partnership with the Information and Communication Technology Agency (ICTA) of Sri Lanka to train local entrepreneurs in digital marketing skills, Facebook is bringing its globally renowned ‘Boost Your Business’ workshop to the Southern region of Sri Lanka. ‘Boost Your Business’ is part of ICTA’s ‘Digitising of the Southern Province of Sri Lanka’ program, with Matara hosting the inaugural workshop for the region.

The event took place in Matara on 19 June and was organised with the support of regional level stakeholders, led by World University Service of Canada (WUSC). The ‘Boost Your Business’ workshop was attended by more than 200 local entrepreneurs, which included the participation of 60+ female entrepreneurs and 15 differently-abled business owners from Galle, Matara and Hambantota districts, on the effective use of digital tools to grow and monetise their businesses online. The sessions further helped enterprises understand the advantages of digital media, and guided them on how digital marketing tools can help leverage the mobile economy to gain market access and grow their businesses. The workshop, conducted in Sinhalese, also saw the presence of nearly 40 students from local vocational training schools.

Facebook staff to learn Sinhala insults after Sri Lanka riots

AFP: Three months after Sri Lanka was rocked by deadly anti-Muslim riots fuelled by online vitriol, Facebook is training its staff to identify inflammatory content in the country’s local languages.

The social network has been seeking penance in Sri Lanka after authorities blocked Facebook in March as incendiary posts by Buddhist hardliners fanned religious violence that left three people dead and reduced hundreds of mosques, homes and businesses to ashes.

Until the week-long ban, appeals to Facebook to act against the contagion of hate speech had been met with deafening silence, at a time when the California-based tech giant was reeling from unprecedented global scrutiny over fake news and user privacy.

“We did make mistakes and we were slow,” Facebook spokeswoman Amrit Ahuja told AFP in Colombo.

The dearth of staff fluent in Sinhala – the language spoken by Sri Lanka’s largest ethnic group – compounded the issue, with government officials and activists saying the oversight allowed extremist content to flourish undetected on the platform.

Ahuja said Facebook was committed to hiring more Sinhala speakers but declined to say how many were currently employed in Sri Lanka.

“This is the problem we are trying to address with Facebook. They need more Sinhala resources,” said the island’s telecommunications minister Harin Fernando.

Since the violence broke out in March, two high-level delegations from the company have visited Sri Lanka, where ethnic divisions linger after decades of war, to assure the Government of its intent.

Ahuja said Facebook was working with civil society organisations to familiarise its staff with Sinhala slurs and racist epithets.

Complex local nuances have added to the challenge. The word for “brother” in Tamil – also an official language in the country – can be a derogatory term in Sinhala when a slight inflection is used.

Desperate measures

Fernando said the decision to impose an island-wide blackout on Facebook – used by one in three Sri Lankans – was taken as a last resort to prevent an escalation of violence.

Buddhist monks freely shared images of masked men attacking mosques and urged others to do the same in the weeks before the riots erupted in Kandy.

Sinhala extremists used the social network to recruit rioters and organise their travel to the troubled area, from where violence later spread.

A meme in Sinhala, which remained online for weeks, urged death to all Muslims, including children. A man who reported it to Facebook was told it did not violate “specific community standards”.

In addition to government warnings, Fernando told AFP that Facebook users lodged thousands of complaints over extremist content, but were met with silence.

“It was not something that I liked doing. But if we didn’t block Facebook, the violence would have spread out of control,” he said.

Fitch revises Sampath’s Outlook to Stable; affirms ‘A+’

Fitch Ratings said yesterday it has affirmed the National Long-Term Rating of Sampath Bank PLC at ‘A+ (lka)’ and revised the Outlook to Stable from Negative. Fitch has also affirmed Sampath’s subordinated debentures at ‘A (lka)’.




The revision in the Outlook reflects Fitch’s expectation that the bank would be able to sustain higher capital buffers, as it continues to focus on capital management and earnings retention while expanding its market share. Sampath’s rating also reflects its higher risk appetite, growing franchise and satisfactory asset quality.




Fitch expects the bank to maintain adequate buffers above regulatory requirements, even though its Tier 1 ratio could temporarily fall to around 11% by end-2018 due to continued rapid growth. This compares to a minimum required Tier 1 ratio of 10%, which includes an additional end-point 1.5% buffer for domestic systemically important banks (D-SIB) from 1 January 2019. Sampath is now required to maintain minimum Tier 1 ratio of 8.875%, which includes a 1% D-SIB buffer. Fitch estimates Sampath’s Tier 1 ratio was 12% in April 2018, after it raised Rs. 12.5 billion in April 2018 and Rs. 7.6 billion in December 2017 via rights issuances, and retained its 2017 profit of Rs. 12.7 billion through a scrip dividend.




The bank’s total capital ratio improved to 14.3% by end-March 2018 (2016: 12.9%), after issuing Rs. 13.5 billion of Basel III-compliant subordinated debt over the last 12 months. The bank is required to maintain a minimum total capital ratio of 14% from the start of 2019, compared with the current requirement of 12.875%.




Loan growth is projected to remain strong in 2018, after a 7.5% expansion in 1Q18 since December 2017 that outpaced the sector’s 4.6% growth. Sampath’s high risk appetite is evident in its loan book’s CAGR of 22% over 2016-2017, exceeding the industry’s 16.8% expansion, and the loan book’s concentration in the consumer, retail and SME/mid-sized corporate segments. Fitch believes management may slow loan growth to maintain capital buffers in the absence of further capital infusion.




In line with rising non-performing loans (NPLs) in Sri Lanka, Sampath’s NPL ratio increased to 1.95% by end-1Q18 from 1.64% at end-2017, but the ratio remains low compared with those of its peers. The bank’s rapid growth and increased exposure to more-vulnerable segments raises the risk of asset-quality deterioration in the event of a significant economic downturn, although this is not the base case. Fitch expects the overall operating environment to remain challenging.




Total allowances rose to 10.5% of pre-provision profit in 2017 from 8.7% in 2016. Fitch believes impairment charges could rise further, due to potential asset-quality pressures, as well as the implementation of SLFRS 9. Sampath’s ROAA improved to 1.7% in 2017 from 1.6% in 2016 and 1.4% in 2015, aided by higher business volumes.




Subordinated debt




Fitch rates the Tier 2 instrument one notch below the bank’s National Long-Term Rating to reflect the notes’ subordinated status and higher loss-severity risks, relative to senior unsecured instruments. The National Long-Term Rating is used as the anchor rating, because the rating reflects the bank’s standalone credit profile, which best indicates the risk of becoming non-viable.




Rating sensitivities




Failure to sustain the planned capital buffers as a result of insufficient capital generation, rapid loan growth or a sharp decline in asset quality could lead to a rating downgrade.




Sampath’s ratings might be upgraded if its capitalisation were to significantly strengthen alongside a moderation in risk appetite, while managing asset-quality pressures.




Subordinated debt




The rating of the notes would move in tandem with Sampath’s National Long-Term Rating.

Source FT.lk

Aitken Spence ink $1.3 m deal with Italy tour firm at Expo 2015

Sri Lanka and its leading leisure firm Aitken Spence kicked off the start of Expo 2015 in Milan by entering into a charter worth $1.3 million with leading Italian tour operator Alpitours.
The agreement, which was presided over by Minister of Tourism and Sports Navin Dissanayake, is expected to draw 8,000 tourists to Sri Lanka.





“We thank the Minister for helping us finalise the deal, which in fact records the covering of the total costs we incurred on setting up the Sri Lankan pavilion at Expo 2015. In fact now it is profit positive on a ruthless P&L basis,” Expo Sri Lanka Commissioner General and Sri Lanka Tourism Promotion Bureau Chairman Rohantha Athukorala said.
“The partnership between Alpitours and Aitken Spence will be tied to a top end resort in the south of Sri Lanka which was architectured by an Italian designer whilst the overall cuisine will be done by a specially flown chef from Italy which will include customised animators to cater to the all-inclusive guests that will be branded on a club med business model,” he added.


Aitken Spence Plc Vice President Niranjan Rodrigo also thanked Dissanayake for his intervention. “Given that we have to agree to the logistics of travel, we have to agree on the logistics of travel with SriLankan Airlines, which flies out of Rome, while most of our target demographic will be sourced out of Northern Italy, essentially the industrial side of Italy,” Rodrigo said.
SriLankan Airlines Italian Country Head Lalith Peiris also pledged his full support to Aitken Spence and Alpitours, a partnership which he stated would help to create a new image for Sri Lanka and put the island on the map as a fashionable destination which in turn would lead to many other Club Med brands entering Sri Lanka.

The one who follows the crowd will usually get no further than the crowd

The one who follows the crowd will usually get no further than the crowd. The one who walks alone, is likely to find himself in places no one has ever been. Albert Einstein.

Aitken Spence Sri Lanka 9-month results steady

Leading conglomerate Aitken Spence PLC recorded a challenging third quarter but showed a steady performance for the nine months, revealed its interim results to the Colombo Stock Exchange (CSE) released on Wednesday.
The blue-chip’s financial results for the nine months ended 31 December 2014 saw profit-before-tax increasing by 4.4% to Rs. 3.8 b while profit attributable to shareholders decreased by 4.8% to Rs. 2.2 b.
Aitken…
The diversified group’s third quarter results showed profit-before-tax decreasing by 5.9% to Rs. 1.6 b and profit attributable to shareholders falling by 19.5% to Rs. 870 m, “Although we had a challenging third quarter, we were able to record a steady performance for the year so far,” said Aitken Spence PLC Deputy Chairman and Managing Director J.M.S. Brito.
“With the new administration in Sri Lanka, we see a significant boost to business confidence. We are confident that the 100-day plan which has received bi-partisan support will strengthen good governance, which augers well for much needed healthy foreign investment to the country,” Brito added.
Profit before tax from the tourism sector was up by 3.5% to Rs. 2.5 b while revenue rose by 7.2% to Rs. 12.4 b, for the nine months. Aitken Spence operates a wide portfolio of hotels and resorts in Sri Lanka, Maldives, India and Oman. Its travel arm, the largest in Sri Lanka, is a joint venture with TUI Travel. It also acts as GSA for major airlines in Sri Lanka and the Maldives.
The Group’s Hotels arm is currently overseeing two large hotel projects in Negombo and Ahungalla.
The Maritime and Logistics sector recorded Rs. 525 m as profits-before-tax, a decrease of 2.8% over the previous year, while revenue was up by8.5% to Rs. 5.2 b. Aitken Spence is Sri Lanka’s largest integrated logistics services provider and has port management services in Africa and the South Pacific. Port operations in Fiji contributed significantly to the sector profits with the company achieving high efficiency levels in the ports of Suva and Lautoka.
Strategic investments sector showed a rise of 32.7% in profits-before-tax and 10.1% in revenue, to Rs. 695 m and Rs. 10.6 b respectively, for the period under review. Power, printing and garments businesses performed better than last year during the nine months, with investments in new machinery and expansion of manufacturing facilities.
The Group’s services sector saw profits-before-tax falling by 42.4% to Rs. 104 m and revenue rising by 14.4% to Rs. 607 m. The services sector includes financial services, insurance, elevator agency and technology businesses. The fairly nascent technology business accounted for a significant share of the losses in the services sector.

Sri Lanka Govt. gives go-ahead to Port City

• PM Ranil Wickremesinghe finds lost EIA and submits to Cabinet
• Reprieve for much maligned largest-ever foreign investment project
• Second EIA needed for Phase II construction including golf course and F1 track
• India raised no official objection, Sirisena likely to visit China in March+

An excavator (right) being used at the site of the planned Port City project in Fort yesterday. The project is likely to be made active yet again – Pic by Shehan Gunasekera

By Uditha Jayasinghe
After weeks of uncertainty the new Government yesterday gave the green light for the mega $ 1.4 billion China funded port city project.
Ending speculation, the new Cabinet, barely a month in office, allowed the project to continue after perusing an environmental assessment study conducted by a local university.
The port city was a major item in the joint Opposition campaign at Presidential poll whilst severe warnings were issued after the victory of Maithripala Sirisena as well. However, judging by yesterday’s Cabinet decision, almost akin to a U-turn, it appears that the much maligned port city project is back in the water.
“We are satisfied with the Environmental Impact Assessment (EIA) done by the Moratuwa University,” Cabinet spokesman and Health Minister Dr. Rajitha Senaratne told reporters, adding that a second EIA would be needed to assess construction once reclamation of land from the sea was completed.
“There is time for that,” he said. “Funding is by the Chinese company so we see no reason why it cannot go ahead.”
Multinational China Communications Construction Company (CCCC) subsidiary the China Harbour Engineering Company is creating the new island off Colombo’s harbour, which was started during former President Mahinda Rajapaksa’s decade in power.
However, presidential elections last month saw the removal of Rajapaksa and the appointment of his former Cabinet member President Maithripala Sirisena.
Sirisena subsequently appointed a 27-member Cabinet headed by Prime Minister Ranil Wickremesinghe who had earlier warned that the port city project would be scrapped if it failed to meet environmental standards.
This prompted the project promoter to issue a press statement setting the record straight. Despite that criticism allegations persisted. A follow up full page paid advertisement was also published.

Known to be the single largest investment project in Sri Lanka, the port city will also have Sri Lanka’s first 100-storey skyscraper under Phase II of its work. This phase would include the construction of hotels, shopping malls, a golf course as well as a F1 track.
The site is on 233 hectares of reclaimed land along the iconic coastline of Colombo. Under the proposed deal, 108 hectares would be given to the Chinese firm, including 20 hectares on an outright basis and the rest on a 99-year lease.
However, ownership of land by foreigners is illegal in Sri Lanka and Dr. Senaratne acknowledged that the Government would have to “look into” proprietorship details.
“At the moment foreign companies can only hold land on a lease basis up to 99 years. As far as we can ascertain the State does not own this land as its being reclaimed by the Chinese company. We will rectify the shortcomings,” he said.
Dr. Senaratne also insisted that no concerns had been officially raised by the Indian Government and Sirisena would likely visit China after overseeing a visit by Indian Prime Minister Narendra Modi in March.
Over the past month CHEC ramped up advertising about the project insisting it would put a spotlight on Sri Lanka by positioning the island as the ultimate “Gateway to South Asia” and strengthen tourist arrivals over the next 30 years.

Record-breaker Kumar Sangakkara sets up Sri Lanka win

• Sangakkara gets record for most dismissals in ODIs
• He also scored an unbeaten 113 for his 21st ton

The New Zealand players pose with the series trophy, New Zealand v Sri Lanka, 7th ODI, Wellington

Record setter in wicket–keeping Kumara Sangakkara celebrates

Reuters: Kumar Sangakkara scored an unbeaten 113 and then returned to break the world record for the most dismissals by a wicketkeeper in one-day internationals as Sri Lanka beat New Zealand by 34 runs in the seventh and final match in Wellington on Thursday.
Sangakkara’s 21st one-day hundred anchored Sri Lanka to 287 for six after the visitors opted to bat first on winning the toss.
New Zealand, who won the series 4-2, never recovered from losing early wickets in their chase and were all out for 253 in the 46th over.
The hosts were reduced to 42-3 in the 12th over and barring a 74-run stand between Luke Ronchi (47) and Daniel Vettori (35) for the seventh wicket, Sri Lanka always looked in control.

Sangakkara on his way to his 21st ODI century

Kane Williamson top-scored for New Zealand with 54 while Kyle Mills hit a 17-ball 30 towards the end.
The 37-year-old Sangakkara, who is expected to retire from international cricket after the World Cup, passed Adam Gilchrist as the most successful wicketkeeper when he caught Corey Anderson off the bowling of Shaminda Eranga.
He later added another catch to the tally when he pouched Tim Southee off Thisara Perera, taking his career total to 474 dismissals with 378 catches and 96 stumpings in the 50-over format when he played as a wicketkeeper.
Australia’s Gilchrist achieved 472 dismissals in 287 one-day matches.
“The entire team has been working very hard. The hard work has paid off with some good performances out in the middle,” man-of-the-match Sangakkara said at the presentation. “I just try to do the basics as well as I can.”
Earlier, Tillakaratne Dilshan (81) and Lahiru Thirimanne (30) gave Sri Lanka a good start, adding 71 for the opening wicket before the latter fell leg before to Anderson.
Sangakkara walked out at number three and then added 104 for the second wicket before Dilshan was out caught by wicketkeeper Ronchi off paceman Southee.
Sri Lanka lost a few quick wickets but Sangakkara held the innings together and brought up his century with a crisp pull shot off Mitchell McClenaghan. The stylish left-hander hit 14 boundaries in his 105-ball knock.
Anderson finished with three wickets for 59 runs for New Zealand.
The World Cup, which is co-hosted by New Zealand and Australia, runs from Feb. 14-March 29.

Cinnamon Lakeside serves up new menu at Long Feng

Known for consistent excellence over the years, Long Feng is one of Cinnamon Lakeside’s signature restaurants and has served up authentic Chinese dishes to discerning diners over the years.
With excellent service, good food and decent prices, Long Feng has held its own despite stiff competition in the city.
However, determined to rise to new heights in terms of its culinary offerings, the restaurant has now revamped its menu, introducing many new dishes while retaining the best of the previous offerings.
By Monday 26 January, around 50% of the dishes on the menu will be all-new offerings which are sure to tempt the taste buds and sate the appetite.

The restaurant itself is also undergoing a facelift, with changes to the acoustics in terms of carpets to muffle sound and make it a quieter dining environment, a new look to the menu and certain upgrades in décor.
With Chinese Master Chef Yang Jiayu at the helm, Long Feng’s new dishes been carefully selected after much thought and in consultation with General Manager Dermont Gale, who is turning things around at Cinnamon Lakeside at an impressive pace.
A new dim sum menu is also on the cards and will be launched in time for Chinese New Year celebrations.
Other culinary-related changes at the hotel include a new menu for 7° North in the near future and two new Thai chefs on board at the Lakeside’s signature restaurant Royal Thai shortly, with a new menu on the cards by March.
Meanwhile, the Cinnamon Lakeside is also planning some unique Valentine’s Day celebrations and other new experiences across the property, which are sure to impress and delight guests.

Sri Lanka Govt. bans casinos in mega integrated mixed development projects

Reuters: The new Government has blocked three casinos approved by the previous administration, among them a $400-million project by Australian gaming mogul James Packer’s Crown Resorts Ltd.
The widely-expected move redeems an election pledge by new President Maithripala Sirisena to cancel the Crown Resorts licence. Sirisena won an 8 January election, ending a decade of authoritarian rule by President Mahinda Rajapaksa.
The casinos faced opposition from Buddhist leaders and some of Rajapaksa’s own coalition partners, who feared that gaming could lead to a boom in prostitution and damage values and culture in the mainly Buddhist island nation.
Prime Minister Ranil Wickremesinghe said gazette notices that gave tax concessions to the projects, including Packer’s integrated mixed-development project, had been amended.
“We have decided to ban such approval for casinos,” Wickremesinghe told Parliament. “But they can conduct all other activities,” he added, referring to hotel and residential apartments included in the projects.
Besides Lake Leisure, Packer’s Sri Lankan joint venture, the blocked projects are the $300-million Queensbury resort planned by Sri Lanka’s Vallibel One Plc, and the $850-million Water Front Properties of John Keells Holdings Plc, the country’s biggest conglomerate.
Packer, one of Australia’s richest men, got Sri Lankan cabinet approval for the project in 2013, but its terms were altered in the face of opposition from some Buddhist leaders and political parties, and construction has yet to start.
All casino licences will be reviewed and gaming will be restricted to a specific area of Sri Lanka in future, Cabinet Spokesman Rajitha Senaratne said.
“But we have not decided an area yet and the current location is just temporary,” he told reporters in Colombo.
Rajapaksa’s Government had said casinos would be restricted to D.R. Wijewardena Mawatha, an area in the commercial heart of the capital where Crown has planned its hotel.

Casino ban-hit JKH drags stock market down

Reuters: Shares fell on Thursday from a near two-week closing high the previous session, led by John Keells Holdings Plc after the new government cancelled approval for it to help build a casino, brokers said.
Prime Minister Ranil Wickramasinghe on Thursday said the new government had blocked three casinos approved by the previous administration, including a $400-million project by Australian gaming mogul James Packer’s Crown Resorts Ltd and John Keells Holdings Water Front properties.
Shares of top conglomerate Keells fell 3.72%.
The new Government aims to cut its 2015 fiscal deficit to 4.4% of gross domestic product, better than a target of 4.6% set by the previous administration.
The main stock index ended 0.25%, or 18.78 points weaker at 7,376.51, edging down from its highest close since 16 January hit on Wednesday.
“The market fell on Keells with the government banning casinos,” Reshan Wediwardana research analyst at First Capital Equities Ltd.
“The market will definitely come down in coming days mainly on panic selling of Keells, Dialog, Sri Lanka Telecom and Nestle as the budget imposed taxes on these firms.”
Finance Minister Ravi Karunanayake in the new Government’s supplementary budget imposed a super gain tax of 25% on companies or individuals who earned more than Rs. 2 billion profits in 2013/2014, while announcing a raft of tax reductions and state sector pay rises to boost consumption.
Wediwardana said an increase in consumers’ disposable income might help the market in the long run.
Turnover was Rs. 1.27 billion ($ 9.61 million), less than last year’s daily average of Rs. 1.42 billion, exchange data showed.
Foreign investors were net buyers of Rs. 122.5 million worth of shares on Thursday, but they have been net sellers of Rs. 331.1 million worth of shares this month. They bought a net Rs. 22.07 billion worth of stocks last year.

Miss Colombia crowned Miss Universe for 2015

REUTERS: A 22-year-old business student and model from Barranquilla, Colombia, was named Miss Universe on Sunday at the annual beauty pageant, beating out 87 other contestants from around the globe.
Paulina Vega, the granddaughter of tenor Gaston Vega, studies business administration at the Universidad Javeriana in Bogota and has been a model since she was eight years old, according to the pageant’s website.
Vega triumphed over first runner-up, Miss USA Nia Sanchez, a 4th degree black belt in Tae Kwon Do from Las Vegas, Nevada, who won the US title in June.
Contestants from the Netherlands, Jamaica and Ukraine rounded out the five finalists at the 63rd annual pageant, which was broadcast on NBC from Florida International University in Miami.
Vega is the fourth woman from South America to win the pageant in the past seven years, with contestants from Venezuela taking the title last year as well as in 2007 and 2008.

Indian Prime Minister Narendra Modi visit Sri Lanka on 14-15 March

Indian Prime Minister Narendra Modi will arrive in Sri Lanka on 14 March for a two-day state visit, diplomatic sources told Daily FT.
Prime Minister Modi will be the first Indian leader to undertake a state visit to Sri Lanka since Rajiv Gandhi in 1987. Indian Premiers have since visited Sri Lanka only for Multi-lateral meetings, such as SAARC.
The Indian Prime Minister will be in the island for high level meetings on 14-15 March, Daily FT learns.
The Indian Premier’s visit will take place exactly one month after President Maithripala Sirisena travels to New Delhi on 16-19 February, for his first foreign visit since assuming office.
The new Sri Lankan administration has pledged to “reset” relations with New Delhi that had soured somewhat under President Mahinda Rajapaksa who repeatedly attempted to use China’s growing influence in the island as leverage with India. President Sirisena and Prime Minister Wickremesinghe have indicated they seek to restore the equilibrium.

By Dharisha Bastians

Your Attention Please

Your Attention Please.
No one is coming to save you,
This life of yours is 100% your responsibility.