News & market updates

The Women’s Chamber of Industry and Commerce launched the WCIC Prathibhabhisheka – Women Entrepreneur Awards 2024, with the awards ceremony set for January 2025 and applications closing on 31 October 2024. Sponsors include AIA Insurance, DFCC (banking partner) and Hayleys.

The Colombo Stock Exchange urged urgent capacity building to commercialise green bonds as companies show strong interest but lack clarity; Commercial Bank (COMB.N0000) and DFCC Bank (DFCC.N0000) have announced green bond issues.

ASPI fell 0.3% to close at 10,801 as turnover was Rs.1.5 billion; indices reversed gains after a short-lived rebound. Melstacorp, Hemas, DFCC, LOLC and John Keells were among the top negative contributors while Hatton National Bank gained and Commercial Bank was flat.

Brown & Company (Browns Pharmaceuticals) signed an MoU with DFCC Bank and Market-Oriented Dairy to support dairy entrepreneurs via an MSME scheme offering special interest rates, flexible payments, discounts on Browns’ drugs and machinery and capacity-building programs.

Hatton National Bank will pay Rs. 7 billion to DFCC Bank to acquire the remaining 50% stake in Acuity Partners Ltd, with the transaction expected to conclude on or before 31 October 2024. DFCC's board has approved the sale subject to statutory and regulatory approvals and a share sale agreement.

DFCC Bank has rolled out LankaSign digital signatures across its network, allowing customers registered with LankaSign to submit formal requests and authorisations digitally. The move supports the bank's paperless drive and sustainability goals, building on claims of saving 200+ trees and cutting operating costs by ~Rs.70m in 2023.

DFCC Bank has begun accepting LankaSign digital signatures across its network, allowing customers registered with LankaSign to submit formal requests and authorisations digitally. The bank says the move supports its paperless drive—saving 200+ trees and cutting operating expenses by ~70 million rupees in 2023—and ties into its carbon-neutral by 2030 goal.

Fitch assigned DFCC Bank PLC’s proposed LKR2.5 billion three-year senior unsecured listed green bond an expected National Long-Term Rating of 'A-(EXP)(lka)'. The proceeds will finance eligible green projects such as photovoltaic power generation and the final rating is subject to receipt of final documentation.

DFCC Bank (DFCC.N0000) won the Gold Award for 'Best Banking Website' and the Special Award for 'Best Mobile User Experience' at the BestWeb.LK Awards 2024, and received the overall Silver across 22 categories, highlighting its digital and mobile banking enhancements.

Port City Colombo has onboarded 100+ companies as Authorised Persons (APs) as of 24 Aug 2024, with 22 designated Businesses of Strategic Importance. Several local banks including Sampath, Commercial Bank, HNB, NDB, Nations Trust and DFCC have applied to establish offshore banking branches in the SEZ under new offshore banking regulations.

Port City Colombo onboarded 100+ companies as Authorised Persons by Aug 24, 2024; banks including COMB.N0000, SAMP.N0000, HNB.N0000, NDB.N0000, NTB.N0000 and DFCC.N0000 have applied to open offshore banking branches under the July 26, 2024 offshore banking regulations.

DFCC Bank has partnered with Mintpay to offer debit cardholders Buy-Now-Pay-Later and 'Pay Now' options, allowing purchases to be split into three interest-free instalments for online and in-store transactions.

Nine Sri Lanka banks, including Commercial Bank, HNB, NDB, NTB and DFCC, have applied to open branches in the Colombo Port City special economic zone to serve offshore customers; Bank of China has also expressed interest. The banks will be regulated by Sri Lanka's central bank and the Port City is a dollarized SEZ exempt from central bank liquidity tools.

DFCC Bank launched Sri Lanka’s first co-branded fuel Mastercard with Lanka IOC, offering 5% cashback at LIOC stations (max Rs.2,000 per statement cycle) until 30 Sep 2024, then 3% thereafter (max Rs.1,500), plus 1% on non-fuel spend and 0% EPPs up to six months on vehicle-related payments.

DFCC Bank says it optimised treasury and investment strategy amid Sri Lanka’s recovery, investing heavily in government securities (≈30% returns) and US Treasuries while keeping NSFR/LCR well above regulatory minima. Treasuries are now a main contributor to profitability as loan growth remains weak.

The Colombo bourse's five-day winning streak ended with a 0.2% drop on Friday, but the week closed with the S&P SL20 up 2.4% and the ASPI up 1.8% and average daily turnover of Rs. 740m. Top negative contributors were C T Holdings, John Keells, DFCC, Central Finance and Lanka IOC, while Access Engineering, Renuka and Melstacorp gained.

Colombo Bourse rose for a fifth straight session as the ASPI gained 1% to close at 11,531 (S&P SL20 +1.3%), with banking and food & beverage stocks led by HNB, SAMP, DFCC, MELS and LMF driving the rally amid Rs.776m turnover.

Colombo Stock Exchange closed higher—ASPI +1.03% and S&P SL20 +1.31%—with banking stocks drawing interest after positive interim results; Hatton National Bank posted a LKR 15.4 billion profit after tax for the six months to June 2024.

Colombo Stock Exchange closed higher: All Share Index up 0.58% at 11,413 and S&P SL20 up 1.05% at 3,278, with turnover of 1.3 billion. Banks drew interest after positive interim results — Hatton National Bank posted a six-month PAT of 15.4 billion; John Keells saw 144 million in foreign buying while Hayleys faced foreign selling.

DFCC Bank reported Group PAT up 46% to Rs. 5.7b for H1 2024, Group Net Operating Income up 36% to Rs. 17b, impairment charges down 75% to Rs. 1.9b and Group CAR at 16.89%. NII fell 11% to Rs. 13.723b amid lower interest rates, while FVOCI gains and impairment reversals offset ISB sale losses.

Fitch assigned an expected National Long-Term Rating of A-(lka) to DFCC Bank PLC's proposed LKR2.5 billion three-year senior unsecured listed green bond. Proceeds are earmarked for eligible green projects such as photovoltaic power generation.

DFCC Bank PLC reported Group PAT of LKR 5,739 Mn for the period ended 30 June 2024, up 46% year-on-year. The result was driven by a 36% rise in net operating income, a 75% reduction in impairment to LKR 1.9 Bn and a LKR 2.1 Bn gain on FVOCI government securities, despite an 11% decline in NII after rate cuts.

DFCC Bank sold part of its Sri Lanka sovereign bond portfolio, booking a loss of Rs 2,171m while reversing Rs 2,453m of provisions; group net profit was flat at Rs 1,847m for the March quarter. Six-month earnings rose 47% to Rs 5,533m and Tier-1 capital improved to 13.1%.

Colombo Stock Exchange closed down: ASPI fell 0.36% to 11,253 and S&P SL20 fell 0.43% to 3,210, with turnover Rs629mn. Top contributors included Sampath (up after stellar interim results and a Rs10bn debenture announcement), DFCC and SMB Finance, while several banks including HNB, NDB and Commercial Bank weighed on the index; net foreign inflow was Rs19mn.

DFCC Bank launched an online feature allowing customers to download Advance Income Tax Certificates 24/7 via its digital banking platform, promoting paperless access and aligning with its customer-centric digital strategy.

The ASPI rose 42 points (0.4%) to 11,294 as the Colombo market closed marginally higher on turnover of Rs. 582 million. Gains in John Keells, Richard Pieris, HNB, BIL and others supported the rise, turnover was led by JKH and capital goods, banking and F&B sectors, while foreigners net sold Rs. 20.6m.

Colombo Stock Exchange closed higher: ASPI up 0.37% to 11,293 and S&P SL20 up 0.39% to 3,226, with turnover Rs582mn and John Keells (JKH) accounting for Rs160mn. Several banks closed mostly in green; Hayleys Fabric and CIC reported interim profit growth and lower finance costs due to lower interest rates.