News & market updates

Colombo's ASPI rebounded, rising over 50 points (0.3%) after a prior Rs.188 billion drop, with bargain buying lifting the market and the banking sector leading turnover. Sampath, DFCC, Seylan, C T Holdings and John Keells were top positive contributors while Ceylinco and Aitken Spence weighed on the index.

Fitch upgraded four Sri Lankan insurers' National IFS ratings after recalibrating the national scale following Sri Lanka's sovereign upgrade; People's Insurance was upgraded to A(lka) and Co-operative Insurance's rating was affirmed at BB(lka). Fitch said the moves reflect reduced investment and liquidity risks tied to the sovereign and banks.

HNB PLC hosted an exclusive forum on Sri Lanka’s motor vehicle industry and outlook for 2025, convening policymakers and industry leaders to discuss regulatory reforms, vehicle imports, electric vehicles and financing; HNB highlighted its leasing and auto-finance capabilities.

Hatton National Bank (HNB.N0000) bought the remaining 50% stake in Acuity Partners from DFCC Bank for Rs.6.5 billion and rebranded it as HNB Investment Bank. The unit will integrate stockbroking, securities and investment banking, push digital services, launch sector-specific funds and target FDIs including Colombo Port City.

Fitch upgraded the national IFS ratings of four Sri Lankan insurers after recalibrating the national rating scale following a sovereign upgrade — People's Insurance (PINS.N0000) was raised to A(lka), HNB Assurance and HNB General were upgraded, while Co-operative Insurance (COOP.N0000) was affirmed at BB(lka).

Sri Lanka's ASPI fell 2.95% (500.39 pts) to 16,456.10 on Feb 5 as profit-taking triggered broad selling. Top losers included HNB, Commercial Bank, NDB, Sampath, Teejay Lanka and Singer, while Ceylinco Holdings and Lion Brewery gained; turnover was Rs 6.3bn with a net foreign outflow of Rs 343m.

DFCC Bank sold its 50% stake in Acuity Partners (transaction valued at Rs. 6.5 billion) and Fitch says the disposal should boost DFCC’s bank-level CET1 by ~100bp but have negligible group-level impact and is unlikely to change its national rating. Fitch also expects a modest reduction in DFCC group earnings (APL averaged ~7% of operating profit) and limited impact on HNB’s capital and profitability.

Sri Lanka's central bank says it excludes excess reserves from the reported monetary base, citing the IMF manual. The clarification and the use of unremunerated excess reserves have caused large swings in reported reserve money and raised concerns about banking liquidity, credit expansion and rupee depreciation.

Two prominent Sri Lankan business figures, Ken Balendra (85) and Harry Jayawardena (82), died yesterday. Both men had led or chaired multiple listed firms, including Melstacorp, Aitken Spence, Distilleries Co., Ceylon Tobacco, Lanka Milk Foods and Hatton National Bank.

Colombo market opened February lower as the ASPI and S&P SL20 fell about 1%. Turnover was Rs.3 billion with foreigners net sellers of Rs.179.3m; key decliners included HNB, LOLC, BUKI, CARS and CFIN, while SPEN, TJL and CCS were notable gainers.

DFCC Bank sold its 50% stake in Acuity Partners for LKR6.5bn; Fitch estimates the disposal will boost DFCC’s bank-level CET1 by about 100bp but have negligible group-level impact and is unlikely to affect its national rating. APL had contributed ~7% of DFCC’s operating profit, so group profitability will be modestly lower.

Sri Lanka stocks fell 0.97% as the ASPI closed down 166.24 points at 16,956 and turnover was Rs3bn, the lowest so far this year. John Keells, Browns Investments and Tea Smallholder Factories announced interim dividends and net foreign outflow was Rs179mn with foreign selling in several large stocks.

Colombo's ASPI rose 7.4% in January, with yesterday's turnover at Rs.5.1bn and foreign net selling of Rs.405.6m. Price gains in counters including Central Finance, Colombo Fort Land & Building, Ambeon Holdings, Teejay Lanka and Ambeon Capital and activity in Access Engineering and John Keells supported the market recovery.

Dilani Alagaratnam joined the Board of Hatton National Bank PLC as an Independent and Non-Executive Director.

HNB Life's Partnership Channel posted GWP of over Rs.6.5 billion in 2024 (31% YoY) and NBP above Rs.1.4 billion (39% YoY) revealed at its Partnership Life 2025 event. The company also noted 135 MDRT qualifiers and thanked Hatton National Bank and broker partners for their support.

Colombo market slipped as the S&P SL20 fell 0.6% amid high turnover of Rs.8.4 billion, led by John Keells, Access Engineering, Browns Investments, Commercial Bank and Amana Bank; ASPI closed flat and foreign investors were net sellers of Rs.924 million.

Colombo bourse closed marginally lower: ASPI down 0.02% at 17,117.18 and S&P SL20 down 0.65% at 5,126.31, turnover Rs8.4bn and net foreign outflow Rs923.9m. Buying interest returned to banks and finance stocks after vehicle import relaxation, and construction names such as Access Engineering saw inflows.

HNB PLC is offering tailored financial solutions for ICT entrepreneurs — including collateral-free facilities, capex loans up to Rs.10 million at 8% p.a. (36 months), export credit lines, fee waivers and special FX terms — and has extended over Rs.350 million to ICT businesses to date.

Colombo bourse sustained upward momentum as the ASPI rose 0.4% and the S&P SL20 gained 0.3% on turnover of Rs.6.35 bn; BIL, RICH, HNB, CFIN and LOLC were top positive contributors while JKH fell. Foreign investors were net sellers with a Rs.300 mn outflow.

John Keells Holdings said public holding fell to 74.93% as of 24 Jan 2025 after issuing 1,079,375,000 new ordinary shares to HWIC Asia Fund; JKH shares closed down 0.87% at Rs22.90. The Colombo bourse closed higher with the ASPI up 0.44% at 17,119, led by gains in Browns Investments, Richard Pieris, HNB and Central Finance.

Colombo market rose with the ASPI up 0.8% on turnover of Rs. 6 billion, led by heavy trading in John Keells, Lanka IOC, HNB, Alumex and Browns and a net foreign outflow of Rs. 492.4 million. JKH fell to Rs. 23.10, HNB rose to Rs. 350.25, LIOC to Rs. 142.25, Alumex to Rs. 15.90 and Browns to Rs. 8.50.

Hatton National Bank (HNB) announced a strategic partnership with Access Lifestyle to enhance customer experience and drive Home and Personal loan growth through special financing, competitive interest rates and tailored mortgage advisory services.

Hatton National Bank said the Board has not approved a share split after preliminary discussions, in a disclosure to the Colombo Stock Exchange. Its voting share peaked at Rs.360.50 on 23 Jan (from Rs.319.75 at end-2024) and the public float is 69% held by 8,450 shareholders.

Fitch upgraded People’s Bank’s National Long-Term Rating to 'AA-(lka)' from 'A (lka)' after a recalibration following Sri Lanka's sovereign upgrade. The upgrade highlights the bank’s strengthened credit profile and could bolster sentiment across Sri Lankan banks.

Sri Lanka's ASPI rose 0.75% to 17,044.67, led by gains in capital goods and power/energy with top contributors including Lanka IOC, Melstacorp and Bukit Darah. Turnover was 5.9 billion rupees, with a net domestic inflow of 492 million and a net foreign outflow of 492 million rupees.

Hatton National Bank (HNB) has entered a strategic partnership with Access Lifestyle to enhance customer experience and drive Home & Personal loan growth, offering special financing, competitive rates and tailored mortgage advisory services. The MOU links Access Lifestyle's premium home products with HNB's lending and support network.

Government plans to lift vehicle import restrictions early next month, with vehicle imports expected to contribute Rs.300–350 billion to revenue in 2025. Authorities will use a phased approach prioritising commercial/public transport, tighten import registrations, monitor dollar outflows and push tech-driven tax surveillance.

Visa forecasts Sri Lanka's digital payments market at $9.98bn in 2024, growing at a 14.49% CAGR to exceed $17bn by 2028. Visa highlighted a 35% surge in debit-card use during the last Avurudu, expansion of tap-to-pay and wearables, and a partnership with Hatton National Bank for a festive campaign.

Fitch upgraded the national long-term ratings of 10 Sri Lankan banks and affirmed five after recalibrating the national rating scale following a sovereign upgrade; upgrades include COMB, HNB, SAMP, SEYB, DFCC, NDB, NTB and PABC, while HDFC and SDB were affirmed. Fitch cited the sovereign IDR improvement as the driver.