Corporate News
View all(29)📈 Fitch Affirms Ceat Kelani at 'AA+(lka)'; Outlook Stable
Fitch Ratings has affirmed Ceat Kelani Holdings Pvt Limited’s (CKH) National Long-Term Rating at 'AA+(lka)' with a Stable Outlook, driven by its market leadership in local tyre manufacturing and a resilient financial profile with low leverage. • Financial Health & Outlook • Liquidity: Robust with LKR 3.3 Bn in cash against LKR 929 Mn short-term debt maturing in FY27. • Leverage: EBITDA net leverage expected to remain comfortably below 1.0x, peaking at 0.6x in FY28. • Projections: Revenue projected to dip 0.3% in FY27 before recovering at a 4.8% CAGR by FY30. • Sector & Margin Risks • Margin Compression: Gross profit margin expected to fall below 20% in FY27 (from 24% in FY26) due to higher raw material and energy costs linked to the Iran war. • EBITDA Margin: Forecast to decline to 9.5% in FY27. • External Pressures: High exposure to price-sensitive end-markets and rising competition from imported tyres limit cost pass-through capability. • Investments & Capital Allocation • Growth capex set at LKR 2.5 Bn (FY27) and LKR 1.5 Bn (FY28) for production facility upgrades to boost product quality, particularly radial tyres. • Dividend payouts planned at LKR 1.5 Bn (FY27) and LKR 1.0 Bn (FY28).
🚀 Binance Invests US$ 100 Mn in Circle to Expand USDC Partnership
• Deal Overview • Binance secures a US$ 100 Mn strategic equity stake in Circle Internet Group (NYSE: CRCL). • Share purchase executed via private placement at a 5% discount to pre-closing market price. • Establishes a 5-year strategic agreement to scale USDC adoption globally. • Strategic Focus & Emerging Markets • Prioritizes driving adoption in global emerging markets to provide accessible digital dollar solutions. • Binance will promote USDC across its platform, while Circle powers underlying infrastructure services. • Aims to bolster global financial inclusion, savings, and investment through compliant digital assets.
📈 Blink International Acquires Wristlab to Expand Sri Lankan Multi-Brand Watch Retail
• Transaction & Growth: Blink International has acquired Wristlab to create a unified, scalable platform for wristwatches and consumer retail in Sri Lanka. Transaction financial details were not disclosed in the official announcement. • Retail Strategy: Wristlab, established in 2019 under Orbit Worldwide, will serve as Blink’s dedicated consumer-facing multi-brand destination, giving shoppers single-roof access to global watch brands. • Brand Principal & Distribution: Founded in 2014 under Avarna Ventures, Blink manages over 155 authorized doors nationwide. Post-acquisition, Blink will focus on distribution, brand management, and official after-sales support for brand partners like CASIO, G-SHOCK, and EDIFICE.
🏛️ Commercial High Court Orders Recovery of Rs. 29 Mn at Spark Air Engineering
The Commercial High Court of Colombo ruled that the affairs of Spark Air Engineering Ltd. were conducted in a manner prejudicial to the company's interests following a forensic audit into a US$ 254,500 deposit. Key highlights of the court ruling: • Misappropriated Deposit Funds: Respondent Samin Attanayake was found responsible for misappropriating Rs. 9.4 Mn from a non-refundable deposit paid by MACKA Invest Company Ltd. He was ordered to compensate the company within three months. • Unexplained Payments: Court noted Rs. 24.7 Mn was paid to Attanayake against a Rs. 1 Mn advance. Due to a lack of evidence justifying the excess Rs. 14.7 Mn, an adverse inference was drawn under the Evidence Ordinance. • Share Recovery: 19,553 shares valued at Rs. 19.553 Mn issued to Attanayake’s son, Thisen Semal Attanayake, showed no record of payment. Directors were ordered to list this as a liability and recover the funds within six months. • Governance Failure: Court cited other directors for failing to safeguard funds and delaying audit requests. Legal costs were awarded to the petitioner, Director Rameez Mahamoor, payable jointly by the 2nd to 6th respondents.
📈 HNB Life Posts 43% H1 Growth Post-Rebranding
• Key Financials: Gross Written Premium (GWP) reached Rs. 12.34 Bn in H1 2026, up 43% YoY from Rs. 8.63 Bn in H1 2025. Net Earned Premium rose 44% YoY to Rs. 11.71 Bn, while total net income surged 34% YoY to Rs. 15.96 Bn. • Earnings & Claims: Profit after tax reached Rs. 434 Mn (excluding year-end actuarial surplus transfers). Net insurance benefits and claims paid out increased to Rs. 3.99 Bn compared to Rs. 1.90 Bn in the previous year. • Balance Sheet: Total assets grew to Rs. 72.71 Bn (from Rs. 68.44 Bn at end-2025). The Life Insurance Fund expanded to Rs. 55.69 Bn, backed by Rs. 65.84 Bn in financial investments and total equity of Rs. 11.15 Bn. • Strategic Context: Performance was boosted by the company's April 2026 corporate rebranding transition from HNB Assurance PLC to HNB Life PLC, strengthening market engagement across its 74-branch network.
Kerner Haus Global Sets Rs. 420 Mn Rights Issue for Real Estate Expansion 📈
• Overview & Ownership: Kerner Haus Global Solutions PLC (KHGS) is expanding into commercial real estate, backed by parent company Ekta Global Pte. Ltd. (63.62% stake). • Rights Issue Terms: • Raising Rs. 420.119 Mn via 10,502,975 new ordinary voting shares. • Offered at Rs. 40.00 per share on a 1-for-4 basis. • Issue price reflects a discount to the pre-approval VWAP of Rs. 46.08. Shares closed at Rs. 30.30 in late August 2026. • Use of Capital: • Direct purchases, fit-outs, and refurbishments of commercial properties. • Long-term leaseholds for fully managed workspaces across Colombo, Kandy, Jaffna, and Galle. • Balance sheet stabilization and liquidity protection. • Major Shareholder Support: Ekta Global will fully subscribe to its 63.62% entitlement (~Rs. 267 Mn) and absorb up to 1 Mn additional unsubscribed shares (~Rs. 40 Mn). • Key Approvals: In-principle listing approval secured from the Colombo Stock Exchange (CSE) on 2 September 2026. Shareholder vote scheduled for the EGM on 2 October 2026.
📈 Printcare to Raise Rs700 Mn via Rights Issue
Sri Lanka’s printing & packaging provider Printcare plans to raise Rs 700 Mn to support business operations and drive growth. • Capital Raising: Offering 23,333,810 ordinary voting shares through a rights issue. • Ratio & Pricing: 19 new ordinary voting shares for every 70 existing shares held, priced at Rs 30.00 per share. • Financial Details: Total consideration amounts to Rs 700,014,300, relative to the company's existing stated capital of Rs 271,893,021. • Capital Allocation: Raised funds will be directed toward strategic investment and working capital needs. • Market Reaction: Shares traded down 5% to Rs 38.00 following the announcement.
📈 SDB bank Marks 29 Years Driving Sustainable Growth & Community Empowerment
• Milestone & Theme: SDB bank celebrated its 29th Anniversary under the theme _“29 Years of Empowering Thousands of Hands for One Sustainable Future,”_ focusing on inclusive progress for customers, SMEs, cooperatives, entrepreneurs, and local communities. • Key Celebrations & Staff Recognition: • Commenced with multi-religious observances involving staff and stakeholders. • Recognized staff with 25 years of service at a special ceremony, awarding gold coins for their long-standing dedication. • Islandwide branch-level events held to foster engagement with local clients and communities. • Community & Livelihood Initiatives: • Launched a beekeeping entrepreneur development project in Badulla to support environmentally responsible income and rural microfinance opportunities. • Scheduled a national blood donation drive organized by the bank's Welfare Society for September. • Strategic Focus: Acting CEO Manoj Akmeemana reiterated the bank's commitment to creating financial opportunities, empowering livelihoods, and advancing sustainable economic progress across Sri Lanka.
📉 Fitch Withdraws Rating on WindForce’s Proposed LKR 4 Bn Debentures
• Rating Withdrawal: Fitch Ratings has withdrawn the 'A(lka)' rating assigned to WindForce PLC’s proposed senior unsecured redeemable debenture issue of up to LKR 4 Bn. • Key Drivers: The renewable energy firm postponed the issuance indefinitely following a rise in market interest rates. The company is now evaluating alternative funding sources for its scheduled power projects. • Corporate Profile: The proposed debt was rated one notch lower than WindForce's National Long-Term Rating of 'A+(lka)/Stable' due to structural subordination from secured debt at operating subsidiaries, which was utilized to finance capacity expansion in the power sector.
Asset Engineering Secures Rs 791.68 Mn Horton Plains Road Contract 🏗️
• Contract Details: The Cabinet approved awarding a project valued at Rs 791.68 Mn (excluding tax) to Asset Engineering (Pvt) Ltd to construct the Blackpool-Ambewela-Pattipola-Horton Plains road (B 512). • Scope of Work: The project covers a 6.8 km stretch from the km 5+200 mark to the km 12+000 mark. • Competitive Bidding: Asset Engineering emerged as the lowest responsive bidder out of 4 bids received. • Context: The development addresses road damage caused 10 months ago by Cyclone Ditwah.
PPP Model Revives Hingurana Sugar Factory Into Regional Agri-Hub 📊
• Overview: A landmark Public-Private Partnership (PPP) formed in 2007 between the Government of Sri Lanka (51% stake) and private partners Browns & LOLC (49% stake) successfully turned around the dormant Hingurana Sugar Factory, transforming it into a thriving multi-product enterprise. • Operations & Expansion: The operation has expanded beyond sugar production into ethanol, power generation, and bio-fertiliser, now cultivating approximately 8,500 hectares of land using modern, computerized processing systems. • Socio-Economic Impact: • Provides direct employment to ~1,300 people and engages ~8,000 farmers in cultivation partnerships, benefiting over 30,000 individuals regionally. • Rebuilt critical rural infrastructure, including irrigation canals, drainage systems, and road networks. • Macro Context: Strengthening domestic sugar production reduces Sri Lanka's reliance on imports, helping conserve vital foreign exchange and easing pressure on the national balance of payments.
🏨 Sampath Bank Acquires Anilana Hotels Under Parate Execution
• Banking & Hospitality: Sampath Bank has acquired Anilana Hotels and Properties' assets in Nilaveli, Trincomalee, and Pasikuda under the Recovery of Loans by Banks Act No. 04 of 1990. • Legal Challenges: Anilana has filed two court cases challenging the bank’s parate execution resolution. • Restructuring Efforts: The company filed for a compromise under the Companies Act, citing a prospective investor offer of LKR 1.2 Bn for the hotel properties. • Current Status: Anilana stated it will disclose details if a compromise with Sampath Bank is reached in the Commercial High Court.