📈 Hayleys PLC Flags Lending Limits as Major Growth Barrier

Sri Lanka’s largest diversified conglomerate, Hayleys PLC, has identified the reduction of the Single Borrower Limit (SBL) as a critical hurdle for large-scale corporate expansion. Speaking at the HNB Investment Bank Investor Forum, Executive Director Sarath Ganegoda highlighted that access to funding remains the "number one challenge" despite stabilising macroeconomic indicators. • Regulatory Constraints: The Central Bank of Sri Lanka (CBSL) has tightened lending limits to a single borrower/group to 25% of Tier I capital (previously 30%). This cap restricts large firms from securing the substantial capital needed for high-impact projects. • Growth vs. GDP: While Hayleys has maintained an 8-9% growth rate in USD terms over the last decade, Sri Lanka’s GDP has averaged only ~2%. The Group warns that double-digit growth is unattainable without external expansion or improved credit access. • Export Sector Stagnation: Tea remains the top export—a structure unchanged for 30 years—struggling at US$ 1.4–1.6 Bn. Hayleys aims for 50% of its US$ 1.6 Bn turnover to come from exports to remain a net forex earner. • Expansion Barriers: Sovereign constraints and rigid regulations hinder overseas investments, with Ganegoda noting extreme difficulty in obtaining approvals for even US$ 10 Mn in external investments. _Note: Figures based on 2025/26 interim performance and provisional regulatory data._