Analysis

New legislation redefines regulatory oversight of Sri Lanka's capital markets
OBG
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Sri Lanka’s stock market has grown by leaps and bounds since the end of the civil war in 2009. But while major upgrades to trading infrastructure are well under way, legislation governing the sector – particularly regarding the regulatory body, the Securities and Exchange Commission of Sri Lanka (SEC) – has at times failed to keep pace. However, in 2016 major changes are expected to laws dictating…

Analysis

Banking
OBG
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The Company Established in 1969 Commercial Bank of Sri Lanka is the largest private sector commercial bank in the country, and the only Sri Lankan banking sector counter represented in the MSCI Frontier Market Index. With a total asset base of approximately LKR816bn ($5.9bn), it has the largest market share in the private commercial banking sector of both loans (14%) and deposits (13.5%) as of June…

Analysis

Telecommunications
OBG
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The Company Dialog Axiata (Dialog), a subsidiary of Axiata Group was incorporated in 1993 and subsequently converted to a public limited liability company in 2005, listing its ordinary shares on the Colombo Stock Exchange (CSE). Dialog Axiata currently holds the market leadership position in Sri Lanka’s mobile telecoms sector, which contributes to over 85% of its revenue, along with a market presence…

Analysis

Diversified
OBG
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The Company Hemas Holdings is a diversified conglomerate, established as a family-owned entity in 1948, and listed on the Colombo Stock Exchange in 2003. The group’s operations are aligned into four main business streams: Health care, with a 42% contribution to company revenues, fast-moving consumer goods (FMCG), at 35%, leisure (9%) and transportation (5%). In terms of earnings before interest…

Analysis

Diversified
OBG
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The Company John Keells Holdings (JKH) is Sri Lanka’s largest conglomerate and holds diverse business interests. The group, which began operations as far back as the 1870s as a produce and exchange broking business, was incorporated as a public limited liability company in 1979 and obtained a listing on the Colombo Stock Exchange in 1986. JKH has issued global depository receipts, which were listed…

Analysis

Power and energy
OBG
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The Comapny LAUGFS Gas (LGL) is a subsidiary of LAUGFS Holdings. Established in 1994 the company entered into the liquefied petroleum gas (LPG) industry in Sri Lanka in 2001, in line with the Sri Lanka government’s move to liberalise the industry in the same year. Having consolidated itself as the second-largest player in the domestic LPG industry, LGL listed in the Colombo Stock Exchange (CSE)…

Analysis

The successes and challenges of building a healthy debt market in Sri Lanka
OBG
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Sri Lanka sold two international bonds in 2015, transactions which coincided with the advent of the new government, and both issues were great successes. They generated significant demand, and pricing was seen as good. In addition, the issues provided confirmation that the international community has faith in the new administration. Indeed, despite having inherited troubled finances, the government…

Analysis

Manufacturing
OBG
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The Company Textured Jersey Lanka (TJL) commenced commercial operations in Sri Lanka in 2001 with Textured Jersey UK and Brandix as joint venture partners. A public limited liability company, renowned for the production of quality, weft-knit fabric, TJL was quoted in the Colombo Stock Exchange (CSE) in 2011 subsequent to a change in ownership in 2004, when Textured Jersey UK was replaced by Pacific…

Analysis

A focus on niche products and apparel manufacturing exports in Sri Lanka
OBG
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An apex industry and the largest foreign exchange earner, Sri Lanka’s apparel manufacturing sector stands as one of the country’s greatest strengths. A focus on quality and value addition over volume and cheap production has seen the industry record years of growth in exports and revenues, particularly in the lingerie, swimwear and sportswear segments, while a reputation for maintaining stringent…

Analysis

Despite a decline of raw materials, rubber remains a strong driver of Sri Lankan industry
OBG
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Sri Lankan rubber has grown from humble roots as a small colonial export to the second most important plantation crop and one of the most successful value-added industries. One of the top rubber producing nations globally, Sri Lanka is also the world leader in solid tyre exports, while other niche products hold a sizable portion of the global market, considering the island’s relative size. This aside,…