Business

CK Hutchison has closed its purchase of Etisalat’s Sri Lankan unit, which will see the UAE-based group exit the market, in line with its goal of streamlining its portfolio.

The deal was first made public in April this year, and has cleared the necessary regulatory hurdles for an outright acquisition.

Under the terms of the agreement, Etisalat will receive a 15% holding in Hutch Lanka, CK Hutchison’s local unit.

The parent firm intends to combine Etisalat’s operation with Hutch Lanka, bringing together Sri Lanka’s third and fourth-placed operators to compete more effectively against the market leader Dialog Axiata. The unit would have a market share of around 24%.

The takeover would see the market reduced to four from five mobile operators now which includes Dialog, Mobitel and Airtel.

Xiaomi, a well established brand in India that has recently dominated the Indian market overtaking the likes of Samsung, is ready to enter Sri Lanka officialy on the 29th of November. It was back in 2014, when Xiaomi entered into a deal with Flipkart, to debut in the world’s second biggest smartphone market. 

Sri Lanka is a growing market for smartphones, and untapped by the likes of Xiaomi. Competitors like Oppo and Huawei have already set foot in the country, while Samsung enjoys a healthy position in the country. As per a study, Huawei is close to Samsung at number two in terms of market share in the country while Apple occupies third position.

Xiaomi India head, Manu Kumar Jain, tweeted about the foray, and declared the launch date as November 29 in the city of Colombo. However, Xiaomi’s product portfolio for Sri Lanka is yet to be known. 

In India, the company is rapidly looking to expand to more categories like smart home products, accessories, gaming laptops, and a lot more besides smartphones. The brand was in the news just recently for setting a world record for the most number of retail stores opened in a single day. 
After developing a stronghold in Asia’s two biggest markets, Xiaomi has also set foot on European soil with UK being the latest target. Xiaomi has managed to take new markets by storm with its high value-for-money smartphones, and flash sales strategies. It will be interesting to see how Sri Lanka takes to the new entrant in the coming weeks.

Smartphone series that brought a revolution - the internationally acclaimed OPPO R-Series is to enter Sri Lanka soon. OPPO R-series is perhaps one of the most influential smartphone lines in history. They kicked it off with R1 in 2014 and later spawned 10 more R-series phones in the booming smartphone market with each achieving a feat with its unbeatable features. 

Being known for the industry-leading design and excellent camera experience, the R-series has made a mark for itself in this crowded smartphone market. Ever since OPPO launched the R1 in 2014, the company has strived hard to look different. 

Design

The R-series phones have been amongst the first ones to bring the metallic colors and glass gradients. When the market was drowning with loads of similar looking smartphones in silver, gold and rose gold, OPPO launched the R9 in beautiful Metallic Red back in 2016. They followed it up with the special FC Barcelona edition in Red and Blue mix. The R11 pioneered the crescent curved design that was both aesthetically pleasing and practical. The R15 introduced the beautiful Ruby Red and Cosmic Purple gradient colors.

Camera

The R-series isn’t just about the design. It has managed to bring the best of photography to mid-range smartphones. It was when OPPO launched the R-series which gave fabulous pitch-perfect pictures even in low-light that made many ditch the regular point-and-shoot cameras. The R1 came with an f/2.0 aperture lens which was a big deal back in 2013. The OPPO R11 was one of the first phones to come with dual 20MP cameras. 

Felicitations

Whilst the R-series stand for REAL, REVOLUTION and REFORM and the process of regeneration OPPO has been felicitated with all big tech awards since the inception of R-series since 2015 from the ‘Most Respected Enterprise’ in 2015 to 2018's Best User Experience Award of Telecommunication. 

OPPO has not been shy in trying new innovations when it comes to its R-series of smartphones. The R-series is a showcase of the company’s willingness to innovate and evolve. In many ways, it stands for OPPO itself.

Each subsequent smartphones in the R-series takes inspiration from its predecessor and then takes it to a higher level. So with its next R-series smartphone, the OPPO R17 Pro, Sri Lankan buyers can expect more of the same. This means a better design, improved performance and even better camera performance.

Neil Umagiliya has been appointed as the Chairman of Bank of Ceylon and assumed duties as the chairman on Monday (19). Umagiliya is presently a Director of Dial Textile Industries (Pvt) Limited, Vijaya Kumaratunge Memorial Hospital and is also a Member of the Sri Lanka German Business Council.

A Fellow Member of the Institute of Chartered Management Accountants, United Kingdom and a Member of the British Institute of Management, Umagliliya has previously held directorships at the Sri Lanka Export Development Board and the Information and Communication Technology Agency (ICTA).

He has also served as a Member of the Monetary Board of the Central Bank.

Sri Lankans are now  able to install solar power lighting systems under one package through a new solution offered by JLanka Technologies, one of the leading solar firms in  the country

This solar power solutions  provider has sealed the deal with Trina Solar as their main distributor for 'Trinahome' within the Sri Lankan market.

According to company officials, JLanka Technologies has installed 3750 Solar PV systems to generate over 32MW of electricity, with the contribution of 55GWh of energy to the national grid to date .

The growth of solar power within the country affirms that Sri Lanka is well on its way to meet the country’s current and future electricity demand through the utilization of smart renewable energy and JLanka Technologies has played a major role towards this end. .

JLanka Technologies broadens their array of products when they introduced Trinahome.Solar power, in an all-inclusive package.
This package contains everything from the solar panels to the inverter, gridbox, mounting system to every nut and bolt that you will require in assembling this. 

Apart from simply introducing this new product to their expanding customer-base they’ve taken the effort to learn from the group at Trina Solar and specialize in the installation of the Trinahome in homes of Sri Lankans.

Since its inception in 2010, JLanka Technologies has reinforced its presence as an impactful energy technological entity as the premier solar solutions provider in the country with a longstanding reputation for quality and unmatched service in the industry. 

Trina Solar is a world leading and total solutions provider for solar energy. Founded in 1997, Trina Solar develops proprietary smart PV solutions for large power stations as well as commercial and residential solutions, energy storage systems and photovoltaic modules. 

At the launch of Trinahome

The 8th Annual Property Guru Asia - Property Awards Grand Final concluded on 9th of November, in an exclusive gala dinner and ceremony held at the Athenee Hotel in Thailand.

Four Sri Lankan companies were shortlisted for the following awards. Accordingly, Prime Group was selected for the the Best Developer (Asia) category and Capital TRUST Residencies (Pvt.) Ltd. for the Best Boutique Developer (Asia) category. 

Altair by Indocean Developers (Pvt) Ltd was selected for the Best Condo Development (Asia) category as well as for the Best Condo Architectural Design (Asia) category.

Meanwhile, Mandarina Colombo by Macksons Properties –– Sri Lanka was selected under the Best Hotel Development (Asia) category. 

Fifteen markets from Sri Lanka to China competed at the largest Grand Final event of the Asia Property Awards to date attended by more than 500 guests, with developers from Japan and Australia making their debut at the ceremony.

Global Rubber Industries (GRI), a specialty tire manufacturer headquartered in Sri Lanka, has installed what it says is one of the largest rooftop solar systems in the country at its factory in Colombo.

With a capacity of 1,200kW (1.2MW), the solar panels are expected to generate 136,557kWh of electricity per month. The panels span across a roof area of approximately 90,000 square feet and is expected to generate a monthly revenue of approximately Rs 3,000,000 (about $42,435) once it is connected to the national electricity grid under the net plus scheme.

The system will help reduce over 1,100 metric tons of carbon emissions per year, which is equivalent to more than 20,000 trees that could absorb CO2 annually, GRI says. Installing solar panels is just one step that the company has taken toward the country’s goal of sourcing 100% renewable generated electricity by 2050.

In addition to the solar power system, GRI has undertaken many other green initiatives such as a bio-mass boiler for steam generation, rainwater harvesting, tree planting, natural lighting on factory sidewalls, etc. to save energy and protect the environment.

“This plant is a testament to the spirit and values embodied by all at GRI. GRI’s values of purposeful action, relentless drive, far-sighted approach coupled with a discovery mindset are evident in every aspect of this plant.” said Prabhash Subasinghe, the company’s managing director.

With 31-years of experience in the renewable energy industry, SunPower Renewables (Pvt) Ltd was chosen to install GRI’s state of the art solar power system. SunPower has been instrumental in introducing the Solar PV technology to Sri Lanka since 1987.

While China is the one of Sri Lanka’s largest trade partners, it also ranks high among the tourist originating countries that visit the South Asian island country each year. This has ensured wide acceptance of Chinese cards at merchants and ATMs across Sri Lankan cities.

UnionPay has now decided to roll out its mobile payments service in Sri Lanka to benefit from the fast growing industry.

UnionPay International, which is UnionPay’s global subsidiary, will collaborate with Cargills Group to launch UnionPay QR code payment service. The roll out will begin in the first half of next year.

Cargills ecosystem includes supermarkets, restaurants and cinemas. UnionPay will power Cargills’ e-wallet with the QR code function through digital issuance of cards. Apart from this, the Chinese lender has also developed NFC mobile payment and in-app payment.

“This cooperation is significant as UPI is rolling out its mobile payment products through cross-border cooperation with large retail groups,” said Cai Jainbo, chief executive officer, UnionPay International.

The mobile payments industry in Sri Lanka is growing rapidly. While the country saw an annual rise of 17.1% in the volume of mobile payment transactions, their value jumped nearly four-fold to Rs 21.3 billion (LKR) in April-June quarter this year, according to central bank data. However, only 2.5% of these transactions were directed towards retail payments. There are 14 licensed mobile payment operators in Sri Lanka.

Early this year, UnionPay international had identified Sri Lanka as one of the “new favorites” of Chinese tourists.  This was reflected in the increased card transaction volumes at catering, accommodation, entertainment, tourist spots and travel booking merchants.

UnionPay’s QR code payment is currently accepted at around 60,000 merchants in 23 countries and regions outside the Chinese mainland. It plans to enhance its service capability outside the region by supporting payment upgrades in overseas markets.

Sri Lanka's telecom operator Dialog Axiata has announced cooperation with Alipay to provide mobile payment services for Chinese tourists in Sri Lanka. The joint statement released said that Alipay will access the payment system of merchants to meet the needs of Chinese tourists in Sri Lanka. Alipay intends to expand its overseas business by providing payment services to Chinese tourists via the offline outlets of Dialog Axiata.

According to Sri Lanka's national tourism promotion bureau, the number of Chinese tourists to Sri Lankan have increased by 4.9% year-on-year in August 2018, reaching 200,000. The total number of visitors received in the first eight months of 2018 reached 1.58 million, a year-on-year increase of 12.5%. Chinese tourists rank second in the number of tourists from all over the world.

In view of Cherry Huang, general manager of Alipay's South Asia and Southeast Asia cross border business, cooperation with Dialog will help Sri Lanka's local businesses access Alipay mobile payment system and create opportunities for local businesspersons.

Dialog Axiata chairman Supun Weerasinghe, regarding the cooperation, has said that Dialog Axiata has 20,000 retailers in Sri Lanka, and Alipay cooperation will provide mobile payment services for their businesses, eliminating the worries of tourists exchanging currencies.

If there is one thing that business leaders and entrepreneurs detest is insecurity in the macro environment.

Businesses run according to forecasts and situations about the future. However, as much as businesses take into account uncertainty, the one thing all want to avoid at all costs is the volatility in the macro environment stemming from political stalemate, extremism, and political dysfunction.

Firms in IT and garments are starting to shift their head offices out of Colombo to Singapore owing to the political crisis, regressive taxations and the general environment for business that Sri Lanka now presents.

A CEO of a large software firm told the Business Times that by month end he will be shifting the headquarters to Singapore. “We find it easier to do business in Singapore. Especially after the new tax system we were debating it as we find it very difficult when consolidating our accounts for certain expenses, etc and with the latest turn of events, we have decided to leave Colombo.”

The country’s political risk has been fractured by the stand-off between former Prime Minister Ranil Wickremesinghe and President Maithripala Sirisena.

A garment factory owner also had the same story to say as the CEO of the software firm. He said that with the new political situation they will be impacted with GSP + being shaky and their decision to shift came early this month. They have decided to shift to Singapore.

Political instability hurts most firms, he added noting this is mostly because employees are often forced to skip work due to strikes and other protests and this impacts on the businesses negatively. In addition, businesses like a region that is friendly and welcoming towards them and not an intimidating and surly dispensation, some others who are debating on whether to shift from Colombo or not said. “The point here is that political insecurity hurts everything from profits to operations to the working conditions of the employees. Because of this businesses avoid it,” an analyst added.

(Sunday Times)

The chairman of the Asia-Pacific Central Securities Depository Group (ACG) Dr. Lee Byungrhae visited the Colombo Stock Exchange for a special market opening ceremony yesterday. The ceremony was the first event in a series of events to mark the 22nd ACG Annual General Meeting which will be hosted by Central Depository Systems (Pvt) Ltd., in Colombo from the 26th to 28th  of November.

Over 100 foreign delegates representing 19 countries across 25 Depositories and Clearing organizations are in Colombo to decide on key matters relating to ACG policy and activities as well as the future of CSDs in light of new technological developments.

Speaking at the ceremony, Dr. Lee Byungrhae expressed his appreciation to the CSE and CDS for hosting the conference this year while noting that the that AGC is committed to working with CDS for the betterment of the Sri Lankan capital market.

The chairman of CSE, Ray Abeywardena, speaking at the ceremony stated that the CSE and the CDS are honored to host an event of such significance, which happens to be the largest gathering of depositories and clearing organizations hosted in Sri Lanka.

"On behalf of CSE and CDS, I would like to express my sincere appreciation to ACG, for providing us with the opportunity to host the 22nd AGM in Sri Lanka. I look forward to attending an engaging and insightful series of events over the next few days and even more so, meeting the diverse depository and clearinghouse specialists who have travelled to Sri Lanka", he added.

The ACG AGM will officially commence on November 27 at the Kingsbury Hotel in Colombo.

The Central Bank said on Friday that Sri Lanka Prosperity Index (SLPI) increased to 0.771 in 2017 from 0.661 recorded in 2016, mainly due to improvements in ‘Economy and Business Climate’ and ‘Socio-Economic Infrastructure’ sub-indices. 

Economy and Business Climate sub-index has improved during 2017, due to increase in per capita Gross Domestic Product (GDP) and enhancements of the aspects associated with employment, CBSL said.

With regard to the sub-index of Socio-Economic Infrastructure, improvements to the road network with the extensions to the expressways, construction of bridges and flyover projects, availability of electricity facilities and improvements in pipe borne water quality were the key drivers. 

Even though ‘Well-being of the People’ sub-index has declined during 2017 mainly due to the reduced levels of purity of environment and air quality, improvements were recorded in the aspects of availability of healthcare facilities, availability and quality of education, wealth of people and their engagement in entertainment activities, CBSL added.