*Softlogic Stockbrokers* *News Alert –28th February 2025* *NPLs to decline further in Q1* Releasing the Survey on Credit Supply for Q4 of 2024, CBSL reported that NPLs are expected to decline across all sectors in Q1 of 2025, driven by the continuation of flexible payment options, further reductions in interest rates, and a favourable economic outlook. https://www.themorning.lk/articles/SaA53NdpOQp4PsmO9tXa *Colombo Land Valuation Indicator records 7.7% increase in 2H24* The Land Valuation Indicator (LVI) for Colombo District recorded 236.8 during the second half of 2024, with a year-on-year increase of 7.7 percent. https://www.dailymirror.lk/breaking-news/Colombo-Land-Valuation-Indicator-records-7-7-increase-in-2H24/108-303326 *Minister clarifies 15% tax on digital service exports* Prof. Fernando clarified that the taxation system applies to all income earned within Sri Lanka, regardless of whether the source is domestic or international. However, he noted that relief measures have been introduced for those earning from digital services compared to other sectors. https://www.themorning.lk/articles/mtn3rAwuC0OGCVSw1UA5 *Budget very constructive and well crafted in every aspect – Dr Coomaraswamy* He made these observations delivering the keynote address under the theme “Structural Reforms for Crisis Driven Poverty Reduction” at the Centre for Poverty Analysis (CEPA) forum on crisis driven poverty, held in Colombo yesterday (27). It was jointly organized by the CEPA and Asian Development Bank (ADB). https://www.dailynews.lk/2025/02/28/business/732559/budget-very-constructive-and-well-crafted-in-every-aspect-dr-coomaraswamy/ *Sri Lanka must await B-minus credit upgrade to tap global markets* • Asserts Sri Lanka needs to demonstrate policy consistency to the world • While island nation has seen a marked improvement in foreign currency liquidity, following IMF programme, it is still not attractive enough for offshore lenders, given its high-risk profile https://www.dailymirror.lk/breaking-news/Sri-Lanka-must-await-B-minus-credit-upgrade-to-tap-global-markets/108-303327 *Japan to invest in Sri Lanka’s digital transformation and port development* President Anura Kumara Dissanayake yesterday met with Japanese Ambassador Akio Isomata and discussed issues of bilateral interest.During the meeting, the Ambassador officially invited President Dissanayake to visit Japan and expressed appreciation for the new Government’s policy framework. https://www.ft.lk/front-page/Japan-to-invest-in-Sri-Lanka-s-digital-transformation-and-port-development/44-773572 *Netherlands Ambassador says ready for port-related investments in Sri Lanka* The Netherlands Government has said it is prepared to engage in port-related investments in Sri Lanka. This was revealed by the Netherlands Ambassador Bonnie Horbach when she called on Presidential Anura Kumara Disanayake yesterday. https://www.ft.lk/front-page/Netherlands-Ambassador-says-ready-for-port-related-investments-in-Sri-Lanka/44-773571 *Better refund mechanism to replace SVAT* “The IMF agreement stipulates that SVAT must be removed in September, but under one condition—there must be a robust refund mechanism in place,” he said, adding that the VAT Amendment Bill aims to formalise the transition from the SVAT mechanism to a risk-based refund system. https://www.themorning.lk/articles/FCqPCifoYfZWRJOiQdXi *BOC records Rs. 106.9 Bn profit in 2024* The Bank successfully repriced its assets and liabilities, leading to a momentous 84% increase in net interest income to Rs. 167.6 billion compared to Rs. 91.2 billion in 2023. The Bank reported total operating income of Rs. 182.0 billion, reflecting a significant growth of 81% compared to the previous year. Operating expenses amounted to Rs. 67.1 billion, marking a 28% YoY increase, which was mainly due to increased personnel costs (35%) and other overhead expenses (21%). https://www.dailynews.lk/2025/02/28/business/732590/boc-records-rs-106-9-bn-profit-in-2024/ *SLT Group ends FY 2024 with significant turnaround in profitability* The SLT Group yesterday reported a massive turnaround in profitability as of December 2024, driven by strong operational performance and successful cost optimisation across fixed and mobile segments, with momentum accelerating steadily during the year. https://www.ft.lk/front-page/SLT-Group-ends-FY-2024-with-significant-turnaround-in-profitability/44-773573 *Distilleries Company sales, profits up in December quarter* Distilleries Company of Sri Lanka PLC reports a strong financial performance for the three months ended in December 2024, its third fiscal quarter, on the back of higher sales and margins, which appear to have been possible from the easing in direct costs. https://www.dailymirror.lk/business-news/Distilleries-Company-sales-profits-up-in-December-quarter/273-303323# *Overseas Realty records Rs.6.6bn profit before tax for 2024* Overseas Realty (Ceylon) PLC, recording a group revenue of Rs.2.52 billion in its fourth quarter (4Q24), a 23.7 percent year-on-year (YoY) increase and saw its earnings expand 62 percent YoY to Rs.1.83 billion. https://www.dailymirror.lk/business-news/Overseas-Realty-records-Rs-6-6bn-profit-before-tax-for-2024/273-303321 _Softlogic Research_