*ACS Capital Research* *News Alert 28.02.2025* *NPLs to decline further in Q1* Sri Lanka’s Non-Performing Loans (NPLs) in the banking sector are expected to decline in the first quarter of 2025, while loan demand is anticipated to rise following interest rate reductions, the Central Bank of Sri Lanka (CBSL)stated. Source:https://www.themorning.lk/articles/SaA53NdpOQp4PsmO9tXa *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. Source: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. Source:https://www.ft.lk/front-page/Netherlands-Ambassador-says-ready-for-port-related-investments-in-Sri-Lanka/44-773571 *Sri Lanka services exports rise 37-pct in January: EDB* Sri Lanka’s services exports grew 37.8 percent from a year ago to 329.37 million US dollars in January 2024, the island’s Export Development Board said. Source:https://economynext.com/sri-lanka-services-exports-rise-37-pct-in-january-edb-207387/ *Minister clarifies 15% tax on digital service exports* Minister of Labour and Deputy Minister of Economic Development, Prof. Anil Jayantha Fernando, has addressed concerns regarding the taxation of individuals earning foreign revenue through digital services. Source:https://www.themorning.lk/articles/mtn3rAwuC0OGCVSw1UA5 *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. Source:https://www.dailymirror.lk/breaking-news/Colombo-Land-Valuation-Indicator-records-7-7-increase-in-2H24/108-303326 *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. Source: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. Source: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. Source:https://www.dailymirror.lk/business-news/Overseas-Realty-records-Rs-6-6bn-profit-before-tax-for-2024/273-303321