2. C O N T E N T S
ECONOMY & BUSINESS
Sri Lanka tops island economies ranking
Sri Lanka Regains GSP Plus
Debug Hospitality and Leisure launches Amber Collection in Sri Lanka
Jetwing Lake opens
India’s ITC Group to build mid-market hotel chain with MMBL Leisure
INTERNATIONAL
BANKING & FINANCE
Commercial Bank offers e-FDs online
Exciting new features in Combank’s re-launched ‘Dotcom Teen Account’
Commercial Bank Results as at 31 March 2017
China's One Belt One Road
4. Commercial Bank offers e-FDs online
< Research & Development Unit >
Commercial Bank’s Online Banking platform
has been further enhanced with the
introduction of Electronic Fixed Deposits
(e-FDs) in both local and foreign currencies.
• The e-FD facility is available 24 x 7, 365 days of the year, to Sri Lankan citizens and
holders of Non Resident Foreign Currency Accounts (NRFCs), Resident Non National
Foreign Currency Accounts (RNNFCs), Resident Foreign Currency Accounts (RFCs)
and ‘FC Plus’ accounts in the Domestic Banking section, the Bank said.
• Foreign Currency e-FDs may be opened in four major currencies – the US Dollar,
Great Britain Pound, Euro or Australian Dollar.
5. Exciting new features in Combank’s
re-launched ‘Dotcom Teen Account’
< Research & Development Unit >
Banking has just become more exciting for teenagers and
pre-teens with the re-launch of ‘Dotcom’ Teen Account – the
popular Youth Savings Account of Commercial Bank of Ceylon,
with a host of new features and benefits.
• Dotcom Teen Account holders, who are between the ages of 10 and 18
years, can now obtain loans for educational purposes, use their debit
cards to make purchases or withdrawals and enjoy Online Banking and
Mobile Banking free of charge.
• Additionally, the parents or guardians of Dotcom Teen Account holders can transfer funds to their
children’s accounts via standing orders free of charge, and receive SMS notifications on all
transactions carried out with the Dotcom debit card.
• The Dotcom debit cards are Near Field Communication (NFC) enabled for secure ‘tap and go’
transactions. Cardholders are also eligible to receive COMBANK Max Loyalty Rewards points on all
payments.
6. Commercial Bank Results as at 31 March 2017
< Research & Development Unit >
Profit before Tax Profit after Tax
Cont…
7. < Research & Development Unit >
Due to other Customers Loans and Receivables to
other Customers
Commercial Bank Results as at 31 March 2017
(cont..)
9. Sri Lanka tops island economies ranking
< Research & Development Unit >
“If this result confirms the country’s potential for
investment achieved in the past few years it does not
necessarily mean that this potential has fully
materialized yet. In fact levels of FDI remain relatively
low. In 2016 foreign investment accounted for less than
one percent of GDP, well below the rate for South
Asian countries which the World Bank says is about
1.8% on average,” stated fDi Magazine Deputy
Editor Jacopo Dettoni making a short presentation.
fDi Magazine, part of The Financial Times UK, has
selected Sri Lanka as the top pick among twenty
seven island economies around the world as
having the most potential to attract investment.
10. Sri Lanka Regains GSP Plus
< Research & Development Unit >
EU - Sri Lanka's biggest export market (nearly 1/3 of SL's total exports)
Total bilateral trade - Almost EUR 4 bn (2016)
EU’s imports from Sri Lanka - EUR 2.6 bn (or USD 2.8 bn)
(Mainly of apparel, rubber products, fisheries, food (including tea) and
light engineering products)
Immediate tariff benefit - EUR 300 mn (around USD 330 mn) a year
The European Union removed a significant part of the
remaining import duties on Sri Lankan products with effect
from 19th May, 2017 as part of a special arrangement of the
EU's Generalised Scheme of Preferences, known as GSP Plus.
Cont…Source: A. Wijesinghe & J. Ratnayake - EIU of CCC, K. Hewage & S. Satarasinghe - IPS
11. Sri Lanka Regains GSP Plus (cont..)
< Research & Development Unit >
Main sectors that will benefit under GSP Plus;
In many apparel categories duties
will be cut from 9.6% to zero
Seafood sector - 18.5% to zero
Fresh & processed fruits and
vegetables sector - 12.5% to zero
Porcelain and ceramic ware sector
- 8.4% to zero
Toy products sector - 1.2% to
zero.
Cont…Source: A. Wijesinghe & J. Ratnayake - EIU of CCC, K. Hewage & S. Satarasinghe - IPS
12. Sri Lanka Regains GSP Plus (cont..)
< Research & Development Unit >
Sri Lanka’s top export product, apparel which accounts for 61% of total
exports to the EU will get a major boost due to regaining the GSP Plus
facility.
Indications are that more EU customers would now change their
sourcing strategy (which currently is tilted towards duty free countries
like Bangladesh and Cambodia) in favour of Sri Lanka.
Given that Rules of Origin (ROO) under GSP Plus requires fabric to be
sourced from Sri Lanka (or from an area that qualifies for regional
cumulation) in order to qualify for GSP Plus, an increase in demand for
fabric sourced from Sri Lankan fabric mills (rather than from countries
such as China) is anticipated
Cont…Source: A. Wijesinghe & J. Ratnayake - EIU of CCC, K. Hewage & S. Satarasinghe - IPS
13. Sri Lanka Regains GSP Plus (cont..)
< Research & Development Unit >
Within the EU, Britain is the biggest market, accounting for the bulk
(approximately 30%) of Lankan exports.
Sri Lankan exports will no longer qualify for preferential access to the
UK once it leaves the EU, unless a similar arrangement is negotiated
directly between Sri Lanka and the UK.
Therefore, Sri Lanka should prepare to face an economic shock, at least
temporarily, to its export sector, once the UK officially leaves the EU.
In apparel, for instance, the UK accounts for more than 40% of total
Sri Lankan exports to the EU. Therefore, the government would need
to move early to forge a deal with the UK.
Source: A. Wijesinghe & J. Ratnayake - EIU of CCC, K. Hewage & S. Satarasinghe - IPS
14. Debug Hospitality and Leisure launches
Amber Collection in Sri Lanka
< Research & Development Unit >
The leisure arm of the renowned Sri Lankan brand
Debug – Debug Hospitality and Leisure Ltd. has officially
unveiled ‘The Amber Collection’, the newest high-end
offering by the company for leisure and business
travellers.
The collection consists of boutique service apartments
called ‘Amber FR 16’ and a fleet of luxury houseboats
‘Amber Flow’.
Jetwing Lake opens
The 94-room, all new Jetwing Lake is located 5 km away
from the Dambulla town.
15. India’s ITC Group to build mid-market hotel
chain with MMBL Leisure
< Research & Development Unit >
India’s giant ITC Group is to build a mid-
market hotel chain with MMB Leisure with
first of its kind city hotel planned in Trinco
and several other popular provincial cities.
WelcomeHotels Lanka is the project
company for the ITC Sheraton coming up in
Galle Face with an investment of over USD
300 mn.
ITC Hotels is India’s premier chain of luxury hotels that has become synonymous
with Indian hospitality and operates over 100 hotels in over 70 destinations in
India.
18. China's One Belt One Road
The Belt and Road Forum is China's answer to Davos or the G20, centered around the
colossal One Belt, One Road (OBOR) trade initiative, which takes its inspiration from
the ancient Silk Road trading route.
• In 2013 Chinese President Xi Jinping unveiled an ambitious economic and foreign
policy - the "Silk Road Economic Belt" and the "21st Century Maritime Silk Road".
• China wants to revive the network of silk-trade routes across ocean and land of
centuries past.
• It's instigating an infrastructure-building boom across Central Asia up to Europe to
boost trade and improve transport logistics.
• The land-based projects are the belt. Various economic corridors are on the cards
too, including with Pakistan, Mongolia and Bangladesh.
• The maritime route will connect up China's southern provinces to south-east Asia
and the east coast of Africa with ports and railways.
< Research & Development Unit >
Disclaimer: This presentation has been issued for the information of the customers of Commercial Bank of Ceylon PLC only. The Bank and its employees do not accept any responsibility for the accuracy or completeness of the contents and any losses arising from any use of this material.
Cont..
19. China's One Belt One Road: WHY
• Beijing wants to exercise regional leadership, and make the Renminbi the main
trade and investment currency in countries involved.
• China needs to channel "excess capacity" somewhere.
• It's about standard setting. China wants to shift from lower-level manufacturing
to higher-end industrial goods. It believes emerging markets in its
neighbourhood will be more willing to accept Chinese-made high-speed rail,
energy generators and telecommunications equipment than developed
countries.
• China is trying to close the inequality gap between inland western provinces
and its wealthy eastern seaboard.
• China has used the initiative to help portray its economy as open to the world,
distinct from a rising wave of global protectionism, as U.S. President Donald
Trump promotes an "America First" policy. < Research & Development Unit >
Disclaimer: This presentation has been issued for the information of the customers of Commercial Bank of Ceylon PLC only. The Bank and its employees do not accept any responsibility for the accuracy or completeness of the contents and any losses arising from any use of this material.
Cont..
20. China's One Belt One Road: IN NUMBERS
• One Belt One Road has USD 1.3 trillion worth of
projects already initiated.
• President Xi announced an extra USD 124 billion at
Belt and Road Forum in Beijing on May 14-15,2017.
• One Belt One Road is more than seven times larger
than America's Marshall Plan to rebuild Europe after
the Second World War.
• Countries involved: 68
< Research & Development Unit >
Disclaimer: This presentation has been issued for the information of the customers of Commercial Bank of Ceylon PLC only. The Bank and its employees do not accept any responsibility for the accuracy or completeness of the contents and any losses arising from any use of this material.
Cont..
21. Sri Lanka’s place in China’s ‘Silk Road’
Silk Road and its potential for
high level infrastructure boom
offer Sri Lanka an opportunity
to build a platform that would
attract the attention of other
prospective development
partners.
Sri Lanka should view it as an
opportunity to diversify, rather
than one of dependence.
< Research & Development Unit >
Disclaimer: This presentation has been issued for the information of the customers of Commercial Bank of Ceylon PLC only. The Bank and its employees do not accept any responsibility for the accuracy or completeness of the contents and any losses arising from any use of this material.
Source: CNN, NZ Herald & Sri Lanka’s place in China’s ‘Silk Road’ by Ranga Jayasuriya (DM 2017-05-16)
22. The views expressed in Economic Capsule are not necessarily those of the Management of Commercial Bank of Ceylon PLC
The information contained in this presentation has been drawn from sources that we believe to be reliable. However, while we have taken reasonable care to maintain accuracy/completeness of the information,
it should be noted that Commercial Bank of Ceylon PLC and/or its employees should not be held responsible, for providing the information or for losses or damages, financial or otherwise, suffered in consequence
of using such information for whatever purpose.
< Research & Development Unit >
Those who speak do not know. Those who know, do not speak.
Sincere words are not fine; fine words are not sincere.
Lao Tzu