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Nimesha Jayakody

Product Head: Sector Research

Nimesha currently heads the Sector Research team at Frontier Research and oversees the strategic direction and growth of the team . A key responsibility of hers is the successful delivery of regular reports on selected sectors, as well as making sector-based presentations catering to senior level management teams of Frontier’s clients. She also plays a key support role to the CEO in developing and disseminating the ‘Equity Strategy Perspectives’ report series, which provides varied perspectives on the local equity market with an emphasis on the direction of the market for asset allocation decisions. Her leadership role expands to the Business Development arm of Frontier Research where she is jointly responsible for acquiring, managing and retaining clients.

 

Nimesha has been featured in the media on a few occasions and has made tv appearances on Channel eye’s ‘Business today’ programme and TV1’s ‘Biz1st – In Focus’ programme. She has also acted as the moderator on two panels featuring business leaders, economists and sector specialists. 

 

She loves to relax with a book in her hand!

All Media Appearances

2018 was a challenging year for the banking sector with the need to comply with both local and international directives. In an interview on Business Today, our Product Head of Sector Research, Nimesha Jayakody, shed some light on how well the sector faced these challenges in 2018 and what awaits banks in 2019. Find out more in this video!

Opportunities and Challenges in the Banking Sector

Although the government has made improvements to the Inland Revenue Act, the Securities and Exchange Commission Act and the Foreign Exchange Act, the government has been quite slow to implement the progressive policies that have been highlighted in them. So at a policy level these acts have been well received by most parties however, there will be higher costs to the public in the interim when adopting the changes that have been proposed.

Implications of the Inland Revenue Act

The introduction of the Withholding tax on deposits can be seen as an attempt to widen the tax net. Economic growth was adversely impacted last year largely due to the slowdown in the agricultural sector due to adverse weather impacts. However, at present, since Sri Lanka's labour force is more service oriented. We can see a growth in KPOs and BPOs. Sri Lanka's biggest opportunity right now is the tourism sector which is showing great signs of potential growth. However, what we need to focus on is getting access to the Niche markets to drive economic growth and which sector drives it is more or less irrelevant.

Sector performance and growth outlook

For an economy of US $ 87 bn and a population of 21 mn Sri Lanka has too many banks. Banks will have to compete among limited investors to meet the new capital requirements. Further with the impact of IFRS 9 from this year onward, consolidation within the banking industry remains a viable option.

Sri Lanka: Banks start the countdown to consolidation

The Inland Revenue act that the government has introduced is looking at accessibility for the tax payer by means of technology. However, its implementation is questionable do to administrative weaknesses. The Securities and Exchange Commission act is looking at broad-basing the regulatory coverage.

Implications of the New SEC Act & capital market developments

A discussion on credit growth, exposure to real estate, non-performing loan ratios and profitability of banks during the previous quarter, recent regulations including BASEL III requirements and the outlook for the future.

Nimesha Jayakody on the Sri Lankan Banking Sector