Echelon Magazine - March 2019

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A slew of new and tighter rules have been announced or already introduced for finance companies which, over the next two years, will have the impact of denting profits, boosting capital requirements and forcing better risk management practices. Rule changes include increased capital due gradually to the rise to Rs 2.5 billion by 2021. Another has introduced risk-weighted capital on top of a minimum capital requirement, similar to the BASEL rules applying to banks.

Although this should make finance companies healthier - the industry’s smaller players are unenthused. They argue that the combined effect of the poor investment climate, low growth and lack of rural economic vitality will contribute to poor valuations for their businesses when trying to attract new capital. Following the introduction of a new accounting rule, IFRS 9 (the subject of our cover story), loan loss provisions at finance companies have risen by 70% on average, and may rise further. This has dented profits. For a sector where many of its 43 firms are struggling to meet new requirements, these are challenging times.

Of course, they do have a path out and that is to merge among themselves. When two companies with poor valuations merge, none of the shareholders lose. The Central Bank, which is the regulator, also hopes the rule tightening will spur consolidation. It will be the best outcome for the sector.

Echelon Magazine Description:

Intelligent Storytelling

The one thing that will define the Echelon magazine will be the quality of the storytelling. Echelon,published monthly, will cover in depth Sri Lanka’s most successful businesses, examine their winning strategiesand profile their leaders in immersive stories. Great stories are also never limited to words, and our approach includes rich photography, bold graphics and leading edge design which together will make for a compelling read.

But business doesn’t start and end in a boardroom;it extends to the golf club greens, to international travel and to pursuits that blurthe lines between commercial venture and sheer passion. The Echelon team will present the best in business and lifestyle coverage that will appeal to an exclusive and affluent readership: an otherwise hard to reach demographic.

Content will be developed by one of the most experienced and proven teams of editors, financial journalists, photographers and designers in the country.This team has already raised the bar for powerful and expertly crafted business news. Shamindra Kulamannage, will lead the editorial team.

The reputation of Echelon is being built on the separation between editorial and advertising. However we are also looking for the most creative and impactful new formats that can be applied in our magazines, iPad app as well as website to help our clients reach our audience. We are flexible and creative and we will have a solution for every single advertiser who wants to reach our audience.

We are passionate about creative results and about working with our advertisers to help them create bespoke multi platform creative solutions with our in house creative team and of course our sales team.

Echelon will be a great place to show off the products and capabilities of our clients because they will be surrounded by an editorial product that is expertly crafted, full of integrity and intelligence.