According to the World Bank Poverty rates in Sri Lanka have significantly increased in recent years, reflecting the nation’s ongoing economic challenges. In 2019, approximately 11% of the population lived below the poverty line. By 2023, this figure had risen to an estimated 25.9%, indicating a substantial rise in poverty levels.
The World Bank’s 2024 report highlights that poverty rates continued to rise for the fourth consecutive year, with an estimated 25.9% of Sri Lankans living below the poverty line in 2023. Additionally, the proportion of employed individuals earning less than $2.15 per day (purchasing power parity) was 1.8% in 2023.
As of July 1, 2024, 24.8% of the population lives below the poverty line.
In the mean while during 2024 Sri Lanka listed banks have declared a whopping Rs.46.21 billion as dividends from the profits, reports Daily Mirror.
News report:
“Sri Lanka’s listed banks have declared their largest-ever dividend haul for their financial year, ended in December 31, 2024. This is as they posted massive profits on the back of large provision reversals that came from the bond exchange in December last year.
According to Capital Trust Research, the research house of Capital Trust Securities, the listed banks have declared a whopping Rs.46.21 billion as dividends from the profits they made for the financial year ended in December 2024.
“The explosive earnings prompted the banks to declare their highest ever dividend payout haul for CY24 in the data going back to 10 years”, Capital Trust Research said in their banking sector performance review of the fourth quarter results last year.
“ In total, listed banks declared a whopping Rs.46.21 billion in dividends in early 2025, for the financial year ending December 31, 2024, marking their highest dividend payout for any financial year”, they added.
Three largest commercial banks by assets made the three largest dividends for 2024.
Commercial Bank of Ceylon PLC declared the largest dividend of Rs.15.29 billion or Rs.9.50 a share for both voting and non-voting shares with a pay-out ratio of 24.7 percent.
Sampath Bank PLC came in second with total dividends declared amounting to Rs.10.96 billion at Rs.9.35 a share with a pay-out ratio of 38.2 percent.
Hatton National Bank PLC came in third with total dividends of Rs.8.58 billion for both their voting and non-voting shares with a per share dividend of Rs.15.0 and a pay-out ratio of 19.7 percent.
The banks reported some blowout profits for 2024 supported mainly by the reversals of provisions they made for the International Sovereign Bonds (ISBs) they had in their books as they were exchanged for new bonds linked to macro-economy and governance on December 20 last year.
Bond restructuring helped the banks to write back almost all of the provisions they had made for the ISBs, but large amounts of gains from such provision reversals were offset by the net loss booked on derecognition of the old bonds from the books. Listed commercial banks reported total earnings of Rs.72.88 billion for the October – December quarter 2024, up 207.0 percent from the same period in 2023.
The profits were supported by lower provisions made for loans and also the sharp increase seen in the new loans in 2024, particularly in the latter half of the year.