2 Trade Finance & Investments PLC • Annual Report 2015/16

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12 Trade Finance & Investments PLC • Annual Report 2015/16 Profile of the Management Team Mr. Suresh S. Pereira Manager - Operations Mr. Pereira is an Associate Member of Institute of Chartered Accountants of Sri Lanka (ACA). He holds a Special Bachelor Degree in Business Administration from University of Colombo. He has over 5 years experience in Financial and Auditing fields. He joined TFI in May 2011 after serving KPMG with over 2 years experience as an Accountant cum Finance controller. Mr. Roshen Wijesinghe Accountant Mr. Wijesinghe is an Associate Member of Institute of Chartered Accountants of Sri Lanka (ACA). He holds a Special Bachelor Degree in Business Administrations from University of Colombo as well as he is an Associate Member of AAT Sri Lanka (MAAT). He has over 5 years experience in Financial and Auditing fields. He joined TFI in September 2013 after serving KPMG. Mr. Palitha Fernando Branch Manager - Head Office Mr. Fernando has over 23 years experience in Credit and Finance/Leasing fields. He joined TFI in 1987 to the Department of Credit and re-joined TFI in 1997 as a Manager Credit. Mr. Wasim Mirza Head of IT Mr. Mirza holds a Diploma in Hardware Engineering and Computer Science at Open Arc Systems Management (Pvt) Ltd. He has over 6 years experience in computer hardware field. He joined TFI in November 2012. Mr. Bamunuge kenadith Lahiru Manager - IT Systems Mr. Kenadith holds a Bachelor Degree in Information Technology from University of Colombo. He is an Associate Member of Institute of Project Management Professions (USA) and Associate Member of Institute of Sun Certification of Java Programming (USA). He has 5 years experience in Software Engineering. He joined TFI, after serving for Open Arc as a Software Engineer cum Project Leader. Mr. T.G. Rajapaksha Senior Manager - Credit Mr. Rajapaksha completed his first examination in Arts in 1984 at University of Peradeniya and he joined TFI in 1990. He has over 20 years of experience in Credit, Insurance, Finance and Leasing fields. Mr. Geeth Mathangadeera Manager - Recoveries Mr. Mathangadeera joined TFI in 1990 as a Trainee Accounts Assistant. With over 23 years of experience in Leasing, he is now serving TFI has Manager - Recoveries.
Annual Report 2015/16 • Trade Finance & Investments PLC 13 Management Discussion and Analysis World Economy Global growth, currently estimated at 3.1% in 2015, is lower than the 3.4% growth in 2014. The collapsing commodity prices reflected adversely on emerging markets like Russia and Brazil but surprisingly, other emerging economies like India and Vietnam showed more positive results. The Chinese economy was a clear leader, although it experienced its slowest growth in 25 years, with overall Gross Domestic Product (GDP) growth remaining relatively robust compared to its peers. In addition, global oil prices fell dramatically during the year on account of the persistent supply glut. There were continued capital outflows in many emerging markets spurred by a 0.3% hike in US interest rates in December 2015. Global growth is projected to be 3.4% in 2016 and 3.6% in 2017. Risks to the global outlook remain tilted to the downside and relate to ongoing adjustments in the global economy. This includes a generalized slowdown in emerging market economies, China’s rebalancing, lower commodity prices, and the gradual exit from extraordinarily accommodative monetary conditions in the United States. Sri Lankan Economy Economic growth in Sri Lanka in 2015 registered 4.8%, compared with 4.9% in 2014. A slowdown in the growth of demand in Sri Lanka’s traditional export markets impacted the growth of the export sector while a strengthening US economy prompted short term capital outflows. The impact of these developments was offset to some extent by lower international commodity prices. Nevertheless, domestic consumption rebounded as incomes grew, particularly among public sector workers. Agriculture and services related activities grew by 5.5% and 5.3% respectively, while industry related activities grew by 3.0% during 2015. Inflation, as measured by the year on - year change in the Colombo Consumers’ Price Index (CCPI), was in negative territory during July - September 2015, mainly due to subdued commodity prices. This was the first time that inflation turned negative since March 1995. However, by end 2015, year-on-year headline inflation was recorded at 2.8%, compared to 2.1% at the end of 2014. Correspondingly, core inflation, which switches out energy and selected food items from the CCPI basket, grew from 0.8%, on a year on - year basis in February 2015, to reach 4.5% at the end of the year. This was driven primarily by the enhanced growth of bank credit as well as higher wages afforded to government workers and employees in other sectors of the economy. Meanwhile, despite substantial gains from the lower oil prices and continued positive trends in the tourism sector, slowing down of net foreign exchange inflows, including worker remittances, and capital outflows, generated an overall deficit in the Balance of Payments (BOP). During the year 2015, domestic financial markets operated with relatively high volatility consequent to monetary and Balance of Payment conditions emanated partly from global developments. The domestic money market recorded gradual decline in excess rupee liquidity to Rs.105.0 Bn at the end of 2015 from Rs.331.0 Bn in 2014 and the weighted average call money market rate behaved in the range of 5.8 - 7.0% range in 2015 compared to 5.7 - 7.7% range in 2014. The domestic foreign exchange market recorded decreased volumes where the excess volatility in the exchange rate of the rupee against the US dollar was stabilized through normal intervention supported by foreign reserves. However, increased demand for US dollar and subsequent to the policy decision in September 2015 to accommodate greater flexibility to the market in determination of exchange rate, the rupee depreciated by about 9.0% against the US dollar. In the government securities market, the benchmark yield rate on 364 - day Treasury Bills increased by 130 basis points at the end of 2015 from end 2014 as a result of substantial withdrawals of investments in Treasury Bills and Bonds by foreigners and also due to the increase of statutory reserve requirement by 150 basis points in December 2015. In the Colombo Stock Exchange (CSE), All Share Price Index (ASPI) declined 5.5% to 6,894 points by end 2015 from 7,299 points in 2014 while market capitalization dropped by 5.4% to Rs.2.9 Tn at the year end. Domestic savings declined to 22.6% of GDP in 2015, from 24.0% of GDP in 2014. An decrease in government savings, amidst lower than expected government revenue coupled with an overrun in recurrent expenditure, resulted in the deterioration of domestic savings during the year, as private savings remained broadly unchanged. This, together with the deterioration of net primary income from the rest of the world, along with a reduction in earnings on investment and increased outflows, dampened national savings in 2015, although remittances increased marginally, in rupee terms.
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2 Trade Finance & Investments PLC • Annual Report 2015/16

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