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Friday June 14th, 2024

HSBC digital trade banking offers early payment for Sri Lanka suppliers

ECONOMYNEXT – HSBC is offering a web-based supply chain finance platform initially targeting Sri Lanka apparel exporters that the bank says can make early payments to suppliers, optimise working capital and reduce costs.

Ajay Sharma is the Regional Head of Global Trade & Receivables Finance for HSBC in Asia Pacific said digital platforms offer improves visibility, cuts out paper and reduces turn around times of transactions.

But, he told a forum, “productivity benefits of digital only come when everyone in the cycle embraces these solutions.”

HSBC said its Supply Chain Financing platform, launched last month, helps optimise working capital, and reduce supply chain costs and manual errors.

It supports buyers by optimising payment terms negotiated and agreed with sellers, increasing liquidity and boosting payment efficiency.

“By injecting liquidity into the supply chain, they can extend supplier network and enhance strategic supplier relationships.”

HSCF’s interface allows buyers to upload several invoices with a single click and can also provide accurate forecasts on future cash flow by extracting and analysing data in various formats, supporting the business’s reporting process.
The suppliers that buyers choose to join HSCF will receive early payments based on buyers’ credit ratings, resulting in competitive capital cost benefit, said Nikhil Dhar, senior structured trade solutions manager, HSBC Hong Kong.

On receiving goods and commercial documents like invoices from suppliers, buyers can upload the invoice file onto the platform, approve them online and the buyers’ bank, which could be HSBC, will effect early payments to suppliers.

But Dhar said suppliers need not be HSBC’s customers or maintain accounts with HSBC.

HSBC said the platform currently supports over 20 languages such as English, French, Japanese, Chinese, Italian and German.

“With this programme, suppliers may effectively decrease ‘Days Sales Outstanding’ and enjoy additional working capital without leveraging bank credit lines. It also minimises collection, cash management and insurance costs.”
(COLOMBO, 07 November 2019)

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Sri Lanka opposition leader proposes Grama Rajya system in addition to 13A

Opposition leader Sajith Premadasa (r) – File photo

ECONOMYNEXT — Sri Lanka opposition leader Sajith Premadasa has proposed devolving power to the village level through a Grama Rajya system in addition to implementing the 13th amendment to the constitution.

Speaking at an event in Jaffna on on Wednesday June 12, Premadasa said all provinces will benefit from the 13th amendment.

“Whatever one’s ethnicity, religion, status or region, this country has citizens of equal level. They’re all Sri Lankan citizens.

“There is no division or grouping.  As we give you and every other province what you should be given through the 13th amendment, we must implement a Grama Rajya system,” Premadasa said, addressing a crowd of school children and other attendees.

Premadasa’s assurance of implementing the 13th amendment has already drawn some protest in the south.

A collective of civil society organisations held a protest outside the office of the leader of the opposition in Colombo on Thursday June 12.

Calling itself the ‘Coalition Against Partition of Sri Lanka’, the group carrying national flags marched up to the opposition leader’s office Thursday June 13 morning and demonstrated against the full implementation of the 13th amendment.

“We arrived here today to hand over a missive against devolving police powers, land powers and judicial powers. If Mr Premadasa is inside, come outside,” Jamuni Kamantha Thushara, Chairman of the Citizen’s Movement Against Fraud, Corruption, and Waste, was seen declaring at the site.

“First of all, tell us what we stand to achieve by dividing and giving away the north and east,” said another protestor, warning against bringing the 13th amendment “anywhere here (paththa palaathe)”.

A police officer at the scene the protestors that a secretary to the opposition leader was ready to accept their letter.

“In Kilonochchi, he says the 13th amendment will be implemented. The votes in the north are going to be decisive this election. To win those votes, President Ranil Wickremesinghe, Sajith and Anura Kumara Dissanayake all say they will implement the 13th. We will not allow this country to be divided into nine pieces,” said Thushara.

Ven Balangoda Kassapa Thero, who was arrested on June 06 during a protest against the new Electricity Act, was also seen at Thursday’s protest. The Buddhist monk requested for a debate with Premadasa on the matter of the 13th amendment. (Colombo/Jun12/2024)

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Sri Lanka rupee closes flat at 303.85/95 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed broadly flat at 303.85/95 to the US dollar on Thursday, from 303.80/304.00 to the dollar the previous day, dealers said. Bond yields were down.

A bond maturing on 15.12.2026 closed at 10.00/30 percent, down from 10.20/40 percent.

A bond maturing on 15.10.2027 closed at 10.60/75 percent.

A bond maturing on 01.07.2028 closed at 11.00/15 percent, down from 11.15/40 percent.

A bond maturing on 15.09.2029 closed at 11.80/85 percent.

A bond maturing on 15.05.2030 closed at 11.85/12.05 percent, down from 11.90/12.05 percent.

A bond maturing on 01.10.2032 closed stable at 11.95/12.15 percent. (Colombo/Jun13/2024)

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Sri Lanka sells Rs295bn in 2027 to 2031 bonds

ECONOMYNEXT – Sri Lanka has sold 295 billion rupees in 2027, 2029 and 2031 bonds, data from the state debt office showed.

The debt office sold an offered 60 billion rupees of 15 October 2027 at an average yield of 10.30 percent.

All offered 125 billion rupees of 15 September 2029 bonds were sold at 11.00 percent.

All 110 billion rupees offered of 01 December 2031 bonds were sold at 12.00 percent. (Colombo/May13/2024)

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