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Coca-Cola recalls drinks over safety concerns

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Coca-Cola has recalled its drinks in some countries across Europe because they contain “higher levels” of a chemical called chlorate.

The firm said in a statement that the recall was focused on Belgium, Luxembourg, and the Netherlands. It added just five product lines had been shipped to Britain, and they had already been sold.

Affected products include the Coke, Fanta, Sprite, Tropico and Minute Maid brands, according to the Belgium branch of Coca-Cola’s international bottling and distribution operation.

Chlorate can be produced when chlorine-based disinfectants are used in water treatment and food processing.

“Independent expert analysis concludes that any associated risk for consumers is very low,” a spokesperson told the BBC.

Coca-Cola said it had not received any consumer complaints in Great Britain, and that it had “alerted the authorities on this matter and will continue to collaborate with them.”

The company added the issue has affected “a very small number of imported cans” of Appletiser, Coca-Cola Original Taste, Coca-Cola Zero Sugar, Diet Coke and Sprite Zero with production codes from 328 GE to 338 GE” which Coca-Cola said can be found on the base of the can.

Anne Gravett from the Food Standards Agency said it was investigating.

“If we identify any unsafe food, we’ll take action to ensure it is removed and alert consumers,” she added.

Exposure to high levels of chlorate can cause health problems including thyroid problems, especially among children and infants.

NHS and private nutritionist Caron Grazette told the BBC: “We need to question whether or not we want to digest chemicals in soft drinks which are used in the production of fireworks and disinfectants, however small the quantity”.

Chlorate’s effects on humans when taken in excess include nausea, vomiting, diarrhoea, and limiting the blood’s ability to absorb oxygen, added Ms Grazette, citing recent research into the chemical.

The higher levels of chlorate were discovered during routine testing at the company’s production facility in Ghent, Belgium, according to an unnamed company spokesperson quoted by the AFP news agency.

The majority of unsold products had been withdrawn from shelves, according to AFP, and the company was in the process of withdrawing the rest.

A Coca-Cola spokesperson said it “considers the quality and safety of its products as its top priority”.

(BBC News)

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HNB finance depositors in jeopardy due to ‘PrimeMax’ 0.5% scheme

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A controversial real estate financing model, ‘PrimeMax’, introduced by Prime Lands for apartment buyers, is allegedly putting both buyers and HNB Finance depositors at significant financial risk.

This is because Prime Lands, which holds a 38% stake in HNB Finance, is leveraging its shareholder power to aggressively direct public funds into high-risk, speculative real estate loans.

Experts warn that this move not only violates CBSL’s risk diversification regulations but also exposes HNB Finance to significant liquidity risks.

Traditionally, HNB Finance operates in the microfinance sector, which relies on fast cash flow and frequent repayments.

However, this real estate loan model contradicts the principles of microfinance by front-loading funds into high-value condominium projects and locking capital into long-term, high-value loans with slow repayment cycles. This shift undermines the company’s liquidity, putting both the financial stability of HNB Finance and the security of its depositors’ funds at significant risk.

  • 10% Down Payment: Buyers pay only 10% of the total property value upfront.
  • 47.5% Bank Loan: HNB Finance funds nearly half of the property value through a loan.
  • Interest-Only Payments for 3 Years: Buyers pay just 0.5% per month, primarily covering interest with minimal reduction in the principal.
  • Additional 15% Paid as Interest: Over the 3-year period, buyers will have paid an additional 15% of the sale value as interest.
  • Outstanding Balance After 3 Years: After the 3-year period, approximately 75% of the total property value remains unpaid. This balance consists of the remaining loan amount owed to HNB Finance, along with the outstanding balance owed to Prime Lands.

Prime Lands markets this scheme as a flexible investment opportunity, but economic experts say it is actually a debt trap that locks buyers into long-term loans.

Crippling debt even after 3 years : With more than 75% of the property price left unpaid, buyers will be burdened with a massive financial liability. This overwhelming debt will make it nearly impossible to secure refinancing or sell the property at a reasonable price.Even after 03 years, buyers will still owe roughly 75% of the property’s price, which makes refinancing or reselling at fair value very difficult.

The buyback & resale scam : Meanwhile, the promised opportunity to resell at a higher value is highly speculative and unreliable.  Project delays, unfavorable market conditions, and low demand can make reselling impossible, leaving buyers stuck in a property they can’t sell.

With these limited options, they may be forced into the buyback scheme-often at a price far below market value, resulting in significant financial losses rather than the anticipated profits.

This flawed financing structure does not only impact buyers – it directly threatens the financial stability of HNB Finance customers and depositors:

  • Liquidity Challenges: With loan repayments delayed, HNB Finance may struggle to maintain its financial commitments, putting depositors’ funds at risk.
  • Risk of Defaults: If apartment buyers default due to high outstanding balances, HNB Finance could face serious financial losses, ultimately jeopardizing its depositors’ security.
  • Regulatory Violations: The Central Bank of Sri Lanka enforces strict lending policies for finance companies. This scheme raises concerns about compliance, as it prioritizes aggressive sales over responsible lending practices.The shift from microfinance to large-scale property lending could also push HNB Finance beyond regulatory limits for exposure to a single sector.

The Central Bank of Sri Lanka (CBSL) enforces strict Risk Diversification Regulations for licensed finance companies to prevent excessive exposure to any single sector, ensuring depositor safety and financial stability.

However, HNB Finance PLC is dangerously violating this principle by diverting a significant portion of its funds into speculative real estate loans under the Prime Lands 0.5% scheme.

Unlike commercial banks, finance companies rely heavily on public deposits, making it crucial for them to maintain liquidity and prudent lending practices.

By over-lending to real estate, HNB Finance not only concentrates risk in a volatile sector but also compromises depositor funds, increasing the chances of liquidity shortfalls and defaults.

If this reckless lending continues, HNB Finance risks breaching CBSL’s sectoral exposure limits, leading to severe financial instability.

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UK’s relaxed trade rules to boost SL exports

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The Government of the United Kingdom (UK) has unveiled a package of reforms to simplify imports from developing countries like Sri Lanka after upgrades to the Developing Countries Trading Scheme (DCTS).

The changes, announced as part of the UK’s wider Trade for Development offer, aim to support economic growth in partner countries, including Sri Lanka, while helping UK businesses and consumers access high-quality, affordable goods.

New measures include simplifying rules of origin, enabling more goods from countries such as Sri Lanka, Nigeria, and the Philippines can enter the UK tariff-free, even when using components from across Asia and Africa.

These changes are expected to be in place by early 2026.

This move strengthens Sri Lanka’s position in its second-largest apparel market, supporting exports, jobs, and economic growth.

The British High Commissioner to Sri Lanka, Andrew Patrick, said: “This is a win for the Sri Lankan garment sector, and for UK consumers. With the UK being the second largest export market and garments making up over 60% of that trade, we know manufacturers here will welcome this announcement.

“We want Sri Lanka to improve the utilisation of the UK’s Developing Countries Trading Scheme for a wider range of goods, not just garments. With the Sri Lankan government’s ambition to grow exports, and with the simplification of rules of origin for other sectors too, we strongly encourage more exporters to explore how they can benefit from the preferences offered by the DCTS. The UK remains committed to working towards creating shared prosperity for both our countries.”

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Milk tea price upped by Rs. 10

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The All Island Canteen and Restaurant Owners’ Association has announced a Rs. 10 increase in the price of a cup of milk tea.

Association President Harshana Rukshan stated that the decision was made in response to the recent rise in the price of imported milk powder.

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