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Complaint to the SLSI over Nido & Cerelac products

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The National Consumers Front has said they would be lodging a complaint with the Sri Lanka Standards Institute (SLSI) next week over the quality of ‘Nido’ and ‘Cerelac’ products produced by the world’s largest consumer goods company – Nestlé.

Chairman of the National Consumers Front – Asela Sampath has said that a report has revealed that Nestlé adds sugar and honey to infant milk and cereal products sold in many poorer countries, contrary to international guidelines aimed at preventing obesity and chronic diseases.

Earlier in April, it was reported that campaigners from Public Eye, a Swiss investigative organisation, had sent samples of the Swiss multinational’s baby-food products sold in Asia, Africa and Latin America to a Belgian laboratory for testing.

The results, and examination of product packaging, revealed added sugar in the form of sucrose or honey in samples of Nido, a follow-up milk formula brand intended for use for infants aged one and above, and Cerelac, a cereal aimed at children aged between six months and two years.

In Nestlé’s main European markets, including the UK, there is no added sugar in formulas for young children. While some cereals aimed at older toddlers contain added sugar, there is none in products targeted at babies between six months and one year.

Laurent Gaberell, Public Eye’s agriculture and nutrition expert, said: “Nestlé must put an end to these dangerous double standards and stop adding sugar in all products for children under three years old, in every part of the world.”

WHO guidelines for the European region say no added sugars or sweetening agents should be permitted in any food for children under three. While no guidance has been specifically produced for other regions, researchers say the European document remains equally relevant to other parts of the world.

The UK recommends that children under four avoid food with added sugars because of risks including weight gain and tooth decay. US government guidelines recommend avoiding foods and drinks with added sugars for those younger than two.

In its report, written in collaboration with the International Baby Food Action Network, Public Eye said data from Euromonitor International, a market-research company, revealed global retail sales of above $1bn (£800m) for Cerelac. The highest figures are in low- and middle-income countries, with 40% of sales just in Brazil and India.

Dr Nigel Rollins, a medical officer at the WHO, said the findings represented “a double standard […] that can’t be justified”.

Biscuit-flavoured cereals for babies aged six months and older contained 6g of added sugar for every serving in Senegal and South Africa, researchers found. The same product sold in Switzerland has none.

Tests on Cerelac products sold in India showed, on average, more than 2.7g of added sugar for every serving.

In Brazil, where Cerelac is known as Mucilon, two out of eight products were found to have no added sugar but the other six contained nearly 4g for each serving. In Nigeria, one product tested had up to 6.8g .

Meanwhile, tests on products from the Nido brand, which has worldwide retail sales of more than $1bn, revealed significant variation in sugar levels.

In the Philippines, products aimed at toddlers contain no added sugar. However, in Indonesia, Nido baby-food products, sold as Dancow, all contained about 2g of added sugar per 100g of product in the form of honey, or 0.8g a serving.

In Mexico, two of the three Nido products available for toddlers contained no added sugar, but the third contained 1.7g per serving. Nido Kinder 1+ products sold in South-Africa, Nigeria and Senegal all contained nearly 1g per serving, the report said.

A Nestlé spokesperson said: “We believe in the nutritional quality of our products for early childhood and prioritise using high-quality ingredients adapted to the growth and development of children.”

She said that within the “highly regulated” category of baby food, Nestlé always complied “with local regulations or international standards, including labelling requirements and thresholds on carbohydrate content that encompasses sugars” and declared total sugars in its products, including those coming from honey.

Variations in recipes depended on factors including regulation and availability of local ingredients, she said.

The company has reduced the total amount of added sugars in its infant cereals portfolio by 11% worldwide over the past decade, she said, and continued to reformulate products to reduce them further.

Sucrose and glucose syrup were being phased out of “growing-up milks” aimed at toddlers worldwide, she added.

(Excerpts : theguardian.com)

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Meta to spend hundreds of billions to build AI data centres

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Meta’s founder Mark Zuckerberg has said the social media giant will spend hundreds of billions of dollars on building huge AI data centres in the US.

The first multi-gigawatt data centre, called Prometheus, is expected to come online in 2026, Zuckerberg said.

He said one of the sites would cover an area nearly the size of Manhattan (59.1 sq km/22.8 sq miles).

Meta has invested heavily in efforts to develop what it called “superintelligence” – technology that it said could out-think the smartest humans.

The company, which has made most of its money from online advertising, generated more than $160bn in revenue in 2024.

In a post on his social media platform, Threads, Zuckerberg said Meta was building several multi-gigawatt clusters, and that one cluster, called Hyperion, could scale up to five gigawatts over several years.

“We’re building multiple more titan clusters as well. Just one of these covers a significant part of the footprint of Manhattan,” he added.

Prometheus will be built in New Albany, Ohio, while Hyperion will be built in Louisiana and is expected to be fully online by 2030, Zuckerberg said.

He said Meta would “invest hundreds of billions of dollars… to build superintelligence” and that the centres had been given “names befitting their scale and impact”.

Karl Freund, principal analyst at Cambrian AI Research, told the BBC, “clearly, Zuckerberg intends to spend his way to the top of the AI heap”.

“The talent he is hiring will have access to some of the best AI Hardware in the world,” Freund added.

Meta shares were trading 1% higher following the announcement, Reuters news agency reported. The stock has risen more than 20% so far this year.

There are at least 10,000 data centres around the world hosting the cloud – remote servers that store digital information – with most of them located in the US, followed by the UK and Germany.

AI-driven data centres are extremely energy and water intensive. One study estimates that these centres could consume 1.7 trillion gallons of water globally by 2027. A single AI query – for example, a request to ChatGPT – can use about as much water as a small bottle you’d buy from the corner shop.


(BBC News)

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CBSL’s anti-pyramid awareness week begins

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The Central Bank of Sri Lanka (CBSL) is launching a major awareness drive, “Anti-Pyramid National Awareness Week,” from July 14 to 18, to educate the public about the dangers of illegal pyramid schemes and unauthorised deposit taking.

The campaign, organised by the Financial Consumer Relations Department, will utilise various channels, including schools, Grama Niladhari divisions, and mass media, to reach a wide audience. The core message is that pyramid schemes are traps and should be avoided.  Central Bank Governor Dr. Nandalal Weerasinghe yesterday said illegal pyramid schemes and unauthorised deposit taking in Sri Lanka is on the rise.
He pointed out that such illegal schemes not only pose a threat to individuals and institutions which fall prey but to the entire Sri Lankan economy.

The ‘Anti-Pyramid National Awareness Week’ from July 14 to 18 will be launched under the theme of: “Pyramid is a trap – don’t get into the wrong track.”

This national initiative aligns with CBSL’s mandate to maintain financial system stability and promote the well-being of financial consumers. The campaign aims to raise widespread awareness on Prohibited Pyramid Schemes and the significant risks they pose to individuals and the broader economy.

The campaign is expected to generate substantial national awareness among a wide cross-section of the population, including School Students and Teachers, Officers of the Tri-Forces, Civil Security Department Personnel, Officers of Sri Lanka Police, Government Sector Employees and Public.

Outreach activities will be carried out through 6,172 schools and 14,022 Grama Niladhari (GN) divisions’ countrywide, ensuring extensive grassroot-level coverage and community engagement.

Throughout the awareness week, participants will be educated on legal provisions relating to prohibited pyramid schemes, the deceptive nature and structure of such business models, risks and financial consequences of investing in pyramid schemes, real-life accounts and painful experiences of victims.

A multi-platform media strategy will be utilised to ensure a broader and effective outreach. This includes newspaper advertisements, social media campaigns, educational posters, live-stream sessions, television and radio programmes, news taglines, public seminars across the country. CBSL encourages all members of the public to actively participate in the campaign and stay informed.

Awareness and vigilance are key to protecting oneself and others from financial fraud and preserving trust in the financial system the CBSL yesterday said.

(dailynews.lk)

(Except for the headline, this story, originally published by dailynews.lk has not been edited by SLM staff)

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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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