Lower tax charge boosts Sri Lanka’s People’s Insurance June profit

ECONOMYNEXT  – Sri Lanka’s People’s Insurance Company said June 2016 quarter net profit rose 30.1 percent to Rs153 million from a year ago, boosted by a lower tax charge owing to its public listing.

Earnings per share for the quarter fell to 77 cents from 79 cents the year before following increased shares in issue after the initial public offer in January this year.

Gross Written Premium (GWP) rose 10.7 percent to Rs1,061 million in the period, interim accounts filed with thr stock exchange showed.

The pre-tax profit of People’s Insurance Company, a unit of People’s Leasing Company, was up only 1.9 percent to RsRs171 million in the June quarter, but net profit was boosted as the firm benefited from lower income tax.

A note to the accounts said the firm was considered eligible for the 50 percent tax reduction given to listed companies that maintain a minimum public float of 20 percent and income tax was calculated at 14 percent compared with 28 percent in 2015.
(COLOMBO, August 11, 2016)

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