New warehouse doubles capacity for Sri Lanka’s Asia Siyaka

ECONOMYNEXT – Sri Lankan broker Asia Siyaka Commodities PLC said the commissioning of a new warehouse will double storage capacity and support business diversification efforts, increasing non-broking income.

Sales fell 11% in 2015 owing to the prolonged slump in commodity prices but auction prices were consistently maintained above general sales average with a focus on quality, and market share in terms of quantity retained as well, its chairman Anura Ekanayake said.

The company has diversified services to include modern warehousing facilities, enhancing the stability of the company, he said in the firm’s annual report to shareholders.

“We pursued this strategy of broad basing our sources of income completing a second warehousing facility which supported the increase of non-broking income from 60% to 68%,” he said. “Diversification is key to survival and Asia Siyaka continues to pursue this strategy aggressively.”

The company seeks to further improve the diversity of earnings by strengthening the non-traditional commodities business with the drop in traded volumes last year resulting in a reduction of brokerage income, Managing Director Anil Cooke said.

Non-traditional crops include desiccated coconut, coffee and spices which are primarily export crops.

Asia Siyaka Commodities invested Rs367.26 million in the group’s second warehousing facility during the year, Cooke said.

The ‘green’ warehouse is designed to ensure optimum energy efficiency, aimed at reducing overall energy consumption and dependence on fossil fuels, the report said.

These measures include efforts to improve natural lighting flows and natural air flows for cooling purpose to reduce energy inputs, solar energy to fulfill 100% of the warehouses’ energy requirements, and trucks and stackers powered by electricity.
(COLOMBO, July 06, 2016)

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