Sri Lanka corporate earnings growth slows to 6.0-pct in June quarter
ECONOMYNEXT – Sri Lanka’s corporate earnings grew 6.6 percent from a year earlier in the June 2016 quarter to Rs50 billion, slowing from 15.9 percent in the March quarter, an equities research report said.
CAL Research, a Colombo-base equities research house, said trailing 12-month earnings grew 5.0 percent to Rs217 billion, compared to a 16.5 percent growth last year.
CAL compared the results of 265 companies for year-on-year data. March quarter data involved 269 firms and the difference was not material, an analyst said.
In 2015, Sri Lanka’s economy got an artificial boost as the government deficit spent, hiking state salaries and pensions and the central bank released about Rs300 billion of liquidity and printed outright about another Rs200 billion to drive credit to unsustainable levels and trigger a balance of payments crisis.
This year, credit is expected to be driven by real deposits.
Banks, Finance and Insurance, the largest sector in the Colombo Stock Exchange, showed a 46 percent gain; Beverage, Food and Tobacco gained 15 percent; and Diversified Holdings grew 10 percent.
The biggest individual contributors were Hatton National Bank (6.8 percent), Commercial Bank (6.5 percent), Ceylon Tobacco (6.1 percent) and John Keells Holdings (4.8 percent).
Top growth was shown by Power and Energy (166 percent), and Land and Property (+82 percent). (Colombo/Aug24/2016)