Markets

Sri Lanka June quarter listed company profits flat, prospects seen gloomy

Monday October 1, 2018 4:15 pm

ECONOMYNEXT – Import restrictions on vehicles and electronic appliances and low wage and consumption growth are expected to impact earnings of listed companies which grew 1 percent from a year earlier to 49.72 billion rupees in the June 2018 quarter, LOLC Securities said.

Colombo’s All Share index fell 8.19 percent, down 552 points from a year ago to 6,195 points at end June 2018. During this period Sri Lanka’s economy had grown 3.7 percent.

Financial services sector contributed 56 percent of total market earnings of 196 stocks in the June 2018 quarter, which were analysed by LOLC Securities, followed by 18 percent from beverages, food and tobacco, and 13 percent from diversified.

Banking, finance and insurance sector net earnings grew 12 percent to 27.61 billion rupees, followed by beverages, food and tobacco up 32 percent to 8.84 billion rupees.

-Financial Services-

"Banks showed a topline growth of 21 percent to 65.41 billion rupees in the June 2018 quarter on increased private sector credit and continuous growth in net fee and commission incomes," LOLC Securities said.

Pan Asia Bank reported the highest growth in earnings at 92 percent due to a tax reversal in the quarter.

Net incomes were seen improving for NDB (up 70 percent), HNB (up 32 percent) and Commercial Bank (up 10 percent).

"Bank provisioning increased significantly with individual and collective categories growing 133 percent and 51 percent respectively," LOLC Securities said.

Non-bank finance companies reported earnings growth of 21 percent to 9.80 billion rupees led by LOLC Finance, HDFC and Mercantile Investments and Finance.

Currency depreciation, higher vehicle import taxes and 100 percent margin deposit for vehicle imports will impact sector earnings, LOLC Securities said.

Insurance sector earnings grew a marginal 1 percent to 1.79 billion rupees in the June 2018 quarter on strong earnings growth by Union Assurance (349 percent) and AIA Insurance (257 percent).

-Consumption-

In the beverages, food and tobacco sector, earnings at Ceylon Tobacco had grown 47 percent to 4.36 billion rupees and Lion Brewery reported earnings growth of 134 percent 740 million rupees.

"Going forward the sector will be challenged by slow real wage and disposable income growth, inflationary pressure from currency depreciation and colourless consumer confidence," LOLC Securities said.

Power and energy sector earnings were up 265 percent to 620 million rupees on improving weather conditions and improving earnings at Pan Asian Power and Vidullanka PLC.

Telecommunication sector earnings grew 33 percent to 4.51 billion rupees on data and digital offerings with Sri Lanka Telecom earnings growing 58 percent from a year earlier to 1.66 billion rupees and Dialog reporting 21 percent growth to 2.85 billion rupees.

-Diversified sector-

The diversified sector saw earnings fall 20 percent to 6.25 billion rupees due to lacklustre earnings by Aitken Spence (down 41 percent), John Keells Holdings (down 23 percent) and Melstacorp (down 31 percent), LOLC Securities said.

Aitken Spence was impacted by tourism related invested as was John Keells Holdings which was also hit by weak FMCG and retail earnings on lower consumption. Melstacorp earnings were impacted by consumers switching to beer from hard liquor.

Earnings at Carson Cumberbatch had grown 26 percent followed by 21 percent at Expolanka and 14 percent at Softlogic Holdings.

-Hotels-

Hotel stocks saw earnings fall 117 percent from a year earlier to a loss of 1.13 billion rupees in the June 2018 quarter despite tourist arrivals to the country growing 12.5 percent during the period, due to competition from smaller properties.

"Removal of the minimum room price by Sri Lanka Tourism Development Authority will further exacerbate price competition in the industry affecting upper tier hotel operators," LOLC Securities said.

-Healthcare-

Healthcare stocks earnings fell 15 percent to 710 million rupees with Asiri Hospital Holdings gaining just 2 percent to 390 million rupees.

"Healthcare being a defensive industry is expected to revert back to improved performances in near future.

"In the medium to long term, growth impetus is backed by rising non-communicable diseases and an aging population.

"Healthcare insurance has recorded an annual growth rate of 30 percent in the last five years reflecting the growth prospects of the industry," LOLC Securities said.

-Plantations and others-

Plantation companies reported an 81 percent decline in earnings to 310 million rupees with revenue falling 22 percent to 13.83 billion rupees from a year earlier in the June 2018 quarter due to bad weather and falling global prices for commodities.

Combined earnings of manufacturing stocks fell 49 percent from a year earlier to 1.53 billion rupees while Motor Sector earnings fell 96 percent to 20 million rupees.

Construction sector earnings fell 372 percent to 350 million rupees due to a slowdown in revenue and income tax rate increasing from 12 percent to 28 percent. (COLOMBO, 01 October 2018)

FILED UNDER: Sri Lanka

Uncategorized

Sri Lanka sells extra Rs8bn Treasury bills after auction

Friday September 11, 2026 12:44 pm

ECONOMYNEXT – Sri Lanka has sold 8,000 million rupees of treasury bills offered on tap at an average rate of 9.24 percent, the public debt management office said, bringing the total of bills sold this week to 88 billion rupees.

Total market subscription was 8,000 million rupees.

The debt office sold a 6-month bill at 9.24 percent.

On Wednesday (9) the debt office raised 80 billion rupees of 3, 6 and 12 month bills.

The 3-month and 6-month bills were later offered on tap. (Colombo/Sep11/2026)

Culture

17,000 applications flood Sri Lanka ministry for 500 state sector jobs

Friday September 11, 2026 12:00 pm

ECONOMYNEXT – Sri Lanka’s Ministry of Buddhasasana, Religious and Cultural Affairs had called for applications to fill 500 vacancies in 25 state institutions under it and received 17,000 applications, Minister Hiniduma Sunil Senevi told Parliament.

The public sector recruitment drive was to resolve labour shortages across the state institutions, he said, including the Central Cultural Fund and the Department of Archaeology.

“All 25 institutions under my ministry, including the Fund and the Department of Archaeology, are places facing severe vacancies,” Senevi said.

Recruitment is proceeding rapidly, with a large round of appointments ranging from executive grades downward recently conducted for both institutions.

The lack of recruitment over an extended period had created critical operational gaps across the cultural sector, he claimed such as a shortage of 850 watchmen in the Department of Archaeology.

Addressing staffing concerns raised regarding locations such as Gal Vihara, Senevi said the Archaeology Department mainly needs watchmen and work assistants to maintain operations.

“The closing date to recruit 500 work assistants was just the other day. Believe it or not, over 17,000 applications have been received,” Senavi said. (Colombo/Sep11/2026)

Fiscal

Sri Lanka officials undergo IMF-backed debt sustainability training

Friday September 11, 2026 11:36 am

ECONOMYNEXT – A 5-day training course on the Sovereign Risk and Debt Sustainability Framework (SRDSF), held in Colombo, focused on developing the technical skills of Sri Lankan officials and international participants.

The IMF South Asia Regional Training and Technical Assistance Center (SARTTAC) organized the training on the SRDSF at the Taj Samudra from September 7 to 11, as part of the IMF’s capacity development program.

The event brings together international participants alongside officials from several Sri Lankan institutions, including the Public Debt Management Office (PDMO) and the Central Bank of Sri Lanka.

“The training focuses on enhancing participants’ technical skills to assess sovereign risks, evaluate debt sustainability, and measure the impact of macroeconomic and financing shocks on public debt, while fostering knowledge sharing and the exchange of international best practices,” the Ministry of Finance said.

Director General of Public Debt Management Office, Sri Lanka highlighted the importance of robust analytical capabilities in guiding sound, evidence-based public debt decisions.

“The training offers a vital opportunity for local officials, particularly within the PDMO to adopt international approaches to debt sustainability analysis and Sovereign risk assessment.”

The expertise gained through the training will strengthen Sri Lanka’s ability to identify and manage emerging sovereign risks within a sustainable financial framework, the ministry said. (Colombo/Sep11/2026)

Markets

Sri Lanka stocks trade down on Friday, Melstacorp and Sampath Bank drag

Friday September 11, 2026 11:23 am

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange indices were trading down on Friday morning, CSE data showed, with the benchmark All Share Price Index moving down 0.23 percent.

The ASPI was down 48.25 points at 21,309.49, while the more liquid S&P SL20 was down 0.03 percent, or 1.56 points, at 6,002.36.

Positive contributors to the ASPI were ACL Cables (up 0.74 percent at 95.60 rupees), Industrial Asphalts (Ceylon) (up 16.67 percent at 0.70 rupees), and RIL Property (up 0.83 percent at 24.30 rupees).

Melstacorp (down 1.08 percent at 184.00 rupees), Sampath Bank (down 0.36 percent at 139.00 rupees), Royal Ceramics Lanka (down 1.44 percent at 47.80 rupees), and Ceylon Tobacco Company (down 0.54 percent at 1,780.00 rupees) were top negative contributors.

Market turnover was 221.65 million rupees. Capital goods led turnover with 89.85 million rupees.

Ramboda Falls announced an interim dividend of 0.50 rupees per share for the financial year 2026/2027, with the XD date set for September 21, 2026, and payment dispatch scheduled for October 8, 2026.

Shares of Ramboda Falls were trading up 1.27 percent at 24.00 rupees. (Colombo/September11/2026)

General Economy

Sri Lanka economic summit to focus on building shock-resilient economy

Friday September 11, 2026 10:02 am

ECONOMYNEXT – The Sri Lanka Economic & Investment Summit 2026, SLEIS 2026, next month will focus on how the country can maintain its growth momentum while preparing for the challenges ahead, organizers said.

Policymakers, business leaders and international experts will meet at the event, organised by The Ceylon Chamber of Commerce on October 12-13, to examine how Sri Lanka can build greater resilience.

Titled “Beyond Crisis Management: Building a Shock-Resilient Sri Lankan Economy,” the session will examine the vulnerabilities exposed by recent economic and external shocks and consider what needs to be put in place to ensure that future disruptions do not repeatedly set back economic progress.

Lilia Aleksanyan, Senior Country Economist for Sri Lanka – Asian Development Bank, will deliver the keynote address.

A panel discussion will follow featuring Chandranath Amarasekara, Senior Deputy Governor – Central Bank of Sri Lanka, Sabrina Esufally, Executive Director – Hemas Holdings, and Roshan Perera, Consultant – Centre for Poverty Analysis and Former Director – CBSL.

The discussion will be moderated by Dhananath Fernando, Chief Executive Officer -Advocata Institute.

The session will consider how Sri Lanka can strengthen macroeconomic stability, safeguard livelihoods and improve the resilience of businesses and key economic institutions.

It will also examine the role of international partnerships, investment, innovation and business leadership in building an economy that can adapt to changing conditions without losing sight of longer-term development goals.

The discussion will consider what needs to be put in place beforehand, including stronger institutions, sound economic policies, greater diversification, resilient businesses and the capacity to respond quickly when external or domestic pressures emerge. (Colombo/Sep11/2026)

Banking

Sri Lanka’s Sampath Bank appoints Dilip de S Wijeyeratne deputy chairman

Friday September 11, 2026 9:40 am

ECONOMYNEXT – Sri Lanka lender Sampath Bank said it had appointed Dilip de S Wijeyeratne as deputy chairman, effective September 10.

Wijeyeratne has experience across banking, finance, risk management and compliance, investment banking and treasury, complemented by a strong understanding of corporate governance, strategic planning and financial markets, the bank said.

This will support the bank’s focus on advancing data-driven decision-making and the intelligent application of artificial intelligence across the organisation.

“Mr. Wijeyeratne’s experience and strategic perspective will complement the Bank’s efforts to harness data and emerging technologies, including AI, to sharpen decision-making, enhance operational effectiveness and create enduring value for customers, shareholders, employees and other stakeholders.”

Wijeyeratne’s association with Sampath Bank spans nearly eight years.

He joined the bank as a non-independent, non-executive director in November 2018 and was appointed an independent director in August 2019.

He served as senior independent director from May 2022 and continued as an independent, non-executive director from June 2026.

A senior finance and banking professional and principal consultant, Wijeyeratne provides advisory services to organisations across West Asia, Sri Lanka and Australia.

His career includes senior roles with HSBC Group in Bahrain, where he held responsibility for finance and operations, global markets and treasury, corporate treasury sales and asset and liability management.

He subsequently moved into entrepreneurship and advisory services, providing financial and strategic consultancy to private and public sector organisations.

Wijeyeratne serves as a director of Singer (Sri Lanka) and Hayleys Fibre, and as a director of Janashakthi Insurance.

He is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka, a Fellow Member of the Chartered Institute of Management Accountants, UK, and a Graduate Member of the Australian Institute of Company Directors.
(Colombo/Sep11/2026)