ECONOMYNEXT — Sri Lanka conglomerate John Keells Holdings PLC (JKH) recorded a net profit of Rs. 5.17 billion for the quarter ended September 30, surging 213 percent from Rs. 1.65 billion in the same quarter last year, interim accounts showed.

The group posted basic earnings per share of Rs. 0.29 for the September quarter, up from Rs. 0.09 a year earlier.

Quarterly revenue contracted marginally by 2 percent to Rs. 142.1 billion from Rs. 144.8 billion.

Top-line moderation was primarily driven by normalized vehicle sales at its New Energy Vehicle venture, John Keells CG Auto (JKCG).

JKCG had enjoyed an exceptionally high base of pent-up demand following the resumption of vehicle imports in 2025, alongside a temporary surcharge on motor vehicle duties and tightened vehicle financing limits introduced in May 2026.

Retail served as the primary top-line engine, bringing in Rs. 74.3 billion or over half of group turnover, anchored by 13 percent same-store sales growth across Keells supermarkets.

Transportation also helped the profit growth with the sector’s revenue jumped 89.8 percent to Rs. 25.9 billion as Lanka Marine Services expanded marine bunker volumes by 31 percent amid Middle Eastern shipping diversions.

Consumer Foods added Rs. 13.7 billion in revenue on strong beverage and confectionery volumes, while property revenue rose over 145 percent to Rs. 4.7 billion on apartment and office floor handovers at Cinnamon Life and TRI-ZEN. Together, retail and transportation accounted for over 69 percent of total group collections.

Cost of sales decreased 2.2 percent to Rs. 115.8 billion, leaving gross profit virtually unchanged at Rs. 26.2 billion.

Results from operating activities dropped 32.0 percent to Rs. 7.2 billion as administrative expenses rose 16.1 percent to Rs. 12.7 billion rupees.

Other operating expenses rose 36.8 percent to Rs. 2.93 billion, reflecting network expansion, store additions, and broader inflationary and energy cost pressures.

However, finance costs declined 17.5 percent to Rs. 5.1 billion, aided by loan refinancing and de-leveraging at City of Dreams Sri Lanka.

Group results recorded a net exchange gain of Rs. 361.8 million rupees (compared to an exchange loss of Rs. 404.8 million rupees previously), supported by Sri Lankan rupee appreciation on foreign currency loan facilities.

Share of results from equity-accounted investers surged 84.9 percent to Rs. 6 billion, bolstered by Nations Trust Bank — which recognized a one-off tax credit from onboarding HSBC Sri Lanka’s retail banking portfolio — and rapid volume scale at the Colombo West International Terminal (CWIT).

Transportation EBITDA jumped 153.1 percent to Rs. 4.89 billion on 31 percent volume expansion and stronger bunker margins at Lanka Marine Services.

Property EBITDA climbed over five fold to Rs. 1.11 billion from revenue recognition at Cinnamon Life and TRI-ZEN.

Leisure showed narrowing pre-tax losses at City of Dreams Sri Lanka, though Maldivian resorts and city hotels felt the pinch of higher fuel costs and Middle Eastern air travel disruptions.

Income tax expense fell 40.8 percent to Rs. 2.13 billion, leaving group profit for the period at Rs. 5.82 billion, up 38.6 percent.

Total assets stood at Rs. 943.4 billion as of September 30, with net asset value per share at Rs. 23.60.

The board declared a first interim dividend of Rs. 0.10 per share payable by December 2, 2026.

John Keells Holdings’ shares closed at 18.80 rupees at the end of September. The share is currently trading around 17.70–17.90 rupees. (Colombo/Nov03/2026)

ECONOMYNEXT – Sri Lanka’s listed private lender Seylan Bank expects a strong 18 percent growth in 2018 provided the current interest rates remain steady, its Chief Executive Officer Ramesh Jayasekara said on Tuesday (03).

Announcing the milestone of achieving Rs. 1 trillion asset base by end September this year, Jayasekara said the Bank sees challenges from geopolitics and climate change for the strong growth it has projected.

“So, looking ahead, I would say even in 2027, we are expecting strong growth. The growth might be around 18% we expect in 2027,” he told reporters at a media round table.

“And if interest rates remain at these levels, we see another strong year for the sector. So again, we are bullish into 2027 as well. We feel that growth momentum will remain in the industry, and there will be appetite.”

The Bank posted a net profit growth of 9.5 percent to Rs. 9.1 billion in the first nine months of this year compared to the same period in 2025.

However, Jayasekara cautioned over possible risks next year.

The key challenges I think are geopolitics. I would say climate risk and geopolitics is something that we can’t control. I mean, if the war erupts again or if Sri Lanka goes through a big drought, those are things out of our control,” he said when asked the key challenges for the next year.

“We need to be prepared. Those two are big unknowns that we need to factor into strategy. And as long as you factor that in and have kept sufficient room for that, that’s okay, because I see the country growing at least 4% plus.”

He said the credit growth has been strong this year though he expects it to be slower next year given tight monetary policy.

“We are still bullish, though there could be some head winds.”

Sri Lanka’s Central Bank has raised the key policy rates by 100 basis points in May this year while the country is expected to see a sluggish growth owing to higher inflation and expensive fuel following the Middle Eastern conflict.

Jayasekara said the monetary tightening has already slowed down the credit growth in August and September.

The Bank saw 14.8 percent growth in loans and advances and 10,2 percent increase in deposits in the first nine months of this year.

Jayasekara  said digital penetration has risen from 16% in 2023 to over 52% with more than half of the customers are connected via internet banking or the mobile apps.

 The bank has introduced rapid digital services such as “Loan on FD” (loans against fixed deposits), pawning top-ups/part-settlements, easy payment plan conversions, limit enhancements, and advance salary requests—all accessible in just a few clicks.

The CEO said the Bank reduced turnaround times for loans to Small and Medium Enterprises (SME), which make up about 23% of their book, by providing a definitive decision on SME loan applications within 72 hours (3 days).

It is also in the process of launching a dedicated push into private banking and wealth management early next year, including opening two specialized private banking centers in Colombo to capitalize on the market gap left by exiting foreign banks and growing middle-income wealth. (Colombo/November 03/2026)

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.65/70 to the US dollar spot on Tuesday, weaker from 332.55/65 the previous day, while bond yields closed steady to lower on select tenors, dealers said.

A bond maturing on 15.09.2029 closed at 11.10/25 percent, up from 11.10/20 percent.

A bond maturing on 01.08.2030 closed flat at 11.55/60 percent.

A bond maturing on 01.02.2031 closed at 11.67/73 percent, up from 11.88/92 percent.

A bond maturing on 01.06.2033 closed flat at 12.30/40 percent.

A bond maturing on 15.10.2034 closed at 12.50/55 percent, down from 12.58/63 percent.

A bond maturing on 15.08.2036 closed at 12.80/85 percent, down from 12.85/92 percent.

The rupee had depreciated 6.8 percent against the US dollar by the end of October on a year-to-date basis, the Central Bank said. (Colombo/Nov3/2026)

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Tuesday, CSE data showed, with the benchmark All Share Price Index moving up 0.20 percent.

The ASPI was up 40.09 points at 20,119.64, while the more liquid S&P SL20 was up 0.36 percent, or 20.71 points, at 5,722.57.

Positive contributors to the ASPI were Dialog Axiata (up 1.39 percent at 43.90 rupees), Overseas Realty (Ceylon) (up 1.67 percent at 48.60 rupees), Hayleys (up 0.57 percent at 219.25 rupees), Softlogic Capital (up 7.87 percent at 9.60 rupees), and Haycarb (up 2.35 percent at 206.75 rupees).

Carson Cumberbatch (down 4.42 percent at 654.50 rupees), Citizens Development Business Finance (down 7.34 percent at 30.30 rupees), Ambeon Holdings (down 4.35 percent at 33.00 rupees), LOLC Holdings (down 1.25 percent at 375.00 rupees), and Access Engineering (down 1.95 percent at 75.30 rupees) were top negative contributors.

Market turnover was 1.52 billion rupees. The S&P/CSE Transportation Industry Group Index led turnover with 250.55 million rupees.

“There was a crossing in Overseas Realty of 182 million rupees and a small crossing for John Keells of 36 million rupees,” Raynal Wickremeratne, Head of Research and Strategy at NDB Securities, said. “There was also some good momentum with PickMe, where 245 million rupees got traded,”

Meanwhile, visitor numbers into Sri Lanka rose 2.1 percent in October 2026 compared to a year ago, official data showed. Total arrivals were 168,625 compared to 165,193 in the same month last year. India continued to be the top source market with 62,211 visitors, making up 37 percent of total arrivals, followed by 12,402 visitors from the UK and 11,190 from China. There have been 1,862,304 visitors to the island so far this year. (Colombo/Nov03/2026)

ECONOMYNEXT — Sri Lanka’s Cabinet has approved awarding a multi-currency contract to a joint venture between Ceylex Engineering (Pvt) Ltd and Xingneng Electric Power Construction Co Ltd to upgrade the Kolonnawa Grid Substation for the island’s first utility-scale battery energy storage facility.

The procurement covers the development of a 100 MW/100 MWh Battery Energy Storage System (BESS) designed to stabilize the power grid as more renewable power is integrated.

“In alignment with long-term electricity generation expansion plans, it is proposed to establish Sri Lanka’s first utility-scale Battery Energy Storage System (BESS) at the Kolonnawa Grid Substation,” minister Nalinda Jayatissa said.

The total contract value, excluding taxes, is set at 1.27 million US dollars, 2.61 million euros, and 555.13 million Sri Lankan rupees.

The project forms a key part of the Asian Development Bank-funded plan to strengthen the national power network and add more renewable energy to the island’s electricity mix.

Initial approval to upgrade the substation under a renewable integration project funded by the Asian Development Bank (ADB) was granted on September 2, 2024.

Following that decision, the government invited international competitive bids to select a contractor for the project, drawing interest from four international bidders.

A High-Level Procurement Committee subsequently evaluated the submissions and recommended the Ceylex-Xingneng consortium as the substantially responsive bidder. (Colombo/Nov03/2026)

ECONOMYNEXT — Sri Lanka’s Cabinet has approved awarding the contract for the Sampur–Kappalthurai transmission project to a joint venture comprising Ceylex Engineering and China’s Xingneng Electric Power Construction.

The contract was awarded for a total sum of USD 4.15 million, EUR 0.78 million, and LKR 1,096.08 million, excluding applicable taxes.

The contract covers key grid developments in the eastern region under the Asian Infrastructure Investment Bank (AIIB)-funded project.

Cabinet Spokesman Nalinda Jayatissa said the initiative forms a key component of broader grid improvement plans:

“This initiative is part of the Sampur – Kappalthurai Transmission Infrastructure Development Project, which is being implemented with financial assistance from the Asian Infrastructure Investment Bank (AIIB) to strengthen the transmission system and ensure optimal efficiency of the power grid,” Jayatissa said.

The project includes building a new 220(132)/33 kV solar power grid substation in Sampur and expanding the existing 220(132)/33 kV solar power grid substation in Kappalthurai, which received initial cabinet approval on December 15, 2025.

The joint venture emerged as the lowest substantially responsive bidder following an international competitive bidding process that drew six bids. (Colombo/Nov03/2026)