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Friday June 14th, 2024

Sri Lanka’s Ceylon Grain Elevators net up in December on tighter costs, lower tax bill

ECONOMYNEXT – Profits at Ceylon Grain Elevators, a Sri Lanka unit of Singapore based Prima group with interests in feed milling and poultry, grew 26 percent in the December 2019 quarter from a year earlier amid a lower tax bill, and the firm said stable exchange rates helped contain costs.

The group reported earnings of 5.07 rupees per share for the quarter. In the year to December 2019, Ceylon Grain Elevators reported earnings of 14.99 rupees per share, on total profits of 897 million rupees, which were marginally up from 886 million rupees.

Revenues grew 4 percent to 4,298 million rupees in the quarter, while costs fell 6 percent to 3,819 million rupees and gross profits grew 3 percent to 478.9 million rupees.

“Consistent feed quality, promotional activities, customer-centric product offerings, and good relationship with key customers helped in its revenue growth, against intense price competition, the glut in the chicken market and lower economic activities,” Executive Director and Chief Executive Officer Cheng Chih Kwong, Primus told shareholders.

“The performance of the Group had sustained during the year under review, as a result of continuous improvements in operational efficiency, rigid control over overheads and the more stabilised exchange rates.”

Sri Lanka’s soft-peg with the US dollar collapsed in 2018 from 153 to 182 to the US dollar amid liquidity injections from the central bank to enforce rate cuts,

In addition to the currency collapse the poultry industry, was also hit by a collapse in tourism in April, though arrivals had recovered to almost pre-crisis levels by December.

Three Acre Farms, the groups hatchery and poultry unit said demand for chicken was still weak, but the egg and export market for parent stock was strong.

Ceylon Grain Elevators group pre-tax profits were up 3 percent to 477 million rupees, but after tax profits grew 19 percent as income taxes fell 51 percent to 48.4 million rupees.

Sri Lanka’s new administration also cut income and value added taxes from January, which were not included in the December quarter. The taxes have not been passed in parliament.

“The amendments to the Inland Revenue Act No. 24 of 2017, which were published by the Department of Inland Revenue on 12 February 2020 are yet to be approved by the parliament,” the firm said.

“Since, these amendments are not substantively enacted at the end of the reporting period, the Group has adopted the tax rates prevailed as at 31 December 2019 in calculating taxes.

“The impact of the above amendments has not been quantified yet by the Group due to lack of statutory definitions.

But the chief executive said tax would benefit the industry.

“The proposed tax reforms in the country have been well received by the livestock industry and have improved consumer sentiments which will spillover in to the year ahead,” Primus said. (Colombo/Feb26/2020 – corrected opening paragraph)

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Sri Lanka opposition leader proposes Grama Rajya system in addition to 13A

Opposition leader Sajith Premadasa (r) – File photo

ECONOMYNEXT — Sri Lanka opposition leader Sajith Premadasa has proposed devolving power to the village level through a Grama Rajya system in addition to implementing the 13th amendment to the constitution.

Speaking at an event in Jaffna on on Wednesday June 12, Premadasa said all provinces will benefit from the 13th amendment.

“Whatever one’s ethnicity, religion, status or region, this country has citizens of equal level. They’re all Sri Lankan citizens.

“There is no division or grouping.  As we give you and every other province what you should be given through the 13th amendment, we must implement a Grama Rajya system,” Premadasa said, addressing a crowd of school children and other attendees.

Premadasa’s assurance of implementing the 13th amendment has already drawn some protest in the south.

A collective of civil society organisations held a protest outside the office of the leader of the opposition in Colombo on Thursday June 12.

Calling itself the ‘Coalition Against Partition of Sri Lanka’, the group carrying national flags marched up to the opposition leader’s office Thursday June 13 morning and demonstrated against the full implementation of the 13th amendment.

“We arrived here today to hand over a missive against devolving police powers, land powers and judicial powers. If Mr Premadasa is inside, come outside,” Jamuni Kamantha Thushara, Chairman of the Citizen’s Movement Against Fraud, Corruption, and Waste, was seen declaring at the site.

“First of all, tell us what we stand to achieve by dividing and giving away the north and east,” said another protestor, warning against bringing the 13th amendment “anywhere here (paththa palaathe)”.

A police officer at the scene the protestors that a secretary to the opposition leader was ready to accept their letter.

“In Kilonochchi, he says the 13th amendment will be implemented. The votes in the north are going to be decisive this election. To win those votes, President Ranil Wickremesinghe, Sajith and Anura Kumara Dissanayake all say they will implement the 13th. We will not allow this country to be divided into nine pieces,” said Thushara.

Ven Balangoda Kassapa Thero, who was arrested on June 06 during a protest against the new Electricity Act, was also seen at Thursday’s protest. The Buddhist monk requested for a debate with Premadasa on the matter of the 13th amendment. (Colombo/Jun12/2024)

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Sri Lanka rupee closes flat at 303.85/95 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed broadly flat at 303.85/95 to the US dollar on Thursday, from 303.80/304.00 to the dollar the previous day, dealers said. Bond yields were down.

A bond maturing on 15.12.2026 closed at 10.00/30 percent, down from 10.20/40 percent.

A bond maturing on 15.10.2027 closed at 10.60/75 percent.

A bond maturing on 01.07.2028 closed at 11.00/15 percent, down from 11.15/40 percent.

A bond maturing on 15.09.2029 closed at 11.80/85 percent.

A bond maturing on 15.05.2030 closed at 11.85/12.05 percent, down from 11.90/12.05 percent.

A bond maturing on 01.10.2032 closed stable at 11.95/12.15 percent. (Colombo/Jun13/2024)

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Sri Lanka sells Rs295bn in 2027 to 2031 bonds

ECONOMYNEXT – Sri Lanka has sold 295 billion rupees in 2027, 2029 and 2031 bonds, data from the state debt office showed.

The debt office sold an offered 60 billion rupees of 15 October 2027 at an average yield of 10.30 percent.

All offered 125 billion rupees of 15 September 2029 bonds were sold at 11.00 percent.

All 110 billion rupees offered of 01 December 2031 bonds were sold at 12.00 percent. (Colombo/May13/2024)

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