Sri Lanka’s Melstacorp plans to boost, non-beverage sectors
ECONOMYNEXT – Sri Lanka’s Melstacorp Limited, a diversified group which controls Sri Lanka’s largest hard alcohol maker said it is planning to boost non-beverage sectors including tourism, finance and power sectors.
Managing Director Amitha Gooneratne said there was a lot more potential in leisure to which the group was already exposed through Aitken Spence and also had direct involvement.
The firm would also saw room for growth in power and financial sectors. In the finance sector it has a finance company and insurance unit.
The group wanted a more balanced revenue stream, Gooneratne said.
In the year to March 2016, Melstacorp had revenues of 17 billion rupees with turnover taxes and 13.0 billion in net revenues. Of that 7.0 billion was in beverages.
Melstacorp is now the holding company of Distilleries Corporation of Sri Lanka, following a share swap.
Former Distilleries stock holders were issued Melstacorp shares, which commenced trading on December 30.
The stock fell as low as 59 rupees in intra-day trading down from an indicative introductory (reference) price of 69 rupees.
Gooneratne said Melstacorp was also increasing operating efficiencies and focussing on fourth generation LTE services at Lanka Bell, a struggling wireless fixed access unit.
The firm was badly hit by tax increases on telecom services, he said. (Colombo/Dec30/2016)