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Sunday February 25th, 2024

SriLankan Airlines Catering makes Rs3.9bn net profit

ECONOMYNEXT – SriLankan Airlines’ catering unit, which has a monopoly at the island’s two international airports, made a net profit of 3.9 billion rupees in the financial year ending 31 March 2018, up four percent from a year ago.

A company statement said the “somewhat low growth in net profit” at SriLankan Catering was a result of a drop in exchange gains which fell to 202 million rupees this year from 833 million rupees in the previous financial year.

“The company has proven itself to be a perfect example of consistency and has crossed the Rs. 2 billion mark in profits every year during the last five years,” said Ranjit Fernando, chairman of SriLankan Catering who is also the Chairman of SriLankan Airlines.

The national carrier’s catering arm provides about 24,000 inflight meals a day to airlines that operate from the Bandaranaike International Airport (BIA) at Katunayake and Mattala Rajapaksa International Airport (MRIA) in Hambantota.

These include airlines such as Emirates Airline, Qatar Airways, Malaysia Airlines, Air China, Cathay Pacific Airways, China Eastern Airlines, China Southern Airlines, Korean Air, Turkish Airlines and SriLankan Airlines.

SriLankan Catering also operates restaurants and lounges at BIA and MRIA, manages the transit hotel at BIA, and operates an industrial laundry service.

The statement said that according to unaudited results, the firm’s  operating profits grew 26 percent to 3.81 billion rupees during the period.

Its operating profit ratio, percentage of profit made from operations, before subtracting taxes and interest charges, improved to 44 percent from 42 percent the year before.
(COLOMBO, 10 September, 2018)
 

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Sri Lanka could get US$500mn from ADB in 2024

ECONOMYNEXT – Sri Lanka could receive 500 million US dollars in support from the Asian Development Bank in 2024 based on the progress of policy reforms, Country Director of the Manila-based lender, Takafumi Kadono said.

The ADB expect to go to its Board around March or April with a 100 million US dollar power sector loan subject to the cabinet of ministers of approving a revised electricity reform bill.

A 100 million dollar loan to support SMEs could also be approved in the early part of the year. Sri Lanka is setting up a credit guarantee agency to support credit for small firms.

A 200 million dollar credit for financial sector was also slated for the year. The ADB gave the first tranche of the financial sector policy loan late last year.

A $100mn for the water sector could also be approved later in the year.

Sri Lanka could get around 200 to 300 million US dollars a year at the lowest rate, or concessional ordinary capital resources (COL) rate of 2 percent.

The balance of would come at the ordinary capital resource rate linked to SOFR.

The ADB has also started work on a ‘Country Partnership Strategy’ for Sri Lanka covering the 2024-2028 period, Kadodo said. (Colombo/Feb25/2024)

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Sri Lanka’s multi-aligned foreign policy based on friendship: Min

ECONOMYNEXT – Sri Lanka’s multi-aligned foreign policy is based on friendship to all and enmity to none, its Minister of Foreign Affairs has said.

“Non-alignment means not becoming a bystander. Non-alignment means you are not forced or coerced into a camp to take sovereign decisions… you make your own choices. Whether it is commercial, security, regional or otherwise,” M U M Ali Sabry said on X (twitter).

“I have repeatedly stressed that sovereignty is the right to have your own opinion on what’s right and wrong, and to stand by your principles. Our multi-aligned foreign policy is based on friendship to all and enmity to none,” Sabry was quoting from his speech at the Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI) Foreign Policy Forum, on the theme ‘Reassessing Non-Alignment in a Polarised World’.

Sri Lanka is one of the founding members of the Non-Aligned Movement.

The strategically located island has been increasingly walking a fine line between opposing global factions as it seeks to come out of a financial crisis. (Colombo/Feb24/2024)

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Sri Lanka’s Commercial Bank Dec net down on tax provisions

ECONOMYNEXT – Sri Lanka’s Commercial Bank of Ceylon reported profits of 6.9 billion rupees from the December 2023 quarter down 21 percent, despite an improvement in net interest income and lower provisions, amid a change in tax provisions.

Pre-tax profits were 8.89 billion rupees up from 2.4 billion rupees. There was a 6.4 billion tax reversal last year compared to a 1.7 billion rupee tax charge this year.

Commercial Bank reported earnings of 5.26 rupees for the quarter. For the year to December 2023 earnings were 16.07 rupees per share on total profits of 21.1 billion rupees, down 11.3 percent.

Net fee and commission income was down 1.2 percent to 6.1 billion rupees.

Net interest income went up 16.8 percent to 25.5 billion rupees, with interest income rising marginally by 1.3 percent to 73.0 billion rupees and interest expense falling 5.45 percent to 47.5 billion rupees.

Loans and advances to customers grew 4.06 percent to 1.17 billion rupees in the year to December. Debt and other financial instruments fell 10.5 percent to 649 billion rupees.

Financial assets measured and fair value through other comprehensive income was at 287 billion rupees, up from 117 billion rupees.

Impairment charges were 13.1 billion rupees, down from 19.6 billion rupees last year.

Gross assets were up 6.45 percent to 2.36 billion rupees. Net assets were up 5.51 percent to 214 billion rupees. (Colombo/Feb24/2024)

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