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Thursday June 20th, 2024

Warehousing profits help Sri Lanka’s Asia Siyaka offset brokerage decline

Fifty percent of the man days lost to strikes were from the plantation industry.

ECONOMYNEXT – Improved use of its warehousing, which was doubled in recent years, has helped Sri Lanka’s Asia Siyaka Commodities offset a fall in its tea brokering business last year.

“In recent years, we have sought to diversify our earnings streams in order to reduce exposure to relatively volatile broking business,” managing director and chief executive Anil Cooke said.

The company has focussed on driving growth in its warehousing operations with initiatives launched to optimise warehousing capacity including broadening the customer base and increasing market penetration by getting new customers, he said.

As a result, capacity use at the warehouse increased to 93.5 percent and revenue generated rose to 34 percent of consolidated revenue in 2018-19, compared to 28 percent the previous year.

Asia Siyaka Commodities reported net profit rose 16 percent to 113 million rupees in the 2018-19 financial year although total sales fell 1.8 percent to 771 million rupees

Cooke told shareholders in the firm’s annual report that the decline in tea prices and export volumes had a direct impact on its broking business, with revenue declining by 12 percent to 269 million rupees.

Brokerage income fell to 35 percent of total revenue, from 39 percent the year before.

Sales generated from the group’s warehousing operation increased by 13 percent to 247 million rupees during the year supported by better utilisation levels as the group sought to diversify its customer base.

“Following the commissioning of our second warehousing facility two years ago, the group has successfully doubled its storage capacity and positioned itself as a dominant force in this industry space,” Cooke said.

The group’s consolidated operating profit contracted marginally by two percent to 296 million rupees reflecting the decline in revenue.

Brokerage business generated an operating profit of 230 million rupees, down six percent while earnings before interest and tax from warehousing grew by eight percent to reach 94 million rupees.
(COLOMBO, 06 Sep, 2019)

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Sri Lanka rupee closes stronger at 305.10/30 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed stronger ahead of the long weekend at 305.10/30 to the US dollar on Thursday, up from 305.40/55 to the US dollar Wednesday, dealers said, while some bond yields edged up.

A bond maturing on 15.12.2026 closed at 10.45/80 percent, up from 10.35/75 percent.

A bond maturing on 01.07.2028 closed at 11.20/45 percent.

A bond maturing on 15.09.2029 closed at 12.00/15 percent, up from 11.95/12.35 percent.

A bond maturing on 01.12.2031 closed at 12.05/25 percent.
(Colombo/Jun20/2024)

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Sri Lanka stocks close up, JKH trade pushes turnover

ECONOMYNEXT – The Colombo Stock Exchange closed up on Thursday, data on its site showed.

The broader All Share Index closed up 0.19 percent, or 23.11 points, at 12,249; while the more liquid S&P SL20 Index closed up 0.15 percent, or 5.33 points, at 3,610.

Turnover was 2 billion. Nearly half of this (Rs980mn) came from a crossing on John Keells Holdings Plc. The share closed down at 202.00.

“There were several crossings today which pushed turnover,” market participants said.

“Institutions and high net-worth activity drove the market, while the retail investors we feel are still about uncertain and adopting a wait-and-see approach.”

Melstacorp Plc was among the companies that saw active volumes (Rs194mn) in the day. The share closed up at 87.10.

Top contributors to the index included TeeJay Lanka Plc (up at 41.70), Sampath Bank Plc (up at 79.50), Hatton National Bank Plc (down at 201.00). Hayleys Plc (up at 105.00) and its subsidiary Hayleys Fabric Plc (up at 46.60) were also positive contributors. (Colombo/Jun20/2024)

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Sri Lanka, India launch maritime rescue coordination centre

ECONOMYNEXT – Sri Lanka’s president Ranil Wickremesinghe and visiting Indian External Affairs Minister S Jaishankar marked the formal commissioning of a Maritime Rescue Coordination Centre in the island nation on Thursday.

The MRCC was constructed with a 6 million dollar grant from India.

It includes a centre at Navy headquarters in Colombo, a sub-centre in Hambantota and unmanned installations at Galle, Arugambay, Batticaloa, Trincomalee, Kallarawa, Point Pedro and Mollikulam.

Wickremesinghe and Jaishankar also launched, virtually, 106 houses in Kandy, Nuwara Eliya and Matale under the Indian Housing Project. 24 houses in each model village were handed over.

Jaishankar called on President Ranil Wickremesinghe at the President’s House earlier in the day for a one-on-one meeting, the president’s media division said.

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Indian FM Jaishankar in Sri Lanka to discuss partnerships amid project delays, ahead of polls

Jaishankar’s one-day official visit to Colombo was to discuss “wide-ranging issues of the partnership”, India said, amid delays of some key Indian projects ahead of a presidential poll in Sri Lanka. (Colombo/Jun20/204)

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