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Aitken Spence records a strong EBITDA of Rs. 30.1 billion with a growth of 30.3% for FY23

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The leading blue-chip conglomerate, Aitken Spence PLC reported an impressive EBITDA (earnings inclusive of equity accounted investees, before interest expenses, tax, depreciation, and amortization) of Rs. 30.1 billion with a growth of 30.3%, showcasing the contribution from all sectors for the year ended 2022/2023. It is noteworthy that excluding foreign exchange gains, The Group’s EBITDA recorded a growth of 77.0%.

The Group’s Profit from Operations for the year witnessed a 15.8% increase, rising from Rs. 16.4 billion to Rs. 19.0 billion. Furthermore, during the financial year that ended 31st March 2023, the Group’s Profit from Operations, excluding foreign exchange gain, recorded a substantial growth of 85.2% over the previous year.

The Group reported a profit before tax of Rs.11.2 billion which was a decline of 21.3% for the year ended 31st March 2023. This was primarily influenced by the decrease in foreign exchange gains compared to the previous year and the steep increase in interest costs due to the high interest rates that prevailed throughout the year. However, when adjusted for foreign exchange gains, profit before tax exhibited a growth of 31.9% for the year ended 31st March 2023. This adjusted measure offers a fairer assessment of performance, considering the extreme volatility of the exchange rate witnessed during the last financial year.

The Group’s strategic emphasis on geographical diversification has yielded fruitful outcomes, as evidenced by the overseas sector’s substantial contribution of over 60% to the Group’s profit before tax. During the reviewed year, the Maritime & Freight Logistics Sector emerged as the leading contributor to the Group’s profitability, accounting for 69.8%, followed by the Tourism Sector with a contribution of 20.8%, the Strategic Investments Sector with 4.8%, and the Services Sector with 4.6%. The remarkable growth of the Maritime & Freight Logistics Sector played a pivotal role in bolstering the overall performance of the Group. All five segments within this sector demonstrated their strength and resilience by making positive contributions.

Furthermore, the Group’s performance received significant boosts from segments such as apparel manufacturing and the hotels segment in the Maldives. By implementing targeted marketing strategies and making strategic adjustments, Turyaa Chennai underwent a substantial transformation in its performance, leading to the hotel achieving a profit before tax for the first time in its history.

Improved results of the Plantation segment also contributed positively towards the Group’s performance. This is despite recognising a substantial increase in deferred tax liability due to the increase in income tax rates, particularly in the plantation and hotel sectors. The excessive delays faced in the settlement of dues from the Government in the power generation segment is causing a strain on the Group’s finances with unwarranted finance cost being borne by the sector. Despite this Aitken Spence has been operating its 10MW waste-to-energy power plant based in Kerawalapitiya as halting operations would mean that the country’s Colombo District will once again be faced with a severe garbage crisis that could potentially lead to social and environmental problems.

The Group faced a significant challenge due to the fluctuation of foreign exchange rates. The profitability of the Group was adversely impacted by a considerable increase in interest expenses, which had a negative effect on capital-intensive segments like the hotels segment and the power generation segment, which heavily rely on borrowings to finance their infrastructure.

“Our foresight and insightful outlook and astute decision-making have led us to make strategic investments in foreign exchange-generating businesses. This long-term vision has proven to be remarkably advantageous during the challenging year, as these investments have played a crucial role in ensuring uninterrupted operations across all business segments within our Group. By taking a diligent approach to growth, we ensure that any expansion initiatives are well-suited to the Group and have the potential to contribute positively to the socio-economic development of our country”, commented Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director of Aitken Spence PLC.

Other key highlights during the financial year 2022-2023

Acquisition of a solar power plant, adding 10MW to the renewable energy generation capacity at an investment of Rs. 1.4 billion. Presently, the Group contributes to providing for just over 1.4% of the country’s peak energy demand with renewable energy.

Invested in a joint venture for freight forwarding in Cambodia, further expanding its geographical footprint.

Commenced construction of a 100,000 sq. ft container freight station at a cost of Rs.1.6 billion. The strategically located facility will significantly expand existing capacity to handle more cargo.

‘Diversity, Equity & Inclusion (DE&I)’ under the theme ‘Freedom to be me’ was launched during the financial year. As a progressive step in this direction, parental leave was enhanced, including the duration of maternal leave been extended to 100 days and the introduction of paternal leave.

Inculcate a culture of innovation to inspire Spensonians to unleash their capacity for innovation and creativity through various initiatives such as SpenceInnova. These ideas designed and developed have been successfully implemented in various business operations.

Voluntary endorsement of the UN Global Compact marked 20 years in May 2022.

Publicly pledged to attain net zero emission status by 2030, becoming signatories to the Science Based Targets initiative (SBTi). These endeavors exemplify the Group’s steadfast commitment to addressing climate change and integrating sustainable practices into its operations.

Listed in the Colombo Stock Exchange since 1983, Aitken Spence is anchored to a heritage of excellence spanning over 150 years and driven by a team of more than 13,000 across 16 industries in 9 countries: Sri Lanka, Maldives, Fiji, India, Oman, Myanmar, Mozambique, Bangladesh and Cambodia.



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Cost-effective clearance of goods across borders to determine worth of Customs Paperless Declaration

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Containers held up at the Port of Colombo

By Ifham Nizam

The introduction of the Customs Paperless Declaration from October 1 could mark an important step in Sri Lanka’s efforts to modernise trade, but its real value will depend on whether it reduces the time and cost of moving goods through the country’s borders, Customs House Agents & Traders Association President Mohamed Niyas said.

Niyas warned that digitising Customs declarations alone would not necessarily translate into faster cargo clearance or lower costs for businesses.

‘Expecting a dramatic improvement in clearance speed under the present conditions is like expecting Ferrari performance from a Morris Minor configuration, he said.

For importers and exporters, the issue extends well beyond paperwork. Every additional hour or day that cargo remains in the clearance chain can have wider consequences for businesses, including increased port and storage-related costs, additional working-capital requirements, uncertainty over delivery schedules and disruptions to production and distribution.

Niyas said the competitiveness of Sri Lanka’s trading sector ultimately depended on how efficiently goods could move through the country’s border-clearance system.

‘The real bottleneck is not merely the absence of paper. It is the entire clearance ecosystem—the limitations of the existing ASYCUDA World system, excessive regulatory interventions by Other

Government Agencies, multiple approvals, physical examinations, manual interventions, fragmented processes and institutional constraints, he said.

He cautioned that unless these bottlenecks were addressed, there was a risk that the paperless initiative would merely digitise existing bureaucracy.

‘If these underlying constraints remain unchanged, there is a real risk that the new paperless system could become another “copy-and-paste road show”—where an old, complex clearance process is simply transferred onto a digital screen without fundamentally changing the process itself, Niyas said.

For businesses dependent on imported raw materials, machinery, components and other inputs, clearance efficiency can directly affect the wider supply chain.

Delays at the border can create uncertainty for manufacturers, distributors and retailers, while exporters can face difficulties meeting delivery schedules when imported inputs or export consignments are held up.

Niyas therefore argued that the success of the October 1 initiative should be judged by its impact on trade flows rather than by the number of declarations processed electronically.

‘Paperless does not automatically mean faster, he said. ‘Digitising a slow process does not make the process fast. It only makes the slow process digital.’

He said Sri Lanka needed to move towards what he described as “process-less Customs”—a system in which unnecessary procedures are eliminated rather than simply converted into electronic procedures.

Among the reforms he called for are simplification of Customs declarations and approval workflows, improvements to the functionality of ASYCUDA World, greater use of risk-based inspections and better integration of Other Government Agency approvals.

Niyas also called for the elimination of repetitive document submissions and physical endorsements, greater use of pre-arrival processing, sufficient capacity for digital document uploads and clearly defined service-level timelines for Customs and OGAs.

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China backs Sri Lanka’s Non-aligned stance to counter regional pressures

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Chinese Ambassador Wei Huaxiang delivering the keynote address in Colombo

By Sanath Nanayakkare

As global attention has fixed on the high-level diplomatic choreography at the United Nations General Assembly in New York, a subtler, yet profound geopolitical signal was sent from Colombo, yesterday.

In a major address marking the founding anniversary of the People’s Republic of China, newly appointed Chinese Ambassador Wei Huaxiang chose to anchor bilateral relations not just in modern trade or infrastructure, but in a shared respect for Sri Lanka’s legacy of non-aligned independence.

By explicitly invoking Sri Lanka’s foundational role in the 1976 Non-Aligned Summit, Beijing was doing something unexpected in an era defined by fierce great-power rivalry: it was officially validating a small island nation’s right to maintain an independent foreign policy stance.

The Strategic Value of Independence

For decades, nations caught in the crosshairs of major-power competition have faced intense pressure to pick sides. Yet, Ambassador Wei’s embrace of Colombo’s non-aligned tradition signaled a different diplomatic playbook. Instead of demanding alignment, Beijing was framing its partnership as a reliable counterbalance to regional pressures. By honouring Sri Lanka’s diplomatic autonomy, China was effectively reassuring smaller economies that sovereign independence and robust economic cooperation can coexist.

Beyond Ports and Industrial Zones

This diplomatic framing reframed the narrative surrounding major collaborative ventures like the Colombo Port City and Hambantota Port. While foreign analysts often view these projects exclusively through the lens of strategic rivalry, Beijing’s diplomatic messaging tied them back to a historical ethos of solidarity—evoking memories of the 1952 Rubber-Rice Pact.

By marrying economic projects with a stated respect for non-alignment, China is positioning itself as a steadfast stakeholder that respects Sri Lanka’s internal agency during difficult economic and political seasons.

As both nations look toward major milestones in 2027—including the 70th anniversary of diplomatic ties—this nuanced diplomatic move revealed how historic traditions are being leveraged to navigate modern multipolar realities.

For global observers, the takeaway was clear: in the shifting architecture of Asian geopolitics, respecting a nation’s historical neutrality may just be the most effective way to secure a lasting partnership, a diplomatic masterclass that Ambassador Wei Huaxiang executed in style.

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Sri Lanka Insurance Life appoints Dr. Sameera Dharmasena Chief Executive Officer

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Dr. Sameera Dharmasena

Sri Lanka Insurance Life (SLIC Life), the nation’s largest and strongest Life Insurer, is pleased to announce the appointment of Dr. Sameera Dharmasena as its new Chief Executive Officer, effective 22nd September 2026.

Dr. Dharmasena is a distinguished insurance professional with over 21 years of experience in the Sri Lankan insurance industry, having held senior leadership positions across several leading insurance companies affiliated with some of Sri Lanka’s largest business conglomerates. His extensive career spans both local and multinational insurance environments, bringing together broad industry expertise, strategic leadership and a strong commitment to the advancement of the insurance profession.

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