Connect with us

Business

JKH pays modest Rs. 0.50 dividend despite Rs. 1.7 bn. first half loss

Published

on

John Keells Holdings PLC, the diversified conglomerate widely regarded as the strongest entity quoted on the Colombo Stock Exchange, Thursday announced a second interim dividend of 50 cents a share, on top of the first interim of one-rupee paid in November last year despite a group loss of Rs. 1.7 billion in the first half of the current financial year.

Analysts said that JKH’s strong balance sheet with a revenue reserve of nearly Rs. 65 billion had made this payment possible.

JKH Chairman Krishan Balendra said in his chairman’s review of the September quarter that the “group will follow its dividend policy which corresponds with the growth in profits, whilst ensuring that the company maintains adequate funds to ensure business continuity given the unprecedented nature of the current circumstances.”

He explained the dividend despite the negative bottom line to “the faster than anticipated recovery following the resumption of business activity in the country and the strong growth momentum witnessed across our group businesses with the exception of leisure.”

The declaration of this dividend reflects the cash generation capability of the Group’s diverse portfolio of businesses, he said.

The leisure segment of their business took the hardest blow with an EBITDA (Earnings Before Interest Tax, Depreciation and Amortization) of Rs. 2.6 billion in the first half of the current financial year.

Discussing this, he said although the Sri Lankan airport remains closed to-date for foreign arrivals, the resumption of domestic travel continued during the quarter, with all properties in the Sri Lankan Resorts segment recording an encouraging increase in month-on-month occupancy.

Despite the challenging operating environment, the City Hotels sector also exhibited a better than anticipated performance, primarily driven by the food and beverage and banqueting segments. However, the recent cluster outbreak of COVID-19 in Sri Lanka will impede this recovery should the current situation prevail, he warned.

 

Balendra summary of key operational and financial highlights of the September quarter was:

• The underlying performance of the Transportation, Consumer Foods, Retail and Financial Services industry groups continued its growth momentum witnessed in the latter part of the previous quarter, demonstrating a faster than anticipated recovery following the resumption of business activity in the country post the easing of lockdowns in May 2020.

• Group EBITDA excluding the Leisure industry group was Rs.4.50 billion during the second quarter of the year under review, which is a 15 per cent increase against the previous year [2019/20 Q2: Rs.3.91 billion].

• Given the strong recovery momentum in business activity and the generation of cash profits by the Group, a second interim dividend of Rs.0.50 per share, amounting to a payout of Rs.659 million, was declared to be paid on or before 7 December 2020. The declaration of this dividend reflects the cash generation capability of the Group’s diverse portfolio of businesses.

• The Leisure industry group continued to be impacted by the closure of the airport in Sri Lanka, although this has been mitigated, to an extent, by a resumption in domestic tourism, recovery in the banqueting, food and beverage segments and the opening of the airport in the Maldives in mid-July.

• The Frozen Confectionery, Beverage and Convenience Foods businesses recorded double-digit growth in EBITDA against the corresponding period of the previous quarter, continuing the trajectory witnessed in June.

• The Supermarket business continued its positive momentum with a strong rebound in sales and EBITDA, driven by the contribution from new outlets towards revenue growth and a pick-up in same store footfall post the easing of lockdown measures witnessed in the first quarter.

• Pace of construction at ‘Cinnamon Life’ continued to gain traction during the quarter. Post ascertaining the impact of COVID-19 on the overall timelines of the project to manage deliverables and the re-sequencing of work, it is expected that the hand-over of the residential apartments and office tower will commence on a staggered basis from the fourth quarter of 2020/21 onwards.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

CIF, the world’s favorite multi-surface cleaning brand, arrives in Sri Lanka

Published

on

CIF, the globally recognized multi-surface cleaning brand, has officially entered the Sri Lankan market, expanding the range of international home-care solutions available to local consumers.

CIF products are now available at Cargills, Keells, Glomark and Celeste, as well as online through Daraz and uStore, at a retail price of Rs. 900 for 500ml. Shop CIF online at https://ustore.lk/collections/cif

Used by households around the world, CIF is known for its powerful cleaning performance and ability to tackle everyday dirt and some of the toughest cleaning challenges around the home.

Its introduction to Sri Lanka comes as consumers increasingly seek cleaning products that combine performance, convenience and versatility, particularly solutions that can be used across multiple areas and surfaces within the home.

One cleaner. So many possibilities.

From stubborn kitchen grease and grime to limescale around sinks and dirt that builds up on frequently used surfaces, CIF is designed to provide powerful cleaning performance while helping make every day cleaning simpler.

The brand’s multi-surface proposition allows consumers to address a range of household cleaning needs with one versatile solution, bringing greater convenience to modern cleaning routines.

CIF’s entry into Sri Lanka also brings the brand’s global philosophy closer to local consumers eventually helping people restore and rediscover the beauty of the places and things around them through effective everyday cleaning.

With its combination of global recognition, multi-surface versatility and powerful cleaning performance, CIF’s arrival provides Sri Lankan consumers with a new international option in the household cleaning category.

The world’s favorite multi-surface cleaning brand is finally here in Sri Lanka.

Just CIF it!

Continue Reading

Business

A sustained wave of Indian assistance to Sri Lanka showcases defining shift in developmental diplomacy

Published

on

Transport Minister Bimal Rathnayake and Indian High Commissioner Santosh Jha at the plaque unveiling ceremony for the Moragahakanda Bridge project, supported by Indian grant assistance.

By Sanath Nanayakkare

An evolving approach to regional diplomacy was brought into sharp focus with the recent foundation-laying ceremony for the Moragahakanda Bridge in Matale.

Jointly launched by Indian High Commissioner Santosh Jha and Minister of Transport, Highways and Urban Development Bimal Rathnayake, this 175-metre span is far more than a routine civil engineering project. It serves as the physical manifestation of a broader USD 450 million reconstruction package deployed by India in the wake of Cyclone Ditwah, which severely fractured the island’s transport arteries.

Foreign aid is too often discussed in cold, macroeconomic abstractions. Yet, every so often, a consistent pattern of targeted assistance alters the landscape of bilateral relations, offering a clear window into how regional partnerships evolve out of necessity and goodwill.

Across the country today, a remarkable narrative of multi-layered cooperation is unfolding.

From critical post-disaster infrastructure and maritime routes to grassroots agricultural uplift and institutional capacity-building, India’s developmental footprint is shifting unmistakably toward an organic, people-centric model of shared resilience.

What distinguishes this latest wave of assistance is its deliberate pivot from emergency support to permanent, climate-resilient transformation. When Cyclone Ditwah initially paralysed regional connectivity, India’s immediate response was marked by the rapid deployment of temporary Bailey bridges.

Today, that swift humanitarian intervention has matured into a structural blueprint: the Moragahakanda project stands as the vanguard of 13 permanent bridges being built across Sri Lanka’s provinces by IRCON International Limited, complemented by upcoming railway upgrades and modern signaling systems backed by a USD 250 million Line of Credit.

The true signature of this diplomatic shift lies in its breadth, operating simultaneously across multiple tiers of society:

Institutional Governance: Delegations of Sri Lankan parliamentarians and senior administrative officers regularly travel to India to study public policy frameworks, legislative systems, and administrative practices.

Economic Lifelines: Financial mechanisms, such as viability gap funding for the Nagapattinam-to-Kankesanthurai passenger ferry service, continue to shrink geographical distances, reviving coastal commerce and tourism.

Grassroots Empowerment: Specialised capacity-building programmes tailored for local stakeholders – ranging from state officials to rural dairy farmers -ensure that development reaches deep into the island’s hinterlands.

By aligning immediate disaster relief with long-term infrastructure, institutional capacity, and human capital, India and Sri Lanka are demonstrating how neighbours can build safer, more connected futures together, grounded firmly in mutual respect and tangible progress.

Continue Reading

Business

Bring your own bag to book fair, CEA urges

Published

on

By Ifham Nizam

The Central Environmental Authority (CEA) yesterday urged visitors to the Colombo International Book Fair to bring reusable bags to carry their purchases, as part of a drive to reduce single-use plastic waste at the event.

CEA Director General R. S. P. Kapila Rajapaksha said large quantities of plastic, particularly “sili sili” bags, had been used to carry books at previous book fairs.

“We urge visitors to bring an environmentally friendly, reusable bag when they come to buy books. This simple step can help reduce the use of single-use plastic and protect the environment,” Rajapaksha said.

The book fair opens on September 25, with the CEA and the Sri Lanka Book Publishers’ Association launching an awareness programme targeting book sellers, food vendors and visitors.

The programme will be conducted under the theme “Read Smart, Carry Smart”, focusing on reducing polythene and plastic use throughout the exhibition.

The CEA said the use of plastic bags is also subject to regulations issued under the Consumer Affairs Authority Act. Gazette Extraordinary No. 2456/41, dated October 1, 2025, prohibits the free distribution of handled “sili sili” bags to consumers. Where such bags are sold, the charge must be included in the customer’s bill.

The CEA said food outlets at the book fair would also be required to comply with regulations prohibiting a range of single-use plastic products.

These include plastic straws and stirrers, disposable plastic plates, cups, spoons, forks and knives, as well as polythene-based food wrappers commonly known as lunch sheets.

The CEA said it had discussed the requirements with relevant stakeholders and reached agreement to ensure that prohibited products are not used at food outlets within the exhibition premises.

The authority urged both traders and visitors to cooperate with the initiative and help make this year’s book fair a more environmentally responsible event.

Continue Reading

Trending