Business

Aitken Spence creates history by recording its highest ever profit of Rs 14.2 billion

Published

4 years ago

2022/05/30

For year ended 2021/2022

The diversified blue-chip Aitken Spence PLC reported a profit before tax of Rs. 14.2 billion for the twelve months ended 31st March 2022 compared to the loss reported before tax of Rs. 2.8 billion last year. This phenomenal performance was driven by the Group’ diverse presence in eight countries spanning sixteen segments of operation. The diversity of the Group’s operations and the transformational leadership and rigorous management of processes and costs showcased by all segments in achieving these results are testimony to the Group’s ability to perform even under trying socio-economic conditions.The asset rich Aitken Spence Group grew its total asset base by 34.3% during the year to Rs. 197.3 billion at year end, with Rs. 127.9 billion of these assets being non-current assets, predominantly property, plant and equipment. The diversity of the Group is further augmented by the fact that 46.7% of those total assets are from overseas operations. Aitken Spence net assets per share stood at Rs. 162.44 as of 31st March 2022, which is a 33.3% growth over the previous year.

The Group’s EBITDA (earnings inclusive of equity accounted investees, before interest expenses, tax, depreciation, and amortization) for the year was an impressive of Rs. 23.1 billion compared to Rs. 4.9 billion recorded the previous year.The maritime and freight logistics sector contributed to the Group’s performance by recording its highest profit of Rs. 4.9 billion, a growth of 92.1% for the twelve months ended 31st March 2022. The Group’s freight management and liner shipping segments together with enhanced overseas port management operations were the main reasons for an exceptional performance from this sector.

The Group’s tourism sector showed an outstanding turnaround in performance to record a profit before tax of Rs. 2.5 billion for the twelve months ended 31st March 2022 compared to a loss before tax of Rs. 7.9 billion the previous year. This was supported by a noteworthy contribution from the Group’s overseas hotels and an improved performance from the Sri Lankan hotels, while the new charter operations from the Eastern European and Central Asian markets facilitated by the Group’s destination management segment also boosted earnings.The Group’s strategic investments sector recorded a profit before tax of Rs. 6.1 billion for the twelve months ended 31st March 2022 compared to Rs. 2 billion last year. The improved performance was driven by the plantations segment that recorded the highest ever profit in its history. A full year’s operation of the waste-to-energy power plant, the three recently acquired hydro power plants were among the major driving forces of the profits of this sector, while the foreign currency translation gain recorded in the holding company also enhanced profitability.

The Group’s services sector recorded a profit before tax of Rs. 708 million for the twelve months ended 31st March 2022 compared to Rs. 392 million last year. Improved performance was seen in the elevators segment that made noteworthy contributions to the sector.

“Despite facing several global and domestic challenges during another tumultuous year, Aitken Spence recorded the highest ever profit before tax in its entire history which is a significant milestone for the Group. The geographic diversity of the Group was key to delivering phenomenal results underlined by our approach ‘if we do not risk anything, we risk even more’. This has been our ethos and guide in making bold decisions to move early to seize opportunities”, commented Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director of Aitken Spence PLC.

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Business

ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

18 mins ago

2026/10/2

Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

Business

USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

26 mins ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

Business

CSE activity up, turnover weak at Rs. 1.4 billion

Published

26 mins ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.