Business

Aitken Spence non-tourism sectors record highest ever PBT of Rs. 5 billion in 2020-2021

Published

5 years ago

2021/05/25

During a turbulent financial year that was affected by the unprecedented COVID-19 pandemic, Aitken Spence Group’s non-tourism sectors delivered the highest ever profit before tax of Rs. 5.01 billion for the twelve months ending 31st March 2021 compared to Rs. 4.2 billion last year and partially offsetting the impact of the Group’s Tourism portfolio which recorded its worst year ever due to the devastating impact of the pandemic.

The Group’s non-tourism sectors overcame multiple challenges including business disruptions, health and safety risks faced by the Spensonians and the overall slowing down of economic activity to record a growth in profit before tax of 55% in the 4th quarter and 18.9% in the financial year, compared to the corresponding periods in the previous year.

The Maritime and Freight Logistics sector which has operations across 5 countries contributed 51.2% of the Group’s non-tourism profit before tax by recording Rs. 2.6 billion which is a growth of 13.9% year-on- year. This is despite the overall decline in trade volumes during the year. The cargo general sales agencies represented by the Group performed exceptionally well which benefitted from increased freight rates and innovative marketing efforts. Despite the lower import and export volumes recorded by the country during the year, the Group’s integrated logistics segment witnessed a growth in profits due to strategic shifts implemented in its business activities. It is noteworthy that amidst challenges the sector established new strategic partnerships demonstrating the confidence of the business partners in these companies and the Group.

The Strategic Investments sector was the second highest contributor towards the Group’s performance with a profit before tax of Rs. 2.1 billion which is a growth of 23.3% year-on-year. The country’s first ever waste-to-energy power plant commenced in February 2021 with a healthy contribution during these months of operation. The Group recently invested in three more renewable energy projects, expanding its portfolio in hydropower in the pursuit of meeting rising energy demands, sustainable development, access to clean energy and lowering the national carbon footprint. The Group’s investment in plantations provided a substantial boost to the overall earnings of the sector recording its highest ever profit from inception due to its balanced portfolio of diversification.

The Services sector performance was commendable recording a profit before tax of Rs. 392 million which is a growth of 31.8% year-on-year. The Money transfer segment responded to a change in customer needs by facilitating a door-step delivery solution with no additional cost and a direct to bank facility, which resulted in an increase in remittances handled and a record year of performance for the business unit. The Insurance segment was able to record a marginal increase in profitability compared to the previous year through innovative solutions despite the challenges posed by the pandemic. The Elevators segment had an improved year, to record a profit for the year despite the temporary slowdown in the construction industry.

The Tourism sector was worst affected as border closures brought international tourism to a halt. The Tourism sector recorded a sharp decline in revenue from which the sector is still recovering due to the recurrence of the pandemic in source markets despite the roll out of vaccines. Notwithstanding these setbacks, Heritance Kandalama, Sri Lanka, and Heritance Aarah, Maldives belonging to the Group’s Heritance Hotels and Resorts cluster was the only Sri Lankan hotel chain to be recognised at the Condé Nast Traveller Readers’ Choice Awards Middle East 2020. Moreover, Aitken Spence Travels became one of the first Destination Management Companies (DMCs) to be awarded the ‘Safe and Secure’ Tourism Certificate of Compliance by the Sri Lanka Tourism Development Authority (SLTDA).

The Group led the revival of the tourism sector in Sri Lanka and significantly contributed towards the recovery through facilitation of the first of the charter flights to Sri Lanka since the reopening of the airports on 21st January 2021, from unconventional markets such as Kazakhstan. The Group accounts for over 35% of the total arrivals to Sri Lanka from the date of reopening of airports to the end of the financial year. The resorts of the Group in the Maldives recorded a promising revival with the gradual reopening of the resorts from the third quarter of the financial year, with the segment recording a profit from operations for the fourth quarter.

Overall, the Group recorded a loss before tax of Rs. 2.8 billion with the tourism sector reporting a loss of Rs. 7.8 billion for the year. Nevertheless, the Group’s resilience despite its large exposure to the tourism sector is commendable at a time when some of the world’s largest tour operators and air lines required Government bailouts in order to keep afloat.

“During yet another challenging year, Aitken Spence has been reinventing its businesses and our priorities are focused on re-strategising our operations and business models while strengthening resilience. With this objective, the Group embarked on a business and process transformation drive across all business segments. Our strategy to realign, reinvent and relaunch has been adopted very well by our motivated Spensonians proving their true grit. We are indeed confident of the capability of our team to take the Group to a brighter future in the new reality that has characterised the current business environment”, commented Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director of Aitken Spence PLC.

Aitken Spence PLC won the highest number of awards received by a single company at the Best Corporate Citizen Sustainability Award 2020 and the only company that has been ranked among the Top 10 Best Corporate Citizens in Sri Lanka for an unprecedented 15 consecutive years.

Listed in the Colombo Stock Exchange since 1983 and with a history spanning over 150 years, Aitken Spence is a blue-chip conglomerate with operations in 16 diverse segments in 8 countries: Sri Lanka, Maldives, Fiji, Mozambique, India, Oman, Myanmar and Bangladesh.

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Business

Lanka’s largest solar park set to transform energy landscape and local economy in Hambantota

Published

10 hours ago

2026/02/22

Thilina Walpola

A new era in Sri Lanka’s renewable energy is unfolding in the Gonnoruwa Division of Hambantota District, where construction has begun on the country’s largest solar power park. Spanning 450 acres and designed to generate 150 megawatts (MW) of electricity, the US$150 million private-sector-led project is poised to become a cornerstone of the nation’s sustainable energy ambitions.

Officials say the solar park, guided by the Sustainable Energy Authority and the Mahaweli Authority, will make its first contribution to the national grid by the end of this year, with full capacity expected by 2026. Once completed, the facility will rank among Sri Lanka’s largest renewable energy installations, second only to the 210 MW Victoria Dam and the 150 MW Upper Kotmale hydropower project.

The initiative is being framed as a strategic response to recurring power cuts in the Southern Province during annual drought periods. With a projected 20% contribution to the country’s daytime electricity demand, the solar park is expected to significantly stabilize the grid, reduce reliance on fossil fuels, and contribute to the country’s renewable energy targets.

Project Engineer Thilanka Bandara confirmed that preliminary land preparation and boundary works have been completed, with 50 MW already feeding into the national grid. The investment, fully funded through foreign direct investment, local bank loans, and equity capital, requires no government funding. Two private firms are sharing the development, contributing 70 MW and 80 MW respectively.

Bandara highlighted a unique feature of the project: the transmission infrastructure, estimated at US$16 million, is entirely financed by the investors, marking a departure from conventional grid-connected projects. The park will also employ state-of-the-art ground-mounted solar technology, considered the most advanced currently deployed in Sri Lanka.

In a first for Sri Lanka, the solar panels will be installed five feet above the ground, allowing partial-shade crops to be cultivated underneath. Technical Officer Sithmina Bandara explained that this setup will enable the cultivation of food plants such as mushrooms, which thrive in shaded conditions, creating a model for integrated solar-agriculture systems. Agricultural experts have already provided guidance on implementing this initiative, which combines energy production with local food security.

The project is expected to generate 750 to 1,000 direct and indirect jobs, with 400–500 already employed in the initial phase. Long-term maintenance work will provide further employment opportunities, offering a substantial economic boost to the Hambantota region. Environmental management measures are also in place to prevent elephants from entering nearby villages, ensuring harmony between development and wildlife.

All necessary approvals and permits were obtained by February 2025, aligning the project with the Ceylon Electricity Board’s national generation plan. Officials confirmed that upon completion, the total output of the Solar Energy Park will rise to 200 MW, combining existing installations with the new 150 MW facility.

Experts say the Hambantota solar park represents more than just a power generation project. Its innovative design, private-sector financing, and integrated agricultural approach position it as a template for future renewable energy projects in Sri Lanka, reflecting a new model of sustainable development that balances energy, economy, and environment.

By Sirimanta Ratnasekera

Business

ESU Kandy clinches dominant victory at ‘Battle of Esoftians’

Published

11 hours ago

2026/02/22

Thilina Walpola

The Battle of Esoftians, an annual cricket encounter organized by ESOFT Uni Kandy, concluded with a spectacular display of cricketing prowess as the Kandy team secured a massive 245-run victory over ESOFT Metro Campus, Kurunegala. The match was held on the 15th at the University of Peradeniya Grounds.

Winning the toss and electing to bat first, the ESOFT Uni Kandy batsmen dominated the field from the outset. They showcased an explosive batting performance, posting a formidable total of 280 runs for the loss of 5 wickets in their allotted 20 overs.

In response, the Kurunegala ESOFT Metro team struggled against a disciplined bowling attack. The Kandy bowlers dismantled the opposition’s batting lineup, bowling them all out for a mere 35 runs, sealing a historic win for the Kandy campus.

The event was graced by the presence of key officials from the ESOFT management: Amila Bandara – Chief Operating Officer (ESOFT Uni), Dimuthu Thammitage – General Manager (Central Region), Lakpriya Weerasinghe – Deputy General Manager, ?Lahiru Diyalagoda

Centre Manager-Degree Division, ESOFT Metro Campus Kurunegala and Dushantha Sandaruwan – Master in Charge (ESU Kandy Cricket Club)

Team Lineups

ESOFT Uni Kandy (Winners)

Chamath Ekanayake (Captain), Dinuka Tennakoon (Vice Captain), Dushantha Sandaruwan (MIC), Chalitha Rathnayake, Pulasthi Bandara, Isuru Dehigama, Kesara Nuragoda, Aadhil Sherif, Isuru Pannala, Achintha Medawatta, Ahamed Shukri, Gowtham Hari Dharshan, Danushka Sahan, Eranda Bandara, and Damith Dissanayake.

ESOFT Metro Campus Kurunegala (Runners-up)

Adeesha Samarasekara, Savishan Madusha, Lahiru Diyalagoda, Hirun Damayantha, Naveen Madushanka, Daham Pothuwewa, Senuda Thewnaka, M.R. Abdulla, Arunodya Dasun, Mohamad Afri, Desith Perera, Lasitha Ranawaka, Anton Dilon, Shenuka Thirantha, and Kavindu Bandara.

Text and Pix By S.K. Samaranayake

Business

HNB joins Royal–Thomian “Battle of the Blues” as official banking partner

Published

11 hours ago

2026/02/22

Thilina Walpola

HNB Vice President Marketing & Corporate Communications, Upul Adikari, together with HNB, Brand Manager, Ishara Thilakarathne, presents the Official Banking Partner sponsorship cheque to St. Thomas’ College, Warden, Asanka Perera and Royal College Principal Athula Wijewardana, in the presence of the Co-Chairs of the Royal–Thomian Match Organizing Committee and captains from both teams.

HNB PLC, Sri Lanka’s leading private sector bank, has joined as the Official Banking Partner for the 147th edition of the historic “Battle of the Blues,” the Royal–Thomian cricket encounter between Royal College, Colombo, and S. Thomas’ College, Mt. Lavinia. Commenting on the partnership, HNB’s Managing Director/CEO Damith Pallewatte highlighted the bank’s long-standing connection with cricket, including sponsorship of Sri Lanka’s first Test match against England in 1982, and emphasized HNB’s commitment to nurturing young talent and promoting school cricket. The three-day clash for the Rt. Hon. D. S. Senanayake Memorial Shield will take place from March 12–14 at the SSC Grounds, with the Mustangs Trophy one-day match following on March 28 under lights. HNB’s inaugural involvement marks a milestone in the bank’s sports marketing journey, strengthening its role in the school cricket ecosystem. The bank will enhance the spectator experience by introducing digital and cashless banking solutions, modernizing the event while preserving its rich heritage and sporting tradition.