Business

Ceylon Shipping Corporation turns tables on its financial performance

Published

4 years ago

2022/02/7

Sahan Weerasooriya

Reports loss reduction of Rs. 1.15 billion in two years

Posts Rs. 636 million profit in fist 8 months of FY 2021/22

If CSC’s fleet size is increased, country can save millions of dollars spent on ship chartering, says chairman

by Sanath Nanayakkare

The Ceylon Shipping Corporation (CSC) has made an impressive turnaround in its fortunes from a loss-making State Owned Enterprise (SOE) to a profit making SOE within two years.

In the Financial Year 2020/21, CSC has posted a profit of Rs. 636 million in the first eight months of financial year 2021/22 , changing the situation completely different from the losses it made in 2018/19 (Rs. 1,523 million) and in 2019/20 (Rs. 1,085 million) which had caused problems for them.

CSC Chairman, Wineendra S. Weeraman, told The Island Financial Review that the profit curve of CSC was a well thought out one.

“When I assumed duties as chairman of CSC in December 2019, nobody was interested in taking over the helm at the CSC under such dismal financial circumstances,” he said.

Weeraman said that he first gave priority to settling a loan of USD 75 million taken from the People’s Bank by the previous management for purchasing two ships.

“This loan was on a Treasury guarantee and I decided to clear all arrears because I didn’t want to carry it forward paying a huge interest on the loan capital. In the accounts, I saw that we had an outstanding payment amounting to Rs.1,400 million which had to be collected from Lanka Coal Company – the procurement entity of the CEB. Through an official process, I was able to recover these funds and use it to repay that loan. Whatever I had to pay I paid and I took the decision to charter out our ships at the opportune moment despite the threat of Covid-19. Those were the key decisions I took and that is how we are making profits now,” he said.

Further speaking he said:

“Currently the main business of CSC is delivering coal to Norochcholai power plant. In this connection, CSC deals with Lanka Coal Company and the Ceylon Electricity Board (CEB). The CEB charters our two bulk carriers ‘Ceylon Breeze’ and ‘Ceylon Princess’ each with 62,000 deadweight tonnage, to bring in coal to Sri Lanka from South Africa. The CEB pays us in Sri Lankan rupees when they charter our vessels, but when they charter foreign vessels for the purpose, they pay in US dollars.”

“CSC brings in one third of the total coal requirement for Norochcholai Power Plant. We can help save a massive amount of US dollar payments made as ship chartering costs if CSC has its own fleet to deliver the entire requirement of coal.”

“At the height of Covid-19, despite concerns among experts that we should keep the two ships at anchorage, upon verifying of IMO regulations and the advice of Harbour Master and Medical Officer of the Sri Lanka Ports Authority, I decided to send our ships to sea and bring in much needed foreign currency to the country, without leaving the ships idling at sea incurring losses for six months. With that operation, we were able to bring in 3 million USD within about 6 months.”

“When we charter a ship to transport coal to Norochcholai Plant, procured through Lanka Coal Company, the charter hire alone costs between US$ 1.3 million and 2.0 million on top of other costs for each charter. If we have another four vessels in our fleet, we can prevent this foreign currency outflow happening time after time.”

“If we bring the fleet up to six vessels with a tanker or two, we can bring in the entire supply of coal, rice, sugar and even petroleum products without chartering international vessels over an infinite number of years. How many millions do we pay for transportation of fuel and other commodities? Being the purchaser of these products, we should be able to dictate the terms of their transportation. We can ask them to use our vessels. If the government says all fuel imports to Sri Lanka needs to be carried on CSC vessels, then we can save a lot of millions of dollars.”

“The policymakers of the government should support us in this regard. They should support key government organisations such as CSC and put some muscle into its capacity to make it more productive in its operations and empower it to support the economy of the country in a more robust way. We have made requests to policymakers pertaining to this objective including the former chairman of CSC who could assist us in fund arrangement,” he said.

“CSC’s annual turnover is about Rs. 3.8-4.0 billion whereas Sri Lanka Port’s Authority’s annual turnover is about Rs. 55 billion. Comparatively speaking, CSC is also contributing to the economy in a notable way with the limited resources it has. The CSC has great potential for growth if it gets the necessary policy support.”

“CSC employs 125 staff in-house. On each vessel we have about 22-23 crew members – that’s about 46 on both vessels and we have a reserve pool of crew for crew changes. Our salary structure is very competitive with that of international shipping lines. We pay a ship master about USD 8,500- 9000 per month. We have to pay such salaries to ensure deployment of qualified and skilled people on board our vessels. However, the upside here is that the entire crew is Sri Lankan”.

“Before Covid when we chartered out our ships to international parties during the off-season, we earned USD 8000-13,000 per day per ship. With the spread of initial Covid wave, these prices came down to USD 6,500-7,500. After the second wave of Covid, the freight rates skyrocketed to about USD 35,000-40,000. So this is the best period for the global shipping industry and we should make the best out of this situation for CSC.”

“The greatest difficulty we have with the CEB is that we fight with them to get priority to us in charter services and they also prefer to give it to outsiders upon finding one single fault that could easily be rectified. And even after providing the services for them, they take months and years to pay our dues. Then we can’t operate maintaining a positive balance sheet.”

“I would like to urge the policymakers and top officials to take bold policy decisions to beef up the fleet of CSC.”

Talking about his future plans he said:

“There are several projects which I intend to start here. There were negotiations in 2017 – with Bangladesh Shipping Corporation to operate a feeder service here. If you take Port of Colombo, its capacity is 7 million TEUs. In Bangladesh it is 3.5 million. Twenty percent of their cargo is coming to Colombo. That is about 700,000 TEUs. Bangladesh ports are very congested. Ship owners don’t like to go there because it takes days to reach a terminal. If we sign this bilateral agreement, they are going to save on the number of days spent on transportation of their cargo. If we can sign it, CSC will be able to earn about USD 2 million per year. The SLPA also will earn from it when TEUs are brought to the Port of Colombo. It will be a win-win-win situation for all parties.”

“Bunker prices are very high here compared to Singapore. Sometimes we don’t get the bunkering business unless the prices fluctuate in a competitive manner to ship operators. If we supply them bunker off-shore or out of the port, they will prefer to get oil at a lesser price. I have submitted a proposal for a floating bunker as well.”

“And then the ferry service between Colombo and Tuticorin which was started in 2011. I am planning to resume this service. Not only Tuticorin, we can try various other ports in India.”

“Going further, I have a plan to arrange medium size cruise vessels between Colombo, Male and Goa. If we arrange these tours then everybody will find them exciting and enjoy these tours bringing us revenue.”

“CSC wants to get involved in passenger transportation as well. I have signed an agreement with Sail Lanka Yachting Group, a global company that builds yachts in Sri Lanka. They are already operating from the Colombo Port City Marina. They have agreed to manufacture bigger ships to partner with CSC’s plans for passenger transportation.”

“These are plans for the future and I have submitted them to the policymakers. If we want to make a maritime hub here, these things should be facilitated.”

“Ship repairing is another area. I also wait in queue to get CSC ships repaired. In addition to Colombo Dockyard, we need to build another dockyard, ideally in Trincomalee.”

“Finally, We need to be mindful of Sagarmala Programme which is underway in India targeted to culminate by 2035. It is designed across areas of port modernisation, new port development, port connectivity enhancement and port-linked industrialisation. One day it is going to affect us. So we need to equip all critical installations here to stay in the business and thrive in the new maritime sector emerging in the region. I appeal to the policymakers and top officials of the government to support CSC with bold policy-making for its exponential growth, bolstering key business verticals of the industry at the same time.”

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Business

Climate damage costing Sri Lanka over Rs. 50 billion annually; private capital key to recovery and growth

Published

17 hours ago

2026/06/11

Sahan Weerasooriya

Azusa Kubota

– UNDP Resident Representative Azusa Kubota

Sri Lanka’s climate crisis is no longer merely an environmental challenge but a growing economic threat that is inflicting losses exceeding Rs. 50 billion annually, while placing immense pressure on public finances, investment flows and long-term economic stability, according to United Nations Development Programme (UNDP) Resident Representative Azusa Kubota.

Delivering the keynote address at the Climate Summit organised by the Climate Action Committee of the Ceylon Chamber of Commerce, Kubota said the country urgently needs to transform climate ambition into investable projects capable of attracting private capital, strengthening resilience and driving economic growth.

“Climate change is no longer a distant environmental issue. It is already a risk shaping markets, supply chains, trade, investment and human development. It is fundamentally an economic and development issue,” she stressed.

Kubota warned that climate volatility is intensifying in real time, citing forecasts from the World Meteorological Organisation indicating an 80 percent probability of El Niño conditions during the June-August period, rising to over 90 percent later this year.

For Sri Lanka, this could mean weaker rainfall, higher temperatures, greater pressure on agriculture and hydropower generation, and increased risks to water security, food production and business continuity.

The UNDP official noted that the devastating impacts of recent climate-related disasters had exposed the vulnerability of the economy. Following last year’s severe weather events, the Government’s Post Disaster Needs Assessment estimated damages of approximately Rs. 618 billion, while recovery requirements over the next three years are expected to exceed Rs. 1 trillion, with nearly half the losses concentrated in infrastructure.

“Public finance alone will not be sufficient. Private capital must be strategically directed towards bridging these enormous financing gaps,” she said.

Kubota highlighted that global climate finance reached a record USD 1.9 trillion in 2023, while private climate finance surpassed USD 1 trillion for the first time. However, she pointed out that the world still requires approximately USD 6.3 trillion annually through 2030 to remain on track with climate goals.

“The capital exists. But it will only flow at scale where policies, institutions and project pipelines are credible,” she observed.

She said Sri Lanka has made significant progress in strengthening its climate policy framework through the updated National Climate Change Policy, Nationally Determined Contributions (NDC 3.0), sectoral transition plans and the recently Cabinet-approved Climate Finance Strategy.

However, she cautioned that policy ambitions alone are insufficient unless backed by strong implementation mechanisms.

“The private sector does not invest on the basis of ambition alone. Businesses invest where policy is credible, institutions are clear and projects can move from concept to execution,” Kubota said.

She stressed that investors require certainty regarding procurement systems, regulatory frameworks, financing mechanisms, revenue models and governance structures before committing capital.

The UNDP representative identified renewable energy, energy efficiency, industrial decarbonisation, waste management, circular economy solutions, climate-smart agriculture, ecosystem restoration, resilient infrastructure and carbon markets as sectors with substantial investment potential.

She also pointed to Sri Lanka’s emerging carbon market framework under Article 6 of the Paris Agreement as a potentially significant source of climate finance and international partnerships.

“These are not technical details. They are the conditions that determine whether market interest becomes a credible investment,” she said.

Kubota further noted that Sri Lanka’s first Biennial Transparency Report (BTR), submitted to the UN Framework Convention on Climate Change, provides valuable insights into policy, financing and implementation gaps that need to be addressed.

According to her, transparency and accurate climate reporting are increasingly important not only for international compliance but also for investor confidence, risk assessment and financing decisions.

She urged stronger collaboration between government agencies, financial institutions, industry leaders and development partners to accelerate implementation of climate commitments.

“Climate policy succeeds when it becomes economic policy, and when the private sector becomes a co-owner of implementation, resilience and recovery,” she emphasized.

Kubota said resilience should be viewed not as a social cost but as a strategic economic investment.

“Building back better is not simply a humanitarian imperative. It is central to protecting supply chains, lowering long-term costs and strengthening economic confidence,” she noted.

She added that investments in resilient infrastructure, insurance, climate-smart agriculture, water efficiency, early warning systems and sustainable construction could create entirely new markets and competitive advantages for Sri Lanka.

Looking ahead, Kubota called for stronger alignment between NDC 3.0, the country’s long-term economic vision, emerging carbon market frameworks and financing mechanisms.

“The task now is to connect policy to projects, projects to finance, and finance to measurable results for people, businesses and communities,” she said.

She reaffirmed UNDP’s commitment to supporting Sri Lanka through initiatives including climate investment pipeline facilities and the proposed Canopy Fund, a blended finance mechanism designed to mobilise investment for nature-based solutions.

“The decisions we make today will shape not only Sri Lanka’s climate future, but its economic future as well,” Kubota concluded.

By Ifham Nizam

Business

David Pieris Automobiles opens Sri Lanka’s first GWM Flagship Experience Centre

Published

17 hours ago

2026/06/11

Sahan Weerasooriya

One of first GWM customers receiving the keys from Rohana Dissanayake, Group Chairman and Managing Director, David Pieris Group of Companies

A new era of premium mobility begins at Union Place, Colombo 02

David Pieris Automobiles (Private) Limited (DPA), the four-wheeler sales arm of the David Pieris Group, proudly announced the opening of its state-of-the-art GWM Flagship Experience Centre at 250, Access Tower 03, Union Place, Colombo 02, marking a significant milestone in the evolution of Sri Lanka’s automotive retail landscape.

GWM Flagship Experience Centre at Access Tower, Union Place,
Colombo 02

The newly opened flagship facility is designed to deliver a truly world-class automotive experience, showcasing the latest innovations and technologies from GWM, one of the world’s leading automobile manufacturers. As the first and only vehicle experience centre of its kind in Sri Lanka, it offers customers an immersive journey that goes beyond the traditional showroom concept. Visitors can explore GWM’s premium range of SUVs and electric vehicles, including the HAVAL H6 HEV, HAVAL H6 PHEV, HAVAL H6 GT PHEV, TANK 300 HEV and TANK 500 HEV, while enjoying dedicated vehicle demonstration zones, test-drive opportunities, and a host of innovative customer engagement experiences designed to redefine the vehicle purchasing journey. GWM’s product portfolio in Sri Lanka will be further expanded in the coming months with the introduction of several new models, including a range of fully electric vehicles.

GWM vehicles at the newly opened Experience Centre at Access Tower, Union Place, Colombo 02

With a legacy spanning over four decades, the David Pieris Group has earned a reputation as one of Sri Lanka’s most trusted automotive organisations, particularly for its comprehensive after-sales support and customer service excellence. Strengthening its commitment to GWM customers, DPA has already established a dedicated, state-of-the-art GWM service centre at No. 75, Hyde Park Corner, Colombo 02, supported by an expanding network of authorised service dealers across the island to ensure convenient and reliable customer care.

The state-of-the-art Flagship Experience Centre at
Access Tower, Union Place, Colombo 02.

Commenting on the opening, Mahesh Gunathilake, Director, David Pieris Automobiles, stated: “The opening of the GWM Flagship Experience Centre represents a significant milestone in our journey with the GWM brand in Sri Lanka. This is the country’s first dedicated state-of-the-art experience centre for GWM vehicles, offering customers the opportunity to experience world-class automotive technology, premium comfort and advanced safety features. GWM has successfully redefined modern mobility by delivering high-end luxury and innovation at an affordable price point, and we are proud to bring this exceptional experience to Sri Lankan motorists.”

GWM vehicles at the newly opened Experience Centre at
Access Tower, Union Place, Colombo 02

The opening of the flagship facility further reinforces David Pieris Automobiles’ commitment to expanding GWM’s presence in Sri Lanka, while providing customers with an unmatched ownership experience, backed by the Group’s renowned sales and after-sales expertise.

GWM vehicles at the newly opened Experience Centre at Access Tower, Union Place, Colombo 02

Customers interested in learning more about the GWM vehicle range, booking test drives or making pre-bookings can contact 011 7888 866, visit www.gwmsrilanka.lk or follow the GWM Sri Lanka by DPA Facebook page for the latest updates and promotions.

Rohana Dissanayake, Group Chairman and Managing Director, David Pieris Group of Companies, along with Mahesh Gunathilake, Director, David Pieris Automobiles (Private), cutting the ribbon to open GWM Flagship Experience Centre at the Access Tower, Union Place, Colombo 02.

One of first GWM customers receiving the keys from Mr. Rohana Dissanayake, Group Chairman and Managing Director, David Pieris Group of Companies

Business

Home Lands bets US$150m on Port City as it targets global property investors

Published

17 hours ago

2026/06/11

Sahan Weerasooriya

The Home Lands press conference held at Cinnamon Life - City of Dreams on June 9. From Left: Mario Offen - Deputy Director Sales and Marketing , Ashinsanie Weerasinghe - Head of Business Development and Marketing, Nalin Herath - Chairman and Managing Director, Amaya Herath - Executive Director, Rishad Mansoor - Deputy Director Marketing and Lanka Jayasinghe - Director Operations and Administration

Sri Lanka’s largest private real estate investment by Home Lands Group is set to test the country’s ability to attract foreign capital into the Port City Colombo project, with the upcoming unveiling of its US$150 million twin-tower residential development.

The company announced that its flagship project, Central Park Boulevard Port City Colombo, a 37-storey twin-tower development located within Port City’s Central Park District, carries an estimated end value exceeding US$300 million and has already sold about 50 percent of its units ahead of the official launch.

Speaking at a media briefing, Home Lands Chairman and Managing Director, Nalin Herath, said the project represents more than another luxury apartment development and is intended to position Sri Lanka within the international real estate investment market.

“The total investment is around US$150 million and the total value of the project is over US$300 million. This will generate a useful cash flow to the Sri Lankan economy,” Herath said.

The launch, branded as “The Grand Launch Weekend”, will be held from June 12 to 14 at Cinnamon Life and is expected to attract around 1,800 invitees, including business leaders, professionals, artists, celebrities and international guests.

Herath said changing conditions in regional property markets had created an opportunity for Sri Lanka to compete for international investors.

“The current geopolitical tensions in the Middle East have adversely affected segments of the property market in the Gulf region, particularly Dubai. This creates an opportunity for us to enter the global real estate market. Port City is the ideal location because it has the infrastructure and resources required to cater to that market,” he said.

His comments came amid growing confidence that world-class infrastructure would draw international capital into the Port City ecosystem.

Home Lands’ latest project therefore represents one of the most significant private-sector bets yet on Port City’s future growth prospects.

Responding to concerns regarding the source of investment flows, Herath said the necessary regulatory safeguards were already in place.

“Government regulations and the Port City Commission’s compliance frameworks ensure that the project attracts legitimate institutional and private funds,” he told The Island Financial Review in response to a question.

The development will comprise more than 640 residential units overlooking Port City’s central green park and waterfront district. Home Lands describes the project as Sri Lanka’s first high-rise residential development inspired by an international ultra-luxury lifestyle brand.

The company, which has delivered approximately 3,750 apartments and villas across Sri Lanka and has more than 2,200 units currently under construction, is positioning the project as a landmark investment capable of generating foreign currency inflows as well as creating thousands of jobs.

The unveiling will also mark one of the biggest real estate launches ever staged in Sri Lanka, with former Sri Lanka cricket captain Mahela Jayawardene serving as the project’s brand ambassador.

For investors and policymakers alike, however, the larger question extends beyond the launch itself: whether Port City can evolve from a high-profile development concept into a functioning international financial centre, as envisaged when the project was first conceived.

By Sanath Nanayakkare