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Export sector likely to be hit by proposed increased Corporate Tax rate

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By Hiran H.Senewiratne

The higher 30 per cent Corporate Tax proposed by the International Monetary Fund, to be unveiled in the upcoming 2023 budget, is likely to threaten the resilience and robust performance of the crucial export sector, especially in the case of high potential ICT services, CSE analysts warned yesterday.

The overall manufacturing export sector is taxed at a supportive 14 per cent and the IT services export sector is exempted as a special policy to boost investments, jobs and foreign exchange earnings and for tapping high growth potential, given the competence in our talent and Sri Lanka’s geographic location.

Therefore, manufacturing sector counters in the CSE will likely be affected due to the proposed 30 per cent corporate tax hike in the upcoming budget, analysts said.

The CSE began on a negative note due to heavy selling pressure noted in blue chip counters, especially Expolanka Holdings, Lanka IOC, LOLC and many other counters yesterday, stock analysts added.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 304.9 points and S and P SL20 declined by 132 points. Turnover stood at Rs 3 billion with one crossing. The crossing was reported in JKH, which crossed 3.5 million shares to the tune of Rs 709 million, its shares traded at Rs 129.50.

In the retail market, seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 536 million (3.6 million shares traded), Lanka IOC Rs 319 million (1.5 million shares traded), CIC (Non Voting) Rs 170.7 million (2.5 million shares traded), ACL Cables Rs 113 million (1.2 million shares traded), Browns Investments Rs 110 million (18 million shares traded), CIC Holdings Rs 98.7 million (1.1 million shares traded) and JKH Rs 46.9 million (364,000 shares traded). During the day 91.3 million share volumes changed hands in 30000 share transactions.

CSE’s primary and secondary market transactions recorded a net inflow of foreign investments amounting to US$ 97 million during the eight months ending August 2022.

Gross official reserves stood at U$ 1.7 billion at the end of August 2022. This included the swap facility from the People’s Bank of China, equivalent to around US $ 1.4 billion, which is subject to conditionalities on usability.

Total foreign assets, which consist of gross official reserves and foreign assets of the banking sector, amounted to US$ 5.7 billion at end August 2022.

The exchange rate continued to remain stable through August 2022, following the introduction of daily permissible bands in mid-May 2022. Accordingly, during the year up to October 6, 2022, the rupee recorded a depreciation of 44.8 per cent against the US dollar.

Yesterday, as usual the Central Bank- announced US$ buying rate was Rs 359.23 and selling rate Rs 369.96.



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Dialog delivers strong growth, stronger national contribution in FY 2025

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Dialog Axiata PLC announced, Friday 6th February 2026, its consolidated financial results (Reviewed) for the year ended 31st December 2025. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).

Group Performance

The Group delivered a strong performance across Mobile, Fixed Line and Digital Pay Television businesses recording a positive Core Revenue growth of 16% Year to Date (“YTD”). Group Headline Revenue reached Rs179.6Bn, up 5% YTD, despite the continued strategic scaling down of low-margin international wholesale business. In Q4 2025, Revenue was recorded at Rs46.5Bn up 2% Quarter-on-Quarter (“QoQ”) and 2% Year-on-Year (“YoY”).

The Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) reached Rs86.0Bn up 30% YTD supported by Core Revenue performance and Cost Rescaling Initiatives. On a QoQ basis Group EBITDA demonstrated a modest growth to record at Rs23.0Bn up 2% QoQ with an EBITDA margin of 49.5% in line with the Revenue performance. Group EBITDA margin reached 47.9% for FY 2025, up 9.2pp.

Group Net Profit After Tax (“NPAT”) reached Rs20.8Bn for FY 2025, up 67% YTD mainly resulting from robust EBITDA growth, despite higher tax and net finance costs. Normalized for forex impact, NPAT growth was recorded at +>100% YTD to reach Rs22.1Bn. On a QoQ basis NPAT grew 3% to reach Rs5.9Bn resulting from strong EBITDA performance.

On the back of strong operational performance, the Group recorded Operating Free Cash Flow (“OFCF”)

of Rs49.3Bn for FY 2025 up >100% YTD.

Dividend Payment to Shareholders

In line with the dividend policy and financial performance of the Group and taking into account the forward investment requirements to serve the nation’s demand for Broadband and Digital services, the Board of Directors of Dialog Axiata PLC at its meeting held on 6th February 2026, resolved to propose for consideration by the Shareholders of the Company, a dividend to ordinary shareholders amounting to Rs1.50 per share. The said dividend, if approved by shareholders, would translate to a Dividend Yield of 5.0% based on share closing price for FY 2025. The dividend so proposed will be considered for approval by the shareholders at the Annual General Meeting (AGM) of the Company, the date pertaining to which would be notified in due course.

Company and Subsidiary Performance

At an entity level, Dialog Axiata PLC (the “Company”) continued to be the primary contributor to Group Revenue (76%) and Group EBITDA (74%). Aided by sustained growth in the Data segment and cost-rescaling initiatives, Company revenue was recorded at Rs135.8Bn for FY 2025, up 18% YTD, EBITDA rose 32% YTD to reach Rs63.6Bn. On a QoQ basis, Q4 2025 Revenue was recorded at Rs34.8Bn, down 1% QoQ due to a reclassification of Hubbing Revenue, while EBITDA decline 1% QoQ to record Rs17.0Bn, largely attributable to network restoration costs and donations made in relation to the Cyclone Ditwah relief efforts. Furthermore, NPAT was recorded at Rs15.6Bn for FY 2025, up 41% YTD. Normalised for forex impacts, the company NPAT was up +>100% YTD to reach Rs17.0Bn. On a QoQ basis, Company NPAT was recorded at Rs4.5Bn, down 6% QoQ.

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Ceylinco Life’s Pranama Scholarships reach 25-year milestone

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Ceylinco Life has announced the launch of the 25th consecutive edition of its flagship Pranama Scholarships programme, marking a significant milestone in the company’s long-standing commitment to recognising and rewarding excellence among the children of its policyholders.

Under the 2026 programme, the life insurance market leader will present scholarships with a total cumulative value of Rs. 22.7 million, continuing a rewards initiative that has now been conducted without interruption for a quarter of a century. Since its inception, the Ceylinco Life Pranama Scholarships programme has benefitted 3,466 students across the country, representing a total investment of Rs. 240 million in nurturing academic achievement and outstanding performance in sports, arts and other extracurricular pursuits.

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Sri Lankans’ artistic genius glowingly manifests at Kala Pola ‘26

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The spirit of Sri Lanka as it was ably captured by an artist.

The artistic genius of Sri Lankans was amply manifest all over again at ‘Kala Pola ‘26’ which was held on February 8th at Ananda Coomaraswamy Mawatha Colombo 7; the usual, teeming and colourful venue for this annual grand exhibition and celebration of the work of local visual artists.

If there is one thing that has flourished memorably and resplendently in Sri Lanka over the centuries it is the artistic capability or genius of its people. It is something that all Sri Lankans could feel a sense of elation over because from the viewpoint of the arts, Sri Lanka is second to no other nation. With regard to the visual arts a veritable dazzling radiance of this inborn and persisting capability is seen at the annual open air ‘Kala Pola’.

A bird of Sri Lanka created from scraps of iron waste.

All capable visual artists, wherever they hail from in Sri Lanka, enjoy the opportunity of exhibiting their work at the ‘Kala Pola’ and this is a distinctive ‘positive’ of this annual event that draws numberless artists and viewers. There was an abundance of paintings, sketches and sculptures, for instance, and one work was as good as the other. Ample and equal space was afforded each artist. Its widely participatory and open nature enables one to describe the exhibition as exuding a profoundly democratic ethos.

Accordingly, this time around at ‘Kala Pola ‘26’ too Sri Lankans’ creative efforts were there to be viewed, studied and enjoyed in the customary carnival atmosphere where connoisseurs, local and foreign, met in a sprit of camaraderie and good cheer. Many thanks are owed once again to the George Keyt Foundation for the presentation of the event in association with the John Keells Group and the John Keells Foundation, not forgetting the Nations Trust Bank, which was the event’s Official Banking Partner. The exhibition was officially declared open by Chief Guest Marc-Andre Franche, UN Resident Coordinator in Sri Lanka.

By Lynn Ockersz

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