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Hayleys Fabric PLC ‘set to steer through’ stiff economic conditions

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First Capital Research says considering the solid order book of Hayleys Fabric PLC and and gradual shift in orders from China to other destinations through the China-plus-one strategy, they broadly maintain their revenue target for Hayleys Fabric PLC at LKR 66.4 bn (previous-LKR 66.2 bn) for FY23 while marginally lowering their expectation for FY24 to LKR 75.5Bn (previous- LKR 76.1 bn).

“Topline of Hayleys Fabric significantly increased by 105.9%YoY (+11.7%QoQ) to LKR 16.8Bn compared LKR 8.2Bn recorded in 2QFY22 largely owing to the steep depreciation of LKR. Revenue in dollar terms too grew by 13.3%YoY to USD 45.5Mn cf. USD 40.2Mn in 2QFY22 backed by the sizeable contribution stemming from tier-1 customer segments such as Nike along with improved efficiency levels while, capacity enhancements through the latest addition SAT further strengthened the topline performance. Moreover, overall apparel exports during the July-Sep period grew by 13.8% compared to the same period last year reflecting the revenue growth of Hayleys Fabric. However, the apparel exports reverted with a negative growth of 12.9%YoY during Oct-22, as currently largest apparel importers in the West such as US and UK are facing severe economic challenges which has squeezed down the clothing budget of consumers resulting in a slow-down in orders from many brands”, First Capital said.

Several other facts mentioned in First Capital Research’s report are as follows.

“Earnings of Hayleys Fabric displayed an uptick of 27.3%YoY and recorded at LKR 501.4Mn backed by strong topline performance aided by LKR depreciation. Accordingly, revenue for the quarter climbed high by 105.9%YoY and recorded at LKR 16.8Bn with the improvement in apparel exports during the quarter while LKR depreciation further strengthened topline growth. On account of escalated cost of sales GP margin edged down by 145bps and recorded at 10.7% compared to 12.1% in 2QFY22. However, earnings contracted by 68.9% on a QoQ basis as a result of mounting raw material cost pressures and finance cost. Taking into consideration the high inflation levels at key export destinations and local market and higher tax impact, we lower our earnings target for FY23E to LKR 3.6Bn (-29% from previous target) and FY24E to LKR 4.1Bn (-26% from previous target). Accordingly, fair value for FY23 is estimated at LKR 35.0 (previous – LKR 60.0) and for FY24E is estimated at LKR 45.0.

“Suppliers of Hayleys fabric from China charged higher on raw materials owing to the economic setback and tight supply conditions which resulted in a sharp surge in cost of sales by 109.3%YoY (+14.6%QoQ) to LKR 15.0Bn cf. LKR 7.2Bn in 2QFY22 while LKR depreciation further aggravated cost pressures. As a result, GP margin skid low by 145bps to 10.7% while it declined by 226bps on a QoQ basis. Furthermore, high inflationary environment caused EBIT margin to slid lower by 113bps to 5.6% compared to 6.7% in 1QFY23. However, aided by the declining global crude oil prices First Capital expects the costs of synthetic yarn to decrease favouring Hayleys Fabric.”



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Sri Lanka eyes India grid link as ADB pushes Pan-Asia energy integration

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Priyantha Wijayatunga speaks at the Samarkand Energy Forum of the ADB.

Sri Lanka’s long-discussed electricity grid connection with India is gaining renewed momentum, as the Asian Development Bank (ADB) intensifies efforts to promote cross-border energy integration across the region.

At the ADB Annual Meetings in Samarkand, Senior Director for Energy, Priyantha Wijayatunga, identified the proposed India–Sri Lanka grid interconnection as the most promising avenue to strengthen the island’s power sector. The concept dates back to the 1970s, when Sri Lanka, following the completion of the Mahaweli Development Project, even explored the possibility of exporting electricity. However, rapid economic growth and rising domestic demand shifted the country toward energy imports.

Today, with energy security and cost pressures mounting, the idea has regained urgency. “The time is right,” Wijayatunga said, stressing that political will and financing will be decisive. While undersea transmission cables make the link technically viable, costs remain a major challenge. The ADB, he confirmed, stands ready to support Sri Lanka as a development partner in advancing the project.

Sri Lanka’s prospects are closely tied to a broader regional vision being advanced by the ADB through its Pan-Asia Power Grid Initiative (PAGI). The initiative aims to transform how energy is produced, shared, and consumed across Asia and the Pacific by promoting cross-border electricity trade and grid connectivity.

PAGI is designed not merely as a collection of projects, but as a systems-level integration platform that connects national grids into subregional and eventually continent-wide networks. Its core objectives include bridging energy gaps, enhancing energy security, integrating large-scale renewable energy, and strengthening resilience across interconnected systems.

A key pillar of PAGI is leveraging the region’s resource complementarity. Countries in South Asia, for instance, possess uneven but highly complementary energy resources—hydropower in Nepal and Bhutan, and solar and wind potential in India. By linking grids, countries like Sri Lanka could tap into these diverse energy sources, reducing dependence on costly fossil fuel imports while improving reliability.

ADB estimates suggest that deeper regional power trade in South Asia could yield substantial economic benefits, including lower system costs and more efficient energy distribution. The initiative also envisions mobilizing up to $50 billion in investments by 2035, expanding transmission infrastructure, and improving electricity access for millions.

For Sri Lanka, integration into such a regional grid could be transformative. A connection with India would allow the country to import affordable electricity during shortages, stabilize supply, and support its transition toward cleaner energy. It could also open the door to future participation in a wider South Asian power market.

With feasibility studies and policy discussions already underway, and with ADB backing firmly in place, Sri Lanka’s long-envisioned grid connection with India now appears more achievable than ever.

As the Samarkand meetings underscore the urgency of regional cooperation in an increasingly uncertain energy landscape, Sri Lanka stands at the threshold of a new chapter—one where energy security is strengthened not in isolation, but through connection.

by Sanath Nanayakkare in Samarkand, Uzbekistan

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Oceans in crisis: Sri Lanka hosts ‘Sharks International 2026’ amid stark warnings

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Sri Lanka this week finds itself at the centre of a deepening global ocean crisis, as leading scientists, policymakers and conservationists gather in Colombo for Sharks International 2026—a high-profile summit unfolding against mounting evidence that the world is rapidly losing control of its marine ecosystems.

The conference, now underway at the Bandaranaike Memorial International Conference Hall, marks the first time the prestigious forum has been hosted in Sri Lanka. But beneath the diplomatic language and scientific exchanges lies a far more urgent reality: the collapse of shark and ray populations is no longer a distant environmental concern—it is an unfolding economic and food security emergency.

More than 100 million sharks and rays are being wiped out globally each year, largely due to overfishing and illegal, unreported and unregulated (IUU) fishing. In Sri Lanka, the situation is particularly acute. Of the 105 species recorded in local waters, nearly 70 are now threatened with extinction, a statistic that scientists warn should set off alarm bells far beyond conservation circles.

Deputy Minister of Environment Anton Jayakody did not mince words when addressing the gathering, framing the issue not just as an ecological tragedy but as a looming economic shock.

“This is not just about saving species. It is about protecting the foundation of our fisheries, our food systems, and the livelihoods of thousands of Sri Lankans. If shark and ray populations collapse, the consequences will ripple through the entire marine economy,” he said.

Sharks and rays sit at the top of the ocean food chain. Their disappearance disrupts the delicate balance of marine ecosystems, triggering cascading effects that can decimate commercially valuable fish stocks. For a country like Sri Lanka—where coastal communities depend heavily on fisheries—this is not an abstract threat but a direct challenge to economic stability.

Yet despite years of warnings, critics argue that global action has been dangerously slow, fragmented, and often undermined by competing commercial interests.

By Ifham Nizam

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SriLankan Airlines leads with two category wins in South Asia at PAX Awards

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SriLankan Airlines led with two wins in the Airline Award category for South Asia, securing both Best Overall Passenger Experience and Most Improved Airline at the PAX International Readership Awards 2026 held recently in Hamburg, Germany. The awards celebrate the industry’s best and brightest, with winners determined by votes from PAX’s global readership.

The Best Overall Passenger Experience – South Asia award recognises an airline that delivers an exceptional onboard experience to passengers across multiple service areas, including meal service, inflight entertainment and seating. At SriLankan Airlines, this entails meticulous planning at every stage of the passenger journey, supported by collaboration among multiple teams and continuous monitoring and refinement.

Maria Sathasivam, Manager Product Development of SriLankan Airlines, commented on the achievement, stating, “we are incredibly honoured to receive yet another independent endorsement of the service we deliver. Every interaction matters to us, and we are committed to consistently meeting and exceeding passenger expectations, and it is truly rewarding to see these efforts recognised.”

SriLankan Airlines continues to enhance the end-to-end travel experience, from booking through to arrival. Ongoing digital upgrades, including improvements to the airline’s website and app, are designed to deliver a more intuitive and seamless customer experience, supported by AI-driven features and expanded ancillary offerings. At its hub, the Bandaranaike International Airport in Colombo, the airline has also expanded self-check-in and bag drop facilities for added convenience.

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