Business

JAAF objects to govt. plans to withdraw Gazette No 2041/10 of Licensing of Shipping Agents Act

Published

3 years ago

2023/01/21

The Joint Apparel Association Forum (JAAF) is perturbed to learn that the government is planning to withdraw Gazette No 2041/10 dated 17th October 2017 of the Licensing of Shipping Agents, Freight Forwarders, Non-Vessel Operating Common Carriers and Container Operators Act, No 10 of 1972, which has been protecting importers and exporters from anti-competitive practices of service providers for many years, a JAAF press release said.

The release adds: ‘Gazette No 2041/10 which is the amended Gazette No 1842/16 of 27th October 2013 reconfirmed four cardinal principles to protect both importers and exporters from service providers who may charge exorbitant fees in addition to freight for the carriage of goods. The four principles of the Gazette that upheld free market values were:

Principle 1 – the cost of carriage of containers from origin to destination must be identified as all-inclusive freight without dividing them into land costs and freight components.

Principle 2 – the service provider can only recover costs incurred from the use of the service to whom the service was provided, and not from a third party, with no such contractual liability.

Principle 3 – goods that landed at port could only indicate “Freight Pre-Paid” or “Freight Collect”. The concept of zero freight was not allowed.

Principle 4- in the case of imports to Sri Lanka the only charge permissible outside the freight was the Delivery Order (DO) fee. All other costs had to be calculated in the all-inclusive freight.

‘Gazette No 1842/16 dated 27th October 2013 was further enhanced by Gazette No 2041/10 to strengthen the role of Director General, Merchant Shipping (DGMS) for the effective implementation of setting only a Delivery Order fee outside the freight cost.

‘However, to the dismay of all importers and exporters of the country, including the apparel industry represented by JAAF and the Sri Lanka Manufacturers and Exporters of Rubber Products (SLAMERP), the Minister of Ports issued the new Gazette No 2302/24 of 20th October 2022 introducing a maximum delivery order fee and new additional charges of US$8/ Cubic Meter under a broader category of a “cost recovery charge”. Thus, contravening the cardinal principles and protections guaranteed to Sri Lankan importers and exporters, curtailing economic activity and driving up the costs of all purchases.

‘The entire import and export industry, including JAAF, vehemently objected to the regulations introduced under Gazette No 2302/24. Our opposition to the newly published Gazette is based on the following reasons:

The Gazette violates the core principle of all-inclusive freight cost that requires the contracting party to bear the full cost of such freight.The Gazette permits freight forwards and shipping agents to charge fees from third parties who are not party to the original contract.

New additional charges will undoubtedly increase the cost of freight, for both imports and exports, which will lead to higher costs of living for the public, and reduce the competitiveness of exports, at a time when export growth is crucial to the recovery of the economy.

‘Moreover, to the further dismay of importers and exporters, on 5th January 2023, the minister tabled a supplement in Parliament to amend the Licensing of Shipping Agents Act No 10 of 1972 to allow himself the authority to set Delivery Order and other fees, whereas the previous Gazette demanded the service providers to obtain the approval of DGMS to do so.

‘The new regulations under Gazette No 2302/24 allow the minister to fix charges on transactions between private parties. By taking over the powers to himself of punitively fixing charges—at his own will. Rather than be a regulator to protect the weaker party in the absence of equal bargaining power, should the stronger party win the confidence of the minister the weaker party can be crushed.

‘While JAAF commends the minister’s promise on the 13th of January 2023 to withdraw Gazette No 2302/24 of 20th October 2022, the industry is alarmed to learn that the ministry secretariat is planning to withdraw Gazette No 2041/10 of October 17th, 2017 as well. The original piece of legislation which carries the globally accepted cardinal principles of markets, shipping, and trading. These principles are reflected in the President’s vision for the country to follow a path of a Social Market Economy and prove to have very serious consequences for the country.

‘JAAF would like to reiterate that globally accepted market-friendly legislation should not be overlooked or withdrawn without reason solely based on the urging and request of a few service providers and at the expense of industries that contribute to the country’s GDP and critical foreign exchange earnings. This move will subject all industries to punitive charges making all export sectors uncompetitive leading to a loss of orders (which is already at a 25-30% year-over-year dip), dampening investor confidence and creating a negative business environment for local entrepreneurs. Most importantly, this move will increase costs to importers, adding to the already unbearable cost of living.

‘Therefore, JAAF urges the government to protect and uphold the Gazette No 2041/10 dated 17th October 2017 of the Licensing of Shipping Agents, Freight Forwarders, Non-Vessel Operating Common Carriers and Container Operators Act, No 10 of 1972, in the interest of importers, exporters and the citizens at large.’

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Business

Dialog delivers strong growth, stronger national contribution in FY 2025

Published

2 hours ago

2026/02/10

Sahan Weerasooriya

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.

Business

Ceylinco Life’s Pranama Scholarships reach 25-year milestone

Published

2 hours ago

2026/02/10

Sahan Weerasooriya

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.

Business

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

Published

2 hours ago

2026/02/10

Sahan Weerasooriya

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