Business
Extraordinary impairment charges drive Ceylon Tea Brokers into the red
Company however able to declare a modest dividend
Ceylon Tea Brokers PLC, listed on the Colombo Stock Exchange as the first standalone tea broking company in 2010, has reported a negative bottom line in the year ended Mar. 31, 2020, despite posting an overall performance its chairman, Mr. CPR Perera, saw as encouraging in the face of lower production and declining tea prices.
The loss was the result of an extraordinary impairment charge of Rs. 119.85 million (Rs. 21.45 million the previous year), on account providing for loans and advances to tea suppliers in accordance with SLFRS standards. This has been charged to the company’s marketing expenses of Rs. 133.3 million.
“This had a significant impact on the company’s bottom line (down to a loss of Rs. 62.5 million from a profit of Rs. 21.54 million the previous year) resulting in a much lower PAT compared to 2018/19,” Perera said.
However, the company’s tea business had posted a profit of Rs. 21.5 million during the year, down from Rs. 115.3 million a year. Despite the negative bottom line, the directors have proposed a modest dividend of eight cents per share against the previous years 35 cents per share involving a payout of Rs. 14.5 million absorbing 67.75 of the distributable profit.
Perera reported that they had done well to post a 18% increase in the volume of tea it handled in the year under review although the value of the tea marketed had shown only a marginal increase on account of the decline in tea prices during the year.
Ceylon Tea Brokers’ fully owned subsidiary, Logicare (Pvt) Ltd. had commence operations during the year. This company operates state-of-the-art warehousing complex providing over 12,000 pallet locations. It primary caters to the warehousing requirements of the parent’s producer clients adding value at both ends of the supplier chain.
“With state-of-the-art infrastructure, modern equipment, cutting edge technology and a team of expert, Logicare is equipped as one of the best one-stop logistic service providers with a strong ability to serve various industry verticals,” Perera said.
“During the year under review Logicare partnered with some of the leading companies in Sri Lanka as well as Multi-national corporations as their strategic 3PL (third party logistics) service provider covering various industry verticals such as FMCG (fast moving consumer goods), apparel, stationary, telecommunications and e-commerce.”
He was confident that this company, in the context of the growing demand for 3PL services globally, would significantly contribute to group revenue and profitability in the future.
The company’s CEO/Director Waruna de Silva explained that the impairment charges arose from some tea producers scaling down operations of account of lower production and operations but on a positive note, a few factories that have closed down had re-opened.
Ceylon Tea Brokers origins go back to 2005 when the Captal Alliance Group acquire the long established produce broking firm of De Silva, Peiris and Abeywardena subsequently listing it on the CSE.
The company’s major shareholders are Ashthi Holdings (Private) Ltd. (30.39%), Mr. WAT Fernando (26.78%), Jetwing Travels ( 18.68%), Ms. Shiromal Cooray (5.98%), Associated Electrical Corporation (2.96%), and Mr. CPR Perera/Mrs. D. Perera (1.92%)
The directors of the company are: Messrs. CPR Perera (Chairman), RJN de Mel (Deputy Chairman), WAT Fernando (MD), DGW de Silva (CEO), KHS Deshapriya (COO),Ms. Shiromal Cooray,, HMS Perera, BRL Fernando, DH Madawala, KAD Fernando, HTD Nonia and Z Mohamed.
Business
EU’s new anti-greenwashing rules pose major challenge for Sri Lankan exporters
Countdown to September 2026 begins
Sri Lankan exporters selling into Europe may soon face one of the most significant regulatory shifts in recent years as the European Union prepares to enforce sweeping new rules aimed at eliminating ‘misleading’ environmental and sustainability claims.
The regulation, known as the Empowering Consumers for the Green Transition Directive (EmpCo) – Directive (EU) 2024/825, will become fully enforceable across all EU member states from September 27, 2026. While the directive is primarily designed to protect European consumers from so-called ‘greenwashing,’ and it carries important implications for exporters worldwide, including those in Sri Lanka.
Compliance experts warn that many local businesses remain largely unaware of the new requirements despite their potential impact on market access, brand reputation, and regulatory compliance.
The directive introduces a simple but demanding principle: companies must be able to substantiate environmental and sustainability claims with credible evidence. Generic descriptions such as ‘eco-friendly,’ ‘green,’ ‘sustainable,’ ‘responsible,’ ‘carbon neutral,’ or ‘climate friendly’ may no longer be used freely unless they can be verified through reliable data and supporting documentation.
For Sri Lankan exporters, this represents a significant shift. Sustainability claims increasingly appear on product packaging, websites, social media campaigns, annual reports, tourism marketing materials, and corporate communications. Under the new framework, such claims could face scrutiny from regulators, consumers, retailers, and civil society groups.
The directive also places particular emphasis on future environmental commitments. Claims such as ‘Net Zero by 2040’ or ‘Carbon Neutral by 2030’ may require businesses to demonstrate clear implementation plans, measurable milestones, and systems for monitoring progress rather than relying on aspirational statements alone.
An environmental compliance expert told The Island Financial Review that this transforms sustainability from a communications exercise into a governance issue. “Responsibility will no longer rest solely with sustainability departments. Company directors, senior executives, marketing teams, procurement professionals, and compliance officers will all have roles to play in ensuring that public claims can withstand regulatory scrutiny. The potential costs of non-compliance are considerable. Under the directive, penalties may include fines of up to four percent of annual turnover generated within the relevant EU member state, restrictions on marketing activities, increased regulatory investigations, and challenges from consumer organisations and commercial partners.”
“The reputational consequences may prove even more damaging. In highly competitive export markets, trust has become a critical business asset. Companies found to be making unsubstantiated environmental claims could face long-term damage to relationships with buyers, retailers, and consumers.”
“The timing is particularly important for Sri Lankan businesses because compliance preparations, reporting frameworks and adjustments are needed before the enforcement date arrives.”
“Businesses supplying European markets are therefore being encouraged to begin assessing their exposure now rather than waiting until the last minute. Early preparation could help exporters safeguard market access, maintain buyer confidence, and strengthen their competitive position in an increasingly sustainability-conscious global economy.”
“For Sri Lanka’s export sector, the message from Europe is becoming increasingly clear: sustainability claims will no longer be judged by how compelling they sound, but by how convincingly they can be proven,” he said.
As the countdown to September 2026 begins, exporters may need to ask themselves a critical question: Are their sustainability claims ready for a new era of accountability?
By Sanath Nanayakkare
Business
University of West London opens Sri Lanka’s first full UK university branch campus
The University of West London (UWL) has formally opened the University of West London Sri Lanka Branch Campus, the country’s first full UK university branch campus, marking a landmark development in Sri Lanka’s higher education sector.
The University of West London Sri Lanka Branch Campus is designed to bring a UK university learning experience closer to students in Sri Lanka. The campus is operated by ANC Campus, a pioneer in the higher education sector in Sri Lanka with over two decades of experience in delivering internationally recognised education.
The University of West London Sri Lanka Branch Campus gives students the opportunity to study towards world-class UK degrees while remaining close to home. Academic delivery, assessment and quality assurance will be aligned with University of West London standards, with the University maintaining academic oversight of its courses and awards. Students will have access to UWL-approved programmes, academic support, learning resources and a campus environment designed to promote academic success, confidence and employability.
Business
Xiaomi Store powered by Abans opens at One Galle Face Mall
Xiaomi Sri Lanka, marked a significant day in the brand’s local journey with the launch of the all-new Xiaomi 17T and the grand opening of the new Xiaomi Store powered by Abans at One Galle Face Mall, Lower Ground.
This occasion reflects the brand’s growing presence in the country and its commitment to bringing smarter technology, connected devices and immersive customer experiences closer to Sri Lankan consumers.
Held under the theme “Step into a smarter world with Xiaomi,” the launch event welcomed media, partners, technology enthusiasts and customers to experience Xiaomi’s latest innovation and wider smart ecosystem. The new store at One Galle Face Mall powered by Abans has been designed to give customers a hands-on experience across Xiaomi smartphones, smart home products, lifestyle technology and connected devices, supported by Abans’ strong retail presence and customer service network.
Commenting on the milestone, Kain Wang, Country Head, Xiaomi Sri Lanka, said, “17th June is a significant day for Xiaomi in Sri Lanka as we celebrate two important milestones together: the launch of the Xiaomi 17T and the opening of our new Xiaomi Store powered by Abans at One Galle Face Mall. This reflects the strength of Xiaomi’s journey in Sri Lanka and our continued commitment to offering innovation, performance and smarter lifestyle experiences to local consumers. With Xiaomi 17T, we are bringing advanced Leica imaging, powerful performance and long-lasting battery life to users who want to do more with their smartphones. At the same time, our new store creates a dedicated space for customers to experience the Xiaomi ecosystem in a more personal and engaging way.”
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