Business
Import substitution boosts profitability for Royal Ceramics
New players expected to enter the lucrative industry with more than Rs. 15 billion worth investments
by Sanath Nanayakkare
According to a valuation note released by First Capital Research, Royal Ceramics (RCL group), the dominant local player in tile and sanitaryware products has turned out be a key beneficiary following the import restrictions employed by the government, which resulted in a complete import ban on all tile and sanitaryware products.
As a result, RCL’s pre-Covid 52% market share had surged across all segments to 75% in floor tiles and 82% in wall tiles.
RCL earnings growth had surged over 100% to reach Rs. 2 bn for the third quarter of financial year 2021 (3QFY21), compared to the Rs. 1 bn in 3QFY20 with 9MFY21 earnings expanding by 72% to Rs. 3.3bn.
Profitability was mainly supported by the surge in gross profit margins, reduction in finance cost and increased contribution from Group\s associate profits, FC Research stated.
“RCL’s gross profit margins for the quarter was enlarged by 236bpsYoY to 39% amidst strong growth in volume and economies of scale supported by higher capacity utilization nearing 100%.”
“Meanwhile, RCL’s EBIT (operating earnings over operating sales margin). and net profit margins jumped 424bps and 691bps respectively”.
“RCL plans to increase tile and bath ware capacity by 10% expansion in the existing plants while also building a new plant in order to further expand overall capacity by 20% during FY22E. New tile manufacturing plant is expected to target more price sensitive segment of the market,” the note added.
“The ceramic industry is expecting more than Rs. 15 bn in new investments, expanding industry production capacity with potential new players likely to enter the lucrative industry increasing competition over the next few years,”
“We expect RCL to maintain profitability of Rs. 4.5bn-5.0 bn in the next few years,” FC Research said.
Business
Mattala Wildlife Unit to boost revenue, tourism and investor confidence
The launch of a dedicated wildlife unit at Mattala Rajapaksa International Airport is expected to deliver significant economic benefits by improving aviation safety, strengthening eco-tourism and enhancing Sri Lanka’s investment appeal, Wildlife Conservation Department Director General Ranjan Marasinghe said.
Speaking at the signing of a Memorandum of Understanding between the Department of Wildlife Conservation and Airport and Aviation Services (Sri Lanka) Limited, Marasinghe said the initiative links conservation directly with national development and revenue generation.
“This is more than an administrative step—it is a forward-looking initiative that aligns conservation, aviation safety and national development in a single strategic effort,” he said.
He noted that wildlife management at airports is globally recognised as essential for reducing bird strikes and wildlife-related disruptions, which can lead to costly repairs, delays and operational losses.
By proactively managing such risks, the Mattala Wildlife Unit is expected to lower potential costs for airlines and airport operators while improving efficiency and confidence among carriers considering future operations.
Marasinghe said the airport’s proximity to premier tourism destinations such as Yala National Park and Udawalawe National Park, together with marine tourism opportunities including Blue Whale watching, gives Mattala a strong commercial advantage.
“This convergence of aviation and wildlife tourism creates an extraordinary opportunity,” he said, adding that the airport has the potential to become a major gateway for high-value eco-tourism.
Industry observers note that wildlife tourists generally spend more on guided safaris, hotels, transport and local experiences, generating stronger foreign exchange earnings and employment opportunities for surrounding communities.
Marasinghe said integrating environmental standards into airport operations would also improve Sri Lanka’s global image at a time when investors and international travellers increasingly value sustainability.
“By integrating environmental considerations into airport operations, we position Sri Lanka more favourably on the global stage, demonstrating that we are a nation committed to sustainability, responsibility and innovation,” he said.
He expressed hope that the Mattala model would be replicated at other international airports, creating long-term savings, stronger environmental governance and wider economic returns.
The Director General said the Department of Wildlife Conservation remains committed to supporting the national economy through new and meaningful avenues while protecting Sri Lanka’s natural assets.
“Conservation must also contribute to development,” he said, stressing that protecting biodiversity and generating growth can go hand in hand.
By Ifham Nizam
Business
Aitken Spence Elevators and CINEC usher in a new era for Sri Lanka’s elevator industry
Aitken Spence Elevators, in collaboration with CINEC Campus, recently held the Certificate Awarding Ceremony for the latest batch of trainees of the Elevator Serviceman Course at the Elevator Training Centre (ETC). The graduates were awarded their NVQ Level 3 certifications, marking a significant milestone in their professional journey within Sri Lanka’s vertical transportation industry.
The certification programme was developed in partnership with the National Apprentice and Industrial Training Authority (NAITA) and the Ministry of Vocational Training & Skills Development, ensuring trainees received industry-recognised qualifications, alongside strong practical competencies. The ceremony was attended by directors of both Aitken Spence and CINEC Campus, as well as staff members, lecturers, and invited guests of the graduating students
Anuka Prashan Pieris was recognised as the Most Outstanding Student of the batch in appreciation of his exceptional performance and commitment throughout the programme. The Elevator Training Centre plays a vital role in addressing the growing demand for skilled elevator service technicians through structured training and hands-on learning. The facility features Sri Lanka’s first Elevator Training Tower, offering trainees practical exposure aligned with both local and international standards.
All graduates of the current batch have already commenced their careers as technicians and supervisors at Aitken Spence Elevators. Their seamless transition into the workforce reflects the programme’s strong emphasis on developing job-ready professionals capable of contributing effectively from day one.
Business
Sterling Steels wins Merit Award at SLIA Annual Product Awards 2026
COLOMBO, SRI LANKA– Sterling Steels (Pvt) Ltd, a premier manufacturer of high-quality globally renowned steel roofing & cladding, announced it has been honored with a prestigious Merit Award at the Sri Lanka Institute of Architects (SLIA) Annual Product Awards 2026. The national recognition was awarded in the highly competitive Zinc-Aluminium Coated Profile Steel Sheet category, underscoring the company’s dedication to excellence, innovation, and superior quality in the Sri Lankan construction industry.
The award was presented during a grand ceremony held at the esteemed Nelum Pokuna Theatre, a key event in the nation’s architectural and construction calendar. The SLIA Annual Product Awards are widely regarded as a benchmark for quality and design excellence, with products rigorously evaluated by a panel of distinguished architects and industry experts. Receiving this Merit Award positions Sterling Steels among the top-tier suppliers of building materials in the country.
-
News7 days agoLanka faces crisis of conscience over fate of animals: Call for compassion, law reform, and ethical responsibility
-
News6 days agoWhistleblowers ask Treasury Chief to resign over theft of USD 2.5 mn
-
News6 days agoNo cyber hack: Fintech expert exposes shocking legacy flaws that led to $2.5 million theft
-
News3 days agoBIA drug bust: 25 monks including three masterminds arrested
-
Business4 days agoNestlé Lanka Announces Change in Leadership
-
News3 days agoBanks alert customers to phishing attacks
-
News4 days agoHackers steal $3.2 Mn from Finance Ministry
-
News7 days agoUSD 2 mn bribe: CID ordered to arrest Shasheendra R, warrant issued against ex-SriLankan CEO’s wife
