Business
JKH pays modest Rs. 0.50 dividend despite Rs. 1.7 bn. first half loss
John Keells Holdings PLC, the diversified conglomerate widely regarded as the strongest entity quoted on the Colombo Stock Exchange, Thursday announced a second interim dividend of 50 cents a share, on top of the first interim of one-rupee paid in November last year despite a group loss of Rs. 1.7 billion in the first half of the current financial year.
Analysts said that JKH’s strong balance sheet with a revenue reserve of nearly Rs. 65 billion had made this payment possible.
JKH Chairman Krishan Balendra said in his chairman’s review of the September quarter that the “group will follow its dividend policy which corresponds with the growth in profits, whilst ensuring that the company maintains adequate funds to ensure business continuity given the unprecedented nature of the current circumstances.”
He explained the dividend despite the negative bottom line to “the faster than anticipated recovery following the resumption of business activity in the country and the strong growth momentum witnessed across our group businesses with the exception of leisure.”
The declaration of this dividend reflects the cash generation capability of the Group’s diverse portfolio of businesses, he said.
The leisure segment of their business took the hardest blow with an EBITDA (Earnings Before Interest Tax, Depreciation and Amortization) of Rs. 2.6 billion in the first half of the current financial year.
Discussing this, he said although the Sri Lankan airport remains closed to-date for foreign arrivals, the resumption of domestic travel continued during the quarter, with all properties in the Sri Lankan Resorts segment recording an encouraging increase in month-on-month occupancy.
Despite the challenging operating environment, the City Hotels sector also exhibited a better than anticipated performance, primarily driven by the food and beverage and banqueting segments. However, the recent cluster outbreak of COVID-19 in Sri Lanka will impede this recovery should the current situation prevail, he warned.
Balendra summary of key operational and financial highlights of the September quarter was:
• The underlying performance of the Transportation, Consumer Foods, Retail and Financial Services industry groups continued its growth momentum witnessed in the latter part of the previous quarter, demonstrating a faster than anticipated recovery following the resumption of business activity in the country post the easing of lockdowns in May 2020.
• Group EBITDA excluding the Leisure industry group was Rs.4.50 billion during the second quarter of the year under review, which is a 15 per cent increase against the previous year [2019/20 Q2: Rs.3.91 billion].
• Given the strong recovery momentum in business activity and the generation of cash profits by the Group, a second interim dividend of Rs.0.50 per share, amounting to a payout of Rs.659 million, was declared to be paid on or before 7 December 2020. The declaration of this dividend reflects the cash generation capability of the Group’s diverse portfolio of businesses.
• The Leisure industry group continued to be impacted by the closure of the airport in Sri Lanka, although this has been mitigated, to an extent, by a resumption in domestic tourism, recovery in the banqueting, food and beverage segments and the opening of the airport in the Maldives in mid-July.
• The Frozen Confectionery, Beverage and Convenience Foods businesses recorded double-digit growth in EBITDA against the corresponding period of the previous quarter, continuing the trajectory witnessed in June.
• The Supermarket business continued its positive momentum with a strong rebound in sales and EBITDA, driven by the contribution from new outlets towards revenue growth and a pick-up in same store footfall post the easing of lockdown measures witnessed in the first quarter.
• Pace of construction at ‘Cinnamon Life’ continued to gain traction during the quarter. Post ascertaining the impact of COVID-19 on the overall timelines of the project to manage deliverables and the re-sequencing of work, it is expected that the hand-over of the residential apartments and office tower will commence on a staggered basis from the fourth quarter of 2020/21 onwards.
Business
Sri Lanka wins ‘Best Stand for Doing Business’ award at WTM 2024
Sri Lanka Tourism has once again showcased its global appeal and commitment to strengthening the tourism industry by winning the esteemed “Best Stand for Doing Business” award at the 2024 World Travel Market (WTM) in London competing with more 183 destination stands present at the show. It was presented to chairman Sri Lanka Tourism Buddhika Hewawasam by the Johnathan Hull, chairman of World Travel Market & Reed Exhibitions UK on November 6 at the Sri Lanka stand. The award underscores Sri Lanka’s innovative approach to promoting tourism and fostering partnerships with international trade partners, reaffirming its position as a key player in the global travel and hospitality industry.
The WTM, one of the world’s most prominent travel fairs, brings together tourism professionals from across the globe, facilitating business networking, and encouraging investment in the travel sector. This year, the Sri Lanka Tourism stand impressed judges and attendees alike with its visually captivating design, welcoming ambiance, and strategic layout that optimized business interactions. The stand featured immersive experiences showcasing Sri Lanka’s rich cultural heritage, pristine natural landscapes, and vibrant wildlife, setting the perfect stage for meaningful discussions and collaborations with international tourism professionals.
The “Best Stand for Doing Business” award is particularly significant as it reflects Sri Lanka’s commitment to building strong partnerships and boosting tourism following a period of unprecedented challenges. The Sri Lanka Tourism stand drew hundreds of visitors, offering them a taste of the country’s unique attractions and providing opportunities for in-depth business discussions. Key stakeholders from travel agencies, tour operators, and hospitality chains engaged in productive dialogues that promise to bring more travelers to the island.
“We are thrilled to receive this recognition, as it not only acknowledges the beauty and richness of our country but also validates our strategic efforts to position Sri Lanka as an accessible, desirable, and thriving destination for global travelers,” said Buddhika Hewawasam, chairman of Sri Lanka Tourism. “This award is a testament to the hard work and resilience of our tourism industry, and we look forward to strengthening partnerships that will make Sri Lanka a top choice for travelers worldwide.”
The award comes at a time when Sri Lanka has also been recognized as the best island destination in the world at the Wanderlust Reader Travel Awards, adding to the momentum for a promising year ahead. This dual achievement highlights the dedication of Sri Lanka Tourism in showcasing the island’s potential and its readiness to welcome the world.
Sri Lanka Tourism extends its heartfelt gratitude to the WTM organizers, participants, and all stakeholders who supported its efforts at this year’s fair. The team is optimistic that this recognition will inspire greater collaboration, attract more visitors, and contribute to the sustainable growth of Sri Lanka’s tourism sector.
(Sri Lanka Tourism Promotion Bureau)
Business
Eye-openers on reading and education disseminated at BCIS
Intellectual curiosity is the key to knowledge and wisdom and without an undying thirst for reading, which triggers such an urge, these invaluable personal assets could never be acquired. This thought provoking message was conveyed to nearly a hundred local primary and secondary students who were visitors to the Bandaranaike Centre for International Studies (BCIS), Colombo on October 25th by Senior Lecturer, Sri Jayewardenepura University, Dr. Madhubashini Disanayake Ratnayake.
Dr. Disanayake Ratnayake was speaking on the subject: ‘The Role of Reading in Shaping Futures in an Interconnected World.’
The event was launched, in view of National Reading Month, by the BCIS, which is celebrating the 50th year of its founding this year. Besides imparting to the students the value of the reading habit, the BCIS also intended to introduce the students to its well-equipped library, which is an invaluable resource base for those desirous of seeking a well-rounded education. For those in pursuit of cutting-edge knowledge in particularly International Relations, the BCIS Library is a veritable ‘must-go-to’ institution.
The relevant programs were conducted by the BCIS staff under the guidance of the institution’s Executive Director, Ms. Priyanthi Fernando.
The students were taken on a tour of the BCIS Library and other knowledge resources of the institution with the aim of stimulating in them the reading habit and a zest for knowledge-seeking. Such projects couldn’t have come at a better time than the present when local education at school level in particular is mainly examination-oriented.
The following are some key ‘take-away’ points, Dr. Madhubashini presented to her young audience: ‘Although exams are important, they are by no means the end-all and be-all of education. Being well-read, on the other hand, opens the door to in-depth and wide-ranging knowledge which will lead to the intellectual self-sufficiency of any individual, young or old.
‘Acquiring knowledge through continuous reading is, accordingly, a life-long process. It leads to knowledge empowerment even in one’s old age and the acquiring of ‘paper qualifications’ is not essential at the end of this process.
‘It is important to read whenever there is a possibility to do so. Reading even half a page of a literary work per day that proves enjoyable will serve the cause of one’s literacy. This points to the importance of time-management.
‘Acquiring membership of the country’s important libraries, including the National Library and its branches, will prove a great fillip in this process of educational empowerment.’
President, Sri Lanka Library Association and Librarian /Registrar, CFPS Law School, Dr. Preethi Liyanage, who also addressed the students was equally emphatic about the need for enthusiastic and continuous reading. The branches of the National Library which are spread far and wide in Sri Lanka are a boon that should be tapped effectively he pointed out.
Dr. Liyanage stressed the following: ‘Acquiring membership of the town branch of the National Library is a most inexpensive process. The annual fee that should be paid by a student is very nominal and it is not compulsory that a student be a resident of the Colombo District to be a member of the ‘Colombo Public Library’ any longer. Anyone from anywhere in the island is eligible to be a member of the ‘parent library’.
‘Literacy and knowledge is not a matter of acquiring high-sounding formal qualifications. Literary greats of Sri Lanka of yesteryear, such as Martin Wickremesinghe and G.B. Senanayake, could not boast of long primary and secondary school careers. However, they were avid readers who made good use of the country’s libraries. Their knowledge and literary greatness derived entirely from their undying reading habit.
‘Next time you wish to give someone a present, don’t give him or her a cake or sweetmeats which only invite illness. Present them with a valuable book instead.’
Lynn Ockersz
Business
A case for data-driven decision-making for plantations
By Ifham Nizam
In an era where sustainable agriculture has become a global priority, Dr. Chandra Embuldeniya, Honorary Fellow at the National Institute of Plantation Management and Founding Vice-Chancellor of Uva Wellassa University, addressed plantation professionals on the transformative potential of data-driven decision-making (DDDM) for plantation sustainability.
Speaking at the “Professional Members Day” hosted recently by the National Institute of Plantation Management, Embuldeniya outlined a path toward a resilient and efficient agricultural future, guided by precision technology and collaborative innovation.
Embuldeniya’s presentation, titled “Data-Driven Decision Making for Plantation Sustainability,” resonated with Sri Lanka’s agricultural leaders and policy makers. He emphasized that with global food demand on the rise, sustainable and efficient farming practices have become more essential than ever to conserve resources, protect ecosystems, and support biodiversity.
In this effort, he argued, plantations must adopt data-driven methods that leverage real-time analytics, precision agriculture, and Internet of Things (IoT) technology to optimize resources, cut waste, and increase resilience against climate change.
“By utilizing data to guide our decisions, we can revolutionize plantation management,” he added. “The combination of DDDM and precision agriculture allows us to optimize resources and foster sustainability in ways traditional methods cannot.”
Central to his presentation was the concept of precision agriculture, an innovative approach that uses data to tailor farming practices to the unique needs of each plantation. Technologies such as Geographic Information Systems (GIS), Variable Rate Technology (VRT), and remote sensors help growers monitor and manage critical factors like soil moisture, nutrient content, and crop health.
This data-driven approach, Embuldeniya noted, enables plantations to address specific challenges efficiently, leading to higher yields, lower costs and reduced environmental impact.
Embuldeniya highlighted that the adoption of DDDM has far-reaching sustainability benefits, allowing plantations to reduce chemical inputs, lower water usage and avoid excess fertilizer application. By using data from IoT devices and precision tools, plantations can better manage pest control and optimize their fertilization schedules, promoting both soil health and biodiversity.
This approach, he explained, also helps plantations adapt to climate change. With predictive analytics, growers can make informed decisions on planting schedules and crop rotations based on historical data and current environmental conditions, ensuring resilience in the face of changing weather patterns.
Embuldeniya illustrated the power of machine learning and big data analytics through a case study on corn yield prediction in the United States. By analyzing data from IoT sensors and satellite imagery, farmers in the Midwest achieved significant yield increases by adjusting practices to weather conditions and soil health data. This success, he argued, is a testament to the impact of DDDM and IoT integration in modern agriculture, providing valuable insights for Sri Lanka’s own plantation sector.
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