Business
‘LG Ambassador Challenge’ announces first LG Ambassadors of Sri Lanka
Globally renowned electronics giant, LG, and the trusted Sri Lankan conglomerate, Abans Group, partnered with Korea Friends of Hope International, Sri Lanka (KFHI) to initiate the first ‘LG Ambassador Challenge’ in Sri Lanka. Spearheading this ground-breaking initiative are KFHI – Sri Lanka Chairman Choi and KFHI – Sri Lanka Secretary Lasitha Nanayakkara, who have been instrumental in formulating this partnership with the intention of uplifting the lives of Sri Lankans and aiding the development of rural areas in the country. The LG Ambassador Challenge program offered everyone the opportunity to do their part towards the improvement of their respective villages, and be recognised as the next rural-development innovator. This is a program currently conducted worldwide every year, and the goal was to commence this project as one that will be conducted annually in Sri Lanka too, to help Sri Lankan communities and better their lives. Sharing his thoughts on the initiation of this massive program, Nanayakkara stated, “The LG Ambassador Program takes place in other South Asian countries such as Bangladesh each year. The program has achieved much success by giving youth a platform to serve their countries and neighbourhood by identifying problems where they live and providing solutions to tackle and solve those issues. It was a huge goal of Korea Friends of Hope International to commence this project in Sri Lanka as well. With this induction, we hope to conduct the LG Ambassador program every year in Sri Lanka.” “Abans has consistently undertaken the responsibilities of bettering the lives of Sri Lankans, by way of innovative products, an ever-expanding portfolio of quality services and diligently carrying out CSR projects. The LG Ambassador program is a valuable opportunity for all Sri Lankans to bring forth inventive solutions to the concerns in their villages.
Abans is honoured to be a part of this program, as we aim to help the citizens of Sri Lanka lead fulfilling and convenient lives,” shared Abans PLC Chief Marketing Officer Buddhika Dharmawardena.
Business
SLT-MOBITEL achieves financial recovery in third quarter 2024
SLT-MOBITEL Group has reported a Profit After Tax (PAT) of Rs. 1,093 million for Q3 2024, compared to a loss of Rs. 1,543 million for the same period last year, demonstrating a significant 171% turnaround in bottom-line performance. At company level, Sri Lanka Telecom PLC (SLT) also recorded a positive PAT of Rs. 932 million for Q3 2024 compared to a Rs. 651 million loss last year, indicating a successful transition from loss to profit.
The Group has announced consolidated revenues for the quarter at Rs. 28.5 billion, a 3% increase, up from Rs. 27.7 billion in the previous year. Gross Profit showed a marked increase at Rs. 12.3 billion with a 24.8% increase compared to Rs 9.9 billion. The rise has been driven primarily by cost savings achieved through successful cost-saving initiatives implemented across the Group.
The Group’s EBITDA showed strong growth, reaching Rs. 10.5 billion during Q3 2024, an increase of 30.6% compared to Rs. 8 billion in the previous year. In addition, Operating Profit showed a marked increase at Rs 3.6 billion, a massive 551% growth compared to Rs 549 million last year.
On the cost side, the Group achieved significant reductions across multiple areas as at Q3 2024. Notable savings were realized in Annual Maintenance Costs (AMC) and repair expenses, contributing to substantial year-on-year costs reduction. Costs for the quarter (excluding depreciation and amortization) was Rs. 18 billion, a 8.3% reduction, from Rs. 19.7 billion in the previous year. Additionally, finance costs decreased by 18.1%, further supporting the positive financial performance.
At the company level, SLT achieved a revenue of Rs. 18 billion for the 3rd quarter of the year, an increase of Rs. 603 million, representing a 3.4% growth compared to Rs. 17.5 billion last year. Gross Profit also showed a robust increase of Rs. 1.6 billion with a 22.8% growth compared to Q3 2023. In addition, the company successfully managed operating expenses, achieving a reduction of Rs. 638 million, down 5.4% from last year contributed through a combination of reduced Annual Maintenance Costs, repairs and vehicle hiring expenses.
EBITDA growth of Rs. 1.2 billion, a 21.8% increase, indicated improved operational efficiency of the company. Operating profit surged to Rs 2.5 billion, signalling an impressive 299% growth compared to Q3 2023. The company successfully reduced its finance costs by 28.2% improving the bottom line for the quarter.
Most notably, the company has achieved a remarkable turnaround in PAT improving 243%, an increase of Rs. 1.6 billion compared to Q3 2023, demonstrating effective financial management and successful implementation of growth strategies. (SLT-MOBITEL)
Business
Tax collection measures contribute to increase in tax revenue in 1H 2024
However, share of revenue from direct taxes said to have reduced to 26.1 percent
by Sanath Nanayakkare
Apart from a slew of taxes that were imposed on individuals, corporations and withholding taxes on various monetary transactions with effect from January 2024, the strengthened tax collection measures also have contributed to the increase in state revenue, according to the mid-year fiscal report issued by the Ministry of Finance.
The report indicates that mandating financial institutions to submit details of individual taxpayers’ transactions to the Department of Inland Revenue has been a key contributor in this regard.
Apart from that, making electronic tax filing mandatory for individual income taxpayers, streamlining the refund process, expediting refunds of amounts paid in excess and, discouraging cash transactions by not allowing such transactions in one day or in a single transaction or in a single event in aggregate to Rs. 500,000 or more to be deducted as expenses for tax purposes also have helped accrue more revenue to the state coffers.
Further, several policy decisions made to strengthen tax administration such as the issuance of a regulation for the regular exchange of information by individuals including government agencies with the Commissioner General of Inland Revenue have brought its dividends on the revenue share of the government.
In nominal terms, the revenue collection from VAT increased significantly by 85.4 percent to Rs. 616.9 billion in the first half of 2024 compared to Rs. 332.7 billion in the same period of 2023, realizing 44.1 percent of the annual estimate for 2024. Revenue from VAT on domestic activities increased by 49.8 percent to Rs. 353.4 billion while revenue from VAT on imports increased significantly by 172.2 percent to Rs. 263.6 billion in the first half of 2024.
With the growth in revenue from VAT and from taxes on external trade, the share of revenue from direct taxes out of the total tax revenue has reduced to 26.1 percent in the first half of 2024 compared to 32.1 percent recorded in the same period of 2023. In the first half of 2024, the realization of tax revenue collection was 44.7 percent of the estimate of Rs. 3,820.0 billion for 2024
“In nominal terms, the revenue collection from VAT increased significantly by 85.4 percent to Rs. 616.9 billion in the first half of 2024 compared to Rs. 332.7 billion in the same period of 2023, realizing 44.1 percent of the annual estimate for 2024. Revenue from VAT on domestic activities increased by 49.8 percent to Rs. 353.4 billion while revenue from VAT on imports increased significantly by 172.2 percent to Rs. 263.6 billion in the first half of 2024,” the report stated.
From a macroeconomic perspective, the strengthened tax administration has had clear advantages. However, the reports indicates that the share of revenue from direct taxes out of the total tax revenue has reduced to 26.1 percent in the first half of 2024 without giving details as to how this has happened.
Business
Bank of Ceylon empowers “Aswesuma” beneficiaries to become entrepreneurs with digital banking
In a major step toward fostering financial inclusivity and entrepreneurial growth, Bank of Ceylon (BOC) has officially launched a comprehensive, nationwide programme to empower beneficiaries of the “Aswesuma” initiative. The programme is designed to equip beneficiaries with essential digital financial skills and foundational entrepreneurial knowledge, paving the way for sustainable financial independence.
Partnering with divisional secretariat divisions across Sri Lanka, BOC’s programme enables Aswesuma beneficiaries to access and utilise advanced digital banking solutions while building robust financial management capabilities. As a key part of the initiative, beneficiaries received free personalised debit cards to foster responsible financial practices, helping them manage their finances with greater confidence and security. Recognising the importance of financial knowledge and skills for building self-sufficient livelihoods Bank of Ceylon is advancing financial inclusivity in Sri Lanka, equipping communities with the skills and engage them to support sustainable national development.
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