Business

Managing investor perception of business confidence seen as vital for Sri Lanka

Published

5 years ago

2021/09/29

Sahan Weerasooriya

Interview with Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director Aitken Spence PLC

By Lynn Ockersz

A priority for the Sri Lankan economy is to gain monetary, financial and fiscal stability and to gradually implement policy changes rather than to expect swift changes overnight, especially for key export industries that bring forex earnings into the country. Going forward, a concerted effort should be made to improve our ranking on the Ease of Doing Business and the Logistics Performance Index (LPI). What matters in the short term is to manage investor perception of business confidence, Deputy Chairman and Managing Director, Aitken Spence PLC Dr. Parakrama Dissanayake told The Island Financial Review in the course of an interview.

The Aitken Spence Group has performed remarkably well in the 1st Quarter of this year. What are the main keys to your success?

Aitken Spence PLC made an impressive comeback in the first quarter by recording a 145% increase in Profit Before Tax (PBT) and it was driven by the non-tourism companies of the Group that includes maritime and freight logistics, renewable energy, elevator agency, money transfer services, printing and packaging, plantations, apparel, insurance and maritime education and management. The diversification of business and our international presence in eight countries, has been a main contributing factor to achieve a compelling performance amidst many setbacks particularly impacting the tourism sector.

From the onset, we have demonstrated purposeful leadership through team effort, we have relied on our collective knowledge, innovation and insight which has helped us to navigate and will continue to rise above this tumultuous environment.

Going forward, what would you recommend as the main ways in which the Sri Lankan economy could be revived?

A priority for the Sri Lankan economy is to regain the monetary, financial, fiscal stability and gradually implementing policy changes than expecting swift changes overnight especially for key export industries that bring forex earnings into the country.

In addition, to expand our export products and services. When we look at the past two decades, we notice that Sri Lanka has a low growth of exports and lack of export-oriented investment, particularly FDI when compared to other countries in the region. We must reduce red-tape, build our infrastructure, innovativeness and make crucial technology transitions as these will determine our ability to compete with other countries in the region. The success of this will also depend on proper educational and training efforts.

A concerted effort should be made to improve our ranking on Ease of Doing Business and the Logistics Performance Index (LPI). What matters in the short term is to manage investor perception on business confidence.

From a private sectors perspective, Aitken Spence is embracing business transformation and upgrading skills of our employees to better equip them for the future.

What is the current status of your palm oil sector? Have the issues surrounding this sector been cleared up?

The issues remain unresolved. We are confident that the Government will find a pragmatic solution.

What are the keys to the success of your Strategic Investments sector?

The key success has been our strategy to cautiously diversify and balance investments to be less dependent on one or few businesses which has proven to be successful especially when facing the ongoing pandemic.

Our significant investments in renewable energy which were recent additions to the portfolio has been a key success to the Group’s strategic investments sector. We introduced Sri Lanka’s first waste to energy plant that was launched this year. This project came about with a sustainable solution to the waste management problem which is a complex and long-running issue in the Colombo city. Further investments were made this year to expand our portfolio in hydropower and in line with the collective efforts of the Government and the private sector to produce clean energy sustainably.

The printing arm of Aitken Spence was the first green printing facility in South Asia and continues to raise the benchmark in the industry.

Moreover, the plantations segment provided a substantial boost to the Group’s strategic investments sector by recording its highest ever profit from inception due to its balanced portfolio of diversification. The segment commenced commercial production of four varieties of berries under the brand “Berry Much”. Another first in Sri Lanka to cultivate and market the full range of berries. The plantations segment also entered into a shareholder agreement with SIM Leisure Group to develop and operate a world-class ESCAPE adventure theme park.

What would be your main priorities in your Tourism Sector once a degree of normality has been established in the country?

To improve resilience in Sri Lanka Tourism, priority should be given to urgent matters such as working towards a recovery plan and better coordinated efforts between all stakeholders to achieve this common goal. With this in mind, a main priority for us is to ensure that our employees across four countries in the Group’s tourism sector have completed the inoculation (both doses) and even those indirectly linked to the industry. This is critical and one of the ways to restore traveller confidence.

We are also revisiting our product offerings in line with the changing thinking pattern of international tourists centred on their safety and well-being. We will focus on a more differentiated, experiential product offering and direct engagement for customers as compared to the traditional accommodation offering. In this business transformation process, we are embracing technology that captures customer needs that would further elevate customer experience and support destination Sri Lanka.

With our hotels presence not just in Sri Lanka but in the Maldives, Oman and India; we will continue to strengthen our operations in those countries and look for greater opportunities. Our hotels in the Maldives did relatively well and has certainly cushioned the blow on the Group’s tourism sector.

We are also concerned with sustaining the trained human resources within the tourism industry as with the current situation many are moving out of the industry and new entrants to the industry have substantially dropped. When the situation has improved, our concerted efforts would be to attract people into the tourism industry.

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Business

AIA delivers strong first half results in 2026; double-digit growth across key financial metrics

Published

13 hours ago

2026/09/5

Thilina Walpola

The Board of AIA Group Limited (the “Company”) is pleased to announce the Group’s financial results for the six months ended 30 June 2026. Growth rates are shown on a constant exchange rate basis unless otherwise stated:

New business performance and embedded value

Value of new business (VONB) of US$3,212 million, up 10 per cent overall and 14 per cent excluding Thailand(1)

Record high annualised operating ROEV of 18.0 per cent, up from 15.8 per cent in full year 2025

EV Equity of US$83.4 billion, up 6 per cent per share over the first half on an actual exchange rate basis

IFRS earnings

Operating profit after tax (OPAT) of US$4,163 million, up 13 per cent per share

AIA now expects to exceed OPAT per share CAGR target of 9 to 11 per cent from 2023 to 2026(2)

Record high annualised operating ROE of 17.5 per cent, up from 15.5 per cent in full year 2025

Cash generation and capital returns

Underlying free surplus generation (UFSG) of US$3,935 million, increased by 10 per cent per share

Net free surplus generation (net FSG) of US$2,758 million, up 12 per cent per share

US$3.6 billion returned to shareholders in the first half through dividend and share buy-back

Interim dividend increased by 10 per cent to 53.90 Hong Kong cents per share

Lee Yuan Siong, AIA’s Group Chief Executive and President, said:

“AIA has delivered another strong performance in the first half of 2026, with double-digit growth across our key financial metrics, while continuing to return substantial capital to shareholders. VONB reached a record high of US$3.2 billion with growth across all distribution channels, and all reportable segments excluding Thailand. The Group has achieved 17 per cent CAGR since the first half of 2023(3), demonstrating consistently strong demand for AIA’s professional advice and differentiated products.

“At the core of our unrivalled distribution platform is our market-leading Premier Agency. I am delighted that AIA has once again been ranked the number one Million Dollar Round Table (MDRT) multinational company globally. We have held this position for a record 12 consecutive years and we have more than double the number of MDRT members of our nearest competitor. In the first half of 2026, our Premier Agency achieved strong VONB growth of 11 per cent excluding Thailand(1). Our extensive network of strategic distribution partners further expands our market reach and generated an 18 per cent increase in VONB, supported by very strong performance in both the bancassurance and independent financial adviser (IFA) and broker channels.

“Strong new business, together with disciplined management of our in-force portfolio, has supported sustained growth in recurring earnings with OPAT per share up by 13 per cent in the first half. As a result, we expect to exceed our 9 to 11 per cent OPAT per share CAGR target for 2023 to 2026(2). UFSG, the Group’s core measure of operating cash generation, increased by 10 per cent per share. After allowing for new business investment, net FSG increased by 12 per cent per share. In accordance with our prudent, sustainable and progressive dividend policy, the Board has declared a 10 per cent increase in the interim dividend to 53.90 Hong Kong cents per share. These achievements demonstrate that our financial strategy is working as intended.

“Asia remains the most compelling growth opportunity for life and health insurance. Powerful structural tailwinds across the region continue to create substantial demand for our professional advice and differentiated products and underpin the exceptional long-term prospects for AIA’s business. I am confident that AIA’s disciplined execution of our strategic priorities will continue to deliver long-term sustainable value for all our stakeholders.”

Business

British Council Sri Lanka launches soft skills workshops to elevate learning and empower communication

Published

13 hours ago

2026/09/5

Thilina Walpola

The British Council team answering questions on Corporate English Solutions from leading corporates about professional development skills courses

The British Council Sri Lanka has launched Corporate English Solutions (CES), tailored to the Sri Lankan corporate and education ecosystem, aimed at helping organisations strengthen workplace communication and professional development.

The launch event took place recently at the NH Collection, Colombo 3, gathering corporate partners, clients and education stakeholders throughout the country.

CES extends the British Council’s long-standing work in English language education and teacher training into a dedicated offering for the corporate sector. The launch introduced two new components to the British Council’s presence in Sri Lanka such as public workshops and teacher training programmes, open to learners and educators beyond the organisation’s existing corporate and academic partners. Guests at the event were shown a short video introducing Corporate English Solutions before the formal proceedings began.

Talal Meer, British Council Regional Business Development Director, South Asia, welcomed guests and introduced the British Council’s team in Sri Lanka. In his remarks, Meer set out the scope of the CES launch, covering the introduction of public workshops in Sri Lanka, the rollout of teacher training programmes, and an overview of the CES product portfolio. Meer’s role covers educational partnerships in the South Asia region, and his address framed the Sri Lanka launch within the British Council’s broader regional strategy.

Business

Ogilvy Group tops award tally at ‘Dragons of Sri Lanka’ 2026

Published

13 hours ago

2026/09/5

Thilina Walpola

Ogilvy Group Sri Lanka delivered a standout performance at the recently concluded Dragons of Sri Lanka 2026 Awards, securing a total of nine awards comprising two Gold Dragons, one Silver Dragon and six Black Dragons, among the festival’s highest overall award tallies. Gold Dragon wins for Phoenix Ogilvy and Ogilvy Digital, together with the seven additional recognitions across multiple categories, highlighted Ogilvy’s ability to combine creativity, strategic thinking and commercial effectiveness to deliver business results.

Organised by the 4As Sri Lanka, the third edition of Dragons of Sri Lanka shortlisted more than 50 agencies and corporates, making it one of the country’s most competitive marketing communications awards. These local awards, along with the chapters in Malaysia and Pakistan are part of the Dragons of Asia platform, one of the region’s leading programmes for marketing communications effectiveness, with entries being judged on strategy, originality, execution and measurable results.

Ogilvy Digital accounted for eight awards in total, including a Gold Dragon in the Business & Trade Marketing category, and a Silver Dragon in the Innovative Idea or Concept category. The Agency additionally received six Black Dragons across the categories of Innovative Idea or Concept, Business & Trade Marketing, Content Creation, Small Budget, Event or Experiential, and Brand Trial or Sales Generation.

Commenting on the achievement, Sajith Weerasinghe, Chief Operating Officer of Ogilvy Digital, said, “These recognitions reflect the breadth of capabilities we’ve built across strategy, creative, content, experience design, technology and performance marketing. The fact that the work was recognised across so many different disciplines demonstrates our ability to apply creativity to a wide range of business challenges and objectives. We’re proud that this achievement spans multiple clients, categories and types of work, reflecting both the versatility of our people and our commitment to delivering results.”