Business

Strong result from Dilmah in 2019/20 despite exchange rate hit

Published

6 years ago

2020/11/8

IPO investors richly rewarded with a Rs. 10,000 investment earning Rs. 8.6 million in dividends

Dilmah Ceylon Tea Company PLC (previously Ceylon Tea Services) has posted an excellent result within a challenging environment in the year ended Mar. 31, 2020, growing revenue eight percent and gross profit 14% over the previous year; but the bottom line declined two percent owing to what its chairman, Mr. Merril. J. Fernando called a “remarkable” 46% decline in the exchange rate.

Commenting that the outlook for the global economy appeared bleak, he said how long the corona virus will last God alone knows, adding “we can only pray for it to disappear soon and bring hope and comfort back to our homes and our lives.”

Dilmah, with the consent of its shareholders, has increased its contribution to the MJF Charitable Foundation from 10% to 15% of pre-tax profits to be spent towards addressing inequality and wider social and environmental concerns as a part of its core business. This will enable a significant increase in the foundation’s humanitarian operations.

The company’s key numbers for the year under review were: revenue up 8% to Rs. 11.61 billion, operating profit up 25% to Rs. 1.98 billion, pre-tax profit up 17% to Rs. 1.99 billion and the after tax profit down 2% to Rs. 1.56 billion. Dilmah’s total assets stood at Rs. 17.3 billion against liabilities of Rs. 4.97 billion.

Fernando, in his chairman’s review in the company’s recently published annual report, had drawn attention to the extraordinary rewards enjoyed by investors in what was then Ceylon Tea Services over the years. An investment of Rs. 10,000 in a thousand shares at the company’s initial public offering in 1982 had yielded Rs. 8.6 million in dividends and the original1,000 shares had increased to 20,000 via several bonus issues.

He has noted that the cost of an original ten-rupee share in the hands of the investor has as a result come down to fifty cents and the original 10,000-rupee investment is now valued at Rs. 531,000 at the current market price of the Dilmah share.

“Such is the power of Ceylon Tea in the hands of committed investors in the industry,” he has said.

It is not only investors who have benefited from Fernando’s conviction that “business is a form of human service.” He has said youth from the plantation community assisted by the MJF Foundation’s scholarship program have produced among others doctors, magistrates and chefs.

He says that the tea industry which is being written off by many, offers enormous potential to investors who believe in it. Government authorities responsible for tea can turn it around if they have a realistic vision for the industry, Fernando said welcoming recent interest and initiatives by government in finding solutions to longstanding issues in plantations and exports. Such efforts wold deliver benefit to the country’s economy and Ceylon Tea.

“If the tea industry is strategically managed in the hands of capable people with proven expertise, export earnings could well reach USD 5 billion within the next five years. Bulk tea exports should be discouraged and value added exports should be generously incentivised for the social end economic benefits they bring,” he said.

“Part of the additional income from value added export must be used to advertise and promote quality brands. This is likely to encourage bulk tea exporters to change course.”

All News Advertisement

Business

HNB Finance strengthens Board with four independent directors

Published

4 hours ago

2026/09/13

Thilina Walpola

Newly appointed HNB FINANCE PLC Independent Non- Executive Directors (from left): Renuke Wijayawardhane, Shanti Gnanapragasam, Nabiha Mohamed and Dr. Thisuri Wanniarachchi

HNB FINANCE PLC has strengthened its Board with the appointment of four Independent Non-Executive Directors, effective September 8, 2026.

The new directors are Renuke Wijayawardhane, Shanti Gnanapragasam, Nabiha Mohamed and Dr. Thisuri Wanniarachchi, who collectively bring extensive experience in financial regulation, banking, risk management, corporate finance, investment strategy, development finance and public policy.

Wijayawardhane, an Attorney-at-Law and capital market professional, retired in July 2025 as Chief Regulatory Officer of the Colombo Stock Exchange after more than 31 years with the Exchange. His experience covers securities regulation, corporate governance, market infrastructure and compliance.

Gnanapragasam has over four decades of banking experience spanning treasury, risk management, credit and trade finance. She currently serves as an Independent Non-Executive Director of Cargills Bank, Wealth Trust and Vision Fund Lanka.

Mohamed is a corporate finance and investment professional who previously served as Lead Transaction Advisor at the State-Owned Enterprise Restructuring Unit of the Ministry of Finance, where she led five divestiture transactions worth over US$600 million.

Dr. Wanniarachchi brings over a decade of experience in development finance, institutional reform and social protection, including work with the World Bank and the Government of Sri Lanka.

Business

Prime Residencies hands over The Palace Gampaha

Published

4 hours ago

2026/09/13

Thilina Walpola

Prime Group Chairman Premalal Brahmanage speaking at the event

Prime Lands Residencies PLC has completed and officially handed over The Palace Gampaha, described as the largest planned gated residential community in Gampaha, to its homeowners.

The development, which commenced construction in 2021, is located two kilometres from Gampaha town and 100 metres from the Colombo-Kandy main road.

Spread across 13.5 acres, The Palace Gampaha comprises 480 two- and three-bedroom apartments in a ground-plus-three-floor development, with prices starting from Rs. 27.5 million.

The project allocates about 80% of its land to landscaped areas and common facilities, while the remaining 20% is used for apartment development. Facilities include a swimming pool, gymnasium, clubhouse, library, community kitchen, laundry, mini-mart and a daycare centre managed by the Lyceum Group.

The fully gated community also incorporates solar power for common areas, underground electricity cabling and a sewage treatment plant with water recycling facilities.

Prime Residencies said all statutory approvals required for the handover had been secured, including certifications from the Condominium Management Authority and registration of the Condominium Plan and Deed of Declaration.

Prime Group Chairman Premalal Brahmanage said the project reflected the company’s vision of creating large-scale residential communities designed to enhance the quality of life of Sri Lankan families.

The project is the latest addition to Prime Group’s portfolio of more than 70 gated community and apartment developments.

Business

SLANA warns NVOCC business losing ground amid THC concerns

Published

4 hours ago

2026/09/13

Thilina Walpola

SLANA Chairperson Swabha Wickramasinghe presenting a memento to Minister of Ports and Civil Aviation Anura Karunathilaka at the eventually

Sri Lanka’s Non-Vessel Operating Common Carrier (NVOCC) sector is losing ground despite the expansion of the industry in several regional markets, Sri Lanka Association of NVOCC Agents (SLANA) Chairperson Swabha Wickramasinghe said.

Wickramasinghe, re-elected for a third consecutive term at SLANA’s ninth Annual General Meeting last week said the continued difficulty in collecting Colombo Terminal Handling Charges (THC) as a separate land-based cost was among the key challenges facing the industry.

She said the practice placed Sri Lanka at a competitive disadvantage as principals consider the overall economics of operating through Colombo.

“When Sri Lanka becomes less commercially attractive compared with other regional destinations, the consequences eventually reach our members,” she said.

Wickramasinghe said a committee had been proposed at a recent meeting with the Minister and Deputy Minister to evaluate the THC issue, urging the authorities to expedite its appointment and review.

She also called for an early solution to the problem of uncleared salt containers at the Port of Colombo, which has resulted in delays in releasing empty containers.

With more than 75 NVOCC lines operating in Sri Lanka, she stressed the sector’s importance to regional trade, particularly links with India and China.

Ports Minister Anura Karunathilaka said Sri Lanka should expand regional business while exploring areas such as bunkering, freight forwarding and e-commerce logistics.