Business
‘To Every Sri Lankan as One’
Amana Takaful Insurance, has successfully refreshed its brand identity with a fresh logo and a lively brand message that emphasizes its time-tested service orientation to all Sri Lankans.
Fueled by the notion that Amana Takaful, unlike conventional insurance, is a win-win for both the insurer and the insured, this refreshed identity opens profitable opportunities for all Sri Lankans. Thus, Amana Takaful Insurance’s refreshed message of “To Every Sri Lankan as One” can not only be deemed timely, but also very relevant to today’s societal context.
Chairman of Amana Takaful PLC Osman Kassim elaborated on the company’s new outlook: “Amana Takaful Insurance started 22 years ago with a capital of Rs 30 million. With some key strategic changes in our approach, we have now moved into the mainstream. “To Every Sri Lankan as One” essentially means we stand with all Sri Lankans. When something is inherently fair and good, people eventually realize it and come to it.”
Chairman Kassim adds: “‘Takaful’ means ‘to protect one another’. Customers of Amana Takaful have the opportunity of inheriting a portion of the insurance fund surplus, furthering Amana Takaful’s customer orientation towards every Sri Lankan, as one. Amana Takaful also adheres to ethics of the insurance industry practised for the last 250 years and believe they are essential and not negotiable. With the integration of insurance best practices, Amana Takaful has always been on par with the rest of the industry, if not better!”
Amana Takaful Insurance holds people-friendly ethical practices close to its heart, and is the only premier fully-fledged Takaful insurance company in Sri Lanka. Amana Takaful offers a complete range of Life and General insurance solutions as well as tailor-made health insurance policies to suit the overall health needs of the diverse segments of the Sri Lankan society.
All in all, Amana Takaful stands for protecting its customers in an ethical and people-friendly business model.
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.
-
Features5 days ago
When Sir John Kotelawala visited St. Joseph’s College
-
News5 days ago
SL will not be able to join BRICS right now but membership of its NDB bank okayed
-
Sports5 days ago
Pathum Nissanka; the ace up Sri Lanka’s sleeve
-
Features5 days ago
The Assassination of Mr Bandaranaike
-
News3 days ago
Harin drags Messi into poll mess
-
Features2 days ago
Adani’s ‘Power’ in Sri Lanka
-
Features5 days ago
America stands by its Man!
-
Opinion4 days ago
Sri Lanka’s missed opportunities