Colombo (LNW): Sri Lanka’s key corporates continue to suffer following the Covid -19 outbreak and man made economic crisis.
Listed Sri Lankan corporates in consumer-goods retail, power generation and homebuilding will be among the most affected if the economic crisis deepens or is sustained for a prolonged period, market analysts said.
Significant cost inflation affecting demand and profitability, import restrictions disrupting operations, and high interest rates are key risks faced by domestic corporates in the next 18 months, they pointed out.
According to analytical reports, several analysts project that most other corporates will be able to weather the current economic downturn, supported by their presence in defensive industries, weakened competition, strong balance sheets, and adequate liquidity.
The December 2022 quarter earnings of listed companies suffered their first decline since 2020 by 44% to Rs. 96.4 billion, according to First Capital Research.
The results were for 281 listed companies and First Capital said the dip was owing to sluggish performance primarily in the Capital Goods (-82.6%YoY to Rs. 5 billion), Transportation (-87%YoY to Rs. 3 billion), Telecommunications (-226.8%YoY to a loss of Rs. 9.6 billion) and Diversified Financials (-38.9%YoY to Rs. 20.3 billion) segments.
The December 2022 quarter also puts an end to seven consecutive quarters of earnings growth enjoyed by the companies.
However upbeat quarterly performance was only witnessed in the Energy (14,183.9%YoY to Rs. 12.8 billion), Banking (38.9%YoY to Rs. 30 billion), Food, Beverage and Tobacco (12.3%YoY to Rs. 26.6 billion) and Utilities (28.1%YoY to Rs. 2.1 billion) sectors.
First Capital said Capital Goods saw an 82.6%YoY decline to Rs. 5 billion largely driven by the poor performance of Browns (-3430.4%YoY) and HAYL (-99.6%YoY) due to the significant rupee depreciation which caused a significant increase in the cost of materials
The Transportation sector recorded an 87%YoY decline to Rs. 3 billion primarily led by Expolanka Holdings (-87%YoY) due to the reduction in operating volumes across both air freight and ocean freight products,
Telecommunications sector also witnessed a downfall in net income by 226.8%YoY to a loss of Rs. 9.68 billion largely led by Dialog (-280.8%YoY) .
On the other hand, Diversified Financials sector earnings dipped by 38.9%YoY to Rs. 20.3 billion mainly due to the losses made in LOLC (-41.8%YoY).
This was a result of a significant impairment adjustment for its fair value measurement of financial assets primarily in the financial services and manufacturing and trading segments.
The lacklustre performance in this sector during the quarter was also driven by an increase in corporate tax rates to 30% from 24% w.e.f. effective from October 2022.
The Energy sector recorded a growth of 14,183.9% YoY to Rs. 12.8 billion largely driven by excellent performance of Lanka IOC which recorded an increase in earnings of 825.4% YoY to Rs. 8.2 billion.
The Banking sector witnessed a profit surge of 38.9%YoY to record Rs. 29.9 billion led by Commercial Bank of Ceylon which saw a significant increase in net income by 68.2% YoY to Rs. 8.8 billion.
The Food, Beverage and Tobacco sector earnings gained by 12% to Rs. 26.5 billion due to improved performance in DIST (193.3%YoY) and MELS (125.3%YoY) which were aided by high food inflation.
Addressing the 30 year development plan of the Colombo North Port workshop, on Friday (21) in Colombo, President Ranil Wickremesinghe emphasized that the government’s intention is to make Sri Lanka an air and sea hub in the region. The country has to focus on its future in the next 25 years on how to make Sri Lanka a developed country, he added.
The President also stressed that the attention should be drawn to the development in India, Pakistan, Iran, and the entire Makran coast, in assessing the role that Sri Lanka.
President Wickremesinghe also highlighted the adjustments to be taken in making Sri Lanka the hub of the Indian Ocean when the whole logistics and transportation in the region changes with the Chinese involvement in the East to West Railways in the African nation.
The President also revealed that by 2050, India will be the most populous country in the world from 1.4 billion increasing to 1.7 billion people. The industrialization of India is on a fast track, especially in some areas such as Gujarat, Maharashtra and especially Tamil Nadu.
Highlighting the importance of probing the development in India to find the connectivity that’s going to take place between India and Sri Lanka, President Wickremesinghe pointed out the opportunities that Sri Lanka would receive.
This event was attended by Minister of Minister of Ports, Shipping and Aviation Mr. Nimal Siripala de Silva, Chief of Staff to the President and Senior Adviser on National Security Mr. Sagala Ratnayake, Secretary of Ministry of Ports, Shipping and Aviation Mr. K. D. S. Ruwanchandra, Chairman of the Sri Lanka Port Authority Mr. Keith D. Bernard, Directors of AECOM Infrastructure and Environment UK Ltd, Past Chairmen of the Port Authority and other Senior officials.
Following is the full speech made by President Ranil Wickremesinghe at the 30 Year Development plan of the North Port of Colombo workshop on Friday (21) at Bandaranaike Memorial International Conference Hall (BMICH).
I must first commend the Minister and the Sri Lanka Port Authority for the work they have done. This ministry is now called the Ministry of Shipping and Aviation. Some people have asked me why don’t we split it and have two Ministries, one for shipping and one for aviation. I said no, our intention is to make Sri Lanka an air and sea hub. So we will have one Ministry of Shipping and Aviation. So we’ve got to think differently and I think the Minister is the best person to be in charge.
Sri Lanka has to think of the future, what we will do in the next 25 years, how we are going ahead to make this a developed country. We have to look at the developments in India, in Pakistan, in Iran, and total Makran coast, in assessing the role that Sri Lanka has to play as an important hub.
So in addition to Colombo, we have the Galle Port, which has great potential for tourism, the Hambantota Port and the Trincomalee Port. With the Trincomalee Port, we are discussing with India on the development of the Trincomalee Port on the basis that in the next 25 years there will be vast development in the Bay of Bengal, both on the Indian side, the Bangladeshi side, Malaysia and even Myanmar.
So we have to look at the Trincomalee Port and also its capacity to be a point for cruise tourism in the Bay of Bengal. Hambantota at the moment we have the port functioning not at its full capacity, but the development in Hambantota in the next 10 – 15 years, where about 4000 acres will be set aside just for manufacturing not taking into account the development of agriculture and fisheries. This will mean and the fact that there’s going to be at least one refinery indicative that the activities there will increase.
We have the airports which we are developing. Katunayake airport, which has to be further developed, Mattala airport, which has to be commercially viable. Then with those two airports, we’ve just opened up Palali and development of Hingurakgoda as the main domestic airport for the Eastern region and the North Central Province.
So within this it’s a role that the North port has to play. We have to think now of what the development should be. The SLPA and the consultants have given us a report on the feasibility of the north port. We have to remember one thing only that what is going to take place in India, what’s the development in Pakistan and what’s the development going to be in Iran.
Those three will decide the capacity, the number of TUs that we can have, the number of containers, the units we have would depend on that. As it is now, people have a very bright forecast for India, and that’s possible if it can be achieved.
By 2050, India will be the most populous country in the world from 1.4 billion it will be up to 1.7 billion people. The industrialization of India is happening fast, especially in some areas. You find Gujarat, Maharashtra and other one in the Southern India, especially in Tamil Nadu.
But this is the beginning. From there it should spread to other areas. So industrialization manufacturing is now taking place in India. It still hasn’t reached the level that China reached somewhere in 2010.It still has to go there. So if at all at some stage it will be that the progress will be not arithmetic but geometrical progression.
So we will have the development in India. Then what is the connectivity that’s going to take place between India and Sri Lanka. Our closest point is in the north. Are we going to have a role on role of ferries? Are we going to have more permanent structures? These are issues that we have to resolve and that will also determine the viability of our ports, especially of the port of Colombo. So in looking at the port there’s only two issues which came to my mind. Firstly is the environment, especially the impact on fishing that we have to take seriously. Because before you start building you have to get the support of the people in the area.
Secondly, we are also discussing with India. But at the end of it the projections show that the development will be fast and there’ll be a need for more, certainly a larger capacity for containers. Then we may have to make adjustments that we will know we’ll be going into India and having talks with them. So we will have an idea of what is the low growth scenario and what is the high growth scenario and where and where will it take place. Because India also has to develop its port, but Sri Lanka’s advantage is the port we have.
Secondly is Pakistan, though it may be going through a financial crisis now like us in time to come when you look at the population, it has a great capacity for development, followed by Iran. And if Iran goes ahead with the Chabahar Port which will join up to Central Asia and Russia, then Makran coast itself is something to look at. So these are all areas we have to think of development.
In the meantime, remember that the Chinese are undertaking east to West Railways in Africa together with the African nations. One which will go from Kenya all the way to West African coast and another which will most probably go through Congo. So the whole logistics and transport in the region will change and we have to take that into account and make whatever adjustments we do now to ensure that Sri Lanka becomes the hub of the Indian Ocean. We can do it, we should do it, and we did that over a thousand years ago. I’m sure we make up our mind, go ahead. So I must thank the Minister for all the effort that he has taken in and we can also start discussing what the future steps should be.
Colombo (LNW): In the wake of allegations of bribe taking amounting to Rs250 million to delay the legal process Sri Lanka is to file a case in Singapore against the shipping company of MV X-Press Pearl over the disaster in Sri Lankan waters today.
The Attorney General’s Department said that the case will be filed in a commercial court in Singapore.The case is to be filed today (Monday) to seek compensation from the company in a hurried move by the Attorney Generals’ Department. .
X-Press Pearl was a Singapore-registered container ship which caught fire off the coast of Colombo, in May 2021.
The vessel was engulfed in flames by 27 May and declared a total loss. It was still afloat, and the fire was thought to be under control by Sri Lankan firefighters by the late hours of 27 May 2021.
After burning for 12 days, the vessel sank on 2 June as it was being towed to deeper waters.The incident was considered the worst marine ecological disaster in Sri Lankan history for the chemical products that spilled.
According to X-Press Feeders, salvage operations to remove the wreck began in November 2021.As of 15 June 2021, about 40 dead turtles were reported to have washed up on the shore.
In addition to turtles, many species of fish, whales, and at least six dolphins also washed up with multiple burn marks.
Sri Lanka witnessed what is considered one of the worst marine environmental disasters after the Singapore-flagged container ship caught fire in Near Colombo Port.
The vessel, only three months after being commissioned, caught fire some 16 kilometers off Colombo on May 20, 2021, while transporting 1,500 containers including 25 tonnes of nitric acid.
The fire that continued for nearly two weeks resulted in a massive spillage of damaged containers, microplastics, plastic pellets, chemicals and other harmful substances into the sea.
Following the disaster, the Marine Environment Protection Authority (MEPA) appointed a committee of experts comprising professors and other relevant top public officials to assess the damage.
Earlier, the MEPA said it has provided all necessary documents to the Attorney General’s Department to prosecute the ship owner or the operator or the ship’s agents in Sri Lanka under the Criminal Law, in terms of Section 26 of the Prevention of Maritime Corruption Act.
As the approval of the Cabinet of Ministers was previously given to continue the litigation process in Singapore, the Attorney General’s Department recently mentioned that it is proceeding with the legal matter accordingly.
However, the committee of expert lawyers appointed to look into the matter has suggested that the prosecution be done in Sri Lanka to recover the estimated US$ 6.2 billion in damages.
The decision to continue the legal proceedings in Singapore attracted criticism as it was deemed a very costly move.
The MEPA, however, explained that the Australian law firm, which is assisting the Attorney General’s Department with the civil suit to claim compensation, has advised that carrying out the litigation process in Singapore is favourable to the island nation.
Colombo (LNW): The Department of Examination is set to hold a special discussion today (24) regarding the evaluation of the answer scripts of the 2022 G.C.E. Advanced Level Examination.
Accordingly, the paper marking supervisors have been called in to the Department in this regard, said Exams Commissioner General Amith Jayasundara.
The practical exams related to subjects Home Economics, Carnatic Music, Drama and Theatre Arts in Sinhala/Tamil/English mediums have been completed thus far, the Commissioner General said, adding that steps will also be taken to conduct the practical exams for subjects Dancing, Bharatanatyam, and Oriental Music as soon as possible.
Colombo (LNW): The Federation of University Teachers’ Association (FUTA) made its position over President Ranil Wickremesinghe’s controversial statement against university teachers’ decision to refrain themselves from marking G.C.E. Advanced Level Examination’s answer scripts.
Whist denouncing what the Union described as a ‘threatening’ response by President Wickremesinghe, the FUTA laid down four reasons in detail for resorting to the action of not joining the paper marking process in a statement.
Colombo (LNW): A lawsuit will be filed at a court in Singapore over the MV X Press Pearl disaster seeking compensation for the damages, the Attorney General’s Office said.
According to AG Sanjaya Rajaratnam, the matter has already been handed over to a law firm in Singapore.
Earlier, the Cabinet approved the move, and Justice Minister Rajapakshe told media that a lawsuit will be filed over the disaster at a foreign court.
Meanwhile, the AG’s Office noted that the amount of compensation demanded for the damage will be notified soon.
Colombo (LNW): “Voice For Democracy In Sri Lanka” urged all members of Parliament not to enact the government’s proposed “Anti-Terrorism Bill” in what they described as democracy and the rule of law being the priority.
In a statement, the Voice For Democracy In Sri Lanka reminded that the country has suffered immensely under the current Prevention of Terrorism Act (PTA) for over four decades, and it is incumbent upon all MPs to right the wrongs of the past and get this bill right.
“As politicians holding power, we appeal to you to do the right thing with moral conviction and integrity. This is one such moment we hope that public interest, political honesty, and respect for the rule of law will triumph over self-interest,” the statement read.
Colombo (LNW): The heat index continues to strike on a ‘caution’ level at some places in North-Western, Northern, North-Central and Eastern provinces and Moneragala, Ratnapura and Hambantota districts, totally covering fifteen districts, the Department of Meteorology said in an advisory statement.
Meanwhile, showers or thundershowers will occur at several places in Northern, North-Central, Eastern, Uva, Sabaragamuwa, Central and North-Western provinces during the afternoon or night, and fairly heavy showers above 50mm are likely at some places, the Department said in its weather forecast today (24).
Showers or thundershowers will occur at a few places elsewhere during the afternoon or night, and showers may occur in the Western province and in Galle, Matara, Jaffna and Mannar districts during the morning too, it added.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas off the coast extending from Kankasanthurai to Matara via Mannar, Puttalam, Colombo and Galle. Showers or thundershowers may occur at a few places in the other sea area around the island during the night.
Winds:
Winds will be south-westerly over sea area around the island and wind speed will be (20-30) kmph.
State of Sea:
The sea areas around the island will be slight to moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
Few places in the world can offer families such a remarkable combination of stunning landscapes, pristine beaches, captivating cultural heritage and unique wildlife experiences within such a compact location like the island of Sri Lanka.
There are eight UNESCO World Heritage Sites, over 800 miles of coastline (much of it pristine beach), 15 national parks showcasing abundant wildlife, miles of lush tea estates and botanical gardens, 350 waterfalls, and a culture that extends back to over 2,500 years.
Sri Lanka, a teardrop-shaped island in the Indian Ocean, lies south of India and is a stone’s throw from the Maldives. This part of Asia is where the original soul of Buddhism still flourishes and where nature and wildlife are abundant and unspoiled.
Family Travel in Sri Lanka: First Stop
Jetavaranama dagoba Buddhist stupa in ancient city Anuradhapura, Sri Lankagetty
Start your journey in Anuradhapura, which is considered to be the original capital of Sri Lanka. Rich with culture and history, it is home to ancient temple ruins, some of the largest stupas of the world and palaces dating back to the 10th Century BC. Anuradhapura is recognized as a UNESCO World Heritage Site.
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On your way to see Anuradhapura’s attractions, stop to see the architectural wonder of the rock fortress of Sigiriya – the impressive citadel built by the rebel king Kashyapa. Gardens, bathing pools, rock carvings, and a palace perched on the majestic rock as well as colorful frescos on the rock walls are the highlights of this historical site.
Minneriya National Park, famous for the annual gathering of its elephants –one of the world’s largest recorded assemblies of elephants – is teeming with wildlife and should not be missed.
Wilpattu National Park is the place to go to see Sri Lankan elephants, the elusive leopards, sloth bears, spotted deer, buffaloes, sambar, mongoose, and over 30 species of animals, exotic birdlife, reptiles, and amphibians. The park is spread over an area of approximately 500 square miles.
Uga Ulagalla caters to families. Uga
Staying several nights at Uga Ulagalla allows for day trips to various sites, including a cycling tour of the ancient capital Anuradhapura; wildlife safaris to witness elephants in Minneriya and leopards in Wilpattu; tours of the ancient engineering wonders such as the giant reservoir Kalawewa; exploration of the ruins in Ritigala and Sigiriya Rock Fortress, and to archaeological and historical sites in Dambulla and Polonnaruwa.
Uga Ulagalla appeals to families because they have 25 large villas—almost 2,000 square feet in size— each with its own private pool and separate living area.
Tuk Tuk ride Uga
The property is spread across 58 acres of land and focuses on authentic experiences such as village cycle tours, Tuk Tuk tours, horseback riding, archery, kayaking in the local lake and kite making.
Activities at Uga Ulagalla include horseback riding. Uga
Don’t be surprised to see monkeys, peacocks and elephants wandering around this cultural triangle retreat.
Cooking classesUga
Family cooking class allows kids to learn the flavors and tastes of Sri Lanka by making a traditional curry using locally-sourced rice and produce from the resort’s organic garden.
Junior Ranger Programuga
Younger rangers can join Ulagallas junior ranger program which has been designed to catch curious minds when it comes to nature, wildlife and the environment in a fun and engaging way. Rangers take children on a journey of natural discovery including identifying animals and birds; learning about the importance of ecosystems and threats to wildlife and exploring the traditional harvesting techniques of rice.
Exploring Yala National Park in Sri Lanka
Yala has one of the highest leopard population densities in the world.getty
After families explore Anuradhapura, the next stop should be to Ruhuna National Park, commonly known as Yala. Here you’ll find semi-deciduous and thorn forests, grasslands, freshwater and marine wetlands and sandy beaches where the only footprints you will see belong to foraging birds and animals.
It is the largest and oldest of a chain of six national parks and three sanctuaries in the vicinity and by far the richest in biodiversity, boasting 44 different resident mammal species and one of the highest leopard population densities in the world. There are also dozens of reptile species, including turtles, crocodiles, flying snakes and elegant fan-throated lizards. As for birds, Yala has no less than 215 resident and migrant species, of which the flamboyant peacock is one of the most common.
Apart from Yala and its satellite parks, other nearby attractions include the Great and Little Basses reefs, which is an ideal spot to see blue and humpback whales as well as dolphins.
Uga Chena Huts has morning and evening game drive safaris in Yala with an experience ranger guide. Uga
Most families will stay several days at Uga Chena Huts which borders Yala National Park on Sri Lanka’s southern coast. Included in the property’s rate is all meals and morning and evening game drive safaris in Yala with an experienced ranger guide. Yala is one of the world’s best spots to sight wild leopards, and sloth bears as well as plenty of bird life and other mammal sightings. The property can also organize whale-watching expeditions.
Uga Chena Huts blend into the surrounding environment. Uga
Chena Huts is popular with families because there are private pools in each cabin—with only 14 cabins in this seven-acre property. Each cabin is over 1,600 square feet and includes a spacious living room, bedroom, and en suite bathroom with a free-standing bathtub.
Sri Lanka is known for its elephant populations. getty
Sri Lanka will feel like an adventure for the whole family, from animal encounters with elephants, leopards and baby turtles hatching on the shores of the Indian Ocean, to plenty of culture and history thrown in.
Cumulative earnings of 281 listed companies suffer massive decline of 44% in the quarter ended Dec’22: first time since 2020: big losing segments were Capital Goods (-82.6%), Transportation (-87.0%), Telecommunications (-226.8%), & Diversified Financials (-38.9%).
Finance Ministry instructs all ministries, provincial councils, departments, district secretariats, state corporations, statutory boards and state-owned enterprises to immediately implement the long overdue electronic Govt Procurement (e-GP) system, in keeping with an IMF requirement.
Agriculture Ministry Secretary Gunadasa Samarasinghe asks the Chinese Embassy for details of a Chinese animal breeding company which had sought to obtain 100,000 toque macaques reportedly for zoos in China.
President Ranil Wickremesinghe says the country’s balance of payments is not currently favourable: asserts steps are being taken “to implement reforms and restructuring to create opportunities for growth”: also says the next immediate action is to present the IMF arrangement to Parliament and request its support: promises to have the growth agenda ready next month.
Survey conducted by the National Physical Planning Dept shows urbanisation has increased to 45% in 2022 from 18.5% in 2012: rapid population growth and a hike in migration of people from rural areas attributed as the reasons.
Five persons (three female and two male) found hacked to death in a house in the Delft area in Jaffna: another female hospitalised with serious cut injuries: no arrests thus far: investigations underway.
Youth, 21, who was arrested for giving an anonymous false tip-off to the police about a possible bomb threat in the Akurana area, remanded until May 4.
Energy Ministry withdraws its own Cabinet paper on revised feed-in tariffs for renewable energy after deciding it is too complicated: Federation of Renewable Energy Developers Vice President Manjula Perera says despite the Govt’s pledge to generate 70% of electricity through renewable sources by 2030, new projects are blocked by the continued failure to introduce a viable tariff.
Human Rights Commission summons representatives of Tri-forces in relation to the investigations into the torching of President Ranil Wickremesinghe’s private residence on 9 July 2022.
New commemorative stamp issued marking a site in the epic Ramayana in the Central highlands: stamp commemorates the Sita Amman Temple, which is believed to be in the site known as Ashok Vatika in the Ramayana where Sita was held captive by King Ravana.
