November 27, Colombo (LNW): The Sri Lanka Ports Authority (SLPA) is on track to achieve a significant revenue milestone of Rs. 85 billion by the end of 2024, up from Rs. 83.7 billion in 2023. 

This growth is driven by enhanced operational performance across its various services, according to SLPA’s Harbour Master, Capt. Nirmal Silva.

 He expressed confidence in reaching this target, highlighting positive trends in port activity and improvements in operational efficiency.

One challenge facing SLPA is its dollar-denominated revenue, which makes it sensitive to fluctuations in the exchange rate, potentially impacting final financial results he added. 

 Despite these concerns, the SLPA is forecasting a profit after tax (PAT) of Rs. 19 billion for 2024. In the first half of 2024 alone, containerized cargo traffic reached 1,207,675 TEUs, an 18% increase compared to the same period in 2023. 

Conventional cargo also grew by 22%, totaling 4,747,911 metric tons. These gains were attributed to a range of factors, including the impact of the Red Sea crisis.

During the first six months of 2024, SLPA recorded total operational revenue of Rs. 36.9 billion. Stevedoring services contributed the largest share, generating Rs. 17.1 billion, which accounted for 46% of the revenue. 

Navigation services followed with Rs. 9.9 billion (27%), while Wharf handling brought in Rs. 4.3 billion (12%), according to the Finance Ministry’s data.

However, SLPA’s operational profit for the first half of 2024 was Rs. 18.4 billion, slightly lower than the Rs. 19.8 billion recorded during the same period in 2023. 

Personnel expenses, including salaries and overtime, saw a notable increase, totaling Rs. 10.1 billion and Rs. 4 billion, respectively, due to revised collective agreements effective from January 2024. These costs made up 58.4% of SLPA’s overall expenditures.

 Consequently, the profit before tax for the first half of 2024 stood at Rs. 19.8 billion, a 9.2% decrease from Rs. 21.8 billion in the same period last year.

Looking forward, SLPA is focusing on expanding its infrastructure to support future growth. Upcoming projects include the expansion of Colombo Port and developments in other regional ports, which are expected to strengthen SLPA’s role in global supply chains and aid Sri Lanka’s economic recovery.

The Colombo International Container Terminals Ltd. (CICT) and South Asia Gateway Terminals Ltd. (SAGT) have played significant roles in driving SLPA’s revenue.

 By mid-2024, these two terminals reported a combined revenue of $359.4 million, contributing Rs. 77.54 billion ($125.1 million) in dividends to SLPA, representing 34.8% of total revenue for the first half of 2024. 

Operational performance in this period was robust, with domestic volume increasing by 23.6%, transshipment volume by 15.5%, and total volume growing by 17.7%.

CICT and SAGT continued their strong performance throughout 2024, with CICT generating $90.7 million and SAGT earning $50.5 million by mid-year. In comparison, their 2023 revenues were $167.6 million and $94.2 million, respectively.

A major future development is the Colombo West International Terminal (CWIT), a collaborative initiative involving India’s Adani Group, John Keells Group, and SLPA. 

This project is set to complete its first phase by February 2025, further enhancing SLPA’s capabilities and reinforcing Sri Lanka’s strategic position in the global maritime sector.

1. The Examinations Department announced that it has been decided to temporarily suspend the ongoing 2024 G.C.E. Advanced Level Examination. Accordingly, the subjects which were scheduled to be held on November 27, 28 and 29 have been suspended, the Commissioner General of Examinations Amith Jayasundara said.
2. The National Building Research Organisation (NBRO) has issued a ‘Level 3 (Red)’ Landslide Early Warning for several divisional secretariat divisions (DSDs) in Kandy, Matale and Nuwara-Eliya districts urging the residents of these areas to evacuate to safer locations. Accordingly, the Level -3 warning, valid for the next 24 hours.
3. The Disaster Management Centre (DMC) says that the prevailing inclement weather conditions in the country have so far affected 77,670 persons from 22,532 families across 15 districts. It said that the bad weather-related incidents have resulted in the dead of one person and injured another 05.
4. The Steering Committee of the Ad Hoc Group of Sri Lanka Bondholders has announced its support for the restructuring terms of all 11 series of Sri Lanka’s c.$12.55 billion in outstanding sovereign bonds, as detailed in Sri Lanka’s Exchange Offer and Consent Solicitation Memorandum published today.
5. Sri Lanka’s new president, Anura Kumara Dissanayake, should address the country’s many human rights problems by fulfilling and building upon pledges he made in recent election campaigns, Human Rights Watch has said in a letter to the president. Human Rights Watch said in a statement that in his election manifesto, Dissanayake pledged to repeal the Prevention of Terrorism Act, remove abusive provisions of the Online Safety Act, establish an independent Directorate of Public Prosecutions separate from the attorney general’s office, aggressively combat corruption, and revise economic policies to promote equity.
6. The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) has decided to implement a single policy interest rate mechanism, the Overnight Policy Rate (OPR), transitioning from its dual policy interest rate mechanism with effect from today (27 November). This has been introduced as announced in the Central Bank’s Annual Policy Statement in January 2024 and the subsequent announcement in September 2024 of the planned implementation of the single policy interest rate mechanism.
7. Sri Lanka has announced the official launch of the exchange of its outstanding International Sovereign Bonds (ISBs) totaling approximately USD 12.55 billion, as of 25 November 2024. This follows the approval of the terms and conditions of the Invitation by the new Cabinet of Ministers of Sri Lanka, which was formed on 18 November 2024, Sri Lanka’s Ministry of Finance, Planning and Economic Development said in a statement today.
8. Most Venerable Karagoda Uyangoda Maithri Murthi Thero has been appointed the Mahanayake Thero of the Amarapura Chapter.
9. Sri Lanka’s new government has responded to allegations over the lack of Muslim representation in its Cabinet of Ministers. “We didn’t form the Cabinet according to the race, religion or the cast. We have selected the persons who are very much capable to hold those ministerial portfolios,” Cabinet Spokesman, Minister Dr. Nalinda Jayatissa said.
10. The Pakistan Cricket Board, in consultation with Sri Lanka Cricket, has postponed the last two 50-over matches of the Pakistan Shaheens-Sri Lanka ‘A’ series due to a political activity in the federal capital. The last two matches were scheduled for Wednesday and Friday at the Rawalpindi Cricket Stadium. Both boards will collaborate to finalise new dates to complete the series.

November 27, Colombo (LNW): The Adani Group, one of India’s largest conglomerates, is grappling with significant fallout after the U.S. indicted its chairman, Gautam Adani, on charges of bribery and fraud to secure contracts for Adani Green Energy. While the company has strongly denied the accusations, describing them as “baseless,” the impact has been severe, with the group’s 10 listed entities losing approximately $33 billion in market value. Adani Green Energy has been the hardest hit, losing $9.7 billion in value.

Here are the key developments involving the group’s stalled deals:

1. Total Energies Halts Investments

French oil giant Total Energies, a key partner in Adani Green Energy, has announced it will make no further investments in the Adani Group. The company stated it was unaware of the U.S. bribery charges against Gautam Adani. Total holds a 20% stake in Adani Green Energy and a 37.4% stake in Adani Total Gas, with an estimated financial exposure of $4 billion to $5 billion. Following this announcement, shares of Adani Green Energy fell by over 11%, and Adani Total Gas dropped by 1.4%.

2. U.S. Development Financing in Sri Lanka Under Review

The U.S. International Development Finance Corporation (DFC) is reassessing its $550 million loan for a port development project in Sri Lanka, partially owned by the Adani Group. The financing, announced last November, was intended to support the Colombo port terminal project. Sri Lankan authorities have also initiated a review of the allegations against the Adani Group and its projects in the country but have yet to make a final decision.

3. Kenya Cancels $2 Billion Airport Deal

Kenya has scrapped a $2 billion deal that would have granted the Adani Group control of Jomo Kenyatta International Airport. The agreement included constructing a second runway and upgrading the terminal in exchange for a 30-year lease.

These developments underscore the growing international scrutiny of the Adani Group, with nations and investors reassessing their engagements. As the legal battle unfolds, the conglomerate’s reputation and global partnerships remain under significant strain.