Lanka Ashok Leyland reports strong first half results with Rs. 7.75 billion revenue
Daily FT: Lanka Ashok Leyland PLC, a joint venture between the Government of Sri Lanka and Ashok Leyland Ltd., of India, has announced robust financial results for the first half of the financial year ending 30 September 2025.
CEO Umesh Gautam said: “We are proud of our strong first-half performance, with a profit of Rs. 1.17 billion and total revenue reaching Rs. 7.75 billion. This growth is a testament to our robust partnership with the Government of Sri Lanka and the valuable support from the Ministry of Industry.”
“Our strategy of investing in local value addition is generating job opportunities for Sri Lankans, strengthening our domestic supply chain, and aligning perfectly with the government’s vision for economic progress,” he added.
Gautam added that with the Sri Lankan economy advancing, the company is also addressing the Government’s push to improve urban passenger transport.
“In line with this vision, we are moving to relaunch our Ultra Low Floor AC buses. These 80 buses, originally introduced in 2013, were previously underutilised due to uneconomical operation. We are now structuring an attractive financial package to incentivise private operators to deploy these vehicles in city operations.”
The company said that its strategic focus on developing the local industry through local manufacturing and assembly with increased value addition and capitalising on the nation’s economic recovery.
OSL take:
The strong performance and profits recorded by Lanka Ashok Leyland indicates the success of Indian businesses operating in Sri Lanka. While India and Sri Lanka enjoy strong bilateral and trade ties with the potential for further expansion, many Indian businesses have expanded operations to Sri Lanka. These Indian businesses operating in Sri Lanka, some as partnerships or joint ventures with either the Sri Lankan government or local businesses, indicate the business conducive environment in Sri Lanka as well as the country’s overall economic expansion. Sri Lanka’s geographical positioning in the Indian Ocean as well as its close proximity to India and the strong trade ties enjoyed by the country with many foreign countries, have helped Sri Lanka poise itself as an emerging business destination in the South Asian region that has attracted the attention of many foreign businesses/investors exploring business/investment opportunities in the region. Given all these factors and the strong ties between Sri Lanka and India, Indian businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka. Other foreign businesses/investors interested in doing business with India and other countries in the region could look at setting up bases in Sri Lanka to engage with them using the preferential treatment enjoyed by Sri Lanka with them.
| Article Code : | VBS/AT/20251024/Z_1 |