Sri Lanka records increase in quarterly earnings in most sectors despite pandemic
Despite a surge in Covid 19 in the Country, earnings of many sectors in Sri Lanka have recorded an increase in the June 2021 quarter earnings by 116% YoY to Rs. 76.3 billion.
First Capital has issued a statement noting that impressive earnings were led by Capital Goods (255% YoY), Banks (65% YoY), Food, Beverage and Tobacco (94% YoY), Consumer Durable and Apparel (1869% YoY), Transportation (259% YoY) and Telecommunication (68% YoY) sectors.
“Most of the listed sectors saw a surge in profitability, due to lower base effect in the previous year equivalent quarter amidst the negative impact by the initial COVID-19 triggered lockdowns and also due to the rebound in economy in Jun 2021 quarter as normalcy recovers,” First Capital has been quoted as saying in the Daily FT.
First Capital has further stated that in the June 2021 quarter, Capital Goods, Banks, Food, Beverage and Tobacco, Consumer Durable and Apparel, Transportation sector and Telecommunication sectors had witnessed exceptional results.
Capital Goods had reportedly recorded an impressive growth of 255% YoY owing to the rebound in performance in many counters.
Accordingly, John Keels Holdings had witnessed a surge in earnings by Rs. 3.2 billion led by all segments.
In the banking sector, the three largest banks, Commercial Bank, Hatton National Bank and Sampath Bank had registered enhanced profitability due to improved Net Interest Income despite increase in impairment provision and conservative loan book growth.
Earnings from food, beverage and tobacco earnings have increased led by the rebound in consumer recovery.
Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the impact of the global Covid 19 pandemic. The country’s economic resilience is witnessed in the increase in quarterly earnings recorded by several key sectors. Sri Lanka is working towards becoming a business hub in the South Asian region. The country’s geographical positioning in the Indian ocean, the many trade agreements as well as concessions enjoyed by the country and the continuously improving ease of doing business environment have all contributed to Sri Lanka becoming an attractive business destination in the region. Foreign businesses/investors could therefore confidently explore business/investment opportunities in Sri Lanka.
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