Sri Lanka’s Hayleys Group optimistic of increased earnings through export business
Chairman of Sri Lanka’s Hayleys Plc, Mohan Pandithage has reportedly said that the group was confident of continued growth in its export businesses resulting in a growth in the group’s earnings.
“The recently announced tax concessions are likely to result in improved consumer and investor sentiments presenting upside potential for the Group,” Pandithage has told shareholders.
“Additionally, we are confident that the continued growth of our export businesses, coupled with the reduction in lending rates will support the Group’s earnings growth in the coming months.”
Profits of Hayleys Plc, which has interests in export manufacturing, retail, logistic and leisure, has increased 54 percent from a year earlier to Rs. 678 million in the December 2019 quarter interim accounts.
Profits have grown from a “broad-based improvements in the operating performance of the Group’s export-oriented businesses,” the group has stated in a note to shareholders.
In 2018 Sri Lanka’s rupee collapsed from Rs. 153 to Rs. 182 to the US dollar, helping export businesses with lower real salaries and as well as utility tariff, which was not revised upwards after the currency collapse.
Hayleys has reported earnings of Rs. 9.05 per share for the quarter. For the nine months to December Hayleys reported earnings Rs. 1.85 per share on total profits of Rs. 138 million.
Sri Lanka’s exports sector is on a continuous growth path given the many trade agreements as well as trade concessions enjoyed by the country. This has also resulted in the continuous expansion of business opportunities in Sri Lanka’s exports sector. Given the overall growth of the country’s economy and the ease of doing business environment in the country, foreign businesses/investors could explore business/investment opportunities in Sri Lanka’s exports sector.
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