Sri Lanka’s listed companies set for Rs. 660 billion profits in 2024
The Morning: Sri Lanka’s listed companies’ net profits for 2024 can go beyond Rs. 660 billion, the highest the country has recorded so far, with positive economic sentiments, Almas Holdings Group Chairperson Imtiaz Buhardeen said.
Speaking at an event in late November, he said that listed companies’ collective net profits, which stood at Rs. 450 billion by the end of the third quarter, could go beyond Rs. 660 billion by the end of the year.
He said that during the crisis year 2022, listed companies recorded a collective net profit of Rs. 665 billion, the highest recorded so far due to high margins and profits by local companies.
He added that when the dollar appreciated and inflation increased in 2022 with import restrictions in place, many local companies made good margins and profits.
Buhardeen also said that in 2023, with the IMF programme in place, corporate taxes going up for some companies from 0% to 30% and others seeing an increase in taxes from 14% to 24% and interest rates also reaching between 25-30%, listed companies made a collective net profit of Rs. 450 billion in the previous year.
“But in the nine months of 2024, listed companies have already made a profit of Rs. 450 billion,” he said, adding that the companies have managed to record such profits with increased taxes, valued added tax and salaries.
He noted that even with all the added expenses since the crisis year, the listed companies are still doing well due to different avenues available for them.
“There are certain businesses listed companies are taking over, when you go to the retail market people complain that the business is bad but the listed companies, with a lot of avenues available for them, their businesses can grow multiple times,” he added.
OSL take:
The prediction about the profits likely to be recorded by listed companies in Sri Lanka is indicative of the strength, resilience and growth path of the country and the overall expansion of Sri Lanka’s economy that faced an unprecedented economic crisis just two years ago. The strength and resilience of Sri Lanka’s economy through the years serves as a confidence booster for foreign businesses/investors while local businesses have also shown great resilience in the face of adversity. However, Sri Lanka’s ongoing economic expansion has opened many business/investment opportunities in many key economic sectors in the country as well as present local businesses that are also poised to form partnerships or joint ventures with foreign businesses/investors in order to further expand operations. The country’s strategic positioning in the Indian Ocean as well as the many trade agreements and trade concessions enjoyed by Sri Lanka with many foreign countries have also helped Sri Lanka’s quick return to normalcy from economic crisis while also attracting foreign businesses/investors to the country as an emerging business destination in the South Asian region.
| Article Code : | VBS/AT/20241213/Z_2 |