Sri Lanka’s LOLC Group post-tax profit surges to Rs. 77.8 billion in FY21/22
The Morning: The LOLC Group recorded an upsurge in profits by as much as 46% over the previous year to record a Profit Before Tax (PBT) of Rs. 83.8 billion and a Profit After Tax (PAT) of Rs. 77.8 billion for the financial year ended 31 March 2022.
The group’s total comprehensive income reached Rs. 161 billion, which is, according to the company, unparalleled in the history of any Sri Lankan corporate entity. As the most diversified conglomerate in Sri Lanka, the LOLC Group’s strong global expansion is gaining traction as it rapidly widens its global footprint across Central Asia and Africa, over financial services, leisure, and plantations sectors.
A key highlight of its profitability this year is that the group derived a major portion of its revenues from its global operations, without being reliant on local operations or for that matter any one market. Amidst the economic and political disruptions being witnessed around the world, its global diversification plan ensures that the LOLC Group can sustain its upward trajectory without any adverse impact.
Meanwhile, the group recently acquired the Radisson Blue, a luxury leisure property in Mauritius with 100 keys, which will soon be the largest leisure operator in the Maldives, expecting to add 1,077 keys to the market soon. The property developments nearing completion in Maldives are the Nasandhura Palace Hotel with 135 keys and 118 apartments; Bodufaru with 470 keys; Browns Ari Resort with 100 keys; and Browns Raa atoll and STO Hulumale with 254 keys.
In Sri Lanka, the group commands a room capacity of 909 keys with a further capacity of 363 keys under construction, and is among the largest leisure operators in the country. The leisure properties in Sri Lanka consists of Eden Resort and Spa; Occidental Paradise Dambulla; Sheraton Kosgoda Turtle Beach Resort; The Calm Resort & Spa; Dickwella Resort and Spa with; the Elephant Corridor; Avani Kalutara; Club Hotel Dolphin and Hotel Sigiriya with, while Riverina Hotel is under construction with 363 keys. The Reveal Collection includes luxury bungalows, Ubuntu, the Beach House, Lantern Beach House Mirissa and Lavender House Pussellawa. The leisure business is further complemented with the destination management arm of the Group, Ceylon Roots, providing inbound travel services.
The group has diversified its offerings by investing in commercial banks including Seylan Bank and Hatton National Bank; and in development banking with Sanasa Development Bank and HDFC Bank. In the field of Non-Banking Financial Institutions (NBFI), LOLC Finance PLC and Commercial Leasing and Finance PLC merged recently to form the largest NBFI in Sri Lanka with a total asset value of Rs. 311 billion to support the NBFI consolidation master plan of the Central Bank of Sri Lanka. The combined entity delivered a colossal pro forma PBT of Rs. 25.6 billion and pro forma PAT of Rs. 23.5 billion as at 31 March 2022. LOLC Development Finance PLC too reported a healthy financial year with Profit After Tax of Rs. 389 million.
Looking ahead, the group is focused on taking its lifestyle based payment gateway, iPay, global, which will give the group’s financial services operation a cutting edge in global markets, reflecting its innovation and global drive.
OSL take:
The group profits recorded by Sri Lanka’s LOLC is indicative of the strength and growth of the country’s private sector. Sri Lanka is working towards becoming an emerging business destination in the South Asian region. The country’s economy has been greatly benefited by Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country. All these have resulted in positive movements in the the country’s economic sectors in turn opening up business/investment opportunities in the key economic sectors. Given the positive trends in Sri Lanka, foreign businesses/investors could explore the growing opportunities in the country. They could also look at setting up base in Sri Lanka to engage with other countries in the region. Also, the strong private sector in the country poses an opportunity for foreign businesses to form partnerships and joint ventures to expand operations locally and internationally.
| Article Code : | VBS/AT/09062022/Z_4 |