Sri Lanka Distilleries group net dragged down by telecom, plantations

ECONONYNEXT - Profits at Sri Lanka's Distilleries Company of Sri Lanka group fell 4.9 percent from a year earlier to 1.75 billion rupees in the June 2015 quarter despite a recovery in the core alcohol business, official data shows.

The group reported earnings of 5.85 rupees per share for the quarter.

At the core alcohol business, revenues rose 36 percent to 15.3 billion rupees from a year earlier, which the firm said was due to tax increases and consolidation of value added tax to excise.

But net revenue also rose 19 percent to 4.6 billion rupees, with cost of sales rising 28 percent to 2.4 billion rupees, helping gross profits grow 11.7 percent to 2.24 billion rupees.

At group level gross profit rose only 1.8 percent to 2.2 billion rupees.

The group's plantations revenue fell to 564 million rupees from 732 million rupees, generating a loss of 102 million rupees. Global commodities including food, crude, base and precious metals have been falling as the US dollar appreciated with less loose monetary policy from the Federal Reserve.

Telecom revenues fell to 829 million rupees from 885 million rupees a year earlier, generating a loss of 156 million rupees.

Sri Lanka micro financier re-branded as Sarvodaya Development Finance

ECONOMYNEXT - Sarvodaya, a Sri Lanka based charity said its micro-finance unit had been re-branded as Sarvodaya Development Finance which will also start lending to the lower end of the small and medium business sector.

The firm was earlier known as Deshodaya Development Finance Limited.

Chief Executive Ravindra Ranjith said the firm had 60 outlets and worked with 500 Sarvodaya societies. Sarvodaya is a charity working to uplift the poor through self-help.

Out of 125,000 customers of Sarvodaya Development Finance, 55 percent were women. Out of its customers who borrowed money to start economic activities 75 percent were women.

Sarvodaya founder A T Ariyaratne said the charity through its village activities had worked to eliminated differences in caste and race.

Chairman Eastman Narangoda said the firm is developing some leasing products and it wanted to be a development bank in the future.

Director Vinya Ariyaratne said the Sarvodaya organization as its main shareholder of the micro-finance did not take any dividends.

Over 81.3 percent of Sarvodaya Development Finance Limited was owned by Sarvodaya Economic Enterprises Development (Guarantee) Limited and 18.6 percent by Gentosha Total Aset Consulting Inc., of Japan.

Sarvodaya Development Finance also owned 75.5 percent of George Steuart Finance Plc, which it had acquired as part of a regulator driven consolidation move. The two firms will be merged in the future through a share swap.

Sri Lanka low grown tea prices slump to lowest in three years

ECONOMYNEXT – Prices of Sri Lanka’s low grown teas, which make up the bulk of the crop fell to their lowest levels in three years at recent auctions, with political and economic troubles in key markets continuing to dampen demand.

Tea prices which had perked up at the Colombo auctions last month have begun to fall again, except for well-made teas and those from the Uva region whose quality season is underway, brokers said.

Tea prices have been falling since the latter half of last year because troubles in key markets like Russia, where the rouble was devalued, and the Middle East, had hit demand.

Lower demand continued for the 3.5 million kilos of Low Grown teas that were on offer at last week’s auctions, brokers John Keells Ltd. said.

At the previous week’s auctions, the Low Grown orthodox average of 395.50 rupees a kilo was the lowest seen in recent times, they said.

The last recorded lowest average was witnessed from the of 7-8 August 2012 which was 396.63 rupees a kilo.

There was limited demand from the Russian and Iranian buyers. Syria, Turkey, Saudi Arabia and other Middle Eastern markets were “selectively active”, the brokers said.

“Once again, the buyers at today’s sale were following quality very closely,” John Keells Ltd. said in a report on last week’s auctions.

“Well-made clean teas with fair liquors were absorbed at prices on last week’s levels. Hence, it is imperative that all producers strive to maintain a good leaf appearance and brighter infusion in order to derive the maximum benefits of the present market conditions.”

Browns Beach Hotels Group profits dip

Profits dipped at Browns Beach Hotels Group compared to the previous year, financial results released by the organisation stated.

During the financial year, the Browns Beach Hotels Group reported a profit after tax of Rs.93.2 million mainly on the interest income earned from the investments of the funds raised from the Rights Issue. However, profits recorded a considerable dip compred to last year’s Rs.187 million.

The group’s earnings per share had also slowed from Rs.1.45 in 2013 to 72 cents last year, the financial report stated. Browns Beach Hotels Group has commenced construction work on its new hotel that is expected to be operating during the financial year 2014/15, the report stated adding that it would be titled “Heritance Negombo” comprising 143 rooms.

The hotel is expected to cater to a multiple segment of clients including leisure, business and tourist travellers.
www.sundaytimes.lk

Ex SEC chief Nalaka skips FCID questioning on legal grounds

Former Securities and Exchange Commission (SEC) Chairman Nalaka Godahewa – who authorities want to question over a number of alleged irregularities – this week absented himself from being questioned by the Financial Crimes Investigation Division (FCID) by raising legal objections, informed sources said.

Dr. Godahewa, who has become an active campaigner for the opposition UPFA, was represented at the FCID by his lawyers who told investigators that their client would be available for questioning only after the August 17 parliamentary election. This follows a ruling by the Elections Commission barring the FCID from investigating candidates or others involved in campaigning during the election period.

The FCID is probing many issues relating to Dr. Godahewa’s past positions at Sri Lanka Insurance (SLI) and SEC, and stock market transactions pertaining to Lanka Hospitals. He was a former Managing Director of SLI and later its’ Competent Authority, chairman of Sri Lanka Tourism and a director at Lanka Hospitals.

The FCID is investigating into a number of transactions at the Colombo Stock Exchange (CSE) during the recent past, including insider trading and market manipulation. These irregularities are alleged to have taken place between 2009 and 2014 at Lanka Hospitals under the chairmanship of former Defence Secretary Gotabaya Rajapaksa. www.sundaytimes.lk