Ceylon FT: With a revenue of Rs 89.2 billion in 2013/14 (up 5% from a year ago) and a net profit of Rs 13 billion (down 3%), diversified John Keells Holdings PLC's risk management review rates the regulatory environment as 'ultra high'.
"The regulatory environment continues to pose a degree of uncertainty resulting in the group being challenged in its efforts to define medium and long term strategies. As a mitigatory measure, the group has resorted to structures, which while being robust and effective are also flexible and adaptable to changes in the legal framework and business needs," the group's risk management review in the 2013/14 annual report said.
It said the group participates in various industry associations and industry chambers as a means of creating greater awareness and enlisting the support of the decision makers in obtaining 'greater clarity and achieving greater consistency of government policies and initiatives'.
"The regulatory environment continues to pose a degree of uncertainty resulting in the group being challenged in its efforts to define medium and long term strategies. As a mitigatory measure, the group has resorted to structures, which while being robust and effective are also flexible and adaptable to changes in the legal framework and business needs," the group's risk management review in the 2013/14 annual report said.
It said the group participates in various industry associations and industry chambers as a means of creating greater awareness and enlisting the support of the decision makers in obtaining 'greater clarity and achieving greater consistency of government policies and initiatives'.
The previous financial year, 2012/13, saw the regulatory environment rated 'ultra high' as well, worsening from a rating of 'high' in 2011/12.
The group gave the macroeconomic and political environment top marks.
"Despite global economic conditions, the Sri Lankan economy has seen, and is seeing, a positive growth trajectory. The government continues to make investments in infrastructure development and some of the policy measures taken are expected to improve the long term sustainability and growth path of the economy. Accordingly, the group believes that a lower risk rating is warranted," the group said.
The group gave the macroeconomic and political environment top marks.
"Despite global economic conditions, the Sri Lankan economy has seen, and is seeing, a positive growth trajectory. The government continues to make investments in infrastructure development and some of the policy measures taken are expected to improve the long term sustainability and growth path of the economy. Accordingly, the group believes that a lower risk rating is warranted," the group said.
In 2012/13 the macroeconomic and political environment was rated a 'moderate' risk and 'low' in 2011/12.
"The group remains positive about the resilience of the economy and members actively participate in business associations, think-tanks and other key policy making bodies in supporting the government in its efforts towards creating sustainable and equitable growth," the group said.
However, the company noted elsewhere in the same annual report that despite the GDP registering a 7.3% economic growth rate for 2013, up from 6.3% in 2012, it was primarily driven by exports and domestic capital formation, and "did not necessarily translate into enhanced performance in all businesses".
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However, the company noted elsewhere in the same annual report that despite the GDP registering a 7.3% economic growth rate for 2013, up from 6.3% in 2012, it was primarily driven by exports and domestic capital formation, and "did not necessarily translate into enhanced performance in all businesses".
www.ceylontoday.lk
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