In the aftermath of the devastating events of April 21, the first quarter of 2019 was adversely impacted. As the country copes with multiple challenges, Sri Lanka’s economic growth is forecast at 2.7% in 2019.
Overall, the performance of the services sector in the country declined to 4.1% year-on-year, compared to 5.5% GDP growth last year. Among other industries, tourist arrivals to Sri Lanka in May 2019recorded a drastic decline of 70.8% from the arrivals in May of 2018.
Although the arrivals increased by 19% by June 2019, it is yet 57% less compared to the arrivals in June 2018. Earnings from the country’s agricultural exports declined during the first five months of 2019 due to poor performance observed in tea, minor agricultural products and rubber exports.
Against this challenging macroeconomic backdrop, Aitken Spence PLC reported a 17.5% growth in Group revenue during the first quarter of the year at Rs. 12.4 billion compared to Rs. 10.6 billion recorded in the previous financial year.
Aitken Spence continues to manifest its dominance in overseas marketsthat has generated approximately 75% of the Group’s overall profits in the first quarter of 2019 compared to 60% in the first quarter of 2018. Overseas expansion, and thereby creating opportunities in local and overseas markets, is a vital aspect of the business strategy of Aitken Spence and it has strengthened the company’s resilience amidst a turbulent economic environment. At present, Aitken Spence has a presence in Asia, Middle East, South Pacific and Africa and the efficacy of this strategy is evident to date.
At the same time, profit-before-tax for the quarter was Rs. 475 million from Rs. 538 million over the previous year.This is after accounting for an additional charge of Rs. 36 millionfor the quarter,due to the adoption of the new leasing standard SLFRS 16 as required. There was no corresponding adjustment made in the previous year.
“Aitken Spence is a company that has proven that our strength is in our diversity. The devastation of the Easter attacks should motivate unity, resilience and continual progress. With normalcy being gradually restored, we are confident that business will bounce back, and our efforts will continue to this end,” said Dr.Parakrama Dissanayake, Deputy Chairman and Managing Director of Aitken Spence PLC.
“We are pleased to be seen in the forefront of showcasing business resilience amidst challenging times. Following the Easter attacks, Aitken Spence Maritime facilitated the first luxury cruise ship carrying 350 passengers to call on Sri Lankan ports and Aitken Spence Travels Cruise team was responsible for the operation of all the shore excursions for its passengers,” he added further.
The tourism sector was significantly impacted by the Easter attacks that resulted in a loss of Rs. 385 million for the quarter, over the loss of Rs. 204 million in the previous year. However, the resorts in the Maldives recorded a strong growth with the newly opened Heritance Aarah which is the first overseas operation to carry the premium brand ‘Heritance’.
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