• CORPORATE PROFILES
  • BENCHMARK
  • EXPLANATORY NOTES
  • THE ROLL OF CORPORATE HONOUR
  • THE LEADERS
  • TOP 50 CHRONOLOGY
  • THE TOP 50 CHAIRPERSONS AND CHIEF EXECUTIVES
  • SRI LANKA COUNTRY RANKINGS
  • MOVERS AND SHAKERS
  • GROWTH IN THE LAST DECADE
  • DAILY SHARE PRICES
  • RESULTS IN THE LAST DECADE
  • SECTOR LEADERS
  • TOP 10 SECTOR LEADERS
  • SECTOR PROFILES
  • TAX CHARGES
  • TOP PERFORMERS
  • GROWTH ANALYSIS
  • RETURNS ANALYSIS
  • HR ANALYSIS
  • SUPPORT SERVICES LEADERS
  • SUPPORT SERVICES
  • MOST RESPECTED
  • THE BOURSE
  • THE WATCH LIST
  • CSE MEMBER FIRMS
  • TRADING MEMBERS (DEBT)
  • IPO HISTORY
  • LMD 100 CONTACT INFORMATION
  • FINANCIAL YEAR 2017/18
  • FINANCIAL YEAR 2018/19
  • FINANCIAL YEAR 2019/20

FOREWORD

While COVD-19 continued to be a concern for corpo­rates for much of 2021, the nation’s economic woes heightened to wards the latter part of the calen­dar year on the back of challenges such as the value of the rupee and a forex crunch, upcoming debt obligations, the rising cost of living and dwindling reserves.

Transparency International’s Cor ­ruption Perceptions Index (CPI) places Sri Lanka in 94th spot (down from No. 93 in the previous year) from among 180 countries and territories with a score of 38 out of 100 – on a scale of 0 (or ‘highly corrupt’) to 100 (i.e. ‘very clean.’ This rating is no different to where the nation stood back in 2019.

The CPI reflects perceived levels of public sector corruption according to experts and businesspeople. And it con­cludes that “most countries have made little to no progress in tackling corruption in nearly a decade… Corruption not only undermines the global health response to COVID-19 but contributes to a continu­ing crisis of democracy.”

Transparency International explains: “As the past tumultuous year has shown, COVID-19 is not just a health and eco­nomic crisis but a corruption crisis as well, with countless lives lost due to the insidious effects of corruption undermin­ing a fair and equitable global response.”

It recommends strengthening the over­sight of institutions, ensuring open and transparent contracting, defending demo ­cracy and promoting the civic space, and publishing relevant data and guarantee­ing access.

In a message marking International Anti-Corruption Day, Transparency International Sri Lanka (TISL) Exe ­cutive Director Nadishani Perera assert­ed that “at a time when our country is making strides in vaccinating people to combat the COVID-19 pandemic, let us also commit to fight the pandemic of cor­ruption that has plagued this country for decades… exacerbating inequalities and causing the country to stagnate as a devel­oping nation.”

Meanwhile, the South Asia Economic Focus Fall 2021 report compiled by the World Bank expects Sri Lanka’s eco­nomic expansion to reach 3.3 percent in 2021 although “the medium-term out­look is clouded by preexisting macroeco­nomic weaknesses and the economic scarring from the COVID-19 pandemic.”

It adds: “Continued macroeconomic challenges – particularly the high debt burden, large gross financing needs and weak external buffers – will adversely affect growth and poverty reduction over the medium term.”

Measures to reduce the country’s debt vulnerabilities, and restore fiscal and external buffers, are expected to remain among Sri Lanka’s main strategies going forward while tackling equity gaps will be necessary to maintain human capital achievements and long-term growth prospects.

In the latest edition of the LMD 100, Hayleys retains the top spot ahead of Expolanka Holdings with regard to the performance of Sri Lanka’s leading listed entities in financial year 2020/21 – thanks to its reported consolidated rev­enue of Rs. 241 billion, which is nearly 10 percent higher than that of the latter.

Meanwhile, LOLC Holdings (LOLC) holds on to the No. 1 slot for profitability, having recorded a post-tax profit in excess of 50 billion rupees.

As for market capitalisation, which is also a prime indicator of corporate might, John Keells Holdings (JKH) leads the way with an equity value of almost Rs. 196 billion at 31 March 2021.

Forty LMD 100 corporations reported lower earnings in financial year 2020/21 compared to the preceding 12 months. And there are 11 loss makers among the 100 leading listed companies (in 2019/20, there were 17) while 70 companies (com­pared to 28 in 2019/20) registered profit upside in the double digits or higher.

In the latest edition of the nation’s pio­neering listed company rankings, as many as 69 companies (72 in the prior year) recorded annual revenues in excess of Rs. 10 billion. In terms of bottom lines, 22 entities (versus 13 in 2019/20) enjoyed post-tax profits of over five bil­lion rupees.

Turning the clock back 25 years when the pioneering rankings were first pub­lished in 1993/94 (that was when the LMD 100’s predecessor – The LMD 50 – was compiled for the first time), the list of corporate heavyweights contained 24 entities that do not feature in the latest edition of Sri Lanka’s leading listed companies.

An equal number of corporations were not in contention at the inception of the rankings including the likes of Expo ­lanka Holdings and LOLC, which fea­ture on the 2020/21 Leaderboard.

Aggregate revenue of the 50 leading listed entities has grown by eight percent in the latest rankings whereas their com­bined bottom line increased by as much as 45 percent. To put things in perspec­tive, back in 1993/94, cumulative rev­enue rose by 20 percent year on year while profits spiked by 60 percent.

The aggregate asset value of the 50 leaders meanwhile, appreciated by seven percent during 2020/21 while their com­bined shareholders’ funds were nearly 14 percent higher than from when the finan­cial year began.

– LMD/Media Services

Related posts

February 23, 2022

EXPLANATORY NOTES


Read more

Contact Us

Phone : +94 (11) 25 99 600
Fax : +94 (11) 25 99 444
Email : corporate@lmd.lk

Address

Media Services (Private) Limited
LMD House,
4 Greenlands Avenue,
Colombo 5,
Sri Lanka.
© Copyright 2021 Media Services - All Rights Reserved