News & market updates

Central Finance Company PLC (CFIN) will join the S&P SL20 Index, replacing Distilleries Company of Sri Lanka PLC (DIST), effective from the start of trading on Monday, 23 June 2025 (after market close on 20 June) as part of S&P Dow Jones Indices' 2025 mid-year rebalancing.

Distilleries Company of Sri Lanka reported March-quarter earnings of Rs4.49bn, up 19% y/y, with revenues rising 31% to Rs36.7bn. Group net profit was Rs4.08bn, reflecting a continued demand recovery amid stable prices as the central bank missed its 5% inflation target.

Nandana Lokuwithana (Onyx) bought a c.9.99% voting stake in Hatton National Bank through Ceylon Steel for about Rs.14.42 billion (Rs.305–313/sh), lifting HNB shares to close at Rs.319.50 (+Rs.17.25). The block was sold by Browns Investments, which retains non-voting shares.

Fitch affirmed Melstacorp PLC and its subsidiary Distilleries Company of Sri Lanka at 'AAA(lka)' with a Stable Outlook. Fitch cited a strong consolidated credit profile, expected FCF above LKR10bn, improving spirits revenue (FY25 +12%) and diversification via the Heineken Lanka acquisition.

ASPI rose 84.3 points (+0.5%) to 15,926 on low turnover of about Rs.1.7bn while foreigners were net sellers of Rs.35.1m; gains were led by counters including CINS, MELS, COMB and SPEN, with Food, Beverage & Tobacco and Banking driving activity.

Colombo Stock Exchange closed lower: ASPI fell 67.40 points (-0.42%) to 15,799.94. Broad profit-taking hit banks (HNB, SAMP, COMB, CTHR, NDB) while MELS, GLAS, SINS and DIST were among gainers; turnover was Rs.2.37bn with net foreign outflow.

Colombo market extended gains as the ASPI rose 56 points (0.35%) to 15,867 on turnover of Rs.2 billion with foreign net inflows of Rs.25.5m. Food, Beverage & Tobacco and Materials led turnover and gains while banking showed subdued sentiment.

ASPI rose 0.1% yesterday but is down 3.8% so far in March; turnover fell to Rs. 792.5m, led by Food, Beverage & Tobacco (28%), Banking (20%) and Capital Goods (18%). Agarapatana, Hayleys, Hemas and Sampath were among gainers while Bukit Darah, C T Holdings, Access Engineering and NDB were notable laggards.

Damien Fernando has been re-appointed as an Executive Non-Independent Director of Distilleries Company of Sri Lanka PLC (DCSL). He is also an Executive Director of the group holding company Melstacorp PLC and holds other group and non-executive roles.

Dividend · Rs 1.00 · XD Feb 28, 2025

Second Interim dividend of LKR 1/share; XD 2025-02-28; record 2025-03-02; payable 2025-03-19; FY 2024/2025

Colombo Stock Exchange closed higher, with the ASPI up 0.22% at 17,193.79 and the S&P SL20 up 0.63% at 5,139.63. Investor interest centred on banks and capital goods (notably Sampath, Commercial Bank and Hemas); Melstacorp, Distilleries, Sampath and Teejay Lanka declared cash dividends and Hemas plans a share sub-division.

The Galle Literary Festival sold 5,610 tickets and organisers say it delivered a substantial economic boost to Galle and Sri Lanka; partners included Commercial Bank and International Distilleries.

Lion Brewery said sales volumes softened after a 6% excise duty hike in January 2025, leaving the Q4 outlook uncertain. It reported December-quarter revenue up 16% to LKR 31.13bn, EPS of LKR 36, and said it paid LKR 74bn in taxes in the nine months to December.

Hasitha Jayawardena was appointed Chairman of Melstacorp PLC and Distilleries Company of Sri Lanka, and Stasshani Jayawardena was appointed Chairperson of Aitken Spence PLC.

Hasitha Jayawardena has been appointed Chairman of Melstacorp PLC, Distilleries Company of Sri Lanka PLC and Madulsima Plantations; Stasshani Jayawardena was appointed Chairperson of Aitken Spence Hotel Holdings PLC and named Deputy Chairperson of Lanka Milk Foods (CWE) PLC. Both continue to hold or assume directorships across the group.

Colombo Stock Exchange closed higher: ASPI +1.38% to 16,734 and S&P SL20 +1.48% to 4,996, with turnover Rs2bn and net foreign outflow Rs75mn. Top contributors included Ceylinco Holdings, Melstacorp and Commercial Bank; several chairperson appointments were made following Harry Jayawardena's death.

Hasitha Jayawardena was appointed chairperson of Melstacorp and Distilleries Company of Sri Lanka, effective 6 February, in stock exchange filings. He was also named chairperson of Balangoda Plantations and Madulsima Plantations; Melstacorp holds 92.44% of Distilleries.

Aitken Spence PLC appointed D S T (Stasshani) Jayawardena as Chairperson and M R Mihular as Senior Independent Director. Jayawardena is an executive director with leadership roles across the group and holds positions at Aitken Spence Hotel Holdings, Melstacorp, Distilleries and Lanka Milk Foods.

Stasshani Jayawardena has been appointed chairperson of Aitken Spence and will chair group companies including Aitken Spence Hotel Holdings, the company said in a stock exchange filing. She is also a director of Melstacorp, Distilleries Company of Sri Lanka and Lanka Milk Foods.

Two prominent Sri Lankan business figures, Ken Balendra (85) and Harry Jayawardena (82), died yesterday. Both men had led or chaired multiple listed firms, including Melstacorp, Aitken Spence, Distilleries Co., Ceylon Tobacco, Lanka Milk Foods and Hatton National Bank.

Deshamanya Harry Jayawardena, chairman of Melstacorp PLC, has died aged 82. He also served as chairman of Distilleries Company of Sri Lanka and Aitken Spence.

Fitch recalibrated Sri Lanka’s national rating scale, upgrading seven non-financial corporates (including Sri Lanka Telecom to AA-(lka), Windforce to A+(lka) and Resus Energy to A-(lka)) and revising Bogawantalawa Tea Estates to BBB+(lka).

Distilleries Company of Sri Lanka (DIST.N0000) acquired 99.4% of Heineken Lanka and rebranded it as DCSL Breweries Lanka. The company has launched a new beer range (DCSL Strong, Lager, Stout) targeting local consumers and international markets.

Distilleries Company of Sri Lanka Plc (DIST.N0000) launched a new range of beers after acquiring 99.4% of Heineken Lanka and rebranding it as DCSL Breweries Lanka Ltd. The lineup (DCSL Strong, Lager, Stout) will be distributed across Sri Lanka and targeted at tourists and export markets.

Industries Minister Sunil Handunetti will seek cabinet approval to lift VAT on brown sugar made at Lanka Sugar to help clear unsold stocks at expropriated Pelwatte and Sevenagala plants. Brown sugar currently faces 18% VAT plus a 2.5% levy, costing about Rs300/kg versus Rs220/kg for imported white sugar.