SLPA targets Rs. 85 b revenue in 2024 as operations expand

Monday, 25 November 2024 02:41 - - {{hitsCtrl.values.hits}}

Sri Lanka Port Authority Harbour Master Capt. Nirmal Silva

Harbour Master Capt. Nirmal Silva highlights positive trends in port activity, efficiency as key drivers
Projects Rs. 19 b PAT for 2024, noting dollar-denominated earnings likely to vary due to currency volatility
Says SLPA registered growth in operational metrics with domestic volume rising by 23.6%, transhipment volume by 15.5%, and total volume by 17.7%

Sri Lanka Ports Authority (SLPA) announced that it is on track to achieve a revenue milestone of Rs. 85 billion by the end of 2024, up from Rs. 83.7 billion in 2023, driven by significant operational growth across its services, a top official said.

SLPA’s Harbour Master Capt. Nirmal Silva expressed optimism about the target, citing positive trends in port activity and efficiency gains.

“We are seeing a significant upwards trend in operations and we hope the target can be achieved,” he told the Daily FT.

Capt. Silva noted that the authority’s dollar-denominated earnings make it sensitive to currency volatility, which can impact final numbers.

He also disclosed that the SLPA is projecting a profit after tax (PAT) of Rs. 19 billion for 2024.

With additional infrastructure projects in the pipeline, including the expansion of Colombo Port and planned developments in other regional ports, Capt. Silva said the SLPA is well-positioned to drive economic recovery and solidify its position in global supply chains. The Colombo International Container Terminals Ltd., (CICT) and South Asia Gateway Terminals Ltd., (SAGT) have been major revenue drivers. As of June 2024, the two terminals reported combined earnings of $ 359.4 million contributing Rs. 77.54 billion ($ 125.1 million) in dividends to the SLPA accounting for 34.8% of total revenue during the first half.

Operational performance in the first half of 2024 showcased robust growth with domestic volume soaring by 23.6%, transhipment volume increased by 15.5%, and total volume grew by 17.7%.

In the same period, CICT generated $ 90.7 million in revenue, while SAGT earned $ 50.5 million.

During the entirety of 2023, CICT and SAGT posted revenues of $ 167.6 million and $ 94.2 million, respectively.

Looking ahead, Capt. Silva said the Colombo West International Terminal (CWIT), a collaborative project between India’s Adani Group, John Keells Group, and the SLPA, is expected to complete its first phase by February 2025.

(CdeS)