One of Sri Lanka’s most innovative conglomerates Aitken Spence released its financial results for the three months ended 30th June showing an increase in profits after tax of 127% to Rs. 491 million over the same period last year.

The diversified Group which leads in its principal sectors posted a revenue of Rs. 4.3 billion, an increase of 61% from last year. Furthermore, the blue chip’s earnings per share increased by 111% to Rs. 12.42.

Last year the tourism sector of the Group accounted a loss primarily due to the effects of the Tsunami and the closure of two of its flagship hotels. However, the key sector has picked up remarkably well, mainly driven by the growth in the Maldives sector, and recorded a significant turnaround in profitability in the period under review. The strong showing is despite the rise in tourist arrivals being modest due to the football World Cup and the prevailing country situation in Sri Lanka.

Aitken Spence Deputy Chairman and Managing Director J M S Brito commenting on the macroeconomic situation said:

“We are very concerned about the situation at the moment. We sincerely hope that all parties will consider the welfare of the people who are again forced to face the devastating results of conflict and strive towards the maintenance of the ceasefire and a sustainable peace.”

He further added that:
“The preservation of the ceasefire and a credible expectation for a lasting settlement for the national issue are vital to the long-term health of the Sri Lankan economy.”

The Company launched its new hotels brand Heritance which has been reserved for a collection of unique properties. Heritance Ahungalla, the first hotel to be rebranded under the Heritance brand, and the iconic Kandalama hotel has successfully started operations after a refurbishment exceeding $18 million.

The hotels sector has strengthened its position in the Maldives by successfully rebranding its properties under the ‘Adaaran’ brand name and by adding a fourth resort Huduranfushi under its umbrella. Furthermore, the Company is forging ahead to strengthen its hotels portfolio through regional expansion.

The Strategic Investments sector recorded an increase in profits of over 55% compared to the same period last year. The substantial improvement in the sector is mainly due to the results of Ace Power Embilipitiya being consolidated in the Group Financial Statements following Aitken Spence PLC increasing its stake to 74%. Last year the company’s results were accounted as a joint venture. Although