• Reduced finance costs and banking sector performance drive growth
• Revenue jumps 35% y-o-y, but earnings decline compared to Q3

Sri Lanka’s listed companies’ corporate earnings grew by 19% year-on-year (y-o-y) in the fourth quarter of 2024, driven by reduced finance cost and improved economic activities.

According to Capital Alliance Limited (CAL), corporate earnings of listed companies grew by 19% y-o-y to Rs. 218 billion in the fourth quarter.

The earnings growth was primarily driven by benefits through reductions in net finance costs, increased economic activities and performance in the banking sector.

“Earnings were mostly driven by higher profitability from the banking sector, food, beverage and tobacco sector, financial services sector and capital goods sector,” CAL said.

However, corporate earnings reduced by 7% when compared to the third quarter, which recorded a total earnings of Rs. 236 billion.

CAL said that the banking sector posted the highest earnings, with a 160% y-o-y increase in profitability primarily due to impairment reversals taken after the finalisation of the external debt restructure.

The banking sector recorded Rs. 61.9 billion of total earnings in the fourth quarter.

Moreover, CAL said that the total revenue of the listed companies jumped by 35% y-o-y in the fourth quarter to Rs. 2.08 trillion.

Top gainers for the quarter were Commercial Bank which gained a total of Rs. 24 billion and HNB with Rs. 20.5 billion in gains.

Top losers were Hela Apparel with Rs. 3 billion loss and Softlogic Holdings with Rs. 2.7 billion loss.