Equity Analysis /
Sri Lanka

Sri Lanka earnings preview 2Q 19

    Kavinda Perera
    Kavinda Perera

    Head of Research

    Isuri Munasinghe
    Naveed Majeed
    Mangalee Goonetilleke
    Lakshini Fernando
    Asia Securities
    23 July 2019
    Published by
    • Banking sector credit growth remains weak in the June quarter, NIMS to see short term upside, but impairment charges still high
    • Telecommunication data price competition picks-up
    • Exposure to the consumer and leisure sector across the board takes a toll on Conglomerate earnings
    • FMCG/R earnings to be subdued as consumers remain cautious on spending
    • Alcoholic beverage sector volumes down for the June quarter; beer benefits from price advantage
    • Construction June quarter earnings to remain challenged on the back of slow business activity following Easter Attacks
    • Net exporting Manufacturers to do well in the June quarter
    • Healthcare sector occupancy levels drop during the quarter amidst April events
    • Insurance sector earnings to reflect a slowdown in momentum on weakened spending power
    • A challenging year for the Energy Sector with elections on the cards; gradual impact to be expected through FY20E
    • Business as usual for Logistics; no impact from global trade tensions yet
    • Impact of slow economic growth start to materialize during the June quarter for NBFIs
    • Impact from a slowdown in Sri Lanka Leisure sector to be partially offset by robust growth in Maldives; city hotels to remain weak