7. Distilleries Company of Sri Lanka
Distilleries Company of Sri Lanka (DCSL) ranks at number seven in the Business Today TOP 30. With the strategic direction of Harry Jayawardena, Chairman, DCSL has been able to perform consistently regardless of the changes in the economic environment. His astute leadership has been pivotal in taking the group forward. Group PAT was 6 billion rupees, with revenue being 89 billion rupees. DCSL contributed 60 billion rupees in taxes to the Government, which was a 46 per cent increase from the previous year.
The alcoholic beverage sector remained the greatest contributor to the total revenue with 79 billion rupees. Balangoda Plantations incurred a loss of 430 million rupees due to an increase in costs and a drop in revenue. However, the plantation business contributed 2.4 billion rupees to total revenue. Continental Insurance secured (A-) Fitch rating, reflecting the financial stability of the company and recording a 30 per cent growth. Melsta Regal Finance performed well with innovative financial solutions. Lanka Bell did not see an improvement in its performance, however the new LTE technology is showing positive results. The Group's total assets increased to 99.3 billion rupees.
DCSL has maintained its status as the second biggest player in the legal alcohol industry. Excise duty is currently at 68 per cent, which has limited competitiveness in the market.
The leisure sector of the Group is in the process of repositioning itself, and Browns Beach Hotel has been relaunched as Heritance Negombo. This is in anticipation of further growth in the tourism sector. Bellvantage, which is a BPO, has a market share of 30 per cent within the banking sector.
DCSL continues to innovate and seek opportunities that will enhance its portfolio and growth. The Group faces challenges with vigour and is poised to realign its strategies with the changing economic policies that are more private sector oriented.