November 27, Colombo (LNW): The Sri Lanka Ports Authority (SLPA) is on track to achieve a significant revenue milestone of Rs. 85 billion by the end of 2024, up from Rs. 83.7 billion in 2023. 

This growth is driven by enhanced operational performance across its various services, according to SLPA’s Harbour Master, Capt. Nirmal Silva.

 He expressed confidence in reaching this target, highlighting positive trends in port activity and improvements in operational efficiency.

One challenge facing SLPA is its dollar-denominated revenue, which makes it sensitive to fluctuations in the exchange rate, potentially impacting final financial results he added. 

 Despite these concerns, the SLPA is forecasting a profit after tax (PAT) of Rs. 19 billion for 2024. In the first half of 2024 alone, containerized cargo traffic reached 1,207,675 TEUs, an 18% increase compared to the same period in 2023. 

Conventional cargo also grew by 22%, totaling 4,747,911 metric tons. These gains were attributed to a range of factors, including the impact of the Red Sea crisis.

During the first six months of 2024, SLPA recorded total operational revenue of Rs. 36.9 billion. Stevedoring services contributed the largest share, generating Rs. 17.1 billion, which accounted for 46% of the revenue. 

Navigation services followed with Rs. 9.9 billion (27%), while Wharf handling brought in Rs. 4.3 billion (12%), according to the Finance Ministry’s data.

However, SLPA’s operational profit for the first half of 2024 was Rs. 18.4 billion, slightly lower than the Rs. 19.8 billion recorded during the same period in 2023. 

Personnel expenses, including salaries and overtime, saw a notable increase, totaling Rs. 10.1 billion and Rs. 4 billion, respectively, due to revised collective agreements effective from January 2024. These costs made up 58.4% of SLPA’s overall expenditures.

 Consequently, the profit before tax for the first half of 2024 stood at Rs. 19.8 billion, a 9.2% decrease from Rs. 21.8 billion in the same period last year.

Looking forward, SLPA is focusing on expanding its infrastructure to support future growth. Upcoming projects include the expansion of Colombo Port and developments in other regional ports, which are expected to strengthen SLPA’s role in global supply chains and aid Sri Lanka’s economic recovery.

The Colombo International Container Terminals Ltd. (CICT) and South Asia Gateway Terminals Ltd. (SAGT) have played significant roles in driving SLPA’s revenue.

 By mid-2024, these two terminals reported a combined revenue of $359.4 million, contributing Rs. 77.54 billion ($125.1 million) in dividends to SLPA, representing 34.8% of total revenue for the first half of 2024. 

Operational performance in this period was robust, with domestic volume increasing by 23.6%, transshipment volume by 15.5%, and total volume growing by 17.7%.

CICT and SAGT continued their strong performance throughout 2024, with CICT generating $90.7 million and SAGT earning $50.5 million by mid-year. In comparison, their 2023 revenues were $167.6 million and $94.2 million, respectively.

A major future development is the Colombo West International Terminal (CWIT), a collaborative initiative involving India’s Adani Group, John Keells Group, and SLPA. 

This project is set to complete its first phase by February 2025, further enhancing SLPA’s capabilities and reinforcing Sri Lanka’s strategic position in the global maritime sector.