PREFACE
FROM CRISIS TO COMEBACK
Sri Lanka Inc. registers another financial year of resilience and grit
Financial year 2024/25 marked a period of recovery and renewal for Sri Lanka, as the nation continued to navigate global pressures that often outweighed domestic challenges.
Although the economy has emerged from its most turbulent times, the aftershocks of the economic crisis remain – from the weight of debt to lingering inflationary pressures, despite more stable headline figures.
Reform implementation and a cautiously renewed pace of economic activity defined much of the year’s performance.
The IMF supported programme and external debt restructuring were key milestones with the global lender noting that Sri Lanka’s economy expanded by around five percent in 2024, regaining nearly half of the output lost during the downturn.
Yet, the recovery remains incomplete.
The World Bank’s Sri Lanka Development Update in October notes that while the economy is showing steady signs of a rebound, output continues to lag behind pre-crisis levels and poverty remains elevated. Sustaining the progress made in 2024/25 will depend on the continuity of reforms, it adds.
For the corporate sector, the year was marked by both expansion and strategic adaptation. Many organisations recalibrated their business models, streamlined operations and managed cost pressures while charting a path through the choppy waters.
At policy level, the government underscored the importance of tax reforms, fiscal discipline and investor confidence, even as businesses maintained a measured sense of optimism.
Despite the headwinds, Sri Lanka’s engine of growth demonstrated resilience and many of the listed companies featured in this year’s LMD 100 rankings stand as a testament to that enduring spirit.
On the governance front, Sri Lanka slipped two places in the Corruption Perceptions Index (CPI) released by Transparency International (TI), ranking 115th out of 180 countries in 2024. TI notes that a global erosion of justice systems continues to weaken accountability for public officials, creating a fertile ground for corruption to thrive.
Addressing the United Nations General Assembly, President Anura Kumara Dissanayake likened corruption to an epidemic, warning that it poses a grave threat to both democracy and development.
He said: “Corruption is an obstruction to development, a decisive threat to democracy and global wellbeing.”
Echoing this call, the CEO of Transparency International Daniel Eriksson explains that “corruption worsens social injustice and disproportionately affects the most vulnerable. In many countries, obstacles to justice for victims of corruption persist. It is time to break the barriers and ensure people can access justice effectively.”
While the government has pledged to combat corruption and taken steps to hold wrongdoers to account however, much more remains to be done to strengthen institutions and enforce genuine accountability.
Meanwhile, the World Bank’s South Asia Development Update 2025 report (titled Jobs, AI and Trade) observes that Sri Lanka continues its recovery from the economic crisis of 2022/23, which saw a sovereign debt default and the worst recession since independence.
The report notes: “Healthy corporate earnings have helped push Sri Lanka’s domestic stock market to an all-time high. Revenue over-performance, structural reforms and consistent growth – particularly of services – have improved current account and fiscal positions.”
In this 32nd edition, the LMD 100 sees Hayleys retain the prime spot for financial year 2024/25, marking the highly diversified conglomerate’s second consecutive year at the pinnacle of Sri Lanka’s version of the Fortune 500 – it is also the 10th time that Hayleys has stood at the summit. The group also ranks among the 10 most profitable entities, taking the No. 10 spot for profitability.
LOLC Holdings is second in the pecking order, strengthening its performance with a fourth place ranking for profitability.
And Carson Cumberbatch climbs to No. 3 in the financial rankings, though it slips from third to fifth in terms of bottom line performance.
The latest edition of Sri Lanka’s pioneering listed company rankings reveals that 97 listed corporates (as in the prior year) posted annual revenues of between Rs. 10 billion and 100 billion rupees.
On the profitability front, 21 companies reported a profit after tax of over Rs. 10 billion, which is similar to the previous financial year.
Overall, the 100 leading listed entities posted aggregate revenue growth of two percent while their combined bottom lines surged by an overwhelming 44 percent in the latest rankings. This reflects a year of cautious top line expansion although earnings remained muted – much like in 2023/24.
Launched in 1993/94 as The LMD 50, the latest rankings underscore a striking transformation over three decades – nearly half (24) of the original top 50 companies no longer feature on the list; they’re replaced by an equal number of new entrants that now dominate the upper tier.
Undeniably, the tide of change has reshaped corporate Sri Lanka!
