LMD 100 Q&A

RANK 57

We strongly feel if there is one thing that will tremendously improve the ease of doing business, it is digitalisation

Q: As Sri Lanka begins a fresh chapter in its political and economic story, how ready and able is the corporate sector to generate growth while surmounting the challenges of the past?

A: ACL Cables (ACL) is optimistic that as Sri Lanka embarks on a new chapter, a business friendly environment – founded on high levels of transparency, low political interference, digitalisation and prudent financial management – will boost economic activity across all sectors.

Recent government policies also reinforce support for local industries, further boosting our confidence. We have witnessed vital confidence drivers including Japan’s intention to resume stalled projects, increased tourist arrivals, improved stock market indices, lower interest and inflation rates, and greater stability of the rupee.

The government’s investment in renewable energy is also well received. The 40 GW renewal energy project will further drive electrification and create new opportunities for the sector.

ACL has always been at the forefront of technological innovation in the fields of transmission, distribution and usage of electricity. Our pioneering spirit has enabled us to compete with the best in class globally. Driven by our core values of quality and customer centricity, ACL’s readiness to seize opportunities has become ingrained in our DNA.

Suren Madanayake
Managing Director

Q: In your view, how do global business and geopolitical dynamics impact Sri Lankan businesses?

A: Sri Lankan businesses do not operate in isolation – global issues inevitably do impact them. The impact on a business varies, depending on the sector within which it operates. However, global shocks typically have a great impact on most businesses.

ACL’s primary raw materials – copper and aluminium – are highly sensitive to global and regional disruptions.

Q: Considering the South Asian region, what business and investment prospects do you see for your company?

A: With an excellent track record for unmatched quality, ACL will continue to innovate and develop products for both local and global markets.

Q: What is your assessment of the country’s risk profile? 

A: We trust that the new government will establish a regime of transparency and take decisive measures to root out bribery and corruption.  It will be essential for the government to manage key economic drivers and ensure prudent financial stewardship.

Furthermore, it must take steps to create an environment that boosts production, improves productivity – particularly in the public sector – and continues to drive exports and foreign currency earnings.

Q: What are the main challenges facing the sector that your organisation is part of?

A: The main challenges facing the sector are retaining a skilled workforce and the dumping of lower quality products – es­pecially those from larger manufacturing bases such as India and China.

Some of these products enter duty-free as a result of aggressive and dubious lobbying by parties with vested interests and we hope to raise this issue with the relevant authorities shortly.

Q: How can Sri Lanka improve its ease of doing business and competitiveness on the international stage?

A: We strongly feel if there is one thing that will tremendously improve the ease of doing business, it is digitalisation. Well designed digitalisation can eliminate undesirable interventions, which are often the root causes of undue bureaucracy, political interference and corruption.

Q: How is your company adopting environmental, social and corporate governance (ESG) standards?

A: ACL is a publicly listed company on the Colombo Stock Exchange (CSE). In addition to being governed by mandatory statutes, we place the highest priority on caring for the environment, reaffirming our commitment to environmental protection and total quality management systems. Our manufacturing facility is certified under ISO 14001 and ISO 9001.

ACL is the proud recipient of many accolades and won the gold award at the recently held National Chamber of Exporters (NCE) awards, as well as the certificate for ethical trading. These recognitions serve as a testament to our strong value system.

Q: What are your company’s main goals and objectives for financial year 2024/25?

A: Our goals and objectives will always be driven by the need to serve our customers better. As such, we will continue to deliver new products and processes through technological innovations, maintaining our position as first in class for low voltage cables – not only in our home market but also as the preferred choice for regional and global customers.

REVENUE (RS. M)
29,196

REVENUE CHANGE
(3)%

PROFIT AFTER TAX (RS. M)
3,446

PROFIT CHANGE
(51)%

TOTAL ASSETS (RS. M)
38,268

SHAREHOLDERS’ FUNDS (RS. M)
26,625

MARKET CAP (RS. M)
20,148

EARNINGS PER SHARE (RS.)
11.93

PRICE EARNINGS RATIO
7.05

EMPLOYEES
1,595

Telephone: 7608300 | Email: info@acl.lk | Website: www.acl.lk