Slick Market

Sri Lanka's Prime Minister Ranil Wickremesinghe arrives with flowers to receive blessings at the Gangaramaya Buddhist Temple, Colombo, Sri Lanka on Wednesday 4 April 2018. On wednesday (4), Wickremesinghe survived a no-confidence motion in the Sri Lankan parliament with a 46 vote majority after a 12-hour debate with 122 MPs voted in his support while 76 MPs voting to remove the prime minister. (Photo by Tharaka Basnayaka/NurPhoto via Getty Images)

Mar 14, 2010 (LBO) – Sri Lanka’s Chevron lubricants unit said sales fell in 2009 with a downturn in local and export demand, but is expecting a recovery this year with new demand expected from former war torn areas. The firm said industry volumes fell 7.0 percent in which was the third consecutive year of declines “due to cautious spending and escalating prices in the fourth quarter”.

Chevron said a “large percentage of vehicle owners had opted to stretch their service,” though construction and power generation sectors were “reasonable.”

“Competition in the market place ahs reached high levels with eight new player entering the already crowded market during the year,” managing director Kishu Gomez told shareholders in the annual report.

The firm had cut prices by 10 percent as raw material prices fell in the first half of the year.

Though revenues fell to 8.69 billion rupees from 8.90 billion a year earlier, cost of sales fell faster to 5.59 billion rupees from 6.77 billion rupees allowing the firm to post profits of 1.49 billion rupees, up from 947.7 million rupees.

Chevron Sri Lanka exports to Bangladesh and Maldives also suffered.

“The economies of Maldives and Bangladesh underwent