Sri Lanka Sunshine estates to yield tourism, hydro power revenue

Aug 07, 2010 (LBO) – Sri Lanka’s Sunshine Holdings said it has struck a deal to supply hydro power and is refurbishing company estate bungalows to accommodate tourists. The group’s net profit for the June 2010 quarter rose 51 percent to 116 million rupees from a year ago with sales up 24 percent to 2.5 billion rupees, a stock exchange filing said.

Bottom line growth was driven by the group’s healthcare and plantations businesses.

Earnings per share in the June 2010 quarter fell to 87 cents from 5.78 rupees the previous year.

Group subsidiary Sunshine Power has signed the first PPA (private power purchase) agreement with the state power utility, Ceylon Electricity Board for its Lower Waltrim estate hydro-project, chairman Rienzie T. Wijetilleke said.

The two mega watt hydro power will commence construction in the second quarter, he told shareholders in a note accompany the group’s quarterly results.

Wijetilleke said that while the group’s tourism sector revenue for the quarter was flat it shows signs of improvement with the increase in tourist arrivals.

“The company is aggressively pursuing its strategy of expanding its estate bungalow