Nov 20, 2012 (LBO) – Cargills (Ceylon) Plc Sri Lanka’s a consumer goods group which runs the island’s largest retail network said its taking stock of future expansion following a budget for 2013 and a slowdown in consumer spend. Inflation picked up sharply in 2012 and the rupee fell after authorities took large volumes of credit to manipulate energy prices and resisted interest rate rises with printed money.
“Transaction growth in the Retail sector was below expectation while a decline in the consumption of branded FMCG goods continues,” Cargills told shareholders in a stock exchange filing.
“The trend was more evident in the urban markets where the increase of fuel and utility prices has had a greater impact than in the regions.”
A budget for 2013 proposed extending value added tax to the retail trade, targeting larger operators.
“This together with the macro-economic implications of the 2013 budget on our retail segment requires the Group to take stock of its future investment and expansion plans,” the group said.
“While the growth of our core businesses would remain on course the Group would certainly review its risk appetite to ensure optimum and sustained value creation for our shareholders and t