Aitken Spence PLC said this week that profits rose by 13.6 percent to Rs 387 million in the quarter to June 2008 with the tea sector booming while the tourism sector – here and in the Maldives – fared dismally.
Group turnover was up 8.5 percent to Rs 6.3 billion, the company said. Deputy Chairman and Managing Director Rajan Brito was quoted in a statement as saying that despite the challenging macroeconomic environment, with high inflation and interest rates affecting the performance of Sri Lankan operations in all sectors, the integrated logistics sector and the strategic investments sector recorded impressive growth in performance.

“The domestic tourism industry continues to struggle in the face of tremendous macro challenges which have reflected on our domestic tourism sector’s performance,” he added. The Spence report is the latest results of companies to flow in during what is called the traditional reporting season for end June quarterly results. The company's quarterly performance is expected to attract some interest in Spence stocks in the Colombo bourse. The diversified Group’s newest resort in the Maldives – Vadoo acquired in October 2007, was closed for renovation during the quarter. The company expects to reopen the resort under the Adaaran brand early next year.

The company said the performance of the Strategic Investments sector was strengthened by the improvement in profits in plantations due to a rise tea prices. In fact, the Group company, Elpitiya Plantations recently revealed it’s best-ever year of financial performance. Aitken Spence School of Hospitality in Ahungalla is scheduled to commence training for its fourth batch of students in August, 2008. The School, which provides international hospitality careers to rural youth, expects to count 100 students by the end of the current quarter.