Jetwing Symphony PLC Chairman Hiran Cooray said the current interest rates are unsustainable and a threat to all businesses in every industry, especially considering the many difficulties of operating businesses during this economic crisis.

Addressing the shareholders of the company through 2Q 2022/23 financial report, he further said due to the sudden depreciation of the Sri Lankan rupee against the US dollar which occurred during the latter half of the previous financial year, Jetwing Symphony PLC incurred a 3,611% increase in unrealised exchange losses, from LKR 10 million to LKR 378 million.

The full statement of Jetwing Symphony PLC Chairman's review is as follows,

Jetwing Symphony PLC - Chairman's message

Ayubowan (may you live long),

As we share the results of the first half of this financial year, I wanted to write to all of you with the intention of giving you a better understanding of your company's performance along with a brief outlook on the tourism industry at present.

I am extremely pleased with the efforts taken by Hon, Harin Fernando. MinisGr of Tourism and Lands, and his team for the dedicated work they do to revive the tourism industry. At this time of economic uncertainty, substantial growth in tourism will not only benefit those directly involved in the industry as it brings in the foreign exchange that Sri Lanka as a nation so desperately needs. The Hon. Minister himself has participated in multiple international promotions ln the last few months, which is appreciated by all in the industry. We are all pleased that he actively seeks advice from the private sector and encourages his team to work together with us in promoting Sri Lanka and changing the misconception international travellers have of the destination. It is crucial that we give confidence to our partners overseas, and the Hon. Minister presence in these events goes a long way in convincing them to promote our paradise island. The success of tourism depends heavily on political stability, and we encourage all political parties, including H.E. Ranil Wickramasinghe, to work together to help revive the industry and country. This is the time to work as one, leaving aside personal agendas, to instil passion, love, and pride in the hearts of all Sri Lankans.

Moving on to your company's performance, I am delighted to note that revenue increased by 181% compared to the first half of the previous financial year, from LKR 312 million to LKR 877 million, Despite the crippling challenges we all faced from April to September, our teams were able to continue operating with a positive mindset and deliver a satisfactory performance. Further, we were able to achieve a 1,333% increase in operating profit, from a loss of LKR 18 million to a profit of LKR 223 million. Again, we were able to achieve this with stringent cost controls in place and the efforts of our management company - Jetwing Hotels Ltd, together with the hotel managers and their teams to forge ahead against all odds.

While our operational performance was extremely satisfactory under the circumstances, there are two reasons for the poor bottom-line performance. First the exponential increase in interest rates resulted in a 214% increase in the finance cost, from LKR 140 million to LKR 440 million. The current interest rates arc unsustainable and a threat to all businesses in every industry, especially considering the many difficulties of operating businesses during this economic crisis. Due to the sudden depreciation of the Sri tankan rupee against the US dollar which occurred during the latter half of the previous financial year, we incurred a 3,611% increase in unrealised exchange losses, from LKR 10 million to LKR 378 million, Due to these non-operational elements, the net loss for the period increased by 125%, from LKR 338 million to LKR 762 million.

Assuming the country maintains stability, it is likely that the numbers will improve considerably in the remaining months of the financial year, as it coincides with the winter season, which is typically the busiest period for the industry. Even in the darkest of times, I have never lost hope in the potential of this industry. I firmly believe that tourism will play a pivotal role in resurrecting Sri Lanka's economy, and I thank all of you for sharing this optimism through your investments. I also deeply appreciate your patience and the tremendous support you continue to give us. The pearl of the Indian Ocean will soon be the destination of choice for travellers from around the world - and in due course, you will be rewarded for your patience.

May God bless you all,

Hiran Cooray
Chairman - Jetwing Symphony PLC
3rd November 2022