Latest Press Release

Tokyo Cement Group kicks off 2026 leg of ‘Ivuru Rakina Pawuru’ with New Zealand Rugby

Tokyo Cement Group, in collaboration with the Mahaweli Authority, launched the 2026 tree-planting season of the Ivuru Rakina Pawuru project near the Polgolla Dam in Kandy, joined by members of the touring New Zealand Under-85kg rugby team. The event reflected the sustained commitment to restoring and safeguarding the banks of the Mahaweli River, gaining international recognition for its far-reaching value creation.

The event brought together officials representing the Mahaweli Authority, the Central Environment Authority, ranking officers of the Sri Lanka Rugby Federation, students from Kandy Model School in Polgolla, and residents of the surrounding community, with members of the New Zealand Under-85kg rugby team, to plant 100 Kumbuk saplings along the riverbank, highlighting a shared dedication to environmental stewardship.

Tokyo Cement Group’s Ivuru Rakina Pawuru programme partners the Ministry of Environment and Mahaweli Authority since 2017, in their concerted efforts to reforest the Mahaweli riverbanks with native species such as Kumbuk and Mee, supporting the sustainable management of vital water catchment areas.

Tokyo Cement Group sponsors the Ivuru Rakina Pawuru endeavour as part of its forest tree planting programme. The company drives the project by supplying native forest trees with medicinal value such as, Kumbuk, Karanda, Mee, and Ingini, propagated at the two Tokyo Cement Forest Tree Nurseries situated in Trincomalee and Mahiyangana. These plant varieties help restore natural biodiversity, whilst preventing soil erosion in the riverbanks. They are distributed among various community and state organizations, who use them in reforestation campaigns across the island including the Mahaweli zones.

The initiative forms part of the company’s wider sustainability agenda, through which it successfully integrates social welfare and environmental conservation into its corporate DNA. As part of their continuous mission to enrich the country, its people, and the environment that is exemplified through far-reaching initiatives like these, the Tokyo Cement Group reinforces its position as the leading partner in nation-building.–

Tokyo Cement posts strong FY2025/26 Q4 performance amidst intense cost pressures

Q4 Financial Review Tokyo Cement Group (Tokyo Cement) reported a turnover of Rs. 17,623 million for the 4th Quarter ending 31st March 2026, compared to Rs. 12,960 million recorded in the corresponding quarter of the previous year, reflecting a 36% growth in turnover. The Group reported a Profit After Tax (PAT) of Rs. 577 million …

Q4 Financial Review
Tokyo Cement Group (Tokyo Cement) reported a turnover of Rs. 17,623 million for the 4th Quarter ending 31st March 2026, compared to Rs. 12,960 million recorded in the corresponding quarter of the previous year, reflecting a 36% growth in turnover.
The Group reported a Profit After Tax (PAT) of Rs. 577 million for the quarter, compared to Rs. 664 million recorded in the same period last year. Profitability during the quarter was impacted by depreciating currency and rising material costs, as a result of the geopolitical disruptions affecting global trade flows.

FY 2025/26 Financial Review
For the Financial Year ending 31st March 2026, the Group reported a turnover of Rs. 61,011 million, compared to Rs. 50,096 million recorded in the previous year, representing a 22% growth in turnover. During the Financial Year, the Group recorded a 28% growth in cement sales volumes, significantly outperforming the overall industry growth of 19%, further strengthening its position as the market leader.
The Group reported a PAT of Rs. 2,580 million for the year, compared to Rs. 3,459 million recorded in the previous Financial Year. Profitability was impacted by the Group absorbing a substantial portion of cost escalations in order to minimise price volatility for end consumers and safeguard market share in an intensely competitive environment. Furthermore, capitalization of the capacity expansion projects and the acquisition of a vessel for coastal shipments increased Depreciation and Financial Expenses.

The Economic Environment
The resumption of previously stalled government-funded infrastructure and private-sector construction projects drove an increase in demand for cement and concrete through the Financial Year. This demand momentum was further compounded upon by the cyclical increase in construction activities during the January-March period and the post-Ditwah rebuilding efforts. Consequently, national cement consumption recorded a year-on-year increase of 19% to 5.62 Mn MT during the Financial Year.
Whilst the encouraging financing environment and stable material prices continued to support sector growth, persistent challenges in sourcing skilled and unskilled labour remained one of the most critical constraints faced by the industry.
Macroeconomic conditions over the course of the Financial Year remained relatively resilient, supported by strong fiscal performance, rising remittance and foreign exchange inflows, subdued inflation, and robust private sector-led growth. However, escalating geopolitical tensions disrupted raw material imports and increased costs in the last quarter, leading to price increases across sectors. As a result of the economic shock, the Sri Lanka Purchasing Managers’ Index (PMI – Construction) recorded the highest (January – 75) and lowest (March – 57) indices since April 2025.
The Rupee which appreciated against the USD by 1.6% and 1.9% in Q1 and Q2 respectively, started to depreciate by 1.1% in Q3 and 6.0% in Q4 of FY2025/26. The risk of eroding fiscal buffers continued on to the Q1 of FY2026/27, where the Rupee depreciated a further 1.7% against the USD. During the quarter, fuel prices were raised by 38%, driving up operations and distribution costs across industries. Deployment of the new vessel for coastal shipping helped improve distribution efficiency from Trincomalee to the rest of the country, while also reducing exposure to fuel shortages and transport delays.

Outlook
External shocks continue to pose a significant risk to macroeconomic stability, with constrained export prospects, potential disruptions to foreign remittance inflows, and the resulting weaker purchasing power moderating economic activity. Elevated energy prices, currency depreciation, and disruptions to trade flows, tourism, freight movement, and foreign exchange markets will continue to weigh negatively on economic activity and investor sentiment.
The local value-adding manufacturing sector commenced the Financial Year 2026/27 against a backdrop of rising fuel, energy, raw material, and freight costs, resulting in significant margin pressures in the short-term. In response, companies will be compelled to adopt prudent pricing adjustments to sustain profitability while safeguarding market share within a highly competitive and price-sensitive environment. Accordingly, earnings are expected to remain subdued in the short- to medium-term as businesses may prioritise volume growth.
The Group anticipates weaker demand during the first Quarter of the new Financial Year due to adverse weather conditions, cautious investor sentiment, and broad-based increases in material prices deployed by both local manufacturers and importers. Whilst economic uncertainty may impede the commencement of new investments, ongoing projects are expected to proceed with relatively limited disruption.
Nevertheless, the recent appointment of local contractors for the Rambukkana-Galagedara section of Phase II of the Central Expressway is expected to contribute positively to sector growth, whilst the timely commencement of other large-scale infrastructure projects proposed under the 2026 Budget is anticipated to further reinforce construction demand in the months ahead. In addition, the acceleration of post-cyclone reconstruction of housing, transport infrastructure, schools, and other critical public assets is expected to sustain construction sector activity during the remainder of the calendar year.
Tokyo Cement maintains a cautiously optimistic medium-term outlook and remains confident in the country’s economic fundamentals. The Group’s investments in capacity enhancements positions it to capture the anticipated growth in demand arising from renewed development activity. Continuing its disciplined cost management approach, Tokyo Cement Group remains committed to safeguarding stakeholder value and playing an active role in supporting the nation’s economic resurgence. —

Tokyo Cement Crowns Top Performers at 2026 Dealer Convention

Tokyo Cement Company (Lanka) PLC recognised their Top Dealers for outstanding performance at the Annual Dealer Convention held at the Shangri-La Colombo. City Hardware & Stores-Jaffna walked away with the Best Dealer 2026 Grand Award, while Shanmugam Stores-Kilinochchi and National Trading Stores–Kurunegala, won 1st and 2nd Runner-Up awards, respectively, in the top category, among a total of 135 top performers who received prizes at the award ceremony.

Tokyo Cement Group Chairman, Dr. Harsha Cabral PC. and Managing Director, Mr. S.R. Gnanam graced the occasion, joined by members of the Group’s Management Committee and representatives from the Sales and Marketing teams. The event brought together all members of the Tokyo Cement distribution channel making it a memorable get together. The gala event culminated in the evening with a star-studded entertainment line-up, befitting the outstanding achievements of the Tokyo Cement dealer network.

Addressing the gathering, Chairman of the Tokyo Cement Company (Lanka) PLC, Dr. Harsha Cabral PC, commended the strength of the relationship between the company and its channel partners, built on trust and mutual respect, which enables the company to go forth and overcome the challenges with unwavering confidence.

Mr. S.R. Gnanam, Managing Director of the Tokyo Cement Company (Lanka) PLC, offered his felicitations to all dealers island-wide for their steadfast support, which has enabled Tokyo Cement to sustain its industry leadership regardless of the recent business disruptions. He reaffirmed Tokyo Cement’s solid commitment to stand by its retail partners and help them succeed. Acknowledging the long-standing partnerships between Tokyo Cement and its dealers, he described the company as a deep-rooted and thriving ecosystem, working together to drive shared growth.

Best Dealer 2026 – City Hardware & Stores, Jaffna, accepts the award from Tokyo Cement Group Chairman, Dr. Harsha Cabral PC. and Managing Director, Mr. S.R. Gnanam

1st Runner Up, Tokyo Cement Dealer Convention 2026 – Shanmugam Stores, Kilinochchi

2nd Runner Up, Tokyo Cement Dealer Convention 2026 – National Trading Stores, Kurunegala

The Annual Dealer Convention is where the cement giant celebrates the achievements of its valued distribution network. As a truly homegrown enterprise, Tokyo Cement Group has pledged to enrich the national economy through local value creation, an endeavour in which its dealers play an indispensable role.

Together, the Group has built a prestigious portfolio of trusted household brands, including the popular cement brands NIPPON CEMENT, TOKYO SUPER, NIPPON CEMENT PRO and ATLAS CEMENT. Its flagship product, TOKYO SUPER Cement, recently earned the coveted SUPERBRANDS status, becoming the only cement brand to receive this distinction, in recognition of its outstanding commitment to quality, innovation, and performance excellence. Beyond cement, the company is the driving force behind TOKYO SUPERMIX Ready-Mixed Concrete network, and an innovative range of dry mortar products, including TOKYO SUPERBOND, TOKYO SUPERSEAL and TOKYO SUPERCAST among others, each a market leader in its respective category.

By delivering superior products for iconic projects that define Sri Lanka’s growth, the company has firmly cemented its legacy as the leading partner in nation-building. It remains committed to continuously raising the bar on quality while strengthening its position as a true industry trailblazer. —

Photo: Top Category Winners of the Tokyo Cement Dealer Convention 2026 with the Chairman – Dr. Harsha Cabral PC, Managing Director – Mr. S.R. Gnanam, and General Manager Group Marketing – Mr. Dashantha Udawatta

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TOKYO SUPER, the only cement brand to earn SUPERBRANDS Status

TOKYO SUPER Cement, flagship brand of the Tokyo Cement Group, has been awarded the coveted SUPERBRANDS status for 2025 in recognition of its outstanding commitment to quality, innovation, and performance excellence. The title was conferred to TOKYO SUPER at the gala awards ceremony held recently to celebrate the impressive brand stories of the strongest and …

TOKYO SUPER Cement, flagship brand of the Tokyo Cement Group, has been awarded the coveted SUPERBRANDS status for 2025 in recognition of its outstanding commitment to quality, innovation, and performance excellence. The title was conferred to TOKYO SUPER at the gala awards ceremony held recently to celebrate the impressive brand stories of the strongest and most valuable brands in the market.

Manufactured to meet the highest quality and performance standards, TOKYO SUPER has established itself as a game changer in the construction industry. Reaching consumers as TOKYO SUPER OPC, the county’s most popular cement brand, and TOKYO SUPER BHC, the greenest cement in the market, TOKYO SUPER is the only Cement brand among the elite set of SUPERBRANDS 2025. Furthermore, TOKYO SUPER lends its trusted reputation to a comprehensive portfolio of innovative dry-mortar products. Spanning across waterproofers, wall plasters, mortars, and market-leading tile adhesives, TOKYO SUPER presents a comprehensive range of advanced construction solutions.

Ranked among the country’s most respected brands, TOKYO SUPER is marketed by the Tokyo Cement Group, a company intricately linked with the nation’s progress. The SUPERBRANDS recognition is the latest addition to a long list of prestigious accolades earned by the Group over 44 years of reshaping the country’s construction landscape. Whilst being Sri Lanka’s only public-listed cement manufacturer, Tokyo Cement Group is the market leader in cement, ready-mix concrete, and cement-based dry mortar products. Having supplied high-quality cement and concrete for iconic constructions and landmark infrastructure projects Tokyo Cement Group has cemented its market leadership as the trusted partner in Nation-building.

SUPERBRANDS Sri Lanka is the local representative of London-based Superbrands Worldwide, the world’s largest independent arbiter of branding operating across 90 countries. Superbrands are chosen by an independent council of experts and luminaries from the fields of branding, advertising, marketing, design, product management, public relations, and business management. Brands that achieve the highest rating are granted Superbrands status each year and invited to join the programme, strengthening a brand’s position with prestige and setting it apart from the competition.

Photo: (standing from L to R)

Frank Gabriel – General Manager (Marketing), LMD, Shariful Islam – Chairman, Superbrands Sri Lanka, D.S.(Billy) Walpola – Director Marketing, Tokyo Cement Group, Nipuna Perera – Marketing Manager Corporate and Value-Added Products, Tokyo Cement Group, Brian Emmanuel – Managing Director, LMD.

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Tokyo Cement’s FY25/26 Q3 Financial Results Position Group for Industry Upswing

Quarterly Financial Review Tokyo Cement Group (Tokyo Cement) reported a turnover of Rs. 14,523 million compared to Rs. 11,639 million over the same period of the previous year, and a profit after tax of Rs. 332 million compared to Rs. 1,006 million over the same period of the previous year, for the 3rd Quarter ending …

Quarterly Financial Review

Tokyo Cement Group (Tokyo Cement) reported a turnover of Rs. 14,523 million compared to Rs. 11,639 million over the same period of the previous year, and a profit after tax of Rs. 332 million compared to Rs. 1,006 million over the same period of the previous year, for the 3rd Quarter ending 31st December, 2025.

This 25% growth in turnover stems from significant volume growth which outpaced the industry and validated the positive outlook forecasted for the year.

The decline in profitability can be attributed to multiple factors, that included a reduction in selling price, increases in raw material costs, compounded by currency depreciation, the impact of the capitalisation (depreciation and interest) of expansion projects in Trincomalee, and the acquisition of a vessel to facilitate coastal shipments. These strategic investments will enhance operational efficiency and support long-term profitability as they are utilised.

The Economic Environment

Construction activity demonstrated a strong momentum during the quarter as reflected in the Sri Lanka Purchasing Managers’ Index (PMI – Construction), which peaked in September and remained elevated through October 2025. The stable pricing environment facilitated the consistent increase in construction activity, resulting in continued volume growth. Hospitality, housing, large- and medium-scale condominium projects were the key demand drivers, whilst regional infrastructure development projects allowed the expansion of industry activity.

However, this positive trajectory was disrupted by Cyclone Ditwah, which caused widespread flooding and landslides resulting in significant loss of life and assets. The direct physical damage to buildings, agriculture, and critical infrastructure caused by the cyclone was estimated at USD 4.1 billion, according to the Global Rapid Post-Disaster Damage Estimation (GRADE) report published by the World Bank.

The industry slowdown, in the immediate aftermath of the cyclone in the last week of November, continued through December due to cyclone-related disruptions and the holidays. The Government, supported by local and international partners, initiated a comprehensive reconstruction and compensation programme expected to be rolled out in the upcoming months. This includes a Rapid Financing Instrument (RFI) facility from the International Monetary Fund (IMF) and the World Bank as emergency funding towards the post-Ditwah recovery efforts.

Despite the Rupee depreciating by around 6% against the Dollar, fiscal performance remained resilient, aided by improved revenue collection and strong inflows from tourism and workers’ remittances. Export earnings reached USD 12.99 billion from January to September 2025, representing a 7% year-on-year growth, while remittances increased by 20.7% year-on-year to USD 7.19 billion for the period January to November. The twin surpluses recorded in the primary fiscal balance and the external current account continued a steady path, demonstrating continued macroeconomic stability despite the impact of Cyclone Ditwah.

Outlook

Several multilateral lending agencies and local investment analysts have highlighted the robust performance of key fiscal indicators, supported by the strong performance of the twin surpluses. The persistence of low interest rates, a stable currency, and subdued inflation over the medium- to long-term is expected to provide a supportive backdrop for sustained economic growth.

Historically, the industry records its strongest performance in the construction cycle in the January to March period (4th Quarter). Current industry statistics project a positive outlook for the next three months, supported by the commencement of several new development projects in the new year, and encouraged further by post-cyclone reconstruction efforts.

The government has allocated LKR 1.38 trillion for capital expenditure through the 2026 Budget, encompassing major infrastructure investments such as highways, road networks, irrigation, energy, and local infrastructure. Key state-sector development projects included therein, such as the World Bank-funded Kandy Multimodal Transport Terminal (KMTT) Development Project and the Japanese-funded Kadawatha-Meerigama section of the Central Expressway, are expected to boost the industry momentum.

Additionally, awarding of the BIA Airport Development Project Phase II contract, funded by the Japan International Cooperation Agency (JICA), is anticipated to drive a significant demand increase within the year. In addition, a significant portion of the LKR 500 billion supplementary allocation for post-cyclone rebuilding is expected to be directed towards the reconstruction of housing, transport networks, schools, and other critical infrastructure, providing an additional stimulus to construction activity and demand for cement and concrete.

Tokyo Cement maintains an optimistic short- to medium-term outlook and remains confident in the country’s economic fundamentals. The Group’s investments in capacity enhancements positions it to capture the anticipated growth in demand arising from renewed development activity. Continuing its disciplined cost management approach, Tokyo Cement Group remains committed to safeguarding stakeholder value and playing an active role in supporting the nation’s economic resurgence. —

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