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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. —

Tokyo Cement Reports Steady Results for FY25/26 Q2 as Construction Sector Rebounds

Quarterly Financial Review Tokyo Cement Group (Tokyo Cement) reported a turnover of Rs. 16,322 million and a Profit After Tax (PAT) of Rs. 1,003 million for the 2nd Quarter ending 30th September 2025, compared to a turnover of Rs. 13,833 million and a PAT of Rs. 1,082 million, in the same period last year. Whilst …

Quarterly Financial Review Tokyo Cement Group (Tokyo Cement) reported a turnover of Rs. 16,322 million and a Profit After Tax (PAT) of Rs. 1,003 million for the 2nd Quarter ending 30th September 2025, compared to a turnover of Rs. 13,833 million and a PAT of Rs. 1,082 million, in the same period last year. Whilst volume growth remained stable quarter-on-quarter, profit margins contracted with the capitalisation of the Trincomalee expansion projects. The Economic Environment The quarter started with renewed optimism, highlighting a sustained boom in construction activities. Manufacturers and suppliers of construction materials reported continued volume growth, supported by a stable pricing environment, which further propelled sectoral performance. Reflecting the industry’s steady recovery, September recorded the highest sales volumes in cement sales since the onset of the 2022 economic crisis. Another key enabler of this growth was the notably lesser rainfall experienced in 2025 compared to the previous two years, which allowed construction sites to operate relatively uninterrupted. Lower interest rates and improved macroeconomic stability spurred a significant expansion in private sector credit, driving increased investment activity across both construction and real estate sectors. Developers of large-scale residential and mixed-use projects capitalised on the low-interest environment by introducing attractive financing schemes, stimulating end-user demand. This momentum was further reinforced by government-led infrastructure development projects starting with the Kadawatha-Mirigama section of the Central Expressway and several other regional developments undertaken by local government bodies. Robust fiscal performance was underpinned by improved government revenue collection, whilst the economy was estimated to have grown by 4.8% during the first half of 2025. Notable improvements in inflows from tourism and workers’ remittances helped stabilise the Rupee’s performance against the Dollar, and led to an upgrade in the country’s sovereign rating by all three major rating agencies. Outlook The recently announced credit rating upgrades coupled with a positive fiscal trajectory, signaled that the country is within reach of achieving its short-term fiscal targets. This reaffirms a steady recovery from the economic challenges that plagued the business environment in the past years. The continuation of low interest rates, a stable currency, and subdued inflation over the medium to long term is expected to sustain this growth momentum, despite temporary shocks that may arise due to weather disruptions and energy cost fluctuations that can impact inflation targets. Sustained economic progress, however, depends largely on the Government’s ability to attract Foreign Direct Investment (FDIs) into key sectors and to strengthen partnerships with multilateral lending agencies. A series of new policy-based lending agreements with the World Bank and the ADB are anticipated to channel critical investments into nationwide construction activities. Moreover, the resumption of major foreign-funded infrastructure projects is expected to spur demand for cement and concrete. Tokyo Cement maintains its conservative short- to medium-term outlook but remains confident in the country’s economic fundamentals. The Group is well positioned to capture the anticipated growth in demand arising from renewed development activity with a robust production capacity. 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 Group and Foundation of Goodness: A Decade of Nurturing Cricketing Dreams

Photo: Mr. S. R. Gnanam – Managing Director, Tokyo Cement Company (Lanka) PLC. presenting the Cricket Coaching Academy sponsorship for 2025 to Mr. Kushil Gunasekera – Founder/Chief Trustee, Foundation of Goodness. Tokyo Cement Group extended the sponsorship of Cricket Coaching Camps with the Foundation of Goodness (FoG) for the 10th consecutive year. Over the past decade this transformative partnership has opened doors for hundreds of aspiring schoolboys and schoolgirls from remote backgrounds to rise through the ranks and make their mark at divisional, national, as well as international cricket. This year’s sponsorship will primarily focus on the Northern coaching camp, with the aim of creating more opportunities for talented young players from the region to chase their cricketing dreams. In its ten-year history this impactful partnership between Tokyo Cement Group and the Foundation of Goodness has produced 23 exceptional young cricketers from rural communities in the North and South who have earned places in Sri Lankan national teams. To date, nearly 4,200 children from the North and 3,780 from eight schools across 35 southern villages have benefited from the coaching camps led by professional trainers. This includes multiple superstars in the Sri Lanka Women’s National Team, such as Kaveesha Dilhari, Sachini Nisansala, Imesha Dulani, Kawya Kavindi, Umasha Thimeeshani, Nilakshana Sandamini, Sathya Sandeepani, Sachini Gimahani, and many others, bringing unprecedented glory to the country, including winning the Women’s T20 Asia Cup 2024. The FOG Cricket Academy was also the powerhouse behind star-class national players in Sri Lanka’s Under-19 Team including Vijayakanth Viyaskanth, Navod Paranavithana, Malsha Tharupathi, Haren Weerasinghe, and S. Mathushan among others, standing proof of the solid foundation laid by the Tokyo Cement-Foundation of Goodness Cricket Coaching Academy. V. Akash of Heartley College and K. Muthulan of St. John’s College, Jaffna, selected for the Sri Lanka U19 tour of West Indies in September 2025 Adding impetus to the initiative this year, the Northern cricket camp proudly celebrated two of its brightest talents, V. Akash from Heartley College and K. Muthulan from St. John’s College in Jaffna, earning selection to the Sri Lanka U19 National Squad for the West Indies tour in September 2025. Furthermore, the Southern coaching camp celebrated the outstanding performance of Rathgama Devapathiraja College’s U17 Team, comprised of regular campers, led by the 2024/25 MCC at Lord’s Scholarship recipient and rising star Arosha Sithumina taking his side to victory with 150 runs in the U17 All-Island Quarterfinals in Colombo, before going on to win the U17 A-Division Championship. This win combined with their U13 team becoming joint champs, the U15 and U19 teams becoming runners-up meant that Rathgama Devepathiraja College made history by reaching four national finals in a single season. Furthermore, the MCC facility in Hikkaduwa also produced champions, with Sri Sumangala College winning 16 consecutive matches outright to claim both the U19 Two-Day and One-Day Division 3 titles, which is a historical school record, earning promotion to Division 2. A session of the Tokyo Cement North Cricket Camp held in Jaffna The Tokyo Cement-Foundation of Goodness Cricket Coaching Academy started in 2014 by setting up two fully equipped top-grade training grounds in Hikkaduwa and Seenigama. The success of the Southern camp inspired Tokyo Cement to expand the programme to the North in 2017, with the goal of identifying 50 promising young players and training them to become star-class Sri Lankan cricketers. The coaching camps held in the North are received with much enthusiasm, attracting many schoolgirl and schoolboy cricketers from all age groups from Jaffna, Killinochchi, Oddusudan, Mankulam, Mullaitivu, and Vavuniya, who have achieved remarkable results, from national titles to international recognition. More from a Tokyo Cement North Cricket Camp held in Jaffna Guided by renowned coaches headed by Hemantha Devapriya and Susantha Karunarathna, under the leadership of FoG’s Director of Sports, Mr. Anura De Silva, the academy nurtures young talent at grassroot level by giving them access to expert training and facilities. In addition, district and school-level coaches support promising young cricketers to hone their skills and induct them into an elite pool of players who receive specialized training. Tokyo Cement South Cricket Camps are held at Seenigama Surrey Oval This 10-year milestone of the Tokyo Cement–Foundation of Goodness partnership stands as a testament to creating equal opportunities and nurturing the confidence of a new generation of talented rural cricketers, capable of carrying Sri Lanka’s pride onto the international cricket arena.

HE the Ambassador of Japan Visits Tokyo Cement Factory in Trincomalee

His Excellency Akio Isomata, Ambassador of Japan to Sri Lanka, paid an official visit to the Tokyo Cement Factory in Trincomalee, underscoring the long-standing friendship and economic cooperation between Japan and Sri Lanka. The Ambassador was accompanied by Ms. Yukako Mizunuma, Finance Attaché, and Ms. Sachi Tanaka, Second Secretary of the Embassy of Japan. The visit highlighted Tokyo Cement’s latest expansion project, which recently added one million metric tons to the company’s manufacturing capacity, a milestone in strengthening Sri Lanka’s economic expansion and industrial development. HE the Japanese Ambassador and delegation at the Tokyo Cement Jetty Welcomed at the Tokyo Cement Center for Excellence by Mr. S.R. Gnanam, Managing Director of Tokyo Cement Company (Lanka) PLC, and Mr. Michio Matsuoka, Non-Executive Director representing Mitsubishi UBE Cement Corporation, Tokyo Cement’s technology partner, the Japanese delegation toured the Eastern Cement Factory. The program included visits to the newly inaugurated cement mill, the Tokyo Cement Jetty at the Port of Trincomalee, and the A.Y.S. Gnanam Village Heartbeat Empowerment Centre, reflecting the company’s commitment to socio-economic development. HE the Japanese Ambassdor observing the Tokyo Cement Biomass Power Plant For more than four decades, Tokyo Cement has stood as a symbol of the enduring partnership between Japan and Sri Lanka, representing not only industrial growth but also a shared vision for sustainable development. Ambassador Isomata, having observed the facilities of the factory, remarked that he was particularly impressed by the cement company’s achievement of not only strong performance but also 100% biomass-powered electricity generation, as well as highly impactful CSR activities focused on education and capacity-building of people of local communities, including women and children. HE the Japanese Ambassdor at the Tokyo Cement product testing laboratory The Japanese delegation observing a vocational training session held at the A.Y.S. Gnanam Village Heartbeat Empowerment Center Being the country’s largest manufacturer of high-quality cement, concrete, and cement-based innovative products, Tokyo Cement has earned its reputation as the most trusted supplier in the construction industry. The Company is dedicated to enriching the national economy through local value creation, while strengthening Sri Lanka’s industrial progress. With an unwavering commitment to quality, innovation, and sustainability, the company has become an integral part of the country’s growth journey to become the leading partner in Nation-building. — Photo: His Excellency Akio Isomata, Ambassador of Japan to Sri Lanka and his delegation visiting the operations command center at the Tokyo Easter Cement Factory

Tokyo Cement Powers Civil Engineering Innovation at University of Peradeniya ‘Industry-Uni Collaboration Day 2025’

The Department of Civil Engineering of University of Peradeniya in partnership with the Tokyo Cement Group, concluded its flagship event ‘Industry–University Collaboration Day 2025’ with remarkable success, fostering dynamic engagement between academia and industry stakeholders. Prof. Kushan Wijesundara, Head of the Department of Civil Engineering, University of Peradeniya Held at the Centre of Excellence for Water and Sanitation (CEWAS) Auditorium in Ratmalana, the event was graced by the Honourable Prime Minister and Minister of Education, Higher Education, and Vocational Education, Dr. Harini Amarasuriya as the Chief Guest. Other distinguished guests included Prof. Terrance Madhujith, Vice Chancellor, Prof. Lilantha Samaranayake, Dean of the Faculty of Engineering, and Prof. Kushan Wijesundara, Head of the Department of Civil Engineering of the University of Peradeniya, senior faculty members, renowned industry professionals, and both past and present postgraduate and undergraduate students. Hon. Prime Minister Dr. Harini Amarasuriya, in her keynote address, emphasized the importance of curriculum reform to promote STEM education aligned with global standards, the role of university research in advancing industry to meet contemporary development needs, and the importance of establishing equal educational opportunities to transform the nation’s future. The Prime Minister also commended the University’s efforts to produce industry-ready graduates through collaborative work, that nurture practical thinkers equipped with real-world problem-solving skills. Postgraduate and undergraduate students from the University of Peradeniya’s Department of Civil Engineering presenting their innovative solutions at the event This annual event of the Department of Civil Engineering of the University of Peradeniya showcases research output by undergraduate and postgraduate students with the potential to transform the civil engineering sector. It is a platform to share ideas addressing current engineering challenges through novel thinking and innovation. It brings together stakeholders from the government, state authorities, research institutes, public and private firms, academia, and engineering students, to facilitate stronger industry-academia collaboration. Prof. Terrence Madhujith, Vice Chancellor, University of Peradeniya Prof. Lilantha Samaranayake, Dean of the Faculty of Engineering, University of Peradeniya Spanning the full spectrum of civil engineering: Structural, Geotechnical, Transportation, Water Resources, and Environmental Engineering, the event featured poster exhibitions, oral presentations, and case studies from successful academia-industry partnerships. A standout feature of the program was the Shotgun Presentations, where students delivered concise, two-minute pitches of their research projects. The rapid-fire presentations emphasized practical engineering solutions, offering students the opportunity to highlight the department’s cutting-edge research capabilities aligned with real-world needs. Furthermore, faculty members of the Department of Civil Engineering presented potential collaboration opportunities for deeper industry engagement, paving the way for meaningful dialogue among students, academics, industry professionals, and policymakers. Building on its longstanding partnership with the Department of Civil Engineering, Tokyo Cement Group, as the sole sponsor of ‘Industry-University Collaboration Day 2025,’ exemplified the crucial role of industry leaders in nurturing future engineers and advancing applied research. The event allowed Tokyo Cement’s state-of-the-art R&D hub, the Construction Research Centre (CRC) to showcase innovations in cement and concrete technology, demonstrating its leadership in advanced, sustainable construction solutions. The presentation emphasized CRC’s capabilities in re-engineering products, its role in quality assurance, and specialized concrete testing services with a comprehensive Non-Destructive Testing (NDT) laboratory. The event enhanced the far-reaching affiliation between the University of Peradeniya, the pre-eminent academic institution in the country and the Tokyo Cement Group, Sri Lanka’s largest manufacturer of cement, concrete, and cement-based value-added products, reiterating the Group’s commitment to promote world-class knowledge sharing to inspire and uplift the local construction industry.