Laksala makes comeback with Rs. 4 mn in profits

Sri Lanka’s leading national market facilitator Laksala has made a comeback to profitability.

Laksala which incurred a loss of Rs. 21 million, reports a net profit of Rs. 4 million in 2016. Supplier payments, Laksala’s main channel of direct support to the arts and crafts sector of the country, rose by a huge 33% in 2016 to Rs.74 million, from 2015’s Rs. 223 million,Laksala Director General and CEO Ali Ahlam Nawaz said.

As a result of management initiatives on cost cutting and stringent supply chain management, Laksala also managed to reduce expenses by Rs. 30 million in 2016 in comparison to 2015. Laksala’s rural purchases in 2016 increased by 9% to Rs.30 million in comparison to 2015.

“Laksala’s return to profits shows that high quality Sri Lankan SME creations have local and international demand,” Industry and Commerce Minister Rishad Bathiudeen said.

“Laksala supports the local arts and crafts sector by directly purchasing from them. We are now able to show that supporting local arts and crafts sector is worthwhile and it is more than handing out subsidiaries to them. They are showing results. Laksala’s return to profits also shows that high quality Sri Lankan SME creations have local and international demand. We are looking for bigger sales in Avurudhu season.” Laksala operates 12 showrooms islandwide.