LankaClear (Private) Limited,the operator of Sri Lanka’s National Payment Network LankaPay, held its 15th Annual General Meeting on June 28, 2017 at the Kingsbury Hotel, Colombo.
LankaClear recorded the best ever financial performance in over 15 years of its existence by achieving the highest ever revenue of Rs801mn at a healthy YoY growth of 33% and Profit before tax of Rs322mn indicating a very positive bottom line.
This growth was predominantly driven by the new product lines under the Common Card and Payment System (CCAPS) and confirms that the company is on the right track with appropriate strategies that have been executed to perfection during the year paving the way to exceed the anticipated results.
The Company also maintained a healthy Return on Asset (RoA) ratio of 16% and Return on Equity (RoE) ratio of 17%, which indicated YoY growth of 33% and
31% respectively. LankaClear closed the year with a strong balance sheet with Net Assets reaching Rs.1.7 billion, which was a 20% growth compared to the previous year. The company also declared the highest ever dividend for the shareholders in 2016/17.
The financial year 2016/17 saw an impressive growth in the adoption of services of LankaClear as well as agreater penetration of electronic payments. The most spectacular growth was achieved in the transaction volumes of the real time payments area (CEFTS) where the company achieved a phenomenal YoY growth of 1553%. The primary driver for this was the fact that LankaClear team was able to attract a larger number of new members to the system during the year.
The company also experienced an impressive YoY volume growth of 83.5% to reach a cash withdrawal volume of 26 million in the Common ATM Switch (CAS) where the total monthly cash withdrawal and balance inquiry volumes exceeded 3.5 million transactions towards the latter part of the year.
Contrary to the popular beliefs that cheque volumes would go down with more and more citizens and businesses adopting electronic payment modes, in reality, the volume of CITS grew YoY by 4.55%. When the reason for this growth was analyzed, it was discovered that a major contributor to this growth was volumes from the North and the East. During the year 2016/17, the total number of ATMs connected to the Common ATM Switch (CAS) grew to over 3,950 island wide accounting for 99.5% of the total ATMs in the country.
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