LankaClear revenue tops Rs. 500 m with 12% growth

The LankaPay national payment network operator, LankaClear Ltd., held its Annual General Meeting on Friday 28 August at The Kingsbury Hotel, Colombo.

The national payment network operator recorded a 12% growth in revenue surpassing the Rs. 500 m revenue threshold and recording a topline of Rs. 518 m in the financial year 2014/2015. 

The highest-ever revenue figure recorded by the company was mainly driven by growth in electronic transactions across all LankaClear electronic payment products, despite stagnant growth in cheque clearing. 

The company experienced pressure on the bottom line due to higher operational expenses from the LankaPay project and the new payment systems not reaching breakeven point. However, the company recorded a decent PBT of Rs. 183 m and a PAT of Rs. 129 m with a net profit ratio of 25%. 

LankaClear closed the year with a strong balance sheet with net assets reaching Rs. 1.2 b, which is a 9.4% increase compared to the previous year.

The financial year 2014/15 saw the rate of utilisation of electronic payment systems increase much faster than paper based payment instruments. 

Total volumes of cheques cleared through the CITS decreased by 0.53% during the year 2014/2015 compared to the previous financial year whilst the number of electronic transactions cleared through the LankaPay SLIPS Electronic Fund Transfer (EFT) network increased by 16.3% reaching 21 million transactions. The total value of transactions cleared through SLIPS also recorded an impressive growth of 28% reaching Rs. 952 b.

During the year 2014/15 five commercial banks joined the LankaPay common ATM network, expanding the number of interconnected ATMs by 1,296. As at end March 2015, a total of 2,558 ATMs of nine banks accounting for 80% of the total ATMs in the country, were linked up. Currently, the LankaPay Common ATM network has grown to over 2,600 ATMs of 11 banks.

Commenting on the progress, LankaClear Chairman Anil Amarasuriya stated: “I am pleased to report that LankaClear is on target to achieve its final objective of developing and deploying a comprehensive common electronic payment infrastructure for the country.  In the new financial year LankaClear will continue to consolidate the country’s common payment system by educating the public and all other key stakeholders regarding LankaPay, thereby assisting the nation to reap the full benefits of the national common payment network. Given LankaClear’s track record to date, I am confident Sri Lanka will see a fully operational comprehensive national electronic payment platform by end 2016.”

LankaClear’s General Manager and Chief Executive Officer Sunimal Weerasooriya said: “The significant growth in electronic transactions is a testimony to the increasing awareness and confidence placed on the payment systems we deploy. Our achievements would not have been possible without our team of exceptionally talented and dedicated people. A common national payment system to facilitate any type of electronic transaction 24x7 is now ready for deployment, positioning the country for rapid socio-economic change. At the end of the current financial year, Sri Lanka will be ready to enter a modern electronic payments era powered by LankaPay. When fully incorporated into the national financial system, LankaPay will facilitate all citizens in the country to access formal financial services, through any electronic channel, be it a mobile phone, the internet, an ATM, a kiosk or a POS machine. It will expand the reach of formal financial institutions into the rural hinterland, and will potentially slash transaction costs finally resulting in greater financial inclusion.”