Integrated Annual Report 2022/23

Operations centred on two key growth verticals: international trading and Information Technology services.


The Group’s investment cluster involves operations in two key growth verticals of the Sri Lankan economy: Export of goods and Information Technology (IT) services.

Export operations

With 45 years in business, Tropikal International helms the Group’s international trading arm and is involved in trading of fresh produce, dried foods, and value added exports. Expanding focus to include organic products, the Company maintains compliance with a number of international certifications for food safety and quality, such as ISO 22000, HACCP, BRC, and GMP; and produces and exports organic, kosher, and halal-certified products to selected markets.

IT solutions

The Group’s offering in the IT sector is led by ITX360, an end-to-end IT solutions provider. What began as an internal shared-services function that overlooked the IT needs of the Group, has developed into a modern company with a wealth of experience and rich client-base consisting of some of Sri Lanka’s largest bluechip corporations. The Company employs over 130 professionals and offers a full suite of services. Backed by an extensive supplier ecosystem of global IT solutions providers, the Company is positioned to support digital transformation and organisational management requirements.

Financial highlights

Key performance indicators FY 2022/23
Rs. Mn.
FY 2021/22
Rs. Mn.
Revenue 6,532 3,644 79
Gross profit 1,569 647 143
Earnings before interest and taxes (EBIT) 570 799 -29
Net finance cost 16,369 2,720 502
Profit before tax 16,939 3,519 381
Profit after tax 17,036 3,637 368
Total assets 6,289 6,138 2
Total equity 2,163 1,214 78
Total debt 2,984 3,547 -16
Capital employed 5,147 4,761 8
Return on equity (%) 1,008.9 1,740.2 -42
Return on capital employed (%) 13.5 30.1 -55

Sector performance

While representing a comparatively small business vertical within the Group, the investment arm was able to consolidate and produce a satisfactory performance despite market challenges and disruptions caused by the economic crisis in Sri Lanka. The Group’s investment sector posted a revenue of Rs. 6.5 Bn. during the year under review, up 79% from the previous year.

Sector strategy

Export operations through strategic partnership

Go-to-market strategy for digital solutions

Capability development

Growing global partner ecosystem

Strengthening Group IT infrastructure


Downtrend of the global economy coupled with the scale of Sri Lanka’s economic crisis presented a plethora of challenges during the year under review.


Sri Lanka’s trade deficit narrowed to its lowest point in decades on the back of stringent curbs on imports. However, Sri Lanka’s economic crisis and resultant fuel shortages, aftershocks of the drastic ban on chemical fertiliser, and escalated costs coupled with scarcity of imported raw materials have served to dull the performance of the agriculture sector.

On the back of partnership with a new strategic management partner, the Business concentrated on fewer verticals and focused on a higher-yield, less-volatile portfolio of products. These steps have stabilised operations while ensuring the Group’s trading arm is well positioned to exploit new opportunities in the export sector.

A focus on market expansion has strengthened growth in new markets beyond the Middle East, thereby creating opportunities for growth in wallet-share with key customers in the years to come.

Efforts to restructure and improve efficiencies within the trading arm, while strengthening capabilities through investment in new competencies, ensure the Business is refitted and focused on long-term growth.


The ICT industry remains a rapidly growing and evolving sector around the globe and in Sri Lanka. Sparked by pandemic-induced disruptions and changes to ways of doing business, digital transformation projects by corporations and upgrade of legacy systems creates strong prospects for growth.

Future opportunities abound in areas such as Machine Learning (ML) and Artificial Intelligence (AI), cloud and edge computing, and process automation. Industry disruptors such as decentralisation and Web3 are also seeing increased interest and more practical use-cases. Aligned with increased digitalisation and focus on competitiveness of Sri Lanka’s service industries overseas; data privacy and cybersecurity are areas in which corporations are increasingly concerned.

The Group’s IT solutions arm is focused on sustaining a formidable sales-drive to consolidate market presence in Sri Lanka in the short to medium-term, with long-term plans in place to grow internationally. New partnerships and capability development have strengthened cloud-services capability and delivery of digital transformation; with particular focus on digital workspaces and cybersecurity. Establishment of a fully-fledged data centre team with the capacity to design, implement, and manage data centres is a key step to grow the portfolio in Managed IT services. Further investments are also planned to strengthen the Company’s cybersecurity division and expand offering to a wider portfolio of clients.

Providing modern and efficient digital solutions that support Expolanka’s growth trajectory continues to be a priority in the years ahead. Plans are underway for formation of a standardised Security Operations Center (SOC) and Network Operations Centers (NOCs) that would enable better centralised management of the Group’s growing IT security and service reliability requirements.