Listed Corporate Earnings Contract 11.4% YoY in March 2026 Quarter 📈

• Overall Performance: Aggregate earnings of 271 listed companies declined 11.4% YoY, marking the third consecutive quarter of contraction. However, when adjusted for massive one-off exceptional items, underlying core corporate profitability remained robust, growing at 30.1% YoY. • Food, Beverage and Tobacco: Earnings plunged 73.8% YoY and 55.0% QoQ, acting as the primary drag on aggregate figures. This contraction was driven by a high base effect from a Rs. 35 Bn one-off gain by Browns Investments in 2025, alongside a Rs. 24-25 Bn (~US$ 108.4 Mn) administrative fine on Carson Cumberbatch and Bukit Darah's Indonesian subsidiary. Crucially, 31 of 45 sector companies remained profitable due to volume-driven growth. • Retailing: Emerged as the strongest sector, skyrocketing 404.6% YoY and 62.5% QoQ. Growth was driven by a surge in vehicle imports during Jan-Mar 2026, propelling United Motors Lanka earnings up 750.4% YoY to Rs. 2.1 Bn. Richard Pieris and Company expanded 246.8% YoY to Rs. 2.6 Bn, while Singer Sri Lanka grew 77.5% YoY on electronic appliance demand. • Telecommunications: Delivered an outstanding quarter, with earnings rising 99.8% YoY and 26.9% QoQ. Dialog Axiata led the sector (+122.4% YoY) via subscriber growth and cost efficiencies, while Sri Lanka Telecom expanded earnings by 53.3% YoY. • Diversified Financials: Post-tax profits dipped 5.0% YoY. The decline was heavily influenced by First Capital Holdings recording a Rs. 1.2 Bn mark-to-market loss as market yields rose amid US-Iran geopolitical tensions. In contrast, larger finance firms recorded strong growth from expanded net interest income and vehicle loan books.