S.Lanka's Keells year net up, but war hits tourism

COLOMBO, May 30 (Reuters) - John Keells Holdings JKH.CM, Sri Lanka's biggest conglomerate by market value, increased its annual net profit by 45 percent, driven by its transport sector, but renewed civil war and high commodity prices dented growth in its leisure and consumer foods and retail businesses.

"Transportation remained the main profit earner ... contributing 53 percent of post-tax profit," Chairman Susantha Ratnayake said in a statement on Friday.

"Our ports business, as well as our bunkering operations, recorded a significant increase in volumes which, combined with cost effective and efficient management, translated into higher profits."

But the group said net profit from leisure fell 31 percent as violence deterred foreign tourists to Sri Lanka. Tourist arrivals fell 11.7 percent last year, according to official data.

Profits from food and retail fell 21 percent, hit by high commodity prices and record inflation of over 20 percent in the second half of the year.

Group revenue rose 27.2 percent to 41.8 billion rupees, while earnings per share rose 31 percent to 8.06 rupees. [ID:nCOL250633]

Shares in John Keells closed up 0.4 percent at 115 rupees ahead of the results. The stock on Wednesday dropped to 114.25 rupees, its lowest since early November 2006. (Reporting by Shihar Aneez, Editing by Ian Geoghegan)