Tokyo Cement Archives

December 4, 2023

Cricket in Sri Lanka is a unique phenomenon that binds our nation together in positivity and pride. The game continues to tear down barriers to bring almost every citizen to the streets, cheering, dancing and pulsating to a uniquely Sri Lankan rhythm united under one flag, one team. Right now, the entire nation yearns for that excitement of seeing our flag fly high once again. It goes without saying that in order to reclaim our victorious spot on the cricket world map, we must keep unearthing new talent and give them opportunities to sharpen their skills.

In 2014, Tokyo Cement Group and the Foundation of Goodness set off on a mission to discover young cricketing talent from across the country. Together they organize monthly Cricket Coaching Camps where youngsters are given the chance to polish up their raw talent under the guidance of the best coaches and cricket experts. The objective is to give budding school cricketers from remote backgrounds the opportunity to realize their dreams of a successful sporting career. The initiative takes place at the Foundation of Goodness’ world-class practice facilities in Seenigama and Hikkaduwa, where monthly Cricket Coaching Camps are conducted. The sessions are led by the celebrated coaching staff of renowned cricket coach Mr. Hemantha Devapriya, for schoolgirls and boys aged between 13 to 19 years. The success of the Southern cricket camps prompted Tokyo Cement to extend the program to the Northern areas in 2017, in search of future cricketing sensations. The program enrolls many young cricketers from areas such as Jaffna, Killinochchi, Oddusudan, Mankulam, Mullaitivu, Vavuniya and Mannar.

Mr. Anura De Silva, Sports Director of the Foundation of Goodness, heads the project which aims to take 50 Northern youth under its wings to train them to become sparkling cricket stars who bring glory to our motherland. Upon witnessing the richness of talent in the North, Mr. De Silva comments, “Right throughout history, Sri Lankan cricket got enriched thanks to players from different parts of the country who infused their unique styles to the game. There is tremendous talent yet to be discovered in our rural areas. Our aim is to uncover these gems that can enhance our cricket legacy in the future”. The showcase of talent in the North has so far surpassed all expectations, igniting our hopes for another Sri Lankan cricketing spring in the near future.

Tokyo Cement Group is an avid supporter of cricket on the frontline to uplift the game. The Company firmly believes in the game’s ability to build bridges across geographic and social boundaries characterizing true cricketing spirit. The coaching camps conducted by the Foundation of Goodness under the patronage of Tokyo Cement have so far trained over 1,000 girl and boy school cricketers, producing many National-level players who represent Sri Lanka in the World Cricket Arena. By providing youth from every part of the country an opportunity to unite in cricket, the company is laying the foundation of brotherhood, understanding and respect, that contributes to Nation-building which remains Tokyo Cement’s vision as the leader in the local construction industry.

November 2, 2023

Sri Lanka’s Horton Plains National Park with sweeping grasslands and montane evergreen cloud forests is an outstanding natural wonder. The remarkable biodiversity of this UNESCO World Heritage Site is reaffirmed by the astounding number of flora and fauna there that are not seen anywhere else on the planet.

Mr. S. R. Gnanam, Managing Director of the Tokyo Cement Group, whilst bestowing a new Ranger Office at the Dayagama Walking Trail of the HPNP to the Department of Wildlife Conservation (DWC) commented, “This marks the beginning of a ‘Culture of Forest Bathing’ in our country, made famous by the Japanese who revive their lives bathing in the healing tranquility among trees and nature. I have personally experienced this walking trail to be the most picturesque route to the Horton Plains, providing an incomparable forest-bathing experience as you walk through the dense tropical montane forest.” Whilst thanking the DWC for assuring exclusivity of the trail for trekkers and cyclists, he added that Tokyo Cement Group partnered this initiative because the Group understood the importance of scientific conservation of unique nature reserves such as The Horton Plains National Park (HPNP). It is the only nature reserve where visitors are allowed on foot, across the rolling plains and tropical hills. Whilst many visitors take the motorable routes from Pattipola or Ohiya, the 5 km long Dayagama East Walking Trail is taken essentially by discerning nature lovers. This trekking path, a section of the world-famous Pekoe Trail, is an undisputed favourite among ardent birding enthusiasts, guaranteeing encounters with an array of migratory and resident bird species, many of them endemic to Horton Plains.

Being less popular the Dayagama East entrance was largely unmonitored, thus making it a vulnerable entry and exit route. The DWC sought ways to streamline visitor activity on this route, whilst contending with limited resources for many years. The DWC invited Tokyo Cement Group, known for its extensive environmental conservation initiatives and a deep attachment with the Horton Plains, to establish a DWC Ranger Office at the entrance of the Dayagama East Walking Trail.

Chairman of the Tokyo Cement Group Dr. Harsha Cabral PC and Managing Director, Mr. S. R. Gnanam handed over the newly built office complex to the Minister of Wildlife and Forest Resources Conservation, Hon. (Mrs.) Pavithra Wanniarachchi and the Director General of DWC, Mr. Chandana Sooriyabandara.

Dr. Harsha Cabral PC, Chairman of the Tokyo Cement Group, commending the efforts of Hon. Minister Wanniarachchi said, “This Dayagama visitor entrance, dedicated to those who come here purely to enjoy the scenic peak wilderness, extends Tokyo Cement Group’s commitment to environmental sustainability. Prohibiting the entry of all forms of motor vehicles and unauthorized trespassers will ensure the protection of this unique flora and fauna not just today, but for our future generations.”

In addition to the new DWC office, Tokyo Cement Group established educational signage boards at key points of the walking trail and main road, revealing the unique flora and fauna spotted at the HPNP. These informative boards designed by the Parrotfish Collective, create awareness on the park’s rich biodiversity and educate visitors about the importance of its conservation. Tokyo Cement Group intends this far-reaching nature conservation project will enrich the immersive experience of visitors to the Horton Plains National Park. –

August 10, 2023

Tokyo Cement Group won two prestigious awards that reinstate its industry leadership position at the Annual Green Awards 2023 event, organized by the Ceylon Institute of Builders (CIOB). Tokyo Cement Group won the apex Platinum Award for Sustainable Leadership in the Construction Industry in recognition of its Renewable Energy Generation Programme which makes its entire local cement manufacturing process 100% energy independent. The Gold Award in the category was won by Tokyo Supermix (Pvt) Limited; Tokyo Cement Group’s Ready-Mix Concrete (RMC) business unit, in recognition of the comprehensive Wastewater Recycling System implemented across its island-wide RMC plants network. These two awards are the most recent seals of approval received by the Tokyo Cement Group honouring its industry-defining and commendable commitment to sustainability.

Hon. Dinesh Gunawardena, Prime Minister of Sri Lanka was the Chief Guest at the event which culminated during the World Construction Symposium, and was also graced by Hon. Susil Premajayantha, Minister of Education, and Hon. Suren Raghawan, State Minister for Higher Education as Guests of Honor. The distinguished guests at the event were lead by Dr. Rohan Karunaratne – President, and Eng. Saliya Kaluarachchi – Hon. Secretary of the Ceylon Institute of Builders among other prominent industry stalwarts. The CIOB, the premier professional organization of building and construction professionals in Sri Lanka together with University of Moratuwa (UOM) organized this year’s flagship awards ceremony for the 11^th consecutive year.

The Annual Green Awards is a platform to encourage environmentally conscious business practices by evaluating remarkable sustainability efforts in the Sri Lankan construction industry. This year, the eminent panel of judges were headed by Prof. A.K.W. Jayawardane as the Chairman and comprised of Prof. Chitra Weddikkara, Dr. Tissa Meepe, Dr. Ashan Asmone and Eng. Saliya Kaluarachchi as committee members.

Tokyo Cement Group, as Sri Lanka’s largest manufacturer of cement, concrete, and cement-based innovative products, has won multiple accolades in recognition of its standard-setting sustainability practices. Adding to the many awards received over its forty-year history, earlier this year Tokyo Cement also won the Gold Medal in the Chemical Industries Category at the Presidential Environmental Awards 2021-22 organized by the Central Environmental Authority (CEA). This stands proof of Tokyo Cement’s unwavering commitment to enrich and conserve the environment by making Sustainability a key business priority.

Tokyo Cement Group, as the industry leader, has made several strategic investments to minimize its environmental footprint. First among them is its highly admired renewable biomass energy programme. The Group pioneered biomass energy generation in Sri Lanka to promote greater national energy security with a total installed capacity of 24MW. The Group also exports up to 8MW of biomass and Dendro power and 600kW of solar power to the grid, thereby increasing the national renewable energy contribution. This green energy programme engages nearly 2,500 farming families, via direct and indirect employment, who have so far planted more than 7.5 million Gliricidia trees contributing to the Group’s collective sustainability efforts. By operating a community trade supply chain with the local farmers to source biomass fuel, the Group retains a major portion of the energy bill within the country instead of spending it on imported fossil fuels, whilst enabling critical cashflow to the rural economy.

The contributing reduction of carbon impact by Tokyo Cement is further attested through the Company’s distinguished product brand TOKYO SUPER Cement, which has won both the Green Mark^® (Singapore) Certification from the CIOB, and the GREENSL^® Labelling System Certification from the Green Building Council of Sri Lanka (GBCSL), making it the Greenest Cement in the market.

Tokyo Supermix received the Gold Award at the CIOB Green Awards 2023 for its comprehensive wastewater recycling system which allows to reuse 90% of the water used daily for aggregate wetting, concrete mixing, and to wash inbuilt tanks after unloading mixer trucks at all RMC plants across the island. Out of the large volume of water recycled through the system annually, approximately 12 million liters is reused in concrete mixing while the remainder is used in the washing process in a close-looped cycle, significantly reducing its environmental footprint. The entire waste management programme deployed by Tokyo Supermix also takes care of waste concrete and cement sludge, and the concrete samples used for quality testing are recycled to produce Reef Balls that are used in Tokyo Cement’s Coral Reef Restoration programme.

Furthermore, Tokyo Cement Group leads several highly impactful, science-based conservation efforts that include Mangrove Reforestation, Coral Reef Restoration, and a Native Forest Tree Propagation programme among others as part of its sustainability drive. Whilst the Group’s promise on sustainability comes to life through these far-reaching initiatives, Tokyo Cement has earned the reputation as the most trusted supplier of high-quality cement, concrete and cement-based innovative products in Sri Lanka. By successfully integrating social welfare and environmental conservation into its mission to enrich the country, its people and the environment, Tokyo Cement Group has reaffirmed its position as the leading partner in Nation-building.

June 13, 2023

Tokyo Cement Group reinforced the long-standing partnership with the Society of Structural Engineers Sri Lanka (SSESL) for 2023, with the Sole Sponsorship of the Question Time Programme for the month of May. At the forum, Eng. Prof. Kushan Wijesundara from the Department of Civil Engineering, University of Peradeniya delivered a lecture on ‘Response of Shear Critical Reinforced Concrete Elements’. Over sixty participants representing engineering undergraduates, practicing structural engineers, and construction sector professionals were present at this event, held at the Wimalasurendra Auditorium of the Institute of Engineers Sri Lanka (IESL).

President, Eng. (Mrs.) Tharangika Jayasundara, Vice President, Eng. Ananda Senarath, Immediate Past President, Eng. Nandana Abeysuriya, Past President, Eng. Srilal Sahabandu Secretary, Eng. D.T. Rajasekaran, Treasurer, Eng. L. Gunawickrama and Committee Member, Eng. Dr. Nihal Somaratna, of SSESL were among the prominent industry experts and eminent academics present at the event. Eng. Prof. Kushan Wijesundara in his presentation discussed the importance and methodologies of predicting the behaviour of reinforced concrete structural elements by analyzing the Axial–Flexure–Shear (N-M-V) interaction. He illustrated several approaches using Eurocode 2, numerical tools, and analytical models on how to ascertain the phenomenon, citing real-world case studies, garnering much enthusiasm from the participants.

The Question Time is a monthly knowledge-sharing session organized by the SSESL, a professional body representing practicing engineers and academics in the field of structural engineering in Sri Lanka. It is a forum not only for professional and student members but also for the general public to discuss new technological trends and developments in structural engineering, sharing knowledge among like-minded industry experts. Distinguished engineering doyens in the field and renowned academics from leading university engineering faculties share their experiences and knowledge at each session, where the latest scientific findings and case study experience in modern engineering solutions are presented. These Question Time programmes are one of the Continuous Professional Development programmes conducted by SSESL on the last Tuesday of every month for the last three decades, to encourage and add value to its membership engagement. It is an opportunity for corporate industry partners to permeate new ideas that are trending in structural engineering with the professional fraternity.

Tokyo Cement Group, being a long-standing corporate partner for the SSESL for over a decade, renewed the affiliation for 2023 by undertaking to be the sole sponsor of four Question Time Programmes and the Annual Sessions in the Society’s annual event calendar. As part of this far-reaching professional partnership, Tokyo Cement aims to create fresh dialogue on the latest developments in the construction industry by bringing in field experts to discuss a range of timely topics. As Sri Lanka’s largest manufacturer of cement, concrete, and cement-based innovative products, Tokyo Cement Group is delighted to deepen the partnership with the SSESL. By becoming a prime sponsor of the pre-eminent professional body, the Company aims to facilitate world-class knowledge sharing to inspire our professionals who play a vital role in uplifting the local construction industry

May 22, 2023

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Tokyo Cement Group won the Gold Medal for exceptional environmental conscious business practices in the Chemical Industries Category, at the Presidential Environmental Awards 2021-22 organized by the Central Environmental Authority (CEA). The prestigious Gold Award was presented by His Excellency the President Hon. Ranil Wickramasinghe to Mr. Christopher Fernando, Consultant Director of Tokyo Cement Group at the awards ceremony held at the BMICH on the 28^th of April 2023.

Hon. Minister of Environment Eng. Naseer Ahamed, Dr. Anil Jasinghe – Secretary to the Ministry of Environment, Mr. Supun S. Pathirage – Chairman and Mr. Hemantha Jayasinghe – Director General of the CEA, and prominent members representing both state and corporate sectors were among the distinguished guests at the event.

Under the guidance of the Ministry of Environment, the annual Presidential Environmental Awards is organized by the CEA to recognize and reward public and private sector organizations, industries, and individuals, who makes significant contributions towards environmental conservation. Key objectives of the awards program include acknowledging the efforts of those who have consciously deployed environmental conscious operations, and inspiring others to become active participants of conservation to achieve sustainable development.

This honor is the latest nod of approval received by the Cement Giant for the company’s unwavering commitment to enrich and conserve the environment. The award recognizes the multiple sustainable industry practices adopted by Tokyo Cement Group, as Sri Lanka’s largest manufacturer of cement, concrete and cement-based innovative products.

This accolade is among the many testaments received by Tokyo Cement for their steadfast efforts to make environmental sustainability a key business priority. The strategic investments made by Tokyo Cement Group include exemplary business practices that focus on minimizing the company’s environmental footprint. First and foremost, Tokyo Cement Groups’ end-to-end local manufacturing process is 100% energy independent and is operated using carbon-neutral, renewable biomass energy. Pioneering the renewable energy movement in the country’s manufacturing sector, Tokyo Cement Group has set the example for other corporate entities.

Standing further proof of this commitment is the Company’s distinguished product brand, TOKYO SUPER Cement, the Greenest Cement in the market which holds both Green Mark^® (Singapore) Certification from the Ceylon Institute of Builders, and the GREENSL^® Labelling System Certification from the Green Building Council of Sri Lanka (GBCSL).

Further, Tokyo Cement’s Center for Technical Excellence, the company’s operational hub in Trincomalee, has also been certified with the GREEN^SL® Building Platinum Status by the GBCSL, placing yet another stamp of approval on its environmental conscious business ethos. The modern technical hub received this noteworthy recognition owing to the multiple green features incorporated into the facility, to promote a sustainable and minimal resource footprint.

In addition, as one of the country’s most prominent blue-chip organizations, Tokyo Cement Group leads several highly successful, scientific data-driven conservation efforts as part of its sustainability drive. Among the most impactful conservation programs spearheaded by the Company, the Mangrove Reforestation, Coral Reef Conservation, and a Native Forest Tree Propagation program take centerstage.

Whilst the Company’s promise on sustainability breathes life through these far-reaching initiatives, Tokyo Cement Group has earned the reputation as the most trusted supplier of high-quality cement, concrete and cement-based innovative products in Sri Lanka. By successfully integrating social welfare and environmental conservation into its mission to enrich the country, its people and the environment, Tokyo Cement Group has reaffirmed its position as the leading partner in Nation-building.

May 2, 2023

Tokyo Cement Group rewarded their top performing dealers at the 2023 Annual Dealer Convention inclusive of a unique excursion experience and a gala award ceremony, organized in two segments at the Cinnamon Grand and the Kingsbury Hotel. At this year’s event, the Company took their top dealers sailing along the Port City Marina aboard a catamaran, giving them a view of the picturesque Colombo city skyline during sunset. The awards night was complete with a star-studded entertainment line-up befitting the outstanding performance of the dealer partners.

City Hardware & Stores – Jaffna, Ancheneyer Cement & Hardware Dealer – Batticaloa, National Trading Stores – Kurunegala, Shanmugam Stores – Kilinochchi, and Emerald Hardware – Uduppiddy were crowned Top Performers, amongst a total of 162 winners from ten categories at the Tokyo Cement Group 2023 Dealer Convention. Held under the auspices of the executive management of Tokyo Cement Company (Lanka) PLC, including the Managing Director – Mr. S.R. Gnanam, Group COO – Mr. M. Thayananthan, Consultant Director – Mr. Christopher Fernando, General Manager Group Marketing – Mr. Dashantha Udawatta, and Marketing Director – Mr. Billy Walpola, the event brought together Tokyo Cement dealers and distributors from across the island to recognize their outstanding accomplishments during the previous year.

The event highlighted the support extended by the Dealers of Tokyo Cement to maintain business momentum amidst turbulent market conditions in 2022. The Managing Director, Mr. S.R. Gnanam offered his felicitations to the sales network for their unwavering confidence that enabled Tokyo Cement to maintain its industry leadership as the country’s No.1 cement manufacturer despite the unprecedented business disruptions faced during the period. Speaking of the tough economic conditions the country is experiencing, Mr. Gnanam reiterated Tokyo Cement’s commitment to support its sales network to weather the situation with greater resilience.

The Annual Dealer Convention is the primary event organised by the Tokyo Cement Group to recognise its trade channel. The event is a celebration of the longstanding partnership between the company and its vast sales and distribution network that has grown from strength to strength over the last four decades. As a truly homegrown company that is intrinsic to Sri Lanka’s progress, Tokyo Cement Group has pledged to enrich our national economy through local value creation, in which the Company’s dealer network plays a crucial role. Together with the sales network, Tokyo Cement Group has established its prestigious set of brand names that include; NIPPON CEMENT, TOKYO SUPER, NIPPON CEMENT PRO and ATLAS CEMENT, and TOKYO SUPERMIX Ready Mixed Concrete, and the innovative range of products starting with TOKYO SUPERBOND, TOKYO SUPERSEAL and TOKYO SEUPERCAST among others, as reliable household names that have transformed the local construction industry.

Having earned its reputation as the most trusted supplier of high-quality cement, concrete and cement-based innovative products, Tokyo Cement Group has reaffirmed its position as the leading partner in Nation-building.

March 28, 2023

Tokyo Cement Group extended the partnership with the Foundation of Goodness for 2023 towards the continuation of the Cricket Coaching Camps. This is the ninth year of this far-reaching partnership that provides aspiring young cricketers from rural parts of the country who otherwise have limited access to quality training facilities, a chance to improve their cricketing talents.

The sponsorship facilitates free training by renowned coaches for school cricketers from regional schools in both North and South of Sri Lanka. Star performers are enrolled into an elite player’s pool where they get specialized training. The Tokyo Cement-Foundation of Goodness Cricket Coaching Academy has so far produced hundreds of promising schoolgirl and schoolboy cricketers who now play at Divisional and National level.

Mr. Anura De Silva, Director Sports of the Foundation of Goodness heads the Cricket Academy where former head coach of the National Women’s Cricket Team Hemantha Devapriya and a pool of qualified coaches conduct the sessions. Southern Coaching Camps are held at Hikkaduwa Sri Sumangala MCC Lords and Seenigama Sri Wimalabuddhi Surrey Oval, two grounds fully equipped with indoor and outdoor nets for cricket practices, under the patronage of Tokyo Cement Group.

The shared objective of the two organizations is to provide solid foundations for future leaders who will make the Sri Lankan flag fly high at the International Cricketing Arena.

February 27, 2023

Tree planting events held in Ududumbara and Minipe Mahaweli catchment areas

The Tokyo Cement Group recently joined forces with the Sri Lanka Police Department to host two successful tree-planting events in Handaganawa in Minipe and Meedumgama in Ududumbara. Over 600 participants, including state and local government employees, farming communities and school children, came together to plant 7,000 saplings of diverse local plant species such as Kumbuk, Jackfruit, Damba, Ingini, Laolu (Egg Fruit), Mango, Tamarind, Mee, and Bulu (Bedda Nut), in the Mahaweli catchment areas.

The events were sponsored by Tokyo Cement Group with the objective of restoring the region’s natural ecosystem, whilst fostering environmental stewardship among local communities. The Company envisions creating a forest belt comprising of native flower and fruit-bearing trees that benefit local farming culture and boost natural biodiversity, whilst preventing soil erosion in the riverbanks. Through this long-term engagement Tokyo Cement anticipates the participating community groups and school children to become patrons of the trees, until such time they become an intrinsic part of the Mahaweli catchment areas.

Officers and staff of the Sri Lanka Police Department attached to the Hasalaka and Ududumbara Police Divisions, under the aegis of the Central Province DIG Office were instrumental in organizing these tree planting programs, ensuring the participation of all state institutions and schools in each area. This collaboration between the Sri Lanka Police Department and Tokyo Cement Group strengthens the collective efforts to create a greener, healthier environment for our future generations.

The first of the two collaborative tree-planting events was held in the Hadaganawa region of the Mahaweli catchment area and was organized by the Hasalaka Police Division. 6,100 native tree saplings were planted along the river reserve with the participation of over 100 police officers and representatives from the Department of Forest Conservation, Department of Wildlife Conservation, Department of Irrigation, Minipe Divisional Secretariat, Minipe Pradeshiya Sabha, and over 200 students from Hadaganawa Maha Vidyalaya and Morayaya Maha Vidyalaya.

The second event was held in Meedumgama, in the Ududumbara region of the Mahaweli river catchment area and was organized in association with the Ududumbara Police Division. The event brought together over 200 participants, including officers from the Hunnasgiriya Range Office of the Department of Forest Conservation, Department of Wildlife Conservation, Ududumbara Divisional Secretariat, and Ududumbara Pradesiya Sabha. Additionally, over a hundred students from the Ududumbara National School also participated in the tree planting program helping to enhance its impact.

The Tokyo Cement Company launched this keystone sustainability initiative to replenish Sri Lanka’s declining forest cover in 2017, by establishing two native forest tree nurseries: one at the Trincomalee Factory and the other at the Mahiyangana Power Plant premises. Each nursery has the capacity to produce 10,000 native forest tree seedlings annually, that gets distributed for island-wide reforestation campaigns carried out by various state and independent conservationist groups.

In addition to forest tree propagation, Tokyo Cement Group leads several scientific knowledge-based conservation efforts as part of its sustainability drive. Among the most impactful conservation programs spearheaded by The Company, Mangrove and Coral Reef Conservation take center stage. Tokyo Cement Group started its Mangrove Conservation Project in 2012 by setting up a mangrove nursery that can nurture 10,000 seedlings within its factory premises. The initiative has so far planted more than 77,000 mangrove saplings belonging to 7 native species along Trincomalee, Jaffna and Mannar coastal belts in collaboration with the Sri Lanka Navy, supported by local fishing communities and likeminded conservation groups. Next, Tokyo Cement Group is deeply involved in Coral Reef Conservation for over a decade, leading a consortium of partners comprised of renowned marine biologists and conservation experts, actively involved in restoring the severely threatened reef barrier around Sri Lanka.

The company’s promise on sustainability breathes life through these far-reaching initiatives that successfully integrate social welfare and environmental conservation within its corporate mission that aims to enrich our country, its people, and the environment.

December 19, 2022

Tokyo Cement Group recently extended its “Nourishing the Future” school nutrition program by adding 179 students from four schools in Siyambalanduwa in the Monaragala District. The initiative includes primary grade students of Wattegama Sirimal Kanista Vidyalaya in Kotiyagala, Bambaragasroda Kanista Vidyalaya in Siyambalanduwa, and Barawaya Primary School and Danakiriya Kanista Vidyalaya in Kandaudapanguwa, who now receive a balanced mid-day meal on all five days of the week through this scheme.

Tokyo Cement was silently operating this benevolent social upliftment program for several years in the past, where they provided mid-day meals to over 300 students of Thiriyaya Maha Vidyalaya in Trincomalee. With the addition of Monaragala schools, Tokyo Cement Group’s “Nourishing the Future” mid-day meal program now touches the lives of over 475 schoolchildren hailing from backgrounds of reduced circumstances.

Mr. Praveen Gnanam, Director Innovations, Tokyo Cement Group, commenting on the expansion of this far-reaching initiative said, “The purpose of this program is to address the childhood malnutrition epidemic that has grown exponentially over the course of this year. Left unchecked, malnutrition has the potential to cause both mental and physiological developmental diseases for future generations. Furthermore, parents are more likely to send their children to school if they are fed, thereby increasing access to education for those most impacted by the economic crisis.”

The daily meal plans follow the guidelines issued by the Ministry of Education, to ensure all main food groups consisting of greens, pulses, a fresh dairy product and a locally sourced fruit is included therein, to supplement their diet and fulfil the children’s nutritional growth needs. To ensure the students receive a wholesome lunch on a consistent basis and the children’s growth milestones are achieved progressively, Tokyo Cement has implemented a comprehensive monitoring process with help from each schools’ administration, parent groups, Zonal Director of the Ministry of Education and local health officers attached to the Ministry of Health.

The Zonal Educational Director played a key role in coordinating the program between the schools’ authorities and Tokyo Cement. On ground, the program is executed under the supervision of the principal and teachers in each school, whilst voluntary teams of parents help prepare the meals. Tokyo Cement has also stepped up the program by supplying the basic utensils and amenities required, to standardize each school kitchen to operate under optimal hygienic conditions during food preparation. The local Public Health Inspectors supervise the program by visiting the schools on a regular basis to ensure the meals are prepared adhering to strict health guidelines.

This compassionate endeavour was started by Tokyo Cement Group’s Founder Chairman, Deshamanya A.Y.S. Gnanam, who during his time saw the importance of providing a healthy meal to schoolchildren from low-income families to encourage school attendance as a much-needed boost to complete their primary education. Tokyo Cement Group’s decision to expand the program comes at a time when several international agencies such as UNICEF and the WB have flagged the rising rates of malnutrition and growth deficiencies among children in all parts of Sri Lanka, especially in low-income segments, due to the rapid rise of food inflation. The Nourishing the Future school nutrition program addresses this issue with a tangible solution that lifts a huge burden off the parents, who are on a daily struggle to provide a square meal for their children amidst dire economic conditions.

The program is among the many social empowerment projects deployed by the Company with a profound impact on the lives of the people of our country. Tokyo Cement Group’s commitment to social responsibility breathes life through initiatives such as this, by which they have successfully integrated social welfare and environmental conservation into its corporate DNA, as part of the vision to become the leading partner in Nation-building.

June 2, 2022

Quarterly Financial Review

Tokyo Cement Group (Tokyo Cement) reported its financial performance for the fourth quarter ending 31st March 2022, with a turnover of Rs. 16,158 million reflecting a year-on-year growth of 31%, compared to Rs. 12,373 million during the same period last year. Despite turnover growth, Tokyo Cement’s sales volumes reduced by 11% compared to the fourth quarter last year, due to a plant breakdown at one of the grinding mills and unavailability of raw materials. The Group recorded a Rs. 2,531 million loss for the fourth quarter, of which the largest contribution came from exchange losses that amounted to Rs. 4,822 million.

Year in Review

The Group’s year-on-year performance comparison against the previous financial year reflects the impact of significant increases in cost of goods and shortages of raw materials due to USD illiquidity in the market. Sales volume of Tokyo Cement showed a marginal increase of 1% for the financial year, whilst turnover saw a year-on-year growth of 22%, from Rs. 42,962 million to Rs. 52,477 million. The Group recorded a loss of Rs. 453 million for the FY 2021/22, with the exchange loss standing at Rs. 5,050 million for the year.

Forex, Cost Increases and MRP Impact

During the quarter prices of all construction material spiked sharply, reflecting the highly volatile macroeconomic environment. Raw material costs increased in line with global price surges, compounded upon by increasing freight rates due to rising oil prices, and interest for longer credit periods of 180 days. In addition, constraints in establishing Letters of Credit (LCs) gave rise to material shortages. The price of 50kg bag of cement was adjusted to reflect these cost increases accordingly,

January 1^st – Cement prices increased from Rs. 1,275/- to Rs. 1,375/-, due to the increase in raw material costs and freight charges.
March 8^th – The Central Bank of Sri Lanka (CBSL) floated the currency (previously pegged to Rs. 203/- to the USD) causing the Rupee to depreciate to Rs. 230/- to the USD, the same day.
March 12^th – Official exchange rate depreciated to Rs. 260/- to the USD and the cement industry increased prices of a 50kg bag of cement to Rs. 1,850/-.
April 1^st – Official exchange rate rose to Rs. 299/- to the USD, resulting in the increase of a 50kg bag of cement to Rs. 2,350/-.
As of this article the cement price stands at Rs. 2,850/- in accordance with the average exchange rate of Rs. 350/- to the USD.

An important factor to note is that the cement industry imports its raw materials on 180-day Letters of Credit (LC) as per CBSL requirement. Therefore, the material that was received in October 2021, manufactured, and sold at an exchange rate of Rs. 203/- incurs a significant exchange loss when settled in April 2022 at the current rate of Rs. 365/- to the USD.

This took place in the backdrop of greater percentage increase in prices across all other construction material, including but not limited to steel, electrical cables, and even locally sourced sand that has no direct forex impact.

Item	January 2022 (Price in LKR)	April 2022 (Price in LKR)	% Increase
Steel (MT)	239,000/-	589,000/-	146%
Electric wires (1.044”/100m)	2,520/-	7,390/-	193%
Sand (cube)	13,500/-	23,500/-	74%

The Macroeconomic Environment

During this period the country started to feel the impact of diminishing forex reserves and the inability of importers to establish LCs in the preceding months, with shortages occurring in all sectors. Due to continuous cost increases and currency depreciation, many manufacturers and traders increased the price of goods in frequent intervals throughout the quarter. Consequently, price increases across all building materials slowed ongoing construction projects and effectively postponed commencement of new projects until price stability is established in the market. The construction industry faced downsizing challenges due to material shortages, payment delays to government contractors, and poor labour turnouts owing to the nationwide breakdown of transportation infrastructure.

Cement importers were unable to run operations in the highly unstable fiscal environment, leading to market shortages and increased demand for cement. In this backdrop, the burden to ensure market stability fell on local manufacturers who were also experiencing similar challenges, in addition to the greater obligation of sustaining an extensive value chain comprising of thousands of stakeholders, many of whom solely depended on the industry. However, the raw material shortages caused by the forex crunch exerted continuous pressure on the production process, leading to insufficient supply to meet market demand.

Outlook

The IMF staff level technical agreement, to be finalized in the coming months, is expected to alleviate some of the pressures on the economy and open channels for bilateral loans and grants. However, until such time CBSL envisages further austerity measures to help curb rapid economic downturn. This includes but is not limited to, increased interest rates, restriction of imports, continued shortages of essential and consumer goods, potential for increased direct and indirect taxes, and further measures to shore up reserves to tackle the fiscal deficit. These policies will of course create detrimental impacts on many industries in the short to medium term, which would result in reduced economic activity and contraction in all forms of consumption, from which the construction industry is not exempt.

However, Tokyo Cement has taken many proactive measures to minimise the impact of possible contractions to the economy on the Group’s performance. Anticipating a challenging environment, the Group has reforecast demand, rescheduled sourcing and production plans, and adjusted cashflows accordingly. The Group has deployed drastic cost saving measures, streamlined operations, and postponed capital expenditure. While the short to medium term economic landscape remains uncertain, Tokyo Cement has a proven track record of resilience and resurgence, and is committed to rebuilding the nation, stronger than ever before.

Older Posts

Empowering Northern Cricket through Specialized Coaching

Tokyo Cement Encourages Forest-Bathing in The Horton Plains

Tokyo Cement Group Scores Platinum and Gold Awards at Prestigious CIOB Green Awards 2023

Tokyo Cement Strengthens Partnership with Society of Structural Engineers, Sri Lanka

Tokyo Cement Group wins Gold at Presidential Environmental Awards 2022

Tokyo Cement Group celebrates its partners at the 2023 Dealer Convention

Tokyo Cement and Foundation of Goodness’ Extend Partnership to Aspire Young Cricketers

Tokyo Cement Group and the Police Department Join Forces for a Greener Future

Tokyo Cement Group expands “Nourishing the Future” School Nutrition Program

Tokyo Cement Group FY22 Q4 Results

Quarterly Financial Review

The Macroeconomic Environment

Outlook