Aug 12, 2010 (LBO) - Sri Lanka's People's Leasing Company has ordered 1,000 buses from India's Ashok Leyland as post-war growth increases demand for passenger travel, a statement said.
Ashok Leyland said in a Bombay Stock Exchange the 1,000-bus order from People’s Leasing in Sri Lanka was worth 26 million US dollars and partly funded by the Asian Development Bank.
"With the cessation of hostilities, the north and east of Sri Lanka have once again opened up for trade, commerce and people’s movement," the company said.
"These buses, which will be sold by the People’s Leasing Company to the country’s private sector, are to be used to improve connectivity to these regions."
People's Leasing Company is a unit of People's Bank, a state-owned commercial bank in Sri Lanka.
Sri Lanka's 30-year ethnic war ended in May 2009 resulting in an economic revival with growth forecast at seven percent this year.
Deliveries are to be completed before March 2011, the bus manufacturer, part of India's Hinduja Group, said.
The People’s Leasing Company order represents Ashok Leyland's largest single order for buses from the island, it said.
Delivery of the 1,000 ‘Viking’ buses, varying from 42 to 58 seaters will start immediately effect and be completed before March 2011.
Ashok Leyland said it has a big share in the Sri Lankan bus market having sold over 8,000 buses over the past 6 – 7 years.
“With Lanka Ashok Leyland, a joint venture between the Government of Sri Lanka and Ashok Leyland that was formed in 1983, we have been playing a vital role in helping develop the country’s economy not only by delivering appropriate transport solutions but also by providing employment for the local populace,” said R. Seshasayee, Managing Director, Ashok Leyland.
“This order is one more important step in that direction,” he added.
Lanka Ashok Leyland has just reported a sharp increase in profit and sales as post-war demand increases demand for passenger transport.
The company said in a stock exchange filing that June 2010 quarter net profit soared 701 percent to 157 million rupees from a year ago with earnings per share rising to 43.37 rupees from 5.41 rupees the previous year.
Total sales shot up 286 percent to 1.8 billion rupees with revenue from new vehicle sales up 296 percent to 1.7 billion rupees while vehicle repair income was stagnant at 15 million rupees.
Ashok Leyland said in a Bombay Stock Exchange the 1,000-bus order from People’s Leasing in Sri Lanka was worth 26 million US dollars and partly funded by the Asian Development Bank.
"With the cessation of hostilities, the north and east of Sri Lanka have once again opened up for trade, commerce and people’s movement," the company said.
"These buses, which will be sold by the People’s Leasing Company to the country’s private sector, are to be used to improve connectivity to these regions."
People's Leasing Company is a unit of People's Bank, a state-owned commercial bank in Sri Lanka.
Sri Lanka's 30-year ethnic war ended in May 2009 resulting in an economic revival with growth forecast at seven percent this year.
Deliveries are to be completed before March 2011, the bus manufacturer, part of India's Hinduja Group, said.
The People’s Leasing Company order represents Ashok Leyland's largest single order for buses from the island, it said.
Delivery of the 1,000 ‘Viking’ buses, varying from 42 to 58 seaters will start immediately effect and be completed before March 2011.
Ashok Leyland said it has a big share in the Sri Lankan bus market having sold over 8,000 buses over the past 6 – 7 years.
“With Lanka Ashok Leyland, a joint venture between the Government of Sri Lanka and Ashok Leyland that was formed in 1983, we have been playing a vital role in helping develop the country’s economy not only by delivering appropriate transport solutions but also by providing employment for the local populace,” said R. Seshasayee, Managing Director, Ashok Leyland.
“This order is one more important step in that direction,” he added.
Lanka Ashok Leyland has just reported a sharp increase in profit and sales as post-war demand increases demand for passenger transport.
The company said in a stock exchange filing that June 2010 quarter net profit soared 701 percent to 157 million rupees from a year ago with earnings per share rising to 43.37 rupees from 5.41 rupees the previous year.
Total sales shot up 286 percent to 1.8 billion rupees with revenue from new vehicle sales up 296 percent to 1.7 billion rupees while vehicle repair income was stagnant at 15 million rupees.
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