Luminex pivots to agriculture exports to offset telecom slump

Luminex PLC, a prominent player in Sri Lanka’s engineering and construction industry, has announced a strategic move into an export-oriented agriculture business as part of a broader diversification strategy, aimed at reducing its reliance on the telecommunications sector. 

This initiative comes as the company navigates a challenging economic landscape and seeks new avenues for sustainable growth.

The strategic shift follows a challenging financial year for the group, which recorded a total revenue of Rs.1,722 million for the 2024/25 fiscal year, a 32 percent decline from Rs.2,538 million reported in the previous year. This drop was primarily due to a sharp reduction in telecommunications-related revenues, leading to a net loss of Rs.165 million for the year. Despite these setbacks, the management has set an ambitious revenue target of Rs.2.5 billion for 2026.

The company has identified four promising projects outside its traditional business areas, with the preliminary arrangements already in place for the new agri-business venture. This move is a direct response to a significant downturn in its core telecommunications division, which has historically been the primary driver of revenue and profitability.

In addition to its agricultural ambitions, Luminex is reinforcing its international presence with its subsidiary Luminex International LLC, in Oman. Currently operating as a subcontractor in the telecom infrastructure sector, the company is optimistic about achieving a stronger revenue performance and expanding its footprint in the Middle Eastern market.

Luminex’s shareholder structure remains concentrated, with the top three shareholders controlling a significant portion of the company. As of March 31, 2025, G.R.P. Fernando held 44.57 percent of the shares, A.A.C. De Alwis held 21.29 percent and D.H.S. Ramanayaka held 20.60 percent. The public holding in the company stood at 13.49 percent, with 803 public shareholders. 

(NF)