The group reported strong earnings from its South African port management and container services operations.

Managing director Rajan Brito said in a statement the group was expanding in Sri Lanka with new resorts planned.

"During the quarter under review, the Sri Lankan leisure sector, consisting of hotels and inbound tourism, showed signs of recovery," the statement said.

"Aitken Spence Hotels, which operates the country’s largest resort portfolio showed improved earnings over the previous year.

The group's inbound tourism arm, Aitken Spence Travels, saw tourist numbers increase during the period under review, resulting in higher earnings.

"We intend to expand and strengthen our presence in Sri Lanka, especially in the hospitality sector," Brito said.

Aitken Spence is the largest international resort operator in the Maldives, with a chain of seven resorts.

"The islands are yet to fully recover from a slump in tourist arrivals due to the aftermath of the global recession."

The group's maritime business did better than last year despite a "challenging operating environment", the statement said.

"Its port management and container services operations in South Africa maintained strong earnings."

The company also stated that negotiations are continuing with the government and the Aitken Spence-China Merchant Holdings Consortium over its bid to build the first container terminal in a new port next to Colombo.

The consortium was the sole bidder for the development of the South Container Terminal of the Colombo Port expansion project.

The government is negotiating with the consortium in an effort to get higher revenue.

The Aitken Spence statement also said the easing of interest rates during the recent past has been a welcome relief to the corporate sector.

"Further reduction in interest rates is expected in the near future and would have a beneficial impact on operating margins of the company."