Sri Lanka, June 24 -- Listed companies reported a third consecutive quarter of declining earnings in the three months ended March, as losses in the food, beverage and tobacco sector dragged down overall profitability despite signs of strengthening activity across large parts of the economy.

Aggregate earnings of 271 listed companies fell 11.4 percent year-on-year to Rs. 186.3 billion in the March 2026 quarter, improving from contractions of 20.5 percent and 21.2 percent recorded in the preceding two quarters, according to a review by First Capital Research.

A sharp 73.8 percent drop in earnings from the food, beverage and tobacco sector accounted for much of the decline. The sector was hit by the absence of a Rs. 35 billion one-off gai...