Aitken Spence Elpitiya Plantations reports sharp profits
Helped by strong tea prices, Elpitiya Plantations Ltd. (EPL), Aitken Spence’s plantation arm, recorded its best annual performance during the financial year ended 2007/08 with post-tax profit of Rs 170.2 million against Rs 7.8 million in the previous year.

The company said turnover rose 41 percent to reach Rs 1.81 billion, adding that premium tea prices and returns from diversification into multi crops, especially palm oil contributed strongly to the bottom line.
Chairman of Aitken Spence Plantations, J M S Brito was quoted as saying that, “We have had an excellent year which had seen our strategy of diversification paying off. Tea production and bought leaf production improved over the previous year.

There was a significant improvement in palm oil production, which is now gradually increasing its productivity. Inclement weather during the year saw rubber production decline compared to the previous year.”

Boosted by a rising demand for edible oils internationally and the interest in bio fuels, Elpitiya saw most improvement in returns on palm oil. The company said it also invested heavily in energy saving devices such as hot water generators, capacior banks and energy saving withering fans, which all have contributed to controlling costs despite the wage impact during the year.

EPL is in the process of completing a small hydropower project, which will supply power to the national grid on a Letter of Intent signed with the CEB while it has also developed over 400 hectares of forestry.

Richard Peiris reports profits for 2007-08 year
The Richard Peiris Group (RPC), which sold off its loss-making media unit and says it may sell other losing ventures, on Thursday reported a profit of Rs 211 million for the year ending March 31, 2008.
RPC Chairman Dr Sena Yaddehige has said, in recent comments to the media, that the company was considering selling off loss-making ventures in the group. Recently the group sold its media company which published the Nation and Rivira weekly newspapers.

Sunshine Holdings to issue 3.3 mln shares in private placement
Sunshine Holdings said this week that it has decided to issue 3.3 million ordinary shares through a private placement at Rs 153 per share to raise equity to settle loans taken by companies in the group, and for new purchases.

The new shares will be issued to Aureos South Asia Fund LLC, a company incorporated in Mauritius.
In a communication to the Colombo Stock Exchange, the company said the proceeds from the issue will be used to settle the bridging finance loan of Rs. 75 million used to purchase 10% of the equity share capital of TATA Communications Lanka Ltd and buy another 5% of the equity share capital of TATA Communications.

It would also be used to purchase new machinery for Sunshine Packaging Limited, a subsidiary of Sunshine Holdings PLC, amounting to Rs.150 million and settle short term loans of Rs. 200 million.

Lankaputhra Development Bank marks 2nd anniversary
The state-owned Lankaputhra Development Bank, much in the news over its massive loan to debt-ridden budget airline Mihin Air, completed its second year on June 27. Low-key celebrations were held to mark the event at all branches and at head office, the bank said in a statement.

Addressing the anniversary celebrations held in Colombo, Bank Chairman, Sarath A.de Silva said that the Bank planned to embark on a number of new initiatives in the coming years. Mr Silva also said that he sought to expand the branch network in the villages; implement a number of incentive schemes to encourage the rural entrepreneurs and transform Lankaputhra Development Bank into a leading development oriented bank in Sri Lanka, with the cooperation of everybody concerned.

The 6th Branch of the Bank was opened at Wennappuwa on July 1. No details were given in the press release about the performance of the Bank in terms of profits/losses, deposit mobilization or loans provided, the statement said.