Old loan results in over Rs.5 bln forex losses in 2012 at Colombo port
View(s):By Sunimalee Dias
Foreign exchange losses have increased at the Colombo port clearly reflecting the depreciating rupee’s impact on port activities despite recent job cuts at the state-run institution. Port officials believe this is due to the Japanese yen and dollar loans obtained in the past.
Since 2008 foreign exchange losses have accrued crossing the Rs.3 billion mark except in 2009 and last year alone there were over Rs.5 billion worth losses, financials released by the Colombo port recently stated.
Officials point out that the yen loan from the Japanese government obtained since 1984 have accrued over the years and was still being paid back for those monies received for a number of projects at the port.
It was pointed out that the yen had appreciated in the past few years considerably reflecting the Rs.5 billion loss last year and over a Rs.3 billion loss in 2011.
However, Sri Lanka Ports Authority Chairman Dr. Priyath Bandu Wickrama said at a media briefing in Colombo at the Ports and Highways Ministry that the Colombo port has recorded gains last year amounting to over Rs.4 billion after tax compared to the profits accrued in the previous year at Rs. 582 million. The operational profit was at over Rs.12 billion in 2012 compared to the previous year’s figure of Rs.5 billion.
He noted that on average the crane productivity had also improved from 18 movements per hour to 23 movements per hour, adding that they were targeting 25 movements per hour.
Speaking with the Business Times on the sidelines of briefing he said that the Hambantota port revenues were at Rs.132 million last year compared to Rs.13 million in 2011 and were targeting Rs.3500 million this year.
Dr. Wickrama noted that these additional revenues were possible from the Hambantota port since they would be seeing Renuka Sugar commence transhipments this year.
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