Lankan SOBs lost over Rs. 250 bln in 2012
Sri Lanka continues to maintain several inefficient state-owned businesses (SOBs) which reported a total loss of over Rs 250 billion last year, officials said.
On the positive side however there were a few SOBs that showed positive balance sheets in 2012.
While 55 SOBs were maintained at a loss of Rs. 107.1 billion in 2012, up 49 per cent increase from the 2011 loss of Rs. 72 billion, two other key institutions – which come under a different category – reported a loss of Rs 150 billion.These two – the Ceylon Petroleum Corporation (CPC) reported a Rs. 89.6 billion loss while the Ceylon Electricity Board (CEB) reported a loss of Rs. 61.1 billion.
Poor performances and deficiencies of these state owned entities relate to the general inefficiency of the boards and managements running SOBs and they all are critical to their success, the officials added.
Treasury Secretary P. B. Jayasundera at a recent top level meeting stressed the need of halting political appointments and appointing qualified persons to manage these institutions efficiently.
“These SOBs have the potential to reap good profits. We need officials who will put the interest of the country first,” a top official quoted Dr. Jayasundera as saying.
SriLankan Airlines’ loss was Rs. 25.9 billion while it was Rs. 2.8 billion at budget carrier, Mihin Lanka.
The Sri Lanka Transport Board, Agriculture and Agrarian Insurance Board and the Janatha Estates Development Board reported losses of Rs. 4.6 billion, Rs. 4.8 billion and Rs. 252 million, respectively.
However the Sri Lanka Insurance Corporation showed a profit of Rs. 2.9 billion while the Sri Lanka Ports Authority, showing a positive balance sheet, made a profit of Rs. 5.3 billion.
Airport and Aviation Services (Lanka) Ltd also showed a profit of Rs. 4.8 billion while Lanka Sathosa Ltd reported a profit of Rs. 47 million. The Development Lotteries Board recorded a profit of Rs. 2.3 billion during the same period.
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