Lanka Salt shows best ever profit in 2006

The best ever profit in Lanka Salt Ltd's history came in the 2006 financial year. The company recorded revenue of Rs.468.147 million compared to the previous year’s turnover of Rs.415.098 million, resulting in a Rs.53.04 million increase over calendar 2005 performance.

The profit after taxation was Rs.15,617,440. It was also noted in the 2006 Annual Report that in keeping with the current productivity, performance and favourable cash flow position and at the encouragement of the main shareholder, a dividend of 20% was appropriate. It was a strong performance despite the unusual changes in weather which brought in heavy rains and floods during the latter part of 2006, causing major disruptions in production, according to the report.

Lanka Salt has salterns in Mahalewaya, Bundala and Paltupana, the traditional pans from ancient times that produced salt for the country. In the 2006 Annual Report, the Chairman Mahinda Gunawardena said that while the world acknowledges salt as a universal commodity, it plays a more important role today in human survival and well being. Today, medical science utilizes salt as the universal carrier for iodine in the eradication of preventable brain damage and iodine deficiency disorders.

Gunawardena said a comprehensive 3 Year Development Programme was launched, displaying both vision and dynamism to sustain the industry in a highly competitive global environment, catering to the needs of the era and beyond. The inception of the Development Programme in 2006 is development oriented while being eco friendly. In addition to production methods and distribution and marketing, the company also focused on human resource development and employee welfare, civil infrastructure development, advocacy and public awareness and corporate social responsibility.

Gunawardena said the company was fortunate to receive a donor grant from Micronutrient Initiative (MI) Canada for the construction of a modern factory for the iodization of the entirety of sale produced by Lanka Salt Ltd to the highest health standards at a capacity of no less than 15 tons per hour. Production commenced in April 2007 after the factory was declared open by Prime Minister Ratnasiri Wickramanayake.

The company has recognized that Sri Lankan consumers prefer sophistication when it comes to meeting their changing lifestyles and therefore, the company is developing free flowing slat and canister packs to be made available for A Grade outlets. The success of Lanka Salt in entering the iodine fortification sector has also benefited the company in being selected in producing salt that has both iodine and iron by the implementer of Sri Lanka's first Double Fortified Salt Project.

The company has identified a strong need for advocacy and awareness of salt and has made plans to construct a public viewing gallery with a museum as part of their 3 year development scheme. "The completion of this multifaceted Development Programme will ensure not only Lanka Salt Limited's capability to meet the future challenges but also transform itself into a self sustaining, socio economically and eco friendly salt city in the Mahalewaya," the report said.NG)