Rights issue and ESOP for Sinhaputhra

Sinhaputhra Finance will further strengthen its capital by a rights issue and an employee share ownership programme (ESOP) in way of preference shares in the near future, the company said. The 29-year old company’s profits surged by 35 percent for the financial year ended 31st March 2007, when it recorded a profit of Rs. 81 million despite an extremely conservative loan loss provision. The statement said that this achievement was positively impacted by a negative tax charge owing to a high deferred tax liability created as per Sri Lanka Accounting Standards. Considering a negative investment climate the results were healthy and the company strengthened its total equity base by reaching Rs. 355 million.

Meanwhile, Ravana Wijeyeratne, joint Managing Director took over the reins as Chairman and Managing Director of Sinhaputhra Finance from Kithsiri Wanigasekera who was at the helm for well over 15 years. Wanigasekera, has opted to remain as advisor and counsel to the newly appointed chairman, the company said.

Wijeyeratne, a graduate of economics and mathematics from Kenyon College, Ohio USA and Lady Margarat Hall, Oxford University, UK returned to Sri Lanka in 1995 after working for the French State Bank Credit Lyonnais in Manhattan, New York as a Financial Analyst. He held the post of Executive Director, before being appointed Joint Managing Director.