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Total SOE Losses in the first four months of 2022 Outweigh Annual Losses in 2021
During the first four months of 2022 the cumulative loss of State-Owned Enterprises (SOEs) amounted to LKR 860 BN. This figure outweighs the annual loss of SOEs in 2021. The top 3 contributors to the increase of the loss were (1) Ceylon Petroleum Corporation (CPC) (2) Sri Lankan Airlines and the (3) Ceylon Electricity Board. The loss was driven by the exchange rate loss due to the depreciation of the currency by 58% in the first four months of 2022. Certain SOE’s with higher level of exposure to foreign debt were more vulnerable to the depreciation of the currency. The CPC was one such SOE that was severely impacted by the exchange rate. The CPC’s losses in the first four months of 2022 amounted to LKR 628 BN which is 73% of the total SOE loss. The foreign exchange loss of the CPC amounted to 550 BN , which is 21 times higher than the same figure of LKR 26 BN reported in the in the same period in 2021. Exhibit 1 : Profit/Loss of 52 SOEs, Figures in LKR Million. Enterprise - Figures in LKR Million In the first four months of 2022 Ceylon Petroleum Corporation (628) Sri Lankan Airlines (248) Ceylon Electricity Board (47) Airport and Aviation Services (6) Sri Lanka Transport Board (1) National Water Supply and Drainage Board (0) State Engineering Corporation (0) Milco (Pvt) Ltd* (0) Sri Lanka Rupavahini Corporation (0) Lanka Sathosa Ltd* (0) Independent Television Network Ltd (0) Pradeshiya Sanwardena Bank (0) State Printing Corporation (0) Sri Lanka Broadcasting Corporation (0) Hotel Developers Lanka Ltd. (0) Sri Jayewardenepura General Hospital (0) Central Engineering Consultancy Bureau (0) Ceylon Fisheries Corporation* (0) Janatha Estates Development Board (0) Sri Lanka Handicraft Board (0) Ceylon Fishery Harbour Corporation (0) Kalubovitiyana Tea Factory Ltd 0 Sri Lanka Cashew Corporation 0 Sri Lanka State Plantations Corporation 0 Kahatagaha Graphite Lanka Ltd 0 Sri Lanka Ayurvedic Drugs Corporation 0 Ceylon Fertilizer Company Ltd* 0 State Development and Construction Corporation 0 STC General Trading Company 0 Chilaw Plantations Ltd 0 Lanka Phosphate Ltd.* 0 Sri Lanka Export Credit Insurance Corporation 0 Colombo Commercial Fertilizer Company Ltd* 0 Agriculture and Agrarian Insurance Board 0 State Timber Corporation 0 Kurunegala Plantations Ltd 0 State Pharmaceuticals Corporation 0 State Mortgage & Investment Bank 0 HDFC Bank 0 Lanka Mineral Sands Ltd 0 Lanka Sugar Company Ltd 0 National Livestock Development Board* 0 National Lotteries Board 0 State Pharmaceuticals Manufacturing Corporation 1 Development Lotteries Board 1 National Insurance Trust Fund 3 Employees’ Trust Fund Board 3 National Savings Bank 9 Sri Lanka Insurance Corporation Ltd 9 People’s Bank 10 Sri Lanka Ports Authority 14 Bank of Ceylon 20 Total SOE Profit/loss -860
Featured Insight
Total SOE Losses in the first four months of 2022 Outweigh Annual Losses in 2021
During the first four months of 2022 the cumulative loss of State-Owned Enterprises (SOEs) amounted to LKR 860 BN. This figure outweighs the annual loss of SOEs in 2021. The top 3 contributors to the increase of the loss were (1) Ceylon Petroleum Corporation (CPC) (2) Sri Lankan Airlines and the (3) Ceylon Electricity Board. The loss was driven by the exchange rate loss due to the depreciation of the currency by 58% in the first four months of 2022. Certain SOE’s with higher level of exposure to foreign debt were more vulnerable to the depreciation of the currency. The CPC was one such SOE that was severely impacted by the exchange rate. The CPC’s losses in the first four months of 2022 amounted to LKR 628 BN which is 73% of the total SOE loss. The foreign exchange loss of the CPC amounted to 550 BN , which is 21 times higher than the same figure of LKR 26 BN reported in the in the same period in 2021. Exhibit 1 : Profit/Loss of 52 SOEs, Figures in LKR Million. Enterprise - Figures in LKR Million In the first four months of 2022 Ceylon Petroleum Corporation (628) Sri Lankan Airlines (248) Ceylon Electricity Board (47) Airport and Aviation Services (6) Sri Lanka Transport Board (1) National Water Supply and Drainage Board (0) State Engineering Corporation (0) Milco (Pvt) Ltd* (0) Sri Lanka Rupavahini Corporation (0) Lanka Sathosa Ltd* (0) Independent Television Network Ltd (0) Pradeshiya Sanwardena Bank (0) State Printing Corporation (0) Sri Lanka Broadcasting Corporation (0) Hotel Developers Lanka Ltd. (0) Sri Jayewardenepura General Hospital (0) Central Engineering Consultancy Bureau (0) Ceylon Fisheries Corporation* (0) Janatha Estates Development Board (0) Sri Lanka Handicraft Board (0) Ceylon Fishery Harbour Corporation (0) Kalubovitiyana Tea Factory Ltd 0 Sri Lanka Cashew Corporation 0 Sri Lanka State Plantations Corporation 0 Kahatagaha Graphite Lanka Ltd 0 Sri Lanka Ayurvedic Drugs Corporation 0 Ceylon Fertilizer Company Ltd* 0 State Development and Construction Corporation 0 STC General Trading Company 0 Chilaw Plantations Ltd 0 Lanka Phosphate Ltd.* 0 Sri Lanka Export Credit Insurance Corporation 0 Colombo Commercial Fertilizer Company Ltd* 0 Agriculture and Agrarian Insurance Board 0 State Timber Corporation 0 Kurunegala Plantations Ltd 0 State Pharmaceuticals Corporation 0 State Mortgage & Investment Bank 0 HDFC Bank 0 Lanka Mineral Sands Ltd 0 Lanka Sugar Company Ltd 0 National Livestock Development Board* 0 National Lotteries Board 0 State Pharmaceuticals Manufacturing Corporation 1 Development Lotteries Board 1 National Insurance Trust Fund 3 Employees’ Trust Fund Board 3 National Savings Bank 9 Sri Lanka Insurance Corporation Ltd 9 People’s Bank 10 Sri Lanka Ports Authority 14 Bank of Ceylon 20 Total SOE Profit/loss -860
Featured Insight
Total SOE Losses in the first four months of 2022 Outweigh Annual Losses in 2021
During the first four months of 2022 the cumulative loss of State-Owned Enterprises (SOEs) amounted to LKR 860 BN. This figure outweighs the annual loss of SOEs in 2021. The top 3 contributors to the increase of the loss were (1) Ceylon Petroleum Corporation (CPC) (2) Sri Lankan Airlines and the (3) Ceylon Electricity Board. The loss was driven by the exchange rate loss due to the depreciation of the currency by 58% in the first four months of 2022. Certain SOE’s with higher level of exposure to foreign debt were more vulnerable to the depreciation of the currency. The CPC was one such SOE that was severely impacted by the exchange rate. The CPC’s losses in the first four months of 2022 amounted to LKR 628 BN which is 73% of the total SOE loss. The foreign exchange loss of the CPC amounted to 550 BN , which is 21 times higher than the same figure of LKR 26 BN reported in the in the same period in 2021. Exhibit 1 : Profit/Loss of 52 SOEs, Figures in LKR Million. Enterprise - Figures in LKR Million In the first four months of 2022 Ceylon Petroleum Corporation (628) Sri Lankan Airlines (248) Ceylon Electricity Board (47) Airport and Aviation Services (6) Sri Lanka Transport Board (1) National Water Supply and Drainage Board (0) State Engineering Corporation (0) Milco (Pvt) Ltd* (0) Sri Lanka Rupavahini Corporation (0) Lanka Sathosa Ltd* (0) Independent Television Network Ltd (0) Pradeshiya Sanwardena Bank (0) State Printing Corporation (0) Sri Lanka Broadcasting Corporation (0) Hotel Developers Lanka Ltd. (0) Sri Jayewardenepura General Hospital (0) Central Engineering Consultancy Bureau (0) Ceylon Fisheries Corporation* (0) Janatha Estates Development Board (0) Sri Lanka Handicraft Board (0) Ceylon Fishery Harbour Corporation (0) Kalubovitiyana Tea Factory Ltd 0 Sri Lanka Cashew Corporation 0 Sri Lanka State Plantations Corporation 0 Kahatagaha Graphite Lanka Ltd 0 Sri Lanka Ayurvedic Drugs Corporation 0 Ceylon Fertilizer Company Ltd* 0 State Development and Construction Corporation 0 STC General Trading Company 0 Chilaw Plantations Ltd 0 Lanka Phosphate Ltd.* 0 Sri Lanka Export Credit Insurance Corporation 0 Colombo Commercial Fertilizer Company Ltd* 0 Agriculture and Agrarian Insurance Board 0 State Timber Corporation 0 Kurunegala Plantations Ltd 0 State Pharmaceuticals Corporation 0 State Mortgage & Investment Bank 0 HDFC Bank 0 Lanka Mineral Sands Ltd 0 Lanka Sugar Company Ltd 0 National Livestock Development Board* 0 National Lotteries Board 0 State Pharmaceuticals Manufacturing Corporation 1 Development Lotteries Board 1 National Insurance Trust Fund 3 Employees’ Trust Fund Board 3 National Savings Bank 9 Sri Lanka Insurance Corporation Ltd 9 People’s Bank 10 Sri Lanka Ports Authority 14 Bank of Ceylon 20 Total SOE Profit/loss -860
Featured Insight
Total SOE Losses in the first four months of 2022 Outweigh Annual Losses in 2021
During the first four months of 2022 the cumulative loss of State-Owned Enterprises (SOEs) amounted to LKR 860 BN. This figure outweighs the annual loss of SOEs in 2021. The top 3 contributors to the increase of the loss were (1) Ceylon Petroleum Corporation (CPC) (2) Sri Lankan Airlines and the (3) Ceylon Electricity Board. The loss was driven by the exchange rate loss due to the depreciation of the currency by 58% in the first four months of 2022. Certain SOE’s with higher level of exposure to foreign debt were more vulnerable to the depreciation of the currency. The CPC was one such SOE that was severely impacted by the exchange rate. The CPC’s losses in the first four months of 2022 amounted to LKR 628 BN which is 73% of the total SOE loss. The foreign exchange loss of the CPC amounted to 550 BN , which is 21 times higher than the same figure of LKR 26 BN reported in the in the same period in 2021. Exhibit 1 : Profit/Loss of 52 SOEs, Figures in LKR Million. Enterprise - Figures in LKR Million In the first four months of 2022 Ceylon Petroleum Corporation (628) Sri Lankan Airlines (248) Ceylon Electricity Board (47) Airport and Aviation Services (6) Sri Lanka Transport Board (1) National Water Supply and Drainage Board (0) State Engineering Corporation (0) Milco (Pvt) Ltd* (0) Sri Lanka Rupavahini Corporation (0) Lanka Sathosa Ltd* (0) Independent Television Network Ltd (0) Pradeshiya Sanwardena Bank (0) State Printing Corporation (0) Sri Lanka Broadcasting Corporation (0) Hotel Developers Lanka Ltd. (0) Sri Jayewardenepura General Hospital (0) Central Engineering Consultancy Bureau (0) Ceylon Fisheries Corporation* (0) Janatha Estates Development Board (0) Sri Lanka Handicraft Board (0) Ceylon Fishery Harbour Corporation (0) Kalubovitiyana Tea Factory Ltd 0 Sri Lanka Cashew Corporation 0 Sri Lanka State Plantations Corporation 0 Kahatagaha Graphite Lanka Ltd 0 Sri Lanka Ayurvedic Drugs Corporation 0 Ceylon Fertilizer Company Ltd* 0 State Development and Construction Corporation 0 STC General Trading Company 0 Chilaw Plantations Ltd 0 Lanka Phosphate Ltd.* 0 Sri Lanka Export Credit Insurance Corporation 0 Colombo Commercial Fertilizer Company Ltd* 0 Agriculture and Agrarian Insurance Board 0 State Timber Corporation 0 Kurunegala Plantations Ltd 0 State Pharmaceuticals Corporation 0 State Mortgage & Investment Bank 0 HDFC Bank 0 Lanka Mineral Sands Ltd 0 Lanka Sugar Company Ltd 0 National Livestock Development Board* 0 National Lotteries Board 0 State Pharmaceuticals Manufacturing Corporation 1 Development Lotteries Board 1 National Insurance Trust Fund 3 Employees’ Trust Fund Board 3 National Savings Bank 9 Sri Lanka Insurance Corporation Ltd 9 People’s Bank 10 Sri Lanka Ports Authority 14 Bank of Ceylon 20 Total SOE Profit/loss -860
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SriLankan loses Rs. 12.9 b in Q1
SriLankan Airlines recorded a Rs. 12.9 billion net loss in Q1 FY25, driven by cash flow challenges, legacy issues, and financial costs from past debt. ...
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Barclays says it remains “overweight” on SL ISBs
Barclays maintains an "overweight" rating on Sri Lanka's bonds, recommending the purchase of those with higher past due interest claims due to favorable restructuring developments and signs of economic recovery.
2024-07-12
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ISB deal: Inclusion of governance linked bond worthwhile
The inclusion of Governance Linked Bonds in Sri Lanka's bondholder deal is essential for debt sustainability, as noted by Bloomberg. Verité Research suggested these bonds to curb corruption, strengthen banks, and...
2024-07-11
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Salary increase for striking public servants would require VAT hike: Treasury Secretary
The salary demands of striking public servants would require increasing the VAT from the current 18% to between 20%-23%, which is not viable. This highlights the significant fiscal challenge and the necessity for sustainable...
2024-07-09
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Govt. throws tax net to 14 more fields
Government has registered 14 previously overlooked fields for mandatory tax payments, which, along with stringent investigations by the Inland Revenue Department, has increased tax revenue from 8.3% to over 11% of GDP.
2024-07-09
Daily Mirror
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