Mahinda’s miracle: State institutions’ losses amount to Rs. 200 billion
Wednesday, 12 June 2013
The Mahinda Rajapaksa government in its endeavor to create the Miracle of Asia has managed to push the country into an economic abyss with state institutions that recorded profits in 2005 being converted into massive loss making enterprises by 2012.
It indeed is a miracle to be able to convert profit making institutions into loss making ones in seven years.
The Finance Ministry has stated that the losses of 55 state institution amount to Rs. 200 billion last year.
It was last week reported that from contributing Rs. 32 billion in profits eight years ago, state enterprises now burden economy with Rs. 107 billion in losses.
The Treasury had reported that the Ceylon Petroleum Corporation (CPC), which reported a Rs. 9.8 billion profit in 2005, sustained a Rs. 89.6 billion loss in 2012. The Ceylon Electrcity Board (CEB), reported a loss of Rs. 6.8 billion in 2005 which grew to Rs. 61.1 billion in 2012.
SriLankan Airlines, which made a Rs. 834 million profit in 2005, incurred a Rs. 25.9 billion loss in 2012. The budget carrier, Mihin Lanka which did not exist in 2005, saw losses increase from Rs. 1.9 billion in 2011 to Rs. 2.8 billion in 2012.
The Sri Lanka Transport Board, which reported a Rs. 1.1 billion loss in 2005, saw losses increase to Rs. 4.6 billion in 2012.
The Agriculture and Agrarian Insurance Board saw losses increase from Rs. 98 million in 2005 to Rs. 4.8 billion in 2012.
The Janatha Estates Development Board made a loss of Rs. 135 million in 2005, which grew, to Rs. 252 million in 2012.
The losses made by a majority of the state owned enterprises have outdone the commendable performance of the few who continue to function as profit making entities.
Also, the CPC and CEB had borrowed Rs. 200 billion to address their financial crises.
Wednesday, 12 June 2013
The Mahinda Rajapaksa government in its endeavor to create the Miracle of Asia has managed to push the country into an economic abyss with state institutions that recorded profits in 2005 being converted into massive loss making enterprises by 2012.
It indeed is a miracle to be able to convert profit making institutions into loss making ones in seven years.
The Finance Ministry has stated that the losses of 55 state institution amount to Rs. 200 billion last year.
It was last week reported that from contributing Rs. 32 billion in profits eight years ago, state enterprises now burden economy with Rs. 107 billion in losses.
The Treasury had reported that the Ceylon Petroleum Corporation (CPC), which reported a Rs. 9.8 billion profit in 2005, sustained a Rs. 89.6 billion loss in 2012. The Ceylon Electrcity Board (CEB), reported a loss of Rs. 6.8 billion in 2005 which grew to Rs. 61.1 billion in 2012.
SriLankan Airlines, which made a Rs. 834 million profit in 2005, incurred a Rs. 25.9 billion loss in 2012. The budget carrier, Mihin Lanka which did not exist in 2005, saw losses increase from Rs. 1.9 billion in 2011 to Rs. 2.8 billion in 2012.
The Sri Lanka Transport Board, which reported a Rs. 1.1 billion loss in 2005, saw losses increase to Rs. 4.6 billion in 2012.
The Agriculture and Agrarian Insurance Board saw losses increase from Rs. 98 million in 2005 to Rs. 4.8 billion in 2012.
The Janatha Estates Development Board made a loss of Rs. 135 million in 2005, which grew, to Rs. 252 million in 2012.
The losses made by a majority of the state owned enterprises have outdone the commendable performance of the few who continue to function as profit making entities.
Also, the CPC and CEB had borrowed Rs. 200 billion to address their financial crises.
Rupee sinks to 6-month closing low
June 12, 2013
Reuters – Sri Lanka’s rupee dropped to the lowest close in nearly six months on Tuesday, weighed down by banks’ demand for dollars to settle bond-related sales and importer buying of the U.S. currency, dealers said.
The rupee, which hit 127.80 per dollar in intraday trade, ended at 127.75/85, its lowest close since Dec. 19. It had closed at 126.55/60 on Monday.
“We see some small-time bondholders pulling back with the U.S. treasury yields moving upward,” a currency dealer said.
“They are also concerned over interest rates further coming down after the central bank’s comments.”
Dealers also said importers were buying dollars on concerns that the local currency may depreciate further.
The Central Bank Governor Nivard Cabraal, after holding key policy rates steady on Friday, said the monetary authority would issue guidelines to direct
banks to cut lending rates and narrow the gap with the inflation rate.
The rupee has weakened 0.2% so far this year following a 10.7% depreciation in 2012 as the central bank allowed for a flexible exchange rate regime in February 2012.
“We see some small-time bondholders pulling back with the U.S. treasury yields moving upward,” a currency dealer said.
“They are also concerned over interest rates further coming down after the central bank’s comments.”
Dealers also said importers were buying dollars on concerns that the local currency may depreciate further.
The Central Bank Governor Nivard Cabraal, after holding key policy rates steady on Friday, said the monetary authority would issue guidelines to direct
banks to cut lending rates and narrow the gap with the inflation rate.The rupee has weakened 0.2% so far this year following a 10.7% depreciation in 2012 as the central bank allowed for a flexible exchange rate regime in February 2012.
