Sri Lanka’s Ministry of Finance has estimated that the cumulative profit generated by the 55 State-owned Business Enterprises (SOBE) will amount to a total of Rs.107.74 billion by the end of year 2015, a major acceleration from a total profit of Rs.59 billion achieved in 2014 and Rs.38 billion in 2013. According to the Mid–Year Fiscal Position Report 2015 issued under Section 10 of the Fiscal Management (Responsibility) Act No. 3 of 2003 by Minister Ravi Karunanayake recently, the profitability of the 55 State institutions in the first quarter of financial year 2015 had amounted to Rs.33.2 billion.
According to provisional forecasts compiled by the Department of Public Enterprises, the Ceylon Electricity Board (CEB) is estimated to mitigate its losses to Rs.4.8 billion by end 2015 from Rs.13.3 billion suffered in 2014 while the profit of Ceylon Petroleum Corporation is forecast to rise to Rs.14.3 billion in 2015 from a mere Rs.1.6 billion achieved in 2014.
The CEB had recorded an estimated Rs.13.7 billion profits in the first four months in 2015 and Rs.6.8 billion during the first quarter of 2015 while the Ceylon Petroleum Corporation, on the other hand, had suffered a loss of Rs.5 billion by the end of month of April 2015, statistics from the Mid–Year Fiscal Position Report showed.
“Electricity generation cost per unit has been significantly reduced to Rs.12.53 per kWh in the first four months in 2015 compared to Rs.20.15 per kWh in 2014. This was due to the increase of hydropower generation by 37.6 percent in first four months in 2015 compared to 30 percent in 2014 (Whole year),” the report said. It added that the CPC’s total cost of the petroleum products imports during the first four month is around Rs.90 billion which is a 22 percent reduction when compared to petroleum products imports of Rs.115 billion during the same period of the year 2014.
Meanwhile, SriLankan Airlines (SLA) recorded a loss of Rs.4.9 billion during the first four months of 2015 resulting in the increase in the accumulated losses of SLA to Rs.130.9 billion. The government is estimating that SLA would be able to reduce its losses to Rs.12.3 billion from Rs.16.2 billion suffered in 2014.
“The Government has decided to prepare a viable and comprehensive business plan for Sri Lankan Airline (SLA) and Mihin Lanka Ltd. and amalgamate these two airlines due to huge losses incurred. Both airlines are in the process of preparation of their business plans. SLA earned revenue of Rs.39.6 billion during the first four months of the 2015, which is a 4 percent decrease over the budgeted revenue. However, it is 43 percent increase compared to the same period of 2014. In the first four months of 2015, SLA’s total expenditure was Rs.44.9 billion, which represented an increase of 24 percent compared to the same period of the previous year,” the Report noted.