The Managing Director of Sri Lanka’s oldest Finance Company, The Finance Plc, Aruna P Lekamge says 43 Branches/Service Centers/Divisions have been making monthly profits by end of March 2015 in comparison to 19 Branches/Service Centers/Divisions in the Financial Year 2014. The Managing Director also said the company has overcome the main challenge it faced in the year under review with the settlement of the public deposit liability of Rs.1.2 billion together with the interest adhering to the CBSL directions to maintain the confidence level the public have in the Non-Bank Financial Services in Sri Lanka.
“These continued improvements in the branch level bottom lines have resulted in recording a reduction in the monthly operational losses by Rs.90 million in March 2015 in compared to the previous year,” Lekamge said addressing stakeholders in the company’s recent released Annual Report.
According to financials, however, TFC has recorded a loss of Rs.1.84 billion for the year ended 31st March 2015 after recognizing the impairment of some legacy balances of Rs 158 million during the year under review against loss of Rs.1.78 billion in the previous year.
“The performance of the Company has thus far been in line with the Business Plan approved by the Monetary Board. Total lending increased by 59% resulting in the increase in the monthly Net Interest Income by 76% over the 12 months in the year under review,” Lekamge said.
Last year, TFC commenced the third phase of the restructuring program and received a credit line of Rs 6 billion from the Central Bank Liquidity Support Scheme.
“After several years of unhealthy performance, TFC, for the first time, was able to get its key performance indicator to the right direction in the FY 2014/15. In order to maintain this momentum, a vital task has to be fulfilled by the Senior Management by way of investing in human resources development, introduction of new processes with new technology, and enhancement of professionalism among the employees, given the highly complex and competitive financing business environment in the country.
In fact, the Board of Directors and the Management have already taken several measures in this regard during the period under review,” The Finance Chairman, Dr S H A M Abeyratne said.