State enterprises engulfed in losses - report

COLOMBO (News1st): State enterprises have faced more than 82.78 billion rupees in losses this year, a finance report has shown. The finance ministry report has highlighted the performances of 52 state enterprises. Among them, 19 enterprises had incurred a total of more than 82.78 billion rupees in losses between January and April. This is slightly higher than the losses of 82.70 billion rupees faced among the selected enterprises during the same period last year. But Sri Lanka has 527 state enterprises. This would mean that the losses are likely to be much higher. The key loss-making institutions are;

1. Ceylon Petroleum Corporation
2. SriLankan Airlines
3. Ceylon Electricity Board
4. Sri Lanka Transport Board

Ceylon Petroleum Corporation

The Ceylon Petroleum Corporation has generated losses of 45.3 billion rupees so far this year. This is a massive downfall as the CPC generated 2.3 billion rupees in profits last year. The report shows that Ceylon Electricity Board, West Coast Power Pvt. Ltd. and Sri Lankan Airlines owe the CPC 119.7 billion rupees.  

SriLankan Airlines

SriLankan Airlines has incurred losses of 24.8 billion rupees in the first four months this year. Its total losses are now at more than 372 billion rupees. The treasury has issued guarantees worth 52.3 billion rupees to the national air carrier. This would mean that the government will pay debts worth this amount if SriLankan Airlines fails.  

Ceylon Electricity Board

The Ceylon Electricity Board has incurred losses of 7.5 billion rupees so far this year. It owes 126.8 billion to the Ceylon Petroleum Corporation and Independent Power Producers.  

Sri Lanka Transport Board

The Sri Lanka Transport Board has incurred a loss of 1 billion rupees in the first four months this year. This is an increase compared to 223 million rupees of losses incurred during the same period last year.