Broken canal pump revealed in Sri Lankaâ€™s Industrial Asphalts flooding
ECONOMYNEXT – Industrial Asphalts (Ceylon) said its premises near the Sri Lankan capital Colombo was submerged as two pumps in a canal that takes rain water were unable to cope with the unprecedented floods, with one of them broken.
The flood waters, caused by unusually heavy rain in May this year, disrupted work at the firm which makes bituminous products and surface coatings for industry and household use, including road construction and maintenance.
Industrial Asphalts (Ceylon) (IAC) PLC’s premises at Peliyagoda was affected by flood waters on 15th May 2016 and the company was able to start partial operations only by 6th June 2016, according to interim June 2016 accounts filed with the stock exchange.
Rain water from the property is discharged to the adjoining canal, a note to the accounts said. The water from the canal in turn is pumped out into Kelani river.
“The canal has no direct link to the river. When the area experienced historically record high rain fall, the canal’s two pumps were unable to cope, whilst one of the pumps were out of service,” the company said.
“This resulted in canal stagnating and canal water level rising above company’s outlet pipes, effectively blocking the company’s sole rainwater discharge channel. All rainwater falling within IAC’s premises remained within the premises, resulting in the flood.”
Compensation received against inventory and work in progress so far was Rs.7.4 million. A claim is pending against machinery and building damage by the floods.
June 2016 quarter sales fell 31% to Rs11 million from a year ago with net profit down 45% to Rs1.2 million.
(COLOMBO, August 19, 2016)