Sri Lanka Ports Authority debt Rs234Bn, loss forecast in 2016
ECONOMYNEXT – Sri Lanka Ports Authority (SLPA) made a pre-tax profit of Rs4.6 billion in the first four months of 2016 but should introduce a debt management system given its huge debt of Rs234 billion, the finance ministry said.
The SLPA is forecast to make a loss of Rs3.5 billion in 2016, down from loss of Rs9.6 billion in 2015, the finance ministry said in its mid-year fiscal position report issued under the Fiscal Management (Responsibility) Act, No. 3 of 2003.
The SLPA has the highest outstanding debt to banks of nonâ€financial state owned business enterprises, with its total loan liability 69 percent of SLPA’s total assets, according to the report.
Total outstanding borrowings of SLPA by April 2016 increased up to Rs. 233.6 billion due to the implementation of several development projects in recent years, it said.
“Performance of SLPA is expected to expand with the latest improvements and developments in ports,” the report said.
“However, SLPA should take prompt action for implementation of a prudent debt management system to ensure debt sustainability, (given its) huge amount of loan outstanding balance at present.”
Under reform initiatives planned, the SLPA expects to improve infrastructure facilities and enhance capacity with the introduction of modern technology, the report said.
It also aims to introduce sector specific marketing and business development programs with a medium term focus on income generation activities to match the rising finance costs.
(COLOMBO, July 01, 2016)