CTC contributes Rs. 50b to Government in 2008
Ceylon Tobacco Company, contributed Rs.50 billion to the Government
in 2008, up Rs. 9 billion from 2007. The sales volumes however declined
in 2008, impacted by higher excise-led price increases and diminishing
consumer affordability. The Rs. 50 billion contribution to the
Government consists of Excise Duties, VAT, Provincial Council Tax and
Last year, despite economic challenges faced by many Corporates world
wide, CTC remained one of the largest contributors to Government
Revenue. The Rs.50 billion contributed in 2008(up from a Rs. 41 billion
rupees contributed in 2007) is mainly attributed to the excise led price
increases and declining volumes of illegal and counterfeit products in
the local market.
In 2008 more than 740 raids were carried out by law enforcement
officials, in a concerted effort to minimise the presence of illegal
The value of confiscated illegal tobacco products amounted to over
Bold and innovative initiatives in consolidating the distribution
network, further localisation of material inputs, and ongoing
organisational restructuring have continued to deliver significant
savings for the company.
These savings contributed to the profit after tax increase of Rs.867
million in 2008.
The Company doubled its investments in its flagship community
project; Sustainable Agricultural Development Programme (SADP) which is
targeted at poverty alleviation and has over the last three years
touched lives of 3578 families in rural Sri Lanka unfolding a simple
formula to achieve sustainable development through their own effort.
During the year 2008, 205 families exited the programme achieving self
sufficiency and taking the project on to a different level. The Company
has extended its SADP project to the Eastern province in line with the
Government's Re-building the East programme- "Nagenahira Navodaya".
The SADP formula will be replicated in identified areas in the
Eastern province. This is expected to benefit a large number of
families, now re-located in the East of the country.
Dipped Products records a revenue of Rs. 9.2 bln in 3Q
Dipped Products PLC (DPL), the Hayleys Group's multinational rubber
glove manufacturing business which also owns and manages Kelani Valley
Plantations PLC has reported a turnover of Rs 9.2 billion for the nine
months ending December 31, 2008, achieving a 15 per cent growth over the
corresponding period of the previous year. According to figures released
to the Colombo Stock Exchange this week, turnover from Hand Protection
grew 12 per cent to Rs 7.2 billion despite an export volume drop of 7
per cent from Sri Lankan manufacturing operations, while turnover from
Plantations grew 34 per cent to Rs 2.5 billion before adjusting for
inter-segmental sales. Dipped Products Thailand, the Group's medical
glove manufacturing business performed substantially better and avoided
losses in its final quarter ending December 2008 with encouraging
improvements in production, sales volume and earnings.
The increase in Hand Protection turnover came mainly from DPL's
Italian marketing company, ICOGUANTI S.p.A and higher revenue obtained
by exports from Sri Lanka due to better prices in the period under
review, the Company said.
Turnover growth in the Group's plantations business came from a 37
per cent improvement from tea due to higher production and better prices
and a 27 per cent increase in revenue from rubber. However, high latex
prices and escalation in the cost of energy during the 1st half of the
year eroded margins in local Hand Protection manufacturing in the period
reviewed, resulting in lower pre and post tax profits at Group level.
Group profit before tax, at Rs 402 million reflected a decline of 7 per
cent, while post tax profit dropped 11 per cent to Rs 304 million.
Overseas operations keep Haycarb on target
Continuing strong contributions from overseas operations and higher
prices for its products have helped Haycarb PLC to cope with pressure on
its local manufacturing operations in the nine months ending December
31, 2008, enabling the Hayleys Group's activated carbon manufacturing
business to stay on target in unfavourable conditions.A shortage of
coconut shells for conversion to charcoal, its main raw material in Sri
Lanka, has resulted in production falling by 12 per cent in the review
period, but the Group comprising manufacturing operations in Sri Lanka,
Thailand and Indonesia has posted a turnover of Rs. 3.4 billion, a
growth of 12 per cent over the corresponding period of the previous
Local manufacturing continued to be pressured by higher prices for
local inputs, particularly raw materials, resulting in the Group's Cost
of Sales growing 17 per cent to Rs. 2.6 billion and significantly
eroding margins, the company said.
SLT appoints CEO
Chairperson Sri Lanka Telecom Leisha De Silva Chandrasena appointed
Greg Young as the new Chief Executive Officer of Sri Lanka Telecom.
Young is an
Australian citizen who was in employment in USA with a background in
telecommunications. He will assume his duties as CEO of SLT from 2nd
Chairman S.L. Tourism steering committee
Rajan Asirwatham has been appointed as the Chairman of the Steering
Committee that has been set up to monitor and spearhead the World Bank
assisted Tourism Sector Development and Community Empowerment Project
from January 2009 by Milinda Moragoda, Minister of Tourism. Asirwatham
replaces Renton de Alwis who was the first Chairman appointed for the
committee who stepped down for personal reasons. Asirwatham has been the
Chairman/ Institute of Taxation, Chairman/Finance Services Stability
Committee - Central Bank of Sri Lanka, Member/University of Colombo
Council, Director/ Ceylon Tea Services Ltd., Director/Lanka Orix Finance
CO. Ltd, Member/ Advisory Council - Ceylon Chamber of Commerce,
Chairman/Bank of Ceylon & PERC previously.