Agency POs struggle for survival

Shirajiv SIRIMANE

Agency Post Offices (APOs) that were one time a lucrative business is now striving hard to survive. Already over 60 APOs have closed down due to less business.

CEO, Association of Agents of Agency Post Offices, Gamini Ramanayake said that today only 486 APOs are functioning and many will face closure due to high overhead costs and less revenue.

Each APO needs four employees who work on two shifts and they need to be paid EPF and ETF. APOs also have to pay rent for the premises in addition to electricity and telephone bills.

With the return on investment on equipment such as telephones, laminating, fax and photocopy machines and their maintenance, an APO invests monthly around Rs. 75,000.

He said that unlike in the past, people today are not taking many telephone calls through APOs and prefer to send SMS via mobile phones that have eroded their profits. "In addition people also prefer to take private and international calls through their cellular or land lines which also give us less opportunities," he added.

The source of business for APOs are from the sale and commission of stamps and there is also an emerging market from mobile phone reloads. In addition APOs also earn commission when customers pay their water bill through them.

"We have been requesting from the Ceylon Electricity Board to grant permission to call the electricity bills. However this is yet to be considered," he said.

Similarly APOs also have made several representations to the authorities seeking approval to collect Police Spot Fines even without a commission. The Post Offices currently collect a 10 per cent commission.

"We are ready to provide this Spot Fine collection facility for a small service fee," he said.