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| Sunday, 4 January 2004 |
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| News Business Features Editorial
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STC on recovery path by Hiran H. Senewiratne STC General Trading Company Ltd, formally known as Sri Lanka State Trading (General) Corporation, is now on the path to recovery after recording heavy losses for several years. According to company sources, when the present management took over a few years back, STC General Trading was making a loss of Rs 93 million. In 2003, the entity's losses were brought down to Rs 50 million. The total loss of STC has now been reduced by about Rs 17 million, said its Chairman, Yasendra de Silva. He said: "This year, we are hoping to turn the company from a loss-making entity to a profit-making venture". De Silva said the factors that had attributed for the success are overall reduction in very heavy inventories that STC was suffering, rationalising of products, cost cutting in terms of reducing expenditure and bank interest and cutting down warehouse expenditure. He anticipates a steady growth this year, while expecting joint venture operations with the private sector to make the organisation more efficient than at present. According to de Silva, the proposed joint ventures would be established in the areas of agricultural supplies, office supplies and equipment, motor supplies, light machinery and general equipment, motor supplies, chemical and allied products and also the fishing industry. "Once these joint ventures are established, we hope to see a rapid growth in our products and services in the market," he said. Many leading private sector organisations have expressed their interest in establishing strategic partnerships with STC, de Silva added. "With substantial investments coming from the private sector along with their expertise in marketing, organisations will be competitive in all business activities", he said. It is envisaged that these trading disciplines will be outsourced by way of extending 100 per cent management to the private sector, while STC withholds a major stake as agents for branded products included under these categories. Part of the workforce is expected to be moved out to serve in these new enterprises. Meanwhile, STC will offer a Voluntary Retirement Scheme (VRS) in the near future to downsize the number of employees to half the present number, de Silva hinted. He said STC currently has more than 400 employees and they will be offered an attractive VRS. De Silva said the proposed VRS will not be funded by the Treasury, but will be self-funded. |
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