Annual Report 2008 - Ministry of Finance and Planning

3. Performance of Public Enterprises
156
Sri Lanka Savings Bank Ltd (SLSBL)
Sri Lanka Savings Bank Ltd was established under the
Companies Act to operate as a licensed specialized bank
while providing a relief to the depositors of failed Pramuka
Savings and Development Bank (PSDB). Accordingly,
assets and deposit liabilities of PSDB were vested with
SLSBL. Assets base of SLSBL amounted to Rs. 1.29 billion
of which Rs. 700.5 million was constituted with investment
in government securities by the end of 2008. The bank has
earned a operating profit of Rs. 155 million for the year 2008.
Accordingly, retained loss of Rs. 2.17 billion has declined up
to Rs. 1.98 billion by the end of the year. The SLSBL has
recovered Rs. 207.65 million from the capital outstanding
of PSDB loans while recovering Rs. 25.45 million of interest
receivable. In terms of the settlement scheme formulated
by the Central Bank of Sri Lank, total settlement made by
the end of 2008 amounted to Rs. 185.63 million. The bank
presently has introduced various savings products such as
normal savings, fixed deposits and saving certificates.
Infrastructure Development Sector
The Public Enterprises play a significant role in providing
both economic and social infrastructure facilities such
as electricity, transport, port services, water supply and
communications services. These enterprises command
technical competence in each of these areas and public
investments are undertaken by these enterprises.
The government has mobilized foreign finance on lend to PEs
to undertake earmarked investment activities coming under
their purview. Outstanding on-lending to public enterprises
by the government amounted to Rs. 231 billion by the end
of 2008, which is an increase of 8 percent. During the year
2008 the total amount on-lent to PEs was around Rs.26,390
million mainly to implement infrastructure projects of Ceylon
Electricity Board and Sri Lanka Ports Authority.
Table 3. 15
On Lending to Public Enterprises by the Government
Rs.mn
Name of the institution Outstanding On-Lending Outstanding
at the end 2007 during 2008 at the end 2008
National water supply and drainage Board 16,546 2,693 18,888
Ceylon Electricity Board 51,086 11,743 62,829
Ceylon Petroleum Corporation 5,882 - 5,235
Sri Lanka Ports Authority 42,495 141 51,044
Airport & Aviation Services Ltd 16,546 - 14,308
Others 81,118 11,813 79,413
Total 213,673 26,390 231,717
Source: Department of Treasury Operations
Ceylon Electricity Board (CEB)
The CEB is a public utility that implements the government’s
policy in the sphere of provision of electricity or energy. The
CEB covered its domestic connections to 80 percent of total
households in the country. The demand for electricity which is
expected to be stimulated with the accelerated development
projects undertaken in the North & East of Sri Lanka requires
additions of about 100MW each year. The government has
compensated to the CEB through investment or operational
support to continue the government policy on electrification
level to 95% in the year 2015 and to meet the increasing
demand.
The CEB is in the process of implementing several power
Ministry of Finance and Planning Sri Lanka
Annual Report 2008