Annual Report 2008 - Ministry of Finance and Planning

3. Performance of Public Enterprises
168
The Janatha Estate Development Board (JEDB) and the
Sri Lanka State Plantation Corporation (SLSPC) were
experiencing losses during several years. During the year
2008 actions were taken to restructure the JEDB & SLSPC.
As a result, the JEDB has been able to reduce its loss of Rs.
109 million in year 2007 to Rs. 19 million in 2008. The SLSPC
has reduced its loss from Rs. 45.89 million in 2007 to Rs. 4.3
million in 2008.
The major issues in relation to the regional plantation
companies (RPCs) are irregular sub-leases by plantation
companies without golden shareholder approval; disputes
between sub leasers and subleases which lead to nonfunctioning
of the estates; charging higher management
fees depriving the interests of minor shareholders ; nondeclaration
of dividends for minority shareholders; weak
monitoring system on capital investments by plantation
companies which is important to ensure the sustainability of
plantation sector; and issues related to lease agreements.
RPC
Table 3.29
Dividends Received by the Government from RPCs
Rs.m
Govt % 2008 2007 2006 2005 2004 2003 2002 2001 2000 Total
Holding
Elpitiya Plantations Ltd 39 - - - - - - - - - -
Maturata Plantations Ltd 39 - - - - - - - - - -
Pussellawa Plantations Ltd 32 - - - - - - - - - -
Agarapathana Plantat. Ltd 30 .001 - - - - - .948 - - 4.949
Balangoda Plantations Ltd 20 0.003 - - 0.006 - - 0.006 .012 - 0.027
Namunukula Plantat. Ltd 16 6.774 - - - - - - - - 6.774
Madulsima Plantat. Ltd 13 - - - - - - 2.569 5.708 3.806 12.083
Kotagala Plantations Ltd 11 10.262 10.262 .421 2.565 - - - - - 26.510
Bogawantalawa Plantat. Ltd 0.03 0.004 - 0.004 0.004 - - - - 0.008 0.020
Horana Plantations Ltd 0.02 0.011 0.008 .005 - - - - - - 0.024
Total 17.055 10.270 3.430 2.575 - - 7.523 5.720 3.814 50.387
Source: Regional Plantations Corporations.
Health Sector
The State Pharmaceuticals Corporation (SPC), State
Pharmaceuticals Manufacturing Corporation (SPMC) and
Sri Lanka Ayurvedic Drugs Corporation play a significant
role in manufacturing, importing and supplying safe,
effective and high quality medicinal products and health
services at an affordable price. They are the major suppliers
of the Government hospitals. During the year 2008 these
Public Enterprises (SPC and SPMC) have supplied Rs. 9843
million worth of medicinal products to the Medical Supplies
Division (MSD) of the Healthcare & Nutrition Ministry. It is
an 8% increase from the year 2007.
State Pharmaceuticals Corporation
During the year 2008 total turnover of the SPC has increased
by 7% from Rs. 11437 million in 2007 mainly due to increasing
sales to the department of health services. The profit after
tax has marginally increased to Rs.215 million in 2008 from
Rs. 187 million in 2007.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008