Annual Report 2008 - Ministry of Finance and Planning

3. Performance of Public Enterprises
170
Table 3.31
Financial Highlights of STC
Rs. mn
Description 2006 2007 2008
Table 3.32
Financial Highlights of LSL
Rs. mn.
Description 2007 2008
Timber Sales 1,878 2,298 2,737
Other Income 228 422 250
Cost of Sales 912 1,133 1,526
Gross Profit 966 1,165 1,211
Expenditure 713 909 813
Net Profit before Tax 481 678 648
Taxes and Levy 343 339 365
Net Profit after Tax 138 339 283
Non-Current assets 1,580 1,339 1,524
Current Assets 963 1,545 1,407
Capital and Reserves 1,673 1,823 2,113
Non-Current Liabilities 342 371 362
Current Liabilities 528 691 455
Source: STC Annual Report
Lanka Sathosa Limited (LSL)
The Lanka Sathosa Limited (LSL) was established under
Mahinda Chinthana to make the commodities available
at reasonable prices to the general public. The LSL has
recorded a turnover of 3637 million for the year 2008 with a
profit of 22 million. The LSL has been able to reduce the cost
of employment by employing only on average 9 employees
per unit and that is below the industry level. The LSL has
recorded average sale per employee is Rs.3.3million in
2008.
Turnover 2206 3637
Other Income 6 11
Cost of Sales 1943 3232
Gross Profit 263 405
Expenditure 252 394
Net Profit 17 22
Non-Current assets 108 129
Current Assets 335 619
Capital and Reserves 231 370
Current Liabilities 212 378
Source: Lanka Sathosa Limited
Challenges of Public Enterprises
Professionalizing the boards of management is the major
challenge faced by Public Enterprises. Often time the
capacity and commitment of board members is inadequate
to manage complex board affairs. Therefore a scheme
should be developed to identify and appoint most suitable
members to the boards of managements of important public
enterprises.
The PEs being one of the largest employers in the country
should have strong human resource management strategy.
However, the many Public Enterprises do not have a human
resource management plan. While some public enterprises
have a large number of redundant or uneconomical staff
some enterprises do not have adequate professional staff to
meet their present day needs. Therefore the entire Human
Resource profile of PEs needs to be re-evaluated and actions
should be taken to build a human resource capacity of
these institutions to improve the efficiency and productivity.
Most importantly, the senior management of PEs should be
strengthened with relevant professional staff to improve the
performance of PEs.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008