Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010percent of their profit or 15 percentof their equity, whichever is higher, tothe consolidated fund as dividends.Reflecting the improvement in theperformance of SOEs in 2010 theDividends and Levies received from theSOEs amounted to Rs. 31,301 million.Levies and Dividends constituted 27percent of the non tax revenue in 2010as against 12 percent in 2009.Partnership Role inDevelopmentthe Colombo Stock Exchange in 2010.The initiative taken by the CeylonElectricity Board (CEB) to form a jointventure to build and service the Coalfired power plant at Sampur at a costof USD 500 million is another milestonein promoting investments with the leastburden to the national budget.With the country approaching uppermiddle income status, its investmentdecisions will be increasingly drivenby performance. The government’sexpectation from SOEs is not merelyto implement government policy, butto see SOEs create a brand out oftheir corporate identities, which willenhance the value of the governmentinvestment portfolio. It is expectedthat this will enhance the prospect ofcapital promotion in the future.SOEs have been at the forefront ofimplementing the majority of thelarge infrastructure projects of thegovernment. In this regard, SOEs suchas Ceylon Electricity Board, Sri LankaPorts Authority, National Water Supplyand Drainage Board have becomestrategic in sustaining the publicinvestment momentum.Selective SOEs have commandedusing their own strengths to attractinvestments. In 2010 Sri Lanka PortsAuthority has entered into the country’slargest Private Public Partnership sofar, to develop the Colombo Southport terminal. The government assistedby raising a loan of USD 300millionfrom the Asian Development Bank toconstruct the breakwater at a cost ofUSD 450 million. This public investmentis expected to attract USD 500million for the construction of the firstterminal. Similarly Urban DevelopmentAuthority too, successfully issued aDebenture for Rs. 10,000 million whichwas oversubscribed by almost sixtimes to finance urban infrastructuredevelopment initiatives.Private Public Partnership (PPP) a jointventure business model has proved tobe a win-win situation as apparent fromthe performance of Sri Lanka Telecomwhich has continued to be one of thebest performing listed companies inRs. Mn35000300002500020000150001000050000Chart 4.1 > Annual Return on Investment6,9517,682 7,37011,98231,3012006 2007 2008 2009 2010Table 4.1 > Total Levies / Dividends received from SOEs(Rs. Mn)2001– 2005 2006 - 2010Commercial Corporations 5,580 36,177State owned banks 11,152 22,144Companies 100% owned by the223 403governmentSub Total 16,955 58,724Companies less than 100% but1,265 1,842more than 50% Owned By TheGovernmentCompanies less than 50% Owned 2,990 4,674By The GovernmentPlantation Companies less than39 4550% Owned By The GovernmentSub Total 4,294 6,561Total 21,249 65,285Source: Department of Public Enterprises and Department of Treasury Operations203