Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Performance Issues ChallengesConstructionCentral Engineering Consultancy Bureau (CECB)• Revenue declined by 33% to Rs. 5,966 • Undertaking assignments without aMn in 2010.proper realistic assessment of the• Net profit increased by 163% to Rs. 408 capacity leading to delays and costMn in 2010.escalations.• CECB has entered the foreign market. • Heavily Dependent on governmentconstruction projects.• Lack of a proper ManagementInformation System tofacilitate optimal resultsfrom decentralization of theorganization.• Lack of debt recovery measuresand cost controls.• Delay in preparation of FinancialStatements.State Engineering Corporation of Sri Lanka (SEC)• Revenue increased by 50% to Rs 5,712 • Lack of proper administration ofin 2010. Net operating profit increased the construction work.only by 2.5% due to net operating losses • Lack of debt recovery measuresincured by Paliyagoda and Ratmalana and cost controls.workshops.• Dilapidated and obsolete• Took over the assets and liabilities of machinery.the National Equipment & Machinery • Heavily dependent on governmentOrganization in 2010contracts• Enhancing the credibility of theorganization through managementreforms.• Expanding access to the foreignmarkets.• To position as a viable institutionin the market.• Broad basing the customer base ina highly competitive market.State Development and Construction Corporation (SD&CC)• Revenue has increased by 8% toRs 1,581 Mn in 2010 while net profithas decreased by 77%.Urban DevelopmentUrban Development Authority (UDA)• UDA’s losses continued in 2010 at Rs143.34 Mn.• Successfully issued a debenture for Rs10 bn, which was oversubscribed by sixtimes.• Outdated machinery affects theproduction capacity.• Ineffective cost accounting andcost control system.• Lack of proper contractadministration and debt recoverymeasures.• Heavily dependent on governmentcontracts.• Limited access to the advancedtechnologies.• Delays in statuary payments• High operational expenditure• Lack of adequate skilled employees• Reinstating image of theorganization through managementreforms.• Infusion of capital to expand.• Implementation of the townshipdevelopment plan to meet therequirements of an emergingmiddle income country233