Annual Report 2010 - Ministry of Finance and Planning

4 | State Owned Enterprises (SOE)Performance Issues ChallengesSri Lanka Land Reclamation and Development Corporation (SLRDC)• Turnover has recorded a year on year • Despite enjoying monopoly statusgrowth of 18% in 2010. However, gross on the sale of sea sand, SLRDC hasprofit and profit after tax decreased by not been able to earn significant12% and 53% respectively.profit or gain a sizable market• Sale of sea sand is the main avenue of share in the sand market, as therevenue which accounts 50% of total product has not been promotedrevenueeffectively.Finance and InsuranceEmployees’ Trust Fund Board (ETF)• The value of the fund increased by 25% • Backlog in updating memberto Rs.125,000 Mn in 2010accounts• Total Investments has increased by 18%to Rs. 17,866Mn in 2010• Total contribution from members was9,800 Mn• Commenced the remittance of ETFcontributions using internet bankingthrough Bank of Ceylon and CommercialBankDevelopment Lotteries Board (DLB)/ National Lotteries Board (NLB)• Revenue of DLB and NLB increased by • Lack of capacity and interest to8.6% and 3.3% respectively in 2010exploit new markets• Total expenditure of DLB and NLBdeclined to Rs 594 Mn and Rs 1,186Mnrespectively in 2010Sri Lanka Insurance Corporation Ltd (SLIC)• Revenue increased by 71% to Rs 35,118 • Highly dependent on governmentMn in 2010businesses• Earnings Per Share (EPS) increased toRs.17.48 in 2010 from Rs 1.23 in 2009National Insurance Trust Fund (NITF)• 650,000 Agrahara policy holders• Delay in preparing financialcontributed Rs.595Mn in 2010 while the statementsTreasury contribution was Rs. 443Mn • Lack of experienced staff• Total Agrahara claims in 2010 amounted • High staff turnoverto Rs 1,138 MnAgricultural & Agrarian Insurance Board (AAIB)• Contributions to the fund amounted to • Mismatch between the contributionRs 264.2 Mn while the expenditure on and payments resulting in thepension payments and the insurance deterioration of pension andclaims amounted to Rs 287.6 Mn in 2010 insurance funds• Treasury contribution to the AAIB wasRs 132 Mn in 2010• Controlling the expenditure toimprove the profit margin• Lack of under developed landsfor acquisition thereby limitingthe SLRDC’s scope for increasingrevenue• Use of new technology toservice members i.e. availabilitye-statements, balance query etc.• Identifying investment avenues inthe backdrop of a growing fund.• Find innovative mechanisms toenhance the customer base.• Clearly demarcate the differentmarket segments both entitiesshould operate• Increasing market share in ahighly competitive and regulatedenvironment• Identifying new and innovativeproducts to meet the needs in agrowing economy. i.e. Port relatedactivities, construction industries,SME sectors etc.• Clearly demarcate the differentmarket segments both NITF andSLIC should operate.• Amalgamating the AAIB witha suitable entity to ensure thesustainability of the pension andinsurance schemes for the selfemployed234