Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Performance Issues ChallengesLady Lochore Loan Fund• Interest income increased by 25% to Rs45Mn over in 2010• Loans and advances increased by 24% toRs 222 Mn in 2010.• 34,500 loans have been grantedAgricultureSri Lanka Cashew Corporation• Production of the Corporation is about1% of the total country’s production of8,000 MT• Total Expenditure in 2010 was Rs 124Mn out of which the Treasury bearsabout 74% of the total budget of theCorporationPalmyrah Development Board (PDB)• Revenue increased by 43% to Rs 20.7 Mnin 2010• Market share is about 30%• PDB continued to be supported by theTreasury- Recurrent grant of Rs 53.5 Mn which isabout 60% of the expenditure- Capital grant of Rs 30 MnMILCO (Pvt.) Ltd.• Revenue decreased by 3.5% to Rs 4,093Mn in 2010National Livestock Development Board• Revenue increased by 24% to Rs 1,100Mn in 2010• Net profit increased to Rs 176 Mn in 2010• Weak loan tracking system leadingto over or under recovery of loans• Lack of a proper internal controlsystem with poor segregation ofduties• Non implementation of the manualon good governance• Low productivity of the cashewlands due to improper landmanagement• Poor management practices- Less focus on developing thecashew lands owned by thecorporation- More focus on implementingsubsidy schemes for privatecashew growers• Inadequate supply to cater to thepresent market demand• Lack of a realistic business plan• Lack of toddy tappers in theindustry• Poor marketing network due tolack of vertical and horizontalintegration• Inadequate supply to cater to thepresent demand• No proper pricing strategy.• Mismatch of skills of the existinglabour force and the required skills• Outdated plant and machinery• Low productivity due to poormanagement practices• Lack of coordination with the otherplayers in the livestock sector• Poor supply chain management• Weak financial management• Under utilization of existing assets• Expand and promote the loanschemes covering a wider sectionof government employees• Identify the role of theCorporation as a grower, buyer orregulator• Producing diversified value addedproducts• Marketing strategy to popularizethe products using newtechnology. i.e. e-marketing• Position MILCO to cater tothe increasing demand forbetter nutritional requirementsgenerated with the increasingawareness and income levels inthe domestic market• Facilitate self sufficiency in milkproduction• Clearly identify the areas ofoperations in the dairy industrywith MILCO, where NLDB shouldconcentrate more on ensuring acontinuous supply of liquid milkrather than engaging in valueadded production235