Annual Report 2010 - Ministry of Finance and Planning

4 | State Owned Enterprises (SOE)Performance Issues ChallengesNational Gem and Jewellery Authority• Revenue from regulatory activities has • Lack of knowledge on advancedincreased by 11% in the year 2010technology and cost effective• Net loss for the year 2010 was Rs. 39 Mn mining methodsas against the loss of Rs. 14.5 Mn in 2009 • Lack of opportunities for skills• In 2010, 8,686 licenses were issueddevelopment and retaining oftrained personnelState Timber Corporation (STC)• Turnover increased by 5% in 2010, but • No proper marketing strategies togross profit margin has marginallycater the market requirementsdecreased to 41.39% in 2010• Diminishing timber coverage in the• Utilization of assets compared to the country.turnover to 81.47% in 2010• Competition from the timber• Liquidity position has improvedimporters• Contributed Rs. 1,814 Mn as stumpage • Funds are not ploughed back forand levys in 2010expansion of the corporationMediaIndependent Television Network (ITN)• Recorded a profit of Rs 308 Mn in 2010 • Weak debt management leading toan increase of 66% over 2009.liquidity problems• Total Asset base of ITN increased by30% to Rs. 1,751 Mn in 2010, mainly dueto the increase in commercial debtorsto Rs 765 Mn in 2010 from Rs 555 Mn in2009.Sri Lanka Broadcasting Corporation (SLBC)• Recorded a net profit of Rs. 38.3 Mn in • Excess staff and high2009 and Rs. 42.6 Mn in 2010administration expenses• Non existence of a proper costingsystem• Under utilization of existing assetsSri Lanka Rupavahini Corporation (SLRC)• Total income increased by 3% to Rs 1,930 • Non existence of a proper costingMn in 2010.system• Net profit increased to Rs. 42 Mn in 2010 • Outdated equipment to cater tofrom Rs. 12 Mn in 2009the modern marketSri Lanka Printing Corporation (SPC)• Revenue increased by 19% to Rs. 979 Mn • Non payment of dues fromin 2010government agencies• Inability to deliver orders in atimely manner due to-Outdated equipments-Improper planning• Introduction of new technology tothe industry• Strike a balance betweenenvironmental concerns and theincreasing demand for timberwith the boom in the constructionindustry• Infusion of capital forinfrastructure development tomeet the technological changesand competition• Identifying and responding to newmarket opportunities• Infusion of capital forinfrastructure development tomeet the technological changesand competition• Identifying and responding to newmarket opportunities• Accessing new markets due tointense competition• Diversifying the customer base238