Finance Loss

Nov 17, 2009 (LBO) – Sri Lanka’s The Finance Company, a firm being re-structured under regulatory supervision, said it lost 835 million rupees in the September quarter, while interest income fell 37 percent to one billion rupees.

The Finance, a member of the troubled Ceylinco group, is a registered finance company and is under supervision of the Central Bank of Sri Lanka.

Interest expenses fell to 1.38 billion rupees from 1.47 billion rupees, leaving the firm with an interest loss of 380 million rupees, down from an income of 135 million rupees a year earlier.

Accounts filed with the Colombo stock exchange showed that personnel costs fell to 134 million rupees from 190 million and administration expenses fell to 251 million from 330 million a year earlier.

The firm made a 727 million provision for loan losses.

The Finance is heavily exposed to a property bubble which collapsed in 2008.

By September it had 5.0 billion in real estate (5.1 billion in March), 1.54 billion in housing projects (1.1 billion in March) and 919 million rupees in investment leases – properties (954 million in March).

It also listed 3.0 billion as being due on easy payments on lands (3.7 billion in March) and 2.2 billion