Finance Losses

Oct 14, 2010 (LBO) – Sri Lanka’s The Finance Company, which is converting some deposits into shares, has managed to reduce losses compared to last year but interest costs are still higher than income, a stock exchange filing showed. The firm, part of the troubled Ceylinco group although now under separate management, made a loss of 737 million rupees in the September 2010 quarter down from a loss of 835 million rupees a year ago.

But the September quarter loss was higher than the loss of 431 million rupees The Finance Company (TFC) suffered in the June 2010 quarter.

TFC’s interest income fell 47 percent to 527 million in the September 2010 quarter from a year ago while interest expenses fell 45 percent to 758 million rupees and net interest income fell 39 percent to 231 million rupees.

Its loss per share was 36.11 rupees in September 2010 compared with 40.90 rupees a year ago.

Public deposits fell to 23.98 billion rupees as at September 30, 2010 down from 24.99 billion rupees in June 2010 and 25.8 billion rupees as at March 31, 2010.

The Finance Company has said it is to issue 100 million non-voting shares at 20 rupees each to deposit holders to convert into equity part of their deposits which were blocked a