Income from investments had increased 22.5 percent to 7.39 billion, while administrative expenses had increased 22.29 percent.

Distribution costs had decreased 6.0 percent to 2.61 billion rupees.

Distilleries interim results said in financial year 2008 gross profit from its core spirits business had increased 47.5 percent to 4.77 billion rupees, while income from financial services had increased 28.5 percent to 1.04 billion rupees.

But after the accounts were released, Distilleries lost its insurance unit, Sri Lanka Insurance Corporation, when the supreme court cancelled its acquisition of the state-run insurer in a privatisation exercise.

Distilleries healthcare subsidiary headed by Apollo Hospitals made a gross profit of 80.6 million rupees after making a 273.23 million loss the year before.

The company’s sales of spirits during 2008 were up 12.4 percent to 30.62 billion rupees, while revenues from health services increased 26.7 percent to 2.42 billion rupees.

During 2008 gross profitability in the volatile plantation business decreased 69.1 percent to 93.91million rupees, while returns from the telecommunication business of subsidiary Lanka Bell had dropped 91.8 percent to 73.43 million rupees.

Distilleries income from the telecom sector was down 11.5 percent to 6.48 billion rupees.

In the March quarter Distilleries profits were down 53.4 percent to 626.59 million rupees 670.3 million rupees.

Gross turnover during the March quarter had increased 8. 1 percent to 13.35 billion rupees, while net turnover decreased almost 30 percent to 7.80 billion rupees.

Cost of sales dropped by 28.0 percent to 5.43 billion rupees from the corresponding quarter of 2008.

Investment income during the March quarter had increased 21.6 percent to 1.90 billion rupees.

Income tax expenses had increased 29.2 percent to 886.98 million rupees.

Distilleries Company of Sri Lanka a subsidiary of tycoon Harry Jayawardena’s Stassen group ran into a storm last Thursday, after a three bench judiciary headed by outgoing Chief Justice, Sarath N Silva reversed the 2003 privatization of Sri Lanka Insurance Corporation (SLIC) to Distilleries, saying the transaction was ‘illegal’.

SLIC’s life fund, one of the largest insurance funds in Sri Lanka has large stakes in other listed companies such as Commercial Bank (10.0 percent), Development Finance Corporation of Ceylon (11.0 percent) and John Keells Holdings (7.0 percent).