Losing Quarter

June 08, 2009 (LBO) – Sri Lanka’s The Finance Company, a unit of the troubled Ceylinco group said it lost 1.3 billion rupees in the March 2009 quarter, as net interest income turned negative and loan loss provisions increased.

Investment in real estate was shown as 5,256 million rupees, investments in housing projects 1,140 million rupees, investments in leases properties 1,380 million rupees, housing loans 1,394.5 million rupees and investment properties 1,414 million rupees.

The firm itself had property plant and equipment valued at 3,124 million rupees.

Its government securities holdings had fallen to 954 million from 3,739 million in the same quarter last year.

The Finance had public deposits of 27.0 billion rupees at the end of March 2009 down from 28.5 billion rupees in March 2008.

Net assets of the firm had fallen to 2.6 billion rupees from 4.0 billion rupees. Gross assets remained at 38.5 billion rupees.

Interest income fell 14.1 percent to 1,366 million rupees while interest expense rose 21.4 percent to 1,565 million rupees, turning net interest income to a negative 199.6 million rupees, according to provisional results filed with the Colombo Stock Exchange.

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