"We have a (cash) inflow of 700 million (rupees) a month of which 300 million goes out as interest payments and another 250 million goes out as capital payments."
However Yatawara said the company still has not reached the level of financial stability to pay all its depositors' capital payments at once.
"Deposits have gone up to 100 million rupees per month," Yatawara said.
Property Business
Yatawara also said TFC's real estate business has returned to profitability.
The real estate arm brings in 40 percent of TFC's business, while the hire purchase unit contributes the rest, Yatawara said.
TFC has over 4.5 billion rupees invested in real estate assets, Yatawara said.
He said most of TFC's 4,500 blocks of land are situated out of Colombo and in some selected suburban areas.TFC bought some properties worth 150 million rupees in the last two months to capitalize on undervalued properties, Yatawara said.
"When land prices crashed we didn't get hit as bad as some of the other property companies as the fall in land prices outside Colombo declined at a slower pace," Yatawara said.
"In the last few months we sold some properties for 200 million rupees for a profit."
Merchant Bank of Sri Lanka (MBSL), the investment banking unit of state-owned Bank of Ceylon, was appointed as the managing agent of TFC in mid-2009 after a run on its deposits following the collapse of Golden Key, a Ceylinco group company.
Golden Key defaulted on 27 billion rupees of public deposits after the collapse of the property bubble during which it had invested billions of rupees to earn high returns needed to finance interest rate payments which were well above the government securities rate.
