July 17, 2011 (LBO) – Sri Lanka’s state-run Ceylon Shipping Corporation’s losses rose 64 percent to 57.1 million rupees in the 2009/201 financial year, while revenues continued to fall, a finance ministry report said. Revenues had fallen 45 percent to 485 million rupees.
The report said the firm lacked capital to expand operations and was finding it difficult to compete as capacity on available vessels was not adequate.
The firm had not found new markets after the end of transporting “security cargo” the report said.
The report said the firm could explore avenues of domestic water based transport or seek ways to find capital and engage in both passenger and cargo transport. The group also had associates, Ceylon Shipping Lines and Ceylon Shipping Agency (Pte) Ltd of Singapore.
Many Sri Lankan state enterprises which are doing business with peoples’ tax money are making big losses, especially in the transport sector.