Sri Lanka Ports Authority profit rises along with debt

July 04, 2016 (LBO) – Sri Lanka Ports Authority boosted profits by 43.7 percent to 4.6 billion rupees before tax, during the first four months of the year, the mid-year fiscal report of the Finance Ministry said.

Revenue increased by 8.5 percent to 14 billion rupees during this period. However, outstanding borrowings increased, and SLPA should focus on a sustainability plan, the report added.

“SLPA has identified the port of Galle as a priority project for the development of tourism activities in the southern coastal belt and it is expected to invest on this area by SLPA and initial actions are now being taken to commence the project,” the report said.

“SLPA is also in the process of introducing a system of issuing Certificates of Competencies (COC) and Seafarer Continuous Discharge Certificate (CDC) with bio-matric to comply with seafarer identity.”

Total outstanding borrowings of SLPA by April 2016 increased up to 233.6 billion rupees due to the implementation of development projects.

Performance of SLPA is expected to expand with the latest improvements and developments in ports under the SLPA, the Finance Ministry said.

“However, SLPA should take prompt action for implementation of a prudent debt management system to ensure debt sustainability, since it reflects a huge amount of loan outstanding balance at present.”