June 03, 2013 (LBO) – Sri Lanka’s state banks and insurance funds have contributed 23 billion rupees or about 0.3 percent of gross domestic product to state revenues in 2012, official data showed. State enterprises such as Lak Sathosa also operate without paying value added tax.
Corrected, revenues of 2013
The Bank of Ceylon had paid 5.3 billion rupees in dividends and the People’s Bank 4,658 million. Sri Lanka Insurance Corporation had paid 1,001 million rupees, down from 1,750 million a year earlier.
State banks however are facing capital shortages, and need re-capitalization.
Both People’s Bank and Bank of Ceylon’s board are expected to pay some dividends on as conditions of bailouts received in the 1990s, but with strong balance sheet growth the banks need m