Post Loss

Apr 18, 2010 (LBO) – Sri Lanka’s state postal services lost 2.4 billion rupees in 2009 up from 2.1 billion rupees in 2008 while the mail use has stagnated at 21 letters per inhabitant, official data showed. In 2007 the postal services lost 2.8 billion rupees but prices were raised in the middle of the year and costs were cut 20 percent, the central bank said in 2008.

Revenues of Sri Lanka’s Department of Posts increased marginally while operating expenses rose 5.6 percent in 2009, the Central Bank said in it annual report.

Sri Lanka’s postal service is made up of 4,738 post offices, which includes 643 main post offices, 3,411 sub post offices, 463 agency post offices, 156 rural agency postal offices and 156 estate post offices.

“The initiatives taken by the Department of Posts (DOP) in 2007 to provide certain
banking facilities, insurance services and selling pre-paid phone cards through post offices were continued in 2009,” the Central Bank said.

“However, the public continues to use post offices primarily for postal services. Hence,
it is important to increase the awareness of the public on these new value added services and to position DOP as a new value added service provider¦”