Tight Rates

June 10, 2008 (LBO) – Sri Lanka's Lanka Orix Leasing Company (LOLC) group said net profits for the year ended March 2008 was up 21 percent with revenue growing 50 percent though rising interest costs trimmed profits at company level. Group net profits rose to 1.26 billion rupees from 1.04 billion, while gross revenues rose to 6.2 billion rupees from 4.2 billion.

At company level revenues at the island's pioneer leasing company rose to 4.9 billion rupees from 3.2 billion, but net profits at 977.8 million rupees were down marginally from 986.5 million a year before.

Net interest costs rose a steep 91 percent from 1.4 billion in 2007 to 2.7 billion rupees. Leasing firms depend on loans from other financial institutions for the bulk of their funds.

"As the regulatory framework tightens with increased focus by the authorities to monitor provisions and liquidity ratios, we at LOLC make a clarion call for a level operational playing field," chairperson Rohini Nanayakkara told shareholders in the annual report.

"Our greatest concern at this point in time remains the fact that despite being governed and regulated within the realm of the regulatory framework in place for Commercial Banks, from an operational perspective we

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