|Adverse business climate too attributed to
Ceylinco Seylan Developments hit by high finance and power costs
Ceylinco Seylan Developments Limited, owners of Ceylinco Seylan Towers, the headquarters of the banking/insurance conglomerate has posted a loss of Rs. 9.2 million on a turnover of Rs. 100.8 million in the year ended March 31, 2001, down from a profit of Rs. 5.1 million on a turnover of Rs. 60.6 million a year earlier.
The companys Chairman/Managing Director, Mr. Lalith Kotelawala, said that Seylan Banks Millennium Branch and the banks headquarters established in the East Tower continued to give the company the major portion of its revenue.
"Despite unfavourable economic conditions and stiff competition, we have been able to maintain healthy levels of occupancy of our luxury apartments housed in the West Tower, he said.
He said that their Raja Bojun Restaurant specialising in Sri Lankan foods has become very popular for Lankan cuisine.
Kotelawala attributed the loss due to increased financial cost and increased power cost coupled with an unfavourable business climate.
Interest charges had grown to Rs. 30.6 million from Rs. 10.5 million the previous year while the companys operating expenses too had grown to Rs. 82.9 million from Rs. 48 million the previous year. This was partly compensated by total revenue rising to Rs. 104.3 million from the previous years Rs. 63.6 million.
Ceylinco Seylan of which the Seylan Bank owns 48.4%, has an issued share capital of Rs. 1.3 billion.
In addition to the Seylan Bank, Ceylinco Insurance Company (2.6%), Ceylinco Securities & Financial Services (1.5%) and the Seylan Bank (1.4%) are the substantial shareholders giving the Ceylinco Seylan group control of the company.
The company has valued its investment property including land and building pertaining to the West Tower at Rs. 2.3 billion on the basis of a revaluation report of July 1999.
The directors of the company are: Messrs. Lalith Kotelawala (Chairman/MD) S. R. Wijesinghe (Deputy Chairman/CEO), Mrs. S. P. C. Kotelawala, A. D. Jegasothy, T. N. M. Peiris, W. G. B. M. Ranaweera, S. J. Ratnadas, R. Renganathan, Mrs. R. L. Nanayakkara and M. A. D. A. I. Madurapperuma.
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