ISSN: 1391 - 0531
Sunday September 2, 2007
Vol. 42 - No 14
Financial Times  

Kandy business leader expresses concern over law and order

Vagdevi Fernando

The chairperson of a top Kandy-based finance company has expressed concern over the deteriorating law and order situation in the country and the ‘continued indifference to media reporting on corruption’ which is a major problem ‘for all law abiding citizens.’

Commercial Credit Ltd, which has been heavily involved in CSR projects as well as helped the daughter of a soldier who died in action, last week reported a post tax net profit of Rs 39 million for the 2006-07 year while expanding its fixed deposit base to Rs 569 million, up 28 % from the previous year.

But Vagdevi Fernando, chairperson of the company, said the year saw huge political and economic instability across the world including Sri Lanka. “The US involvement in the Iraqi war has seen the world change drastically and become more and more polarised. The effect of this has had a heavy impact on aid allocations from donor agencies to developing countries like Sri Lanka,” she said.

Fernando said this was clearly reflected in the tsunami donor funds which though pledged were lacking in realisation. “In Sri Lanka our priorities have kept constantly changing.

The tsunami reconstruction was carried out without much emphasis on these lines.

There are two major battles being conducted within the country –the military battle in the North, and the other is the economic battle,” she said, adding that both were having a major impact on the country.

However she said despite these shortcomings the company completed a successful year having obtained international recognition in the Silver Jubilee year for excellence in service receiving the ISO9001-2000 award.

A company statement said that in order to conform to the regulations of the Central Bank of Sri Lanka in increasing the core capital of the company, a rights issue in May 2006 brought in Rs 7.7 million.

Profit from the Real Estate Division brought in a sum of Rs. 10 million. Net profit for the year under review after tax was Rs 39 million, the highest ever recorded profit for the company.

It said the directors have transferred a sum of Rs 27 million to the Statutory Reserve Fund, and a further sum of Rs 8 million to the General Reserve Fund. The improved profitability enabled the company to declare a 15% Dividend to all shareholders for the year under review and to the staff a two months’ salary bonus.

From the very inception Commercial Credit Ltd has recognized the importance of serving all segments of the population and branched out way back in 1993 to Hingurakgoda and in 1995 to Anuradhapura in order to serve the farming community.

The company said it was establishing its third branch at Ratnapura in the near future.

“A revolution in the field of technology has also taken place at Commercial Credit where customer convenience deliveries has undergone immense changes. SMS banking coupled with host of customer contract related conveniences have been launched with more facilities expected to be rolled out to the customer through telecommunication service providers,” the statement said.
The company said Ridmi Wijetunge was the recipient of the Silver Jubilee Scholarship which has earned for her the sponsorship of the company for her education until she completes her first degree or equivalent.

She is the daughter of the company’s Deposit Manager, Pushpa Wijetunghe who has served the company for 10 years, and her father Major Samindra Wijetunghe who was killed in action.


Top to the page

Copyright 2007 Wijeya Newspapers Ltd.Colombo. Sri Lanka.