The Investor Sentiment - Equity and investments forum for Sri Lankans



Join the forum, it's quick and easy

The Investor Sentiment - Equity and investments forum for Sri Lankans

The Investor Sentiment - Equity and investments forum for Sri Lankans

Would you like to react to this message? Create an account in a few clicks or log in to continue.
The Investor Sentiment - Equity and investments forum for Sri Lankans

The Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSEThe Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSE

Please send an email to contact.lankaninvestor@gmail.com if you face any technical difficulties when posting

Latest topics

» CIFC Dumps to Expand Your Possibilities to Pass Your Exam
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyFri Jul 19, 2024 10:30 am by faithhharris

» CCS.N0000 ( Ceylon Cold Stores)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyWed Mar 20, 2024 11:31 am by Hawk Eye

» Sri Lanka plans to allow tourists from August, no mandatory quarantine
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyWed Sep 13, 2023 12:16 pm by lauryfriese

» When Will It Be Safe To Invest In The Stock Market Again?
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyWed Apr 19, 2023 6:41 am by කිත්සිරි ද සිල්වා

» Dividend Announcements
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyWed Apr 12, 2023 5:41 pm by කිත්සිරි ද සිල්වා

» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyThu Apr 06, 2023 3:18 pm by කිත්සිරි ද සිල්වා

» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්‍රතික්ෂේප කළ ගණිතඥයා
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySun Apr 02, 2023 7:28 am by කිත්සිරි ද සිල්වා

» SEYB.N0000 (Seylan Bank PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyThu Mar 30, 2023 9:25 am by yellow knife

» Here's what blind prophet Baba Vanga predicted for 2016 and beyond: It's not good
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyThu Mar 30, 2023 9:25 am by HaeroMaero

» The Korean Way !
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyWed Mar 29, 2023 7:09 am by කිත්සිරි ද සිල්වා

» In the Meantime Within Our Shores!
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyMon Mar 27, 2023 5:51 pm by කිත්සිරි ද සිල්වා

» What is Known as Dementia?
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyFri Mar 24, 2023 10:09 am by කිත්සිරි ද සිල්වා

» SRI LANKA TELECOM PLC (SLTL.N0000)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyMon Mar 20, 2023 5:18 pm by කිත්සිරි ද සිල්වා

» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyMon Mar 20, 2023 5:10 pm by කිත්සිරි ද සිල්වා

» Equinox ( වසන්ත විෂුවය ) !
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyMon Mar 20, 2023 4:28 pm by කිත්සිරි ද සිල්වා

» COMB.N0000 (Commercial Bank of Ceylon PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySun Mar 19, 2023 4:11 pm by කිත්සිරි ද සිල්වා

» REXP.N0000 (Richard Pieris Exports PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySun Mar 19, 2023 4:02 pm by කිත්සිරි ද සිල්වා

» RICH.N0000 (Richard Pieris and Company PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySun Mar 19, 2023 3:53 pm by කිත්සිරි ද සිල්වා

» Do You Have Computer Vision Syndrome?
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySat Mar 18, 2023 7:36 am by කිත්සිරි ද සිල්වා

» LAXAPANA BATTERIES PLC (LITE.N0000)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyThu Mar 16, 2023 11:23 am by කිත්සිරි ද සිල්වා

» What a Bank Run ?
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyWed Mar 15, 2023 5:33 pm by කිත්සිරි ද සිල්වා

» 104 Technical trading experiments by HUNTER
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyWed Mar 15, 2023 4:27 pm by katesmith1304

» GLAS.N0000 (Piramal Glass Ceylon PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyWed Mar 15, 2023 7:45 am by කිත්සිරි ද සිල්වා

» Cboe Volatility Index
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyTue Mar 14, 2023 5:32 pm by කිත්සිරි ද සිල්වා

» AHPL.N0000
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySun Mar 12, 2023 4:46 pm by කිත්සිරි ද සිල්වා

» TJL.N0000 (Tee Jey Lanka PLC.)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySun Mar 12, 2023 4:43 pm by කිත්සිරි ද සිල්වා

» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySun Mar 12, 2023 4:41 pm by කිත්සිරි ද සිල්වා

» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyFri Mar 10, 2023 4:43 pm by yellow knife

» Bitcoin and Cryptocurrency
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyFri Mar 10, 2023 1:47 pm by කිත්සිරි ද සිල්වා

» CSD.N0000 (Seylan Developments PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyFri Mar 10, 2023 10:38 am by yellow knife

» PLC.N0000 (People's Leasing and Finance PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyThu Mar 09, 2023 8:02 am by කිත්සිරි ද සිල්වා

» Bakery Products ?
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyWed Mar 08, 2023 5:30 pm by කිත්සිරි ද සිල්වා

» NTB.N0000 (Nations Trust Bank PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySun Mar 05, 2023 7:24 am by කිත්සිරි ද සිල්වා

» Going South
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySat Mar 04, 2023 10:47 am by කිත්සිරි ද සිල්වා

» When Seagulls Follow the Trawler
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyThu Mar 02, 2023 10:22 am by කිත්සිරි ද සිල්වා

» Re-activating
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySat Feb 25, 2023 5:12 pm by කිත්සිරි ද සිල්වා

» අපි තමයි හොඳටම කරේ !
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyTue Feb 14, 2023 3:54 pm by ruwan326

» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyTue Jan 03, 2023 6:43 pm by ruwan326

» SAMP.N0000 (Sampath Bank PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyWed Nov 30, 2022 8:24 am by කිත්සිරි ද සිල්වා

» APLA.N0000 (ACL Plastics PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyFri Nov 18, 2022 7:49 am by කිත්සිරි ද සිල්වා

» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyWed Nov 16, 2022 9:28 pm by කිත්සිරි ද සිල්වා

» Banks, Finance & Insurance Sector Chart
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyTue Nov 15, 2022 5:26 pm by කිත්සිරි ද සිල්වා

» VPEL.N0000 (Vallibel Power Erathna PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySun Nov 13, 2022 12:15 pm by කිත්සිරි ද සිල්වා

» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyMon Nov 07, 2022 6:36 pm by කිත්සිරි ද සිල්වා

» WATA - Watawala
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySat Nov 05, 2022 8:44 am by කිත්සිරි ද සිල්වා

» KFP.N0000(Keels Food Products PLC)
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptySat Nov 05, 2022 8:42 am by කිත්සිරි ද සිල්වා

» Capital Trust Broker in difficulty?
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyFri Oct 21, 2022 5:25 pm by කිත්සිරි ද සිල්වා

» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyThu Oct 20, 2022 10:13 am by කිත්සිරි ද සිල්වා

» What Industry Would You Choose to Focus?
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyTue Oct 11, 2022 6:39 pm by කිත්සිරි ද සිල්වා

» Should I Stick Around, or Should I Follow Others' Lead?
Underperforming SOEs To Add Over Rs 1.5T To CSE EmptyTue Oct 11, 2022 9:07 am by කිත්සිරි ද සිල්වා

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker


    Underperforming SOEs To Add Over Rs 1.5T To CSE

    sashimaal
    sashimaal
    Top contributor
    Top contributor


    Posts : 5785
    Join date : 2014-02-28

    Underperforming SOEs To Add Over Rs 1.5T To CSE Empty Underperforming SOEs To Add Over Rs 1.5T To CSE

    Post by sashimaal Sun Dec 04, 2016 10:43 am

    Listing of underperforming State Owned Enterprises (SOEs) on the country’s bourse – Colombo Stock Exchange (CSE) is slated to add a minimum of Rs 1.5 trillion to the burgeoning market capitalization of Rs 2.69 trillion.

    Presenting Budget 2017 Finance Minister Ravi Karunanayake implied that his government has been proactive in improving the performance of both strategic and non-strategic SOEs by infusing professionalism and operational independence.

    “… in fact instead of becoming a drain Rs.50 million on the government coffers, they have contributed Rs. 65 billion as levies and dividends so far in 2016, which is an increase of almost 50 percent over 2014…. As stated by the Honorable Prime Minister, we will facilitate SOEs to become viable business entities. To that end, we will ensure that SOEs will be able to have cost reflective pricing structures and operational autonomy. In this background government will also enter into performance contracts with selected SOEs with regard to key performance indicators.”

    According to the Minister, government was inclined towards listing non-strategic SOEs not with the motive of privatizing but broadbasing the ownership of public enterprises.

    “We will also list non-strategic enterprises such as Hyatt, Grand Oriental Hotel, Waters Edge, West Coast, Manthai Salt, Hambanthota Salt and Hilton during 2017. Broad basing the ownership, it is expected that such listing will allow the government to raise at least USD 1,000 million, to settle our existing uneconomical, questionable and high cost debt that we inherited from the previous regime. We will also inform the Parliament of any other planned listing that may be undertaken during 2017,”

    Although the exact model of listing is to be finalized in 2017, the listing is a step in the right direction expected to at least both increase state revenue and market capitalization by a minimum of Rs. 1.5 trillion. Colombo Stock Exchange (CSE) has 295 companies representing 20 business sectors with a market capitalization of Rs. 2,691.66 billion as at 1 December 2016.

    Beyond carrying out regulatory functions, the state itself is a major participant in the market through its large stateowned enterprise (SOE) sector and public service, which in turn has impacted competitiveness in a number of sectors and labor market dynamics. SOEs have a significant market share in many sectors, including areas where there is not a strong apparent rationale for public intervention. This is most striking in the finance sector, where major SOEs make up close to half of the market. At the same time, there is a weak framework for public-private partnerships and relatively few cases of PPPs; infrastructure development over the past 10 years has been driven by direct public spending. Finally, the state plays an outsized role as an employer. There is strong demand for public-sector jobs as public-sector workers enjoy the advantages of formal employment and other benefits such as a pension. Moreover, the evidence suggests that there is a salary premium for public-sector workers and that this premium has grown between 2006 and 2012. Workers, particularly educated women, are queuing for public-sector employment.

    There are 55 major SOEs enterprises covering a wide range of sectors. The 10 most important SOEs, which account for about 90 percent of the asset base of all major SOEs, are financial institutions (Bank of Ceylon, People’s Bank, National Savings Bank, and Sri Lanka Insurance Corporation), major public utilities (Ceylon Petroleum Corporation, Ceylon Electricity Board, and the National Water Supply and Drainage Board) and logistics/transport service providers (Sri Lanka Ports Authority, Airport and Aviation Services, and Sri Lankan Airlines). There are other smaller SOEs in banking, public utilities and logistics as well. Finally, the government has major SOEs in other sectors, including construction, livestock, lotteries, media, marketing and distribution, plantations, pharmaceuticals, industrial estates, mineral extraction, general trading and timber sales. Major SOEs accounted for nearly 17 percent of GDP in 2013.

    SOEs play a significant role in Sri Lanka’s fiscal balance. Transfers from the budget to public enterprises have averaged about 3 percent of total expenditures (around 50 billion LKR), mainly driven by direct transfers and on lending to the Ceylon Electricity Board (CEB). The total debt of the 55 major SOEs accounted for approximately 4.8 percent of total public debt in 2013. This number reflects reductions in debt thanks to conversions of debt to government equity and capital infusions to strategic State-Owned Business Enterprises (SOBEs), which have regularly occurred and were particularly large in 2013.

    Moreover, SOEs account for a significant share of lending. The two largest banks in the country continue to lend a significant share of their funds to SOEs, including several that are loss-making or non-revenue-generating enterprises.

    In 2013, Bank of Ceylon (the largest bank by asset base and lending portfolio, holding 20 percent of market share) lent 38 percent of its total portfolio to SOEs (primarily to Ceylon Petroleum Corporation, Sri Lanka Ports Authority and Road Development Authority); and People’s Bank (the second largest bank with 15.6 percent market share) lent 28 percent of its total portfolio to SOEs (with high exposure to Ceylon Electricity Board, Ceylon Petroleum Corporation, and Ceylon Fertilizer Company Ltd). Since these banks account for a large share of the banking industry, this high SOE exposure could reduce funding available to the private sector and expose the banking sector to systemic risks given the precarious financial positions of the concerned SOEs.


    http://www.thesundayleader.lk/2016/12/0 ... 5t-to-cse/

      Current date/time is Sun Nov 10, 2024 4:33 pm