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Wednesday, 25 July 2012 00:26 - - {{hitsCtrl.values.hits}}
Sinhaputhra Finance, one of the oldest Central Bank-registered finance companies to direct operations and headquartered outside Colombo, posted a profit of Rs. 73 million before tax.
Director Finance Nandana Abeykoon disclosed that the company then made provision for a large deferred tax liability to post a healthy profit of Rs. 54 million. The Board of Directors recommended a dividend of Rs. 2 per share. The net book value per share increased to Rs. 119 at close of FYE 31 March 2012.
Located in Kandy where the company commenced operations in 1979, it has now spread its wings island to strategic locations, but grows cautiously backed by its 33-year experience in the field of finance and leasing.
Managing Director Ravana Wijeyeratne said the company’s co-ethics differed largely from the industry norm of rapid credit growth.
He admits that in size most newcomers have surpassed Sinhaputhra Finance PLC, which was one time the fifth largest registered finance company in the country.
“At that time when we were one of the largest, there were 48 players in the industry. However, with such haphazard expansions, the total dwindled to about 23 companies, with disastrous impacts on depositors and the economy. Presently, it has grown back beyond the 40s. it is essential for the industry that nobody fails.”
When asked why Sinhaputhra seldom advertises for public deposits, Director Operations Saliya De Alwis said that Sinhaputhra’s brand is strong enough that in the absence of a single fixed deposit advertisement in print media, it continued to meet its target budget in conservative FD growth.
Sinhaputhra believes in caution and also works on a conservative assumption that however good your credit practices may be, at least one out of 10 Sri Lankan borrowers would either try to abscond payment or find difficulty in making regular payments; the former due to the blessing of the delays in the court system and the latter due to genuine economic misfortunes of the borrowers.
This delaying structure that is now inherent in our legal system is a silent yet powerful factor, which if not addressed by the Justice Ministry will retard economic growth
Hence aggressive recovery from the initial three months since lending over hasty lending for profit accumulation has been Sinhaputhra’s co-philosophy over the last three decades to have survived every financial storm.
The Board of Directors consists of Nihal Ratnayake (Chairman), K.R.B. Wijeyeratne (Managing Director), Saliya De Alwis, Nandana Abeykoon, Lal Ekanayake and Dr. Amal Karunaratna. Senior Consultants are K.H.K. Wijayadasa, Chintha Balalle, Mohan Weerakoon and Sarath Imbuldeniya.
