SLC trumpets financials

Sri Lanka Cricket (SLC) President Thilanga Sumathipala presented the Sri Lanka Cricket financial statements 2016 to Sport Minister Dayasiri Jayasekara. Also present (from left) SLC Chief Executive Officer Ashley De Silva, SLC Treasurer Shammi Silva, SLC Financial Advisory Committee Chairman Nuski Mohamed and SLC Secretary Mohan de Silva - Pix by Ruwan Walpola

By Madushka Balasuriya

Sri Lanka Cricket yesterday unveiled their (unaudited) financial statements for the year 2016, showing a net surplus of income over expenditure of Rs. 228,605,551. 

The figure was described by SLC as an “unprecedented success” adding that it “demonstrated a steady upward trend characterised by greater accountability, transparency and financial discipline. However, with SLC failing to provide the audited financial statements for 2015, it was not possible to accurately gauge year-on-year improvement.

“We had a very successful first year in office. 2016 saw a combination of unprecedented milestone and well met challenges. When we took over, we were up against a budgeted cash deficit of Rs. 320 million for 2016 as envisaged by the Interim Committee. We saw this as a challenge and spearheaded initiatives to increase our revenue whilst curtailing our expenditure,” Sri Lanka Cricket President Thilanga Sumathipala said while speaking at a ceremony to hand over the financial statements to Sports Minister Dayasiri Jayasekera. The documents had earlier been dispatched to the Auditor General.

Added Jayasekera: “We were on a bad wicket in cricket when I took over the Ministry of Sports. But in the last year we have been recognised for our financial discipline. We are now out of danger and improving both on and off the field.”

In the documents which were provided to the media yesterday, the unaudited 2016 statement was contrasted with the 2016 Budget (IC Budget) which was approved by the Interim Committee on 22 December 2015. The IC Budget showed a net deficit of Rs. 829,134,987.

Long-time SLC Head of Finance Chandramali Korale, presenting the figures to the media, noted a Rs. 1,057,740,538 variance in the IC Budget and provisional financial statement for 2016, and offered the following as reasons for the upturn: stringent cost controls and reduction in overall expenditures; strong interaction with the ICC; restructuring of domestic cricket which resulted in cost savings; effective base management; effective HR policy.

The last financial statements made available to the public were the unaudited figures for the nine-month period ended 30/09/2015, showing a net surplus of Rs. 1,495,598,948, which was when an Interim Committee headed by Sidath Wettimuny was in charge. SLC President Thilanga Sumathipala was queried as to why the audited 2015 financial statements were not provided to the media so as to be able to contrast them with the provisional 2016 financial statements.

“I want to be very clear here, we don’t want to go and dig the past. This is not the interim committee, this is last year’s annual budget. It could have been six months interim, five months interim or two years. We’re not bothered by who ran. We’re just going by the facts of comparison with last year’s forecasted budget,” he responded.

On the topic of the IC Budget 2016, it was revealed that it needed to be presented to the Sports Minister and the Auditor General by a deadline, which was at the time 28 December 2015. As the new Board was elected on 3 January 2016, they were unable to present their own budget. This resulted in a scenario where the budget for 2016 was put together by a committee with a different vision for the sport in the country. Asked as to why the 2015 audited accounts were not presented alongside it to provide more context, SLC Financial Advisory Committee Chairman Nuski Mohamed answered: “On a comparative basis the only legal budget available was the IC budget. The 2015 figures? They have no relevance.”

To that end, Mohamed clarified that the year-on-year comparison would be reflected in the final audited accounts, which will be presented at this year’s AGM.