MIRA INFORM REPORT

 

 

Report Date :

28.06.2013

 

 

 

Tel. No.:

8458156157158

 

IDENTIFICATION DETAILS

 

Name :

SRI LANKA TRANSPORT BOARD

 

 

Registered Office :

# 200, Kirula Road, Colombo 05,

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

Reconstituted by Sri Lanka Transport Board Act No 25 of 2005 and is the successor to the Ceylon Transport Board (1958-1978), Sri Lanka Central Transport Board and Regional Boards (1978-2005), Peoplized Transport Service (1990-1997) and the Regional Transport Companies (1997-2005)

 

 

Legal Form :

Fully Government owned business undertaking/board

 

 

Line of Business :

Public Road Transport Services

 

 

No. of Employees :

Approximately 34,000

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Sri Lanka

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SRI LANKA - ECONOMIC OVERVIEW

 

Sri Lanka continues to experience strong economic growth following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam (LTTE). The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government's high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government's fiscal deficit. However, low tax revenues are a major concern. The 2008-09 global financial crisis and recession exposed Sri Lanka's economic vulnerabilities and nearly caused a balance of payments crisis. Growth slowed to 3.5% in 2009. Economic activity rebounded with the end of the war and an IMF agreement, resulting in two straight years of 8% growth in 2010-11. Growth moderated to about 6% in 2012. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern. Strong remittances from Sri Lankan workers abroad have helped to offset the trade deficit.

Source : CIA

GENERAL

- Basic information at a glance

     

a.

Name of Subject of Inquiry

:

SRI LANKA TRANSPORT BOARD

b.

Legal Form  & Status

:

Fully Government owned business undertaking/board

c.

Chairman

:

M.D. Bandusena

d.

Primary Line of Business

:

Public Road Transport Services

e.

 

Head office

 

:

 

 

# 200, Kirula Road,

Colombo 05,

Sri Lanka.

 

Tel. No: (00 94 11) 258 1120-29

Fax. No: (00 94 11) 236 8921

Chairman: (00 94 11) 236 8111,258 6491

 

E-mail: chairmanctb@sltnet.lk

 

 

g.

No. of Employees

:

Approximately 34,000

           

 

COMPANY DETAILS 

- Registration and Shareholder Details

 

a.

Date of Registration

:

Reconstituted by Sri Lanka Transport Board Act No 25 of 2005 and is the successor to the Ceylon Transport Board (1958-1978), Sri Lanka Central Transport Board and Regional Boards (1978-2005), Peoplized Transport Service (1990-1997) and the Regional Transport Companies (1997-2005)

b.

Board Of Directors

As at

31st March 2013

:

M.D. Bandusena

Chairman

L.A. Wikramaratna

Vice Chairman

Sarath Kumara

Deputy General Manager

c

Secretary

:

Not disclosed

d.

Auditors

:

Auditor- General 

e.

Banks

:

People’s Bank

Bank of Ceylon

Commercial bank

NTB

 

 

FINANCIAL DETAILS

 

 – Most recent available Financial Information

 

 

Current investigation

 

                                                  

                                                           Company Logo

 

·         History.

 

The Subject Company, SRI LANKA TRANSPORT BOARD (S.L.T.B), is a fully state owned company, reconstituted by Sri Lanka Transport Board Act No 25 of 2005.  

 

 It was originally known as the “CEYLON TRANSPORT BOARD” popularly known as “CTB” which was established on 1st January, 1958. It was converted to SRI LANKA TRANSPORT BOARD under the SRI LANKA TRANSPORT BOARD Act No. 17 of 1969.

Subsequently, converted to Sri Lanka Central Transport Board and Regional Boards (1978-2005), Peoplized Transport Service (1990-1997) and the Regional Transport Companies (1997-2005) and finally as SRI LANKA TRANSPORT BOARD (S.L.T.B), by Act No.25 of 2005.

 

·         Location.

                  The Subject Company is located at client given address # 200, Kirula Road, Colombo 05

 

·         Operational Details.

 

General

 

                  The S.L.T.B is providing road transport bus Services Island wide. It is being managed by 105

                  Depots in 12 Regions covering the whole island.  

                  Statistics below show the operational details.

                 

   Operation details per day:

                   

 

 

3) FINANCIAL DETAILS - Most recent available Financial Information

   

      The financial details are not publishes as yet. Therefore no financials are available for this entity.

 

 However, according to the News item appeared in the Business Times, Sunday Times of 27th January, 2013 it states:

(Quote:)

“The Treasury has doled out Rs. 2.8 billion to Sri Lanka Transport Board (SLTB), a loss-making state owned bus utility as a cash injection for workers welfare, finance ministry sources said. The cabinet of ministers had approved a proposal by Transport Minister Kumar Welgama to use this money to give a salary increase and allowance to SLTB employees, ministry sources revealed.

Driven by increases in 2011 in the fuel bill of 6 per cent, and salaries and wages of 15 per cent, SLTB’s total expenditure has increased by 3 per cent to Rs. 23 billion from Rs.22.3 billion in 2010. Operational losses increased by almost 14.4 per cent to Rs. 2 billion in 2011 from Rs.830 million in 2010, according to Finance Ministry data.

In 2011 the SLTB had been given a Rs. 3.94 billion subsidy on top of a Rs.4.6 billion rupee cash handout the year earlier, according to the data.

Despite an increase in the government budgetary support to Rs 5.18 billion in 2011 from Rs.4.46 billion in 2010, the SLTB’s total revenue declined to Rs. 21, billion from Rs. 21.5 billion in 2010, a senior official of the ministry said.

 

However during 2011 the SLTB added 157 new buses and 869 fully repaired buses to its operational bus fleet which stood at 511 at the end of 2011. The board has ventured into new inter provincial routes and commenced a new bus service on the Southern Expressway way recently”. (Unquote).

 

·         Country

Sri Lanka

 

·         Employees

                  The employee strength of the subject company approximately 34,000

 

·         Trade references

The Government of Sri Lanka – Ministry of Transport

 

·         Credit Recommendations

No computerised data bases exist to make checks whether the partners or the company has any legal action or lawsuit initiated against any of them but informal (but not in-depth) checks do not indicate any such cases in the public knowledge.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.92.25

Euro

1

Rs.78.38

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

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