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MIRA INFORM REPORT
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Report No. : |
492099 |
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Report Date : |
19.02.2018 |
IDENTIFICATION DETAILS
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Name : |
SRI LANKA RAILWAYS |
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Registered Office : |
P.O. Box 355, Railway Head Quarters, Maradana, Colombo 10 |
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Country : |
Sri Lanka |
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Financials (as on) : |
2016 |
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Date of Incorporation : |
1864 |
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Legal Form : |
State Owned
Corporation (In Operation) |
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Line of Business : |
Supplier of Rail
Transport for Passenger, Goods and Mail |
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No. of Employees : |
14,000
Approximately |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Sri Lanka |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
SRI LANKA - ECONOMIC OVERVIEW
Sri Lanka is attempting to sustain economic growth while maintaining
macroeconomic stability under its IMF program that it began in 2016. The government's
high debt payments and bloated civil service cadre, which have contributed to
historically high budget deficits and low tax revenues, remain a concern.
Government debt is about 75% of GDP and remains among the highest of the
emerging markets. Sri Lanka will need to balance its elevated debt repayment
schedule with its requirement to maintain adequate foreign exchange reserve
levels in the coming years.
In May 2016, Sri Lanka regained its preferential trade preferences under
the European Union’s Generalized System of Preferences Plus (GSP+), enabling
many of its firms to export products, including it top export garments, tax
free to the EU. Also in 2016, the government reformed elements of the country’s
tax regime to increase some tax rates and broaden the tax net in response to
recommendations made under its IMF program.
Tourism has experienced strong growth during recent years following the
resolution of the government's 26-year conflict with the Liberation Tigers of
Tamil Eelam. The government has been pursuing large-scale reconstruction and
development projects in its efforts to spur growth.
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Source
: CIA |
Company Profile
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Name of Subject of Inquiry |
SRI LANKA RAILWAYS |
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Legal Form & Status |
State Owned
Corporation (In Operation) |
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General Manager |
Mr S M
Abeywickrama |
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Primary Line of Business |
Supplier of Rail
Transport for Passenger, Goods and Mail |
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Principal Place of Business |
P.O. Box 355, Railway Head
Quarters, Maradana, Colombo 10. Telephones : +94
11 2 421281 Fax Nos : +94 11 2
446490 Email : gmr@railway.gov.lk Railway Head
Office Exchange Number - +94 11 2 421281 Fort Railway
Station Inquiries - +94 11 2 434215 Deputy Operating
Superintendent - +94 11 2 687099 Assistant
Transportation Superintendent (Operation) - +94 11 2 692286 Web Site: http://www.railway.gov.lk/web/ |
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Employees |
14,000
Approximately |
Company
details
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Registration No |
NA |
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Date of
Registration |
1864 |
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Re-registration No |
NA |
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Date of
Re-registration |
NA |
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Registered Office |
P.O. Box 355, Railway Head Quarters, Maradana, Colombo 10, Sri lanka |
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Superintendent of Railway Stores Department |
P.O. Box 1347, Olcott Mawatha, Colombo, Sri Lanka Tel. No.: 94-11-2438078 / 2436818 Fax No.: 94-11-2432044 Email: srs.slr@gmail.com |
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Director Board /
Ownership As At 14.02.2018 |
Mr S M Abeywickrama |
General Manager |
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Hon Nimal Siripala De Silva |
Minister |
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Ashok Abeysinghe |
Deputy Minister |
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G S Withanage |
Secretary |
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R A K Renuka |
Senior Assistant Secretary |
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Stated Share
Capital |
NA |
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No. of Shares |
NA |
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Preferential Shares |
NA |
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Nominal Value of
Share |
NA |
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Auditors |
Auditor Generals Department, # 306/72, Polduwa Road, Battaramulla, Sri Lanka |
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Company Secretaries |
NA |
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Main Bank/s |
Bank of Ceylon, National Savings Bank, Peoples Bank |
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Shareholders
NA
FINANCIAL
DETAILS
Most recent available Financial Information
Please refer attached
document containing financials for 2016
CURRENT
INVESTIGATION
COMPANY LOGO
HISTORY
The
subject corporation was initially formed in 1864. Sri Lanka Railways ( SLR ) is
a government department functioning under the Ministry of Transport. It is a
major transport service provider and is the only rail transport organization in
the country. SLR transports both passenger and freight. At its inception,
railway was carrying more freight than passenger. But today, it is passenger
oriented. SLR’s market share for passenger transport is about 6.0 % and about
0.7 % for goods transport.
Since
the first line was built between Colombo and Ambepussa in 1864, railway travel
and transportation have played a weighty role in the history and development of
Sri Lanka. From connecting rural villages to lessening travel time from days to
hours, trains deserve much credit for allowing the country to properly develop,
innovate, and expand. But one and a half centuries later, Sri Lanka Railways
faces a bevy of problems which threaten its sustainability, including recurrent
annual losses and underutilization. In the forty seven years since Rampala left
Sri Lanka Railways, the agency and the locomotives it operates have
unfortunately been on a steady decline. An array of contributing factors—not
the least of which was a three-decades-long civil war—caused the railway to be
neglected. Unable to keep up with technological innovations that improved railway
travel worldwide, issues of travel time, reliability, and comfort plagued Sri
Lanka Railways.
In
2016, SLR’s overall performance was evaluated, and the results were dim. While
the railway received a total revenue of Rs. 6.6 billion, it incurred a recurrent
loss of Rs. 7.88 billion—even as the government injected Rs. 15.7 billion in
capital during that same time. As well, SLR’s market share of the transport
industry doesn’t bode well for its future. “Today SLR is enjoying around 5
percent of passenger transportation market share, lagging a little bit behind
three wheels,” said Jayasundara. During the war, SLR was understandably unable
to keep up with locomotive technological innovations abroad and therefore lost
much of its market share of passenger transport. But the current passenger
transportation market share of 5 percent marks a decline even from the 7
percent SLR had in 2011, meaning that the war isn’t entirely to blame.
OPERATIONAL
DETAILS
General
The subject corporation is
a government owned entity into transport and is under the Ministry of Transport
of Sri Lanka.
Products & Services
·
Supplier
of Rail Transport for Passengers
·
Supplier
of Rail Transport for Goods
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Supplier
of Rail Transport for Mail and Other items
Employees
14,000
Approximately
Export Countries
NA
Import Countries
China,
India, Taiwan, European Countries
Associate / Subsidiary Companies
Ministry
of Transport
Factory / Warehouse and Sales Outlets
Owned
INFORMATION
DENIED
Management non-co-operative
[94-11-2687099/2692286/24211281/2434215]
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.90 |
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1 |
INR 90.31 |
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Euro |
1 |
INR 80.17 |
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LKR |
1 |
INR 0.42 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Information
Gathered by : |
KMN |
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Analysis Done by
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PRI |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.