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by Ravi Ladduwahetty

The Ceylinco Securities and Financial Services Group (CSFSL) will shortly go in for three mega real estate investment projects worth Rs. 4 billion where it will have two housing projects at Piliyandala and Ekala while also establishing a Rs. 2 billion theme park. Both projects have been approved by the Board of Investment (BoI).

The Ceylinco Securities and Financial Services Group (CSFSL) comprises Ceylinco Securities and Financial Services Ltd., Ceylinco Stock Brokers Ltd., CSF Money Broking Co. Ltd., Ceylinco Developers Ltd. and Ceylinco Land Exchange Co. Ltd.

The Piliyandala project will aim to build one thousand houses spanning 80 acres while the Ekala Project will aim to build 250 houses in 30 acres. All three projects have received approval from the Cabinet of Ministers, Ceylinco Securities and Financial Services Ltd's Deputy Group Chairman/Chief Securities Director Bandula Ranaweera told the Daily News yesterday.

The Piliyandala Project will cost the company Rs. 1 billion, the Ekala project Rs. 500 million and the state-of-the-art theme park and cultural centres aimed at promoting leisure activities among tourists, Rs. 2 billion, Ranaweera said.

CSFSL has received BoI approval enabling the company to get a tax holiday in the first three years. There will be a partial tax holiday from the fourth year of 10 per cent while it will be 20 per cent holiday for the fifth year. The company will be taxable at the normal rates from the sixth year.

He said that one-thousand of the one-thousand-six-hundred houses at the Millennium City project at Athurugiriya have already been sold. He expressed confidence that the remainder will be sold in the next 18 months.

CSFSL has also applied to the Central Bank of Sri Lanka for an Investment Banking licence and hopes to be a major player in the banking market.

"We hope to have all savings products while also engaging in fee based activities such as underwriting of share issues, mergers and acquisitions and restructuring of companies. We will also have fund based activities such as providing syndicated loans, Ranaweera said.

The financial highlights of the Group for the year ended March 31, 2002 indicated that revenue has risen to Rs. 2,248 million from Rs. 1,700 million, up 32.2 per cent between the two years. The pretax profits of the Group has risen to Rs. 42.5 million, up 25.98 per cent from the Rs. 34.3 million a year ago. Post tax profits have increased to Rs. 42.3 million, 23.37 per cent a year ago. The Earnings Per Share has also increased to Rs. 1.16 from Rs. 1.08 between the two years.

CSFSL Chairman/Managing Director Lalith Kotelawala, in his annual report to shareholders, has said that the adverse business environment in the country had impacted the investment banking scenario.

The company has performed reasonably well with an increase in turnover, profitability and asset value despite the adverse economic environment where increased money market rates in the first half of the year affected cost of borrowings. This was however, mitigated to some extent due to the fall in the interest rates, Kotelawala has told shareholders.

Significant contributions have been made to the Group through the parent company and the subsidiaries with fund based activities such as leasing and real estate making contributions. The market values of the quoted investments have also shown profits, he said.

Ceylinco Securities and Financial Services Ltd's Deputy Group Chairman Bandula Ranaweera in his Annual Report review, has said that the branches of the company were able to tap the vast rural clientele and further enhance fund based activities.

The interest income had accounted for 49 per cent of the Group's consolidated income. The interest income has increased to Rs. 431 million from the Rs. 391.9 million, a 10.2 per cent increase between the two years.

This has been attributed to the high interest regime which prevailed during the year.

The provisioning of doubtful recoveries has increased by 48 per cent from Rs. 14.8 million to Rs. 21.9 million during the year. Due to the share prices at the year's end, the provisioning for diminution in the value of share account recorded a positive figure of Rs. 6.8 million as opposed to last year's negative figure of Rs. 3.9 million.

The consolidated assets of the Group also increased by 16.7 per cent.

The main asset accumulators of the Group were: CSFSL, AFL and CDL. which will be Rs. 2.2 billion, Rs. 1.2 billion and Rs. 945 million, Ranaweera has told shareholders.

The Board of Directors of Ceylinco Securities and Financial Services Ltd comprises: J. L. B. Kotelawela (Chairman/Managing Director) W. B. G. M. Ranaweera (Deputy Chairman/Chief Executive Director), S. P. C. Kotelawala, W. B. B. C. J. Fernando, W. H. M. N. Bandara, J. E. P. A. De Silva, C. K. Gamage, S. N. Jayasinghe, S. K. M. Perera, M. Sabaratnam, Dr. T. Sentilvel and S. R. Wijesinghe.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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