Remarkable turnaround for Engineering Corporation

by Ramani Kangaraarachchi

State Engineering Corporation of Sri Lanka (SEC) has made a remarkable progress this year and is back on its feet by showing a turnover of Rs. 1,250 million compared to only Rs. 619 million in 2003.

Chairman SEC Gratien Peiris addressing officials and partner contractors at a briefing session spoke on the progress and the future of the SEC at the CHPB Building in Battaramulla last week.

Briefing on the immediate past, he said that the SEC was a profitable Government institute till 2000 but a host of reasons such as working capital deficit, militant unionism, low productivity, outdated equipment and government control changed its destiny since then.

The accumulated losses at the end of year 2004 stood at Rs. 260 million overdue trade creditors at Rs. 75 million, overdue debtors at Rs. 234 million and work in hand over Rs. 900 million. Peiris said that from its inception in 1962 till 1980s the SEC was perceived by the industry as a respected leader and by 2004 it became an ailing giant.

However now it is picking up its original standards and he was hopeful of Rs. 2,000 million of turnover beyond the breakeven point of Rs. 1,800 million by the end of 2006. Upto August 2005 it has won over Rs. 2,500 million worth jobs with a cash inflow of Rs. 168 million.

Focusing on the future, Peiris said that Sri Lanka is behind 20-30 years at present in housing, building, roads and infrastructure and therefore acquiring construction industry technology will be the priority.

Turn-key Housing development and government projects, extraction and supply of sea sand, real estate development, overseas contracts, training and development of human resources, counselling and facilitation on construction, infrastructure development projects are among its other activities.

He pointed out that the poor image, negative working capital unproductive labour, frequent breakdown of machinery as some of the main challenges in achieving these goals.

Peiris introduced the Colomtota Development Project, SEC Institute of Technology, Welding School, Pre-cast and cement block franchises, Timber Treatment and Galvanising Plant as some new Public Private Partnership activities.

The SEC has total assets worth of over Rs. 7.5 billion including the goodwill and huge volume of unutilised resources.

If the Government and the private sector work together with a pioneering spirit and with the attitude of can do and national service all these targets could be achieved and requested the assistance of relevant parties through supplying good quality and on time, providing credit facilities, giving a feed back, not encouraging corruption and treating the SEC as a friend and a partner, Peiris said.