With State Engineering Corporation (SEC) being a key player in Sri Lanka’s construction space for decades, it took the leap to build on its capacities and looked at avenues to raise capital.
In 201d SEC has experienced year on year (YoY) growth. On the top line it has gained significant percentage and similarly achieved a considerable growth on the bottom line as well.
The revenue of SEC has increased by 7 percent to Rs. 3,176 million in 2018 from Rs. 2,960 million in 2017 and expenditure has also increased by 3 percent.
It has recorded a loss of Rs. 1,024 million in 2018 which is an increase of 9 percent compared to 2017.
SEC’s receivables of Rs. 2,182 million in 2017 have decreased by 75 percent to Rs. 547 million in 2018.
Loss-making situation and long delays in receiving payments from government institutions due to various reasons has lead the institution to a liquidity crunch.
Cabinet of Ministers has granted the approval to provide a Treasury Guarantee amounting to Rs. 300 million, valid up to 08.08.2028 to obtain a bank loan to finance current and future projects for the use of National Equipment and Machinery Organization (NEMO) which is a separate unit of SEC.
The Rs. 1,280.26 million worth of Treasury Guarantee is valid up to 30.06.2033 and SEC has been issued an order to finance current and future projects.
SEC has completed government projects such as Housing Scheme in Angoda worth of Rs. 4,393 million during 2018 and has undertaken the government projects worth of Rs. 20,576 million during the year 2018.
(LI)